BD Can Boost EU Garment Exports with Recycled Products

The council of advisers has directed the finance ministry to take steps to recover funds deposited by various ministries with banks. The finance ministry is tasked with requesting the Bangladesh Bank to engage with banks to retrieve these deposits. A loan of Tk 790 million is being arranged to help a major RMG owner pay workers' salaries amid ongoing labor unrest. The unrest has led to a 15-20% decline in work orders, with some countries allegedly benefiting. A platform known as the Bekar Sramik Shanggha has contributed to the unrest and vandalism.

Bangladesh's garment exports to the U.S. have declined in the first seven months of this year, totaling $4.57 billion, a 10.27% drop from the same period last year. The U.S. imported $43.63 billion worth of garments globally during this period, a decrease of 4.65%. Bangladesh, which held a 9% market share, is now the third-largest exporter to the U.S., down from $7.29 billion in exports last year. China remains the top exporter with $8.75 billion in exports, down 4.22% year-over-year, followed by Vietnam with $8.08 billion, a 1.5% decrease. India's exports fell by 2.21% to $2.85 billion, while Indonesia’s exports dropped 7.86% to $2.28 billion.

The Bangladesh Securities and Exchange Commission (BSEC) has decided not to extend the subscription period for the directors of Alif Industries, who had committed to purchasing shares worth Tk 200 crore. This decision was made during a board meeting yesterday.

Textile millers have urged the interim government to improve gas and power supply to factories, as most are operating at only 30% capacity. They called for an immediate restoration of law and order to ensure smooth garment factory operations and demanded a halt to yarn imports from India through land ports due to improper documentation and quality issues, which harm the domestic textile sector with $22 billion in investments. They suggested allowing imports only through Chattogram port, where quality tests can be conducted.

The export-oriented garment industry in Bangladesh is facing significant challenges due to political instability, labor unrest, and energy shortages, along with port congestion. These disruptions have affected the supply chain, causing delays in production and raising concerns among international buyers. As a result, an estimated 10% of export orders have shifted to alternative countries like India and Pakistan. Many buyers are also reluctant to visit Bangladesh due to security concerns, following recent political turmoil and travel advisories from countries like the U.S.

Bangladesh is facing severe climate-induced disasters, highlighting the urgent need for sustainability. The country, highly vulnerable to environmental crises, must transition rapidly to greener practices, particularly in its critical readymade garment (RMG) industry. Economic and environmental sustainability are interconnected, with climate disruptions threatening economic stability and social fabric.