Ahead of Eid-ul-Fitr, the readymade garment sector is facing a severe liquidity crisis. In this situation, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has appealed to the governor to provide a loan equivalent to two months on easy terms as short-term wage support to ensure payment of salaries, allowances and bonuses to workers.
In a letter sent to the Bangladesh Bank Governor on Tuesday (February 24), the organization's acting president Enamul Haque Khan said that export earnings are continuously declining due to geopolitical instability, global recession and the ongoing tariff war. Factories are under pressure due to reduced work orders, deferred shipments and delayed orders.
The letter also mentioned that about 400 factories have closed in the last one year.
BGMEA said that factories will be closed for about 25 days out of 60 days during February-March 2026. However, in addition to the regular (February) wages, Eid bonus and 50 % advance wages for March have to be paid.
As a result, the pressure to pay salaries and allowances has almost doubled in a month. The liquidity crisis has deepened due to the increase in electricity, gas, transport and port charges and the upward trend in bank interest rates.
In this situation, the organization has expressed fears that it will be difficult to pay wages to workers on time without government support.
Citing export statistics, BGMEA said that the total garment export revenue decreased by 2.43 % during the July-January period of the current fiscal year compared to the same period of the previous fiscal year. Especially since August 2025, export revenue has been consistently declining.
At the same time, the organization said that the average unit price of garments decreased by 1.85 % during July-December.
Citing data from the National Board of Revenue, it said that exporters are not getting the expected prices due to price pressure in the international market.
On the other hand, according to Bangladesh Bank's weekly economic index, the number of back-to-back LC openings has decreased by 12.90 % during July-November. This rate has decreased by 8.40 % in November alone. BGMEA's UD data also shows a negative trend of 7.47 % in order flow in the last half.
The letter further said that in the case of export orders, factories usually procure 70-75 % of raw materials through back-to-back LC and spend about 20 % on wages and management. But due to deferred shipments and delayed orders, capital is stuck for a long time and the single borrower limit is being exhausted quickly. As a result, small and medium factories in particular are at financial risk.
In this context, BGMEA has requested the governor to go beyond the conventional loan limit and provide a loan equivalent to two months' wages as a special consideration. According to the proposal, the loan will be repaid within 12 months with a grace period of three months.
The organization claims that if assistance is not provided quickly, there may be a risk of labor unrest, which will have a major negative impact on the country's main export sector.