Where does garment industry stand now in Bangladesh!

Shaikh Shahrukh: Thirteen years after the Rana Plaza collapse reshaped Bangladesh’s ready-made garment sector, the industry has undergone sweeping changes — safer factories, stricter compliance and global recognition for green manufacturing. Yet beneath these gains lies a more complex reality: workers still face pressure on the factory floor, survivors continue to struggle with long-term hardship, and manufacturers are grappling with rising costs and financial strain. Workers across major industrial hubs say workplace safety has improved significantly since the 2013 disaster.

“Now there are fire exits, and we have regular drills,” said a female worker in Narayanganj. But concerns remain. “The production pressure is still very high. If we fail to meet targets, wages can be deducted,” she added. A worker in Gazipur said union activities remain sensitive in some factories. “There is always fear of losing jobs,” he said. Others noted that while safety awareness has increased, preparedness during real emergencies still needs improvement.

“Before Rana Plaza, we didn’t even know what a fire exit was. Now we get training, but in a real situation, not everyone can respond properly,” another worker said. For factory owners, the transformation has required heavy financial investment. “After Rana Plaza, entrepreneurs had to invest heavily to ensure safety,” said Faiz Ahmed Khan, managing director of Haseen Kayaba Group.

While necessary, he said, these investments have not been matched by higher prices from international buyers. “Many factories took bank loans to upgrade compliance. Those liabilities still remain,” he said.

Ahsanul Russel, managing director of Tua Ha Textile Mills Ltd, echoed the concern. “We carried out extensive renovations to meet compliance standards. But order prices did not increase accordingly,” he said, adding that many factories are still repaying loans taken during that period. Industry insiders say smaller factories were particularly vulnerable, with many unable to survive the financial shock.

One of the most visible outcomes of post-Rana Plaza reforms has been the growth of environmentally sustainable factories. Bangladesh now has more than 210 LEED-certified green garment factories, many with top-tier Platinum and Gold ratings—the highest number in the world. These facilities incorporate energy-efficient systems, water recycling and environmentally friendly designs, marking a shift toward sustainable production. Before 2013, only a handful of factories met such standards.

However, industry leaders say green transformation has also increased production costs without ensuring better returns. “Compliance and sustainability have improved our global reputation,” said Fazlul Hoque, managing director of Plummy Fashions Ltd and former BKMEA president. “But production costs have risen sharply, while buyers continue to negotiate lower prices,” he added.

In the aftermath of the collapse, international initiatives such as the Accord and the Alliance carried out extensive inspections, focusing on structural, electrical and fire safety. Factories were required to reinforce buildings, upgrade electrical systems and introduce modern fire safety measures, including sprinkler systems and emergency drills. These reforms significantly improved safety standards across the sector. But they also raised the cost of doing business.

Industry estimates suggest that between 2,000 and 2,500 garment factories have closed over the past decade. Key factors include high compliance costs, shrinking profit margins, rising utility expenses and intense global competition. A factory owner in Gazipur said compliance upgrades alone cost between $700,000 and $800,000.

“Buyers did not increase prices. Loans went up, profits declined, and many factories could not survive,” he said, requesting anonymity. Manufacturers say pricing pressure from international buyers remains a major challenge, with some buyers continuing to negotiate aggressively despite demanding higher compliance standards.

Compared to the pre-2013 period, the industry now operates under stricter regulations, higher costs and tighter margins. Safety investment has increased, but so have operational challenges—from energy shortages to persistent loan burdens. Thirteen years on, Bangladesh’s garment sector stands as both a success story of reform and a reminder of unresolved pressures. While factories are safer and more sustainable, workers, survivors and business owners alike say the journey toward a fully balanced and resilient industry is still far from complete.

 




Power supply slashed, daytime load shedding surges to 8–9 hours nationwide

District towns across Bangladesh are experiencing acute power outages as global energy supplies continue to be disrupted due to ongoing conflict in the Middle East. The situation has led to a sharp decline in electricity generation, with supply in many areas dropping to nearly half of the demand. In several regions, load shedding has taken a severe turn, with outages exceeding 10 hours a day.

On Thursday, power distribution companies struggled to maintain supply from morning until evening. Although scheduled outages were supposed to last one hour in different areas, the nationwide average exceeded two hours. Outside Dhaka, the situation is particularly dire, with some areas facing power cuts lasting eight to nine hours daily.

In Chittagong, residents are enduring daily power cuts ranging from seven to eight hours, severely disrupting normal life amid intense heat. Industrial production has also been affected. Rural areas are facing even worse conditions than the city, with electricity available for less than 10 hours out of 24.

Md Rafique, a resident of the Shangeet Residential Area under Panchlaish thana, told, “Load shedding has become unbearable over the past few days. Power goes out 10 to 12 times daily, and once it goes, it returns after about two hours. We are without electricity for at least seven to eight hours a day. In this heat, the situation has become intolerable and needs urgent resolution.”

Responding to the situation, Md Akbar Hossain, assistant director (Public Relations) of the Bangladesh Power Development Board (BPDB) in Chittagong, said that electricity distribution in Chattogram, the three hill districts, and Cox’s Bazar is managed from the Agrabad office.

“For the past four to five days, Chittagong has been experiencing load shedding of six to seven hours daily. During off-peak hours, outages reach up to 111 megawatts, but during peak hours, the situation worsens due to higher demand,” he said.

According to BPDB sources, peak hours typically run from 5:00 pm to 11:00 pm, when electricity demand is at its highest. Off-peak hours span from 11:00 pm to 5:00 pm the following day, when demand remains comparatively lower. However, the intensity of load shedding has been significantly higher during peak hours.

A report published on April 15 by the Chittagong Power Development Board revealed a significant gap between electricity demand and supply. On that day, power demand during off-peak hours stood at 1,384.09 megawatts, while peak-hour demand reached 1,432.73 megawatts. In contrast, load shedding amounted to 111.09 megawatts during off-peak hours and rose to 170.73 megawatts during peak hours.

Meanwhile, residents of Barisal are enduring prolonged power outages, with load shedding lasting five to six hours within a 24-hour period. The situation has left city dwellers struggling to cope with the intense heat, while business owners report mounting financial losses.

According to sources at the 33 kV substation control room in Rupatali, the combined daily electricity demand in Barisal and Jhalokathi ranges between 90 and 95 megawatts. However, only around 42 megawatts are being supplied. As a result, authorities are compelled to implement at least six hours of load shedding daily, with outages more frequent during peak hours.

Residents, including Mizanur Rahman of Kaunia and Sadeq Hossain of Circular Road, expressed frustration over the worsening situation. They said that as temperatures rise, power outages have increased, causing severe inconvenience to families. Nighttime outages, in particular, have made it difficult for children to sleep, adding to the overall hardship.

Business owners are facing even greater challenges. Traders from Chawk Bazar, including Minal Kanti Saha and Mohammad Shahin, said that due to the electricity crisis, the government has instructed shops to close by 6:00 pm. While they are complying with the directive, frequent outages between 9:00 am and 6:00 pm, often occurring four times a day, are severely affecting their operations. Each outage typically lasts over an hour, discouraging customers during crucial business hours. As a result, many traders are struggling to cover daily expenses.

They also expressed concern over the lack of clear information regarding when the situation might improve, alleging that authorities have not provided definite assurances.

When contacted, Manjur Kumar Swarnakar, executive engineer of Barisal Power Sales and Distribution Division-1, told that his area has a demand of 78.5 megawatts but is receiving only 50 megawatts of electricity supply. “Under these circumstances, we are left with no option but to resort to load shedding,” he said.

Executive Engineer Manjurul Islam of Barisal Electricity Sales and Distribution Division-2 said the demand in his jurisdiction stands at 39 MW, while only 21 MW is being supplied. “Under these circumstances, we have no option but to implement load shedding,” he told.

Echoing similar concerns, Akhteruzzaman Palash, executive engineer of the Barisal 33 kV substation, said they are receiving less than half of the required electricity. “As a result, we are compelled to enforce load shedding for five to six hours daily,” he added.

In the Mymensingh zone—comprising Mymensingh, Jamalpur, Netrokona, Sherpur, Tangail, and Kishoreganj—the daily electricity demand is around 1,075 MW. However, only 750 MW is being supplied, leaving a deficit of up to 325 MW. Officials say this shortfall is causing four to five hours of daily load shedding, with rural areas experiencing nearly double that duration.

Masudul Haque, executive engineer of Power Grid Bangladesh PLC in Mymensingh, noted that the extent of load shedding fluctuates throughout the day. “It is comparatively lower during off-peak hours and increases during peak demand periods,” he said.

He further explained that the Mymensingh Power Station, with a capacity of 210 MW, is currently generating only 30 MW due to gas shortages. Likewise, the United Jamalpur and United Mymensingh power plants, which have a combined capacity of 315 MW, are producing just 67 MW amid a shortage of furnace oil. The situation has been exacerbated by a recent hike in furnace oil prices by Tk 24.59 per litre. In addition, electricity supply from major plants, including Ashuganj, Sirajganj, and Bibiyana, has declined.

However, Engineer Abul Kalam, assistant chief engineer of the Bangladesh Power Development Board in Mymensingh, claimed that load shedding remains minimal. He attributed frequent outages in rural areas to weather-related disruptions. “Storms and rainfall often cause trees to fall on power lines, leading to temporary outages. Restoration efforts take time, which may create the impression of increased load shedding,” he said.

Residents, however, paint a different picture. Abdullah, a resident of Gopalnagar village, said prolonged outages are a daily reality. “Electricity remains unavailable most of the time. Once it goes out, it takes one to two hours to return. We experience four to five hours of load shedding daily. During storms or heavy rain, outages can last the entire day,” he said, highlighting the persistent challenges faced by rural communities.

Load shedding continues unabated in Sylhet, with frequent power outages both day and night causing widespread public suffering. The situation has become particularly challenging for Secondary School Certificate (SSC) examinees, whose examinations are scheduled to begin on April 21.

According to the Bangladesh Power Development Board (BPDB), Sylhet is currently experiencing load shedding of around 20–25 percent of its daily electricity demand. However, residents claim that the actual outages are more frequent and prolonged than official estimates suggest.

Panna Roy, a resident of Akhalia and a private sector employee, told, “We are going through a miserable time with our children due to constant power cuts. There was no electricity in my house from 12:00 am to 3:30 am on Wednesday. Again, it was out for an hour from 8:00 am on Thursday. Even at the office, power kept coming and going. It feels like we get electricity for an hour, only to lose it the next. On average, we are facing nine to ten hours of load shedding daily.”

Echoing similar concerns, Kobi Nombrom Shankar from Kushighat said he experienced three power outages within just two hours while visiting an office in the Nayasarak area. “We are facing at least seven to eight hours of load shedding every day,” he added.

Business owners in Sylhet have also expressed frustration over the worsening situation. Abdul Rahman Ripon, president of the Sylhet Metropolitan Business Unity Welfare Council, said, “Shops have to close by 7:00 pm, and by the time we open around 11:00 am, half the day is already gone. Even then, electricity is unavailable for a significant portion of the day. If this continues, we may be forced to shut down our businesses.”

BPDB sources said that on Wednesday, the Sylhet region recorded a demand of 170 MW against a supply of only 130 MW, resulting in a shortfall of 40 MW and approximately 25 percent load shedding. In Sylhet district alone, demand stood at 110 MW, while supply was limited to 83 MW, leading to outages exceeding 25 percent.

Mohammad Imam Hossain, chief engineer of BPDB’s Sylhet division, said the situation stems from a mismatch between supply and demand. “We are experiencing an average of 20–25 percent load shedding daily due to insufficient power supply. This is not limited to Sylhet; similar conditions prevail across the country amid the global energy crisis,” he said.

Load shedding has intensified nationwide since early April, driven in part by rising temperatures. While urban areas are coping relatively better, rural regions are facing more severe outages, often lasting six to seven hours daily on average. The situation has also increased reliance on generators.

In Rangpur, residents are experiencing power outages at intervals of one to two hours, significantly disrupting daily life. Although scheduled outages are supposed to last one hour, they often extend beyond two hours. In areas outside the district town, power cuts have reportedly reached up to 10 hours a day. The situation is even more severe at the upazila level, where load shedding occurs almost every hour after evening, totaling 10 to 12 hours daily in rural areas.

Residents said the city has been enduring continuous load shedding for the past 10 days. On Thursday morning, between 5:00 am and 9:00 am, outages occurred almost every hour across most parts of the city, except for some priority areas. Traders at District Council Super Market and Jahaj Company Shopping Complex said frequent outages are severely affecting business operations. “We don’t even get enough time to charge IPS systems,” they said, adding that daily power cuts last eight to nine hours.

Students, including SSC candidates, are also struggling to continue their studies amid persistent disruptions, raising concerns over their preparation for the upcoming exams. Shamsul Islam, an engineer at the Northern Electricity Supply Company (NESCO) in Rangpur, said, “We are compelled to implement load shedding due to insufficient power supply from the national grid. There is little we can do under the circumstances.”

The situation is particularly acute in eight upazilas of Rangpur, where rural electrification systems are in place. These areas are experiencing at least 10 hours of load shedding daily. Biplab Kumar Pal, deputy general manager of the Badarganj Rural Electrification Association, said, “The demand in my area is 20 MW, but we are receiving only 8 MW. Under such conditions, it is impossible to meet consumer demand, leaving us with no option but to enforce load shedding.”

Khulna is facing severe and frequent load shedding as electricity supply in many areas has dropped to nearly half of the demand, pushing the situation into a critical state. In several locations, power outages are lasting for more than 10 hours a day. According to data from the West Zone Power Distribution Company (WZPDCL), load shedding reached 202 megawatts during the peak hour at 1:00 pm on April 16, with Khulna city alone accounting for 115 megawatts of the shortfall. Central control room data of WZPDCL shows that at the same time, total electricity demand under its jurisdiction stood at 762 megawatts, while supply was only 560 megawatts, resulting in a deficit of 202 megawatts.

In Khulna city, demand was 160 megawatts against a supply of 131 megawatts, leaving a shortfall of 29 megawatts. In the wider Khulna zone, demand stood at 573 megawatts while supply was 458 megawatts, creating a deficit of 115 megawatts. In the Barisal zone, demand was 189 megawatts against a supply of 102 megawatts, resulting in an 87-megawatt shortfall.

However, the ground reality appears to be more severe than official figures suggest, with residents reporting outages lasting more than 10 hours in many areas. A responsible source from the Rampal Power Plant said the facility generated 1,250 megawatts of electricity on April 16 and that production has remained stable despite ongoing global energy supply challenges. The plant continues to play a significant role in supporting the national power grid.

Despite this, residents of Khulna city report frequent outages throughout the day. Locals say power cuts occur every 30 to 60 minutes and last for 60 to 90 minutes at a time. “In our area, when electricity goes out, it does not return for one and a half hours. Even after it returns, it goes off again within 30 minutes. Overall, we are experiencing 10–11 hours of load shedding daily,” said Azmal Hossain, a resident of the Goborchaka area in the city.

Residents of Ward No. 23 in Khulna city also reported outages lasting up to two and a half hours on April 16 at midday, along with brief interruptions in the morning, afternoon, and evening. Reports were compiled by correspondents from Khulna, Barishal, Mymensingh, Sylhet, Chittagong, and Rangpur.

 




PM seeks $2b from development partners to meet energy demand

DHAKA – Prime Minister Tarique Rahman today sought US$ 2 billion fund from development partners to meet the Bangladesh’s immediate energy needs and safeguard its economic stability.

“The situation before us demands urgency, solidarity, and decisive action. Immediate support for the most vulnerable countries must be at the top of our collective agenda,” he told the Asia Zero Emission Community (AZEC) Plus Online Summit. “We urge the intentional community to respond swiftly and positively to this call,” he said.

Highlighting the ongoing global energy crisis, the Bangladesh prime minister said the crisis is a stark reminder of their shared vulnerability and interdependence. No nation- regardless of its size or strength- can overcome this challenge in isolation, he said, adding that it demands a coordinated and forward-looking Asian response, to strengthen regional energy security, address immediate supply disruptions, and support the most vulnerable countries.

Tarique Rahman said the energy crisis has already disrupted Bangladesh’s economy. “In response, we have taken a range of short-term measures to contain the impact.”

He said the measures include demand-side management through the rationing of government office and market hours; stabilisation fuel supplies through emergency imports and diversification of sourcing; and consumption controls, including fuel rationing and limits on retail sales to prevent hoarding and panic buying through initiatives such as ‘Fuel App’.

The premier said Bangladesh is concerned that the scale and consequences of this crisis could exceed those of the 1970’s oil shock, which triggered a decade of stalled development in the 1980s.

Since gaining independence in 1971, he said, Bangladesh has worked relentlessly to drive economic growth, lift millions of out poverty, and improve the quality of life for its people.

“Today, these hard-own gains are in danger, facing the real threat of reversal,” he added. Tarique Rahman said Bangladesh is not alone in facing this risk, “nor can we overcome it through national effort alone”.

This moment calls for a decisive and co-ordinated global action, to contain the impact of the ongoing energy crisis, particularly to protect vulnerable countries, including the Least Developed Countries (LDCs), from its severe economic and social impact, he said.

Tarique Rahman appreciated Japanese Prime Minister Sanae Takaichi for convening this timely and important Summit. Malaysia Prime Minister Anwar Ibrahim and heads of the government and states of Japan, the Philippines, Singapore, Thailand, Vietnam, Timor Leste and representatives of different countries took part in the online summit.

Japanese Prime Minister Sanae Takaichi delivered concluding remarks at the meeting. While Prime Minister Tarique Rahman delivered his speech at the summit from his Sangshad Bhaban office this afternoon, Foreign Minister Dr Khalilur Rahman and Foreign Affairs Adviser M Humayun Kabir were present.

 




World Bank: Iran war to push 1.2m more Bangladeshis into poverty

The ongoing Middle East conflict and global economic instability could push around 1.2 million additional people in Bangladesh into poverty this year, the World Bank has warned, highlighting growing risks to livelihoods and economic stability. The projection was outlined in the World Bank’s Bangladesh Development Update (April 2026), released on Wednesday, which cautions that rising inflation and declining incomes may prevent a large segment of the population from escaping poverty.

According to the report, individuals earning less than $3 per day are considered below the poverty line. Prior to the escalation of the Middle East conflict, around 1.7 million Bangladeshis were expected to move above this threshold in 2026. However, that figure is now projected to fall to about 500,000, leaving roughly 1.2 million people unable to rise out of poverty.

The World Bank noted that Bangladesh’s progress in reducing poverty has slowed in recent years. The national poverty rate increased from 18.7% in 2022 to 21.4% in 2025, with around 1.4 million people newly falling below the poverty line last year alone.

The report warns that external shocks — particularly the war in the Middle East — are compounding existing economic pressures, threatening to reverse earlier gains. The World Bank projects that Bangladesh’s gross domestic product (GDP) growth could slow to 3.9% in the 2025–26 fiscal year, as global uncertainty dampens consumption and investment.

At a briefing in Dhaka, World Bank Bangladesh and Bhutan Director Jean Pesme said weak revenue collection, rising trade barriers — including retaliatory tariffs — and persistent inflation are adding to economic strain. He stressed the need to sustain reform efforts and improve the investment climate to generate jobs and support long-term poverty reduction.

The report identifies several channels through which the conflict could impact Bangladesh’s economy. It warns of pressure on the current account balance, driven by disruptions in imports, exports and remittances, as well as exchange rate volatility. Rising global fuel prices are expected to push up transport costs, contributing to higher inflation.

At the same time, government finances may come under increased strain due to higher subsidy requirements for fuel and fertiliser. The report also highlights the risk of widening inequality, with the Gini coefficient projected to rise slightly in 2026, reflecting uneven income distribution.

Without the impact of the conflict, the World Bank estimates Bangladesh’s poverty rate could have declined to 19.3% by 2028. However, current conditions may delay that trajectory. The report underscores the importance of controlling inflation, expanding employment opportunities and strengthening the investment environment to mitigate the impact.

Experts say the coming months will be critical, as policymakers seek to balance short-term shocks with longer-term economic recovery. As global uncertainties persist, the World Bank’s warning signals a growing risk that external conflicts could translate into deeper economic hardship for millions in Bangladesh.

 




PM orders to reopen sick, closed industries

DHAKA – Prime Minister Tarique Rahman has directed the authorities concerned to take initiatives, involving private entrepreneurs, to reopen sick and closed industrial establishments in the country. “The Prime Minister has directed the ministries concerned to take steps to reopen the sick and closed industrial institutions,” Prime Minister’s Additional Press Secretary Atikur Rahman Ruman said today.

However, he said, how private entrepreneurs will be involved in the initiative and what the nature of ownership or partnership will be have not yet been finalized. Reopening sick and closed industrial establishments to create employment was one of the BNP’s election pledges.

According to the Prime Minister’s directive, sick and closed jute mills and sugar mills will be reopened, retaining former workers in their jobs and creating new employment opportunities there. As per the information placed before the parliament in June 2024 during the previous Awami League government, the number of closed industrial institutions under the Ministry of Industries was 397 at that time.

Of these, 382 sick/closed industries were under Bangladesh Small and Cottage Industries Corporation (BSCIC), five under BCIC, six sugar mills under BSFIC and four factories under BSEC. Over the past two years, the number has increased further. However, no updated statistics have been published by the government.

Bangladesh Investment Development Authority (BIDA) Executive Chairman Chowdhury Ashik Mahmud Bin Harun said, “Prime Minister Tarique Rahman has instructed to create new jobs”.

He also asked to take initiatives to reopen closed and sick industrial factories, the BIDA chief said, adding, in this regard, a committee led by the Ministry of Industries has already started working.




ECNEC formed with PM Tarique Rahman as Chairperson

DHAKA – The government has formed the Executive Committee of the National Economic Council (ECNEC) with Prime Minister Tarique Rahman as its chairperson. The committee was constituted through a gazette notification issued today. The notification was signed by Md. Humayun Kabir, Additional Secretary (Committee and Economic Affairs) of the Cabinet Division.

According to the notification, Prime Minister Tarique Rahman will serve as Chairperson of the ECNEC while Mirza Fakhrul Islam Alamgir, Minister for Local Government, Rural Development and Cooperatives, has been appointed as its Alternate Chairperson.

Other members of the committee are Finance and Planning Amir Khasru Mahmud Chowdhury, Home Affairs Minister Salahuddin Ahmed, Foreign Affairs Minister Dr. Khalilur Rahman, Industries, Commerce, and Textiles and Jute Minister Khandaker Abdul Muktadir, Law, Justice and Parliamentary Affairs Minister Md. Asaduzzaman, Health and Family Welfare Minister Sardar Md. Sakhawat Hossain and Road Transport and Bridges, Railways and Shipping Minister Sheikh Rabiul Alam.

Supporting officials will include the Cabinet Secretary, Principal Secretary to the Prime Minister, Secretary to the Prime Minister’s Office, Secretary of the Finance Division, Secretary of the Economic Relations Division, Secretary of the Statistics and Informatics Division, Secretary of the Implementation Monitoring and Evaluation Division (IMED), members of the Planning Commission under the Planning Division, and secretaries of the relevant ministries and divisions. The notification stated that the term “Secretary” in this context will also include Senior Secretaries.

ECNEC will consider and approve all Development Project Proposals (DPPs), Technical Assistance Project Proposals (TAPPs), and Technical Project Proposals (TPPs). The committee will also consider and approve recommendations of the Project Evaluation Committee (PEC) for projects involving total investment costs exceeding Tk 50 crore in the public sector. It will review the implementation progress of development projects.

In addition, the committee will examine proposals from private initiatives, joint ventures, and participatory investment companies. ECNEC will monitor the country’s economic situation, review overall economic activities and related policy matters, and consider and approve the annual targets for foreign assistance. It will also review progress in achieving those targets.

The notification said the committee will meet as necessary, and the Planning Division will provide secretarial support. The order takes immediate effect. It also stated that the previous notification issued by the Cabinet Division on August 20, 2024, in this regard will be considered as cancelled.