The Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) has formally requested the Finance Division to expedite the release of Taka 7,000 crore in outstanding cash assistance for exports ahead of the Eid-ul-Fitr celebrations. BKMEA President Mohammad Hatem made the appeal in a letter addressed to Finance Secretary Md Khairuzzaman Mozumder on Tuesday, 4th March.
In his correspondence, Hatem noted that claims for approximately Taka 7,000 crore in export subsidies or cash assistance have been submitted to the Bangladesh Bank for the financial year 2024-25 as of March 2025. He urged the Finance Division to take immediate action to disburse the funds, ideally by the 15th of Ramadan, emphasising that any delays could severely disrupt the export sector.
The letter highlighted the challenging political landscape and ongoing instability within the RMG industry, which have posed considerable obstacles for industrial operators. Hatem pointed out that prolonged labour unrest in various industrial zones has led to significant production disruptions, resulting in factory closures and increased production costs.
To maintain buyer confidence in Bangladesh’s export industry, RMG entrepreneurs have been compelled to accept work orders at prices that often fall below actual production costs. Despite a rise in orders, many factories are grappling with cash shortages.
Hatem also raised concerns about the mounting pressure of salary and Eid bonus payments, warning that failure to meet these obligations could trigger renewed labor unrest. He stressed that government support is critical for ensuring stability and continuity in production.
Copies of the letter have been sent to various officials, including the finance adviser, commerce adviser, labour and employment adviser, the governor of Bangladesh Bank, and the president of the Bangladesh Employers’ Federation.
In a related note, a recent report from the commerce ministry indicated that around 500 RMG factories are at risk of unrest over wage and festival allowance payments as Eid approaches. The assessment identified 36 factories as particularly vulnerable and potentially in need of financial assistance to ensure timely payment of wages and bonuses before the holidays.
