Govt plans to privatise state-run silk factories for revival, says PM

The government is considering handing over the state-owned silk factories to the private sector as part of its efforts to revive Rajshahi's traditional silk industry, Prime Minister Tarique Rahman has said.

The issue came up during the prime minister's meetings with leaders of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) at the secretariat in the capital on Monday.

Speaking to The Financial Express after the meeting, BKMEA President Mohammad Hatem said the prime minister had emphasised restoring the past glory of the country's silk industry through private-sector participation.

Referring to the prime minister's remarks, Hatem said the government was willing to hand over state-owned silk factories to private entrepreneurs to facilitate the sector's revival.

"If any apparel owner is interested, the prime minister advised them to contact the government," he said, adding that BKMEA leaders had expressed willingness to cooperate in the initiative.

Earlier, the interim government had handed over three long-idle state-owned factories in Rajshahi, including Rajshahi Textile Mill and Rajshahi Jute Mill, to PRAN-RFL Group under a public-private partnership model.

Under the initiative, operations have already resumed, creating employment opportunities for many local residents, with plans for further expansion.

At Monday's meetings, the prime minister also urged apparel entrepreneurs to diversify their businesses beyond the readymade garment (RMG) sector.

"The economy is overly dependent on a single sector. Apparel entrepreneurs must diversify their businesses," BGMEA President Mahmud Hasan Khan quoted the prime minister as saying.

Responding to the call, the BGMEA leader said apparel entrepreneurs were prepared to take the lead in diversification as the sector had built the country's export base over decades.

He said the BGMEA board would seek another meeting with the prime minister to present a detailed diversification roadmap along with supporting documents.

During the meetings, apparel sector leaders also sought uninterrupted gas and energy supply, policy support, and measures to defer Bangladesh's graduation from the least developed country (LDC) category.

They urged the government to address long-standing problems related to banking, the National Board of Revenue (NBR), customs, VAT, and industrial operations to sustain growth and protect investments in the export-oriented sector.

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