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More than 400 garment factories have shut down in Bangladesh over the three years from July 2023 to June 2026, Commerce Minister Khandaker Abdul Muktadir told Parliament on Thursday.
The minister disclosed the information in response to a question from MP Md Ruhul Amin during the question-answer session of the Jatiya Sangsad. Speaker Hafiz Uddin Ahmed Bir Bikram chaired the session.
Ruhul Amin asked how many garment manufacturing establishments were currently closed, whether a list of the closed factories was available, the reasons behind the closures, and what measures had been taken to develop the garment sector.
In reply, Muktadir said 282 member factories of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and 123 member factories of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) had closed during the period, bringing the total to more than 400.
He said the process of collecting a complete list of the closed factories was still underway.
The minister attributed the closures to several factors, including the global impact of the COVID-19 pandemic, the Russia-Ukraine war, the Israel-Palestine conflict in the Middle East, the ongoing US-Iran war, the global economic downturn, political instability in Bangladesh, a liquidity crisis in the banking sector caused by capital flight, free trade agreements between India and Vietnam and European countries, and reluctance among foreign buyers to place export orders with small and medium-sized factories to facilitate their own monitoring.
Government Measures to Support the Garment Sector
Muktadir said the government had taken several measures to help Bangladesh retain its share of the global apparel market.
These include a 1.50% alternative cash incentive for the export-oriented domestic textile sector in place of bonded warehouse and duty drawback facilities; an additional 0.50% special incentive on top of the existing 1.50% support for textile exporters in the eurozone; an additional 3% benefit for small and medium-sized enterprises in the export-oriented knit, woven and sweater sectors; and a special 0.30% cash incentive for the garment sector.
In response to another question from MP Md Shamsur Rahman Shimul Biswas, the commerce minister said regular market monitoring and supervision were being conducted under the Commerce Ministry’s initiative to keep commodity prices at a tolerable level.
He said special task forces formed at the district level and the Directorate of National Consumer Rights Protection were conducting market drives across the country.
Legal action, including fines, was being taken against overcharging, hoarding, creating artificial shortages, failure to display price lists and other irregularities, he added.
At the same time, the Bangladesh Competition Commission was taking necessary measures against syndicates, cartels and collusive practices to ensure fair competition in the market.
The minister said the government’s market monitoring, supervision and legal enforcement activities would continue and be strengthened as necessary in the public interest and to maintain stability in commodity prices.
