The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has called on the government to persist in providing policy support to uphold the competitiveness of the ready-made garment industry amidst global economic challenges.
During a meeting at the Secretariat in Dhaka on Sunday (4 February), a delegation led by BGMEA President Faruque Hassan conveyed this message to Finance Minister Abul Hassan Mahmood Ali, according to a press release.
The delegation, including 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 Federation of Bangladesh Chambers of Commerce & Industries (FBCCI) Vice President Md Munir Hossain, met with Commerce Ministry Senior Secretary Tapan Kanti Ghosh and Finance Division Secretary Md Khairuzzaman Mozumder.
Expressing congratulations to Finance Minister Abul Hassan Mahmood Ali for taking on the responsibilities of this crucial ministry, the meeting primarily addressed the urgent issues faced by Bangladesh’s ready-made garment industry.
Discussions centered around the impact of the global economic situation on the RMG industry, LDC graduation, and its consequences for Bangladesh’s trade.
BGMEA President Faruque Hassan outlined the significant challenges affecting the RMG industry, citing the repercussions of the Russia-Ukraine war, which has led to considerable inflation in the United States and European Union countries. This inflation has resulted in a decrease in apparel exports to key markets for Bangladesh.
Highlighting that a decline in garment exports would adversely affect Bangladesh’s foreign reserves, as the RMG industry constitutes 84% of the country’s total export earnings, he also noted the industry’s efforts to implement a new minimum wage for garment workers amid escalating energy and raw material prices.
In this demanding environment, the sudden government decision to reduce cash incentives for garment shipments and other export-oriented products is anticipated to negatively impact exports and the overall economy, Faruque Hassan asserted.
BGMEA President Faruque Hassan urged the government to reconsider this decision and maintain the previously established policy support through cash incentives.
Finance Minister Abul Hassan Mahmood Ali reassured the delegation that the government would thoroughly examine the issue of cash incentives to provide support to the RMG industry.
