BGMEA leaders meet Finance Minister

Leaders of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) paid a courtesy call on Finance Minister Amir Khasru Mahmud Chowdhury at the Secretariat yesterday discussing key challenges facing the country's apparel sector and possible policy support measures.

The BGMEA delegation, led by its President Mahmud Hasan Khan, included Senior Vice-President Inamul Haq Khan; Vice-President (Finance) Mijanur Rahman; Vice-President Vidiya Amrit Khan; Vice-President Md. Shehab Udduza Chowdhury; and Directors Shah Rayeed Chowdhury, Faisal Samad, Mohammad Abdus Salam, Nafis-Ud-Doula, Majumdar Arifur Rahman and Dr. Rashid Ahmed Hossaini.

At the outset, BGMEA President Mahmud Hasan Khan greeted the Finance Minister with flowers on behalf of the BGMEA Board and the apparel industry community.

During the meeting, the BGMEA President said that as a seasoned and successful businessman, the Finance Minister has a deep understanding of the challenges faced by entrepreneurs. In a cordial atmosphere, the two sides held detailed discussions on the current fragile situation of the apparel sector and ways to overcome the prevailing difficulties, said a press release today.

Expediting release of pending cash incentives:

The BGMEA president informed the minister that applications for cash incentives from numerous factories remain stuck due to complexities in lien bank and Bangladesh Bank audit procedures. In the current fiscal year 2025–26, nearly Taka 5,700 crore in incentives for the textile and apparel sector remain unsettled, placing many enterprises under severe financial strain and adversely affecting export capacity.

BGMEA leaders requested the immediate release of the pending incentive funds and simplification of the disbursement process. They proposed that, instead of waiting for quarterly disbursements as per the existing provision, payments should be released upon submission of applications.

The Finance Minister acknowledged the rationale behind the demand and expressed positive consent to expedite the release of the outstanding funds. He also assured that the overall process would be modernised and made more streamlined.

Loan rescheduling and working capital support:

BGMEA Vice-President Md. Shehab Udduza Chowdhury raised a technical issue regarding loan rescheduling. He said that in an effort to maintain non-performing loan (NPL) ratios, scheduled banks often reschedule loans but do not provide the necessary working capital to the concerned factories. As a result, factories fail to resume full operations, hampering loan repayment.

He proposed transforming the situation into a "win-win" arrangement, whereby banks would extend working capital alongside rescheduling, enabling factories to operate and repay loans effectively. The Finance Minister agreed with the proposal.

Ease of doing business and cost reduction:

BGMEA leaders emphasised that in the face of intense global competition, ensuring ease of doing business and reducing operational costs have become imperative for Bangladesh to sustain its position in the international market. They sought special policy support to remove bottlenecks at customs, ports and other administrative levels and to ensure a more investment-friendly environment.

The Finance Minister instructed BGMEA leaders to submit within one week a comprehensive set of specific recommendations identifying existing barriers and proposing practical solutions to facilitate business operations. The BGMEA President assured the minister that a realistic and actionable proposal aimed at enhancing industry competitiveness would be submitted to the government at the earliest.

Describing the apparel industry as the backbone of the national economy, Finance Minister Amir Khasru Mahmud Chowdhury reiterated the government's commitment to providing full policy support for the sector's sustainable growth.