Mohammad Ali Khokon, President of the Bangladesh Textile Mills Association, revealed that the country’s primary textile sector experienced a notable absence of new investments in 2023.
This downturn is attributed to a combination of internal and external factors, notably a severe energy shortage within the country and a global economic slowdown.
Speaking at a press conference in Dhaka, Khokon emphasised that, to his knowledge, there were no new investments in capital machinery in the country’s textile sector throughout 2023 even as he highlighted the prolonged shortage of gas in Bangladesh’s textile sector, leading to a 50 per cent reduction in production in 2022.
He further noted that, in the first month of 2024, production has further declined to 40 per cent, with gas supply interruptions affecting various industrial belts.
Expressing concern, Khokon pointed out the irony of the Government inviting foreign investors to contribute to special economic zones while struggling to provide a consistent gas supply.
He warned that without addressing this issue, the country might not attract new investments.
He called for the reinstatement of the gas price at Taka 16 per cubic meter and criticized the government for breaching its commitment to ensure uninterrupted energy supply to the industry following the gas price hike in January 2023, which saw a substantial 88 per cent increase.
