No garment factory has so far shut down due to the ongoing energy crisis, said Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). He said the gas supply situation has improved, although it will take several more months to assess the actual impact of the crisis.

He made the remarks at a press conference held at the BGMEA Complex in Uttara, Dhaka, on Thursday (September 17).

The BGMEA president said the gas supply situation has improved, with supplies increasing compared with the past few days. “No factory has closed due to the power or energy crisis,” he said. However, the full impact of the energy shortage will become clearer after at least another three months.

Mahmud Hasan Khan said the impact of any disruption in the garment industry is not immediately visible. A decision to shut down a factory also cannot be made overnight. Considering factors such as completing orders already in the pipeline, paying workers their legally required compensation and meeting ongoing bank liabilities, it generally takes around six months of planning to close a factory.

He said that according to BGMEA data, no factory had closed due to the energy crisis over the past two months. However, its actual impact will be clearer in the next three to four months. At the same time, if a factory shuts down now because of an incident or accident that occurred six months or a year ago, it would not be appropriate to attribute the closure to the current energy crisis.

Speaking about the energy crisis, Mahmud Hasan Khan said the reduced gas pressure had severely disrupted backward-linkage industries, including dyeing and washing units. However, following a recent meeting between the business community and the prime minister, a decision was announced to restore gas supplies to industries to their previous levels, and the measure has since been implemented.

He said garment factories normally operate for around eight to 10 hours a day under normal circumstances. Due to the energy crisis, however, many businesses have had to spend an additional five hours on operations and use alternative fuels, increasing their operating costs. Despite this, entrepreneurs have tried to ensure that products are shipped on time.

The BGMEA president said short-, medium- and long-term plans are needed to keep gas supplies stable. A presentation on the issue has already been made to the Ministry of Energy. They believe that if the plan is implemented, a major solution to the energy crisis could be achieved within the next two years.