RMG Industry at a Crossroads as Closures and Job Losses Deepen the Crisis
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The Readymade Garments Industry is passing through one of the most difficult phases in recent memory, marked by factory closures, shrinking exports, and growing financial stress. Industry leaders warn that the situation has moved beyond a temporary slowdown and is now threatening the backbone of the export economy. Rising production costs, limited access to credit, and weak policy coordination have combined to create an environment where survival itself has become a challenge.
According to Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association, the crisis reflects deeper structural failures rather than short term market fluctuations. He has repeatedly pointed to ineffective economic policies and an unsupportive banking system as major reasons behind the current strain. While certain steps have been taken to control inflation and ease the dollar shortage, these measures have failed to address the core needs of an export driven sector.
Factories Closing, Workers Displaced
Over the past eighteen months, nearly 250 to 260 garment factories have shut down operations, leaving more than 220,000 workers without jobs. Although some new units have opened and created limited employment, the overall loss remains severe. In industrial hubs such as Narayanganj, closures have affected entire communities, highlighting the human cost behind the numbers.
The withdrawal of key financial support mechanisms has intensified pressure on manufacturers. Higher borrowing costs, reduced export incentives, and tighter credit limits have sharply increased operating stress. At the same time, weak global demand, especially from the United States, has reduced order volumes. Increased competition in Europe from Asian exporters has further squeezed margins.
An Urgent Call for Reform
Industry leaders are urging swift, targeted action, particularly in banking reform and trade policy. Without timely intervention, the sector risks deeper damage to exports, employment, and overall economic stability. The warning is clear. Delayed action may close the door on recovery when it is needed most.
01:05 PM, Dec 15
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