Nearly all factories in Bangladesh’s ready-made garment (RMG) industry have paid workers’ salaries and Eid bonuses ahead of the festival, BGMEA President Mahmud Hasan Khan said.
According to him, 99.91 per cent of member factories have cleared February salaries, while 99.81 per cent have paid Eid bonuses. Partial advance salaries for March have been disbursed by 64.03 per cent of factories. Processes are ongoing in the few remaining factories.
Factory owners are also observing staggered holidays to reduce congestion as workers travel home. About half of the factories gave holidays until 17 March, while the remainder will observe holidays on Wednesday and Thursday.
Mahmud Hasan Khan said government support has helped the industry manage liquidity challenges. “Loan facilities on easy terms for paying workers’ salaries and a cash incentive of Tk2,500 crore have played an important role in tackling the liquidity crisis,” he said.
He warned that the industry is still under pressure due to global economic slowdown, geopolitical instability and rising competition in international markets. Export earnings fell 3.73 per cent in the first eight months of the fiscal year, while letters of credit for importing raw materials declined 6.79 per cent and the average unit price of garments dropped 1.76 per cent.
Domestic challenges, including higher gas and electricity costs, elevated interest rates and banking sector liquidity issues, have further strained factory operations, he added.
Despite the difficult environment, he said factory owners have made significant efforts to ensure timely payments.
