B Mirror Report : Bangladesh is failing to take advantage of the vast global packaging market, valued at around US$700 billion, due to insufficient policy support and the absence of export incentives, industry leaders said on Sunday.
Despite having strong manufacturing capabilities and rising global demand, the sector remains hampered by regulatory and fiscal obstacles that restrict export expansion.
The observations were made by Md Shahriar, president of the Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA), at a press conference held at a city hotel ahead of Garment Accessories and Packaging Expo (GAPEXPO) 2026. The event was jointly organised by ASK and BGAPMEA.
He said the sector’s solid export performance stands in sharp contrast to the limited policy backing it receives, placing it at a competitive disadvantage. According to him, direct exports from the sector are close to US$1.6 billion, while deemed exports exceed US$7.8 billion.
However, he noted that continued policy and regulatory constraints have prevented the industry from scaling up further. Md Shahriar said Bangladesh has struggled to secure a significant share of the global market mainly because no cash incentive is provided for direct exports.
He pointed out that competing countries such as China, Vietnam, Cambodia and Indonesia offer export incentives ranging from 4 percent to 17 percent, while Bangladesh’s packaging sector has never been included in any incentive scheme, undermining its international competitiveness.
Highlighting policy challenges, he said imports of paper below 300 GSM are subject to high duties and taxes ranging between 58 percent and 83 percent significantly increasing production costs. He described this as a major barrier linked to National Board of Revenue (NBR) tariff structures.
Md Shahriar also alleged unequal treatment, stating that while the ready-made garment (RMG) sector enjoys extensive policy, banking and regulatory support, the accessories and packaging sector remains largely excluded. He added that cash incentives are unavailable for both direct and deemed exports of accessories and packaging products.
He further said restrictions on duty-free imports of lower GSM paper limit production flexibility and raise costs. The BGAPMEA president urged the government to extend the validity of Utilisation Permits (UPs) from one year to three years to ease operational pressures.
Rejecting claims that certain products cannot be produced locally, he said Bangladesh is now capable of manufacturing 100 percent of garment accessories and packaging items, supported by existing infrastructure, skilled manpower and factory capacity developed under the RMG sector.
He added that written proposals seeking export incentives, raw material tax exemptions and broader policy support have already been submitted to the NBR and the Ministry of Commerce.
Responding to questions, Md Shahriar said the sector is a supporting industry for garments and poses no conflict with the RMG sector. “Growth of this sector will boost export earnings and generate employment,” he said.
Meanwhile, the four-day GAPEXPO 2026 will begin on Wednesday at the International Convention City Bashundhara (ICCB) in Dhaka. It will be held alongside the 23rd Garment Technology Bangladesh (GTB) 2026 and the 12th International Yarn & Fabrics Sourcing Show 2026.
The combined expos will feature around 350 exhibitors from more than 15 countries, spread across 1,500 booths, showcasing over 450 international brands. The exhibitions will cover garment machinery, accessories and packaging, yarn and fabrics, bringing the entire RMG supply chain under one roof. The event will remain open to business visitors from 11:00am to 7:00pm daily.
