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Leaders of the country's primary textile millers on Tuesday threatened that they would not make any fresh investments unless the government announces an election date.
Textile mills, already grappling with an acute gas shortage, will face closure one after another if the government doubles the gas price, they said, adding that uncertainty over election date and the possibility of raising the gas prices will discourage both local and foreign investment, especially those who want to relocate from China.
They came up with the remarks at a press conference arranged by Bangladesh Textile Mills Association (BTMA) at a city hotel on Tuesday. The conference was organised to announce the country's largest textile machinery exhibition that will kick off at International Convention City Bashundhara in the capital on February 20.
Speaking on the occasion, BTMA President Showkat Aziz Russell said they are in the dark about when the election will be held. It will be helpful for them to make investment plans if the date is announced, he said, warning that they won't make investment if the government doesn't respond to their demands.
About the gas price, he said, "If the price doubles to Tk 75 overnight, Bangladesh's textile sector will not be sustainable and there would be no new investments. No bank has so far financed any new projects during last six months." He alleged that real businesses are struggling due to liquidity crisis and they are not receiving necessary bank supports.
The BTMA leader further said, "There is huge a potential for Bangladesh. In fact, the country is a top destination for companies that are exploring opportunities to relocate from China."
He urged the foreign participants attending this week's show to bring investment along with displaying their latest innovation and technology.
"But the concerning issue is that foreign investors won't come if they find that gas and electricity prices here becomes double overnight. The government has to come up with a long-term policy for at least 10 years and the policy should be employment-friendly that could generate more jobs."
He deplored the fact that they are not receiving sufficient amount of gas though they have always paid the government-fixed rate.
The world is shifting towards man-made fibres, which now stands at 70 per cent, but the situation is just opposite here, Mr Russell said, adding that there is no supportive policy in this connection.
About the policy supports, he noted that garment and textile industry has flourished over the years as there was 25 per cent incentive while no question was raised about the source of investment.
Last year, Bangladesh officially imported US$2.7 billion worth of yarn from India as local millers failed to operate fully with some running partially, he said, adding that despite a flood of work orders for garments from buyers, the trend of yarn imports from India might continue.
He called upon the government to stop allowing yarn import through land ports, allowing them only via seaports. He alleged that yarn is smuggled into the country showing a reduced quantity of imports with false declaration.
BTMA in coordination with Yorkers Service Co Ltd, Hong Kong, is arranging the four-day “19th Dhaka International Textile and Garment Machinery Exhibition (DTG 2025)”.
Over 1,100 leading brands from 33 countries will participate in the expo, presenting their technologies at 1,600 stalls.
Exhibitors from China, Germany, India, Italy, Japan, South Korea, and Turkey will display cutting-edge textile machinery, fabrics, filaments, chemicals, dyeing technology, and accessories.
The exhibition also features seminars on sustainable production and modern technology, along with the DTG Fashion Show on February 21 and 22.
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