United News of Bangladesh

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

Bangladesh’s export earnings extended a steady month-on-month rise in December 2025, climbing to $3.97 billion, even as shipments fell sharply from a year earlier amid global headwinds. Data from the National Board of Revenue (NBR) show exports grew 1.97 percent from November, signalling continued recovery in monthly momentum.  Earnings were, however,  14.25 percent lower than December 2024, underscoring persistent pressure on the country’s external sector. For the first half of the 2025–26 fiscal year (July–December), total exports stood at about $24 billion, down 2.19 percent from $24.53 billion recorded in the same period last year. Read more: From backbone to decline; Bangladesh’s jute exports plunge The readymade garment (RMG) sector remained the backbone of export earnings.  In December alone, apparel shipments generated $3.23 billion, matching the overall monthly growth rate of 1.97 percent.  Both knitwear and woven garments continued to dominate export receipts. Several non-RMG sectors also showed resilience during the month.  Exports of specialised and home textiles, agriculture and fisheries, and frozen and live fish and vegetables posted positive growth. Industrial goods — including chemical products, rubber, leather, bicycles, and jute and jute-based goods — also contributed to December’s performance. The United States, Germany and the United Kingdom remained Bangladesh’s top three export destinations. Shipments to these markets rose 7.14 percent, 18.08 percent and 14.50 percent, respectively, on a monthly basis. Signs of diversification also emerged, with strong gains in several emerging markets. DITF to boost exports, economic activity, jobs: Prof Yunus Exports to the United Arab Emirates increased 25.39 percent, while Australia and Canada posted growth of 21.33 percent and 9.13 percent, respectively. Headwinds and Global Pressures Industry analysts attribute the year-on-year decline and broader fiscal pressure to a convergence of external challenges, including weakening global demand and the imposition of reciprocal tariffs by the United States. Rising competition from China, which has shifted focus toward markets where Bangladesh traditionally holds an advantage, along with higher domestic production costs and ongoing geopolitical uncertainties, continues to weigh on the country’s export outlook. Read more: NBR launches e-VAT module for paper-based returns

Bangladesh’s Ready-Made Garment (RMG) industry has set a new global benchmark in sustainable (green) manufacturing, securing a record-breaking 38 new LEED certifications in 2025. This marks the highest number of green factory certifications achieved by the sector in a single year, further cementing the country’s position as the world leader in eco-friendly apparel production, said Bangladesh Apparel Exchange, an organization established to promote the apparel industry. The 2025 achievement is defined by a significant leap in quality. Of the 38 newly certified factories, 22 achieved the prestigious LEED Platinum rating, while 11 earned Gold and 5 received Silver. LEED (Leadership in Energy and Environmental Design) certification is the world's most widely used green building rating system, recognizing projects that meet high standards for sustainable design, construction, operation, and maintenance, covering energy efficiency, water conservation, materials, and indoor air quality, with levels from Certified to Platinum based on points earned, providing a framework for healthier, cost-saving, and environmentally friendly buildings. The LEED developed by the non-profit US Green Building Council (USGBC). The apparel sector experts said that notably, no factories settled for basic certification, signaling a strategic shift from simple regulatory compliance toward high-level environmental excellence. Read more: Bangladesh consolidates global leadership with 268 LEED-certified RMG factories With these latest additions, Bangladesh now hosts a total of 270 LEED-certified garment factories. The country’s green portfolio currently includes-114 Platinum facilities, 137 Gold facilities, 15 Silver and 4 Certified facilities This represents the highest concentration of top-tier LEED-certified factories globally. Industry leaders attribute this progress to long-term investments by manufacturers and strategic guidance from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). "The momentum gained in 2025 reflects a proactive alignment with evolving global standards," said Mohiuddin Rubel, Former Director, BGMEA and Managing Director, Bangladesh Apparel Exchange. "As international buyers and regulators, particularly in the EU, demand lower environmental footprints, our manufacturers are leading the way in carbon efficiency and water stewardship." Read more: Bangladesh sets new record with 36 factories earning LEED certification in a year The record-breaking performance is seen as a preparation for the next phase of global trade requirements, including carbon pricing mechanisms and digital transparency frameworks. By integrating green buildings with circular production models, the Bangladeshi RMG sector is positioning itself as not only the largest but also the most future-ready apparel exporter in the world.

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.