BGMEA demands Tk 30b from govt's stimulus package
Friday, 4 September 2009
FE Report
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has demanded immediate release of Tk 30 billion under the government's stimulus package to facilitate payment of wages and Eid bonus to garment workers.
"We hope the government will announce the financial assistance by September 7," said BGMEA president Abdus Salam Murshedy at press conference on Thursday.
"Otherwise, the BGMEA will not be responsible for any unwarranted labour problem," he warned.
He said the garment sector is making losses worth "Tk 18.75 billion, which includes Tk 9.24 billion as expenditure on diesel, each year due to shortage of power and gas supply.
Murshedy said: "Owners of around 40 percent of 1500 garment factories said at the general meeting that they would not be able to pay Eid bonus to their workers."
He said US garment import from Bangladesh dropped 6.97 per cent in January -June 2009 compared to the same period of the 2008.
"During May and June it slid 0.48 per cent and 3.83 per cent of this year compare to the months of the previous year. If the negative growth continues then it will be a double digit fall in August and September", he added.
Murshedy said there has been around 20-25 per cent price fall in the international market, which is creating pressure on "our CM rate." As a result, most of the garment factories are running at losses.
He said around 63 garment factories have been closed down according to a home ministry survey.
According to a BGMEA survey, around 50,000 workers have lost their jobs and around 107 factories closed down due to fall in international demand for garments.
BGMEA said no banks are following the government's instruction on rescheduling loan.
The government should give instruction to banks to pay the garment manufacturers pending L/C document on the basis of past track record.
The government earlier announced a stimulus package of Tk 50 billion in for fiscal 2009-10 to give the financial assistance to the sectors, affected by world recession.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has demanded immediate release of Tk 30 billion under the government's stimulus package to facilitate payment of wages and Eid bonus to garment workers.
"We hope the government will announce the financial assistance by September 7," said BGMEA president Abdus Salam Murshedy at press conference on Thursday.
"Otherwise, the BGMEA will not be responsible for any unwarranted labour problem," he warned.
He said the garment sector is making losses worth "Tk 18.75 billion, which includes Tk 9.24 billion as expenditure on diesel, each year due to shortage of power and gas supply.
Murshedy said: "Owners of around 40 percent of 1500 garment factories said at the general meeting that they would not be able to pay Eid bonus to their workers."
He said US garment import from Bangladesh dropped 6.97 per cent in January -June 2009 compared to the same period of the 2008.
"During May and June it slid 0.48 per cent and 3.83 per cent of this year compare to the months of the previous year. If the negative growth continues then it will be a double digit fall in August and September", he added.
Murshedy said there has been around 20-25 per cent price fall in the international market, which is creating pressure on "our CM rate." As a result, most of the garment factories are running at losses.
He said around 63 garment factories have been closed down according to a home ministry survey.
According to a BGMEA survey, around 50,000 workers have lost their jobs and around 107 factories closed down due to fall in international demand for garments.
BGMEA said no banks are following the government's instruction on rescheduling loan.
The government should give instruction to banks to pay the garment manufacturers pending L/C document on the basis of past track record.
The government earlier announced a stimulus package of Tk 50 billion in for fiscal 2009-10 to give the financial assistance to the sectors, affected by world recession.