PHOTO: BKMEA

STAR BUSINESS REPORT

Double-digit bank lending rates will be brought down to a tolerable level to make them more investment-friendly, Commerce Minister Khandakar Abdul Muktadir said yesterday.

Industries such as textiles cannot survive with high-cost financing under the current double-digit interest rate regime, the minister said.

Muktadir was speaking at the inaugural ceremony of the four-day Bangladesh International Textile, Knitting and Garment Industry Exhibition (BTKG Expo 2026), held at the International Convention City Bashundhara in Dhaka.

Energy shortages and high interest rates, ranging between 13 and 14 percent, remain major challenges for the garment and textile sectors, he added.

Bangladesh requires around 4,300 million cubic feet per day (MMCFD) of gas, while domestic production stands between 1,700 and 2,300 MMCFD, with an additional 900 MMCFD supplied through imported liquefied natural gas (LNG).

This leaves a deficit of around 1,400 to 1,700 MMCFD. To address this gap, the government is willing to increase LNG imports.

Infrastructure limitations also remain a challenge. Currently, the country has two floating storage and regasification units (FSRUs) with a combined capacity of around 1,100 MMCFD, operating at about 90 percent efficiency.

The government plans to invite tenders for additional FSRUs to expand gas supply and support gas-based industries, he said.

Emphasising the importance of energy security, he said any disruption in fuel supply would severely affect industrial production and overall economic activity.

In the longer term, the government is prioritising renewable energy and plans to fast-track the generation of 10,000 MW of solar power.

The minister said the government is taking steps to simplify licensing procedures to facilitate business. He noted that obtaining multiple licences -- around 25 to 26 at present -- can take months or even years, discouraging foreign investment.

He added that efforts are underway to streamline bond and tax-related procedures to make them more business-friendly and reduce harassment, according to a statement from the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).

Organised jointly by the BKMEA and Inforchain Digital Technology Co Ltd, the expo will continue until May 2, showcasing machinery and technology related to the textile, knitwear, and garment sectors.

BKMEA President Mohammad Hatem presided over the inaugural ceremony, while Exhibition Convener Fazlee Shamim Ehsan and Inforchain Executive Director Spencer Lin also spoke.

Around 900 exhibitors from nearly 28 countries, including Bangladesh, are taking part in this year’s exhibition.

The event features about 1,200 booths spread across roughly 20,000 square metres.

Companies from countries such as Canada, China, Taiwan, Belgium, France, Hong Kong, India, Indonesia, Japan, Vietnam, Malaysia, Turkey, and the United Arab Emirates are showcasing their latest products and technologies.