CHINA, India and Vietnam are the major competitors of Bangladesh in the readymade garments (RMG) sector and despite oodles of hardship in this sector Bangladesh occupies the 2nd position in the world. But attempt to raise the price of gas would be a serious predicament for the RMG industry. If the Bangladesh decides to increase the price of gas rate, the ultimate result would be hazardous for RMG industry and it will have a negative impact on Bangladesh economy. Moreover, the country will lose its competitive advantage due to increased gas price for captive generator-oriented industry like yarn manufacturing companies.
RMG is the life blood of Bangladesh economy supported by other sectors like pharmaceuticals, fishing, tanneries and agriculture. According to the World Economic Forum, Bangladesh occupies 5.0 per cent of the world's RMG sector. Yarn is the major ingredient for RMG and if the government raises the gas price our RMG sector will be under pressure to supply to the international market. Consequently there will be a slump in our foreign exchange earnings and we may not be able to hold on to the 2nd position in the world. On the other hand, we shall lose our competitive edge.
Energy regulatory body of the country should pay more attention to this aspect and reverse their decision to increase the price of gas in greater interest of the country.
Mohammad Iftekhar Hossain