Bangladesh’s industrial sector is under severe pressure from energy shortages, high interest rates, dollar-market stress and stalled investment, according to the report published on August 1, 2026. More than 250 industrial establishments have closed over the past year, leaving over 150,000 workers and employees jobless. Factories in Savar, Ashulia, Gazipur and Narayanganj are operating below capacity or halting production for much of the day because of inadequate gas pressure.

Bangladesh Bureau of Statistics data showed significant production declines in several industries in fiscal year 2024-25, including weaving textiles, jute textiles, pharmaceuticals, cement-lime-plaster and fruit processing. Use of diesel generators has raised production costs by 30% to 40%. The government temporarily suspended new industrial gas connections and approved load increases on July 14, followed by an emergency Petrobangla instruction on July 17.

Private investment fell to 21.53% of GDP in fiscal year 2025-26, its lowest level in 14 years. Imports of industrial raw materials and capital machinery also declined, while new foreign equity inflows dropped 70.34% in the first quarter of 2026. BIDA says it is pursuing alternative energy projects and aims to generate 20% of electricity from renewable sources by 2030.