RMG factory production temporarily halted at 400 sites due to banking complications, according to BGMEA.

Government-led policy intervention is needed to facilitate the resumption of operations in these manufacturing facilities

, and Administrator

2025 September 15 . 8:07 PM

1 min read

Factory production halted due to banking complications as reported by BGMEA, impacting around 400... — Factory production halted due to banking complications as reported by BGMEA, impacting around 400 RMG establishments.

RMG factory production temporarily halted at 400 sites due to banking complications, according to BGMEA.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has called for policy support from the Bangladesh Bank to help reopen approximately 400 ready-made garment (RMG) factories that have ceased production due to banking sector issues.

During a meeting on 7 September at the BGMEA Complex in Uttara, the association's president, Mahmud Hasan Khan, along with 70 members, discussed the potential reopening of these factories and their significant employment implications.

The BGMEA believes that the right policy support could enable these factories to reopen, potentially providing employment for an additional 100,000 workers.

Members proposed extending the term for default loans from three to 10 years, acknowledging the current economic challenges that make short-term repayment difficult. A more tolerant exit policy was also discussed to allow affected entrepreneurs to leave the business with dignity.

BGMEA Vice President Md Shehab Udduza Chowdhury, Director Faisal Samad, BGMEA Standing Committee on Exit Policy Chairman Asif Ibrahim, and Standing Committee on One Stop Sale Chairman Mozammel Haque Bhuiyan were present at the meeting.

The BGMEA emphasised that the policy support provided by Bangladesh Bank should not be limited to large exporters; it should also include small and medium-sized factories. There are no relevant search results identifying any specific companies or organisations that have proposed policy support by the Bangladesh Bank for these enterprises.

The ready-made garment industry in Bangladesh is facing significant banking sector-related problems, and the BGMEA's call for policy support comes at a critical time. The meeting, chaired by President Mahmud Hasan Khan, was a significant step towards addressing these issues and finding solutions to revive the industry.