BGMEA Seeks Tk1,400cr Soft Loan Before Eid to Pay Wages

Logo of Bangladesh Garment Manufacturers and Exporters Association (BGMEA)

Garment manufacturers have urged the swift release of pending government incentives and a Tk1,400 crore low-interest loan to ensure workers receive salaries and festival bonuses ahead of Eid-ul-Fitr.

In a letter submitted to Bangladesh Bank Governor Ahsan H Mansur, industry leaders said factories are facing mounting cash-flow pressure as the holiday approaches.

A two-member delegation delivered the request during a meeting on Monday. Afterwards, association representatives said roughly Tk5,700 crore in export incentives for the ready-made garment sector remains unpaid.

They warned that delays could disrupt timely payment of wages and Eid bonuses. The proposed soft loan, they said, would cover about two months of salaries on easy terms.

According to industry estimates, monthly wage expenses total around Tk700 crore, meaning about Tk1,400 crore would be required for two months. Leaders also noted that woven and sweater factories receive comparatively lower incentives, leaving them particularly vulnerable.

Production has been further disrupted in recent weeks. Nearly 25 days in February and March were affected by public holidays and election-related closures, making it difficult for factories to pay two months’ wages after only about 35 effective working days.

The central bank governor assured the delegation he would raise the issue of unpaid incentives with the relevant authorities. On salary support, he advised them to contact the Ministry of Finance. Industry representatives described the response as positive.

Priority for Smaller Factories

Manufacturers also called for special support for small and medium enterprises, arguing that the current “first-in, first-out” system for distributing incentives disadvantages smaller firms.

They proposed a dedicated fund for SMEs, with budget allocations prioritised for smaller factories before the remainder is distributed to larger ones. Officials said the central bank instructed relevant departments to examine the proposal and expressed hope it could be implemented in the next incentive cycle.

Industry leaders noted they had already contacted finance authorities, and the meeting with the central bank was part of broader policy coordination.

Explaining why such requests often arise before Eid, they said the present situation is unusually difficult. Political tensions, labour unrest and election-related uncertainty have slowed industrial activity. They also cited pressure on exports linked to tariff measures introduced by US President Donald Trump.

Export growth has remained negative for seven consecutive months, they said, stressing that rapid financial support is essential to maintain stability in the country’s largest export sector.