Bangladesh’s textile and garment industry, the backbone of the nation’s export economy, is teetering on the edge of a crisis due to an acute gas shortage.
At a joint press conference at Gulshan Club on Sunday, Bangladesh Textile Mills Association (BTMA) President Showkat Aziz Russell issued an urgent call to the Ministry of Energy and Mineral Resources to ensure an uninterrupted gas supply to the industrial sector, as previously promised, to safeguard a $70 billion investment in textiles and garments.
Joined by representatives from FBCCI, BGMEA, BKMEA, BCI, ICC Bangladesh, LFMEAB, BTTLMEA, and BPGMEA, Showkat Aziz also demanded a halt to recent gas price hikes for industrial and captive power plants, urging the government to craft a competitive, stakeholder-driven pricing policy.
“The textile sector, the engine of Bangladesh’s exports, is suffocating under a gas crisis that’s slashing production and doubling costs,” he said, warning of dire consequences for the economy if immediate action isn’t taken.
A sector in distress
Showkat Aziz painted a grim picture of an industry battered by multiple crises: a 300% gas price surge over recent years, electricity load-shedding, an 18% bank interest rate, a 37% US export duty, dwindling cash incentives, and a taka depreciation fuelling a working capital crunch.
“For one to one-and-a-half months, gas shortages have paralysed textile mills and garment factories, forcing some to shut down entirely,” he said.
Many factories, unable to operate normally, are air-shipping products to meet international deadlines, racking up crippling costs.
The crisis, ongoing for over three years, has slashed production capacity to 40–50%, doubling costs and eroding Bangladesh’s edge against global competitors. “Our local market is slipping to foreign players, and we’re losing relocation opportunities for global industries due to this fuel crisis,” Showkat Aziz warned, noting that Bangladesh’s banking sector lacks the capacity to support struggling mills.
Systemic failures fuel the fire
Showkat Aziz highlighted a sharp reduction in gas supply to industries, with the Titas network alone cutting 100 million cubic feet daily to prioritise electricity and fertilizer production. System losses, estimated at 20% due to uninstalled EVC meters, exacerbate the shortfall. “Despite repeated appeals to the Chief Adviser and government bodies, no solution has emerged,” he said, criticising recent “irrational” gas price hikes imposed without stakeholder consultation.
The lack of priority gas allocation for export sectors is particularly galling. “Textile and garment factories, the backbone of our $40 billion export economy, are running on fumes,” Showkat said.
He warned that continued disruptions could jeopardize $70 billion in investments, slash exports, strain foreign reserves, and trigger a financial sector crisis as mills struggle to repay loans and cover worker salaries ahead of Eid ul Azha.
A call for urgent reform
Showkat Aziz urged immediate steps to curb system losses, disconnect illegal gas connections, and halt profiteering by entities like BERC, Petrobangla, and Titas. He also called for VAT exemptions on gas supply stages and a medium- to long-term strategy to ensure reliable gas access. “Without urgent action, we risk losing jobs, exports, and economic stability,” he said, emphasizing the need for a collaborative pricing policy to restore competitiveness.