Three major textile and apparel trade bodies in Bangladesh have recommended 370 closed and financially distressed factories for government-backed stimulus loans to support industrial recovery. The initiative is part of a Tk 60,000 crore package announced by Bangladesh Bank to revive struggling businesses and encourage investment.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) recommended 140 garment factories. The Bangladesh Textile Mills Association (BTMA) submitted 130 textile mills, while the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) identified another 100 factories.

The recommendations cover more than half of the nearly 700 textile and garment units facing financial difficulties or closure. These businesses have been affected by political instability, labour unrest, production disruptions and supply chain challenges over the past two years.

According to industry representatives, the factories were selected based on prolonged shutdowns, financial deterioration and loan rescheduling. Third-party verification was also conducted to ensure that the assistance reaches eligible businesses.

Bangladesh Bank announced the stimulus package on May 23, including a refinancing scheme with Tk 20,000 crore earmarked for closed factories. Certified businesses can apply for loans through their respective lien banks, which will process applications in coordination with the central bank.

However, industry leaders warn that strict loan eligibility requirements could prevent some distressed factories from accessing the funds. They also stressed that financial assistance alone will not be sufficient without reliable gas and electricity supplies.

The initiative could help struggling textile mills and garment manufacturers resume operations, repay overdue loans and protect industrial employment. However, a sustained recovery will depend on improved infrastructure, stable energy supplies and stronger business conditions across Bangladesh’s textile and apparel sector.