Power and gas shortages push Bangladesh garment factories into deeper crisis

Bangladesh’s garment industry is operating at about 60% efficiency as prolonged electricity and gas shortages disrupt production, delay exports and threaten factory owners with bankruptcy, industry representatives said.

Factories face power outages lasting five to six hours a day, while gas remains unavailable for much of the day. Missed shipping deadlines have forced exporters to use air freight, which can consume 50% to 60% of an order’s value, or offer discounts of 25% to 30%.

“Our production is repeatedly disrupted due to gas shortages, and we cannot ship on time,” an industry representative said. “Many buyers are trying to place orders in other countries instead of here if this problem in Bangladesh remains chronic.”

Industry leaders urged the government to expand liquefied natural gas imports and storage, accelerate domestic gas exploration and arrange soft loans through Bangladesh Bank to help factories pay workers.

Without effective intervention, the crisis affecting manufacturing industries could escalate into a broader social crisis.