No garment factory shut due to energy crisis: BGMEA president

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has said the gas supply situation in garment factories has improved somewhat. BGMEA President Mahmud Hasan Khan said no garment factory has been shut down so far due to the recent energy crisis. However, he said it would take at least another three to four months to understand the real impact of the crisis.

The BGMEA president made these remarks at a press conference held at the BGMEA Complex in Uttara in the capital on Thursday, September 17. The press conference was organised on 'BATEXPO 2026', the Hong Kong roadshow and the current situation of the garment industry.

BGMEA President Mahmud Hasan Khan said, "Gas supply has increased compared to the last few days. No garment factory has been shut down due to the power or energy crisis. However, it will take at least another three months to understand the real impact of the energy crisis."

Highlighting the complexities of managing the garment sector, the BGMEA president said the impact of any crisis in this industry does not become immediately visible. It is not possible to decide to shut down a factory overnight. Completing orders already in the pipeline, paying workers' legal dues and compensation, and settling banking liabilities require about six months of planning to wind down a factory.

He further said, "According to our information, no factory has been shut down in the past two months due to the energy crisis. However, the real impact will be understood in the next three to four months. At the same time, if a factory closes now due to an incident or accident from six months or a year ago, it would not be correct to assume it closed because of the current energy crisis."

Referring to the meeting between business leaders and the government at the highest level, the BGMEA president said the dyeing and washing sectors, along with backward linkage industries, were being severely hampered due to low gas pressure. However, following a recent meeting between business representatives and the Prime Minister, it was announced that gas supply to industries would be restored to previous levels, which has already begun to take effect.

Noting that production costs have increased due to the crisis, Mahmud Hasan Khan said garment factories normally work 8 to 10 hours in normal times. But due to the energy crisis, many establishments have had to spend an additional five hours and use alternative fuels. This has increased production costs. Nevertheless, entrepreneurs have tried to ship goods on time.

Emphasising the need for short, medium and long-term plans to ensure energy security and resolve the crisis, he said BGMEA has already submitted a proposal to the Ministry of Energy. If implemented, a major permanent solution to the problem would be possible within the next two years.

The BGMEA president stressed the construction of land-based gas storage terminals alongside setting up more floating LNG terminals (FSRUs) for the long-term protection of the industrial sector. Referring to information about an FSRU contract with China on a G-to-G basis, he said it is not enough to just increase FSRUs; the main distribution system must also be improved. If the distribution lines are not adequate, the desired benefits will not be achieved.

Additionally, BGMEA demanded priority gas connections and rationing facilities for small and medium (SME) factories and factories with 100 to 500 PSI boilers. They also called for intensified gas exploration in coastal areas and the provision of low-interest 'green loans' to increase the use of renewable energy.