Factories struggling to operate at full capacity amid fuel shortage: BKMEA president

Factories are struggling to run at their full production capacity in the absence of required fuel, Mohammad Hatem, president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said.

 

"Right now, energy shortage is one of the biggest problems. Government is saying that there is no shortage or crisis of fuel; the reality is that we are not getting it in filling stations," he said. 

 

Factories are facing two to three hours of load-shedding daily in working time, while units located at Gazipur and other areas under Palli Bidyut even face up to seven hours of load-shedding, the BKMEA president alleged.

 

In many cases, factories are unable to procure fuel as filling stations are not allowed to supply fuel in containers.

 

As a result, they are running factories below their production capacity, he said, demanding an uninterrupted energy supply for industries.

 

The BKMEA leader was speaking at a press conference organised on Saturday at Sonargaon hotel in the city to brief about the upcoming expo amid the global crisis, including war and trade tension, which have eaten up consumers' demand.

 

A four-day Bangladesh International Textile, Knitting and Garment Industry Exhibition (BTKG Expo 2026) will begin in Dhaka on April 29, Mr Hatem said.

 

The exhibition will be held at the International Convention City Bashundhara (ICCB) in the capital and will continue until May 2.

 

The exhibition is being jointly organised by BKMEA and Inforchain Digital Technology Co Ltd. 

 

Organisers said more than 1,000 exhibitors from around 30 countries are expected to participate in the show, which will display machinery and new technology at around 1800 booths.

 

Addressing the press conference, Hatem said the ready-made garment sector has long been the main driving force of the country’s economy.

 

In the 2024–25 fiscal year, the sector earned around $39 billion in export revenues, accounting for more than 80 per cent of the country’s total export earnings.

 

He added that to remain competitive globally, the industry must move towards more technology-driven, efficient, and sustainable production systems. 

 

The BKMEA president expressed hope that such international exhibitions would help the sector move forward.

 

Responding to a question, Mr Hatem said the exhibition had previously been organised by another association, but did not take place this year.

 

In that context, industry stakeholders felt that regardless of the current business situation, failing to keep pace with modern technologies would result in Bangladesh losing its market share and export orders shifting elsewhere.

 

Speaking there, Fazlee Shamim Ehsan, executive president of BKMEA, said the global fashion industry is rapidly moving towards fast fashion, recycling, and circularity, making technological advancement essential.

 

The primary objective of the exhibition is to familiarise entrepreneurs in the sector with such technologies, he added.

 

Mr Shamim, also convenor of BTKG Expo 2026, said that despite the ongoing challenges, such initiatives would encourage investment.

 

He further stated that showcasing new technologies could inspire the emergence of new entrepreneurs.

 

Responding to another question, Mr Hatem said that the global economy has been going through a turbulent period due to factors such as the post-COVID situation, the Russia–Ukraine war, and other geopolitical tensions, whose impact has also been felt in Bangladesh.

 

He said the exhibition aims to help the industry recover and attract international buyers by showcasing its technological capabilities.

 

Companies from Bangladesh as well as Canada, China, Taiwan, Belgium, France, Hong Kong, India, Indonesia, Japan, Vietnam, Malaysia, Turkey, and the United Arab Emirates will showcase their products and technologies at the exhibition.

 

The event will feature modern textile machinery, dyes and chemicals, knitting and weaving technologies, embroidery, cutting and sewing equipment, and washing and dry-cleaning technologies.

 

Replying to another question, Hatem said the current business situation is ‘very poor’ and that many factories have already shut down due to a lack of cooperation from the banking sector, with more at risk of closure.

 

He alleged exporters are facing difficulties in opening letters of credit, conducting import-export operations, and accessing credit facilities.

 

Complexities in customs procedures and, in some cases, arbitrary practices are hindering trade, the BKMEA leader noted.

 

He also said the Bangladesh Petroleum Corporation had instructed that fuel should not be supplied in containers, and the district administration was monitoring the matter and imposing fines where necessary.

 

Under such circumstances, transporting generators to filling stations to collect fuel is not a practical solution, he added.

 

Mr Hatem said overall production costs have increased by at least 20 per cent, but exporters are unable to pass on the additional costs to buyers as prices are fixed in advance.

 

Meanwhile, global demand has declined, leading buyers to reduce order placements.

 

Exports have been declining in recent months, while factories are currently operating at only 50–60 per cent of their capacity, he stated. 

 

Mr Ehsan said that although fuel cards have been introduced, adequate fuel supply is yet to be ensured at all levels.

 

While supply has normalised in some areas, shortages persist in others, he added.

 

He further said that due to the global economic slowdown, consumer spending has declined in key markets, including the European Union, affecting apparel demand.

 

As a result, order volumes have decreased globally, not just in Bangladesh, he added.

 

However, he expressed hope that order flows would improve next season if the situation stabilised.

 

Organisers said that three seminars would be held alongside the exhibition, jointly organised by BKMEA, BUTEX, and Textile Today, focusing on the current state of the industry, technological advancements, and future strategies.

 

The exhibition will remain open to visitors daily from 11:00 am to 7:00 pm.

 

Among others, Inforchain Digital Technology Co Ltd executive director Spencer Lin and Alliant Ltd CEO Rubaiyat Ahsan were present at the press conference.