RMG leaders seek stable power and energy supply, policy support to achieve $100b export target

In a bid to propel Bangladesh's ready-made garments (RMG) exports to the $100 billion mark, industry leaders have urged the government to ensure uninterrupted power and energy supply, along with robust policy support and investment in manpower skill development.

Members of the Bangladesh Garment Manufacturers and Exporters Association's (BGMEA) Sammilito Parishadm, one of the two panels vying for BGMEA leadership for the 2025-27 term in the upcoming election slated for later this month, made the call today (21 May) during a manifesto unveiling and introduction ceremony at a Dhaka hotel.

The election, scheduled for 28 May, will see BGMEA members voting to elect 35 directors who will steer the apex RMG trade body for the next three years.

Md Abul Kalam, owner of Chaiti Group and panel leader of Sammilita Parishad, unveiled a 12-point manifesto at the event, highlighting the challenges posed by ongoing power and energy crises, geopolitical tensions, and global economic uncertainty.

He emphasised that the sector is navigating one of its most difficult phases and needs urgent government intervention to remain competitive.

Addressing the programme, Abdullah Hil Rakib, managing director of TEAM group, said,

"Globally, man-made fibres account for 76% of the RMG trade. The market is huge. It holds big prospects for us. If we get policy support from the government to promote man-made fibre and a stable power and energy supply, there is an opportunity to reach $100 billion in RMG exports," Rakib said.

Calling for the conversion of the country's "cotton-focused economy" to a man-made fibre-based economy, he said, "Man-made fibre only covers 16% of the RMG production in Bangladesh, whereas 42% in China and 46% in Vietnam."

Rakib criticised the Bankers Association of Bangladesh, accusing the organisation of charging "high interest rates". "The way the Bankers Association slaughter us- we label it as working for 'two Bs'. One for bankers, another for buyers."

"We need an affordable interest rate and competitive RMG price from buyers," he added.

Speaking about the recently unveiled US-led global tariff war, he said, "We are feeling threatened because of the tariff war. Where will our industry go if there is any obnoxious tariff appearing before us?"

Also addressing the event, former BGMEA president Faruk Hasan urged the government to defer the time of Least Developed Country (LDC) graduation and increase the transition period for several years.

"We still believe that, considering our export and financial condition, we should push back our LDC graduation for several years. We will get more benefits if the LDC graduation is delayed," he said.

Speaking to The Business Standard after the event, Faruk Hasan said he wants the LDC graduation to be delayed till 2031-2032.