Dhaka: No readymade garment (RMG) factory has been closed due to the recent gas situation, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Mahmud Hasan Khan stated.
According to Bangladesh Sangbad Sangstha, Mahmud Hasan Khan noted that the real impact on the sector would likely become apparent after three months. "No factory has closed, so far, because of the recent energy crisis," he mentioned during a press conference at the BGMEA Complex. He added that the gas supply situation had improved over the past week, with both Floating Storage and Regasification Units (FSRUs) now fully operational and LNG supply disruptions eased.
The BGMEA President explained that factory closures require advance preparations to settle pending orders and workers' legal compensations, which is why no closures have been directly linked to the gas crisis yet. He suggested that the situation could become clearer in three months if the crisis persists. Khan advocated for increased use of fuel-based power plants to reduce reliance on gas-fired power generation and urged authorities to ease merchant power purchase agreements.
Mahmud emphasized the garment sector's turn to rooftop solar power as an alternative energy source, with data from 14 factories indicating potential solar power generation of about 168 MW. He stressed the need for low-cost financing for solar projects due to their lengthy return on investment. Discussions with the Bangladesh Bank governor have been initiated to seek green-finance support for BGMEA members.
He acknowledged the use of artificial intelligence (AI) and automation in areas like shipping documents, marketing, merchandising, and design development, clarifying that AI should not be seen solely as a replacement for workers. Khan also remarked on the significant reduction in BGMEA membership from over 7,000 to around 3,000, reflecting industry changes over four decades.
Addressing customs-related challenges, he noted ongoing reforms and digitization efforts, such as digital submission of utilisation-permission applications by deemed exporters. Despite these challenges, he asserted Bangladesh's production capacity as its core strength, crucial for attracting international buyers.
Regarding minimum wage revisions, he referred to tripartite discussions involving workers, employers, and the government following amendments to the labor law. He refrained from commenting on the upcoming extraordinary general meeting (EGM) and proposed decisions on members' voting rights before the meeting.
Khan highlighted BGMEA's improved access to the current government compared to the previous interim administration, having met with the Prime Minister four times and maintaining the capability to arrange meetings with other cabinet members, including the Commerce Minister.