BGMEA seeks continuation of policy support for apparel industry

DE Online Desk
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) urged the government to continue policy support for the ready-made garment industry (RMG) so it can maintain competitiveness amid global economic challenges.
A delegation led by BGMEA President Faruque Hassan met Finance Minister Abul Hassan Mahmood Ali at the Secretariat in Dhaka on Sunday.
The delegation focused on the pressing issues of the RMG industry of Bangladesh and the impacts of the global economic situation on the RMG industry.
They also discussed Bangladesh’s graduation from LDC (least developed country) status and its implications on the country’s trade.
The BGMEA president highlighted the major challenges impacting the RMG industry, including the repercussions of the Russia-Ukraine war, which has led to severe inflation in the USA and EU countries.
The inflation has resulted in a decline in apparel exports to major markets for Bangladesh, he said.
“Decrease in garment exports means negative impact on Bangladesh’s foreign reserves as the RMG industry accounts for 84 percent of the country’s total export earnings,” BGMEA chief stressed.
“Moreover, the industry has taken on the challenging task of implementing a new minimum wage for garment workers amid rising prices of energy and raw materials,” he added.
Faryque Hassan said, “In this challenging environment, the sudden decision by the government to cut cash incentives on the shipment of garments and other export-oriented products are expected to have a negative impact on exports and the overall economy.”
The BGMEA President requested the government to reconsider this decision and continue the policy support of cash incentives as before. The Finance Minister assured the delegation that the government would look into the issue of cash incentives to support the RMG industry.
The delegation comprised former BGMEA President Md. Siddiqur Rahman, BGMEA Senior Vice President SM Mannan Kochi, Bangladesh Textile Mills Association (BTMA) President Mohammad Ali Khokon, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Executive President Mohammad Hatem, and FBCCI Vice President Md. Munir Hossain. The meeting was also attended by Senior Secretary of the Commerce Ministry Tapan Kanti Ghosh and Secretary of the Finance Division Dr. Md. Khairuzzaman Mozumder.