Bangladesh’s garment industry has suffered a 30-40% decline in production capacity over the past two weeks due to worsening gas shortages, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Mahmud Hasan Khan said.
Speaking in Dhaka, he said gas supply to the national grid had fallen to around 2.65-2.7 billion cubic feet per day, well below demand.
The crisis intensified after an Excelerate Energy-operated floating LNG terminal in Moheshkhali was shut following a fire on July 21, reducing gas supplies by around 450-500 million cubic feet per day.
Mahmud said the production losses were significant, but maintaining the confidence of international buyers was an even greater concern. The government has indicated that gas supplies could improve from August 8-9, he added.
Garment exports stood at $3.89 billion in July, about 2% lower than the same month a year earlier. Mahmud said the sector remained resilient but warned that prolonged energy shortages could affect export performance.
He also said more than 100 garment factories had closed over the past two years, resulting in around 40,000 job losses amid multiple economic and policy challenges.
