Economy
BGMEA Urges Govt to Sustain Policy Support for Garment Industry Amid Global Challenges
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has called on the government to persist in providing policy support to uphold the competitiveness of the ready-made garment industry amidst global economic challenges.
During a meeting at the Secretariat in Dhaka on Sunday (4 February), a delegation led by BGMEA President Faruque Hassan conveyed this message to Finance Minister Abul Hassan Mahmood Ali, according to a press release.
The delegation, including former BGMEA president Md Siddiqur Rahman, BGMEA Senior Vice President SM Mannan (Kochi), Bangladesh Textile Mills Association (BTMA) President Mohammad Ali Khokon, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Executive President Mohammad Hatem, and Federation of Bangladesh Chambers of Commerce & Industries (FBCCI) Vice President Md Munir Hossain, met with Commerce Ministry Senior Secretary Tapan Kanti Ghosh and Finance Division Secretary Md Khairuzzaman Mozumder.
Expressing congratulations to Finance Minister Abul Hassan Mahmood Ali for taking on the responsibilities of this crucial ministry, the meeting primarily addressed the urgent issues faced by Bangladesh’s ready-made garment industry.
Discussions centered around the impact of the global economic situation on the RMG industry, LDC graduation, and its consequences for Bangladesh’s trade.
BGMEA President Faruque Hassan outlined the significant challenges affecting the RMG industry, citing the repercussions of the Russia-Ukraine war, which has led to considerable inflation in the United States and European Union countries. This inflation has resulted in a decrease in apparel exports to key markets for Bangladesh.
Highlighting that a decline in garment exports would adversely affect Bangladesh’s foreign reserves, as the RMG industry constitutes 84% of the country’s total export earnings, he also noted the industry’s efforts to implement a new minimum wage for garment workers amid escalating energy and raw material prices.
In this demanding environment, the sudden government decision to reduce cash incentives for garment shipments and other export-oriented products is anticipated to negatively impact exports and the overall economy, Faruque Hassan asserted.
BGMEA President Faruque Hassan urged the government to reconsider this decision and maintain the previously established policy support through cash incentives.
Finance Minister Abul Hassan Mahmood Ali reassured the delegation that the government would thoroughly examine the issue of cash incentives to provide support to the RMG industry.
Expatriate Bangladeshis sent approximately US$ 2.11 billion in remittances during the first 28 days of September in the fiscal year 2024-25, according to data released by Bangladesh Bank on 29 September.
Of this total, state-owned and specialised banks handled $679.10 million, while private banks received $1.43 billion in remittances.
Chief Adviser to Bangladesh’s interim government, Professor Muhammad Yunus, has vowed to expedite reforms and hold elections swiftly. Yunus, who recently assumed the role after the collapse of Prime Minister Sheikh Hasina’s 15-year administration, expressed his commitment during an interview with Tokyo-based news outlet NHK WORLD in New York on Sunday. He was attending the United Nations General Assembly at the time.
Following mass student-led protests that ended Hasina’s long-standing rule in August, Yunus stepped in as the leader of the caretaker government. Known for founding Grameen Bank, an institution providing microloans to the underprivileged, Yunus, along with the bank, earned the Nobel Peace Prize in 2006 for his efforts in poverty alleviation.
During the interview, Yunus emphasized that the interim government’s primary mission is to implement reforms promptly and ensure elections are held as soon as the groundwork is complete. He underscored the importance of success, stating, “Failure is not something that we can accept.”
Addressing the pivotal role of students in the ousting of the Hasina administration, Yunus acknowledged the sacrifices made by young people, referring to their involvement as part of a “revolution.” He highlighted his intention to engage the younger generation in shaping policy.
Furthermore, Yunus called for continued support from Japan, Bangladesh’s largest donor, during this crucial transition period. He stressed that Japan’s assistance is vital to stabilizing Bangladesh’s economy and fostering a democratic foundation in the nation.
Syeda Rizwana Hasan, the Adviser for Environment, Forests, and Climate Change, announced today that steps will be taken to restrict the use of polythene shopping bags to safeguard future generations.
Starting from October 1, polythene bags will be banned in shopping malls, followed by a ban in kitchen markets from November 1.
“Everyone must take responsibility and stop using polythene voluntarily. Action against polythene producers will begin from November 1,” Rizwana Hasan stated during a seminar.
The Department of Environment (DoE) organized the seminar to raise public awareness about alternatives to banned polythene bags.
Rizwana Hasan highlighted that the restriction on polythene will be executed in phases according to legal provisions, and discussions with shopping centers and store owners are ongoing to ensure a smooth transition.
She also announced plans to make the government secretariat a plastic-free zone by December.
Other speakers at the seminar included Environment Secretary Dr. Farhina Ahmed, DoE Director General Dr. Abdul Hamid, Director Rajinara Begum, President of the Shop Owners Association Muhammad Helal Uddin, and Md. Arifur Rahman Bhuiyan, Assistant Professor of Environmental Science at BUP. They discussed the harmful effects of polythene and the need for alternative products.
Earlier, Rizwana Hasan inaugurated a fair showcasing eco-friendly alternatives to polythene bags and visited 24 stalls. The fair featured products from government and private entrepreneurs, including reusable bags, jute bags, paper bags, and items made from bamboo and cane.
