Bangladesh’s Minister of Textiles and Jute, Abdul Latif Siddique, has said that single digit bank interest rates are necessary for smooth industrialization in the country.
Inaugurating the “Textech, Dye and Chem and Yarn/Fabric Exhibitons” in Dhaka, the Minister said it is not possible to remain competitive in the international market when the bank interest rate is over 18 percent.
He said if the interest rate is lowered to single digit, owners would be able to pay high wages and thus reducing labour problems, The Financial Express reported.
During the setting up of industries phase, the interest rate should be two to three percent, and the tax rate can be increased once the industries are set up, the Minister added.
Speaking from the same platform, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) vice president Md. Hatem urged foreign investors to take advantage of various facilities offered by the Government and invest in the backward linkage.
About 450 exhibitors from more than 10 countries are participating in the four-day fairs.