United News of Bangladesh

Worldwide Responsible Accredited Production (WRAP) and the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) have agreed to strengthen their long-standing partnership to promote ethical and sustainable production within Bangladesh's apparel sector. This commitment emerged from a courtesy meeting today between Kamrun Nahar, WRAP's Head of Operations for Bangladesh and Pakistan, and Mahmud Hasan Khan, President of BGMEA, at the BGMEA office in Uttara. During the discussion, BGMEA President Mahmud Hasan Khan emphasized the historical collaboration between the two organizations in advancing ethical and sustainable practices, noting that further strengthening this partnership would be beneficial for the Bangladeshi apparel industry. BGMEA seeks ministry, loan ease, bond audit reform for export growth He specifically requested WRAP to take the initiative in engaging with apparel brands to develop a unified code of conduct for the industry. Kamrun Nahar confirmed that WRAP's efforts in this regard are ongoing. The meeting also delved into various aspects of WRAP's audits.  Kamrun Nahar urged the BGMEA to play a more active role in WRAP's training courses for its members.  Discussions also covered the full implementation of the Memorandum of Understanding (MoU) signed between BGMEA and WRAP in 2022, exploring potential areas of cooperation, and updating audit standards to be more current. A key point of discussion was the need for exemptions from audit requirements regarding 30% open roof space in factory buildings, which currently prevents factories from installing rooftop solar panels, and obligations concerning shared factory buildings. President Khan requested WRAP to share the comprehensive audit findings of Bangladeshi apparel factories with BGMEA.  He stated this information would assist in policy formulation for the industry and further solidify Bangladesh's position as a preferred global hub for ethical production. The meeting, held on July 7, also saw the presence of BGMEA Director Nafis-ud-Doula and WRAP's Manager of Administrative Operations, Tanjina Afrin.    

Bangladesh's vital textile sector is teetering on the brink of crisis, with industry leaders vehemently protesting a newly imposed 2 percent Advance Income Tax (AIT) on imported cotton and an increased specific tax on locally produced yarn. "We cannot bear this additional tax burden," said BTMA President Shawkat Aziz Russell during an emergency press conference held at Gulshan Club on Saturday, highlighting a confluence of challenges already plaguing the industry.  BTMA Directors Khurshed Alam, Abdullah Al-Mamun, Saleuzzama Khan, Badsha Mia, and Mohammad Ayub, along with former President of the Cotton Association Hossain Mahmud, Home Textile Association representative, and BKMEA Vice President Amor Powder, were present at the press conference. The Bangladesh Textile Mills Association (BTMA) has taken a drastic measure, halting the release of cotton containers from ports and is urging the government to immediately revoke these ‘self-destructive’ policies. The BTMA leaders raised alarm without the immediate withdrawal of the 2 percent AIT and a reduction of the specific VAT on yarn from Tk 5.0 per kg, domestic textile factories face imminent closure. Strong hatchery, skilled workforce vital for sustainable growth of poultry sector He cited soaring bank interest rates (up to 15-16 percent), higher corporate taxes and persistent uncertainty regarding gas and electricity supplies as critical factors undermining their operations. They also highlighted that this AIT policy will be benefited the neighbour country export yarn to Bangladesh as they (Indian traders) getting incentive to export yarn. The association emphasised the urgent need to protect local industries and safeguard employment. They argued that while the government may view these measures as revenue-generating, they will, in reality, plunge the textile sector into deeper distress, ultimately harming the national economy. The new impositions come at a time when the textile sector is already reeling from a multitude of issues, including: · Abnormal increases in gas and electricity prices · Significant reductions in cash incentives for exports · Uninterrupted energy supply shortages · Persistent currency devaluation Garment exports to non-traditional markets mark 6.79pc increase in July-May Compounding these woes, the Finance Ordinance 2025 for the fiscal year 2025-26 has further exacerbated the situation by increasing the specific tax on locally produced cotton yarn and yarn mixed with artificial and other fibers from Tk 3 to Tk 5 per kilogram at the production stage. This particular move is expected to severely impact the domestic spinning sector.

Bangladesh's apparel exports to the European Union (EU) witnessed a notable surge, reaching US$8.07 billion during the January-April period of 2025, up significantly from $6.51 billion in the same period of 2024. This impressive growth represents a 23.98 percent rise in the country’s readymade garment (RMG) exports, largely fuelled by a 19.71 percent increase in export volume. According to Eurostat, the EU’s global apparel imports also saw substantial growth in the first four months of 2025, rising by 14.21 percent to a total of $32.49 billion. This overall rise was accompanied by a notable 15.84 percent increase in volume, despite a slight 1.41 percent drop in average unit prices. Bangladesh's RMG exports show moderate growth, EU remains key market Bangladesh’s performance is particularly commendable for its rising unit prices across various categories within the EU, even as China maintains its leading position and Vietnam continues to post strong results. The sector, however, faces several challenges, including growing tensions in the US market and intensifying competition from China within the EU. Besides, the ongoing conflict between Iran and Israel poses significant concerns for businesses, causing trade disruptions and increased operational costs. Industry experts stress the importance of Bangladesh maintaining its competitive edge and planning strategically for sustained growth in the EU market. This includes strict compliance with forthcoming EU regulations, which are expected to influence the volume of work orders from 2025 onwards. At the same time, continued efforts to explore new markets are considered vital for diversifying Bangladesh’s export portfolio and reducing dependence on the EU and US markets. A comparative analysis of major apparel exporters to the EU during this period reveals substantial growth among several countries: China’s apparel exports to the EU reached $8.39 billion, up from $6.90 billion in the same period of 2024—an increase of 21.49 percent in value and a notable 7.37 percent rise in unit price.Vietnam posted a 15.62 percent growth, with exports totalling $1.48 billion, alongside a 5.68 percent increase in unit price. Bangladeshi apparel exports to US market grow slightly amid global market pressure India, Pakistan, and Cambodia recorded exports of $2.01 billion, $1.42 billion, and $1.56 billion respectively, with growth rates of 20.58 percent, 23.42 percent, and 31.78 percent. In contrast, Turkey experienced a 5.41 percent decline in apparel exports to the EU, totalling $3.10 billion during January-April 2025.

The Bangladesh Association of Pharmaceuticals Industries (BAPI) views the proposed extension and enhancement of duty and tax exemptions on the import of raw materials for the pharmaceutical sector in the FY2025-26 budget as a positive move.  The association in a press release said such decisions by the government will further strengthen the country's pharmaceutical industry. The proposed duty exemptions for importing raw materials used in Active Pharmaceutical Ingredients (API) will significantly help develop the API industry, it said.  BAPI also expresses hope that the pharmaceutical sector, with some additional incentives, can emerge not only as a key supplier for the domestic market but also as a major export-oriented industry. One additional issue the association highlighted is the current high duty on sandwich panels and laboratory furniture used in pharmaceutical investments. Previously, the duty rate was only 1%, but it has since increased significantly.  BAPI urges the relevant government authorities to address this matter and restore the previous low-duty rate for panels, particularly for new pharmaceutical projects. BAPI appreciates the government's commendable initiatives in this year’s budget.  However, it emphasizes that the successful implementation of these initiatives depends on the commitment and integrity of the officials at the National Board of Revenue and other relevant authorities. Alongside the proposed benefits, BAPI requests that the following points also be considered and included in the final budget: 1. Corporate Tax for Non-Listed Companies: The minimum corporate tax rate for non-listed companies was 25% in the previous fiscal year. However, it has been increased to 27.5% in the proposed budget. Given that most pharmaceutical companies are already struggling due to rising costs, this increase will impose an additional burden.BAPI urges the government to retain the previous 25% tax rate. 2. Personal Income Tax Threshold: The proposed budget does not raise the tax-free threshold for individuals, and some changes in conditions will result in increased tax for employees in the sector. This will effectively reduce their real income. BAPI requests the government to reconsider this matter. 3 Minimum Corporate Tax on Gross Turnover: The proposed budget sets a minimum corporate tax of 1% on gross turnover, up from the previous 0.6%. As many pharmaceutical companies are currently struggling to generate profits, this increase will severely impact their operational capacity. Companies that are not making profits will have to pay this tax from their capital, which is unjustifiable. BAPI strongly appeals to revert the minimum tax rate to its previous level.  

Gas supply to readymade garment (RMG) factories and other industries across the country is set to improve from today (Saturday), said Energy Adviser Muhammad Fouzul Kabir Khan on Saturday. The adviser made the announcement while speaking to journalists after observing the power and energy situation in several industrial zones, including Ashulia and parts of Gazipur. “This would have happened a day or two earlier, but it wasn't possible to unload gas from the ship due to rough seas. Gas supply will increase from today (Saturday). Already, 50 MMSCFD has been added and another 100 to 150 MMSCFD will follow,” he said.  RMG workers stage protest at Kakrail demanding arrears, Eid bonus He also disclosed that four additional LNG cargoes are being brought in to tackle the prevailing gas crisis. During his visit to Towel Tex Limited factory in the Chandra area of Kaliakair Upazila, Gazipur, the adviser acknowledged the concerns raised by industrialists. “We found some truth in the complaints raised by industrial owners regarding gas shortages. We are trying to make adjustments for this,” he said. Explaining the delay in stabilising supply, he added, “Due to unfavourable weather conditions at sea, storage was not possible. We hope the situation will improve by this evening, and it will be monitored.” In addition to efforts to enhance supply, the adviser warned of strict action against illegal gas connections. “Punitive measures will be taken against those involved in illegal gas connections, and such connections will be disconnected,” he said. Earlier, following an inspection of the Dhaka Palli Bidyut Samity-1 office, the advisor addressed the ongoing protests by Palli Bidyut Samity officials and employees. “A meeting will be held tomorrow to discuss the relationship between Palli Bidyut and REB. A committee led by the Vice-Chancellor of BRAC University has been formed. That committee will present its final report tomorrow. We will take necessary action after receiving that report,” he said. He urged stakeholders to refrain from disruptive activities. “We are working on these issues, and they will be resolved quickly. There is no benefit in holding processions and meetings over this. Such actions only cause harm. Earlier, electricity supply was stopped in about 26-27 locations. This was an act of sabotage. For that reason, the government was forced to take some measures.”  RMG workers must be paid bonus by May, salary by early June: Home Adviser The adviser was accompanied during the inspection by Titas Gas Managing Director Parvez Ahmed, Energy Ministry Secretary Saiful Islam, Palli Bidyut Samity Chairman Major General Azim and other senior officials from the ministry and relevant departments.

A former president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) on Wednesday urged the government to operate ‘Chittagong Port’ for 24 hours a day for smooth export-import activities. He said that the ready-made garment (RMG) export was happened due to the recent strike of the revenue board officials. Kazi Muniruzzaman, former president of BGMEA, said this while speaking at the unveiling of the manifesto of Sammilito Parishad, a platform contesting in the upcoming election of BGMEA. He also warned that if port operations are not maintained 24 hours a day, it will create complications in paying workers' salaries and bonuses before Eid-ul-Adha. "If goods are not delivered on time, payments will not come from buyers, making it impossible to pay workers' salaries and bonuses," Muniruzzaman stated. Customs houses to remain open during holidays to support RMG exports ahead of Eid "In this situation, if the port is not kept open 24 hours, the owners will not be able to bear that responsibility,” he pointed out. He emphasised the need to ensure uninterrupted port activities before Eid for the sake of the workers and urged the government to intervene swiftly. Md. Abul Kalam, panel leader of the Sammilito Parishad, presented a 12-point election manifesto, highlighting the need for timely, courageous, and experienced leadership to achieve the US$100 billion export dream for the ready-made garment industry. Kalam stated that the Sammilito Parishad's goal is to build a smart, sustainable, and future-oriented garment industry. To this end, they plan to form an 'SME Support Cell' for small and medium-sized factories, which will provide policy, financial, and legal assistance.  Furthermore, they will emphasise entry into the Middle East, Africa, and South America to diversify export markets.  Reducing over-reliance on Europe and America to mitigate global trade risks is also a key objective of the grouping. The council also called for seasonal incentives to ensure electricity and gas supply to the industry.  They also outlined plans for training in artificial intelligence, IoT, ERP, and ESG for workers and managers to prepare for 4th industrial revolution, and the establishment of a 'Green Funding Desk' for green financing.  RMG workers stage protest at Kakrail demanding arrears, Eid bonus For BGMEA members, they intend to launch an 'EPIC' one-stop support centre, where new entrepreneurs, women leaders, and SME enterprises will receive digital information and training services.    Additionally, to enhance the image of the garment industry in the global market, a 'Made in Bangladesh – Premium Edition' campaign will be launched to promote modern, sustainable, and high-quality products. Kalam affirmed that a mandatory monthly savings-based worker welfare fund would be established to protect workers in future crises. Simultaneously, he pledged to simplify compliance processes for SME factories by introducing a 'Unified Code of Conduct.' Faruque Hassan, former BGMEA president and chief coordinator of the Sammilito Parishad, highlighted their past achievements in leading the garment industry.  Economist Hasnat Alam also presented a comprehensive overview of the current state and future potential of the ready-made garment industry at the event.

Garment workers must be paid their Eid bonus within May and salary between June 1 and 3, Home Affairs Adviser Lt Gen (retd) Jahangir Alam Chowdhury instructed on Monday. “Garment workers must be given their bonus by the end of May. Salary must be cleared between June 1 and 3,” he said while talking to reporters after a meeting of the law and order coordination committee ahead of Eid-ul-Azha. He urged factory owners to accept the workers’ logical demands. The adviser warned that law enforcement agencies will take action if any attempt is made to block roads or disrupt public movement over irrational demands. Retired customs and VAT officers urge govt to revise new revenue ordinance Besides, he said, no buses, trains or launches would be allowed to carry passengers beyond their capacity during the Eid and the same rule will apply to vehicles transporting sacrificial animals. “There will always be various demands from different groups. We urge all ministries to address the justified ones. But no one should resort to irrational demands,” he said. Rizwana for developing habit of using cloth, jute bags instead of polythene The adviser urged all to raise their concerns from within their respective premises avoiding public inconvenience.    

India on Saturday imposed port restrictions on the import of certain goods, including readymade garments (RMG) and processed food items, from Bangladesh with immediate effect. The Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry, India has issued a notification in this regard. Dhaka, Tokyo outline areas of cooperation ahead of Prof Yunus’ Japan visit These restrictions came after Bangladesh restricted Indian cotton via sea ports, closing land ports, a diplomatic source told UNB. But, the Indian government said such port restrictions will not apply to Bangladesh goods transiting through India but destined for Nepal and Bhutan. The import of all kinds of RMG from Bangladesh shall not be allowed from any land port. However, it is allowed only through Nhava Sheva and Kolkata seaports, the notification reads. The import of fruit/ fruit flavoured and carbonated drinks; processed food items; cotton and cotton yarn waste; plastic and PVC finished goods, except pigments, dyes, plasticisers and granules that form input for own industries; and wooden furniture, shall not be allowed through any Land Customs Stations (LCSs)/ Integrated Check Posts (ICPs) in Assam, Meghalaya, Tripura and Mizoram; and LCS Changrabandha and Fulbari in West Bengal. The port restrictions do not apply to the import of fish, LPG, edible oil and crushed stone from Bangladesh. Malaysia reaffirns support to Bangladesh govt in its reform agenda A good amount of Bangladeshi exports to India is ready-made garments. Now they have to essentially go to only two Indian ports - Kolkata and Mumbai via Chattogram and this adds to the cost. Last month, the then National Board of Revenue (NBR) suspended the import of yarn from India through land ports. It said the import of yarn through the Benapole, Bhomra, Sonamasjid, Banglabandha and Burimari land ports will no longer be permitted. These ports were the primary entry points for yarn imports from India. Earlier in February this year, Bangladesh Textile Mills Association (BTMA), an organisation representing textile industry owners, demanded the suspension of yarn imports from India via land ports.

Labour and Employment Adviser Brig Gen (retd) M Sakhawat Hossain on Wednesday said he will request the home ministry to issue red alerts against the fugitive owners of six garment factories for failing to clear workers’ dues. “We discussed about six specific garment factories today — all of them have defaulted and pledged to pay the workers. Questions have been raised about how they will make the payments. We made it clear that the government or Bangladesh Bank will not provide any more funds. It’s up to them to decide how they’ll arrange the money,” the adviser said after a meeting at the secretariat. The adviser named the six factories — TNZ, Mahmud Denim, Style Craft, Dird Group, Generation Next, and Roar Fashion — as those that failed to fulfil their commitments. “There was unrest around these factories until Eid,” he added. He noted that many of the owners are reportedly absconding. “Some claim the owners are abroad, some say they’re in ICU, and others don’t know where they are. We’re requesting the Ministry of Home Affairs to issue red alerts against each of them,” he said adding that most of the owners are missing — the owner, the owner’s wife, their son — none are around. Sakhawat further said meetings will be held on Thursday [tomorrow] and again on April 28 with the concerned factories and their respective banks. Discussions will focus on whether they can liquidate assets to pay the dues, and if not, what alternative actions can be taken in coordination with Bangladesh Bank, the finance ministry, and the labour ministry. CIC orders bank account freezing of ad agency giant Asiatic He mentioned that the owners had committed to clearing dues by May 7 or 8. “They must pay the money. If they have to sell assets, they should. For those who are abroad, arrangements will be made to secure power of attorney through contacts to facilitate the sale of their assets,” he said. The adviser emphasised the need to verify whether the statements provided by banks and the factory owners align. “Some banks have extended excessive loans. We’ve asked Bangladesh Bank to investigate how this happened. Their representatives will be asked whether any investigation has been carried out, and if so, what progress has been made.” He also mentioned that some bank officials have already been identified for allegedly irregular lending practices. “Actions will be suggested against defaulters, and deadlines will be set to complete investigations,” he added.

Nearly all garment factories under the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) have resumed operations following the Eid-ul-Fitr holidays. According to a BGMEA statement issued on Saturday, 2,012 out of 2,024 factories – or 99.40 percent – have reopened as of Wednesday. The highest concentration of garment factories is in the Gazipur and Mymensingh regions, where 851 out of 854 units are currently in operation. In Savar, Ashulia and Jirani areas, 399 of 403 factories have resumed production. Besides, 186 factories are operational in Narayanganj, 320 in Demra, and 336 in Chattogram. Business leaders seek strategic negotiations to address tariff challenges BGMEA data also reveals that 2,019 factories have already disbursed salaries for February, with only five factories – four in Dhaka and one in Chattogram – yet to do so. As of now, 2,008 factories have paid salaries for March, either partially or in full. However, 16 factories are still pending full salary payments for the month, and 16 others have only paid partial salaries.