The recent 10 percent increase in electricity tariffs is likely to raise production costs and undermine the competitiveness of Bangladesh's export-oriented industries, according to BGMEA Vice President and Amity Design Ltd Managing Director Md Shehab Udduza Chowdhury.
He expressed concern over the impact of higher electricity costs on the country's readymade garment sector.
"Higher energy costs will inevitably increase manufacturing expenses," he said. "Exporters may be forced to raise product prices, which could weaken Bangladesh's competitiveness in the global market."
He noted that the tariff increase comes at a difficult time for manufacturers already facing high lending rates, global economic uncertainty and changes in international trade policies.
"Electricity prices have been increased at a time when the industrial sector is already grappling with multiple challenges," he said.
Chowdhury also pointed to increasing competition from regional markets, particularly India, as well as concerns over potential trade-related measures being discussed internationally.
According to him, the latest tariff adjustment will place an additional burden on businesses and may negatively affect export growth.
He warned that many factories are already operating below full capacity and that further increases in operating costs could disrupt production or force some businesses to suspend operations.
The BGMEA vice president said the association would review the decision with its members before issuing an official response.
He urged policymakers to consider industry-friendly measures that would help maintain competitive production costs and support export growth.
"Reconsidering the electricity tariff hike would help protect industrial growth, preserve export competitiveness and contribute positively to the overall economy," he said.
