[🇧🇩] Textile & RMG Industry of Bangladesh

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[🇧🇩] Textile & RMG Industry of Bangladesh
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The Faces Behind ‘Made in Bangladesh’

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Lamia Karim

The Daily Star (TDS): How did you transition to your new research focus on the garment sector in Bangladesh, given your previous extensive research on the prospects and implications of microloans in the country? What prompted this apparent shift from rural to urban settings in your research field?

Prof Lamia Karim (LK):
I am an economic anthropologist specializing in political economy and women's labor. My primary focus lies in the anthropological dynamics surrounding women's participation in the workforce, particularly the recognition of women as visible agents within the labor market. Historically, women have engaged in informal labor within the domestic sphere, contributing to their families and supporting their husbands. For instance, a male vendor selling food in the market often relies on female family members to prepare the food. Consequently, women's labor remains both invisible and uncompensated. Feminist scholars have long advocated for the acknowledgment and inclusion of unpaid work within economic policy.

My interest in this field is also shaped by my personal background. I grew up in a family where women were actively engaged in professional roles; my great-aunt (my grandmother's sister) was a published poet in the 1930s, my mother's first cousin was the first female photographer in what was then East Pakistan, and my mother, along with several of her female cousins, held academic positions as professors and principals of women's colleges. Thus, the sight of women pursuing professional careers was integral to my upbringing. However, I also witnessed the labor of women hired to work in our household—specifically, cooks and cleaners—whose work was often regarded as a natural extension of their identity rather than as respectful employment.

These life experiences made me particularly interested in examining the effects of both waged and unwaged work on women and how social forces condition us to view women's work. Bangladesh is home to two significant industries that center on women's work: the microfinance sector pioneered by Nobel Laureate Professor Muhammad Yunus and the overseas apparel production industry. Both sectors have emerged as prominent examples of women's work as empowerment, a debatable point, within the framework of neoliberal capitalism. Therefore, I perceive my intellectual trajectory not as a shift but as a natural progression of my scholarly pursuits.

TDS: How do you interpret the trajectory of the garment sector in Bangladesh, which originated from a global capitalist restructuring that heavily relied on exploiting cheap labor, and incidents of so many accidents eventually evolving into the primary contributor to the nation's economy? Despite witnessing a semblance of women's empowerment, how do you address the prevalent issue of widespread exploitation of women, which has unfortunately remained integral to this sector?

LK:
The exploitation of women's labor within the manufacturing industry has a deeply entrenched and troubling history. An examination of industrialization in 19th-century England reveals how poverty forced women, men, and children to the cotton mills of Manchester, where they endured minimal wages and horrific work conditions. A pivotal moment in labor history occurred in the United States in 1911, when the Triangle Shirtwaist Factory fire claimed the lives of 143 workers, in factory conditions reminiscent of what occurred at the Rana Plaza factory collapse that killed over 1,100 workers.

Bangladesh is no different. A complex web of actors—including global retailers, government entities, factory owners, BGMEA, the families of these workers, and Western consumers—contributes to the systemic exploitation of working-class women, thereby facilitating the extraction of labor to yield profits and affordable goods.

The answer to your question is also embedded in cultural attitudes. We are a very class-based hierarchical society. Upper and middle-classes tend to treat people from the lower economic strata as less than them. Many factory owners, managers, supervisors, see the workers as lower than them on the social scale, and they take it for granted that they can treat workers poorly, such as using vile language or to physically hit them. Firing workers under all sorts of fictional pretexts and defrauding them of wages is another way that workers get exploited.

To tackle the problem of violence against women at work, the way forward is the unionization of garment workers, a movement that remains significantly underrepresented in the Bangladeshi apparel industry. Legal NGOs and Human Rights Organizations should be watchdogs scrutinizing the factories for compliance to safety standards. The government too has a crucial role to play in supporting workers' rights. If all these actors could come together, viable change is possible.

TDS: What have your research findings revealed about the daily experiences of women laborers in the apparel manufacturing industry? You mentioned that instead of facilitating sustainable improvements in their lives, the neoliberal economy has perpetuated precarity in their work. Could you elaborate on how this has impacted the lives of these women?

LK:
One is the precarity of global supply chains where workers are at the mercy of the global economy. During the pandemic for example, stores closed in the West, factories had to close in Bangladesh, making many workers lose their earnings. This dependence on the global economy is precarity at its worst manifestation because the workers who are the bottom of the supply chain do not control what happens to them. There are no safety nets to support them. Importantly, these workers do not understand how supply chains work, and how a sudden loss in demand in the US or EU will have tremendous effect on their livelihoods.

In conversation with Lamia Karim, Professor of Anthropology at the University of Oregon, Eugene, and author of Castoffs of Capital: Work and Love Among Garment Workers in Bangladesh (University of Minnesota Press, 2022), which received the Gregory Bateson Book Prize Honorable Mention 2023.

Precarity at the factory—low wages, long hours, poor quality of housing, poor diet, abuse at the hand of factory management, is constantly compounding precarity in worker's lives. It is well-known that the wages they receive do not cover their living expenses. The women also support their extended families, by extension, another twenty million people (mothers, father, siblings) indirectly depend on their wages. They send home money for a brother's education, mother's medical expense, building a new roof, and so on. Their private lives are also precarious. Most of these women enter the workforce around the average age of fifteen. They are recent rural-to-urban migrants. They are usually brought to the city by a relative or a procurer. Most of them come to Dhaka with no prior knowledge of what it means to live in the city and how cruel and unforgiving the city can be. Many of the young women fall in love with men they meet in the city, who unbeknownst to them may already have a wife. These relationships are tragic and often involve severe domestic abuse. The men in their lives make constant demands on their wages, and if they do not hand the money over, the women are severely beaten. With no family elders, such as a father or an uncle to intercede for them, these women have to cope with these situations on their own. So, one on the one hand, they have attained certain autonomy, they earn wages, they have physical mobility, go to a movie, sit outdoors with friends and have some fuchka, met someone romantically, all the things that would be denied to them in rural society. On the other hand, they make many difficult decisions on their that often gets them into serious domestic precarity.

TDS: In your research, you explored the private lives of garment workers, delving into their intimate spheres of love, marriage, and romance. This perspective offers a novel way to understand them beyond the confines of economic analysis. How do you perceive the generational shifts among workers in this sector, from the macroscopic view to the individual human experience?

LK:
I wanted to understand the attitudinal differences between older and younger women workers. The older women entered in the 1990s, some even in 1980s, at very low wages. All the older women shared a similar background. They came from landless and impoverished families. They described the before and after of coming to work as "Before I could not eat, now I can eat, before I could not send my child to school, now I can send my child to school, before I lived in a house with a leaking roof, now I live in a house with a roof that does not leak." The women had basic literacy of class three or five in a rural school. They could not read their hiring documents, making it easy for factory managers to fire them by making them sign on a document they could not read. Most of the older women came as married women with children, but their husbands had abandoned them. The women had to raise the children on their own. By the time they entered the factory, they already had many familial responsibilities. These women saw themselves as poor women whose goal was to get their children educated and moved up the economic social ladder. After twenty plus years of working, these older women's bodies and hearts were broken.

The younger women were entering with higher levels of education, often between class eight to ten. They could read their hiring documents. The younger were mostly single when they came from the village. They also came from poor families, but they entered factory work at higher wages. They would buy new salwar-kameezes, go to the beauty parlors to get their eyebrows threaded, openly hang out with their boyfriends. They did not have children to take care of. Familicidal responsibilities were less burdensome for them. Some of them told me that they would delay marriage because they wanted to experience life and make some money. These younger women exercised more sexual autonomy. They saw themselves as moving up the social ladder. They always called themselves middle-class and they would call the factory "office" and not karkhana. They eschewed the term kormojibi or sromik.

To the younger garment factory workers, belonging to the middle class signaled the exit from their poverty-stricken rural backgrounds. Factory employment had moved them up the economic scale. Similarly, taking the label of middle class set them apart from the poorer people they encountered in the city. As garment workers they were not like the women who worked as day laborers, cleaners, maids, cooks, and the like. They worked in brick buildings, operating industrial machines. that endowed them with a sense of pride and achievement when compared to their poorer rural and urban counterparts. They were the new symbol of "Made in Bangladesh" that is youthful, shiny, and hopeful. The combination of these factors gave them a sense of a new world of opportunities and their entrance into middle-class status.

TDS: Could you share insights from your conversations with the 16 interlocutors who are older or have aged out of the workforce about their initial aspirations? Additionally, could you discuss the differences observed in their ultimate realities, particularly regarding the changes in life after reaching a mature state within the garment sector?

LK:
The sixteen older women, between the ages of 45-55 approximately, I interviewed had earned a limited form of sovereignty over their lives. They left abusive spouses, stood up to factory management when they faced workplace injustices, and tried to create better lives for their children through education. For these factory women, class mobility was a cherished goal that they saw as worth sacrificing for. Their goal was to help their children reach the new middle class that was unfolding through industrial capitalism in Bangladesh. Yet only two sons of the older female workers had made it to the new middle class, one as an accountant at a factory, and the other as an IT technician, the rest of their children had either entered the garment workforce or they were in other low-paying jobs as vendors, shop-keepers, guards. These older women recognized the limits of upward mobility in a deeply hierarchical society due to their lack of social capital. As one older woman said to me, "My son has received his bachelor's degree. He wants to work in a government office, but I do not have the contacts to help him. He has ended up working at a store." But their voices remained laced with traces of hope—if not for them, then for their children.

These older women entered the workforce when wages were very low, so they had little savings by the time they were forced out of factory work. They suffered from poor health. Their eyesight, fingers, arms were affected from long-term factory work. Kidneys were affected from not drinking water at work to avoid taking toilet breaks, something frowned upon by line supervisors. Many of them suffered from lung infections from breathing the air inside factories that is full of debris of clothing. Many workers were provided masks, but workers did not wear them because they felt hot and uncomfortable. It was a zero-sum game for these women.

TDS: Have you noticed any significant changes in the trade union movement or apparent enhancements in safety measures within this sector following the Rana Plaza incident?

LK:
The trade union movement, still insignificant compared to the scale of the workforce, has become more visible after the Rana Plaza factory collapse. After the accident, the global retailers and EU did not have a fig leaf to cover their complicity in ignoring the safety conditions in the factories they were sourcing from. EU, Canada, Australia, and US to a lesser degree, became vocal about the right to unionize and the safety accords were written and implemented, with their many limitations. Trade union leaders have told me that now they have a voice with factory owners, BGMEA, and the government. This is an ongoing struggle.

I did not inspect factories since that was not what I was doing. Safety measures vary across factories. There are factory owners who are forward looking and want to improve work conditions; there are others who think of workers as disposable bodies. The answer to your question requires investigative journalism.

TDS: As automation advances, Bangladesh's impending graduation from the category of least developed countries (LDCs) looms, coinciding with a gradual decline in women's participation in the sector. What are your thoughts on the garments industry as a whole, and what potential changes, both minor and monumental, do you envision that could reshape the prevailing landscape?

LK:
With the garment sector accounting for Bangladesh's largest export, generating $47 billion in 2023 and employing approximately four million workers whose earnings sustain the Bangladeshi economy. To effect meaningful change, it is essential to improve wages, enhance workplace safety, and provide accessible housing, healthcare, childcare, and education for their children. Factory owners resist these improvements, citing pressure from Western buyers who are reluctant to increase costs.

Bangladesh will face increased competition from other LDCs. The Ethiopian government sought to attract Western buyers by guaranteeing wages as low as $22 per month for workers. Conversations with several garment factory owners regarding the potential loss of business to competing countries revealed a prevailing belief in their logistical advantages. However, as evidenced by the presence of garments labeled "Made in Ethiopia" in H&M stores, capital will invariably pursue profit at the expense of workers unless robust unionization efforts are undertaken. Such collective action represents a crucial avenue for genuine empowerment and systemic change.

I would recommend diversification from the garment industry to other sectors, and to invest in the domestic market. Here I am arguing for import substitution, so we are not wholly dependent on the vicissitudes of the global economy. While China has transitioned from low-wage apparel manufacturing to high-value sectors such as semiconductor processing, Bangladesh remains stuck on its garment industry. The nation's economic landscape necessitates a forward-looking approach, emphasizing diversification away from apparel manufacturing and the training of workers for more sustainable employment opportunities. But there is an intangible paradox here between the welfare of workers and the welfare of capital. The logic of capitalism is to chase lowest production costs across the globe, devouring the poor and dispossessed on its journey. To harness unfettered capitalism, one needs a systemic change to the economic structure. I do not see that on the horizon.

My goal in writing Castoffs of Capital was to humanize these women, to glimpse their world through their eyes, as they graciously allowed me into their lives. I envisioned a future where a Western consumer, poised to purchase a simple tee-shirt or a pair of jeans, could not only see the garment but also feel the pulse of those who made it. I wanted them to visualize the women, to empathize with their stories, and to reflect on the profound consequences of their consumer choices. In this way, I hoped to weave a deeper understanding of the interlocking human tapestry that sustains our global economy.

My heartfelt thanks to Kormojibi Nari who assisted me with the research on older workers.

The interview was taken by Priyam Paul of The Daily Star​
 

US labor delegation, BGMEA discuss RMG workers’ rights in Dhaka
FE Online Report
Published :
Nov 24, 2024 23:27
Updated :
Nov 24, 2024 23:27

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A high-level meeting between the US Department of Labor and the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) discussed workers' rights in Bangladesh's readymade garment (RMG) sector.

The discussions focused on key issues related to the RMG sector, with a special emphasis on workers' rights, workplace safety, labour law reforms, and market access.

The meeting between the delegation from the Bureau of International Labor Affairs of the US Department of Labor and the BGMEA was held at The Westin in Dhaka on Sunday.

The delegation included Kelly M Fay Rodríguez, Special Representative for International Labor Affairs; Thea Lee, Deputy Undersecretary for International Affairs; and Anne M Zollner, Chief of the Office of Trade and Labor Affairs.

It also included Christy Hoffman, General Secretary of UNI Global Union; Scott Nova, Executive Director of the Worker Rights Consortium; and senior representatives from major global fashion brands, including GAP Inc, PVH Corp, and VF Corporation.

The BGMEA side was headed by Administrator Anwar Hossain, along with members of BGMEA’s Support Committee and BGMEA leaders.

During the meeting, BGMEA Administrator Anwar Hossain apprised the delegation of the substantial progress made by the RMG industry in recent years, particularly in the areas of workplace safety, labour rights, and reforms to labor laws.

The BGMEA Support Committee members highlighted the ongoing efforts of the government of Bangladesh and the garment industry to further enhance workers' rights and welfare.

Appreciating the progress made by Bangladesh, particularly in improving labor conditions, the US delegation emphasised areas where further improvements can be made, including the amendment of the Bangladesh Labor Act (BLA).

The meeting underscored the importance of continued collaboration between Bangladesh, the US government, and industry stakeholders to build a more sustainable, fair, and resilient RMG sector.​
 

US team expresses concerns over labour rights
Staff Correspondent 25 November, 2024, 22:58

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The visiting United States’ delegation led by the special representative for international labour affairs at the US Department of State, Kelly M Fay Rodriguez, on Monday expressed concerns over unfair labour practices, complex trade union registration processes and legal actions against garment workers and labour leaders involved in labour movements.

The delegation members expressed the concerns at a meeting with senior officials of the labour ministry at the Bangladesh Secretariat in the capital Dhaka on the day.

The US delegation also demanded a full implementation of 11 points, provided by the Biden administration in April 2024, within a short time to protect the workers’ rights in Bangladesh, labour secretary AHM Shafiquzzaman said at a briefing following the meeting.

‘We have conveyed that significant progress has been made on all issues outlined in the 11-point plan, and most of the requirements will be met within a short period of time,’ he said.

Regarding the minimum membership threshold for the trade union registration, the labour ministry informed the US delegation that the government has decided to reduce the threshold to 15 per cent from existing 20 per cent, the labour secretary said.

The ministry has also conveyed that a labour grievance monitoring committee has been established to address the unfair labour practices and anti-union discrimination within the timeframe outlined in the standard operating procedure, Shafiquzzaman mentioned.

The labour ministry informed the delegation that the government is eagerly interested to work on workers’ rights issues with the US.

‘It is crucial now for rebuilding the trust of global stakeholders, which has been eroded by past instances of noncompliance with our commitments,’ the labour secretary said.

He said that a single labour act for industrial units within and outside export processing zones would be considered after conducting an impact assessment through a third-party engagement.

Shafiquzzaman said that the government would fulfil all its labour-related commitments by March 2025, ahead of the next governing body meeting of the International Labour Organisation.

During the briefing, he also said that an advisory council committee, led by labour adviser M Sakhawat Hossain, was formed to review the labour and business conditions at the Beximco Industrial Park.

The committee will assess the impact of unrest at the industrial park on nearby industrial establishments and public life and will formulate recommendations for appropriate actions, Shafiquzzaman added.​
 

Cixing hosts ‘Bangladesh Night’ to boost knitwear collaboration
FE ONLINE DESK
Published :
Nov 26, 2024 21:29
Updated :
Nov 26, 2024 21:32

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Ningbo Cixing Co, Ltd, a global leader in knitting machinery and technology, hosted ‘Cixing Bangladesh Night Products Promotion Meeting’ at hotel in capital Dhaka on Tuesday.

The event brought together key industry stakeholders, including the owners and executives of over 300 influential sweater production companies in Bangladesh.

BGMEA Fashion Technology University (BUFT), a well-known fashion education institution in Bangladesh, also attended to jointly explore cooperation in high-end talent in the field of knitting industry.

In a significant move towards developing future talent, Cixing signed series of cooperation agreements with local famous companies, including BSKL and Cixing, Knit Asia and Cixing, Bettex and Cixing, NEXUS and Cixing, TWELVETEX and Cixing, and SWEATERTECH and Cixing, which marks a new chapter in the cooperative relationship.

A captivating grand fashion show was also held to release the latest work of the Cixing sweater design team, showcasing Cixing's products, technology, and unique industrial advantages, underlining its potential to revolutionise the local industry and establishling deeper and long-term partnerships with new and old customers.

Frank Sun, Chairman of Ningbo Cixing Group, delivered a speech, saying that as the world's leading provider of intelligent knitting equipment and digital knitting factory solutions, Cixing Group has been committed to promoting innovation and development in the knitting industry.​
 

Garment export to EU market risks 20pc fall
Fallout from EU-Vietnam FTA, Bangladesh's graduation
FE REPORT
Published :
Nov 28, 2024 00:51
Updated :
Nov 28, 2024 00:51

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Bangladesh's garment export to the European Union market may fall 20 per cent under a combined effect of the country's LDC graduation and the EU-Vietnam Free Trade Agreement (EVFTA), economists say and show remedies.

Vietnam's ready-made garment (RMG) export is currently subject to average 9.6-percent duty on the EU market that will hurtle down to zero-rated taxing by 2027 by virtue of EVFTA. On the contrary, Bangladesh is likely to count a jacked-up 12-percent duty after 2029 for the lapse of duty-free access to the EU under the Union's EBA programme, as a status-change cost the country's graduation from the least-developed country (LDC) club.

This twin trade-preference erosion, stemming from Vietnam's enhanced access under the EVFTA and the tariff hikes facing Bangladesh after its graduation, scheduled for 2026 with a three-year transition period until 2029, could significantly undercut the latter's export competitiveness on its most vital market, economists predict.

Besides, Bangladesh is lagging behind in implementing policy to develop backward linkages, especially for MMF-based garments, while Vietnam has rigorously taken right policy by making significant simplification of business environment and opening up trade and investment.

As such, Bangladesh may also face strong competition from Vietnam on account of MMF-based apparel exports to the European Union.

The statistics and observations were made Wednesday at a dissemination event on 'The EU-Vietnam Free Trade Agreement Implications for Bangladesh's Export Competitiveness' organized by Research and Policy Integration for Development (RAPID) and FES Bangladesh at a city hotel.

Economic relations division secretary Md Shahriar Kader Siddiqy was chief guest at the event moderated by RAPID executive director Dr M Abu Eusuf. FES Bangladesh resident representative Dr Felix Gerdes and Business Initiative Leading Development chief executive officer Ferdaus Ara Begum also spoke.

The EVFTA, effective since 2020, grants Vietnam significant trade advantages, including zero-duty access to the EU market, replacing its previous Standard Generalised Scheme of Preferences (GSP) tariffs.

In addition to tariff eliminations, the EVFTA addresses non-tariff barriers, opens markets for services and investment, and aligns Vietnam with the EU's labour and environmental standards, collectively strengthening its competitive edge and investment appeal.

Speaking there, RAPID chairman Dr MA Razzaque said the combined impact of EVFTA and LDC graduation on Bangladesh's exports to the EU is simulated a nearly 20-percent fall in apparel exports and a one-third reduction in leather, textiles, and processed-food exports.

"Macroeconomic effects would be that Bangladesh's GDP is projected to decline by 1.0 per cent driven by LDC graduation-related tariff hikes and trade diversion under the EVFTA," he explains, to underscore necessary preparedness.

Bangladesh remains dominant in apparel exports, accounting for 21.7 per cent of the EU's non-EU apparel imports, largely due to duty-free access under the Everything But Arms (EBA) scheme and relaxed Rules of Origin (RoO) requirements.

Bangladesh absorbed much of the EU market share lost by China as it shifted away from low-value apparel production, while Vietnam benefited more from this shift on the US market, he told the meet.

The country's share of the EU apparel market rose from 6.0 per cent in 2010 to 22 per cent in 2023, compared to Vietnam's modest growth from 2.0 per cent to 4.7 per cent over the same period.

However, in the United States, where both countries face identical tariffs, Vietnam captured a significantly larger slice of market cake, rising from less than 1.0 per cent to 18 per cent, compared to Bangladesh's slow-pace increase from 3.3 per cent to 9 per cent.

The RAPID made a number of recommendations, including engaging with the EU to negotiate an additional extension of the post-LDC graduation transition period by 3-5 years to soften tariff hike and pursue relaxed rules of origin and safeguard provisions to retain apparel-sector preferences under GSP plus and fulfilling GSP+ eligibility requirements by aligning with the EU's 32 international conventions.

Other suggestions include initiating discussions for an FTA or Comprehensive Economic Partnership Agreement (CEPA) with the EU to secure long-term market access and attract FDI and undertake reforms in labour standards, trade facilitation, and regulatory alignment to meet EU requirements and enhance competitiveness.

To enhance firm-level competitiveness, the recommendations include support to industrial upgrading and innovation with policies such as tax incentives, low-interest financing, and supply-chain development for ancillary industries.

Export Promotion Bureau vice-chairman and BGMEA administrator Anwar Hossain told his audience that the quality and reliability of power supply remain a significant challenge for all industries, particularly for the textiles, as many of them are unable to fully operate due to gas shortages.

"Despite government policies allowing bonded-warehouse facilities for partial exporters, the National Board of Revenue (NBR) has not extended this benefit to furniture exporters, which hampers the potential for export diversification and limits opportunities for growth in potential sectors."

Dr Mashrur Reaz, Chairman of Policy Exchange Bangladesh, said traditional business practices would no longer sustain growth at the time when global regulations and consumer preferences are changing rapidly.

"The US trade policies as regards China may remain unchanged, rather intensified, and the ongoing trade war would create new business opportunities for Bangladesh," he said, raising the question how much Bangladesh takes advantage largely depends on its preparations.

Abu Sayed Belal, trade counsellor at the EU Delegation in Bangladesh, said Vietnam has adopted effective policies focusing beyond just market preferential access and implemented the policy reforms to streamline processes, which have been instrumental in attracting higher levels of foreign direct investment or FDI.

He is, however, of the opinion that Bangladeshi exporters are satisfied with their export performance while local manufacturers benefit from a highly protected domestic market.

"This protectionism that discourages innovation and risk-taking, undermining Bangladesh's competitiveness in the international market, should be avoided," he said, suggesting Bangladesh should prioritise regional connectivity and establish more trade agreements with its trading partners.

Fazlee Shamim Ehsan, Executive President of Bangladesh Knitwear Manufactures and Exporters Association (BKMEA), however, differed on this score. Bangladesh's export growth might slow down and export volume is unlikely to decline, he said.

"China and Vietnam have labour shortage as workers there are not willing to work in garment factories as they consider the jobs not prestigious, which could lead a shift in orders to Bangladesh," he added.

Explaining difficulties like banking, shortage of gas and electricity and inconsistency in policies they face, he said, "Everything is against business environment."​
 

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