BGMEA Seeks Government Support as Bangladesh’s Garment Export Growth Faces Headwinds
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has called for additional government support to help the country’s ready-made garment (RMG) sector navigate mounting challenges amid slowing export growth and rising production costs.
While welcoming the government’s proposed budget and its focus on maintaining macroeconomic stability, business facilitation, and long-term policy consistency, BGMEA emphasized that targeted measures are needed to safeguard the competitiveness of Bangladesh’s largest export industry.
The association praised the government’s vision of transforming Bangladesh into a trillion-dollar economy by 2034, highlighting increased investments in education, healthcare, and social protection as positive steps toward sustainable economic development.
The national budget has set an economic growth target of 6.5% for the upcoming fiscal year and identified key priorities including investment-led job creation, industrial expansion, financial sector stability, deregulation, and energy security. BGMEA believes these initiatives will support industrial development, trade growth, and the country’s smooth transition from Least Developed Country (LDC) status.
However, the garment industry continues to face significant pressure. According to BGMEA, apparel export earnings have declined by 3.41% during the current fiscal year, while average unit prices have fallen by 1.55%. At the same time, the opening of back-to-back letters of credit (LCs) for raw material imports has decreased by 7.93%, reflecting weaker business activity across the sector.
The challenging environment has contributed to the closure of approximately 400 garment factories over the past three years, raising concerns about employment and industrial sustainability.
To address the crisis, BGMEA has urged the government to introduce several policy support measures, including a reduction in withholding tax, lower income tax on cash incentives, reasonable corporate tax rates, elimination of double taxation in subcontracting operations, and reduced import duties on inputs used in man-made fibre-based apparel production.
The association stressed that the RMG sector remains the country’s leading source of foreign exchange earnings and a major employer, supporting millions of livelihoods across Bangladesh.
BGMEA also highlighted the importance of reducing business costs, ensuring uninterrupted and affordable gas and electricity supplies, and simplifying customs and port procedures to maintain global competitiveness, particularly as Bangladesh prepares for its post-LDC graduation era.
Earlier this year, the organization sought government intervention to address ongoing gas and electricity shortages, which have increased raw material and transportation costs, placing additional pressure on manufacturers.
Industry leaders believe that timely policy support and infrastructure improvements will be critical to restoring export momentum and strengthening Bangladesh’s position in the highly competitive global apparel market.