Home / Knowledge / News / Apparel/Garments / Bangladesh apparel firms to get stimulus package from govt
Bangladesh apparel firms to get stimulus package from govt
12
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

Textiles | On 20th Jan 2017

TEA expects budget to upscale textile skill industry

The Tiruppur Exporters’ Association (TEA) has requested the Central...

Textiles | On 20th Jan 2017

Bangladesh could earn $60 billion in exports by 2021

Bangladesh is expected to earn over $60 billion in exports by the...

Courtesy: PIB

Textiles | On 20th Jan 2017

Govt to help Tangaliya weavers purchase looms: Irani

Government of India will facilitate Tangaliya weavers in purchase of...

Interviews View All

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Marcel Alberts
Eurofibers

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

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Ritu Kumar
Label Ritu Kumar

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

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search