Bangladesh's garment industry is facing severe challenges due to global geopolitical instability and retaliatory tariffs imposed by the United States, said Mahmud Hasan Khan Babu, President, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) during a courtesy visit on June 30, 2025 to Chowdhury Ashiq Mahmud Bin Harun, Executive Chairman, Bangladesh Investment Development Authority (BIDA) and the Bangladesh Economic Zones Authority (BEZA).
To help the RMG sector navigate these hurdles and expand, Harun requested BIDA to allocate land for the numerous small and medium-sized garment factories currently dispersed across Chattogram.
The meeting also underscored the urgent need for investment in renewable energy and environmentally friendly production. Babu emphasized on the importance of developing a roadmap for this shift, advocating for technical and financial support to encourage factories to install solar panels for energy conversion.
Furthermore, he sought BIDA's assistance in waste recycling noting, the association needs to introduce appropriate policies, tax exemptions, and supervision for informal workers to encourage investment in this sector.
Discussions also touched upon Bangladesh Bank's loan classification policy. Babu requested an extension of the current three-month grace period to six months, explaining, entrepreneurs sometimes fail to pay installments on time due to financial crisis and are subjected to loan classification.
Citing the bond audit process as time-consuming and cumbersome for export trade, Babu urged Harun to outsource audits for 20 institutions to ensure transparency and efficiency. He also called for the establishment of a separate ministry dedicated to the textiles and apparel sector.
