Bangladesh ministry disburses Tk1,000 cr cash incentive for exporters
19 Dec 23 1 min read
Insights
- Bangladesh's finance ministry has disbursed Tk1,000 crore in cash incentives for exporters following a request by the Bangladesh Knitwear Manufacturers and Exporters Association to immediately release pending cash incentives worth Tk4,000 crore for knitwear exporters by December end.
- BKMEA also sought special assistance from the ministry for factory owners.
The request followed a hike in the minimum wage for readymade garment (RMG) sector workers to Tk12,500.
"Amidst the struggles faced by the industrial sector due to the global economic crisis, the abrupt rise in the wage structure in the garment sector poses a challenge for many garment owners. This situation raises concerns about the timely disbursement of salaries and allowances, potentially leading to possible unrest among workers," the letter, signed by BKMEA executive president Mohammad Hatem, said.
Factory owners need special assistance from the finance ministry to address the issue, Bangladesh media outlets reported citing the letter.
- Fitch Ratings downgrades Bangladesh to B+; outlook stable
- Bangladesh’s forex reserves to steady within months, Moody's predicts
- Ex-Bangladesh Bank head backs continuing cash incentive for exports
- Bangladesh RMG sector calls for tax relief, incentives in FY25 budget
- France to support Bangladesh with €300 mn in budget aid: Reports
- Bangladesh's forex reserves grow by $180 mn in a week: Reports
The government’s Fiscal 2022-23 budget had allocated cash incentives worth Tk7,825 crore for exporters, except for those in the jute sector.
Apparel exporters had urged the government in April this year to provide at least Tk1,500 crore in advance cash incentives from the export subsidy fund.
Fibre2Fashion News Desk (DS)
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