Around 400 ready-made garment (RMG) factories in Bangladesh have temporarily stopped production due to challenges in the banking sector, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said.
The trade body noted that with appropriate policy support, these factories could resume operations, potentially providing jobs for an additional 100,000 workers.
The statement was made during a BGMEA meeting at the BGMEA Complex in Uttara, chaired by President Mahmud Hasan Khan and attended by 70 members. BGMEA Vice President Md Shehab Udduza Chowdhury, Director Faisal Samad, and chairmen of the Standing Committees on Exit Policy and One Stop Sale, Asif Ibrahim and Mozammel Haque Bhuiyan respectively, were also present.
Members at the meeting proposed extending the term for defaulted loans from three to 10 years, citing the current economic difficulties that make short-term repayment challenging. They also called for a more flexible exit policy to allow affected entrepreneurs to leave the business with dignity.
BGMEA members emphasised that policy support from Bangladesh Bank should not be limited to large exporters but should also include small and medium-sized factories to sustain the sector.
