Textile Sector Faces Investment Drought in 2023, says BTMA President
The Bangladesh Textile Mills Association (BTMA) President, Mohammad Ali Khokon, reported a significant lack of new investments in the country’s primary textile sector throughout 2023. This downturn is attributed to both internal and external factors, notably a severe energy shortage within the country and a global economic slowdown.
Khokon highlighted that, to his knowledge, there were no new investments in capital machinery in the country’s textile sector in 2023. He emphasized the prolonged shortage of gas, which led to a 50% reduction in production in 2022 and a further decline to 40% in the first month of 2024. Gas supply interruptions have impacted various industrial belts, contributing to this decline in production.
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Expressing concern, Khokon pointed out the irony of the government inviting foreign investors to contribute to special economic zones while struggling to provide a consistent gas supply. He warned that without addressing this issue, the country might not attract new investments.
Khokon called for the reinstatement of the gas price at Taka 16 per cubic meter and criticized the government for breaching its commitment to ensuring uninterrupted energy supply to the industry following the gas price hike in January 2023, which saw a substantial 88% increase.
The BTMA President’s remarks underscore the challenges facing the textile sector in Bangladesh and the need for addressing critical issues such as energy supply to stimulate investment and growth.