Nearly all garment factories in Bangladesh have disbursed February wages and Eid bonuses ahead of Eid-ul-Fitr, offering relief to millions of workers, according to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
BGMEA President Mahmud Hasan Khan shared the update at a press briefing held at the association’s Uttara office on Wednesday.
He said 99.91 percent of factories have already paid February salaries, while payments in the remaining two factories are currently underway.
Eid bonuses have been cleared by 99.81 percent of factories, with only four still in the process.
In addition, 64.03 percent of factories have provided partial advance wages for March, despite there being no legal obligation to do so.
The BGMEA arranged the briefing to highlight the latest status of wage and allowance payments to workers ahead of the festival.
To reduce congestion on highways during the Eid travel rush, factories are being granted holidays in phases. Around half of the factories had already declared holidays by March 17, and the rest are expected to follow within the next two days.
Despite the smooth payment situation, the garment sector is facing a challenging period this fiscal year.
BGMEA said export earnings declined by 3.73 percent in the first eight months of FY2025-26. During the same period, the opening of back-to-back letters of credit (LCs) for raw material imports fell by 6.79 percent, while the average unit price of garments dropped by 1.76 percent.
The association cited global economic slowdown, geopolitical tensions and rising competition in international markets as key pressures on the industry.
It also noted that volatility in global energy prices, higher transportation costs and ongoing supply chain disruptions have further complicated the situation. Continued tensions in the Middle East are adding new uncertainties to global trade.
On the domestic front, rising costs remain a major concern. Over the past five years, gas prices have increased by 286 percent and electricity tariffs by 33 percent, yet uninterrupted energy supply is still not sure.
High interest rates, liquidity shortages in banks and a lack of working capital are also putting pressure on factory operations.
Khan said factory owners have shown strong commitment to workers by ensuring timely payments, even amid financial strain. In many cases, entrepreneurs arranged funds on their own or took additional loans to meet obligations.
He added that a small number of factories had faced acute financial difficulties, but BGMEA coordinated with owners, banks and labour groups to resolve the issues.
“As far as we know, there is no BGMEA-listed factory where February wages remain unpaid,” he said.
Khan credited the government’s timely support, including special loan facilities on easy terms and the quick release of Tk 2,500 crore in cash assistance, which helped ease the liquidity crunch.
He thanked Prime Minister Tarek Rahman, Finance Minister Amir Khasru Mahmud Chowdhury, Labour and Employment Minister Ariful Haque Chowdhury, the Bangladesh Bank governor and the labour ministry secretary for their support.
In closing, he urged transport operators to ensure safe travel during the Eid rush, calling on drivers to be cautious and prioritise passenger safety.
He also requested stronger highway monitoring to prevent passengers from being transported in goods vehicles and reduce the risk of accidents.