Gas Crisis Cripples Bangladesh Garment Industry

Bangladesh's garment industry is facing another significant challenge as a severe gas crisis has forced more factories to shut down. The country's ready-made garment (RMG) sector, already struggling with multiple challenges, including banking difficulties and rising non-performing loans, is now dealing with an intensified gas supply crisis since July.

According to factory owners, they have attempted to operate their plants using compressed natural gas (CNG), but restrictions imposed by Titas Gas are preventing them from doing so. The gas shortages have reduced industrial production by nearly half in some cases, and manufacturers are being forced to send goods by air, significantly raising transportation costs.

Bangladesh's Knitwear Manufacturers and Exporters Association president Mohammad Hatim stated that the decision by Titas Gas to instruct filling stations not to supply gas 'was not the right decision.' Business leaders also warn that the gas crisis has sent a negative signal to international buyers about Bangladesh's energy security.