Fifty factories in Chattogram have closed over the past six months, leaving more than 7,000 workers without jobs, according to industrial police. Twenty-five factories shut permanently and 25 temporarily, amid a shortage of work orders and pressure on Bangladesh’s garment sector. The closures have particularly affected subcontracting firms, while many operating factories are running at low capacity.

Bangladesh’s garment exports to Europe fell 16.43 percent in the first six months of the year, according to Eurostat data cited in the report. Shipments to Europe totalled €8.6448 billion, down from €10.3444 billion a year earlier. Exports to the United States also declined 5.75 percent to $4.0078 billion from $4.2524 billion in the same period of 2025.

Factory owners cited raw-material shortages, global factors, worker misconduct and financial problems as reasons for closures, industrial police superintendent Mahmuda Begum Sonia said. Labour leaders alleged increased layoffs, forced resignations and unpaid legal dues. Analysts cited limited product diversification, dependence on cotton-based goods, weak capacity in man-made-fibre garments, energy shortages, port and customs complications, and longer lead times as barriers to exports.