The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has sought Tk 19 billion cash support to pay workers’ wages as a soft loan for one month.
“We have requested to provide Tk 18 billion-Tk 19 billion soft loans for a month,” BGMEA President Khandoker Rafiqul Islam said reporters after meeting with the interim government adviser on the ministries of finance and commerce Dr. Salehuddin Ahmed at ERD office in Dhaka on August 27, 2024.
They placed the eight recommendations including the cash flow assistance at the meeting.
The BGMEA delegation included former Presidents Quazi Moniruzzaman and SM Fazlul Hoque, along with incumbent Senior Vice President Abdullah Hil Rakib, Vice Presidents Md. Nasir Uddin, Miran Ali, Asif Ashraf, and Rakibul Alam Chowdhury. Commerce Secretary Md. Selim Uddin also attended at the meeting.
During the meeting, BGMEA President Khandoker Rafiqul Islam provided an overview of the current challenges facing the garment industry.
He highlighted the recent decline in apparel imports from major markets for Bangladesh, including the European Union and the United States.
He also pointed to the increase in costs over the past five years, with production costs rising by 50 percent. Additionally, he raised concerns about buyers’ worries regarding the insufficient supply of gas and electricity to the industry.
The BGMEA delegation called for policy support to help the industry navigate these challenges and build capacity for future growth during this critical period.
The BGMEA delegation’s eight point recommendations included reinstating Bangladesh Bank’s regulation for loan default from three to six installments, not to disconnect utility connections at least for next three months to have a breathing space, protection of factory operations amid bank reforms, safeguarding business from actions against individuals.
It also suggested formation of a task force to address required policy corrections in NBR, Bangladesh Bank to make it business friendly
It also recommended ensuring power security and power pricing and measures against external influences on textile wastes (Jhut) disposal.
Finance and Commerce Adviser Dr. Salehuddin Ahmed welcomed the new BGMEA President along with the Vice Presidents of the Board. He urged them to focus on addressing the current challenges facing the garment industry. He emphasized the importance of focusing on increasing value addition in the sector.
The Adviser also recommended that the BGMEA leaders should remain watchful on labor-related issues, including trade unions, wages, and due diligence on labour rights and environmental protection.
Dr. Salehuddin Ahmed acknowledged the garment industry’s significant contributions to poverty alleviation, investment, employment, and women’s empowerment.
He assured the BGMEA delegation of the interim government’s full support and of a follow-up meeting to discuss their recommendations after reviewing them.
