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Blood On The Assembly Line

• By  Textile Excellence
• January 03, 2026

Bangladesh’s economy, long anchored by its textile and ready-made garment (RMG) sector, is facing an unprecedented convergence of crises, reeling under immense pressure from labour unrest, human rights concerns, financial instability, policy uncertainty, and a deteriorating macroeconomic environment. These challenges are not isolated; they intersect to threaten the very foundation of Bangladesh’s export-driven economy.

The tragic lynching of garment worker Dipu Chandra Das in Mymensingh has thrust worker safety and factory accountability back into the global spotlight. Employed at Pioneer Knitwears (BD) Limited, Das was allegedly accused of blasphemy, forced to resign, and then handed over to a mob that beat him to death and set his body on fire. The incident reverberates far beyond human tragedy, jeopardising Bangladesh’s reputation with major global buyers such as H&M, Zara, Gap, Walmart, Nike, Adidas, and Uniqlo, at a time when ethical sourcing is under increasing scrutiny.

Simultaneously, Bangladesh’s textile mills are struggling to survive. Over US$ 23 billion in investments across spinning, weaving, and processing now face collapse amid weak demand, rising costs, and import competition. The Bangladesh Textile Mills Association (BTMA) warns that nearly 58 units have partially or fully shut down, jeopardising around two million jobs. Millers are calling for urgent policy interventions, including extended export incentives, longer import credit periods, and safeguards for local yarn sourcing.

The banking sector, a critical support system, is itself under stress. National Bank now carries NPLs of 75.46% of its loan book, and liquidity pressures persist despite central bank support. High-profile corporate failures, including the near-collapse of Beximco Textiles, underscore systemic risks. Against this backdrop, Bangladesh’s foreign exchange reserves have fallen sharply, the taka remains artificially supported, and investor confidence is waning, creating fertile ground for competitors - most notably India - to capture global orders.

Bangladesh’s textile-led growth model stands at a crossroads. Labour safety, financial stability, governance, and policy coherence are no longer separate challenges, they are interconnected threats. How the country responds now will determine whether it can sustain its global position or watch a critical industry, and national growth, slip away.

Bangladesh’s textile mills are struggling to survive. Over US$ 23 billion in investments across spinning, weaving, and processing now face collapse amid weak demand, rising costs, and import competition. The Bangladesh Textile Mills Association (BTMA) warns that nearly 58 units have partially or fully shut down, jeopardising around two million jobs. Millers are calling for urgent policy interventions, including extended export incentives, longer import credit periods, and safeguards for local yarn sourcing.