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Bangladesh Garment Industry Sees Optimism After Election

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  Published in Politics and Government on Wednesday, February 11th 2026 at 4:45 GMT by The Straits Times
      Locales: BANGLADESH, UNITED STATES

DHAKA - Bangladesh's crucial garment industry, the backbone of the nation's economy, is cautiously optimistic following the recent national election. After weathering a storm of challenges including international tariffs, political instability, and increasing production costs, stakeholders are hoping the newly secured term for Sheikh Hasina as Prime Minister will usher in a period of stability and growth.

The garment sector is colossal in scope, contributing over 80% of Bangladesh's total exports and employing upwards of four million people - a figure representing a significant portion of the country's workforce. For years, however, this vital industry has been battling numerous headwinds. Rising trade barriers imposed by key export destinations - primarily the United States and the European Union - have steadily eroded Bangladesh's competitive edge in the global market. These tariffs, coupled with sporadic internal strikes and protests disrupting production schedules, have created a precarious environment for manufacturers.

The recent election, which saw Sheikh Hasina achieve a record fourth consecutive term, is being viewed by many within the BGMEA (Bangladesh Garment Manufacturers and Exporters Association) as a potential turning point. Shahidullah Azim, Vice-President of the BGMEA, stated that the election outcome provides "a sense of stability, which is crucial for attracting foreign investment and sustaining growth." This stability is particularly welcome after periods of political unrest that have historically hampered long-term planning and investment within the sector.

However, optimism is tempered by persistent challenges. While political stability is a welcome development, the industry continues to grapple with escalating production costs. Simultaneously, international buyers are increasingly demanding lower prices, squeezing already tight profit margins for manufacturers. This pressure forces a difficult balancing act - maintaining quality and worker welfare while remaining competitive in a price-sensitive global market.

The Rana Plaza tragedy of 2013, which claimed the lives of over 1,100 garment workers due to unsafe building conditions, remains a stark reminder of the crucial need for improved worker safety and the upholding of labor rights. While significant strides have been made in factory inspections and safety protocols following the disaster, concerns persist regarding consistent implementation and enforcement. International brands and organizations continue to demand transparency and accountability throughout the supply chain, placing further pressure on Bangladeshi manufacturers to prioritize worker well-being.

Looking ahead, stakeholders are urging the new government to prioritize key infrastructural developments. Specifically, improvements to port facilities and road networks are considered vital to streamlining logistics and reducing transportation costs. Inefficient infrastructure currently adds significantly to the overall cost of production and hinders the ability to meet delivery deadlines consistently. Modernizing these systems will not only benefit the garment industry but will also facilitate broader economic growth.

Beyond infrastructure, easing trade barriers remains a top priority. The BGMEA is actively lobbying for preferential trade agreements and reduced tariffs with key importing nations. A "level playing field," as emphasized by Azim, is essential for Bangladeshi manufacturers to compete effectively against rivals in countries with more favorable trade conditions. The government's role in negotiating and securing these agreements will be critical to the long-term sustainability of the sector.

Furthermore, the BGMEA is calling for the creation of a stable and predictable business environment. This includes streamlining regulations, reducing bureaucratic hurdles, and ensuring consistent policy implementation. Predictability allows businesses to make informed investment decisions and fosters long-term growth.

The garment sector's success is undeniably intertwined with the overall economic prosperity of Bangladesh. It serves as a major source of foreign exchange earnings and provides employment for millions of families. Sustaining this growth is not merely an economic imperative but also a social one, impacting the livelihoods of a substantial portion of the population. The hopes are high that, with a stable government and strategic investments, Bangladesh's garment industry can overcome its challenges and continue to thrive as a global leader in apparel manufacturing.