Readymade garment factories in Bangladesh are currently running below capacity due to a drop in work orders amid the volatility of the global economy driven by the ongoing Russia-Ukraine war.

As a result most factories are unable to run the their units for the daily eight hours while a number of factories have suspended production for two to three days a week.

Under the circumstances, the readymade garment sector has been unable to bear the burden of sudden price hikes of electricity and gas. Bangladesh’s export-oriented apparel sector has been hit by a power crisis. Production in many readymade garment factories has dropped by at least 40 per cent after the gas and electricity supply situation deteriorated sharply in recent weeks. Exporters are facing trouble producing the existing orders due to the shortage of electricity. They fear that if Bangladesh cannot produce and deliver the current orders on time, the confidence of international buyers will also decline amid a falling demand for textile products in the global market.

Bangladesh’s garment exports fell seven per cent in September 2022 for the first time in 13 months. In the midst of the slide in foreign currency reserves, both export earnings and remittance inflows decreased significantly in September 2022.