President Mirza Fakhrul Islam Alamgir on Wednesday stressed the need to address the existing challenges facing the country's readymade garment (RMG) industry.
He made the remarks when a delegation of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), led by its President Mahmud Hasan Khan, paid a courtesy call on him at Bangabhaban.
During the meeting, the delegation apprised the President of the challenges confronting the garment industry and sought his cooperation in resolving them.
The President assured the delegation that necessary measures would be taken to address their concerns.
The government is working to tackle mismanagement and irregularities that have persisted in the garment industry for a long time, he added.
In a statement, the BGMEA said inadequate gas supply was among the major challenges highlighted by its leadership at the meeting.
Most factories are operating at less than 50 per cent of their capacity because of gas shortages, putting international export orders at risk, they said.
High energy tariffs, soaring bank interest rates and wage adjustments have increased overall production costs by nearly 40 per cent over the past three years, according to the trade body.
RMG exports contracted by 1.64 per cent in FY2025-26 and declined by another 1.92 per cent in July of FY2026-27, it said.
The BGMEA also said a decline in capital machinery imports had stalled new investment, while high operating costs and order shortages had forced nearly 400 garment factories to close over the past three years, raising serious concerns over job security.
The trade body also discussed its six-point proposals and strategic policy recommendations aimed at restoring stability in the sector.
The proposals included prompt installation of two additional floating storage and regasification units (FSRUs), withdrawal of all import duties on energy, prioritisation of gas connections for small and medium-sized factories, and provision of low-interest loans for solar power adoption.
The BGMEA also called for fast-tracking the Dhaka-Chattogram Expressway project, constructing temporary expanded cargo sheds at Dhaka airport, and expediting completion of the Bay Terminal and Matarbari Deep Sea Port.
It urged the government to lower interest rates on working capital and trade credit, launch a specialised post-shipment financing scheme, and increase allocations for the Green Transformation Fund (GTF) and Technology Upgradation and Development Fund (TDF).
To improve the ease of doing business, the BGMEA proposed streamlining customs bond audit procedures and reopening yarn imports through the Benapole land port.
For post-LDC trade protection, the apex apparel body called for stronger diplomatic efforts to sign free trade agreements (FTAs) and preferential trade agreements (PTAs) with key trading partners, particularly an FTA with the European Union, to help preserve duty-free market access after Bangladesh's LDC graduation.
Other proposals included allocating land in Gazipur for a modern hospital for garment workers and formulating formal policies for the jhut (garment waste) trade.
