Bangladesh’s readymade garment (RMG) industry—the backbone of its economy—is facing one of the gravest crises in its history, with export earnings declining for five consecutive months and major international markets slipping away. A recent report titled Bangladesh Perspectives claims that the roots of this economic downturn lie in the so-called “July conspiracy” of 2024, which led to violence, political instability, and the ouster of an elected government.
According to the report, Bangladesh is losing garment export markets in 26 countries, including the United States, the United Kingdom, and members of the European Union. Citing data from the Export Promotion Bureau (EPB), it notes that exports to Germany and France have fallen by more than 10 percent. The situation is even more alarming in parts of Eastern Europe: exports to Croatia have plunged by 77 percent, to Romania by 35 percent, and to Slovakia by nearly 23 percent. Orders from non-traditional markets such as Russia, Turkey, Mexico, India, and Australia are also steadily declining.
The report argues that this crisis cannot be attributed solely to a global economic slowdown. Competing exporters such as Vietnam, India, China, and Cambodia have not experienced comparable losses during the same period. Instead, it points to Bangladesh’s post-July political turmoil, incidents of arson at factories, and administrative uncertainty as key factors driving foreign buyers away. International clients, the report says, prioritize stability and reliability—qualities currently perceived as lacking in Bangladesh.
Criticizing the interim government led by Dr. Muhammad Yunus, the report alleges that the administration has failed to take effective measures to resolve persistent gas and electricity shortages, rising raw material costs, stagnation in the banking sector, and the ongoing dollar crisis. It further accuses the government of focusing more on political retribution and suppressing dissent than on economic recovery. A lack of coordination with industrialists and labor representatives has, it says, compounded the crisis.
As export orders dwindle, many factories are on the brink of closure, directly threatening the livelihoods of millions of garment workers. The report warns that countless families could be pushed into extreme uncertainty and poverty as a result. While acknowledging Dr. Yunus’s experience in microfinance, it argues that his lack of foresight in managing the national economy has intensified the crisis.
The report concludes that economic recovery is impossible without political legitimacy. It calls for restoring normal gas and power supplies, stabilizing the banking sector, and rebuilding Bangladesh’s international image through the establishment of an elected, mandate-holding government. It also urges that those responsible for the “July conspiracy” be brought to account, warning that without such steps, saving the garment industry may prove impossible.
