Home / Knowledge / News / Apparel/Garments / Bangladesh apparel firms to get stimulus package from govt
Bangladesh apparel firms to get stimulus package from govt
Dec '13
The Bangladesh Government would be providing a stimulus package to the crisis-hit apparel industry in order to increase its production capacity and offset the losses suffered by the sector due to political instability in the country, said Finance Minister AMA Muhith during a meeting with a business delegation comprising of readymade garment (RMG), knitwear and textile leaders at the Ministry’s Secretariat office in Dhaka.
The Finance Minister said the Government would be giving a stimulus package to the RMG firms that have suffered huge losses to increase their competitiveness, and a decision on this would be announced by the end of December, 2013.
During the meeting, Mr. Muhith informed the business delegation that the central bank’s loan policy will most likely be relaxed by this month for the apparel manufacturers in the country.
The move came in response to the demands from garment manufacturers and exporters in Bangladesh who stated that the current loan classification policy, which marks a loan to be classified when the repayment period is overshot by three months, is putting excessive pressure on them to make their payments.
At the meeting, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Atiqul Islam, presented a three-point demand on behalf of garment manufacturers to make up for the excess cost incurred by them following the latest hike in wages, as well as another eight-point demand to compensate the losses suffered due to political unrest.
The demands included banking support and special loans, reduction of tax on export earnings, two-year exemption from classifying loans of textile, garment and backward linkages, financial incentives to explore new markets and more.
Mr. Atiqul Islam said the enhanced wages for garment workers coupled with political instability in the country has distressed the Bangladesh apparel sector, and the industry would require financial as well as banking support from the Government to overcome the losses.
The president of Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Kazi Akram Uddin Ahmed, president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) AKM Salim Osman and president of Bangladesh Textile Mills Association (BTMA) Jahangir Alamin as well as representatives from Bangladesh Bank were also present at the meeting.

Fibre2fashion News Desk - India

Must ReadView All

Union textiles minister Smriti Irani addressing at the Texprocil Annual Export Awards. Courtesy: PIB

Textiles | On 22nd Oct 2016

Govt to extend special package to home textiles segment

The Central government is likely to extend the recently approved Rs...

Reebok Liquid Speed Grey. Courtesy: Business Wire

Apparel/Garments | On 22nd Oct 2016

Reebok’s Liquid Factory brings sneaker creation to US

Reebok, a pioneer in the sporting goods industry, has brought sneaker ...

Courtesy: GHCL

Textiles | On 22nd Oct 2016

GHCL to invest Rs 67.25 crore in textile division

Chemicals and textiles firm GHCL will invest Rs 67.25 crore in its...

Interviews View All

Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Nuno Venda

‘There has been an increase in demand for water based inks, rather than...

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Marcel Alberts

Coating at a fibre level is a practice not usually seen in the...

Robert Brunner

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search