A decrease in garment exports has impacted the country’s foreign reserves, said BGMEA President Faruque.
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) called for government policy support to deal with the challenges of the RMG sector.
A BGMEA delegation, led by President Faruque Hassan, held a meeting with Dr Md Khairuzzaman Mozumder, Secretary of the Finance Division at the Ministry of Finance, on 3 October at the secretariat.
The delegation comprised BGMEA Senior Vice President SM Mannan (Kochi) and Vice President Rakibul Alam Chowdhury.
The meeting revolved around pressing issues concerning the country’s readymade garment industry, its potential, and the vision to sustain growth and development.
During the meeting, President Faruque Hassan pointed to the profound impact of the Russia-Ukraine conflict on the global economy, which has presented a significant challenge for the readymade garment industry of Bangladesh.
The repercussions of the Russia-Ukraine war have led to severe inflation in the USA and EU countries and demand for apparel in key export markets like Europe and America has declined as consumers prioritize essential items such as food and fuel over clothing. This has resulted in decline in garment exports to Europe and the USA.
This decrease in garment exports, which constitutes over 84% of Bangladesh’s total export earnings, has impacted the country’s foreign reserves.
Recognising the magnitude of these challenges, President Faruque Hassan emphasised the necessity for government policy support to navigate these troubled times and maintain competitiveness in the global market.
He underscored the industry’s increasing focus on diversifying into non-cotton products including man-made fiber (MMF) based garments, given their high demand globally, and urged the government to encourage and facilitate this shift through policy support.
Faruque Hassan highlighted the industry’s commitment to environmental sustainability, including efforts in developing the capacity of recycling and promoting a circular economy.
He stressed the need for government support to advance recycling and circularity within Bangladesh’s garment industry.
In addition to these concerns, the delegation called for easier and faster services from the banking sector for the RMG industry.
