Bangladesh RMG Units Face Closure Risk Amid Export Decline

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) warned that many RMG units face closure without timely banking support, risking sector-wide instability.

Nearly 400 RMG factories shut down in the past year due to higher production costs, lower prices, and fewer orders, with SMEs under the most pressure.

Garment exports fell 2.43% YoY in the first 7 months of the fiscal year, and averaged a 9.43% YoY decline during Oct–Dec.

Due to elections, public holidays, and Eid-ul-Fitr, factories may operate only 35 of 60 days in Feb–Mar, yet must pay nearly double wages in March (salaries, bonuses, advances).

BGMEA urged faster release of pending cash support via lien banks and the Bangladesh Bank, and sought soft loans equal to 6 months’ wages to meet payroll obligations.