The Bangladesh Garment Buying House Association on Sunday urged not to withdraw the duty-free import facility for 10 to 30 count yarn, warning that the move would hurt apparel exports and weaken the sector’s competitiveness.
The call came at a press conference, styled “The country’s readymade garment industry in crisis: a struggle for survival”, at the association’s office in Dhaka.
BGBA President Mohammad Mofazzal Hosen Pabel said the bonded warehouse facility for importing 10-30 count yarn should continue and that policy decisions must be taken in consultation with all stakeholders.
Additionally, he called for “appropriate” incentives for the garment sector.
Pabel said the facility’s withdrawal, coupled with security concerns and uncertainty over foreign buyers’ visits, has created fresh challenges at a time when exporters are already under pressure.
Pabel urged visible measures for ensuring safe and confident travel for foreign buyers, maintaining a stable and industry-friendly environment during the election period, and providing special industrial support in electricity, gas and energy supplies.
He also called for new and effective export incentives, timely letter of credit financing and payment clearance by banks, and special financial assistance packages for small and medium factories.
Among other proposals, he suggested establishing a ministry for the garments industry to ensure focused policymaking for export growth and employment as well as expanding opportunities for participation in global trade fairs.
The BGBA has about 1,800 registered members who collectively contribute an estimated $12 billion to $15 billion a year in foreign exchange earnings, playing a significant role in the country’s economy.
Pabel further said political instability and safety concerns ahead of and after the national election have discouraged foreign buyers from visiting, leading to a sharp drop in orders.
He said the absence of visible measures to ensure buyer safety and production continuity is damaging Bangladesh’s image in the global market and could undermine long-term export growth.
Rising electricity, gas and energy prices, along with inadequate infrastructure and limited incentives, have pushed up production costs and eroded Bangladesh’s competitiveness against regional rivals, he added.
Pabel also pointed to banking sector inefficiencies, including delays in processing letters of credit and limited access to working capital, which are disrupting supply chains and hitting small and medium factories hardest.
These disruptions are causing delivery delays, financial losses and reputational damage in international markets.
Citing weaker export performance in both traditional and non-traditional markets, Pabel warned that without immediate, coordinated and rational policy intervention, Bangladesh risks losing further market share to neighbouring countries.
