BGMEA welcomes budget as positive

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Mahmud Hasan Khan Babu has welcomed the proposed national budget for FY2026-27, saying its emphasis on investment promotion and policy continuity sends a positive signal to the country's business community.

In his reaction to the budget unveiled on Thursday, Babu said the government's pre-budget support package worth Tk 60,000 crore, including around Tk 4,100 crore in refinancing facilities, could provide much-needed relief to industries if implemented effectively.

He, however, stressed the need for extending assistance beyond operational factories to include struggling and temporarily closed industrial units, arguing that a broader recovery of the manufacturing sector would require more inclusive support measures.

He said the employment generation remains closely tied to investment and industrial expansion, both of which depend heavily on adequate infrastructure and a conducive business environment.

Highlighting persistent challenges in the energy sector, he noted the outdated power plants and capacity charge obligations continue to raise production costs for businesses. To improve competitiveness, he recommended reforms in the power sector, including a review of capacity charge arrangements, which he said could help reduce electricity costs and ease pressure on manufacturers.

Babu also underscored the importance of major infrastructure projects, such as the Dhaka-Chattogram Expressway, describing them as critical to strengthening the country's investment climate, although their benefits may take time to materialise.