Bangladesh’s readymade garment sector has incurred a production loss of $400 million due to recent labour unrest that began at the end of August, according to the Bangladesh Garment Manufacturers and Exporters Association.

At a press conference held at the BGMEA headquarters in Dhaka, the president of the trade body, Khandaker Rafiqul Islam, made this statement on Saturday.

He said the apparel industry is now stable following a challenging period and called on the government to implement measures to ensure good law and order within the sector to maintain its competitiveness and drive future growth.

Rafiqul said that the BGMEA board has managed to navigate this disastrous situation with the cooperation of the government, business owners, workers, the Bangladesh Army, and law enforcement agencies.

‘Some buyers have shifted their work orders away from Bangladesh due to the unrest, but we expect they will return as normalcy is restored in the sector,’ he said.

Rafiq said that due to recent labour unrest, 39 affected factories were unable to pay wages for September, leading the BGMEA to request interest-free bank loans with easy terms from the government to support them.

The BGMEA has urged the government to maintain stable law and order in the sector and additionally, they called for the simplification and acceleration of customs and port procedures, particularly to avoid unnecessary delays in loading and unloading goods at Chittagong port, which has been a recurring issue.

In light of the challenges currently facing the industry, BGMEA has requested a temporary halt on the disconnection of factory utilities for the next three months, to help factories maintain operations without disruption.

Moreover, BGMEA expressed concerns over ongoing banking sector reforms, urging the government to ensure that these changes do not negatively impact production and commercial activities within the industry.

BGMEA president also demanded to form a dedicated task force, including representatives from the National Board of Revenue and Bangladesh Bank, to develop business-friendly policies tailored to the sector’s needs.

The trade body also made an urgent appeal for gas supply through cylinders from CNG stations to be permitted, enabling factories to maintain normal production amid the current energy shortages.

The BGMEA also called for stronger measures to ensure that the disposal of jhut and other recyclable waste materials remains free from external interference, enabling factories to manage waste disposal efficiently and sustainably.

The BGMEA president urged the government not to cut the cash incentive for the RMG sector following LDC graduation, referencing examples from various middle-income countries that continue to provide incentives after the graduation.

In response to the significant toll the industry has suffered from prolonged labour unrest, the BGMEA called for stringent measures against those undermining the sector, emphasising the necessity of strict laws and appropriate punishments to prevent future disruptions.

Rafiqul also urged the government to introduce a safe exit policy for entrepreneurs in the RMG sector, as a significant number were struggling to sustain their businesses due to various adversities.

BGMEA senior vice-president Abdullah Hill Rakib and other board members were present at the press conference.