Uncertainty looms over N’ganj RMG sector

Mushtaq Ahmed Shawon :

Instability is rising in Narayanganj’s garment factories. Over the past year, at least 64 small, medium, and large readymade garment factories have been forced to shut down.

Industry insiders cite lack of coordination among agencies, political unrest, the impact of the Russia-Ukraine war, soaring bank interest rates, acute gas shortages, labor unrest, absence of foreign buyers, financial crises, and various syndicates as the major reasons. As a result, more than half a million workers and employees have lost their jobs.

According to Narayanganj Industrial Police-4, the district has a total of 1,834 factories-424 are RMG and 1,410 non-RMG. Since last July, 40 RMG factories have permanently closed, 20 remain temporarily closed, two have declared layoffs, and one has been shut under Section 13(1).

Factory owners say that while they are struggling to overcome numerous challenges, internal unrest and labor agitations have severely disrupted production. Failure to deliver shipments on time has led to frequent cancellations, forcing many factories to shut down.

Industry leaders also complain that the lack of coordination among regulatory bodies is crippling the sector. Every step requires separate approvals from different offices, leading to delays and increased costs, ultimately hampering production and exports.

To ensure smooth production, import-export operations, and market expansion, they demand a long-overdue one-stop service system. But successive governments have remained indifferent.

Asadul Islam, owner of Astrotx Garments, said “Even if I don’t make a profit, I never delay paying wages and allowances. Yet, because of trivial labor protests, many foreign buyers pulled back in fear. Reopening a factory is no longer an option.”

Atiqur Rahman, owner of AST Garments, added “Due to declining orders and financial constraints, we had to close our factory. Despite running it for a few months with subsidies, we couldn’t sustain operations.”

M.A. Shaheen, Narayanganj district president of the Bangladesh Garments and Sweater Workers’ Trade Union Centre, said “Most workers from closed factories are now driving autorickshaws to survive. Some have returned to their villages, while others are managing small businesses or working as day laborers.”