The textile and garment industry—one of the country’s key export-driven sectors—is currently facing an existential crisis. A severe shortage of gas, the main driver of production, has nearly paralyzed mills and factories.
With production capacity diminishing, industrialists are increasingly stuck in a cycle of losses.
Industry associations representing the ready-made garment (RMG) sector warn that unless the situation is addressed swiftly, investments in these sectors will be destroyed. The gas crisis has pushed them to the brink. Working capital has shrunk significantly.
Amid this crisis, top leaders of the country’s leading industrial and business organizations held a joint press conference on Sunday at the Gulshan Club to raise these concerns.
Participants included the Bangladesh Textile Mills Association (BTMA), BGMEA, BKMEA, BCI, ICCB, and BPBGMEA. At the conference, speakers labeled the country’s overall industrial policy and gas supply management as "anti-industry."
BTMA President Shawkot Aziz Russell said, “We are being strangled through anti-industry activities. If this conspiracy continues, not only the industry but also the entrepreneurs will be wiped out.”
He expressed concern, saying, “Many factories may not be able to pay wages and bonuses to workers during the upcoming Eid. It’s not just the gas shortage—high-interest rates on bank loans, electricity crisis, inconsistent monetary policy, and global trade disruptions have all created extreme uncertainty for the industrial sector.”
The gas crisis has reportedly reached its peak in recent weeks. According to BTMA, many factories have completely halted production due to the lack of gas. Garment manufacturers are failing to deliver products on time, forcing them to send shipments by air at high costs—leading to losses of millions of taka on each shipment.
Due to the gas shortage, many mills and factories are operating at only 40-50% of their capacity. This has nearly doubled production costs, making it difficult to remain competitive in the market.
At the press conference, it was revealed that despite promises of better gas supply, prices have been raised by over 300% in recent years. Industries have also had to pay additional security deposits.
Yet, the gas supply situation has not improved. In fact, gas allocation for industries has decreased under the pretext of ensuring supply for power generation and fertilizer production.
It was stated that the daily supply of gas in the Titas Gas network alone has dropped by 100 million cubic feet. Additionally, the absence of EVC meters means actual usage data is unavailable, and the industrial sector is being penalized under the pretext of "system loss."
Business leaders said that with working capital squeezed, repaying bank loans has become nearly impossible. This is creating pressure on the financial sector and raising doubts about the ability to pay workers’ wages and benefits. Some fear worker unrest if salaries are delayed.
They also mentioned that many textile and garment factories have begun laying off workers, with no new hires taking place. Without production, there can be no employment—yet this sector alone employs about 4 million workers.
Entrepreneurs emphasized that the textile sector contributes nearly 85% of the country’s export earnings. If this sector collapses, the foreign currency reserves will also take a major hit.
While the government is already struggling with foreign debt and reserve shortages, a drop in export earnings will put even more pressure on the macroeconomy. Furthermore, millions of families dependent on this sector will be pushed to the edge.
Speakers added that due to global geopolitics and tariff wars, many international companies are considering relocating their production. Bangladesh had the potential to attract this investment.
However, the gas crisis, banking instability, and policy uncertainty are driving foreign investors away. As a result, this window of opportunity is also closing.
They pointed out that despite several letters sent to the current government formed after the July-August protests, no effective solution has been provided. Instead, gas prices have been raised again, worsening the crisis.
The industrial organizations put forward three major demands: Immediate prioritization of uninterrupted gas supply to industries; Suspension of the recent gas price hike and formulation of a sustainable pricing policy through stakeholder consultations; and Adoption of medium- and long-term plans to resolve the gas crisis.
Additionally, they demanded an end to system loss, disconnection of illegal gas connections, withdrawal of VAT, and that Petrobangla, BERC, and Titas Gas operate in the public interest rather than for profit.
