Staff Correspondent
To bring systemic, positive change to the textile value chain in Bangladesh, IFC’s Partnership for Cleaner
Textile (PaCT) program has catalyzed transformative change over the last 10 years, contributing to the
sector’s competitiveness and environmental sustainability.
Since the inception of the PaCT program in 2013, IFC has worked with over 450 textile factories in
Bangladesh, helping them embrace climate-smart practices. The initiative has substantially reduced
fresh-water consumption by 35 billion liters, enough to meet the annual water needs of over 1.9 million
people. It has also curbed 723,617 tons of carbon emissions per year, equal to removing nearly 160,000
cars from the road annually.
An IFC advisory program—supported by the supported by the Government of Denmark and the
Kingdom of Netherlands, — PaCT is spearheaded by IFC and implemented in collaboration with the
Bangladesh Garment Manufacturers and Exporters Association (BGMEA). Over the years, PaCT has been
working with leading partners, including VF Corp, PUMA, Levi Strauss & Co, and TESCO.
“Let me stress how pleased we are to see that PaCT has become a market leader in both its scale and
comprehensiveness of its activities, especially on advisory support for energy efficiency and renewable
energy”, said Christian Brix Moller, Ambassador of Royal Danish Embassy.
The second-largest exporter in the ready-made garment (RMG) sector, Bangladesh’s textile industry is a
key contributor to the nation’s economic growth and sustainability, providing over four million jobs—54
percent of them are women—and accounting for 85 percent of the country’s export earnings.
“We appreciate the contribution of the PaCT program by IFC over the past decade. We hope that its
impact will continue in the coming decades and our industry will grow at a rapid rate while remaining
sustainable and safe,” said Miran Ali, Vice President, BGMEA.
The governments of Denmark and Netherlands have been a long-standing partner of Bangladesh in its
journey of making the textile and apparel sector more sustainable. The PaCT program has directly
contributed to enabling a positive mindset shift in the Bangladeshi textile industry over the past decade.
One of the key achievements has been the launch of Textile Technology Business Centre, all set to
become the country’s leading knowledge hub for the textile industry.
The next phase of the PaCT program will pivot towards advancing circular practices and decarbonization
initiatives to address the industry’s carbon footprint. While sustaining industry competitiveness, this
strategic shift aims to foster high-value product manufacturing, facilitate market diversification, and
mitigate environmental, social, and corporate governance risks.
“As IFC commemorates a decade of impactful collaboration through our PaCT program, we are
committed to fostering sustainable growth within Bangladesh’s textile industry. IFC will continue to help
the country’s ready-made garment sector ascend the global supply chain and meet the demands of a
more modern and greener market. The sector’s resilience is key to increasing exports and supporting
market diversification in Bangladesh,” said Martin Holtmann, Country Manager for Bangladesh, Nepal,
and Bhutan, IFC.
“In our textile sector engagement, we prioritize initiatives like PaCT, recognizing sustainability's key role
in economic growth. As Bangladesh advances to Middle Income status, leveraging economic complexity
becomes crucial for sustainable development. The industry's global ties and diverse operations
underscore its importance in driving innovation and job creation, powering the country's economy.”
Henri Rachid Sfeir, Manager, MAS Asia Upstream & Advisory,
