Bangladesh’s Vital Garment Industry Struggles Amid Global Energy Crunch
Bangladesh’s factories make clothes for some of the world’s biggest brands. An energy crisis is squeezing the industry—and the millions who depend on it.
Bangladesh's thriving garment industry, which employs 4 million people and generates $38.7 billion annually, is facing a severe energy crisis. The crisis is exacerbated by rising global fuel prices due to geopolitical tensions, such as the wars in Ukraine and Iran. Industrial gas prices have increased by 150% and diesel by 70%. The situation is particularly dire for Bangladesh, which relies heavily on imported fuel and has underinvested in domestic energy infrastructure.
The government has imposed power cuts, with some villages experiencing 16-hour blackouts. The industry's ability to produce 9.3 million garments monthly is threatened as businesses struggle to maintain operations. The crisis is not only impacting Bangladesh's economy but also contributing to food insecurity, with 18.1 million Bangladeshis at risk.
The government's failure to adequately address the energy crisis is being viewed as a significant challenge for the new government, which has to contend with the legacy of its predecessor's policies and the broader geopolitical tensions.
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