The ongoing energy crisis in Bangladesh has sparked fresh concerns within the Ready-Made Garment (RMG) sector, as international buyers are reportedly shifting their orders to competing nations like India.
Anwar-ul Alam Chowdhury (Parvez), President of the Bangladesh Chamber of Industries (BCI), raised the alarm during a pre-budget discussion for the fiscal year 2026-27, held on Wednesday at the National Board of Revenue (NBR) building in Agargaon.
Parvez highlighted a growing anxiety among global retailers regarding Bangladesh’s energy stability. Sharing insights from recent discussions with buyers, he noted that many are hesitant to place new orders due to uncertainties surrounding the electricity supply.
"Major buying houses are already signaling a reduction in orders for Bangladesh," the BCI chief stated.
He added that order volumes for the upcoming July-August season have dropped significantly below expectations, with the pace of new bookings slowing down.
The energy supply chain has been further strained by the ongoing conflict in the Middle East, which has a direct impact on Bangladesh's export-oriented industries. Stakeholders believe that the fear of production disruptions and the potential inability to meet lead times are the primary factors driving buyers toward alternative markets.
To mitigate the crisis and maintain global competitiveness, the BCI President proposed several policy interventions to the government.
He urged the NBR to reduce the source tax on export earnings from 1.0 percent to 0.5 percent, reconsider the 1.0 percent minimum turnover tax, describing it as a burden on businesses during these challenging times.
While the RMG sector remains the backbone of Bangladesh’s export earnings, it is currently facing a "perfect storm" of energy shortages, global geopolitical instability, and rising competition from regional neighbors.
Analysts warned that unless the government ensures a stable energy supply and provides business-friendly policy support, Bangladesh’s dominant position in the global apparel market could be significantly weakened.