Bank sector restructuring essential to overcome RMG crisis: Rizvi

BNP Acting Secretary General and Prime Minister’s Political Adviser Advocate Ruhul Kabir Rizvi on Saturday called for restructuring the banking and financial sectors to resolve the ongoing crisis in the country’s textile and garment industries.

Speaking at a discussion on the measures for resolving the garment sectors problems, Rizvi said the banking sector had suffered extensive damage during the previous government’s tenure.

Despite limited resources, the banking and financial sectors must be restructured to ensure the necessary financing for industries, the BNP acting secretary general added.

The Association of Engineers Bangladesh (AEB) organised the discussion at the auditorium of the Institution of Engineers, Bangladesh (IEB), in the capital. A reception for the newly elected committee of Institution of Textile Engineers and Technologists (ITET) was also hosted on the occasion.

‘Action needed to identify and resolve the textile sector’s challenges’

Ruhul Kabir Rizvi said the textile and ready-made garment industries were among Bangladesh’s major sources of foreign exchange earnings. He stressed that the sector’s problems must be specifically identified and effective measures taken promptly to resolve them.

Entrepreneurs are facing multiple challenges, including energy and electricity shortages, rising electricity prices, limited access to bank loans and financing, complications in opening letters of credit (LCs), and the need to meet international buyers’ compliance requirements.

Referring to the global situation and the energy crisis, he said disruptions to energy supplies caused by international developments and wars were harming the country’s industrial sector. Energy and electricity shortages had become major obstacles for the textile industry. He stressed the need for effective initiatives to maintain production and sustain the sector, which supports a large number of jobs.

LDC graduation may bring ‘new challenges’

Rizvi warned that Bangladesh’s graduation from the list of least developed countries (LDCs) could create new challenges for the textile and ready-made garment industries.

He said European and American buyers might not remain as interested in purchasing Bangladeshi products after the country graduates from LDC status. He also emphasized the importance of ensuring adequate financial support so businesses can meet international buyers’ compliance requirements.

He further stated that safe and improved working conditions for workers must be ensured alongside compliance with environmental standards. Otherwise, international buyers could lose interest in purchasing products from Bangladesh.

Call to reopen and modernize closed factories

Expressing optimism about transforming state-owned industrial enterprises into profitable businesses, the BNP leader said closed factories must be reopened and initiatives taken to increase productivity through modernization.

He said state-owned factories could become profitable if qualified individuals were appointed to responsible positions and the facilities adapted to modern technologies.

He also remarked that engineers’ professional skills and experience could play an important role in this process.

Rizvi highlights social protection programs

Referring to the government’s various social safety-net initiatives, Rizvi said the prime minister had introduced several programs, including Family Cards, Farmers’ Cards, Expatriate Cards and Health Cards.

He added that efforts were underway to expand the social safety-net system by providing allowances to imams, muezzins and representatives of other religious communities. He expressed hope that these initiatives would contribute positively to the country’s overall development.

Addressing the engineers, he said patriotism was the fundamental principle of nationalist ideology. Engineers had an important role to play in rebuilding and developing the country.

He said Bangladesh could be transformed into a modern and productive nation within a relatively short period if people worked collectively for social and national welfare, rising above their individual interests.

At the event, Rizvi congratulated the newly elected members of the ITET committee. He also extended his best wishes to the candidates contesting the Institution of Engineers, Bangladesh elections scheduled for November, expressing hope that all participating candidates would perform well.