Bangladesh: Factory outputs reduce by 30-40% as Iran war increases pressure on manufacturing industries & workers
"Iran war disruptions spark higher costs and lost income in Bangladesh", 10 May 2026
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The strain in Islam's household reflects a broader squeeze in Bangladesh, heavily dependent on imported fuel, where energy shortages have disrupted daily life, slowed industrial output and raised concerns about economic growth...
Conditions have eased slightly in recent days...but concerns persist across sectors...
Higher fuel costs are leading to inflation and squeezing household budgets, while industries from manufacturing to transport are facing rising operating costs and supply disruptions...
The energy crunch is also driving up costs and threatening Bangladesh’s garment exports...business leaders say.
Anwar-Ul Alam Chowdhury, president of the Bangladesh Chamber of Industries, said exports to Europe and the U.S. could face a significant setback. Shipments have fallen between 5% and 13% in recent months, he said. He worries that customers could lose confidence in Bangladesh’s ability to deliver...
Chowdhury said factory output has dropped by 30% to 40% for various reasons and that the situation has worsened since the U.S. and Israel launched their war against Iran, while business costs have risen by about 35% to 40%...
Alvi Islam, director of Arrival Fashion Limited, said manufacturers are facing higher costs for petroleum-based materials such as sewing threads, poly bags and cartons, while spending more on diesel generators to cope with frequent power cuts...
Garment worker Mosammet Runa, 35, said she fears for her family’s future if the war continues.
"Millions of people like us depend on this industry. It is how we survive,” said Runa, who, along with her husband, earns about $400 a month to support their family of six...
"We are innocent people. The world should not make us victims," she said.