Garment exporters on Tuesday urged authorities to swiftly address the liquidity crisis affecting five to six commercial banks, warning that delays in salary payments and difficulties in opening letters of credit (LCs) could disrupt normal business operations.
BGMEA President Mahmud Hasan Khan said exporters linked to the affected banks are struggling to pay workers on time and to secure LCs for importing raw materials. The banks are also reportedly unable to release export proceeds promptly, further complicating operations for apparel manufacturers.
“If banks fail to disburse salaries on time, labour unrest may rise in garment factories,” Khan said after meeting Bangladesh Bank Governor Ahsan H Mansur at the central bank office.
BGMEA Vice-President Md Shehab Udduza Chowdhury noted that roughly 350 export-oriented garment factories are facing difficulties due to the dollar shortage at these banks. He added that while importers’ demands are being prioritised, exporters who own the dollars are left without access, affecting their ability to settle back-to-back LCs and procure raw materials for production.
The current demand surge comes after the US finalised a 20% tariff settlement, prompting international retailers and brands to place more orders for upcoming seasons. This has increased the need for dollars to import materials and accessories for shipments to the US, Europe, and other markets.
Governor Mansur assured BGMEA leaders that steps would be taken promptly to ease the liquidity constraints, with expectations that the problem could be resolved by the end of this month, Chowdhury said. Exporters stressed that any prolonged dollar shortage during the peak season could significantly impact the sector’s operations and international reputation.
