According to the president of the Garment Manufacturers and Exporters Association (BGMEA), Khandaker Rafiqul Islam has caused a financial loss of approximately 300-400 million dollars due to instability in the garment sector.
He gave this information at a press conference held at BGMEA complex in Uttara on Saturday (October 19).
Khandaker Rafiqul said that the process of assessing the extent of damage to the garment sector due to the instability is still ongoing. However, as per the initial information that we have received – the financial loss is 300 to 400 million dollars, which may increase further.
Rafiqul Islam also said that our industry is not good. Clothing imports are decreasing in the world. During January-August of this year, the import of clothing in the United States has increased by 1.5 percent. But from Bangladesh it has decreased by 3.8 percent. But exports from China increased by 3.6 percent. Similarly, Vietnam has increased by 5.2 percent, India has increased by 7.6 percent and Cambodia has increased by 7.7 percent.
Total imports in Europe increased by 3.3 percent during January-July period. There is an increase of only 2.8 percent from Bangladesh. But China has increased by 6.4 percent, India has increased by 5.18 percent, Cambodia has increased by 18.35 percent, Vietnam has increased by 12.61 percent and Pakistan has increased by 14.41 percent. And judging by the comparative export growth, Bangladesh's export growth has been 5.34 percent during July-September this year. And Vietnam's growth has been 15.57 percent and India's growth has been 13.45 percent. That is, in the third quarter of this year, we have lagged far behind in growth compared to our competing countries. Which indicates a shift in export orders to these countries.
Rafiqul Islam said, due to instability in certain industrial areas in recent times, our exports and production of around 250-300 million dollars have been disrupted in September alone. The rate of cash assistance to the garment industry has been reduced due to transition of LDCs. This has increased unintended risks and disruptions in the industry. After transitioning to LDCs, many middle-income countries have been providing nominal incentives for their industries. We have many examples of that. Therefore, considering the importance of the garment sector in the overall economy, we demand to consider the issue of reinstating incentives.
Many entrepreneurs in the readymade garment sector are unable to survive in the business due to various adversities. BGMEA has long been demanding a safe exit policy for these entrepreneurs. From today's press conference, we are once again drawing the government's kind attention to this matter.
We do not want a repeat of this situation, he said, pointing out that the garment industry had to pay a heavy price for the prolonged labor unrest in the last two months. I am drawing the attention of the concerned government to bring those who play tricks with industry and economy under strict laws. We have always sympathized with our labor brothers and sisters. From that position, we accepted the 18-point demand despite hundreds of challenges. Even then, if there is anarchy in the garment sector or any untoward incident happens, then all concerned should be held responsible.
