Geopolitical instability, US tariffs pose threat to garment industry: BGMEA president
To navigate these hurdles and facilitate the expansion of the RMG industry, the BGMEA president sought Bida's cooperation
Geopolitical instability and counter-tariffs imposed by the United States are presenting significant challenges to Bangladesh's garment industry, according to BGMEA President Mahmud Hasan Khan Babu said today (30 June).
"Global geopolitical instability, US counter-tariffs, India's cancellation of transshipment, high bank interest rates, and frequent price hikes of gas and electricity have created major challenges for the garment industry," Babu said during a courtesy call on Chowdhury Ashiq Mahmud Bin Harun, Executive Chairman of the Bangladesh Investment Development Authority (Bida) and the Bangladesh Economic Zones Authority (Beza).
To navigate these hurdles and facilitate the expansion of the RMG industry, the BGMEA president sought Bida's cooperation.
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Request for land allocation for small and medium factories in Chittagong
The BGMEA president also requested the Bida chief to allocate land for the small and medium garment factories scattered in different parts of Chattogram.
BGMEA sources said, the executive chairman of Bida took the request of BGMEA boss into cognisance and informed that a committee with representatives of BGMEA and Bida would be formed immediately, which would present an action plan within a week.
BGMEA urges investment in renewable energy and recycling products
The meeting also discussed the importance of investment in renewable energy and environmentally friendly production in the garment industry.
The BGMEA boss expressed the view that it is necessary to develop a roadmap in this regard and provide technical and financial support to the factories to encourage energy conversion by installing solar panels in the garment factories.
Seeking cooperation from Bida in recycling waste, the BGMEA boss said, "There is huge potential for waste recycling in the garment industry. To encourage investment in this sector, it is necessary to formulate appropriate policies, make the sector tax-free, and bring informal workers under supervision."
Request to simplify the loan classification and bond audit process
During the meeting, BGMEA and Bida heads discussed the Bangladesh Bank's loan classification policy.
BGMEA President Babu requested to increase the current 3-month grace period to 6 months, citing the reason that "sometimes entrepreneurs fail to pay installments on time due to financial crisis and are subjected to loan classification."
Terming the bond audit process time-consuming, harassing and a serious obstacle to the daily activities of export trade Mahmud Hasan Khan Babu requested the Bida's executive chairman to nominate 20 institutions for bond audit through outsourcing to ensure transparency and speed of this process.
Babu also requested the BIDA chief to take the initiative to establish a separate ministry for textiles and apparel sector.
