The leaders of the country’s apparel associations on Monday said they were expecting announcement of incentives for the sector from the government this week.
They expressed their optimism emerging from a meeting with finance minister Abul Maal Abdul Muhith at the latter’s secretariat office. Leaders of the Bangladesh Garment Manufacturers and Exporters Association and Bangladesh Knitwear Manufacturers and Exporters Association are pressing for incentives citing slowdown in business activities due to the ongoing political unrest.
Before the meeting Muhith told reporters that he would finalise the incentives after negotiating with prime minister Sheikh Hasina.
BKMEA president Mohammad Hatem said after the meeting that they were assured by the finance minister of finalisation of the demands this week.
BGMEA president Md Atiqul Islam said they discussed their demands with the finance minister once again. No concrete decisions were made in the meeting, he said.
BGMEA and BKMEA demanded for arrangement of a special loan package including low-interest credit for paying workers’ wages and blocking of term loans without any interest for the next two years.
Meanwhile, the government has already fulfilled a demand by the businessmen by allowing cash incentive in advance telegraphic transfer. A circular in this connection was issued by the finance ministry on Thursday.
Despite the slowdown in business activities claimed by the businessmen the country’s export earnings in November grew by 25.34 per cent to $2.21 billion from $1.76 billion one year ago.
The readymade garment exporters, who want relax of loan classification rules for two years and waive of additional charges at Chittagong port, said the adverse impact of the lingering political unrest would emerge in February-March.
Putting pressure on the successive governments by the RMG exporters for additional incentives is a common
phenomenon. Last month the government lowered the export tax slightly in addition providing cash incentive.
Critics said pressuring the successive governments for additional incentives was a common practice by the businessmen who forecast that the readymade garment exports would fall drastically due to phase out of quota facility Bangladesh enjoyed from the developed countries till 2004.
But there was little impact on the country’s RMG exports. The shipment of apparels grew $6.4 billion in 2005-06 from $ 5.6 billion in 2004-05 and doubled in less than five years despite abolishing of quota facility.
-With New Age input
