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Stern action if RMG owners fail to repay loans by Dec: Labour adviser

FE REPORT | September 11, 2025 00:00:00


Shipping and Labour and Employment Adviser Brig Gen (retd) Dr M Sakhawat Hussain on Wednesday said the government would take stern legal action against garment factory owners who fail to repay the interest-free loans provided to pay workers' pending wages by December.

"To address labour unrest caused by unpaid wages, the government provided interest-free loans from the Finance Division and the Labour and Employment Ministry's Central Fund, but the industries have yet to repay them," he said during a meeting at the Secretariat in Dhaka.

The meeting was attended by BGMEA President Mahmud Hasan Khan, representatives of concerned factories, secretaries from the Ministry of Finance and the Banking and Financial Institutions Division, and officials from Bangladesh Bank.

Citing specific defaulters, including Birds Group, TNZ Group, Beximco Group, Dird Group, Niagara Textiles Ltd, Roar Fashion Ltd, Mahmud Jeans Ltd, Style Craft Ltd, and Gold Star Garments Ltd, the labour adviser said the factories have not repaid the loans according to the agreements.

"The government will take a tough stance against them. Measures will be taken to seize their passports," he warned, adding that steps have already been initiated to issue Interpol red alerts against some fugitive owners.

He also directed authorities to suspend passports of absconding factory owners and their top officials.

"The money given as loans belongs to the workers and

taxpayers of the country," he said, giving a December deadline for repayment.

He stressed that no concessions would be made and urged factory owners to repay the loans by selling factories, land, or machinery if necessary, in consultation with their respective lien banks.

The adviser also called on BGMEA and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) to act as mediators and ensure effective loan recovery measures are taken.

According to sources, the government provided Tk 5.25 billion in loans to Beximco Group alone to pay 31,669 workers and 1,565 officials.

munni_fe@yahoo.com


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