The Bangladesh Export Processing Zones Authority (BEPZA) has launched dedicated country desks for investors from China, South Korea and Japan to strengthen investor support and attract new investment to its export processing zones (EPZs) and economic zones.

The three desks were inaugurated at a “Meet the Investors” event in Dhaka on October 10. The initiative targets BEPZA’s three leading investor countries and aims to improve communication, provide tailored guidance, and simplify investment-related services.

Investors from 38 countries have invested in BEPZA’s eight EPZs and two economic zones, according to a press release. The authority expects the new desks to help existing investors expand their operations while encouraging new investors to enter Bangladesh.

During FY2025-26, BEPZA signed investment agreements with 36 enterprises. Exports from its zones reached $8.41 billion, up 2.22% from the previous fiscal year.

New zones offer expansion opportunities

BEPZA has declared BEPZA Economic Zone-1, BEPZA Economic Zone-2, Jashore EPZ and Patuakhali EPZ as full-fledged zones. The authority has invited investors to explore opportunities in these locations and expand operations with their supply chain partners.

However, infrastructure development and simpler policies remain important to attracting more foreign investment. Million Park, General secretary of the Korea-Bangladesh Chamber of Commerce and Industry, highlighted the potential for stronger business ties between Bangladesh and South Korea. He called for infrastructure improvements and policy simplification to attract more Korean investors.

Investment diversification remains a priority

BEPZA’s country desks come as Bangladesh seeks to attract investment, diversify exports and strengthen industrial supply chains. Beyond investor outreach, the availability of suitable land, reliable infrastructure and efficient administrative services will remain important to converting investor interest into new projects.

BEPZA’s zones hold approximately $7.50 billion in total investment and have generated around $130 billion in cumulative exports. They account for about 20% of Bangladesh’s total exports.

At the event, BEPZA officials and investors also discussed worker welfare, employer-worker relations, amendments to the Bangladesh EPZ Labour Act, 2019, and emerging labor challenges. The authority reaffirmed its commitment to protecting both investor and worker interests while maintaining international labor standards.

More than 100 local and foreign investors attended the event, alongside representatives of the Bangladesh-China Chamber of Commerce and Industry, Korea-Bangladesh Chamber of Commerce and Industry, and Japan-Bangladesh Chamber of Commerce and Industry.

The two-day "Textile Fest Bangladesh 1.0" was held for the first time at the National Institute of Textile Engineering and Research (NITER) in Savar. Organized by the NITER Textile Club on October 8 and 9, the festival brought students from across the country, industry representatives and corporate leaders together on one platform.

Competitions, discussions with industry figures, career seminars, a job fair, a fashion show and cultural performances kept the campus lively for two days.

The program began on Thursday (October 8) with registration at 8:30 am. From 9 am, competitions got under way, including Tex Olympiad, mock interview, case competition and innovative speech, while stalls from various organizations were set up. More than 3,000 students and over 150 industry and corporate representatives took part on the first day.

Dhaka-19 MP Dr Dewan Mohammad Salahuddin Babu was the chief guest, and Bangladesh Textile Mills Corporation (BTMC) Chairman Brig Gen S M Zahid Hasan was the special guest. Speakers included Md Safayat Hossain, General Manager of Epyllion Group, who presented the "7E" formula; Kazi Feroz Hossain; Prof Dr Md Shah-e-Alam, Vice-Chancellor of Shanto-Mariam University of Creative Technology; BTMC Director (Finance and Audit) Noore Khaja Alamin; and NITER Director Prof Dr Ashequl Alam Rana. Banna, convener of the NITER Textile Club, pledged to continue the club's activities to increase student engagement.

Guests visited the stalls around noon while judging continued. After the lunch break came dance and music performances and a competitive fashion show. The first day ended at around 9:30 pm.

The second day began on Friday (October 9) at 11 am with recitations from the Quran and the Gita and the national anthem. State Minister for Primary and Mass Education Bobby Hajjaj was the chief guest. Dhaka-19 MP Dr Dewan Mohammad Salahuddin Babu attended the programme as the special guest, while Shawkat Aziz Russell, President of the Bangladesh Textile Mills Association (BTMA), served as the chairperson. NITER Director Prof. Dr Ashequl Alam Rana was also present at the event.

The guests spoke on the development of textile education, the industry's prospects and preparing students for their careers. When students raised demands for institutional development and expanded facilities, the guests assured them of necessary steps.

BTMA President Shawkat Aziz Russell said reconstruction work at NITER would begin in the winter of 2026. Addressing students, he said: "Those of you studying textiles, don't worry. Bangladesh's textile job market still has 50 to 100 years ahead of it. So we have plenty of scope to move forward."

He said the state minister had advised increasing the number of faculty members. NITER's student capacity had been planned at 5,000, and he is now considering how to raise it to 10,000. He also said the design of the new halls would be more modern than those at BUET, and that the state minister had said he would take NITER's project to the Prime Minister. Russell also stressed more expert teachers, expanded modern facilities and preparing students to compete in the global textile industry.

The MP, Dr Dewan Mohammad Salahuddin Babu, urged students to grow into people of moral and humane qualities and assured full cooperation in overcoming obstacles to NITER's development. Referring to the job fair, he said: "I have heard that four companies interviewed your graduating students just yesterday. I have known for a long time that students who study here get jobs within a short time of finishing." Drawing on his own experience, he said it took him several years to join a job after completing medical studies and passing the BCS exam. By comparison, he said, NITER students are fortunate.

State Minister Bobby Hajjaj encouraged greater participation of women in the textile sector. She also spoke about increasing Bangladesh's participation in the global textile industry and the sector's importance to economic development.

After the formal session, prizes were distributed for the various competitions, which included Tex Olympiad, TexTech Hackathon, 300 seconds innovative pitch, Fashion Show, aMock Interview, Case Competition, Photography & Creative Exhibition . A total of Tk 2.5 lakh in prizes had been set aside. The festival also included career seminars, talk shows, a job fair, networking, a textile and apparel exhibition and a raffle draw.

Students then performed dances, songs, a play and a ramp show. The closing attraction was a performance by the popular band.

By nurturing talent, strengthening links between industry and academia and creating opportunities for creative participation, the two-day event will be remembered as a vibrant occasion on the NITER campus.

The Lycra Company is advancing plant-based spandex with 70% renewable content from US-grown field corn. The fiber can reduce its carbon footprint by up to 45% while maintaining the stretch and recovery performance of conventional Lycra fiber, according to a third-party-reviewed life cycle assessment.

The fiber has entered commercial applications, including swimwear by Italian brand Arena and denim by Danish brand Only & Sons. Lycra also showcased a plant-based denim collection during Climate Week in New York in September 2026, combining its renewable fiber with lower-footprint cotton.

The development comes as textile manufacturers face growing pressure to reduce material-related emissions. Global fiber production reached an estimated 139 million tons in 2025, while textile-to-textile recycling accounted for only 0.76% of total fiber production, according to Textile Exchange’s Materials Market Report 2026.

Alongside renewable feedstocks, Lycra is developing pilot-stage technology to recover spandex from textile waste blended with nylon and polyester. Commercial-scale recycling remains a challenge because these fibers are difficult to separate efficiently.

For apparel manufacturers, renewable spandex offers a potential route to lower the carbon footprint of stretch fabrics without compromising performance. However, wider adoption will depend on cost, supply availability and credible environmental data. Scaling fiber recovery from blended textiles will also be critical to advancing circular production beyond the use of renewable raw materials.

Key insights:

• Bangladesh plans 12,940MW of new capacity by 2030, including 10,000 MW of solar and 2,940 MW of coal.
• Electricity demand reached 18,178MW, while projected September generation was 15,859MW.
• Solar capacity must rise from about 1,452MW to 10,000MW, requiring about 8,550MW of new capacity in four years.

Bangladesh is planning a major expansion of its power system, but the immediate challenge is closing the gap between electricity demand and usable generation.

The country reached 29,143 megawatts (MW) of grid-connected installed capacity by August 2026. However, peak electricity demand hit 18,178 MW on September 14, up 17% from 15,570 MW a year earlier. September generation was projected at only 15,859 MW, leaving a 2,319 MW shortfall.

Natural gas remains the largest generation source, accounting for 43–44% of installed capacity with over 12,000 MW. Yet daily gas supply averaged only 2,610 million cubic feet (mmcfd) against an approved demand of 3,800 mmcfd. This supply shortage capped gas-based generation at 5,977 MW in September. Weak coal availability further forced the grid to rely on costlier liquid fuels, pushing projected liquid-fuel generation to 3,791 MW. Under the government's 2026–27 supply plan, the grid allocates 6,000 MW each from gas and coal, 4,000 MW from liquid fuels, 2,500 MW from regional imports, and up to 4,000 MW from rooftop solar.

Key power sector metrics

Source: Ministry of Power, Energy and Mineral Resources (MPEMR), World Bank (WB), National Renewable Energy Development Strategy (NREDS), and official government energy roadmap data.

Liquefied natural gas (LNG) imports add heavy financial exposure. Bangladesh imported 109 LNG cargoes in 2025 for $3.88 billion, up from 86 cargoes costing $3.02 billion in 2024. A proposed 1,000 mmcfd land-based terminal and a 600 mmcfd FSRU at Kutubdia will add regasification capacity, but won't shield the country from global market price swings.

Looking ahead, the medium-term roadmap targets 12,940 MW between 2028 and 2030 to meet projected peak demand of 20,000–25,000 MW. This includes 10,000 MW of solar and 2,940 MW of coal capacity at Barapukuria, Payra, and Matarbari.

Solar represents the largest planned pivot. Bangladesh currently operates 1,850 MW of renewable capacity, including 1,452 MW of solar. The National Renewable Energy Development Strategy aims for 10,450 MW of renewables by 2030, targeting 5,500 MW from rooftop installations and 4,500 MW from ground-mounted plants. Large PPP projects are planned in Sirajganj, Sonagazi, and Rampal. The World Bank approved an initial $350 million loan, with additional financing discussions underway with the AIIB and ADB.

Finally, the roadmap targets at least 30% renewable generation by 2040 alongside a 150-well exploration campaign, where 31 wells are already drilled. For Bangladesh, the main test remains converting planned capacity into dependable power without incurring unsustainable financial debt.

The two-day BUTEX-ITET DyeChem Expo 2026, organized by the BUTEX Wet Process Club, began on Thursday (8 October 2026) at the university’s central playground. The event brought textile chemical manufacturers, suppliers, industry professionals, academics, alumni and students onto a common platform through a chemical exhibition, panel discussions and a poster presentation.

Md. Shahid Uddin Chowdhury Anee, Honorable Minister, Ministry of Water Resources, attended the opening as chief guest. ITET Bangladesh President Engr. Md Enayet Hossain, as special guest, and Secretary General Engr. A.S.M. Hafizur Rahman Nixon were also present, along with BUTEX Vice-Chancellor Prof. Dr. Engr. Md. Zulhash Uddin.

Speaking at the ceremony, Honorable Minister Md. Shahid Uddin Chowdhury Anee said the strong position of Bangladesh’s textile and garment sectors has opened up wide employment opportunities for young people at home and abroad. He noted that although demand for chemicals in the country is large, the sector still falls short of meeting it. Establishing a dedicated chemical industrial zone, he said, could bring positive changes to the economy and to job creation.

He also urged students, whether they go abroad for higher studies or return after earning their degrees, to take part in setting up industries in Bangladesh through joint venture projects.

ITET President Engr. Md Enayet Hossain, a former student of the BUTEX Department of Wet Process Engineering, said he felt proud of the department and praised the club for organizing the event. He said that with around 30 reputed local and international dye and chemical companies on show, students are getting to learn about various textile and chemical products and how they are used, as well as the chance to connect with the companies.

BUTEX Vice-Chancellor Prof. Dr. Engr. Md. Zulhash Uddin thanked everyone for joining the program organized by the BUTEX Wet Process Club. He said the expo offers students a unique opportunity to see the latest technologies, eco-friendly innovations and sustainable production practices of the textile chemical industry first-hand.

A total of 29 local and international companies are taking part in the expo, displaying their products, technologies and innovations in textile chemicals. Alongside students, industry representatives are also visiting the exhibition.

On the first day, a panel discussion was held at 11:30 am under the title “The future of dyes and chemicals: Innovation, sustainability and career opportunities in the chemical industry.” Tareq Amin, founder and CEO of Textile Today, moderated the session.

The panelists were Chen Wen-Lung, Managing Director of Fucolor Future Ltd and Chairman of Fucolor BD Ltd; Chen Chyi-Yang, Director of Fucolor Future Ltd and Managing Director of PT Fucolor Chemical Industry, Indonesia; Mohammad Shaheed Sikder, Executive Director of SwissChroma Bangladesh Ltd; Monsur Ahmed, General Manager of International Classic Composite Limited; and Md. Salahuddin Repon, General manager (Sales and Technical) of Auxicolour Bangladesh.

In the afternoon, a sponsor and company stage session gave participating firms the chance to talk to students about their products, technologies, activities and the prospects of the industry.

The second day, Friday (9 October 2026), began at 9:00 am with the exhibition reopening, followed by poster showcasing at 9:30 am. At 10:30 am, a second panel discussion took place under the title “Dyes and chemicals in modern dyeing: Industry challenges, quality and cost optimization.” Prof. Dr. Shekh Md. Mamun Kabir, Head of the Department of Textile Materials Engineering, moderated the session.

The panelists were Engr. Md. Mukhlessur Rahman Khan, Director (Technical and Marketing) of Microfiber Group; Engr. Rezaul Karim (Reza), Executive Director of Ahasan Group; Tariq Ul Islam, Advisor of Imperial; Engr. Zahirul Islam Liton, Executive Director of M.N Dyeing and Mosharaf Apparels Studio Ltd., Mosharaf Group; and Rezaul Hasan, General Manager of MASCO Group.

The expo arranged a poster presentation competition, the announcement of results, a prize-giving ceremony, and the closing ceremony.

Sultan Salauddin Tuku, MP, Honorable State Minister, Ministry of Fisheries and Livestock, attended the ceremony as chief guest, with BUTEX Vice-Chancellor Prof. Dr. Engr. Md. Zulhash Uddin presiding. Engr. A.S.M. Hafizur Rahman Nixon, Secretary General of ITET Bangladesh; Engr. Md. Enayet Hossain, President of ITET Bangladesh and Member of Parliament; Engr. Mahbuba Hakim were present as special guests. The program ended with a cultural segment.

The Institute of Textile Engineers and Technologists (ITET) is supporting the event as a partner. Fucolor Future Limited is the title sponsor, while Imperial and Orient Dyestuff & Auxiliaries Co. Ltd. joined as platinum sponsors. Archroma and CHT are the gold sponsors, and Biosphere Concern and Emmtex Solutions Bd Ltd are the silver sponsors.

The Nature Conservancy (TNC) has launched the Microfiber Action Alliance (MAA), bringing together major apparel and outdoor brands to reduce microfiber pollution across the textile value chain. Nike, Patagonia, Under Armour, lululemon, Cotopaxi and REI Co-op are among its founding participants.

Announced on October 6, 2026, the initiative aims to accelerate the adoption of science-based solutions, test practical interventions, and share findings across the industry. It will work with participating companies to identify where microfiber pollution occurs and determine which measures can deliver meaningful reductions at scale.

Microfiber pollution extends beyond synthetic textiles. Fibers can be released from polyester, nylon, and acrylic, as well as natural materials such as cotton and wool. Dyeing, softeners, and other textile treatments can also affect the environmental behavior of released fibers. Pollution can occur during textile manufacturing, garment use, washing, and disposal.

Research published in PLOS ONE found substantial differences in microfiber shedding among textile samples. In tests covering 37 materials, fiber loss ranged from 9.6 milligrams to 1,240 milligrams per kilogram of textile per wash. The findings highlight the role of fabric construction, material selection, and finishing in reducing fiber release. These results are specific to the tested samples and do not represent all textiles.

The alliance builds on existing industry research and collaboration, including work by The Microfibre Consortium, which develops scientific tools and methods to measure fiber fragmentation and support reductions across textile supply chains.

For textile manufacturers, the initiative highlights the need to address microfiber release during product development and production, rather than relying only on measures taken after garments reach consumers. Fabric construction, yarn selection, finishing processes and production controls are potential areas for investigation.

However, reducing microfiber pollution remains a complex challenge. The alliance's impact will depend on the effectiveness of the solutions tested, consistent measurement, and their adoption across supply chains. TNC has invited additional companies to participate, signaling that broader industry collaboration will be important to scaling progress.

The alliance has not announced a quantified pollution-reduction target in the launch information. Its progress will therefore need to be assessed through future evidence of implementation and measurable reductions in microfiber release.

Spanish textile recycling company Recover™ has launched RecoverOne, a recycled cotton and polyester fiber blend designed to eliminate downstream overdyeing and simplify textile production.

The company said the ready-to-spin blend combines mechanically recycled cotton with recycled polyester in color-matched ratios tailored to different textile applications. By matching the fiber colors during blending, RecoverOne is designed to remove the need for additional dyeing after fabric production.

The launch highlights an approach to integrating color selection into recycled fiber development, potentially helping textile manufacturers simplify processing and reduce reliance on downstream overdyeing.

For textile manufacturers, the blend offers an option to incorporate recycled fibers while addressing production requirements related to color consistency and processing efficiency. Its application-specific formulation also allows the blend to be adapted to different textile uses.

Recover™, based in Spain, develops recycled textile materials, with mechanical cotton recycling forming part of its product portfolio.

Denmark has launched a national textile action plan to reduce textile production and consumption while preparing businesses for upcoming European Union (EU) requirements.

The three-year program will run from 2026 to 2029. It includes nine initiatives and has a budget of DKK 40 million (approximately $6 million).

The plan focuses on three areas: business readiness, circular infrastructure and skills development. These priorities aim to help the textile sector adapt to changing regulatory requirements and support a more circular textile system.

The action plan seeks to prepare textile businesses for upcoming EU requirements. As sustainability and circularity become increasingly important in European textile policy, businesses will need to adapt their operations and practices.

The focus on circular infrastructure also highlights the importance of developing systems that support more efficient textile use and resource recovery. Such infrastructure can help create the conditions needed to reduce textile waste and improve material circulation.

The Danish plan is a national action framework rather than new legislation. It does not establish binding national targets for textile production, consumption or waste reduction.

Instead, it sets out initiatives to guide the sector's transition between 2026 and 2029.

Denmark's strategy reflects a broader shift in European textile policy toward addressing both production and consumption.

For textile manufacturers and exporters serving the European market, the direction of such national initiatives is worth monitoring. Business preparedness, circular material systems, and technical skills are becoming increasingly relevant to the sector's response to evolving EU requirements.

The government's decision to raise the cash incentive from 1.5 percent to 5 percent for the use of domestically produced yarn and fabric in Bangladesh's Ready-Made Garment (RMG) industry is timely. Amidst intense global competition in the apparel sector, rising production costs, and various challenges facing the country's spinning and textile industries, this move could strengthen the local textile sector.

An increase in demand for locally produced yarn and fabric could yield benefits for spinning, dyeing, knitting, and other allied industries. Furthermore, it could create new market opportunities for spinning mills that are currently operating below full capacity or facing financial difficulties.

However, this decision should not be viewed merely as an increase in export incentives. Its significance is far-reaching, as it is directly linked to Bangladesh's long-term industrial capacity, local value addition, reduction of import dependency, and foreign currency savings.

Consequently, a significant portion of the entire value chain—from yarn to fabric and fabric to the final garment—can be completed within Bangladesh. Increased use of local inputs can help reduce import reliance, save foreign currency, generate demand for related industries, and boost local value addition. This is where the 5 percent incentive holds significant potential.

Additionally, the government's decision to withdraw the zero-duty import facility for 10–30 count cotton yarn under the bonded warehouse system should also be viewed in this context. The National Board of Revenue (NBR) issued the gazette notification on September 7, with the stated aim of protecting domestic textile and spinning mills. Garment manufacturers may now import these yarn counts against a bank guarantee instead of enjoying zero-duty access. (The Ministry of Commerce has suspended its decision to withdraw the bond facility for imports on September 13.)

The policy direction is understandable, but it raises an important question: can protection and competitiveness be achieved at the same time?

Local yarn manufacturers have long faced high energy costs, expensive raw materials, costly financing, technological limitations, and productivity challenges. Simply increasing incentives and restricting competing imports may provide short-term protection, but it will not automatically create a globally competitive spinning industry.

There is also a risk that higher domestic input costs could eventually put additional pressure on garment exporters. If locally produced yarn remains more expensive than imported alternatives even after the incentive, exporters may lose part of their already narrow competitive margin. In global markets, where buyers remain highly price-sensitive, this could prove counterproductive.

Moreover, domestic textile producers cannot always meet every requirement in terms of yarn counts, specialized fibers, quality, colors, or technical specifications. Import flexibility must therefore remain available where local supply is inadequate. Protecting domestic industry should not come at the expense of exporters' ability to meet buyers' requirements.

At the same time, protection must be accompanied by investment and modernization. The government's updated regulations easing imports of capital machinery and industrial spare parts are therefore welcome. Under the revised arrangement, the allowance will be 2 percent of capital machinery value in the first and second years, 1.5 percent in the third year, and 2 percent annually from the fourth year onward. Such measures could help industries modernize, improve productivity, and reduce operational bottlenecks.

The challenge now is to connect these measures into a coherent industrial strategy. The 5 percent incentive should not become a permanent subsidy for inefficient production. It should instead serve as a bridge toward greater productivity, technological upgrading, and competitiveness.

The government must therefore focus on reliable energy supply, affordable financing, technology modernization, productivity improvement, efficient customs procedures, and international-standard yarn and fabric production. A robust traceability system is equally important to ensure that incentives genuinely support the use of domestic inputs.

Bangladesh's apparel industry is entering a critical phase amid LDC graduation, rising costs, and changing buyer expectations. The objective should not merely be to make exporters use domestic raw materials. The real objective must be to make them choose domestic raw materials because they are better, faster, and more competitive.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has called on the World Bank to scale up financial support and expand the scope of funding for sustainable water management in the country's ready-made garment (RMG) sector.

The call was made during a high-level bilateral meeting held at the BGMEA Complex in Uttara, Dhaka, on October 7, 2026.

Mahmud Hasan Khan, President, BGMEA, led the discussions from the industry side, alongside Dr. Md. Hasib Uddin, Director, BGMEA.

Mara K. Warwick, Regional Director for Sustainable Development for the South Asia Region, World Bank, led the visiting high-level delegation.

Other key members of the World Bank delegation included David Malcolm Lord, Lead Water Specialist; Rokeya Ahmed, Senior Water Supply and Sanitation Specialist; Md. Mahadi Hasan, Water Specialist; and Bushra Nishat, Environmental Specialist.

During the meeting, Mahmud Hasan Khan stated that water management is directly linked to international trade and global competitiveness. He noted that international buyers, especially European brands, prioritize reduced water use, wastewater treatment, and water recycling data. Protecting local water resources is essential to retaining export markets.

The meeting reviewed the ongoing Dhaka Water Security and Resilience Program and its 5 million dollar Viability Gap Funding pilot project. BGMEA had proposed 31 factories for the pilot, out of which the World Bank selected eight. Leaders noted that this fund is highly insufficient compared to the massive demand for green technology adoption. BGMEA urged the World Bank to significantly increase the funding volume and project scope.

High investment costs remain a major barrier for factories. BGMEA leaders emphasized that international development partners must provide large-scale grants, long-term financing, or zero-interest loans to help entrepreneurs transition successfully.

Participants also discussed infrastructure realities. Many factories lack nearby water bodies or proper drainage for individual effluent treatment plants. Leaders suggested utilizing tank trucks for industrial waste removal and establishing cluster-based treatment plants. They also requested expanding these initiatives beyond Dhaka to other industrial zones.

Furthermore, BGMEA stressed that environmental policies should not change abruptly. Providing predictable rules with adequate transition time will encourage factories to make long-term green investments.

The World Bank delegation positively received the proposals and assured continued logistical support to accelerate the green transition of Bangladesh's garment industry.

The Asian Development Bank (ADB) has signed two loan agreements totaling $275 million and a $2.72 million grant with the Government of Bangladesh to implement vital infrastructure and community empowerment projects.

The financing agreements were signed on 7^th Oct by   Md. Shahriar Kader Siddiky, Secretary, Economic Relations Division (ERD) and Qingfeng Zhang, Country Director, ADB Bangladesh Resident Mission. The initiative includes a $100 million loan for the Inclusive Affordable Housing Finance Project, implemented through the Palli Karma-Sahayak Foundation (PKSF) to expand climate-resilient housing for low- and middle-income families.

Additionally, a $175 million loan and a $2.72 million grant funded by the Japan Fund for Prosperous and Resilient Asia and the Pacific (JFPAR) will support the Sustainable Energy Development and Community Empowerment in the Hill Tracts Project. Both loans carry a 2 percent annual interest rate. They feature a 25-year repayment term, which includes a five-year grace period.

These projects directly target regional energy access and housing. At the same time, stable power infrastructure and sustainable regional development serve as critical indirect catalysts for the broader macro-economy and export sectors. Reliable green energy expansion helps mitigate national power grid vulnerabilities. This lowers operational disruptions for manufacturing supply chains.

The country continues its push toward sustainable industrialization and energy transition. Upgraded regional infrastructure complements broader multilateral investments in backward linkage industries and green factory transformations. ADB has a historical portfolio of over $36.6 billion in loans to Bangladesh. These targeted financial inflows reinforce long-term economic stability, regional connectivity, and industrial trade.

The global technical textiles market is entering a steady expansion phase as industries demand advanced, high-performance materials. Market research from BCC Research shows the sector was valued at $228.7 billion in 2025 and is projected to hit $318.7 billion by 2031, growing at a compound annual growth rate of 5.9% from 2026 to 2031.

This growth reflects a major shift toward engineering fabrics for specific industrial needs rather than conventional apparel, leveraging strength, low weight, and durability.

Asia-Pacific anchors this expansion, currently holding 38.1% of the global market with its massive manufacturing base and competitive costs. Government initiatives like India's Production Linked Incentive scheme are accelerating this momentum by approving around $1.2 to $1.3 billion to build domestic capacity.

Healthcare is also fueling demand through rising medical spending and an increase in specialized surgical procedures. Medtech innovations now span advanced wound care, biocompatible implants, and wearable health-monitoring devices that require antimicrobial performance.

At the same time, cutting-edge technologies are expanding capabilities, with nanotechnology projected to grow at a 7.3% compound annual growth rate and 3D weaving expected to grow at 6.7% through 2031.

Ultimately, these advancements are paving the way for self-decontaminating fabrics through metal-organic framework materials and smart e-textiles. The market outlook proves that technical textiles are becoming deeply intertwined with broader industrial innovation, where long-term success relies heavily on developing specialized materials.

Bangladesh is seeking to expand its readymade garment exports to Indonesia as the two countries revisit stalled trade negotiations, highlighting a largely untapped apparel market despite their position as competitors in the global textile and clothing industry.

The push gained fresh momentum on October 7 during a high-level meeting at the Commerce Ministry, where Khandakar Abdul Muktadir, Minister, Ministry of Commerce, discussed bilateral trade with visiting Mohammad Anis Matta, Deputy Foreign Minister, Ministry of Foreign Affairs, Indonesia. The trade minister noted that bilateral commerce could rise significantly if market-access barriers are removed. Bangladesh currently exports about $56 million worth of goods to Indonesia while importing around $3.5 billion, leaving a substantial trade deficit.

For Bangladesh's apparel sector, Indonesia remains a relatively small destination. Yet according to UN Comtrade data, the latest product-level figures show a meaningful existing market. Indonesia imported $48.41 million worth of apparel from Bangladesh in 2025, comprising $26.26 million in non-knit garments and $22.15 million in knitwear.

According to UN Comtrade data, the product mix points to opportunities across several categories. Indonesia imported $8.44 million of Bangladeshi T-shirts, $4.63 million of sweaters, pullovers and vests, and $2.07 million of men's knitted shirts in 2025. On the woven side, imports included $8.75 million of men's suits, jackets and blazers and $7.18 million of women's suits, jackets, blazers and dresses.

Bangladesh's textile presence extends beyond finished apparel. Indonesia imported $14.23 million of vegetable textile fibres, paper yarn and woven fabric from Bangladesh in 2025, alongside $5.45 million of other made-up textile articles.

The scale of the opportunity becomes clearer against Bangladesh's overall apparel export base. The country earned $38.70 billion from RMG exports in FY2025-26, with the European Union accounting for $19.06 billion, the US $7.74 billion and the UK $4.39 billion. Non-traditional markets collectively generated $6.16 billion.

Bangladesh and Indonesia have completed four rounds of discussions on a proposed preferential trade agreement, but talks have remained stalled since 2023, particularly over duty-free market access for Bangladeshi RMG products.

During the October 7 meeting, Mohammad Anis Matta, acknowledged that the two countries' textile and apparel sectors are competitors, but emphasized that outstanding issues should be resolved through mutual efforts. The two sides also discussed advancing the preferential trade agreement and a broader comprehensive economic partnership agreement. Additionally, the Indonesian side proposed a ministerial-level meeting during an upcoming international trade exhibition in Indonesia to further accelerate commercial ties.

For Bangladesh, securing better access to Indonesia supports its broader strategy of diversifying apparel destinations. The country's RMG exports to non-traditional markets reached a record $642.93 million in August 2026, showing the increasing importance of markets beyond its traditional Western destinations.

The opportunity is also becoming more urgent as Bangladesh prepares for its least developed country graduation. Expanding market access in large Asian economies such as Indonesia could help offset future preference-related pressures in established markets.

The immediate challenge, however, is converting political discussions into commercially meaningful access. A trade agreement that lowers duties on Bangladeshi apparel, simplifies procedures, and improves market entry could significantly change the economics of the bilateral apparel trade.

With Bangladesh exporting less than $60 million in total goods to Indonesia against a $3.5 billion import bill, the apparel sector offers one of the clearest areas for narrowing the gap. The next stage of trade negotiations will therefore be important not only for bilateral balance but also for Bangladesh's effort to build Indonesia into a larger RMG destination.

Beximco Group is seeking government approval for a leasing plan to partially reopen a closed garment factory at its Gazipur industrial park. The move involves British and Chinese investors aiming to revive production and boost export capacity.

Under the proposed five-year arrangement, British firm Charter HCP Ltd and Chinese company Besting Ltd plan to invest $23 million to restart Prefix Fashions Ltd at Beximco Industrial Park in Kashimpur.

Khalid Shahrior, Chief HR & Compliance Officer at Beximco Textiles, Apparel & PPE Division and Huda Mohammed Faisal, CEO of Revival Global, which is acting as an asset manager for the investors, confirmed the plan.

Beximco officials are scheduled to meet the chairman of Invest Bangladesh on October 11 to discuss the proposed leasing model. The arrangement would also require approval from Invest Bangladesh and Bangladesh Bank.

If approved, the factory is expected to resume operations in April next year, primarily producing export-oriented jackets. Around 90% of its production would focus on jackets, while the remaining 10% would cover other apparel products.

The factory is expected to initially employ around 2,500 workers. The investors estimate that the unit could export garments worth about $500 million within two to three years, with Besting’s international retail and brand network expected to support order generation.

Prefix Fashions is one of 16 textile and garment units located inside the Beximco Industrial Park. According to Beximco officials, the factory has been a joint venture with Besting since its establishment.

A key feature of the proposed model is the repayment mechanism. The foreign investors would sign a five-year agreement with Beximco, while loan repayments would be made directly from the factory’s export proceeds through banks holding liens over the assets.

Under the arrangement, banks would automatically deduct the agreed repayment amount from export earnings. According to the officials, this mechanism would reduce the possibility of Beximco interfering with the repayment process.

Beximco would also comply with the required environmental, social and legal conditions for restarting the factory, if the proposal receives government approval.

The proposed arrangement could eventually extend beyond Prefix Fashions. If the leasing or profit-sharing model proves successful, Beximco plans to reopen its other 15 closed units at the industrial park in phases.

Officials estimate that reopening all the units could create employment for more than 30,000 workers who lost their jobs following the closure of the factories.

Revival Group, a Japanese-Bangladeshi venture, has also been working with Beximco on plans to revive its shuttered textile operations. The company was previously involved in a proposed lease arrangement under which it planned to invest $20 million with US-based Ecomilli.

The reopening plan comes as Beximco continues to face a significant debt burden. Its total bank debt is reportedly more than Tk40,000 crore, including Tk29,925 crore against 32 factories at the Beximco Industrial Park. Janata Bank alone is reportedly owed Tk23,285.42 crore.

The industrial park’s factories, owned by former private industry and investment adviser Salman F Rahman, faced severe disruption following the political changeover in August 2024. Several factories were vandalized and set on fire during the unrest.

The interim government subsequently announced the closure of all 16 units in March 2025 after the group failed to pay workers’ wages and other dues. The government had earlier provided Tk526 crore to settle workers’ wages and related payments.

Nahian Rahman Rochi, a member of Invest Bangladesh, said the government would be able to guide Beximco on the proposal after meeting Revival representatives and examining the business model in detail.

If approved, the Prefix Fashions project could therefore serve as an initial test of whether foreign investment and structured leasing can help revive Beximco’s idle manufacturing assets while restoring employment and export capacity.

A new gas discovery in Noakhali has opened the prospect of additional domestic gas supply to Bangladesh’s national grid.

Although the size and commercial potential of the find will depend on the results of an ongoing production test.

Gas was discovered at the Sundalpur-4 Appraisal cum Development Well in Bar Charigaon village of Nabipur Union under Senbag upazila. Project Director Md. Mozammel Haque confirmed the discovery on Wednesday (October 7), saying a Drill Stem Test (DST) is now underway.

The test is expected to take another four to five days and will determine the well’s reserve and recoverable gas volume. Preliminary estimates suggest the well could produce around 7 million cubic feet of gas per day for the national grid.

The potential production rate makes the discovery significant for Bangladesh’s domestic gas supply, but the actual contribution of the well cannot be assessed until the DST establishes its sustainable production capacity and recoverable reserves.

The gas presence was formally confirmed on 06 October after drilling was completed and a flame was ignited at the pipehead. Drilling of the well began on July 28 under Bangladesh Petroleum Exploration and Production Company Limited (BAPEX).

BAPEX sources said the well was drilled to a depth of 1,578 meters using directional drilling and Measurement While Drilling (MWD) technology. Gas was encountered at depths of 1,420 to 1,460 meters.

The location of the new discovery also extends the operational significance of the Sundalpur gas structure. Three previous wells—Sundalpur-1, Sundalpur-2 and Sundalpur-3—were drilled in Sirajpur of Companiganj upazila.

The discovery therefore represents an appraisal and development step in an already identified gas-bearing structure rather than an isolated exploration effort.

The next milestone will be the completion of the DST. Its findings will determine whether the preliminary 7 mmcf per day production estimate can be sustained and how much gas can ultimately be recovered from the well.

For Bangladesh, the outcome could provide a clearer picture of the country’s domestic gas potential and the scope for adding new locally produced supply to the national grid.

World Cotton Day 2026 is being observed on October 7, highlighting the continued importance of cotton to global agriculture, textile production, international trade and the livelihoods of millions of people.

The United Nations officially designated October 7 as World Cotton Day through a resolution adopted by the UN General Assembly on August 30, 2021.

The initiative was originally proposed by four major African cotton-producing countries—Benin, Burkina Faso, Chad and Mali, collectively known as the Cotton-4.

The day aims to raise global awareness of cotton’s contribution to economic development and highlight the challenges faced by farmers, producers, processors and workers across the cotton value chain.

The Food and Agriculture Organization of the United Nations (FAO), International Trade Centre, UN Conference on Trade and Development and International Cotton Advisory Committee supported the initiative before its formal adoption by the UN.

Cotton remains one of the world's most important natural fibers and a key raw material for the global textile and apparel industry. Around 80% of cotton is used for clothing, while another 15% is used for home textiles and other household products, according to FAO data.

Beyond its role as a textile fiber, cotton is an important source of income for millions of farming households. Around 24 million producers are involved in cotton cultivation globally, while the wider sector supports more than 100 million families through farming, processing, manufacturing and trade.

For many developing economies, cotton exports are also an important source of foreign exchange. As a result, changes in global cotton prices, production and demand can have a direct impact on farmers and national economies.

Global cotton production remains substantial. FAO data indicate that around 26 million tons of cotton were produced worldwide in 2024, while more than 9 million tons entered international trade.

China, India, Brazil, the United States and Pakistan are among the world's largest cotton producers, together accounting for more than three-quarters of global output.

Cotton cultivation is concentrated mainly in subtropical and seasonally dry tropical regions, where production depends heavily on adequate heat and water availability. This makes the sector increasingly exposed to climate-related risks and changing weather patterns.

Despite its continued importance, cotton's share of global fiber consumption has declined significantly over the decades, largely because of the rapid expansion of synthetic fibers, particularly polyester.

Cotton accounted for around 60% of global fiber consumption in the 1960s, but its share has fallen to roughly one-fifth of the market today. Nevertheless, it remains the world's second-most-used fiber after polyester.

Women also play a major role in the cotton value chain. FAO estimates suggest that women account for about 43% of the workforce involved in cotton production, particularly in farming and harvesting activities across parts of Africa and Asia.

World Cotton Day has evolved into an international platform for discussions on the future of the cotton sector. Conferences, exhibitions and industry meetings held around the day focus on productivity, technology, trade, farmer livelihoods and sustainable production.

For the textile industry, the observance also highlights the need to strengthen cotton's competitiveness while addressing environmental and social challenges across its value chain.

As the global fiber market continues to change, World Cotton Day 2026 serves as a reminder that cotton is more than a textile raw material. It remains an important agricultural commodity supporting millions of livelihoods and connecting farmers with the world's fashion and textile industries.