The closure of hundreds of industrial units over the past two years presents a deeply troubling picture for Bangladesh's economy. Beyond the immediate decline in industrial production and export performance, the phenomenon has left thousands of workers unemployed, disrupted supply chains, and weakened confidence in the country's manufacturing sector. At a time when the economy is striving to regain momentum amid global uncertainties, bringing these factories back into operation has become an urgent national priority.
According to a report published in this paper recently, as many as 457 industrial units have permanently shut down during the last two years. Shrinking work orders, financial distress among, labour unrest, and persistent energy shortages have been identified as the principal causes behind these closures. The impact has been particularly severe in the country's major industrial hubs -- Gazipur, Ashulia, and Chattogram -- which together account for 398 of the closed units. The problem is not confined to any single sector. While 170 factories belong to various export-oriented textile and garment associations, the majority -- 287 units -- are from the non-RMG sector. The consequences have already become visible in the labour market. In just the first five months of this year, 79 factories laid off nearly 7,800 workers due to declining production and reduced work orders. Such developments inevitably raise concerns about income security, poverty, and social stability. Industry insiders point to a complex combination of domestic and international factors. Weak global demand, the bankruptcy of foreign buyers, geopolitical tensions, supply-chain disruptions, shortages of raw materials, and banking-sector complications have all contributed to the crisis. Political uncertainty and factory relocations have further compounded the difficulties. These challenges highlight the reality that industrial recovery requires more than short-term interventions; it demands a coordinated response that addresses both structural weaknesses and immediate financial constraints.
Against this backdrop, the initiatives undertaken by the newly elected government and the central bank deserve recognition. Bangladesh Bank has introduced two refinancing schemes aimed at reviving distressed enterprises. One allocates Tk 200 billion to large industrial and service-sector units that have either closed down or are operating below capacity because of working-capital shortages. Another Tk 50 billion package has been earmarked for cottage, micro, small, and medium enterprises (CMSMEs). The central bank's move to gather information on closed and partially operational factories also indicates a serious effort to identify viable candidates for revival. Yet, as stakeholders have rightly pointed out, the effectiveness of these measures will depend largely on accessibility. Many small and medium-sized enterprises -- the very businesses most in need of support -- remain unable to benefit because of stringent eligibility conditions, poor credit histories, and collateral requirements. Industry leaders have argued that factories capable of resuming production quickly should receive priority assistance, as their revival would immediately boost employment and export earnings.
The revival of closed factories is, therefore, not merely an economic necessity but a social imperative. Targeted support can transform idle industrial assets into engines of growth, employment, and renewed confidence in the country's manufacturing future.
