Business leaders representing key trade associations in Bangladesh recently held a meeting to address critical issues facing the readymade garment industry of the country.

Chaired by president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), SM Mannan (Kochi), the meeting held at the BGMEA Complex in capital Dhaka, welcomed prominent figures from Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), the Bangladesh Textile Mills Association (BTMA), and the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI).

Among the issues discussed were recent circulars from the Bangladesh Bank. These circulars imposed restrictions on establishing new factories outside designated economic zones and required utility clearance for bank loans.

Leaders expressed concern over geopolitical crises disrupting global trade, asserting that enforcing the circulars could exacerbate the industry’s challenges, impeding growth and deter new investments.

They highlighted ongoing expansions and construction efforts, warning of disruptions if circulars were implemented immediately.

They urged a five-year exemption for the garment industry and emphasised the need for uninterrupted power and gas supply. Additionally, they addressed customs, VAT, and income tax issues, urging NBR to streamline processes, to achieve the $100 billion export target by 2030.

Proposals included reducing the tax at source from 1 per cent to 0.5 per cent to enhance competitiveness.

The discussions also covered Bangladesh’s LDC graduation and strategies for post-graduation competitiveness.

Emphasis was laid on policy support to attract investments for economic growth even as the meeting underscored the garment industry’s pivotal role in Bangladesh’s economy and the need of collaborative efforts to overcome challenges and sustain growth in the dynamic global landscape.

Fibre2Fashion News Desk (DR)

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