Bangladesh’s earnings from readymade garment (RMG) exports rose to $3.89 billion in July2026, reflecting a slight 1.92 per cent year-on-year decline from $3.96 billion recorded in July 2025. Despite the minor contraction, exports demonstrated a sharp sequential recovery, rebounding 14.73 per cent M-o-M compared to June’s $3.38 billion baseline. Category-wise data from the Export Promotion Bureau (EPB) highlights, woven apparel shipments contracted by 3.16 per cent year-on-year, whereas knitwear exports proved significantly more resilient, slipping just 0.90 per cent to $2.15 billion on strong global demand for basic activewear and sweaters.

Domestic gas shortages and freight surcharges hamper mill utilization

Widespread natural gas supply constraints across key industrial clusters in Gazipur and Narayanganj continue to restrict manufacturing capacity utilization, driving up unit production overheads and delaying delivery schedules. Furthermore, geopolitical supply chain disruptions along international shipping lanes have inflated ocean freight tariffs for garment exporters. While high historical comparison bases and severe industrial gas shortages created temporary headwinds in July, robust demand in non-traditional markets like India and steady US order inflows signal underlying structural strength, notes Fazlee Shamim Ehsan, Executive President, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).

Targeting $100 billion in export earnings by 2030

Accounting for over 80 per cent of national export earnings, Bangladesh’s RMG sector supplies woven and knit apparel to major European, North American, and Asian retail chains. Established in the late 1970s, the sector targets $100 billion in annual export earnings by 2030 through green factory modernization and product diversification.