The ongoing Middle East conflict is disrupting Bangladesh’s garment production, as energy shortages and rising costs place increasing pressure on the sector, according to the Bangladesh Garment Manufacturers and Exporters Association.
Speaking after a meeting with Commerce Minister Khandakar Abdul Muktadir in Dhaka, BGMEA President Mahmud Hasan Khan said the industry is facing a challenging environment driven by global instability, the geopolitical situation in the Middle East, and acute gas and electricity shortages.
The sector is also grappling with rising raw material costs and higher production expenses, further impacting competitiveness in international markets. Industry leaders stressed the need for strong policy support and a more business-friendly environment to sustain export growth.
BGMEA also raised concerns over regulatory pressures, noting that expanding the scope of the RMG Sustainability Council (RSC) into social compliance areas could increase administrative and financial burdens on manufacturers.
To support exporters, the association proposed several policy measures, including simplifying raw material imports, revising bond licence requirements, and withdrawing the existing 10% income tax on cash incentives. It also called for improved trade relations with India and the removal of barriers to yarn imports and exports through land ports.
The government acknowledged the importance of the garment sector as Bangladesh’s leading export earner and assured continued policy support to help the industry navigate current challenges and maintain global competitiveness.
