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‘Amar Shwapno’: RMG workers dream of safe factories, freedom, dignity

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RMG Bangladesh
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“I want a safe factory free from vulgar language,” wrote RMG (readymade garment) worker Humaira Begum on an open opinion board titled “Amar Shwapno” (My Dream) at an event in Dhaka today (17 May).

Humaira is one of the hundreds of garment workers who gathered to share their dreams for the future of their industry at the event, titled “Garment Workers’ Tarokamela” (Star Festival), organised by NGOs Karmojibi Nari and the Safety and Rights Society (SRS).

The event, hosted at the Liberation War Museum in Agargaon, aimed to promote worker well-being and safe working conditions. Many workers shared their dreams for the future of the industry on the Amar Shwapno board.

Suravi, a garment worker from Tongi, wrote, “If women get freedom, all their dreams will come true.” Another worker wrote, “I want to live with dignity, not just as a labourer.”

Workers and their children also participated in various cultural activities, including Baul songs. A play aimed at raising awareness about the Employment Injury Scheme for garment workers was also performed.

Photo: Md Jahidul Islam/TBS

Photo: Md Jahidul Islam/TBS

Women from 8 women’s cafes around Dhaka also participated in the event. 

A women’s cafe is a safe space for female factory workers to learn about their rights, share experiences, and relax. It provides education, recreation, and support for women in the workplace.

Garment worker Bilkis Akhter said, “The women’s cafe is a dear place for us. Without it, we would not know that entertainment is our right.”

Another female garment worker said, “Women’s cafe helped me navigate family disputes. Life is now good with my husband and our children.”

The speakers at the event hoped that it will inspire and motivate workers in the garment industry, tannery industry, and other sectors.

Photo: Md Jahidul Islam/TBS

Photo: Md Jahidul Islam/TBS

Jatiyo Sramik Jote President Saifuzzaman Badsha said, “Women’s cafes can help raise awareness and organise workers. Unionised workers always prevail.”

Labour leader Nahidul Islam Nayan said that women’s cafes offer joy, services, support, and a path to a better environment for workers. They empower women to fight for better workplaces and well-being.

According to Department of Labour Director General (Additional Secretary) Md Tarikul Alam, “The government will definitely try to implement the labour laws so that the working people can become smart.”

Deputy Director (Medical and Labour Welfare) Roksana Chowdhury said, “Everyone here is shining like a star. I invite the stars present here to take Bangladesh’s production forward.”

Department of Inspection for Factories and Establishments Deputy Inspector General (Safety) Mahfuzur Rahman Bhuiyan said that the government is creating a worker database and offering grants to those impacted by the Covid-19 pandemic.

Karmojibi Nari General Secretary Sharmin Kabir said that working women deserve supportive families and workplaces, with opportunities for recreation just like men.

BGMEA president urges Ctg Customs House to address customs related problems of RMG industry

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RMG Bangladesh
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The Bangladesh Garment Manufacturers and Exporters Association President SM Mannan (Kochi) today (15 My) emphasised the urgent need for simplifying customs-related procedures and removing hassles in services to facilitate smoother and faster services for the readymade garments (RMG) sector. 

In a meeting with Mohammad Fyzur Rahman, commissioner of Custom House, Chattogram, he highlighted the adverse effects of customs-related challenges on export-import activities, leading to increased production costs and unnecessary delay in business procedures, especially amidst the current global economic slowdown and reduced consumer spending on clothing.

The meeting aimed to address the complexities and challenges surrounding customs-related services, including documentation problems and HS Code classifications, which have been affecting the RMG industry’s operations.

The BGMEA president stressed the importance of reducing lead times to enhance competitiveness in the global fashion market.

“The government support and cooperation in ensuring the sustainable growth of the RMG industry is very essential for Bangladesh’s RMG sector to remain competitive in the global market,” he said, adding that money laundering under the name of export is condemnable. 

“Genuine exporters never indulge in such malpractices, and BGMEA does not morally support such actions. BGMEA believes that those who harm the country’s economy should be brought to justice,” he said.

At the same time, the BGMEA president called on the commissioner of Customs House Chattogram to bring exemplary punishment to those who obstruct exports, harass exporters, and damage the country’s economy, ensuring they are held accountable under the law.

At the meeting, the BGMEA delegation urged the customs authorities to promptly address these issues and streamline services for the RMG sector to alleviate operational bottlenecks and enhance efficiency.

In response, the customs commissioner acknowledged the significant contributions of the RMG industry to the socioeconomic development of Bangladesh.

He assured the BGMEA delegation of the Customs House’s cooperation to address their concerns and facilitate a conducive environment for the industry’s growth.

BGMEA First Vice President Syed Nazrul Islam, Senior Vice President Khandoker Rafiqul Islam, Vice President (Finance) Md Nasir Uddin, Vice President Abdullah Hil Rakib, Vice President Rakibul Alam Chowdhury, and Directors Shovon Islam, Haroon Ar Rashid, Mohammad Sohel Sadat, Md Ashikur Rahman (Tuhin), Shams Mahmud, Mohiuddin Rubel, Md Nurul Islam, Mohammed Musa, M Ahsanul Hoq, Gazi Md Shahid Ullah, former first vice presidents SM Abu Tayyab, Nasir Uddin Chowdhury, Moinuddin Ahmed Mintu, former Directors M Mahbub Chowdhury, Anjan Shekhar Das, Saifullah Mansur, and AM Shafiul Karim Khokon were present at the meeting.

President of C&F Association AKM Akther Hossain, owners of garment factories and high officials of Customs House Chattogram were also present at the meeting.

বন্ধের পথে ফুলগাজীর একমাত্র তাঁতশিল্প

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RMG Bangladesh
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প্রয়োজনীয় সরঞ্জামের অভাব, আর্থিক সমস্যা ও নানা সংকটে বন্ধ হওয়ার পথে ফেনীর ফুলগাজী উপজেলার তাঁতশিল্পের খাদি প্রতিষ্ঠান ও গান্ধী আশ্রম ট্রাস্ট। একসময়ে এখানের হস্তচালিত তাঁত চরকার মাধ্যমে উৎপাদিত কাপড়ের খ্যাতি দেশব্যাপী ছড়িয়ে পড়লেও ধীরে ধীরে স্থবির হয়ে পড়েছে এই প্রাচীন প্রতিষ্ঠানের কার্যক্রম।

জানা গেছে, ব্রিটিশবিরোধী আন্দোলনের অংশ হিসেবে তৎকালীন সময়ে পাক-ভারত উপমহাদেশে হস্তচালিত কাঠের তৈরি চরকা দিয়ে শুরু হয় তাঁতশিল্পের। ১৯২১ সালে ভিনদেশে তৈরি কাপড় বর্জনের ডাক দিয়েছিলেন মহাত্মা গান্ধী। তারই অংশ হিসেবে ১৯২১ সালের ৩১ আগস্ট ফুলগাজী উপজেলার নতুন মুন্সীরহাট (তৎকালীন বীরচন্দ্র) বাজারের পাশে ১০৬ শতক জায়গায় গড়ে উঠেছিল খাদি প্রতিষ্ঠান ও গান্ধী আশ্রম ট্রাস্ট। যা উদ্বোধন করেছিলেন মহাত্মা গান্ধী নিজেই। পরে এই তাঁতশিল্পকে ঘিরেই ওই এলাকায় তাঁতিদের বসবাস শুরু হয়। তবে বর্তমানে অটো পাওয়ার মেশিনে কাপড় তৈরির প্রক্রিয়া শুরু হওয়ায় কাঁচামাল সুতা ও রং দেওয়ার প্রয়োজনীয় ব্যবস্থা না থাকায় বন্ধের পথে প্রাচীন এ তাঁত শিল্পটি।

সরেজমিনে গিয়ে দেখা যায়, তাঁত শিল্প প্রকল্পের আওতায় একটি চরকায় তিনজন নারী শ্রমিক এবং সঞ্চয় ও ঋণ প্রকল্পের আওতায় চারজন পুরুষ ও নারী কাজ করছেন। দৈনিক তৈরি পণ্যের ওপর মজুরি দেওয়া হয় শ্রমিকদের। এ ছাড়া দুপুরে খাবার বাবদ প্রত্যেকে ৫০ টাকা করে পান। অথচ ট্রাস্ট উদ্বোধনের প্রথম দিকে কথা ছিল ২০ জন নারী শ্রমিক ৮টি তাঁত ও ১২টি চরকায় কাজ করবে। পরবর্তীতে তা বৃদ্ধি পাওয়ার কথা থাকলেও বন্ধের পথে এ শিল্পটি।

ট্রাস্টের আঞ্চলিক ব্যবস্থাপক প্রফুল্ল চন্দ্র ভৌমিক বলেন, প্রাথমিক অবস্থায় ১২টি হস্তচালিত তাঁত যন্ত্রের মাধ্যমে কাপড় তৈরি হতো। এখানের তাঁতশিল্পকে ঘিরে গড়ে উঠেছিল বাজার। পরবর্তীতে এই বাজারের নামকরণ করা হয় নতুন মুন্সিরহাট বাজার। ১৯৪৮ সালে দ্বিতীয় বিশ্বযুদ্ধের সময় এই তাঁত শিল্পটি বন্ধ হয় যায়। তখন সচল হস্তচালিত তাঁত যন্ত্র নষ্ট হয়ে যায়। দেশভাগের পর নতুন করে নোয়াখালী গান্ধী আশ্রম ট্রাস্ট প্রধান কার্যালয় থেকে সহযোগিতা নিয়ে চালু করা হয় হস্তচালিত তাঁতশিল্পটি। সর্বশেষ ২০১৩ সালে ভারতের উপরাষ্ট্রদূত বাবু সন্দীপ চক্রবর্তী আনুষ্ঠানিক উদ্বোধনের মধ্য দিয়ে এখানে ৮টি তাঁত যন্ত্রের মাধ্যমে শিল্পটির কার্যক্রম শুরু করেন।

এদিকে কার্যক্রম সীমিত হওয়ায় উপজেলার অনেক গ্রামীণ নারী শ্রমিক বেকার হয়ে পড়েছেন। তাঁত প্রকল্পের বিভিন্ন কাঁচামাল সরবরাহ না থাকায় চরকাগুলো দীর্ঘদিন বন্ধ রয়েছে। এতে তাঁত কলের যন্ত্রপাতি বিকল হয়ে পড়েছে। বন্ধ রয়েছে নতুন করে শ্রমিক নিয়োগ কার্যক্রমও। বর্তমানে একটি চরকাতে কাজ চললেও সেখানে কয়েকটি গামছা ,রুমাল ব্যতীত অন্যকিছু তৈরি হয় না। 

আশ্রমে কর্মরত শ্রমিক শাহেনা আক্তার ঢাকা পোস্টকে বলেন, এখানে মজুরি একদম কম। তারপরও নিরুপায় হয়ে পেটের দায়ে কাজ করছি। একটি গামছা তৈরি করে ৪০ টাকা, রুমাল তৈরি করে ১০ টাকা পাই। দিনে সর্বোচ্চ দুইটি গামছা তৈরি করতে পারি। এভাবে আর চলা যায় না। 

ছকিনা আক্তার নামে আরেক শ্রমিক বলেন, আমরা মানবেতর জীবনযাপন করছি। কখনো কোনো সহযোগিতা পাই না। কেউ খোঁজ নিতেও আসেন না। সংশ্লিষ্ট কর্তৃপক্ষ যদি একটু নজর দেন তাহলে এখানে কাজ করে পরিবার নিয়ে আমরা কিছুটা স্বস্তিতে থাকতে পারব।

ট্রাস্টের আঞ্চলিক ব্যবস্থাপক প্রফুল্ল চন্দ্র ভৌমিক ঢাকা পোস্টকে বলেন, করোনাকালীন বন্ধ থাকায় শ্রমিকরা পেশা পরিবর্তন করেছে। এ ছাড়া কাজটি অনেক কষ্টকর হওয়ায় শ্রমিকরা বেশি সময় কাজ করতে পারেন না। খুব শীঘ্রই আশ্রমটিতে আধুনিকায়নের মাধ্যমে ঐতিহ্য ধরে রেখে বড় পরিসরে কার্যক্রম পরিচালনা করা হবে। চলতি মাসে নোয়াখালীতে ট্রাস্টি বোর্ডের একটি সভা হওয়ার কথা রয়েছে। সেখানে এই প্রতিষ্ঠানের বিষয়ে উল্লেখযোগ্য একটি সিদ্ধান্ত আসতে পারে।  

এ ব্যাপারে নবনির্বাচিত ফুলগাজী উপজেলা পরিষদ চেয়ারম্যান হারুন মজুমদার ঢাকা পোস্টকে বলেন, প্রতিষ্ঠানটি দীর্ঘদিন ধরে নাজুক অবস্থায় পড়ে থাকলেও কোনো জনপ্রতিনিধি এগিয়ে আসেনি। শপথ গ্রহণের পরপরই স্থানীয় সংসদ সদস্য আলাউদ্দিন আহমেদ চৌধুরী নাসিমের সঙ্গে কথা বলে পুনরায় নতুন রূপে কার্যক্রম শুরু করতে কাজ করব। আশা করি, সংশ্লিষ্ট কর্তৃপক্ষের সহযোগিতায় আগামী ৫ থেকে ৬ মাসের মধ্যে এটি আলোর মুখ দেখবে।  

একই প্রসঙ্গে ফুলগাজী উপজেলা নির্বাহী কর্মকর্তা (ইউএনও) তানিয়া ভূঁইয়া ঢাকা পোস্টকে বলেন, গান্ধী আশ্রম ট্রাস্টের বিষয়ে কেউ কখনো আমার কাছে আসেনি। কয়েকদিন আগেই এ প্রতিষ্ঠানের বিষয়ে অবগত হয়েছি। সংশ্লিষ্টদের সঙ্গে কথা বলে তাদের সর্বোচ্চ সহযোগিতা করব।

তারেক চৌধুরী/এএএ

CPD: RMG exporters pay 6 times more for licence, permit fees

POST BY
RMG Bangladesh
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A new study by the Center for Policy Dialogue (CPD) revealed on Tuesday that readymade garment (RMG) exporters were paying six times higher than the official fees for obtaining permits and renewing licences.

The study also found that apparel exporters paid 644% higher than the official rate for boiler licences.

For bond licences, they paid 261% higher than the official rate, and as for fire licences, the cost stands at 114% higher than the official rate.

In some cases, the amount is a little bit lower. For example, 36% higher payment than the official for factory establishment licence, 16% higher for trade licence and 12% higher for export registration certificate and import registration certificate, said Khondaker Golam Moazzem, research director at the CPD, during a seminar.

The official rate, however, was not disclosed.

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), CPD and GIZ Bangladesh jointly organized the event on the “Business related barriers and possible way out.”

Moazzem said the data was collected from various business enterprises.

Anecdotal information shows that costs for securing essential permits can range from Tk50,000-100,000 more than the official fees, he said in his keynote presentation.

Renewal of these licences, however, incurs additional expenses varying from Tk500 to several thousand, he added.

Businesses frequently encounter unofficial and unregulated fees, leading to financial strain and unpredictability in operational expenses, he also said.

“High levels of corruption can impact all business sectors, with 100% of large companies, 66.67% of medium-sized enterprises, and 61.9% of small and micro enterprises reporting it as a major issue.”

He also said about 58.6% of businesses report that bribes are common in awarding public contracts and licences.

The timeline for obtaining and renewing licences often exceeds the official period, leading to significant delays. 

For example, a trade licence renewal, which officially takes no more than seven business days, often spans 10 to 15 days due to inefficiencies and additional fees, according to the CPD research director’s presentation.

Delays disrupt business operations, hinder expansion plans, and reduce investor confidence, he noted.

Due to complications, many businesses used to hire third-party agents to navigate bureaucratic hurdles and manage which also increased the cost of business, said Moazzem.

The economist also recommended making the process transparent with digitization, as it could be utilized to reduce such corruption and undocumented payments.  

Ahsanul Islam Titu, state minister for Commerce, was the chief guest of the event and Lokman Hossain Mia, executive chairman of the Investment Development Authority (BIDA) attended as special guest.

FBCCI President Mahbubul Alam chaired the seminar. 

Ashulia RMG workers block road, vandalise vehicles over unpaid wages

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RMG Bangladesh
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The workers of Ethical Garment Limited staged a demonstration over unpaid wages, blocking the Narshingdi-Kashimpur road in Dhaka’s Ashulia today (16 May) 

The protest turned violent as the agitated RMG workers vandalised three vehicles, including a car, motorcycle, and a microbus, said the factory Manager (Administration) Belal Hossain.

According to the workers, salaries for April were scheduled for payment on 10 May but were deferred to 15 May (yesterday) by factory authorities. 

An Industrial Police official, speaking on condition of anonymity, confirmed that despite assurances of payment on 15 May, workers returned empty-handed yesterday, with a promise to clear the dues on 21 May.

“The workers’ salaries were originally scheduled to be paid yesterday. However, the authorities again rescheduled the payment for a later date. When the workers arrived at the factory this morning, they discovered it was closed. Subsequently, they began protesting and vandalising on the road. Later, the industrial police intervened and dispersed the workers from the area,” he told The Business Standard 

The situation is now under control, he added.

Factory Manager Belal Hossain explained that due to the inability to pay wages before 21 May, the factory opted for a temporary closure to prevent further escalation.

“However, since the workers acted violently today, vandalising a factory microbus, a car and a motorcycle as well as in the factory, I am uncertain whether normal factory operations will resume tomorrow,” he added.

General Manager Pintu Adhikari acknowledged the outstanding April wages, assuring that this is the sole pending payment 

He affirmed that the workers will be paid the arrears on 21 May.

Noting that the factory has been experiencing an order crisis for some time now, the official said, “The number of work orders in the factory has decreased by more than half compared to previous levels. Just a few days ago, we were expecting a payment, but it was eventually canceled, exacerbating the crisis.”

Cash subsidy for exports surges. Only garment yields expected results

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RMG Bangladesh
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The government’s cash incentive against export receipts has soared over the years although many sectors could not make their mark in the global market, bringing in limited results for the government’s diversification initiative.

Currently, 43 sectors receive taxpayer-funded cash support, with the maximum rate standing at 15 percent and the minimum rate at 0.5 percent.

Of them, only the garment sector has consistently fared well, turning Bangladesh as the second-largest apparel supplier in the world. The sector accounts for about 85 percent of the country’s exports as well.

The government has spent thousands of crores of taka over the years to help exporters become competitive in international trade. The subsidy amount stood at Tk 8,689 crore in the last financial year of 2022-23, slightly down from Tk 8,784 crore from a year prior, Bangladesh Bank data showed.

However, the generous handout can’t be continued after 2026 since World Trade Organisation (WTO) rules don’t allow developing and developed countries to pay direct cash incentives to exporters. Bangladesh is set to become a developing country in November 2026.

The imminent graduation and persisting pressure on the coffer amid low tax collections prompted the government to cut the subsidy for almost all sectors in February with a view to bringing down the rates gradually and protecting exporters from any shock that may emanate in the event of a sudden withdrawal of the cash aid.

The highest cash incentive rate has been reduced to 15 percent from 20 percent for most sectors. Only four sectors – diversified jute products, vegetables, fruits and products in the agro-processing sector, potatoes, and halal meat and processed meat exporters — will qualify for the top rate.

Despite immense potential and direct cash assistance, sectors such as jute and jute goods, leather and leather goods, and agro-processing and frozen foods have not been able to emulate the feat achieved by the garment sector.

Even, results are mixed within the garment sector. For example, Bangladesh is still strong in cotton fibre garment items although the world has moved towards non-cotton items. Furthermore, apparel items produced from artificial materials fetch better prices than those made from the natural fibre.

Speaking to The Daily Star, Zahid Hussain, a former lead economist of the World Bank, said the way the cash incentive is now being given is not wise.

“The way should be reconsidered because many sectors could not produce positive outcomes though the money was spent.”

If Bangladesh, as a developing nation, provides direct cash incentives on export receipts, disputes regarding compliance will arise, he said.

Hussain said the diversification in the export sector did not take place except in the garment industry despite spending the money. Even corruption took place in the management of cash incentives.

“Therefore, if the incentive is retained for any sectors after the LDC graduation in different forms, the eligibility of sectors should be assessed.”

SM Mannan Kochi, president of the Bangladesh Garment Manufacturers and Exporters Association, said they had already held meetings with finance ministry officials and called for the continuation of incentives after the LDC graduation since countries such as India and China pay such incentives under different names.

“Many countries are giving the incentive in the name of technology upgradation or skills development funds.”

According to the business leader, there are numerous small and medium enterprises and emerging sectors in Bangladesh that are not strong enough financially to cope up with the potential challenges in the post-LDC era.

“The cost of doing business is increasing because of the power tariff hike, so the government should continue the incentive even after the graduation.”

RMG employment injury scheme expands coverage to commuting accidents

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RMG Bangladesh
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The Bangladesh government has expanded the coverage of the pilot employment injury scheme to include compensation for accidents that may occur when workers are commuting to and from work.

The Governance Board of the Employment Injury Scheme (EIS) Pilot during its 8th meeting held on May 13 unanimously approved the inclusion of ‘commuting accidents’ as industrial accidents, making them eligible for compensation starting from July 1, 2024.

“We are very pleased to include commuting accidents in the Employment Injury Scheme Pilot to ensure protection of industries and workers in Bangladesh,” said Md Mahbub Hossain, Secretary of the Ministry of Labour and Employment (MoLE) chairing the meeting.

The decision was unanimously supported by employers’ organizations (BEF, BGMEA, BKMEA), workers’ organizations (UFGW, NCCWE), and government agencies (Central Fund, DoL, DIFE), who are members of the EIS Pilot Governance Board, according to ILO.

“Since June 21, 2022, the EIS Pilot has been compensating injured workers and the dependents of deceased workers in the ready-made garments sector for work-related accidents,” said Tuomo Poutiainen, ILO’s Country Director for Bangladesh.

With this inclusion of commuting accidents, the initiative is expected to provide enhanced protection to workers and improve industrial relations, which are often disrupted by accidents involving workers on their way to or from work, Poutiainen said.

ILO technical experts provided insights into key aspects of the technical and financial aspects of such an expansion, including conditions for considering commuting accidents as workplace accidents but keeping separate records as these accidents take place outside the factory and not identifying them with any factory.

Additionally, they presented a strong case for the financial sustainability of the coverage of accidents under the EIS Pilot.

Employers’ associations responded positively saying; “we support fundamental rights of workers for social protection and would be happy to consider new benefits provided they do not affect the industry’s competitiveness,” agreeing to include commuting accidents under the pilot scheme from 1st July 2024.

The workers’ representatives also expressed their commitment to support the initiative. “RMG Sector is a relatively safe sector, however, road travel is the most horrible part of this job, therefore commuting accidents are important to be covered”.

Article 7 of the ILO Employment Injury Benefits Convention No. 121 (C-121) requires countries to define industrial accidents, including the conditions under which a commuting accident is considered to be an industrial accident.

Adapting this measure brings the Bangladesh EIS one-step in closer alignment with the requirements outlined in C -121.

In the ambit of the EIS Pilot, commuting accidents are considered accidents sustained while on the direct way between the place of work and the workers’ local residence. With the inclusion of commuting accidents in the EIS Pilot, the Pilot now covers two out of three recommended vulnerabilities, with ‘Occupational Diseases’ is yet to be covered.

A process has however started to develop the national capacity and data on occupational diseases.

ILO and GIZ are jointly providing technical support to the Government of Bangladesh, employers’, and workers’ organizations in implementing the Employment Injury Scheme Pilot.

The ILO initiative is funded by the Governments of the Netherlands and Canada, whereas the GIZ initiative is funded by the German Federal Ministry for Economic Cooperation and Development (BMZ).

RMG industry must tackle 3 challenges to lead in a competitive market

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RMG Bangladesh
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For the sustainable development of the readymade garment (RMG) industry in the country and to thrive in the current competitive market, it is necessary to address three urgent challenges, said experts at a discussion.

The challenges are: decarbonization, the transition from the Least Developed Countries (LDCs), and the impact of automation technology on the fourth industrial revolution.

Decarbonization involves reducing carbon emissions across the RMG value chain, while the impending fourth industrial revolution poses a threat to jobs due to automation and artificial intelligence. Therefore, there’s an urgent need to reskill and upskill workers to mitigate job displacement.

The remarks were made in a presentation by Zahedul Amin, co-founder and director of LightCastle Partners, at a roundtable discussion titled ‘Bunon 2030: Policy discussion’ at a hotel in the capital Saturday.

Md Selim Hossen, deputy commerce secretary, said free trade agreements (FTAs) necessitate diversification of the export basket.

Bangladesh could adopt a product-based business model and invest in sector-specific initiatives to facilitate the transition away from reliance on the RMG sector, he said.

The meeting aimed at highlighting actions and recommendations for addressing the multifaceted challenges in the RMG industry during the LDC transition and to thrive in the competitive market.

Md Ariful Hoque, director general, Bangladesh Investment Development Authority, said policymakers can engage in consultations with pertinent stakeholders to craft effective export-oriented policies tailored to the needs of the apparel sector in Bangladesh.

Abdur Rahim Khan, inspector general, Department of Inspection for Factories and Establishments, said emulating successful models like the Product Linked Incentive (PLI) scheme in India, tailored mechanisms could be devised to support and incentivize Bangladesh apparel export market.

Mohammad Hatem, executive president, Bangladesh Knitwear Manufacturers and Exporters Association, said to facilitate the diversification in fiber production, there can be duty-free access on importing raw materials for the production of manmade Fibers (MMF).

LightCastle Partners, a global prominent business consultancy firm, and Policy Exchange Bangladesh, jointly organized the event.

The event was moderated by M Masrur Reaz, Chairman of Policy Exchange Bangladesh. Ainee Islam, Director of the Program Development Department at the Asia Foundation, delivered the opening remarks.

According to the keynote paper, the biggest crisis will arise after the transition from the list of Least Developed Countries (LDCs) status in 2026.

This crisis is likely to be worsened by the loss of other trade benefits, including the Generalized Scheme of Preferences (GSP) due to LDC status, rising wages of workers, concerns about international buyers and importers shifting to countries with lower garment production costs than Bangladesh, and non-compliance by some garment industry owners.

The keynote also mentioned that, according to data from the Export Promotion Bureau in 2023, Bangladesh currently ranks as the second-largest exporter of ready-made garments globally.

The same source indicates that Bangladesh exported garments worth USD 47 billion by February FY24.

According to the Bangladesh Bank, the contribution of this sector to GDP in FY23 was 10.35%, employing over 4.1 million garment workers, 60% of whom are women.

Consequently, if these issues are not addressed promptly, they may negatively impact both the industry and the overall economy.

Apparel exporters pay 6 times higher than official fees for essential permits, licence renewals: CPD

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RMG Bangladesh
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Bangladeshi apparel exporters have to pay up to six times higher than the official fees for securing essential permits and renewal of licences, which also increases their business costs, according to a new study by the Center for Policy Dialogue (CPD).

The study found that apparel exporters paid 644% higher than the official rate for boiler licences. For bond licences, they paid 261% higher than the official rate, and as for fire licences, the cost stands at 114% higher than the official rate.

“In some cases, the amount is a little bit lower. For example, 36% higher payment than the official for factory establishment licence, 16% higher for trade licence and 12% higher for export registration certificate and import registration certificate,” Dr Khondaker Golam Moazzem, research director at the CPD, said during a seminar on Tuesday (14 May).

The official rate, however, was not mentioned during the seminar.

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), CPD and GIZ Bangladesh jointly organised the event on the “Business related barriers and possible way out.”

According to Dr Khondaker Golam Moazzem, the data was collected from various business enterprises.

Anecdotal information shows that costs for securing essential permits can range from Tk50,000-100,000 more than the official fees, he said in his keynote presentation.

Renewal of these licences, however, incurs additional expenses varying from Tk500 to several thousand, he added.

“Businesses frequently encounter unofficial and unregulated fees, leading to financial strain and unpredictability in operational expenses,” he said.

These undocumented payments are perceived as necessary to expedite the licensing process, creating ethical and compliance dilemmas, he added.

“High levels of corruption can impact all business sectors, with 100% of large companies, 66.67% of medium-sized enterprises, and 61.9% of small and micro enterprises reporting it as a major issue.”

He also said about 58.6% of businesses report that bribes are common in awarding public contracts and licences.

The timeline for obtaining and renewing licences often exceeds the official period, leading to significant delays. 

For example, a trade licence renewal, which officially takes no more than seven business days, often spans 10 to 15 days due to inefficiencies and additional fees, according to the CPD research director’s presentation.

Delays disrupt business operations, hinder expansion plans, and reduce investor confidence, he noted.

Due to complications, many businesses used to hire third-party agents to navigate bureaucratic hurdles and manage which also increased the cost of business, said Dr Moazzem.

The economist also recommended making the process transparent with digitisation, as it could be utilised to reduce such corruption and undocumented payments.  

Ahsanul Islam Titu, state minister for Commerce, was the chief guest of the event and Lokman Hossain Mia, executive chairman of the Investment Development Authority (BIDA) attended as special guest. FBCCI President Mahbubul Alam chaired the seminar. 

গার্মেন্টসের বাজার ধরে রাখতে গ্রিন এনার্জির বিকল্প নেই: বিদ্যুৎ প্রতিমন্ত্রী

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RMG Bangladesh
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কয়লা বিদ্যুৎ থেকে গার্মেন্টস পণ্য উৎপাদন করলে ইউরোপে বাজার কমে আসবে। এক্ষেত্রে গার্মেন্টসের বাজার ধরে রাখতে হলে গ্রীন এনার্জির বিকল্প নেই বলে জানিয়েছেন বিদ্যুৎ, জ্বালানি  ও খনিজ সম্পদ প্রতিমন্ত্রী নসরুল হামিদ।

 রাজধানীর ইঞ্জিনিয়ার্স ইনস্টিটিউশনে ‘দ্য ইঞ্জিনিয়ার্স ফর ট্রান্সফরমিং টেকনোলজি ড্রিভেন স্মার্ট বাংলাদেশ’ শীর্ষক সেমিনারের তিনি এসব কথা বলেন।

আধুনিক প্রযুক্তির সঙ্গে কৃত্রিম বুদ্ধিমত্তার প্রযোগ বাড়ানোর রোডম্যাপ করা হচ্ছে। এই কৃত্রিম বুদ্ধিমত্তা আমাদের দৈনন্দিন কাজ সহজ করে দিবে। কর্মক্ষত্রের সর্বস্তরে প্রযুক্তির ব্যবহার বাড়াতে ইঞ্জিনিয়ারদের দায়িত্বশীল অবদান রাখা উচিত বলে জানান প্রতিমন্ত্রী।

তিনি বলেন, ‘সরকারি প্রতিষ্ঠানের কর্মকর্তারা এখনো স্মার্ট প্রযুক্তির সঙ্গে মানিয়ে উঠতে পারেননি। তবে তাদের প্রশিক্ষণের ব্যবস্থা করা হচ্ছে।’

নসরুল হামিদ বলেন, ‘ডিজিটাল বাংলাদেশে কানেক্টিভিটি তৈরি হয়েছে, যা ‘স্মার্ট বাংলাদেশ’ বিনির্মাণের ভিত্তি। যেসব দেশ এক্ষেত্রে এগিয়ে আছে তাদের কাছ থেকে শিক্ষা নেয়া যেতে পারে। পড়াশুনা ও শিক্ষার মধ্যে থেকে উদ্ভাবন বাড়াতে হবে। বাংলাদেশের ইঞ্জিনিয়াররা যত দ্রুত প্রযুক্তিকে মানুষের কল্যাণের একটি শক্তি হিসেবে ব্যবহার করতে পারবে, দেশ তত দ্রুত উন্নত দেশে পরিণত হবে।’

বাংলাদেশের অর্থনীতির মূল চালিকা শক্তি বিদ্যুৎ ও জ্বালানি। এখাতে প্রযুক্তির ব্যবহার ক্রমাগত বাড়ছে। আগামীতে আরও বাড়ানো হচ্ছে বলে জানান তিনি।

প্রতিমন্ত্রী বলেন, ‘বিদ্যুতের স্মার্ট মিটারে সুফলতা মিলছে। বিতরণ কোম্পানিগুলো মিটারের মাধ্যমে এলাকাভিত্তিক চাহিদার হিসাব জানতে পারছে।’

৬১তম ইঞ্জিনিয়ার্স ইনস্টিটিউশনের কনভেনশনে ১০টি প্রবন্ধ উপস্থাপন করা হয়। মূল প্রবন্ধ উপস্থাপন করেন বুয়েটের অধ্যাপক ড. ইঞ্জিনিয়ার মুনাজ আহমেদ নুর ।

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Ready Made Garments sector is the key source of foreign currency and GDP for Bangladesh. Approximately 4.2 million people are dependent on the RMG sector for their bread and butter.
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