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BGMEA again seeks govt assistance to pay wages for Aug
26 Aug '20
2 min read
Pic: Shutterstock
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has again sought government financial assistance to pay workers’ wage for August, after availing of Tk 10,000 crore from the stimulus packages announced to tackle the impact of the COVID-19 pandemic. A letter by BGMEA president Rubana Huq urged the government to extend assistance to export-oriented units for one more time.
Her letter said factory owners are still facing financial constraints because of cancellation of work orders worth around $3 billion and delay in receiving export proceeds due to the COVID-19 pandemic, according to Bangla media reports.
Under the Tk 5,000 crore package, export-oriented industries were allowed to take loans at 2 per cent service charge to pay the wages for the months of April, May and June. An additional Tk 2,000 crore was added from another package when the BGMEA claimed that Tk 5,000 crore was insufficient. Factory owners also received Tk 3,000 crore from the government to pay wages for July.
Just before the submission of fresh proposal, BGMEA had appealed for continuation of the easy loan facility up to September.
The country’s readymade garment exports in the recently concluded fiscal 2019-20 declined by 18.45 per cent, or $6.3 billion, to $27.83 billion from $34.13 billion in fiscal 2018-19.
Her letter said factory owners are still facing financial constraints because of cancellation of work orders worth around $3 billion and delay in receiving export proceeds due to the COVID-19 pandemic, according to Bangla media reports.
Under the Tk 5,000 crore package, export-oriented industries were allowed to take loans at 2 per cent service charge to pay the wages for the months of April, May and June. An additional Tk 2,000 crore was added from another package when the BGMEA claimed that Tk 5,000 crore was insufficient. Factory owners also received Tk 3,000 crore from the government to pay wages for July.
Just before the submission of fresh proposal, BGMEA had appealed for continuation of the easy loan facility up to September.
The country’s readymade garment exports in the recently concluded fiscal 2019-20 declined by 18.45 per cent, or $6.3 billion, to $27.83 billion from $34.13 billion in fiscal 2018-19.
Fibre2Fashion News Desk (DS)
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