Apparel exporters seek swift action on pending cash incentives: BGMEA

Leaders of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) on Tuesday called on the finance ministry to expedite the release of pending cash incentives and provide other policy support to keep apparel exports running smoothly amid mounting challenges.

The BGMEA delegation, led by Vice President Md Shehab Udduza Chowdhury, included Vice Presidents Md Rezwan Selim, Mizanur Rahman, and Director Faisal Samad.

During the meeting, the delegation highlighted that the sector is facing a critical phase due to global economic uncertainty and multiple domestic challenges. As a result, garment export growth declined by 2.43 per cent during the first seven months of the current fiscal year. Moreover, in the October–December 2025 quarter, apparel export growth fell by an average of 9.43 per cent compared to the same period last year.

BGMEA leaders informed officials that nearly 400 garment factories have shut down over the past year due to rising production costs, declining product prices, and shortages of work orders, while many more factories are at risk of closure.

The delegation also drew attention to upcoming operational constraints, noting that February and March will see significantly fewer working days due to the national election, government holidays, and Eid-ul-Fitr. Factories may remain operational for only around 35 days during this 60-day period, yet will be required to pay nearly double wages, including regular salaries, bonuses, and advance payments. Small and medium-sized enterprises, they warned, would be particularly vulnerable without timely banking support, potentially leading to wage delays, disrupted production, and broader economic instability.

In this context, BGMEA urged the government to speed up the settlement and disbursement of pending cash incentive applications currently with lien banks and Bangladesh Bank to ease factory cash-flow pressures. They also requested emergency financial support, including soft loans or low-interest credit facilities equivalent to six months’ wages, to ensure the timely payment of workers’ salaries, allowances, and bonuses ahead of Eid and the post-election period.

The delegation emphasised that swift and effective government intervention is crucial to sustain the country’s leading export-earning sector.

Finance Secretary Dr Khairuzzaman Mozumder listened to the proposals and assured the delegation that the government would take positive measures to address the emerging challenges.

newsmanjasi@gmail.com