United News of Bangladesh

Worker representatives of the Minimum Wage Board for RMG sector have said they will initiate talks with all garment worker federations and organisations to prepare a consensus-based wage proposal that ensures fair pay for workers in the ready-made garment (RMG) sector. The announcement was made at a press conference held at Labour Bhaban in the capital this morning. They also demanded the immediate release of workers and labour leaders detained in connection with the ongoing protests, and the withdrawal of what they termed harassment cases filed against them. Anwar Hossain, permanent worker representative on the Wage Board and a leader of Bangladesh Jatiyatabadi Sramik Dal, presided over the event. Board worker representatives and labour leaders Babul Akhter, Nazma Akter, Mosa. Sultana Begum, Lovely Yasmin, Khaliquzzaman Lipu and Sohel Rana, among others, were present. In a written statement, the representatives said the cost of living for workers has risen sharply amid the current market situation. Workers are struggling daily to meet expenses on housing, food, healthcare, education and other family needs, they said, stressing the urgency of framing a fair and realistic wage structure in line with living costs. They said one of the board's first initiatives would be a joint consultation with representatives of all RMG worker federations and organisations. A consensus wage proposal, based on everyone's opinions, experiences, suggestions and the real needs of workers, will be prepared and placed before the board. Setting aside differences, they said, everyone must work together to ensure a wage that is fair, acceptable and implementable. Addressing the agitating workers, they said they understand and respect their demands and sufferings, and that those demands will be duly placed before the wage board. However, in the interest of the industry, they urged everyone to remain patient, maintain a peaceful environment and return to work to keep production running normally. The written statement also said the absence of effective trade unions in garment factories, and the lack of bipartite or tripartite social dialogue between owners and workers, often causes labour unrest to spiral out of control. A third party exploits such situations, it said, adding that responsibility for such incidents should not be placed on labour organisations or the working class. It is the government's duty to identify those behind the unrest and take action, they said. They urged police and the government not to harass ordinary workers and factory-level labour leaders under the pretext of the movement. The representatives said lasting peace in the industry cannot be established by ignoring workers' legitimate demands, and called for prompt consideration of those demands and an early meeting of the wage board. Demanding the immediate release of those detained over alleged involvement in the wage movement, they said anyone held merely for raising the demand for fair wages or taking part in a peaceful movement must be freed. Harassing cases and other measures must also be withdrawn, they added. They further said the government and factory owners must ensure that no worker faces dismissal, harassment, blacklisting or retaliatory action over the movement. The representatives called for taking into account workers' living costs, inflation, families' basic needs and the overall condition of the industry in determining an acceptable wage structure. They pledged to work with the utmost sincerity, honesty and responsibility as workers' representatives, saying they want to build a collective position based on the views of all worker federations, factory-based unions and rank-and-file workers, rather than any single decision.

Bangladesh's ready-made garment (RMG) export earnings grew by 6.10 percent year-on-year to reach US $10.58 billion during the first quarter (July–September) of the fiscal year 2026–27, according to data released by the Export Promotion Bureau (EPB). During the July–September period, the European Union (EU) remained the single largest export destination for Bangladeshi apparel, accounting for 46.36 percent of total RMG exports. Earnings from the EU market stood at $4.90 billion, registering a positive year-on-year growth of 3.33 percent. The United States retained its position as the second-largest individual market for Bangladesh's RMG products. Exports to the USA amounted to $2.22 billion, representing 20.99 percent of total apparel shipments and a strong 10.40 percent year-on-year increase. Meanwhile, exports to the United Kingdom reached $1.29 billion, capturing a 12.21 percent market share with a 5.94 percent growth rate. Canada accounted for $349.65 million (3.31 percent share), posting a 3.85 percent increase compared to the same period of the previous fiscal year. Exports to non-traditional markets demonstrated robust momentum, surging to $1.81 billion. Non-traditional destinations now account for 17.13 percent of total RMG shipments, reflecting a 9.40 percent year-on-year growth. In terms of product categories within the apparel basket, the knitwear sector performed strongly with a 6.88 percent growth, while the woven segment posted a 5.11 percent increase during the July–September quarter. The EPB data analysis by Mohiuddin Rubel, CEO of Apparel Voice, a think tank on RMG market analysis. He said that despite different global and domestic challenges, Bangladesh’s export increased in a positive trend.

Bangladesh's green manufacturing momentum has taken another step forward with the addition of four newly LEED-certified readymade garment (RMG) factories. The update was confirmed by Mohiuddin Rubel, Founder & CEO of Bangladesh Apparel Voice. Canvas Garments Pvt. Ltd. located at 301, North Nasirabad Industrial Area, Chattogram, secured the "Platinum" certification under the LEED O+M: Existing Buildings v4.1 rating system, scoring 90 points. Matrix Sweaters Ltd. located in Choydana, National University, Gazipur, also achieved the "Platinum" level under the LEED O+M: Existing Buildings v4.1 system with a score of 88 points. Karim Textiles Limited situated in Noorbagh, Mouchak, Kaliakoir, Gazipur, attained the "Gold" certification level, securing 73 points under the LEED O+M: Existing Buildings v4.1 rating framework. Karim Tex Limited located in Kalampur, Dhamrai, Dhaka, achieved the "Silver" certification level after scoring 53 points under the LEED O+M: Existing Buildings v4 rating system. With these four new additions, the total number of LEED-certified RMG factories in Bangladesh has risen to 290. This verified sustainable factory portfolio now features 125 Platinum-rated and 145 Gold-rated manufacturing facilities.

Bangladesh must urgently strengthen its export competitiveness and diversify beyond its heavy reliance on readymade garments (RMG) to successfully navigate its graduation from the Least Developed Country (LDC) category, economists and policymakers said on Monday. The observations came at a discussion on “LDC Graduation and Competitiveness” organised by Research and Policy Integration for Development (RAPID) at the Jatiya Press Club, where RAPID Chairman MA Razzaque presented a policy paper assessing Bangladesh's export prospects after LDC graduation. Information Minister Zahir Uddin Swapan attended the programme as the chief guest. Presenting the paper, Razzaque said Bangladesh's export sector has been facing mounting competitiveness challenges even before LDC graduation, with merchandise exports showing little momentum over the past four years. According to the paper, Export Promotion Bureau (EPB) data show Bangladesh's merchandise exports declined by 0.6 percent in FY26, while RMG exports dropped by 1.6 percent. UNCTAD data also indicate Bangladesh's exports grew by only 2 percent in 2025, compared with 7 percent growth in global exports. The study noted that Bangladesh is falling behind several regional competitors. Cambodia recorded export growth of 17.3 percent in 2025, Vietnam 16.8 percent, Indonesia 6.9 percent, Sri Lanka 6.3 percent and China 5.5 percent. Although Bangladesh exported goods worth about $48.2 billion in 2025 compared with Cambodia's $31.3 billion, Cambodia has rapidly narrowed the gap after expanding exports by around $9 billion since 2022, the paper said. Razzaque warned that Bangladesh's exports remain excessively concentrated in a narrow range of products, particularly garments, making the economy more vulnerable to external shocks and intensifying global competition. He said Bangladesh's export concentration is about four times higher than the average among developing countries, while new products contribute very little to export growth. The study also highlighted that Bangladesh has become less export-oriented over time, with exports and trade accounting for a declining share of GDP, weakening one of the country's principal engines of structural transformation. The paper cautioned that LDC graduation will reshape Bangladesh's access to key international markets. While Australia and the United Kingdom are expected to retain largely duty-free access for Bangladeshi products under their existing preference schemes, exporters could face higher tariffs in major destinations, particularly the European Union, India, China, Japan and South Korea. According to the presentation, even if Bangladesh secures the EU's GSP+ facility after graduation, apparel exports would still face a 12 percent tariff because of safeguard provisions, reducing the expected benefits for the country's largest export sector. The study also warned that recently concluded trade agreements between the European Union and countries such as India and Vietnam could further erode Bangladesh's competitive advantage in the EU market. Simulation exercises presented at the event suggested Bangladesh could face significant export losses under different post-graduation scenarios if competitiveness is not strengthened through policy reforms. Beyond tariffs, Razzaque identified exchange-rate management, high domestic inflation, weak export diversification, rising production costs and limited productivity growth as key factors undermining Bangladesh's global competitiveness. He stressed that nominal currency depreciation alone would not be sufficient to improve export performance if domestic inflation continues to offset its benefits. The paper called for a comprehensive strategy centred on export diversification, productivity enhancement, trade facilitation, investment in non-RMG sectors, improved logistics, better infrastructure and stronger trade negotiations to ensure a smooth and sustainable transition after LDC graduation. The discussion brought together policymakers, economists, business leaders and trade experts to examine policy options for maintaining Bangladesh's export momentum in the post-LDC era.

Bangladesh’s ready-made garment (RMG) exports fetched US$ 35.31 billion during the July–May period of the fiscal year 2025–26, registering a 3.41 percent decline compared to the same period in the previous fiscal year FY2024-25, according to the latest data from the Export Promotion Bureau (EPB). The sector, which serves as the backbone of the country's export economy, faced minor contractions across most of its traditional and non-traditional destinations, though Canada emerged as a silver lining by maintaining positive growth momentum. According to industry analyst Mohiuddin Rubel, Former Director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the European Union (EU) retained its status as the largest destination for Bangladeshi apparel. The EU market accounted for nearly half of the total RMG exports, taking in 49.15 percent of the shipments. However, export earnings from the EU dropped to US$ 17.36 billion, marking a year-on-year negative growth of 4.88 percent. The United States remained the second-largest destination for local apparel, holding a 19.90 percent market share. RMG exports to the US stood at US$ 7.03 billion, reflecting a marginal year-on-year decrease of 0.04 percent. Meanwhile, export trends varied across other major Western markets. The United Kingdom, holding an 11.38 percent share, saw a slight decline of 0.50 percent, bringing its total import value to $ 4.02 billion. Conversely, Canada bucked the downward trend by posting a 2.27 percent year-on-year growth, with exports reaching $ 1.23 billion (a 3.47 percent share). Exports to non-traditional markets also experienced a slowdown. The collective earnings from these emerging markets dropped by 5.95 percent to $ 5.68 billion, capturing a 16.09 percent share of the total RMG export basket. In terms of product performance, both major segments of the RMG basket registered negative growth. The knitwear segment fell by 4.26 percent, while the woven garment segment recorded a 2.42 percent decrease during the 11-month period.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has urged the government to expedite the disbursement of Tk 5,700 crore in cash incentives for the ready-made garment (RMG) sector. The call came during a meeting with Finance Minister Amir Khosru Mahmud Chowdhury at the Secretariat on Wednesday, a delegation member, led by BGMEA President Mahmud Hasan Khan, said on Thursday. BGMEA described the ‘fragile state’ of the industry, highlighting stalled incentives, working capital shortages, and hurdles to ease of doing business. Khan said the cash incentives for FY2025-26 remain trapped in audit procedures by lien banks and Bangladesh Bank, leaving many factories in severe liquidity stress. He urged a shift from the quarterly release system to immediate disbursement upon application. The Finance Minister acknowledged the demand’s validity and pledged to modernize and streamline the process for quicker fund release. BGMEA Vice President Md. Shihab Uddoja Chowdhury raised concerns over loan rescheduling, noting that while banks reschedule loans to manage non-performing loan ratios, they often fail to provide the working capital necessary to keep factories operational. He proposed a ‘win-win’ approach where banks supply working capital alongside rescheduling. The minister expressed support for the idea. Describing the garment industry as the ‘backbone of the economy’, Amir Khosru asked BGMEA to submit a detailed list of obstacles and recommendations within a week and assured full policy support for sustainable sector growth. The delegation included Senior Vice President Enamul Huq Khan, Vice President (Finance) Mizanur Rahman, Vice Presidents Vidya Amrit Khan and Md. Shihab Uddoja Chowdhury, and several board directors.

Bangladesh and the United States on Monday signed an agreement whereby the US committed to establishing a mechanism for certain textile and apparel goods from Bangladesh using American cotton and man-made fibres to enjoy zero tariff entry into the lucrative US market. At the same time, the agreement reduces the 'Reciprocal Tariff' rate for all other goods between the two nations to 19%.  It was originally set at 37 percent and later reduced to 20 percent in August last year. On the Bangladesh side, the signatories were Commerce Adviser Sheikh Bashir Uddin and National Security Adviser Khalilur Rahman, and on US side Ambassador Jamieson Greer, US Trade Representative. Negotiations on the agreement spanned over nine months since April last year. "The agreement marks a historically new level in our bilateral economic and trade relations. It will provide substantially enhanced access of Bangladesh and the US to each other's respective markets," said Commerce Adviser Sheikh Bashir Uddin, who led the Bangladesh side.  "The reduction of reciprocal tariff from 20 percent to 19 percent will grant further advantage to our exporters, while zero reciprocal tariff on specific textile and apparel exports from Bangladesh will give substantially added impetus to our garments sector," said NSA Rahman, who was the lead negotiator of Bangladesh. The agreement was approved by the Council of Advisers today (Monday) and will be operational once notifications are issued by the two sides. Present during the signing were Commerce Secretary of Bangladesh Mahbubur Rahman and Assistant US trade Representative Brendan Lynch.

Leaders of the country’s apparel trade bodies, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), on Monday strongly opposed recent recommendations to restrict yarn imports. They said any attempt to force the purchase of local yarn through tariff barriers would undermine the global competitiveness of the garment industry and disrupt its integrated supply chain. The leaders expressed their concern at an emergency press conference at a Dhaka hotel. Selim Rahman, acting president of BGMEA, said exporters prefer local yarn if its price matches the global market but imposing new tariffs or restrictions to support local mills would create a crisis. “If local yarn is available at global market rates, we will not import. But trying to force local yarn sales artificially is not a solution. It will only worsen the crisis,” he said. He urged the government to support the textile sector through cash incentives, reliable energy supply, and favourable tax and interest rates instead of imposing duties on yarn imports. He warned that BGMEA might take ‘tough measures’ if these concerns are ignored. Mohammad Hatem, president of BKMEA, said price differences between local and imported yarn have always existed but the situation worsened after the reduction of cash incentives. He criticised the Commerce Ministry for recommending restrictions on blended and man-made fiber (MMF) yarn, pointing out that local production in these categories is still insufficient. “If you stop yarn imports artificially and people start importing finished fabric instead, what will you do?” Hatem asked. The BKMEA leader also raised concerns over the shrinking Export Development Fund (EDF) which has been cut from $7 billion to $2 billion under IMF conditions. He said many businesses still cannot access the remaining funds. Garment accessories sector posts record $7.45bn export earnings in FY25: BGAPMEA Hatem expressed frustration over the lack of support from the financial sector. Highlighting regional competition, he noted that India continues to provide strong incentives to its textile and apparel sectors despite graduating from LDC status. He questioned why Bangladesh cannot implement similar support to sustain its top-earning export sector during this transition period.

The European Union’s apparel import market witnessed a significant reshuffling in 2025, as Bangladesh’s exports to the bloc climbed to €18.06 billion despite a broader trend of falling unit prices and aggressive competition from China. According to the latest Eurostat data for the period of January to November 2025, the EU's total apparel imports grew by 3.93 percent, reaching a total value of €82.94 billion. While the market saw a robust 11.60 percent increase in volume, the average unit price for garments fell by 6.88%, signaling a highly competitive, price-sensitive environment for global suppliers. Bangladesh, the EU's second-largest apparel supplier, saw its export value rise from €16.78 billion in 2024 to €18.06 billion in the first eleven months of 2025—a growth of 7.65 percent. This value growth was largely volume-driven, with an 11.26 percent increase in the quantity of goods shipped, even as the country faced a 3.25 percent decrease in unit prices. However, data from the end of the period suggests a cooling trend. A comparison between November 2024 and November 2025 reveals a sharp 10.87% drop in export value and a 12.27% decline in unit prices, highlighting the mounting pressure on Bangladeshi manufacturers to lower costs. Garment accessories sector posts record $7.45bn export earnings in FY25: BGAPMEA The report highlights a strategic pivot by China. Facing ongoing challenges in the United States market, China has intensified its focus on Europe. Chinese apparel exports to the EU reached €24.42 billion, marking a 6.55 percent growth in value. Most notably, China saw a massive 15.73 percent surge in export volume, supported by a 7.93 percent reduction in unit prices. The sourcing landscape across Asia showed varying results. Vietnam recorded a healthy 10.10 percent growth, reaching €4.02 billion. Unlike its neighbors, Vietnam saw a 4.19 percent increase in unit price, likely reflecting a shift toward higher-value garments. Turkey struggled significantly, facing an 11.31 percent decline in exports to the EU, totaling €7.66 billion. India, Pakistan, and Cambodia all showed substantial growth rates, contributing to the overall volume surge in the European market. Global demand crunch pinches RMG, exports stagnant in first 5 months of fiscal at $16bn "The data reflects a complex environment where volume is up, but margins are being squeezed," noted Mohiuddin Rubel, Managing Director of Bangladesh Apparel Exchange Ltd. "While Bangladesh remains a key player, the aggressive pricing strategies from competitors like China and the recent dip in November figures suggest that staying competitive will require a careful balance of volume and value-addition," he said.

Bangladesh’s economy posted a stronger performance in the first quarter (Q1) of the 2025-26 fiscal year, with gross domestic product (GDP) growth accelerating to 4.50 percent on a point-to-point basis in constant prices, according to provisional estimates. The latest quarterly figures show a notable improvement compared to the same period of the previous fiscal year, when GDP growth stood at 2.58 percent, reflecting a broad-based recovery driven mainly by the industrial sector alongside improvements in agriculture and services. In current prices, the size of GDP in Q1 of FY26 has been estimated at Tk 13,853,433 million (Tk 13,853 billion), up from Tk 12,401,032 million (Tk 12,401 billion) recorded in the first quarter of FY25, indicating a substantial expansion in nominal economic activity year-on-year. According to quarterly-based estimates, the growth rate of gross domestic product at constant prices for the entire FY25 has been placed at 3.72 percent. Read more: Bangladesh sees $1.12bn in remittances in first 10 days of January The Bangladesh Bureau of Statistics (BBS) noted that this quarterly-based estimate differs from the provisional annual GDP estimate for FY25 prepared on a yearly basis. The discrepancy will be addressed through internationally accepted benchmarking methods once the final annual GDP figures for FY25 are compiled, ensuring consistency between quarterly and annual national accounts. The agriculture sector returned to positive territory in Q1 of FY26, registering a growth of 2.30 percent at constant prices on a point-to-point basis. This marks a significant turnaround from the contraction of 0.60 percent recorded in the same quarter of FY25. The improvement in agricultural output suggests a degree of stabilisation following earlier disruptions, supported by better crop performance and a gradual recovery in allied activities such as livestock and fisheries. The rebound in agriculture is expected to provide some relief to rural incomes and food supply dynamics. The industrial sector emerged as the strongest performer, posting a robust growth of 6.97 percent in Q1 of FY26, nearly double the 3.59 percent growth recorded in the corresponding quarter of the previous fiscal year. Analysts view the sharp acceleration in industrial growth as a key driver of the overall economic upturn, reflecting improved manufacturing activity, gradual easing of energy-related constraints and a modest pickup in domestic demand. Export-oriented industries, particularly manufacturing, are believed to have contributed significantly to the sector’s stronger performance. Bangladesh’s GDP growth slows to 3.97% in FY2024–25 The services sector also recorded improved growth, expanding by 3.67 percent in Q1 of FY26 compared to 2.96 percent in the same quarter of FY25. The expansion in services indicates a gradual revival in trade, transport, communications and other service-related activities, which had remained under pressure amid economic uncertainty and subdued consumption in the previous year. The stronger GDP growth in the first quarter of FY26 points to early signs of economic recovery, supported by improved sectoral performance across agriculture, industry and services. However, economists caution that sustaining this momentum will depend on continued policy support, stability in the macroeconomic environment and progress in addressing structural challenges. The provisional nature of the quarterly estimates also underscores the need for careful interpretation, with revisions expected as more comprehensive data become available. Nonetheless, the Q1 figures provide an encouraging signal at the start of the fiscal year, suggesting that growth is gradually gaining pace after a period of slowdown. Read more: Forex reserves hit 3-year high as December remittances cross $3bn