Dhaka: Bangladesh's garment industry, a key economic driver responsible for over 80% of the country's export earnings, is facing an unprecedented crisis due to a combination of intense political unrest and devastating floods.
The resignation of Prime Minister Sheikh Hasina following violent protests has led to widespread factory shutdowns, with the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) reporting losses of approximately Tk 6,400 crore (around Rs 4,500 crore). This disruption has severely impacted production and export activities, particularly during the critical peak season for Christmas orders.
BGMEA President Khandoker Rafiqul Islam expressed concerns about the industry's ability to reach its export target of USD 45 billion this year. He emphasised the temporary nature of the crisis but acknowledged its significant impact.
The flooding, exacerbating the situation, has further crippled logistics, particularly at the Chattogram port, leading to extensive shipment delays. The Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) reported a 15-20 percent decline in orders, with President Mohammad Hatem warning of potential investor shifts to other South Asian markets.
The garment sector, which employs over 4 million people directly, now faces growing uncertainty as the political turmoil and natural disasters threaten years of growth. Despite this, industry leaders remain hopeful that with stability efforts led by interim government head Muhammad Yunus, the sector will eventually recover.
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