DHAKA, June 2, 2024 (BSS) - 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, said a press release.

 It has also curbed 7,23,617 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," said Martin Holtmann, Country Manager for Bangladesh,
Nepal, and Bhutan, IFC.

" The sector's resilience is key to increasing exports and supporting market
diversification in Bangladesh," added Holtmann.

"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, IFC.