Will Bangladesh's FY26-27 budget give RMG sector the boost it needs? - Fibre2Fashion Sponsored Join Our Exclusive Free Webinar on Strategic Intelligence for Apparel Sourcing Leaders | Register Now Source innovative home textile products and
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Will Bangladesh's FY26-27 budget give RMG sector the boost it needs?
29 Jun '26
3 min read
Pic: zakir1346 / Shutterstock.com
Insights
Bangladesh's proposed FY2026-27 budget offers major relief to the apparel sector through tax cuts, lower import and export levies, support for MMF diversification, renewable energy incentives and reduced compliance burdens.
Will it be able to provide the much-needed thrust to the RMG sector which continues to grapple with multiple challenges?
Bangladesh’s Parliament was poised to pass the proposed national budget for fiscal 2026-27 ahead of the new financial year beginning July 1, following an intense final round of debate on Sunday as lawmakers reportedly scrutinised the spending plan.
Notwithstanding the political back-and-forth, Bangladesh’s apparel industry may finally have reason for optimism as the proposed FY26-27 budget delivers a series of long-awaited tax cuts, compliance reforms and incentives aimed at restoring export competitiveness.
The timing could hardly be more crucial. Bangladesh’s readymade garment (RMG) sector, the country’s export powerhouse, has been navigating rough waters. Export earnings have slipped, average unit prices have fallen, raw material imports have slowed, and nearly 400 factories have shut their doors over the past three years, as per the reports.
Bangladesh's proposed FY2026-27 budget offers major relief to the apparel sector through tax cuts, lower import and export levies, support for MMF diversification, renewable energy incentives and reduced compliance burdens.
Will it be able to provide the much-needed thrust to the RMG sector which continues to grapple with multiple challenges?
Rising production costs, weak global demand and the looming challenge
