Dhaka: Bangladesh's garment industry, a vital pillar of the country's economy, has suffered losses of $400 million due to unrest following the ousting of former Prime Minister Sheikh Hasina, industry leaders announced on Sunday. The protests, which began as a student-led revolution, disrupted the operations of the country’s 3,500 garment factories, which account for 85 percent of Bangladesh's $55 billion in annual exports.

Sheikh Hasina fled to India in early August after months of deadly protests. An interim government, led by Nobel Peace Prize laureate Muhammad Yunus, took over, but tensions in the garment sector persisted as workers demanded higher wages and job security. Clashes between police and protesters occasionally escalated into violence, with one garment worker killed and 20 others injured in late September.

Kalpana Akhtar, president of the Bangladesh Garments and Industrial Workers Federation, urged factory owners and the government to address workers' concerns, warning that the current calm could be temporary without significant reforms. "Discussions on pay only happen when workers take to the streets," Akhtar said, calling for "a drastic change" to ensure long-term stability.

Khandaker Rafiqul Islam, president of the Bangladesh Garment Manufacturers and Exporters Association, confirmed that the industry had regained some stability, but emphasized the importance of continued security efforts. A military task force has been deployed to protect factories, and Islam stressed that maintaining law and order is crucial for restoring buyers' confidence in Bangladeshi apparel.

Bangladesh is the world’s second-largest clothing exporter after China, supplying major global brands like Levi’s, Zara, and H&M. While industry leaders say the situation has improved, they caution that without addressing underlying issues, future unrest could threaten the country's key economic sector.