This is an encouraging move for our industrial sector as Prime Minister Tarique Rahman is taking initiatives to reopen the closed factories under the Textiles and Jute Ministry. He discussed the issue with the officials concerned in a meeting on Monday.
No doubt, it is a timely push because our textile and jute sector stands at a critical moment, with around 400 garment factories remaining closed. Additionally, nearly 60 textile spinning and dyeing mills have remained partially or fully shut.
In the case of the jute sector, the problem started in July 2020 when the then government closed all 25 state-owned jute mills under the Bangladesh Jute Mills Corporation (BJMC) due to persistent losses. Though these mills ceased operations for renovation and modernization, they have been lying idle for years.
The good news is that State Minister for Textiles and Jute Shariful Alam has recently hinted at reviving the closed jute mills across the country by leasing them out in a bid to fulfil electoral pledges. These mills are expected to reopen through Public-Private Partnership (PPP) arrangements aimed at encouraging both local and foreign investors.
According to an estimate, over the past 14 months, more than 300 garment units have been shut down. These factories are mainly located in Gazipur, Savar and Ashulia, with tens of thousands of workers losing their livelihoods. Behind these numbers lies a deeper human cost-families pushed into uncertainty and skilled workers forced to abandon their trades.
The causes of this wave of factory closures are not isolated incidents. After the deposition of the Awami League government on August 5, 2024, many ready-made garment factories faced closure due to their owners' connections with the then government.
In addition, the energy crisis, which has worsened further following the Iran war, has disrupted production, raising operational costs to a large extent. Labour unrest, often rooted in delayed wages and poor working conditions, has further destabilised the sector. At the same time, there has been a decline in global orders for our garments following US imposition of sweeping tariffs on its imports.
Against this backdrop, the government's initiative to revive closed factories, particularly through public-private partnerships and leasing arrangements, offers a pragmatic starting point. The plan to bring closed jute mills back into operation is especially significant. Once a pillar of the national economy, the jute sector has long been neglected. Reviving it with modern technology, efficient management, and private investment could diversify exports and reduce overdependence on garments.
However, reopening factories without addressing underlying inefficiencies risks repeating past failures. For instance, state-owned jute mills were closed due to chronic losses, inefficiency and mismanagement. Simply handing them over to private operators will not guarantee success unless transparency, accountability and market-oriented reforms are ensured.
The Prime Minister's latest initiative to reopen closed factories is a step in the right direction, but its success will ultimately depend on how these factories are made viable and profitable.
