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Home Analysis

Unsettled garment industry, USAID turns away $2 billion in losses

By Mir Afroz Zaman

pobnews24 by pobnews24
January 26, 2025
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Unsettled garment industry, USAID turns away $2 billion in losses
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POBNEWS24, Dhaka, Jan 26, 2025 : There has been unrest in the ready-made garment sector again. For the past few days, garment workers’ movement has been raging over various demands. Authorities had declared a holiday in at least 167 establishments after protests and vandalism in areas dominated by the garment industry. Workers returned to work under the security of the joint forces since Sunday morning. Workers have joined their respective workplaces in factories in Ashulia, Gazipur, Tongi BSCIC, Bhogra Bypass, Bagher Bazar and Maona areas of Savar. However, concerns are growing among industrialists and the government as worker dissatisfaction in the industrial sector continues to rise.

It is learned that the environment in ready-made garment factories has become unstable due to the ‘false business’ of local political influencers. They have exploited the dissatisfaction of workers in some garment factories. Garment worker leaders have alleged this. However, the owners say that a third party is active here to create an unstable situation in the country. Such instability in this sector is not desirable in any way. Anarchy and instability are a matter of concern for the garment sector. According to information from BGMEA, BKMEA and BTMA, organizations of ready-made garment industry owners and exporters, factory production has been disrupted due to student and public agitations, changes in the political context and ongoing unrest in the country in July and August. Shipments could not be made on time. As a result, goods had to be sent by air to maintain work orders. This has resulted in additional costs. Despite this, 45 percent of the export orders of factories have been canceled during this time. This has caused a total loss of more than 2 billion US dollars in the garment and textile sector.

In this context, many factories are delaying the payment of salaries. There has been long-standing dissatisfaction among workers over salary and bonus. Workers say that wages should be set in line with market rates. Workers in various factories in Gazipur have been protesting for a long time demanding a minimum salary of Tk 23,000 for factory workers. Bangladesh is the world’s second largest exporter in the ready-made garment sector. Yet, the workers of this country receive the lowest wages among the leading exporting countries. This is a kind of anarchy. Garment workers are repeatedly seen taking to the streets demanding salaries and allowances. After overcoming many ups and downs, the country’s ready-made garment industry has reached its current level in the last few decades. The ready-made garment industry of Bangladesh is moving forward on the path of progress by breaking through many adversities and the web of domestic and international conspiracies.

Former president of the garment industry owners’ organization BJMEA, Faruk Hasan, said that there is no alternative to the garment industry to accelerate the economy of Bangladesh. One of the sectors of remittances coming from abroad for the economic development of the country is the garment industry. Bangladesh is earning a lot of foreign money by exporting ready-made garments of about 4 million workers. The overall development and progress of any country undoubtedly depends on the industry of that country. If the garment industry can increase its capacity by diversifying or diversifying products according to the rapidly changing consumer demand, maximizing the use of modern technology in factories, and creating a skilled workforce, it can play a major role in the country’s economy. However, not by depriving workers of their rights. We believe that the issue of workers should be addressed with importance.

On the other hand, the United States Agency for International Development (USAID) has suspended cooperation activities in Bangladesh. This information was revealed in a letter from the agency on Sunday (January 26). The letter was signed by USAID’s Acquisition and Assistance Supervisory Contract Officer Brian Aaron.

The Trump administration has already ordered a halt to aid to all countries in the world except Egypt and Israel. USAID has suspended aid to Bangladesh under that directive.

In a secret document in this regard, US Secretary of State Marco Rubio said that no funds will be released until existing or new aid issues are reviewed and approved. Foreign aid issues will be reviewed within the next 85 days.

This initiative was taken as part of President Donald Trump’s ‘America First’ policy. This letter is for all USAID Bangladesh partners. They have been instructed to immediately stop or suspend any work related to their contracts, task orders, grants, cooperative agreements or assistance.

Meanwhile, in Bangladesh, in the past 5 months, various types of unrest, rising prices of daily necessities, money laundering, extreme corruption and secret killings have increased in the country, along with frequent robberies in the daytime. The law and order situation is at an absolute standstill. At this time, students and organizers are busy forming the Kings Party. In this regard, Saiful Haque, General Secretary of the Revolutionary Workers Party, said, ‘Questions have been raised in various places of society and on social media about the process of forming this political party called ‘Kings Party’ by students, whether it is being formed? We support the political aspirations of the youth. We support it. But my point is, if they want to form a political party with direct and indirect support and facilities from the government, then the people are not taking it well. And they are becoming isolated from the people. And they are also becoming isolated from various stakeholders in the society.’ He said, ‘The current interim government is a non-partisan government. But if they work for a particular group or political party, then questions will arise about their neutrality and acceptability.’

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