Govt working to finalise National Circular Textile Strategy by year-end

The Ministry of Commerce has reaffirmed its commitment to finalising the National Strategy on Circular Economy for the Textile and Ready-Made Garment (RMG) sector by the end of 2026.

The announcement came during a national stakeholder consultation held in Dhaka yesterday (23 April), aimed at transitioning the country's largest export sector toward a climate-neutral and sustainable manufacturing model, according to a press release.

Organised by the United Nations Industrial Development Organization (Unido) and the Ministry of Commerce, the event focused on the draft strategy developed under the "Switch to Circular Economy Value Chains" (SWITCH2CE) project.

As the world's second-largest garment exporter, Bangladesh generates significant pre-consumer waste, which experts believe presents a major opportunity for the country to lead in circular textiles through scaled recycling and innovative business models.

Speaking as the chief guest, Abdur Rahim Khan, secretary (in charge) of the Ministry of Commerce, noted that Bangladesh is at a pivotal moment as it prepares for graduation from Least Developed Country (LDC) status.

He asserted that adopting a robust circular strategy is essential to safeguarding competitiveness and meeting the evolving expectations of trade partners like the European Union.

He called upon industry leaders to act as frontrunners in implementing the strategy, which the government aims to validate through technical reviews within this year.

Abdur Rahim Khan stated "Bangladesh stands at a pivotal moment as we prepare for our graduation from Least Developed Country (LDC) status and respond to evolving expectations from key trade partners such as the European Union.

"In this context, developing and adopting a robust national strategy on circular textiles is not only timely, but essential to safeguarding our competitiveness and ensuring sustainable growth of our textile and garment sector," he said.

"Through a comprehensive process, and by actively engaging with Unido and other stakeholders across both the public and private sectors, we are working to finalise a strategy that is inclusive, practical, and aligned with international standards."

"The government is committed to finalise the strategy through stakeholders dialogues, validation and technical review within this year. We call upon industry leaders and private sector partners to act as frontrunners in the implementation of this strategy," he clarified.

Hubert Blom, programme manager at the EU Delegation in Bangladesh, emphasised that circularity is a priority for Europe, Bangladesh's largest import market.

He noted that the EU is eager to collaborate through knowledge-sharing and access to finance to help the RMG sector withstand global competitive pressures, the release added.

Unido Chief Technical Adviser Mark Draeck added that such a framework provides a vital policy signal to instil confidence across the industry and enable the scaling of investments.

Leading industry bodies, including the BGMEA, BKMEA, and BTMA, expressed a unified commitment to the transformation.

Representatives stated that advancing circularity is no longer optional but essential for meeting international regulatory expectations.

They highlighted that a coordinated national strategy would allow manufacturers to better invest in recycling technologies and improve resource efficiency.

The SWITCH2CE project, co-funded by the EU and the Government of Finland, is led by Unido in collaboration with Chatham House and the European Investment Bank.

In Bangladesh, the project provides technical support to help the textile sector adopt circular practices while the Ministry of Commerce provides strategic leadership at the national level.