Tk 8.5b cash incentives for exporters released

The government has released cash incentives worth Tk 8.5 billion (Tk 850 crore) for disbursement among major exporters as the second installment for the current financial year, officials said. The finance ministry issued a letter at the end of last month asking the central bank for releasing the cash incentives to the leading export earning sectors to facilitate them. In the budget for the current fiscal, Finance Minister AMA Muhith announced a stimulus package worth Tk 20 billion for the recession-hit foreign currency earning sectors. Earlier on July 15 last year the government disbursed the first installment of the allocation worth Tk 10 billion. Sources said the leading exporters will be able to overcome their financial constraints as the government has taken steps for early disbursement of the cash incentives allocated for the current fiscal. The government has introduced the cash incentives for the leading export earners to help them stay competitive in the international market. Home-made textile, frozen shrimp and other fish, leather products, jute and jute products, agricultural and agro-based products, tobacco, 'hogla', 'khor', 'akher chhobra', bone dust, potato, 'halal' meat and, among others, will get the allocated amount of the second installment, the letter said. Meanwhile, the government has set a $ 18.50 billion export target for the current fiscal year. The country's merchandise exports stood at $ 14.07 billion during July-February of the 2010-11 fiscal, reflecting a robust 40 per cent growth over the same period of last fiscal. Besides, the export earnings during the first eight months of the current fiscal surpassed the target, set for the period, by 20 per cent.