Packaging industry faces skilled manpower shortage: Trade body chief

Bangladesh’s packaging and accessories sector needs 20,000-50,000 skilled workers but cannot source them locally, forcing businesses to recruit from Sri Lanka, India and China, said Mohammad Shahriar, president of Bangladesh Packaging and Accessories Manufacturers and Exporters Association (BPAMEA).

“We need 20,000 to 50,000 educated personnel in our sector, but we cannot find them. We have to hire people from Sri Lanka, India and China,” he said.

He was speaking at the closing ceremony of a three-day international training programme named  “Sustainable and Quality Packaging for Local and Global Markets,” held at Banani Club in the capital on Monday, organised by BPAMEA in collaboration with the Asian Packaging Federation (APF).

Shahriar said the global packaging market offered enormous opportunities, but Bangladesh’s share remained negligible. Citing Bloomberg estimates, he said the global paper packaging market was worth around $700 billion, while the overall packaging market was valued at $1.3 trillion.

Despite years of neglect and inadequate policy support, local entrepreneurs had developed the sector and demonstrated their capacity during the Covid-19 pandemic by supplying packaging materials and accessories to the garment and other manufacturing industries, he said.

Bangladesh can meet a substantial share of the packaging needs of its world-class garment industry locally. However, the sector has yet to achieve the expected progress in exports, despite having production capacity, Shahriar said.

He called for stronger government and National Board of Revenue (NBR) support, along with a more business-friendly environment, to help the industry realise its export potential.

BPAMEA is working with Dhaka University and other institutions to develop industry-oriented curricula.

He urged public universities to align their courses with industry needs.

Shahriar also called for developing printing, packaging and accessories as standalone industries rather than treating them merely as supporting sectors. Businesses must first have a viable operating environment before they can make further progress towards sustainable and environmentally friendly packaging, he said.

He stressed the need for greater coordination among industry bodies, including the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and Bangladesh Textile Mills Association (BTMA).

He also demanded equal free-of-cost (FOC) facilities for locally produced accessories and trims, arguing that domestic suppliers should enjoy the same opportunities as foreign suppliers.

“You can bring in accessories from abroad on an FOC basis, so why can’t I provide them locally on the same basis?” he said.

Expressing concern over Bangladesh’s export performance in European markets, Shahriar said China, Vietnam and India had recorded export growth over the same period. Greater unity among businesses and cooperation with government agencies were essential to strengthening exports and foreign exchange earnings, he added.

Former home and commerce minister Air Vice Marshal (retd) Altaf Hossain Chowdhury attended the programme as the chief guest.

Former Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Faruque Hassan said India’s suspension of transshipment facilities for Bangladesh had negatively affected the country’s export trade.

At the same time, complications in importing raw materials and policy ambiguities at the National Board of Revenue (NBR) are creating challenges for businesses, he added.

Referring to the suspension of goods transportation through India and restrictions on importing yarn through land ports, Faruque Hassan said the facility for parcel shipments through land ports had been introduced after considerable efforts. However, the facility to import yarn through land ports was subsequently withdrawn, he noted.

He said India later suspended transshipment facilities for Bangladesh, disrupting the country’s export operations and causing financial losses for businesses.

Faruque Hassan said Bangladesh’s RMG exports to the Indian market had once reached nearly $1 billion annually. However, the figure has since declined to between $500 million and $600 million. He expressed concern that exports to the market could fall further in the future.

According to him, the potential impact on the country’s export sector must be carefully assessed before making policy decisions on imports and transportation. Restrictions on raw material imports and goods movement can disrupt production and weaken Bangladesh’s competitiveness in international markets, he added.

Bangladesh Employers’ Federation president Fazlee Shamim Ehsan and former Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA) president Moazzem Hossain Moti also spoke.