All is not well with Bangladesh’s garment manufacturing sector. Still struggling to recover from the loss caused by a month-long political unrest and euro devaluation, stakeholders are in a fix again, thanks to the rise in power and gas tariffs. This has pushed up the cost of production and result and reduced margins for them. They say it will have a negative impact on their competitiveness in the global market.
Abdus Salam Murshedy, President of Exporters Association says prices of power and gas have gone up by 2.93 per cent and 26.29 per cent respectively. It will result in a high cost of manufacturing and this, in turn, will add to declining export earnings that already prevail in the sector. The situation is going to be worse now.
Concerned over the ongoing crisis, Dhaka Chamber of Commerce and Industry (DCCI) stated that apart from manufacturing, FDI inflow the country will also bear the brunt with a rise, owing to the fact that foreign investors avoid investing in a market facing utility crisis. It may be noted that the textile and garment sector in Bangladesh is the biggest user of power and gas.