Garment manufacturers in Bangladesh have raised serious concerns over disruptions in their financial operations caused by liquidity shortages in several troubled banks, warning that the crisis is threatening the sector’s stability and workers’ welfare.

A delegation from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), led by president Mahmud Hasan Khan, met Bangladesh Bank governor Ahsan H Mansur at the central bank headquarters on Tuesday to discuss the mounting challenges.

During the meeting, BGMEA president explained that despite the steady inflow of export proceeds, five struggling banks have failed to release payments to exporters on time and are unable to open new letters of credit.

He warned that this financial bottleneck has left many factories in distress, disrupting regular operations and exports, and hampering timely payment of workers’ wages and allowances—risks that could fuel labour unrest and pose law-and-order challenges.

Khan emphasised that the ongoing crisis is tarnishing Bangladesh’s international reputation and eroding buyer confidence at a critical time for the industry.

BGMEA leaders expressed deep concern that, without immediate intervention, many companies could become sick industries, triggering mass layoffs and increasing vulnerability in the country’s largest export sector.

Governor Mansur assured the delegation that the central bank would address their concerns promptly.

Temporary arrangements would be made to ensure timely disbursement of exporters’ dues, meeting immediate financial needs, while longer-term solutions are being planned to permanently resolve the problem.

Other BGMEA leaders present included vice-president Md Shehab Uddoza Chowdhury and directors Mohammad Abdur Rahim, Fahima Akter, and ABM Shamsuddin, among other industry leaders.