Leaders of Bangladesh’s primary textile sector on Tuesday said that the uncertainty over elections and energy costs was discouraging both local and foreign investment, particularly from firms looking to relocate from China.

Bangladesh Textile Mills Association (BTMA) President Showkat Aziz Russell at a press conference warned that they would withhold fresh investment unless the government announces an election date.

He said that mills facing acute gas shortages could shut down if the government doubles the gas price.

‘We don’t know when the election will take place, but announcing the date—whenever it happens—would help us plan,’ said BTMA President Showkat Aziz Russell.

Russell also cautioned that doubling the gas price to Tk 75 overnight would make Bangladesh’s textile sector unsustainable, deterring new investments.

‘No bank has financed any new projects in the last six months,’ he said, highlighting the liquidity crisis that has left businesses struggling without adequate banking support.

He urged the government to announce the election date to enable businesses to plan their investments effectively.

Russell stressed Bangladesh’s strong potential, noting that the country is a top destination for companies looking to relocate from China.

He called on foreign participants at this week’s textile exhibition not only to showcase their latest innovations but also to consider investing, given the ongoing dollar crisis and challenges in bank financing.

‘But the real concern is that foreign investors will hesitate if they see gas and electricity prices doubling overnight,’ he said.

He urged the government to introduce a long-term, employment-friendly policy—lasting at least 10 years—to provide stability and generate jobs.

Despite always paying government-set gas prices, millers are now struggling with supply shortages, Russell alleged.

‘The government must commit to a clear pricing policy—stating when, by how much, and for how long prices will rise. Without certainty, neither local nor foreign investors will commit to new projects.’

He pointed out the global shift towards manmade fibre, which now accounts for 70 per cent of textile production, contrasting sharply with Bangladesh’s current situation due to a lack of supportive policies.

Citing policy inconsistencies, he recalled how the garment and textile industry thrived under a 25 per cent incentive, without scrutiny over investment sources.

Last year, Bangladesh officially imported $2.7 billion worth of yarn from India as local mills struggled to operate at full capacity. Despite strong demand from global buyers, yarn imports from India are likely to continue, he said.

Russell urged the government to restrict yarn imports to seaports, alleging that yarn is being smuggled in through land ports by underreporting quantities and providing false declarations.

The press conference was held ahead of the country’s largest textile machinery exhibition, set to begin on 20 February at the International Convention City, Bashundhara.

BTMA, in collaboration with Yorkers Service Co Ltd, Hong Kong, is organising the four-day Dhaka International Textile & Garment Machinery Exhibition (DTG) 2025.

The 19th edition of DTG will feature 1,600 stalls and over 1,000 brands from 33 countries, showcasing cutting-edge textile technology.

Leading enterprises from China, Germany, India, Italy, Japan, and Türkiye will participate, reinforcing Bangladesh’s position as a key global player in ready-made garment (RMG) exports.