The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) on Wednesday said almost all of its member factories have cleared workers’ salaries for February and paid Eid bonuses.
BGMEA President Mahmud Hasan Khan said 99.91 per cent of factories have disbursed February wages, while 99.81 per cent have completed payment of festival allowances.
He added that although not legally required, more than 64 per cent of factories have also provided partial advance wages for March to help workers manage travel expenses during the Eid holidays. He made the remarks at a press briefing in the capital.
However, BGMEA data shows that the sector is facing mounting challenges. Export earnings declined by 3.73 per cent in the first eight months of the current fiscal year.
The industry is under “triple pressure” from a global economic slowdown, geopolitical instability – particularly in the Middle East – and rising international competition, the BGMEA president said.
As indicators of the strain, he noted a 6.79 per cent drop in the opening of back-to-back letters of credit (LCs) for raw material imports and a 1.76 per cent fall in the average unit price of garments.
He also highlighted rising production costs, saying gas prices have increased by 286 per cent and electricity tariffs by 33 per cent over the past five years, while uninterrupted energy supply remains a persistent challenge.
Source: UNB