Reasons for closure of garments and factories in Bangladesh – The political and economic reasons behind the closure of Bangladesh’s garments and factories are complex. After the fall of the Sheikh Hasina government, the sector suffered a major shock. Although reliable data on the full numbers are difficult to come by, some reports indicate that hundreds of garment factories have closed, leaving millions of workers unemployed.
Pattern and status of garment sector
Bangladesh’s garment industry is the country’s largest export sector. It earns more than 80% of the country’s total exports. Thousands of factories operate in this sector, employing about 4 million workers. However, political instability and the collapse of the government led to the closure of many factories. Most of these were medium and large garment factories, producing garments mainly for Europe and the United States.
Political reasons
Political Instability: The country’s business environment has been severely affected by political instability and conflict following the fall of the government.
After the change of government, political parties have changed various policies, which has created uncertainty for businesses.
Uncertainty of company owners: Many businesses are forced to close down due to political risk and mismanagement.
Owners have closed establishments for their own protection and for fear of political reprisals.
Strikes and violence: After the change of government, trade unions have repeatedly started strikes and violence, which has hampered the operation of factories.
These movements have in many cases been directly political, making it difficult for owners to continue their businesses.
Reasons for closure of garments and factories in Bangladesh
economic reasons
Economic downturn: Foreign investors are withdrawing from Bangladesh due to political instability, as a result of which the garment sector has suffered greatly.
Export orders declined and foreign exchange crunch emerged.
Decline in export demand: Economic slowdown in major markets such as Europe and the US has reduced demand for garments, which has reduced the income of garment factories in Bangladesh.
Rising cost of raw materials: Rising costs of raw materials in the global market and supply chain disruptions have increased production costs, making it difficult for many factories to survive.
overall effect
Due to the closure of garment factories one after another, the country’s economy has had a huge negative impact.
Millions of workers have become unemployed, leading to social unrest and the risk of rising poverty rates.
Bangladesh’s garment industry is a very important sector, which acts as the backbone of the country’s economy.
Without political stability and economic reforms, recovery of the sector will be difficult.
