Accounting System and Operational Practice in AKH Packaging & Accessories Ltd.

Abstract

AKH Packaging & Accessories Ltd. being the export-oriented garments packaging and accessories company in Bangladesh plays a crucial role in supporting the country’s Ready-Made Garments (RMG) sector, which accounts for over 80% of Bangladesh’s total export earnings. As a backward linkage industry, AKH Packaging & Accessories Ltd. provides essential packaging materials and accessories such as cartons, poly bags, labels, hangtags, buttons, zippers, and trims that are indispensable for garment production and international shipment. This study highlights the industry’s contribution to the national economy, its operational framework, and its challenges and opportunities. Operating under the customs bonded warehouse facility, AKH Packaging & Accessories Ltd. is able to import raw materials duty-free, ensuring cost-effective production and timely supply to garment exporters. This bonded warehouse facility positioned the industry as a vital partner in Bangladesh’s global apparel value chain. The analysis indicates that the sector has grown significantly over the past two decades, with more than 1,800 companies now operating under the Bangladesh Garments Accessories & Packaging Manufacturers & Exporters Association (BGAPMEA). AKH Packaging & Accessories Ltd. not only meets the increasing demand from domestic RMG factories but also contribute indirectly to foreign currency earnings through exports.The study further identifies a strong shift towards sustainable and eco-friendly packaging solutions as global buyers emphasize compliance with environmental standards. AKH Packaging & Accessories Ltd. is investing in recyclable materials, modern machinery, and innovative designs to meet these evolving demands. However, challenges such as dependency on imported raw materials, price competition, compliance requirements, and rising production costs remain significant obstacles. Despite these challenges, the future outlook for Bangladesh’s export-oriented garments packaging and accessories industry remains highly promising. Continued investment in sustainability, innovation, and compliance—along with government policy support—will enable the sector to strengthen its role in the global supply chain and further contribute to Bangladesh’s export-led economic growth.