Fashion
Bangladesh garment makers eye $5 bn more in exports post policy tweak
Under this arrangement, the buyer supplies raw materials like fabrics and accessories. Manufacturers receive only the cutting and making charges.
Bangladesh apparel manufacturers expect an additional $5 billion from high-end garment exports in the first year after the government scraps the 50-per cent ceiling on free-of-charge (FoC) imports, trade body BGMEA said.
Under this arrangement, the buyer supplies raw materials.
The additional earnings could cross $10 billion in the second year once the FoC quota is fully abolished, BGMEA noted.
The additional earnings could cross $10 billion in the second year once the FoC quota is fully abolished, Chowdhury said.
The country’s Ministry of Commerce has decided to amend the Import Policy Order within the next two weeks, allowing garment exporters to source all raw materials from overseas buyers, process them and ship the finished products back, the Chief Adviser’s Office said.
Exporters now are permitted to import only half of the required raw materials under the FoC arrangement.
A few years ago, FoC imports were capped at 33 per cent of total raw materials. This was raised to 50 per cent later.
Bangladesh’s apparel exporters use FoC for less than 5 per cent of total shipments now due to restrictive conditions and reported complications at the Chattogram customs department.
As FoC is straightforward, less risky and faster, garment exporters feel without any quota on FoC import, global brands will place more orders with Bangladesh.
Manufacturers say orders for high-end man-made fibre and polyester garments are shifting from China to Bangladesh as the United States has imposed higher tariffs on Chinese goods.
Many Bangladeshi factories, however, cannot take full advantage of this as these are barred from importing more than half of raw materials under the current FoC regulations.
Chowdhury said FoC reduces risk as buyers cover raw material costs and cannot abruptly cancel orders, according to domestic media outlets.
However, Showkat Aziz Russell, president of the Bangladesh Textile Mills Association (BTMA), said the government should consult all stakeholders before taking any decision. He believes higher import of raw materials could harm the domestic textile industry by reducing demand for local yarn, fabrics and accessories, and lowering local value addition.
Fibre2Fashion News Desk (DS)
Current account excluding gold and energy indicated net deficit of $3.9 billion, while goods saw a deficit of $9.5 billion.
Turkiye recorded a current account deficit (CAD) of $9.6 billion in March, the country’s central bank said.
Treasury and Finance Minister Mehmet Simsek said the CAD is expected to widen this year, due to high energy and non-energy commodity prices.
Simsek said the deterioration is likely to remain temporary and manageable, thanks to stronger macroeconomic fundamentals and policy gains.
According to annualised data, current account deficit recorded as $39.7 billion (2.6 per cent of gross domestic product) in March, while the goods deficit recorded as $77.8 billion.
Simsek said the deterioration is likely to remain temporary and manageable thanks to stronger macroeconomic fundamentals and policy gains, domestic media outlets reported.
Turkiye is heavily reliant on imported energy, whose prices spiralled due to the Middle East conflict.
Simsek said elevated global commodity prices would put pressure on the external balance, but emphasised that the government’s economic programme had improved resilience against such shocks.
He said foreign direct investment (FDI) inflows totalled $1 billion in March, bringing annualised foreign direct investment to $12.6 billion.
The new investment incentive package under discussion in parliament now is expected to strengthen the country’s financing structure and support long-term capital inflows, he added.
Fibre2Fashion News Desk (DS)
During the first quarter of ****, the UK’s imports of textile fabrics eased down *.** to £*,*** million (~$*,*** million), against £*,*** million in January-March **** but slightly higher from £*,*** million in the fourth quarter of ****. Its imports of fibre were noted at £** million (~$***.** million) steady as £** million in Q*, **** but slightly lower than £** million in Q*, ****.
During the third month of this year, the country’s clothing imports declined *.** per cent to £*.*** billion (~$*.*** billion), compared with £*.*** billion in March ****. But the inbound shipment was slightly higher month on month compared with £*.*** billion in February ****.
Higher rents, utility bills and fuel prices are eating away at already thin profit margins, it found.
High inflation is cutting deep into Bangladesh consumer spending, with weak demand turning one of the biggest concerns for businesses, DCCI said.
Higher rents, utility bills and fuel prices are eating away at already thin profit margins.
DCCI’s economic position index revealed that consumers have sharply reduced spending as the cost of living continues to rise.
SMEs are feeling the pressure the most.
The chamber’s economic position index (EPI) revealed that consumers have sharply reduced spending as the cost of living continues to rise, putting pressure on retailers, transport operators and other service providers.
Small and medium enterprises (SMEs) are feeling the pressure the most as they struggle to manage higher operating costs without losing customers.
Businesses also cited difficulties in obtaining bank loans, while delays in licensing and other regulatory procedures are adding to costs.
The DCCI report identified a shortage of skilled workers, particularly in technical and customer service roles, as another challenge for the sector.
The country’s inflation rose to 9.04 per cent in April from 8.71 per cent in March, according to official statistics.
Fibre2Fashion News Desk (DS)
Turkiye’s current account deficit expected to widen in 2026: Minister
UK’s clothing imports fall 3% in Q1, sharply lower than Q4 2025
RBI sees no signs of excess credit risk, keeps countercyclical capital buffer inactive
-
Entertainment6 days agoConan O’Brien hat tricks as Oscar host
-
Tech1 week agoCould Contact-Tracing Apps Help With the Hantavirus? Not Really
-
Fashion5 days agoItaly’s Zegna Group’s Q1 growth boosted by strong organic performance
-
Sports1 week agoBobby Cox, legendary Atlanta Braves manager who led 1995 World Series champions, dead at 84
-
Entertainment1 week agoMartin Short: Facing tragedy with joy
-
Entertainment1 week agoTom Brady gets back at Kevin Hart during Netflix roast
-
Sports1 week agoJacob Fatu unleashes vicious assault on Roman Reigns after World Heavyweight Championship loss at WWE Backlash
-
Entertainment1 week agoMartha Stewart: How to make an omelet