Gas crisis, bureaucratic hurdles holding back foreign investment: BKMEA chief

Bangladesh Knitwear Manufacturers and Exporters Association President Mohammad Hatem has urged the government to urgently address the worsening gas crisis and bureaucratic hurdles, saying the two issues are discouraging foreign investors from coming to Bangladesh.

Speaking at the inauguration of the four-day 13th Bangladesh Yarn, Fabrics & Accessories Show 2026 and Bangladesh TEXCHEM Expo 2026 at the International Convention City Bashundhara in Dhaka today (13 August), Hatem said foreign investors had identified energy shortages and excessive certification requirements as major barriers to investment.

More than 150 local and international companies are showcasing yarn, fabrics, garment accessories and textile chemicals at the expo.

"Foreign investors have to obtain so many certifications and run to so many offices that they become frustrated," Hatem said.

He said a Chinese overseas business leader he met several days ago had identified the gas crisis and bureaucratic hurdles as the two main obstacles preventing Chinese investors from coming to Bangladesh.

Hatem urged the government to simplify the investment process by allowing an agency such as the Bangladesh Investment Development Authority to provide or coordinate all necessary approvals and certifications under a single umbrella.

He also urged the government to provide incentives where necessary to attract investment from China and Japan, particularly in textile backward linkage industries.

Concerns over gas crisis

Hatem raised concerns over the worsening gas shortage, saying the situation had deteriorated despite assurances that the crisis would improve by 10 August.

"Unfortunately, since the 10th, the crisis has become even deeper. In most places, there is almost no gas," he said.

The BKMEA chief said the industry could not understand why the situation had worsened despite efforts to resolve problems related to the country's floating storage and regasification units.

Man-made fibre offers investment opportunity

Hatem called for greater efforts to attract Chinese and Japanese investment in Bangladesh's textile backward linkage sector, particularly man-made fibre.

He said Bangladesh had a "huge gap and opportunity" in man-made fibre and fabric production, while the country's apparel industry offered investors a ready domestic market.

"If they invest in backward linkage and man-made fibre production, they will get a huge ready market in Bangladesh."

Such investment would also bring advanced technology and technical expertise, areas where Bangladesh still faces shortages, he added.

Hatem also stressed the importance of retaining existing investors and jobs.

"Existing employment is being lost. If we can retain existing employment, new employment and investment will also come," he said.