Bangladesh’s garment and textile industry has come under increasing pressure, with 151 factories from the sector permanently shutting down between August 2024 and June 2026, according to data compiled from industrial intelligence and related agencies.
Of the total 457 factories that closed, 108 were members of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), while 35 belonged to the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA). Eight factories were members of the Bangladesh Textile Mills Association (BTMA), and 19 operated under the Bangladesh Export Processing Zones Authority (BEPZA).
The remaining 287 factories were not affiliated with any trade association.
Industry stakeholders attributed the closures to prolonged shortages of export orders, rising production costs, increasing raw material prices, and persistent uncertainty in global markets.
In response to the situation, the government has announced a range of incentive measures aimed at supporting and reviving distressed factories.
According to BGMEA, 322 factories have already expressed interest in receiving government support. These include 199 fully closed factories and 123 partially closed units, with their eligibility currently under assessment.
Business leaders and analysts said the crisis stems from a combination of factors, including global economic pressures, post-pandemic challenges, limited access to bank financing, energy shortages, inflationary pressures, management weaknesses, and policy uncertainties.
Bangladesh currently has 10,238 factories operating across its industrial zones. Among them, Gazipur recorded the highest number of permanent closures, with 155 factories shutting down out of a total of 2,764 units. Ashulia followed with 124 closures among 1,705 factories, while Chattogram reported 119 closures out of 1,778 factories.
Narayanganj recorded 38 factory closures, followed by Mymensingh with eight, Cumilla with seven, and Khulna with six. No permanent factory closures were reported in Sylhet during the period under review.
“The crisis had evolved from an initial shortage of orders into a broader working capital problem, with many factories unable to open letters of credit for importing raw materials,” said Anwar-ul-Alam Chowdhury Parvez, President Bangladesh Chamber of Industries (BCI).
“Support for distressed factories should be carefully targeted rather than provided indiscriminately. He stressed the need for third-party audits to assess the actual condition of closed factories and to determine whether they possess realistic prospects for recovery before any assistance is extended,” said Dr M Masrur Reaz, Chairman and Chief Executive Officer of Policy Exchange Bangladesh.
Bharat Tex Special Report 2026 
