Bangladesh Garment Manufacturers and Exporters Association has revealed that nearly 400 ready-made garment factories across the country have suspended production due to mounting banking sector-related challenges.
According to BGMEA, with appropriate policy support, these factories could be revived, unlocking employment opportunities for an estimated 100,000 workers.
The disclosure came during a BGMEA meeting held today at the association’s headquarters in Uttara, chaired by President Mahmud Hasan Khan and attended by around 70 members.
Key proposals from the meeting
- Loan Restructuring: Members urged the government and Bangladesh Bank to extend the repayment term for default loans from the existing three years to 10 years, noting that many entrepreneurs are struggling to service short-term liabilities amid economic headwinds.
- Exit Policy Reform: Calls were made for a more tolerant exit policy, enabling struggling entrepreneurs to wind down operations with dignity.
- Inclusive Policy Support: BGMEA leaders stressed that support measures should not only benefit large exporters but also small and medium-sized factories, which are equally vulnerable to financial distress.
The meeting was also attended by BGMEA Vice President Md Shehab Udduza Chowdhury, Director Faisal Samad, Standing Committee on Exit Policy Chairman Asif Ibrahim, and Standing Committee on One Stop Sale Chairman Mozammel Haque Bhuiyan, who echoed the need for urgent intervention to safeguard jobs and restore production capacity.
BGMEA emphasized that timely banking and policy support would be crucial to ensuring the sustainability of the RMG sector, which remains Bangladesh’s largest export earner and a key driver of employment.
