Bangladesh, Pakistan RMG associations sign MOU to boost bilateral trade
In a landmark move aimed at strengthening regional collaboration in the textile and garment sector, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) signed a Memorandum of Understanding (MoU) this week. The signing took place virtually, with representatives from both associations expressing optimism about future opportunities for cross-border cooperation and knowledge sharing.
Under the terms of the MoU, the two countries will engage in regular dialogue to explore new business opportunities, share best practices in sustainability and compliance, and promote bilateral trade in apparel and textile-related products. Both associations agreed to conduct joint research, exchange trade delegations, and organize B2B meetings to foster collaboration between members.
According to BGMEA President Faruque Hassan, “This MoU reflects our mutual desire to work together for the development of our industries and to tap into each other’s strengths. Pakistan’s strong textile raw material base and Bangladesh’s garment manufacturing expertise can complement each other well.“
From Pakistan’s side, PRGMEA Chief Coordinator Ijaz Khokhar stated, “This is an important step toward creating a South Asian textile corridor. By aligning our supply chains and strategies, we can become more competitive in the global market.“
The MoU also focuses on capacity building and training. As part of the agreement, both countries will facilitate training workshops, internships, and professional exchange programs. With sustainability becoming a key concern, the two associations also plan to collaborate on eco-friendly innovations, recycling technologies, and reducing carbon footprints in production.
Industry analysts believe this MoU could pave the way for a more integrated South Asian garment supply chain, potentially increasing exports from both countries. In 2023, Bangladesh exported over $46 billion worth of garments, while Pakistan’s textile and apparel exports totaled around $16.5 billion. Joint efforts could help improve competitiveness and reduce overreliance on Western markets.
The collaboration may also help both nations deal with common challenges such as compliance with international labor laws, increasing wage demands, and environmental sustainability targets. The shared initiatives could help small- and medium-sized enterprises (SMEs) in both countries become more resilient in the face of global disruptions, such as fluctuating raw material prices and trade barriers.
The first tangible initiative under this MoU is expected to be a Bangladesh-Pakistan Apparel Summit scheduled for later this year, to be held in Lahore. The event will bring together manufacturers, brands, sourcing companies, and policymakers to explore business partnerships and investment opportunities.
As geopolitical and supply chain challenges continue to redefine global sourcing strategies, this MOU between two of South Asia’s most significant RMG exporting countries may signal a new era of cooperation in the textile and apparel sector.
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