Bangladesh’s garment sector is facing production disruption and fears of losing export orders as an ongoing gas shortage forces factories to close, declare holidays or rely on costly alternative fuel. The crisis intensified after a fire at Accelerate Energy’s LNG terminal on July 21, while the government’s assurance that conditions would normalize from August 10 has not yet been realized. Factory owners say unstable gas pressure is preventing normal operations, particularly in dyeing and washing facilities.

According to BKMEA, around 300 knitwear factories are fully closed because of the gas crisis, affecting exports worth about $1.5 million to $2 million. More than 100 factories in Narsingdi and Mymensingh have also closed, while others are operating at sharply reduced capacity. Garments account for about 81% of Bangladesh’s export earnings, with $38.7 billion exported from the sector in fiscal year 2025-26 out of total exports of $48 billion.

Industry representatives say some buyers have shifted or discussed shifting orders to competing countries, citing delayed shipments and uncertainty over production schedules. BGMEA President Mahmud Hasan Khan Babu said average production capacity has fallen by about 30% and urged a rapid solution, warning that delays would deepen the impact on industry and exports.