Factories across Bangladesh, particularly in the textile sector, are facing significant challenges in reopening after widespread vandalism and destruction during the July uprising and subsequent political unrest. These closures have left nearly 100,000 workers without jobs and have created a ripple effect throughout the industry.
Many textile and garment factories were either vandalised, set ablaze, or ransacked amid the chaos that followed the political upheaval in August last year. As a result, these production units have been non-operational for over seven months, leading to severe financial crises. With banks reluctant to provide loans or open letters of credit (LCs), factory owners are struggling to secure the necessary working capital to restart operations.
Notably affected are major players, including Beximco Group, which operates 14 textile and garment factories. The political fallout has severely impacted the owners of these businesses, many of whom are either imprisoned or have fled the country due to their connections with the previous Awami League government.
Beximco Group is set to make final wage and service benefit payments totaling Taka 525.46 crore to over 31,000 workers. The group’s Vice-Chairman, Salman F Rahman, is currently incarcerated on charges that include murder and graft, further complicating the company’s ability to resume operations and access financial support.
Khalid Shahrior, the head of HR and compliance for Beximco’s textile division, emphasised the urgency of reopening factories to protect the livelihoods of workers and their families, yet the government has not granted permission for operations to resume.
While some factories have managed to reopen, many others remain closed due to either the owners’ political ties or financial burdens. AHM Shafiquzzaman, Secretary to the Ministry of Labour and Employment, confirmed that the government has provided Taka 127 crore in initial financial support to a handful of companies, but strict loan repayment pressures could lead to asset sales if debts are not settled.
Brigadier General (Rtd) M Sakhawat Hussain, an adviser to the Ministry of Labour and Employment, acknowledged the challenges ahead, stating that while the ministry is committed to assisting affected factories, the sheer scale of outstanding loans presents a significant barrier to providing widespread financial support.
