The RMG industry in Bangladesh is again facing tough times with second COVID-19 wave that has hit Europe and the US. As Rubana Huq, President, BGMEA informs, buyers are postponing new orders which might affect export volumes. Apparel exports in Bangladesh recorded a steep fall in October even though the export volume of the clothing items rose in August and September. Buyers also placed fewer work orders for November and December compared to the corresponding period of 2019.

Let-down by this fall in garment exports, some garment makers decided against exporting woven clothing items during the first quarter of 2020–21. From March-June 2020, apparel sector incurred losses as garment exports nosedived due to widespread shutdown enforced to slow the spread of the Coronavirus.

To mitigate the effects of economic slowdown, the government introduced a stimulus package. Earlier, the government provided Tk 75 billion to the owners in loans at a 4 percent interest rate enabling them to pay the workers’ wages. It later gave Tk 30 billion in response to owners’ demand. The factories’ owners drew almost half the offered funds.

Prof Selim Raihan, Executive Director, Sanem said, the loan had a positive impact during the crisis. He advised the government to set up an independent authority to evaluate the initiative to help them make decisions in the future.