President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), Mohammad Hatem, has said that the country’s export-oriented manufacturing sector is in deep crisis due to persistent gas shortages and disruptions in the banking system.
In an interview with Bangladesh Pratidin, he stated that the gas crisis has made it impossible to operate industrial machinery, while banks are failing to support the sector—resulting in daily financial losses.
“Power supply issues exist too, but the gas crisis is far more serious for industries,” Hatem noted. “Factories are being forced to shut down production due to the unavailability of gas. Right now, the crisis is at its peak. There was a period when supply was stable, but in recent days, the situation has worsened in areas like Dhaka, Narayanganj, Ashulia, and other industrial zones. In some places, gas pressure is zero; in others, it’s just 0.5 or 1 PSI. It’s impossible to operate factories under such conditions, so we’re shutting down machinery.”
The BKMEA president also criticised banks for what he described as "deliberate non-cooperation" with the industrial sector. “There is an ongoing struggle with banks. They are delaying back-to-back LCs (letters of credit) and even closing accounts when payments are overdue. Even after receiving export orders, banks are not issuing the required LCs. In some cases, factories are made to go back and forth for 20 days. By the time the product is ready, buyers claim the shipment date has been missed and demand either air shipment or a discount—causing us substantial financial losses.”
Hatem urged immediate intervention to resolve both the energy and financial crises affecting the country’s most vital export sector.
Bd-Pratidin English/FNC
