According to Bangladesh Textile Mills Association President Mohammad Ali Khokon, there were notably few new investments made in the nation’s main textile sector in 2023.
Several internal and foreign issues, most notably the country’s chronic energy crisis and the global economic slowdown, are blamed for this decline.
Speaking at a press conference in Dhaka, Khokon noted the prolonged gas shortage in Bangladesh’s textile sector, which resulted in a 50% reduction in production in 2022, but he also emphasized that, to his knowledge, there were no new investments in capital machinery in the country’s textile sector throughout 2023.
He added that production had dropped to 40% in the first month of 2024 due to disruptions in the gas supply that affected several industrial belts.
Khokon voiced his concerns, pointing out that it was ironic that the government was encouraging foreign investors to support special economic zones while having trouble supplying a steady supply of gas.
He issued a warning that the nation might not draw in fresh investment if this problem is not resolved.
He demanded that the gas price be restored to Taka 16 per cubic meter and accused the government of having broken its promise to the sector to provide a steady supply of energy after the gas price spike in January 2023—a significant increase of 88%.
