5 decades of govt policy favoured loan defaulters: Employers' Federation president
Over the last 50 years almost all circulars issued by the Bangladesh Bank have favoured bad borrowers, President of the Bangladesh Employers' Federation Fazlee Shamim Ehsan said today (1 December).
"Does it mean that the government encourages bank defaults?" Ehsan said at a seminar titled "The Potential of Bangladesh's RMG Sector: The Way Forward," organised by the BKMEA during the Global Sourcing Expo 2025 at the Bangladesh–China Friendship Exhibition Centre in Purbachal.
Ehsan, also a garment industry owner, said, "Banking policies should be formulated to support good borrowers."
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IFIC Bank Managing Director Syed Mansur Mustafa said businesses which take loans must repay them; otherwise, when some borrowers default, the pressure falls on others.
At the event, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Mohammad Hatem warned that the country's apparel industry may face a crisis similar to the one previously seen in the jute sector due to recent labour law amendments.
He said, "Through the changes in labour laws for this sector, it appears that the seeds of destruction have been sown, just as happened in the jute sector, which will become visible over time."
"We are ready to hand over the keys of our factories within a year to them. We hope they will be able to run the industry as well as they run the government," he added.
Syeda Rizwana Hasan, adviser to the Minister of Environment, Forest and Climate Change, and the Minister of Water Resources, joined the seminar virtually as the chief guest.
She, however, disagreed with the BKMEA president regarding the concerns over labour law amendments.
She said Bangladesh's apparel industry has established a strong international brand image that must be protected.
"It would not have been difficult to adapt to the labour law changes. This situation should not have arisen," she added.
She stressed that the sector must remain sustainable.
Md Abdur Rahim Khan, additional secretary at the commerce ministry, said the narrowness of Bangladesh's export basket becomes evident during trade negotiations.
However, he expressed hope that after LDC graduation the country will be able to navigate global markets, although exports to some destinations may face tariffs.
