Bangladesh Garments Accessory and Packaging Sector Faces Severe Crisis
Bangladesh's garments accessory and packaging sector is facing a severe business slowdown amid an ongoing crisis in the domestic apparel industry. Stakeholders report that declining export orders and persistent utility shortages are directly threatening production, revenues, and worker wage payments.
On September 16, 2026, reports highlighted a growing stagnation and commercial crisis within the backward linkage industry, specifically affecting the garments accessories and packaging sector in Bangladesh. This critical sector plays a foundational role in the national economy, with industry institutions demonstrating the capacity to meet approximately 90 percent of the local garment industry's demand for various raw materials and supplies.
Despite its vital contribution to the domestic supply chain, the sector is currently suffering from the fallout of ongoing gas and electricity shortages. These persistent utility constraints, combined with a decline in export earnings and a reduction in new work orders within the broader ready-made garment sector, have created severe downward pressure on accessory and packaging manufacturers across the country.
Industry leaders and business figures—including Ibrahim Hussain Avi, Md. Shahriar, Md. Saiful Islam সবুজ, and S. M. Arifur Rahman—have been navigating these challenging economic conditions. According to Md. Shahriar, who serves as the president of the Bangladesh Packaging and Accessories Manufacturers and Exporters Association (BPAMEA), the ripple effects of apparel sector downturns are immediate and profound.
Explaining the direct correlation between the two industries, Md. Shahriar stated: "When purchase orders decrease in garment factories, production drops. Concurrently, the demand for various auxiliary materials such as buttons, zippers, labels, and packaging also decreases. As a result, this exerts a negative impact on the sales, revenue, and production activities of these material manufacturing institutions."
Adding to these operational hardships, Md. Saiful Islam সবুজ noted that the scarcity of orders has generated significant financial pressure regarding the timely payment of workers' wages and allowances. However, offering a note of cautious optimism, he mentioned that some new orders have begun arriving in recent times, prompting entrepreneurs to hope for a gradual improvement in the overall situation.
Amid these domestic hurdles, the sector remains a substantial economic pillar through international trade. Enterprises in this field directly export products valued at over 1 billion US dollars to various countries globally. Furthermore, through indirect exports, the total export earnings generated by this sector have surged to more than 7 billion US dollars, underscoring the urgent need to stabilize the industry against current operational disruptions.
