STAR BUSINESS REPORT

The apparel industry and other major export sectors of Bangladesh are being left with unsold products due to reduced buying orders from abroad, according to various businesspeople.

Orders have decreased significantly in most garment factories across the country, which is a major concern as the segment accounts for some 80 per cent of the country’s export earnings.

“So, the government needs to take immediate action to mitigate the current economic crisis,” ‍said Shahidullah Azim, vice-president of the Bangladesh Garment Manufacturers and Exporters Association.

One of the major root causes of this crisis is the country’s lack of foreign reserves. So, if export-oriented sectors are provided with proper support it is obvious that they can in turn earn remittance for the country,” he added.

Azim was speaking at a conference on the “Current Economic Situation Worldwide: Challenges and Action Plans”, organised by the France-Bangladesh Chamber of Commerce and Industry (CCIFB) at The Westin Dhaka yesterday.

Hossain Khaled, managing director of Anwar Group, said they strongly believe that if businesspeople work together and address these problems, they can be solved. “The damage is still not done and so, it is still manageable,” he added.

Khaled said that it is not the time to focus on economic growth as cost cutting should take priority. This includes improving the efficiency of factories, ports and other sectors to optimise local resources. he government on Wednesday reached a preliminary agreement with the International Monetary Fund (IMF) over a $4.5 billion loan programme, putting to bed all suspense on whether a deal would be struck with the multilateral lender.

“We have secured some financing with a policy that we don’t know yet but knowing the IMF, I hope they have put in place some safeguards and adjustments to make the situation more stable,” said Ahsan H Mansur, executive director of the Policy Research Institute.