Restructuring the banking sector is essential to overcome the crisis in the textile and garment industry: Rizvi

Bangla Press Desk: Ruhul Kabir Rizvi, Acting Secretary General of the BNP and Political Adviser to the Prime Minister, has emphasized the need to restructure the banking and financial sectors to resolve the ongoing crisis in the country's textile and ready-made garment (RMG) industries.
He stated that the banking sector suffered extensive damage during the tenure of the previous government. He stressed that the banking and financial sectors must be restructured—even within the constraints of limited resources—to ensure the necessary financing for the industry.
He made these remarks on Saturday (October 10) afternoon while addressing a discussion meeting titled "Measures to Resolve Existing Problems in the Textile Sector" and a reception for the newly elected committee of ITET. The event was organized by the Association of Engineers, Bangladesh (AEB) at the Institution of Engineers, Bangladesh (IEB) auditorium in the capital.
Ruhul Kabir Rizvi noted that the textile and RMG sectors are among the primary sources of foreign currency earnings for Bangladesh. He asserted that to resolve the crisis in this sector, specific problems must be identified and effective measures taken promptly. Entrepreneurs are facing a multitude of challenges, including energy and power shortages, rising electricity costs, limitations regarding bank loans and financing, complexities in opening Letters of Credit (LCs), and the need to meet compliance requirements set by international buyers.
Citing the global situation and the energy crisis, he mentioned that the country's industrial sector is suffering due to disruptions in energy supplies caused by the international situation and ongoing wars. The energy and power crisis has emerged as a major problem for the textile sector. He emphasized the need for effective initiatives to overcome this situation, maintain production, and sustain a sector that supports massive employment.
Rizvi warned that the post-graduation scenario from the Least Developed Country (LDC) status could create new challenges for the textile and RMG sectors. He pointed out that after graduating from LDC status, buyers from Europe and America might not remain as interested in purchasing Bangladeshi products as they were previously. Furthermore, he stressed the urgency of ensuring necessary financial support to meet the compliance conditions mandated by international buyers.
BP/TD