BGMEA delegation meets Special Assistant to the Chief Adviser Dr. Anisuzzaman Chowdhury. Photo: Collected

DHAKA, July 2, 2025 (BSS) - A delegation from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), led by its President Mahmud Hasan Khan, today met with Dr. Anisuzzaman Chowdhury, Special Assistant to the Chief Adviser, to discuss various existing pressing issues currently facing by the country’s RMG industry. 

The meeting was held at the Ministry of Planning in the capital.

The BGMEA delegation included Vice President (Finance) Mizanur Rahman, Vice President Md. Shihab Uddoza Chowdhury, and member Md. Kamal Uddin. 

Dr. Mostafa Abid Khan (Component Manager-1, SSGP, ERD), Dr. Md. Rezaul Bashar Siddiquee (Component Manager-2, SSGP), Nesar Ahmed (International Trade Expert, SSGP), Joint Secretary Abul Kalam Azad, and Communication Specialist Mehedi Mosharraf Bhuiyan were present, said a BGMEA press release.

During the meeting, the BGMEA representatives had open discussions on a wide range of issues, including banking challenges, issues related to the National Board of Revenue (NBR), gas supply to the industries, renewable energy integration, on improving Chattogram Port’s efficiency, and licensing complications (such as trade license, ERC, and IRC renewals). 

About the Bangladesh Bank’s loan classification policy, BGMEA President Mahmud Hasan Khan pointed out that the repayment period for loan installments has been reduced from 9 months to 3 months for which many entrepreneurs struggle to meet due to financial constraints. 

He proposed extending the period to 6 months, noting that such a move could prevent 500-600 factories from becoming classified loans.

Hasan Khan also highlighted that the special cash incentives has been reduced from 1% to 0.30%, and the alternative cash support from 4% to 1.5%. He argued that this reduction is neither supportive nor timely for the garment industry and requested the government to reconsider this decision in the interest of the sector and the national economy.

In addition, the BGMEA leaders recommended that the 1% source tax deducted at the export level should be treated as final tax liability at the end of the fiscal year.

The delegation also urged the government to reinstate the pre-shipment credit refinancing scheme and keep it effective until 2030, stating that it would help entrepreneurs manage their working capital needs. 

They also proposed for creating a forced fund against export proceeds to support factories in paying wages and resolving crises during emergencies.

The BGMEA President stressed that customs-related processes significantly impact the cost of production and delay business operations. 

In today’s competitive global market, reducing lead time is critical he said, emphasizing the need for streamlining the customs procedures.

It was decided that the BGMEA would submit a proposal to NBR to make customs policies more industry-friendly.

The BGMEA leaders also called for urgent improvements in the efficiency of Chattogram port.

The BGMEA president urged the government to immediately begin extracting gas from newly discovered fields in Bhola and thus supply it to the national grid. 

Importing more LNG was also discussed as a possible short-term solution.

The delegation underscored the importance of renewable energy in promoting environmentally friendly garment production. 

They proposed that the government can allocate khas land and water bodies for public-private partnership (PPP)-based solar power plants, which could provide affordable electricity to the industry via the national grid.

On social infrastructures, the BGMEA leaders expressed interest in building hospitals, housing, and schools for workers in garment-dense areas like Gazipur and Ashulia if the government allocates land.

The BGMEA also sought Dr. Anisuzzaman’s support in reviving the abandoned garments village project in Munshiganj and establishing a dedicated industrial zone for small and medium-sized factories in Chattogram.

In response, Dr. Anisuzzaman Chowdhury assured the BGMEA delegation that the government is fully aware of the importance of the RMG sector and is committed to providing all possible support to ensure its continued growth.