The readymade garment (RMG) industry long considered the lifeline of the country’s economy is now facing deep uncertainty. In particular, one small and medium-sized factory after another is shutting down in the Chattogram region, creating instability throughout the entire industry.
According to recent data from the Industrial Police, there are currently 1,720 garment factories in the Chattogram area. Of these, 50 factories have permanently closed and 67 have temporarily shut down over the past year. As a result, nearly 50,000 workers have lost their jobs and are now in a state of distress. Although most owners have paid due wages and benefits, the future of these unemployed workers remains uncertain.
Business leaders cite several key reasons behind this crisis:
financial hardship, complications in opening LCs, a drop in international orders, and rising worker unrest.
In particular, the foreign currency shortage has made it extremely difficult to open LCs, while banking complications have disrupted the import of raw materials. As a result, production has come to a standstill in many factories.
Beyond closures, worker unrest has also escalated sharply. Over the past year alone, there have been more than 315 incidents of worker unrest across 70 factories in Chattogram. Delays in wage and bonus payments, concerns about job security, and fear of factory closures have been identified as the main causes, according to Industrial Police Superintendent Abdullah Al Mahmud.
BGMEA Vice-President Mohammad Rafiq Chowdhury said, “The garment sector is going through a very tough time. If the government does not provide quick policy support, financial guarantees, and a solution to LC complications, many more factories will shut down.”
Once considered one of the strongest export zones in the country, the garment sector in Chattogram is now overshadowed by uncertainty, unemployment, and declining production causing growing concern for both business owners and workers.