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Dhaka may consider new round of rescue deal for RMG units
15 Dec '20
2 min read
Pic: Shutterstock
The Bangladesh government will consider a fresh round of stimulus plan for the garment sector if the second wave of coronavirus cases threatens to leave the industry reeling, according to commerce minister Tipu Munshi, who recently said the sector turned around to a great extent from the pandemic’s fallout due to the earlier government stimulus packages.
In March, the government had announced a Tk 5,000 crore stimulus package to enable garment factories pay wages to their workers. The amount, which was in the form of low-cost loans, was extended twice to stand at Tk 10,500 crore.
Munshi was addressing the inauguration of the ‘Go Human, Go Green’ initiative of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
The BGMEA recently sought another round of rescue package along with longer duration to repay the first round of loans.
“If the situation deteriorates due to the second wave of the pandemic, we would consider offering another stimulus package for the garment industry. We have to protect the apparel trade and it is for the country’s economy,” said Munshi, who is also a former president of the BGMEA.
In the first five months of fiscal 2020-21, garment exports brought home about $12.8 billion, down 1.5 per cent year-on-year, according to data from the Export Promotion Bureau.
Last month, apparel shipment fetched $2.4 billion, which is about 4 per cent less than a year earlier.
The demand for a second stimulus package has been forwarded to the finance ministry, which has been asked to take a positive stance, Munshi said, adding that the BGMEA’s request for an extension to the repayment tenure of the package is under discussion.
To face the ongoing second wave of COVID-19, BGMEA president Rubana Huq said the ‘Go Human, Go Green’ initiative will focus on the well-being of workers as well as enhance the apparel sector’s productivity. Seventy workers would be studying at the Asian University for Women under a special programme.
In March, the government had announced a Tk 5,000 crore stimulus package to enable garment factories pay wages to their workers. The amount, which was in the form of low-cost loans, was extended twice to stand at Tk 10,500 crore.
Munshi was addressing the inauguration of the ‘Go Human, Go Green’ initiative of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
The BGMEA recently sought another round of rescue package along with longer duration to repay the first round of loans.
“If the situation deteriorates due to the second wave of the pandemic, we would consider offering another stimulus package for the garment industry. We have to protect the apparel trade and it is for the country’s economy,” said Munshi, who is also a former president of the BGMEA.
In the first five months of fiscal 2020-21, garment exports brought home about $12.8 billion, down 1.5 per cent year-on-year, according to data from the Export Promotion Bureau.
Last month, apparel shipment fetched $2.4 billion, which is about 4 per cent less than a year earlier.
The demand for a second stimulus package has been forwarded to the finance ministry, which has been asked to take a positive stance, Munshi said, adding that the BGMEA’s request for an extension to the repayment tenure of the package is under discussion.
To face the ongoing second wave of COVID-19, BGMEA president Rubana Huq said the ‘Go Human, Go Green’ initiative will focus on the well-being of workers as well as enhance the apparel sector’s productivity. Seventy workers would be studying at the Asian University for Women under a special programme.
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