Bangladesh’s garment industry, a cornerstone of its economy, is grappling with a severe crisis triggered by a confluence of political turmoil and natural disasters. The industry, which accounts for over 80% of the country’s export earnings, has been hard hit by violent anti-government protests and devastating floods.
The recent political unrest, culminating in the resignation and departure of former Prime Minister Sheikh Hasina, has disrupted factory operations and led to significant economic losses. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) estimates a shortfall of Tk 6,400 crore (approx Rs 4,500 crore) due to factory closures and communication breakdowns.
Compounding the challenges, the unprecedented flooding in Bangladesh has further disrupted logistics and supply chains. The country’s main port, Chattogram, has been severely impacted, leading to delays in shipments and hindering production schedules.
The crisis has had a ripple effect on the industry, with several factories forced to close and others operating at reduced capacity. The floods have also damaged infrastructure, exacerbating the challenges faced by the garment sector.
Despite the setbacks, industry leaders remain hopeful about the industry’s resilience. They emphasise the need for diversification, exploring new markets, and investing in high-end products to mitigate future risks. The interim government, led by Nobel Peace Prize-winning economist Muhammad Yunus, has prioritised restoring order and stability to address the crisis.
As Bangladesh navigates through this challenging period, the future of its garment industry hangs in the balance. The sector’s ability to recover and maintain its global prominence will depend on its resilience, adaptability, and the government’s effective response to the crisis.
