Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Mahmud Hasan Khan led a delegation to meet Bangladesh Bank Governor Ahsan H Mansur on Tuesday, highlighting the severe financial challenges faced by garment exporters due to the ongoing crisis in several banks.
The meeting, held at the Bangladesh Bank headquarters, focused on the adverse effects of liquidity shortages in five troubled banks, which have delayed the release of export earnings and hindered the opening of new Letters of Credit (LCs).
During the meeting, BGMEA President Mahmud Hasan Khan outlined the critical issues caused by these banks’ inability to fulfil financial commitments on time, leading to heavy losses for garment factories. This disruption has made it increasingly difficult for these factories to maintain operations, particularly in paying workers’ wages and allowances on schedule, escalating worker dissatisfaction and threatening industrial harmony.
He further emphasized that the ongoing crisis is damaging Bangladesh’s reputation internationally and undermining buyer confidence, which could have long-term implications for the country’s most vital export sector.
The BGMEA leaders urged Bangladesh Bank to take swift action to prevent the further deterioration of the industry. They warned that without immediate resolution, many garment factories could become non-viable, leading to mass job losses and exposing the industry to additional risks.
Ahsan H Mansur acknowledged the concerns raised by the BGMEA delegation and assured them that immediate measures would be implemented to address the liquidity issues, including facilitating the timely payment of exporters’ due funds. The Governor also promised that a permanent solution would be pursued to prevent a recurrence of such financial disruptions.
BGMEA President Mahmud Hasan Khan expressed optimism that with prompt action, the financial uncertainties in the apparel sector would be resolved, allowing the industry to return to normalcy and continue contributing to Bangladesh’s export growth.