Bangladesh's BCI demands higher USD supply to import raw materials

14 Feb '24

1 min read

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The Bangladesh Chamber of Industries wants a rise in supply of US dollars to expedite industrial raw material imports.
Sales have dropped due to high inflation, high interest rates, rise in energy prices, and no factory can run at full capacity.
Government cash incentives for export-oriented industries are also not being timely paid, the chamber complained.

The Bangladesh Chamber of Industries (BCI) has demanded a rise in supply of US dollars to expedite industrial raw material imports.

A BCI delegation led by its president Anwar-ul Alam Chowdhury (Parvez) recently met Bangladesh Bank governor Abdur Rauf Talukder to convey the demand.

Sales have dropped across the country due to high inflation, high interest rates, increase in electricity and gas prices, and no factory can run at full capacity, the BCI delegation said.

Survival of the industrial organisations has turned a challenge, they felt, as companies are unable to open the letters of credit (LC) with banks due to the dollar crisis.

They have to open LCs at a much higher rate than the rate determined by the central bank.

Government cash incentives for export-oriented industries are not being timely paid because of which it is becoming difficult for companies to pay taxes and salaries on time, they complained, demanding early release of such incentives, according to domestic media reports.

In case of previous exports, it takes four to five weeks to get acceptance and LC maturing, thereby increasing their liability.

Small and medium enterprises are facing the most losses, and hence, deserve the most attention, they added.

Fibre2Fashion News Desk (DS)

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