Over 400 garment factories shut down in 3yrs: Minister

Commerce Minister Khandakar Abdul Muktadir informed parliament on Thursday that more than 400 ready-made garment (RMG) factories have closed across the country over the past three fiscal years.
Between July 2023 and June 2026, 282 closures were recorded under the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), alongside 120 units registered with the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA). The government is currently compiling a complete list of all defunct units.
Responding to a question from ruling party MP Md Ruhul Amin (Chuadanga-2) during a session presided over by Speaker Hafiz Uddin Ahmed, the minister cited a compound of global and domestic shocks for the industry's distress. 
Geopolitical conflicts, including the fallout from the Russia-Ukraine war, the Middle East crisis, and US-Iran tensions, coupled with a broader global economic downturn, have squeezed order volumes.
Small and medium-sized enterprises (SMEs) have borne the brunt of the slump. International buyers increasingly favor larger units due to compliance oversight challenges in smaller operations, Muktadir explained. 
Domestically, severe gas shortages have left many units unable to run at full capacity, while surging energy tariffs, higher bank interest rates, and increased wage bills have eroded profit margins.
To buffer the sector, the government continues to offer targeted export incentives. Export-oriented textile manufacturers currently receive a 1.5% alternative cash incentive in lieu of bonded warehouse and duty drawback facilities, with an additional 0.5% special rebate for Eurozone exports. SME units across knitwear, woven, and sweater categories receive a 3% incentive, alongside a baseline 0.3% cash rebate for the broader sector.
Looking ahead, Muktadir warned that Bangladesh’s upcoming graduation from Least Developed Country (LDC) status threatens preferential market access, putting roughly $17.5 billion in annual exports at risk. 
To soften the transition, Dhaka is aggressively pursuing trade pacts, having already concluded an Economic Partnership Agreement (EPA) with Japan while advancing Comprehensive Economic Partnership Agreement (CEPA) negotiations with South Korea.

Saudi Arabia reclaims top remittance spot
In a separate written submission, State Minister for Expatriates’ Welfare and Overseas Employment Nurul Haque reported that Saudi Arabia overtook the United States as Bangladesh’s largest remittance source in FY26.
Expatriates in Saudi Arabia remitted $5,848.87 million over the fiscal year, followed by the UK at $5,071.99 million and the US at $4,733.13 million. Overall remittance inflows expanded by more than $5.26 billion year-on-year.
Meanwhile, responding to a query from BNP MP SM Jahangir Hossain, State Minister for Labour Ariful Haque Choudhury confirmed that plans are underway to establish a national ‘Employment Exchange’ to connect jobseekers with prospective employers.

70,000 disaster response volunteers ready
State Minister for Disaster Management and Relief M Iqbal Hossain informed the House that 70,000 out of a targeted 100,000 volunteers have been trained for urban disaster and earthquake rescue operations. 
The ministry has also mapped private-sector heavy machinery to supplement state response capabilities during emergencies.

Mirza Abbas attends House for first time
Senior BNP leader and political adviser to the prime minister Mirza Abbas (Dhaka-8) attended the 13th Parliament for the first time, five months into its tenure.
Arriving in a wheelchair due to ongoing medical treatment abroad, an emotional Abbas addressed the House using an adjacent microphone, paying tribute to the late President Ziaur Rahman and former prime minister Begum Khaleda Zia while reaffirming his commitment to public service.