BKMEA says gas crisis driving foreign buyers to rival countries

The gas crisis is severely disrupting factories and putting export orders at risk, with foreign buyers increasingly looking to neighbouring countries, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Mohammad Hatem has said.

At a press conference at BKMEA headquarters in Narayanganj on Saturday, he called for CNG supplies to be stopped for all vehicles except public transport until gas supply returns to normal.

Hatem said the crisis had already put at least 40 percent of monthly export earnings at risk as factories struggled to meet delivery schedules.

He said buyers were looking elsewhere because of fears that Bangladeshi suppliers would fail to deliver on time, with some upcoming-season orders also at risk of shifting to neighbouring countries.

BKMEA called for several measures to ease pressure on businesses, including:

•    Allowing 12-month instalments for June and July electricity and gas bills

•    Holding off on disconnections when businesses fail to pay

•    Restricting CNG sales to public transport

•    Cutting illegal gas connections

Hatem also urged banks not to classify factory owners as loan defaulters if they fail to pay instalments because of the gas crisis.

He called for at least six months of relief until gas supplies return to normal.

The BKMEA president also urged the government to provide regular updates on the crisis, saying businesses lacked clear information on when it would end.

“We are in the dark. We are getting no clear indication of when this crisis will be resolved. That is why rumours are spreading,” he said.

Hatem said the gas shortage had existed for some time but became acute from Jul 20, with some areas seeing zero pressure and production shutting down completely.

At least 300 factories are in that situation, he said. The crisis had been expected to ease this month, but that has not happened.

As a result, factories are struggling to ship existing export orders, adding pressure from overseas buyers.

Hatem said the government would also need to clarify whether industry should continue relying on gas or shift towards other fuels.