A global energy crisis triggered by the Middle East conflict has severely disrupted Bangladesh’s industrial sector, with gas, electricity, and fuel shortages putting immense pressure on production. Export earnings have fallen for eight consecutive months, marking an unprecedented decline in the country’s history. In March 2026, export income dropped by over 18 percent year-on-year to 3.48 billion dollars, compared to 4.25 billion dollars in March 2025.

Business leaders and economists attribute the downturn to reduced production capacity, rising costs, and shipment delays that have eroded foreign buyers’ confidence. The ready-made garment sector, which accounts for over 80 percent of export earnings, saw a 5.51 percent decline in the first nine months of the fiscal year. Vietnam has overtaken Bangladesh as the world’s second-largest apparel exporter, earning 82 million dollars more in 2025.

Industry associations report that many factories in Gazipur, Savar, Ashulia, and Narayanganj have lost up to 30 percent of production capacity due to power and fuel shortages. Economists warn that unless the energy crisis eases soon, Bangladesh’s export-dependent economy could face deeper challenges.