The government has proposed to allocate Tk 2,592 crore as cash incentive in the export sector for the upcoming 2013-14 fiscal year in a bid to encourage the exporters.
In the budget speech on Thursday, finance minister AMA Muhith said that the government had taken the initiative to expand trade and commerce at both national and international levels.
The decision was taken at a time when the government looks set to miss its $28 billion export target for the 2012-13 FY.
The government earned $21.78 billion from products exported in the first 10 months of the 2012-13 FY.
Business leaders said that the country might miss its export target in this fiscal year due to the recent political turmoil and ongoing economic slowdown in Europe.
Under the circumstances, a number of trade bodies have recently demanded the government to allocate cash incentive in the export sector.
Muhith in his budget speech said, ‘We could manage to expand import and export despite sluggish global economic growth.’
The government earlier decided to give cash incentive for the unusual rise of cotton price in the FY 2010-11.
The incentive was declared to offset losses incurred by the millers following price hike of cotton in the global market between August 2010 and March 2011.
During the period, textile millers lost almost one dollar per pound of cotton.
-With New Age input
