KARACHI: Fuelled by dissatisfaction with a government-imposed pay increase, hundreds of garment workers in Bangladesh took to the streets last month, leading to the closure of nearly 40 factories. Bangladesh’s woes may create a small window for textile exports. “Wages are negotiated every five years in Bangladesh, and this time around, the wage rate adjustment fell close to the country’s elections amid soaring inflation,” explains Shahid Soorty, CEO of the Soorty Group, which has significant investments in the former East Wing. “The resultant strikes increased the risk profile of business in Bangladesh. For example, H&M buys 60 per cent of its goods from Bangladesh — H&M’s annual sales are in the ballpark of $20-22 billion,” he says. As a result,…
