The textile and garment industry, accounting for over 80% of Bangladesh's total export earnings and contributing approximately 11% to the nation's GDP, faces an unprecedented crisis. Political unrest and catastrophic flooding have severely impacted the industry, with estimated losses of Tk 6,400 crore (approx Rs 4,500 crore) and a potential shortfall in exports.
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) reports substantial financial losses, estimating failure to reach the goal of nearly USD 45 billion in exports this year. According to BGMEA sources, out of 3,000 major and small garment factories in Bangladesh, nearly 800-900 have closed since last year.
Khandoker Rafiqul Islam, the newly elected president of the BGMEA, stated, "I think this is a temporary crisis and we will tide over it. The exact magnitude of the losses will be known later, but yes, there has been an impact. The crisis in the garment industry is unprecedented. Production is nearly 15-20 per cent less than the corresponding period last year. Several orders have dried up as investors and order suppliers are wary about investing. Several small factories have either closed down or are working on sub-contracts for big factories."
Industry leaders attribute the crisis to disruptions in export activities and production, with small and medium factories bearing the brunt.
The sector's workforce, employing over 4 million people directly and nearly 15 million indirectly, faces mounting uncertainty.
The industry's remarkable growth over the past two decades is now at risk, compounded by the recent flooding, which has caused damage to infrastructure and further complicated logistics.
The interim government, led by Nobel Peace Prize-winning economist Muhammad Yunus, prioritises restoring order and stability to address the crisis but the industry insiders acknowledge the path to recovery is filled with challenges, including undermined investor confidence and strained infrastructure.
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