Leaders of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) held an emergency meeting on Tuesday with Bangladesh Bank Governor Dr Ahsan H Mansur to express deep concern over the severe disruptions caused by five financially distressed banks, which are seriously affecting the country’s garment export sector.
The meeting, held at the central bank’s headquarters, was led by BGMEA President Mahmud Hasan Khan and attended by several senior industry figures, according to a release.
The delegation voiced frustration over how the liquidity crisis in these specific banks is directly hindering the financial operations of garment factories, the nation’s largest export earners.
According to the BGMEA, these five banks—though not publicly named—are failing to disburse export proceeds to garment exporters on time, even after the export earnings have been received. Additionally, the banks are unable to open new Letters of Credit (LCs), a critical function for importing raw materials and maintaining production flow.
“This has created a financial bottleneck for many garment exporters,” said President Mahmud Hasan Khan. “Factories are facing cash flow crises, production is being disrupted, and most alarmingly, workers’ salaries are being delayed—leading to rising unrest in the industrial zones.”
Other members of the BGMEA delegation included Vice President Md. Shihab Uddoza Chowdhury, Directors Mohammad Abdur Rahim, Fahima Akter, A.B.M. Shamsuddin, and several prominent factory owners. They warned that if the situation persists, a significant number of garment factories could become financially nonviable within a short time, putting thousands of jobs at risk and threatening national export performance.
“This is no longer just a banking issue; it’s a national economic concern,” said one BGMEA director. “We’re seeing a breakdown in confidence—not only among factory owners but also among international buyers who are losing faith in the reliability of Bangladesh as a sourcing destination.”
The BGMEA emphasized that this crisis is damaging the country’s reputation on the global stage and undermining the long-standing trust of foreign buyers. The leaders urged Bangladesh Bank to take swift, targeted action to stabilize the affected banks or at least ensure that exporters’ dues are paid on time.
In response, Governor Dr. Mansur assured the delegation that the central bank is taking the issue seriously and is preparing immediate measures to address the liquidity problems. He noted that arrangements would be made to ensure the release of exporters’ funds in the short term, with a broader plan to resolve the banking crisis in a more permanent and systemic way.
BGMEA leaders welcomed the governor’s assurances but stressed the urgency of implementation. “We cannot afford delays. The livelihood of millions of workers and the credibility of our industry are on the line,” said Khan.