Committee to revive Beximco factories, settle worker dues

Labour advisor expresses hopes of rehabilitation through foreign investments

The interim government has formed a high-level committee to oversee the “rehabilitation” of 14 factories amid announcements of mass layoffs at the Beximco Industrial Park.

Arrangements have also been made to pay arrears totalling Tk 5.25 billion to 31,669 workers and 1,565 officials affected by the shutdowns, according to Labour & Employment Advisor M Sakhawat Hussain.

Speaking at a press conference at the Secretariat on Thursday, the advisor detailed the measures outlined during a Wednesday meeting of the Advisory Council Committee, which was formed to review labour and business conditions at the Beximco Industrial Park.

“As of February, 14 companies within Beximco Industrial Park have ceased operations, leaving 31,669 workers and 1,565 officials owed a total of Tk 5.25 billion,” Sakhawat said.

“The government has raised the necessary funds, including a Tk 2 billion loan from the labour ministry’s fund, while the finance division has allocated the remaining Tk 3.25 billion from its operating expenses budget.”

The distribution of payments is expected to commence on Mar 9, he added.

The government hopes to revive Beximco’s fortunes through foreign investment, Sakhawat said, acknowledging the challenges posed by global geopolitical tensions.

“There is ongoing uncertainty in the international arena, with rising tensions between the world’s superpowers,” he said.

“Nonetheless, we remain hopeful that external investment will materialise soon.”

To chart a path forward for Beximco, the government has formed a high-level committee led by Lutfey Siddiqi, special envoy to the chief advisor on international affairs.

“This committee will determine the next steps for Beximco,” Sakhawat said.

“As far as we know, positive developments are on the horizon. There are interested parties, and the committee will provide further details when the time is right.”

Beximco, one of Bangladesh’s largest conglomerates, has been in turmoil since the fall of the Awami League government on Aug 5, 2024.

The group’s Vice Chairman Salman F Rahman, former advisor to deposed prime minister Sheikh Hasina, was arrested and imprisoned, triggering operational disruptions across the company’s several enterprises.

Many of the company directors have gone into hiding, further compounding management difficulties.

Amid the upheaval, Beximco has struggled to maintain financial stability.

With numerous accounts frozen, the company has been unable to secure letters of credit, and banks have stopped disbursing funds.

The resulting cash crunch has led to repeated protests by employees demanding overdue wages.

Recognising the gravity of the situation, the interim government established the Advisory Council Committee to review the labour and business situation of industrial establishments in Beximco Industrial Park on Nov 24, 2024.

The 11-member panel, chaired by Sakhawat, subsequently authorised layoffs at the 14 affected factories and initiated efforts to settle outstanding worker payments.

A court-appointed receiver has also been overseeing Beximco Group’s finances, while independent directors have been installed to safeguard the operations of three publicly traded subsidiaries—Beximco Limited, Beximco Pharmaceuticals, and Shinepukur Ceramics.

The financial toll on Beximco has been severe.

Beximco Limited reported a loss of Tk 356.5 million for the six-month period ending in December, with production operating at reduced capacity.

Government-commissioned reports indicate that Beximco is burdened with an outstanding debt of Tk 400 billion, much of which is now classified as defaulted.