The garment industry in Bangladesh, a linchpin of the nation’s economy, is facing unprecedented challenges due to the ongoing political turmoil.

The current crisis in Bangladesh’s garment industry and port operations underscores the fragility of supply chains in the face of political instability.

The garment sector, which employs millions and is a critical source of foreign exchange, is particularly vulnerable to such disruptions. The financial losses and operational challenges highlighted by industry leaders reflect the broader economic impact of the turmoil.

The call for a suspension of loan repayments and interest is a necessary step to prevent further financial distress. However, the support of international buyers and brands is crucial for the industry’s recovery. “Understanding and cooperation from global partners can help stabilise the sector and ensure its long-term sustainability,” say The Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

Mohammad Hatem, executive president of the BKMEA, has called for a suspension of all loan instalments and interest payments for the next six months, citing the dire financial strain on the industry.

He further added, they also seek for the July salary as a loan since they weren’t able to work the entire month. They ask for the loan at 2 per cent interest for payment of salary for the month of July. This loan should be for one year, and will repay it in installments every month.

“The garment export sector has incurred a loss of US $ 1 billion due to the closure of industries,” said BGMEA President SM Mannan Kochi.

“The supply chain completely collapsed during this period, workers did not receive their wages, and interest on bank loans will still need to be paid later. The overall impact has been devastating,” added Kochi.

The BGMEA is urging global apparel buyers and brands to be sympathetic to its readymade garment (RMG) suppliers, who have been forced to suspend production due to the current circumstances in the country. The association hopes that international partners will understand the situation and support the industry during this critical period.