Written by The Banking Post
Bangladesh is failing to tap into the fast-growing global packaging market—estimated at about $700 billion—as weak policy support and the absence of export incentives continue to hold the sector back, industry leaders said on Sunday.
Despite having strong manufacturing capacity and rising global demand, regulatory and fiscal barriers are limiting export growth, according to the Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA).
Speaking at a press conference in the capital ahead of the Garment Accessories and Packaging Expo (GAPEXPO) 2026, BGAPMEA President Md Shahriar said the sector’s export performance does not match the level of policy backing it receives.
The industry currently records around $1.6 billion in direct exports, while deemed exports exceed $7.8 billion. Yet expansion remains difficult due to persistent policy constraints, he said.
A key concern is the absence of cash incentives for direct exports of packaging products. Competing countries such as China, Vietnam, Cambodia and Indonesia offer export incentives ranging from 4 per cent to 17 per cent, while Bangladesh provides none for this sector, weakening its global competitiveness.
High duties on raw materials are another major hurdle. Imports of paper below 300 GSM attract combined taxes and duties ranging from 58 per cent to 83 per cent, sharply increasing production costs. These tariff structures, linked to the National Board of Revenue, put local manufacturers at a disadvantage compared to regional rivals, BGAPMEA leaders said.
The association also alleged unequal treatment compared to the ready-made garment (RMG) sector, which enjoys broader policy, banking and regulatory support. “Bank financing, customs facilities and central bank policies available to the RMG sector are not implemented in practice for us, resulting in clear discrimination,” Md Shahriar said.
He added that accessories and packaging products are excluded from cash incentives for both direct and deemed exports, even though some other export items receive such benefits. Restrictions on duty-free imports of lower GSM paper further reduce production flexibility.
BGAPMEA urged the government to extend the validity of Utilisation Permits from one year to three years to ease operational pressure. Although import policy provisions allow deemed exporters to enjoy facilities similar to direct exporters, these are often not applied in practice, the association claimed.
Rejecting claims that certain accessories or packaging items cannot be produced locally, Md Shahriar said Bangladesh is now capable of manufacturing 100 per cent of such products. Existing infrastructure, skilled workers and factory capacity built for the RMG sector could be leveraged to boost direct exports without major new investment, he added.
The press conference said formal proposals have already been submitted to the National Board of Revenue and the Ministry of Commerce, seeking export incentives, tax relief on raw materials and wider policy support. Speakers expressed optimism, noting that the government has identified the sector as a potential driver of export growth and employment.
Md Shahriar stressed there is no conflict with the garment sector, calling accessories and packaging a critical support industry. “If this sector advances, it will help increase export earnings and create more jobs,” he said.
Meanwhile, the four-day GAPEXPO will open on Wednesday at the International Convention City Bashundhara in Dhaka. It will run alongside the 23rd Garment Technology Bangladesh 2026 and the 12th International Yarn & Fabrics Sourcing Show 2026.
The combined expos will feature about 350 exhibitors from over 15 countries across 1,500 booths, showcasing more than 450 global brands and the full RMG supply chain. The event will be open to business visitors from 11:00 am to 7:00 pm throughout the show.
