The Bangladesh Garment Manufacturers and Exporters Association (BGMEA), an organisation of ready-made garment owners, has said that about 400 garment factories have closed in the last three years.
In addition, many more factories are in a financially risky situation, the organisation said. In such a situation, BGMEA has sought policy support from the government in the upcoming national budget.
BGMEA President Mahmud Hasan Khan presented various proposals at a pre-budget discussion meeting at the National Board of Revenue (NBR) building on Sunday.
Apart from the NBR Chairman Md Abdur Rahman Khan, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) president Mohammad Hatem and top leaders of BTMA, BGAPMEA, and BGBA were present in the meeting.
The BGMEA President said that the ready-made garment sector is currently facing unprecedented challenges in the domestic and international arena. Exports are on the decline due to the global recession, geopolitical instability, and tariffs.
Total garment export earnings in February of the 2025-26 fiscal year decreased by 3.73 percent compared to the same period of the previous fiscal year. Especially since August 2025, exports have been on the decline, meaning that factories are not able to operate at a moderate capacity, resulting in a proportional increase in fixed costs and other expenses.
BGMEA’s proposals include - exemption of income tax deduction at the rate of 10 percent on cash assistance to increase the capacity of the garment industry, reduction of tax at source against exports from 1.00 to 0.65 per cent and fixing it for 5 years, providing duty benefits on raw materials for solar PV systems and providing duty benefits on multiple raw materials including ETP, etc.
BGMEA said that currently the interest rate on loans has reached 12 per cent to 15 per cent. In addition, there is a rise in fuel prices and a fuel security crisis. Gas prices increased by 286 per cent during 2017-2023, electricity prices have increased by 33 per cent in the last 5 years. The minimum wage has increased by 56 per cent in 2024. The annual increment has been increased from 5 per cent to 9 per cent in December 2024.
On October 15, 2025, the tariff for Chattogram Port was increased by 41 per cent, and export incentives have been reduced by an average of about 60 percent in stages since July 2023.
The BGMEA has put forward several proposals in the meeting. The proposals include exemption of income tax deduction at the rate of 10 percent on cash assistance to increase the capacity of the garment industry, reduction of tax at source against exports from 1.00 per cent to 0.65 per cent and fixing it for 5 years, providing duty benefits on raw materials for solar PV systems and providing duty benefits on multiple raw materials including ETP, etc.
