Bangladesh’s textile and ready-made garment (RMG) sectors, critical to the nation’s economy with over $70 billion in investments, are grappling with a severe gas shortage that has slashed production in many mills to 30–40% capacity. Key industrial zones like Narayanganj and Gazipur are facing plummeting gas pressure, crippling operations despite recent tariff hikes promising improved supply.
Mill owners report dramatic declines in output, with some losing up to Tk 25 lakh daily. The primary textile sector holds over $25 billion in investment, while the garment sector exceeds $30 billion, jointly forming the backbone of Bangladesh’s export economy. Compounding the crisis is trade uncertainty stemming from paused—but looming—U.S. tariffs under President Trump, which have made Western buyers hesitant to place new orders. Industry leaders are calling for urgent LNG imports to stabilize gas supply, warning of widespread mill closures if conditions don’t improve.
The situation is exacerbated by a volatile exchange rate, rising import costs, and dwindling working capital, leaving many businesses financially strained after enduring previous shocks like COVID-19, the Russia-Ukraine war, and global inflation.
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