RMG sector eyes $100b export target amid energy, finance challenges

MM Rahmatullah: Bangladesh’s garment industry has the potential to raise annual exports to US$100 billion, but addressing energy shortages, high lending rates, changing global trade conditions and the challenges of the country’s post-LDC graduation period will require urgent and coordinated action, industry leaders have said.

They also stressed the importance of political stability and government support in sustaining production, investment and export growth in the country’s largest export-oriented industrial sector.

The issues were discussed at a meeting between leaders of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Jamaat-e-Islami Ameer Dr Shafiqul Rahman at the Opposition Leader’s official residence on Minto Road in Dhaka on Tuesday evening.

The meeting reviewed the current state of the readymade garment (RMG) industry, production and exports, gas and electricity shortages, fuel supply, high bank interest rates, international market conditions, the possible impact of LDC graduation and the sector’s future prospects.

According to BGMEA leaders, around 4 million workers, officers and employees are directly associated with the garment industry, while nearly 3,000 entrepreneurs are directly involved in the sector. Its performance therefore has a significant bearing on employment, export earnings and the wider economy.

At the meeting, BGMEA representatives highlighted the possibility of increasing Bangladesh’s garment exports to $100 billion from the current level.

They, however, said this ambition could not be achieved without maintaining production capacity and resolving persistent infrastructure, energy and financial constraints facing manufacturers.

BGMEA President Mahmud Hasan Khan Babu said the industry’s problems were discussed in detail with the Opposition Leader, who listened to the concerns with sincerity and offered suggestions.

He said government cooperation was essential to resolving the sector’s immediate problems and also expressed expectations that the opposition would play a responsible and constructive role in supporting the industry.

The supply of gas, electricity and other forms of energy emerged as one of the most pressing issues at the meeting.

BGMEA leaders said continued disruptions in energy supply could further affect factory production in the coming days. They called for swift and effective measures to ensure uninterrupted energy supplies to factories and maintain normal industrial operations.

For an industry dependent on timely production and shipment schedules, prolonged disruptions can create additional pressure on manufacturers, workers and exporters.

High interest rates on bank loans were also identified as a major challenge for garment entrepreneurs.

Industry leaders said expensive financing was putting additional pressure on businesses at a time when manufacturers were already dealing with rising operational challenges and uncertainty in international markets.

The meeting also discussed changes in the global trade environment and the need to prepare well in advance for the potential consequences of Bangladesh’s graduation from the Least Developed Country (LDC) category.

The participants stressed the importance of taking timely measures to strengthen the sector’s competitiveness before the post-graduation environment becomes more challenging.

Political stability was another issue raised by the BGMEA delegation.

Industry leaders said a stable political environment was important for keeping production, investment and export activities running smoothly. They emphasised that businesses need a predictable environment to make investment decisions and maintain long-term production plans.

Jamaat Secretary General and former MP Mia Golam Porwar said the meeting had been arranged as part of the opposition’s responsibility to understand the concerns of major sectors of the national economy.

He said the purpose was to learn about the contribution of the garment industry to the economy and employment, its current difficulties and its future potential.

“The garment industry is extremely important for the country’s economy and employment,” he said, stressing that the government, opposition parties and all relevant stakeholders should work together to address the sector’s problems.

Porwar said Jamaat-e-Islami would play a responsible role inside and outside Parliament on issues concerning national interests.

He said the opposition would support government initiatives that serve the public interest while raising objections to decisions or measures that go against public interests.

He also stressed the importance of involving experts in finding effective solutions to major national issues.

In particular, he said the party was prepared to extend expert-based assistance to the government, where necessary, on important economic issues including the energy crisis.

The Jamaat side also said that, as an opposition party elected by the people, it had a responsibility to raise public concerns in Parliament and support positive government initiatives while speaking up for legitimate public demands both inside and outside Parliament.

BGMEA leaders expressed satisfaction at being able to participate in the discussion at the invitation of the Opposition Leader after a long gap.

They presented their views on the garment industry’s current challenges, future opportunities and development plans, highlighting the need for coordinated action to protect the sector’s competitiveness and unlock its export potential.

The meeting was attended by Jamaat Secretary General Mia Golam Porwar, Assistant Secretary Generals Maulana Rafiqul Islam Khan and Dr AHM Hamidur Rahman Azad, Advocate Ehsanul Mahbub Zubayer and other party leaders.

Representing BGMEA were President Mahmud Hasan Khan, First Vice-President Selim Rahman, Vice-Presidents Md Rezwon Selim, Mizanur Rahman, Bidya Amrit Khan, Md Shehab Uddin Chowdhury and Mohammad Rafiq Chowdhury, along with chairmen and directors of various committees of the association.