Policy support sought to weather economic challenges: BGMEA
Bangladeshi garment makers today sought policy support from the government to weather the current domestic and international economic challenges.
Faruque Hassan, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), made the call while leading a delegation of the association in a meeting with Finance Secretary Md Khairuzzaman Mozumder at the secretary's office in Dhaka.
At the meeting, Hassan highlighted the impact of the Russia-Ukraine conflict on the global economy, which has created a significant challenge for the readymade garment industry of Bangladesh, according to a statement from the BGMEA.
The repercussions of the war of the two eastern European countries have pushed inflation to go high in the USA and EU countries and the demand for apparel in key export markets like Europe and America has declined as consumers start prioritising essential items such as food and fuel over clothing, it said.
This has resulted in a decline in garment exports to the Europe and the USA, Hassan said in the statement.
This decrease in garment exports, which constitutes over 84 percent of Bangladesh's total export earnings, has impacted the south Asian country's foreign reserves.
Hassan then sought the government policy support to help the industry navigate the troubled times and maintain competitiveness in the global market.
He underscored the industry's increasing focus on diversifying into non-cotton products including man-made fibre-based garments, given their high global demand and urged the government to encourage and facilitate this shift through policy support.