BGMEA warns of factory closures, seeks urgent banking support

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has warned that many ready-made garment (RMG) factories are at risk of closure and that the industry could face instability without timely banking support.

In a press release issued today (3 February), BGMEA said nearly 400 garment factories have shut down over the past year due to rising production costs, falling product prices and a decline in work orders.

Many more factories, the association warned, remain vulnerable.

The industry body said export performance has also weakened, with garment exports falling by 2.43% during the first seven months of the current fiscal year.

Exports declined by an average of 9.43% during October–December 2025 compared to the same period a year earlier.

BGMEA leaders said small and medium-sized enterprises (SMEs) are facing the most severe pressure and may fail to pay workers' wages and festival allowances on time, potentially triggering unrest in the sector.

The concerns were raised during a meeting with Finance Division Secretary Dr Md Khairuzzaman Mozumder today, according to the release.

BGMEA noted that the number of working days in February and March will fall sharply due to the upcoming national election, public holidays and Eid-ul-Fitr. Although factories may operate for only 35 out of 60 days, they will be required to pay nearly double wages in March, including regular salaries, bonuses and advance payments.

To address the situation, BGMEA urged the authorities to expedite the disbursement of pending cash support currently under process with lien banks and Bangladesh Bank. 
The association also called for soft loans equivalent to six months' wages to help factories meet salary, bonus and allowance payments.

The finance secretary assured BGMEA leaders that necessary measures would be taken to address the challenges facing the sector, the release added.