Experts stressed to formulate a national structure and policy for the textile waste (jhut) of the country’s readymade garment (RMG) sector as its informal market fuels political-economic tensions and labour unrest in the sector.

They also emphasized that establishing a formal policy for jhut would not only support the transition to circularity but also help address the unrest currently affecting the RMG sector and a proper coordination between three stakeholders, manufacturers, waste management companies and the brands is must.
Moreover, an enabling policy framework is essential to drive the transition, as it could create millions of jobs in the recycling industry and reduce Bangladesh’s reliance on imports.
They were speaking at an event titled ‘Switch to Upstream Circularity Roundtable: Path Towards Circularity in Bangladesh’s RMG industry’ held in the capital on Monday. The event was organized under the SWITCH to Circular Economy Value Chains project, co-funded by the European Union and the Finland government.

UNIDO led it in collaboration with Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Global Fashion Agenda (GFA), BESTSELLER, Reverse Resources (RR), Chatham House, Circle Economy, and the European Investment Bank.
Living in a world in our time where climate is most threatened, business as usual is no more an option. In a race to zero emission and resource decoupling, circularity emerges as the ‘next normal’ linking business and sustainable development. For BGMEA, circularity sits in the core of our values, mission and vision, said, Vidiya Amrit Khan, DMD of Desh Group and former director of BGMEA and lead this project.
Bernd Spanier, Deputy Head of the EU Delegation to Bangladesh, said that the industrial textile waste market in Bangladesh remains largely informal, which has a significant political-economic impact on the sector, as seen during the recent labour unrest in the RMG sector in Ashula and other parts of Dhaka.
He also said that formalizing the sector is crucial, as a clear regulatory framework and enabling conditions would attract innovative recycling technologies and expertise.
“The transition toward circularity could create millions of jobs in the recycling industry and reduce Bangladesh’s reliance on imports. We believe that the next five years will be crucial for Bangladesh’s garment industry. Under the EU Strategy for Sustainable and Circular Textiles the EU is introducing significant initiatives in this region,’ he said.
He also said that garment-producing countries must transition from a linear to a circular production model to ensure that, by 2030—which is not far away—textiles in the EU market are largely made from recycled fibres, free of harmful substances, and produced in an environmentally and socially responsible manner.
Citing a recent study of GIZ, he said that Bangladesh’s lack of supportive policies has contributed to shifting preferences towards countries like Vietnam and Indonesia as destinations for recycling industries.
“We aim to retain the recycling industries in Bangladesh, but a post-industrial regulatory framework is essential, as current frameworks, such as the National Environmental Policy, Solid Waste Management Rules, and Bangladesh Labour Act, are not yet aligned with emerging EU and international standards for circularity in textile manufacturing and waste management,” he added.
Abdur Rahim Khan, additional secretary of the Ministry of Commerce, said that in Bangladesh, jhut was not only an economic issue but also a matter of law and order. “As you know, we face unrest within our RMG sector, and some of my colleagues suggest that jhut is contributing to this instability,” he said.
He emphasized the need to establish a policy for jhut waste management, saying that it would not only support the transition to circularity but also help address the unrest currently affecting the RMG sector.
He said that now time for Bangladesh has back to have a proper coordination between three stakeholders, manufacturers, waste management, companies and the brands.
If these stakeholders work together, transformation is likely to occur; otherwise, despite discussions and dialogues, real change may not take place, Rahim Khan mentioned.
Chief Technical Advisor on Circular Economy in Global Value Chain from UNIDO Mark Draeck said that that in the textile industry, especially regarding circularity, things were more complex, which is why progress has not been straightforward.
He highlighted two concrete pilots they are working on, closely collaborating with both brands and manufacturing companies to address challenges at the technology, logistics, economics, and traceability levels.
He said visiting partners like Fakir Group and Recycle Raw, along with other companies, where there was evident interest and readiness from the industry to move forward.
However, to scale these initial experiences across the industry, more systemic challenges must be addressed, including policy, capacity building, access to finance, and the necessary investments for this shift, Draeck mentioned.
BGMEA support committee member Rezwan Selim said that Bangladesh has already made progress in sustainability with the highest number of LEED certified green factories of the world.
“We aim to increase our sustainable material in line with the SDG. Circularity is our RMG’s industrial goals and we will accept any recommendations that will help us to move towards Excellence,” he added.
In the sideline of the event, Moyeen Hyder Chowdhury the Branch Manager (Country Manager) of Puma Bangladesh and Pakistan said, as a brand they are paying the fair or the right price for recycled garment makers of Bangladesh.
Desh Group deputy managing director Vidiya Amrit Khan moderated the event.