Bangladesh’s critical textile and readymade garment (RMG) sectors are grappling with a severe energy crisis as dwindling gas supplies disrupt production, placing an estimated US $70 billion in investments at risk and endangering the country’s export-driven economy.
In key industrial hubs such as Narayanganj, Gazipur, Bhulta, Maona, and Tongi, production in many textile and garment factories has dropped to just 30–40% of normal capacity due to low or zero gas pressure. The crisis comes despite recent government hikes in gas tariffs and promises of improved supply.
Textile manufacturers rely heavily on gas to generate electricity, power spinning machinery, and produce steam essential for fabric dyeing. Israq Spinning Mills Ltd in Gazipur, for example, has been operating at less than half capacity for over a week. Similarly, Little Group chairman Khorshed Alam reported a drastic fall in daily yarn output.
Energy Crisis Hits Textiles
According to the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), the sector needs over 2,000 million cubic feet of gas per day but is currently receiving only about 1,000 mmcfd. The primary textile sector, covering spinning, weaving, dyeing, and finishing, accounts for more than US $25 billion in investments, while the garment industry contributes over US $30 billion—making up the backbone of the country’s export earnings.
Compounding the crisis is uncertainty over recent US tariffs on Bangladeshi imports, temporarily paused for 90 days. Western buyers are reportedly hesitant, delaying new orders and causing a slump in local yarn demand, further pressuring manufacturers.
BKMEA Vice President Mohammad Hatem has called on the government to accelerate the import of liquefied natural gas (LNG) to stabilize supply. The Bangladesh Textile Mills Association (BTMA) warns of widespread shutdowns and daily losses of approximately Taka 2.5 million per mill, with over 500 spinning mills at risk of closure if the crisis persists.
Industry leaders stress that this is just the latest in a series of shocks, including the COVID-19 pandemic, the Russia-Ukraine war, high inflation, and the depreciation of the Bangladeshi Taka—from 85 to 122 per US dollar in two years—which has squeezed working capital and increased operational costs for import-dependent manufacturers.
Unless immediate action is taken, experts warn that Bangladesh’s textile and garment industries—employing millions and driving national exports—face a potential long-term setback.
