BGMEA seeks hike in cash incentives

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) on Wednesday demanded increasing the rate of cash incentives and continue it to help the industry face the existing crisis and create new entrepteneurs.
Seeking the central bank's interference in addressing current challenges, the BGMEA also proposed increasing the rates of special cash assistance from 0.30 per cent to 1.0 per cent, alternative cash assistance in lieu of customs bonds and duty draw-backs to 2.0 per cent from 1.5 per cent and 4.0 per cent for small and medium (SME) industries from 3.0 per cent.
The trade body led by its president Mahmud Hasan Khan made the demands at a meeting with Bangladesh Bank governor Md Mostaqur Rahman at the latter's office in the city.
Many banks are not providing the required working capital even after rescheduling loans, the BGMEA president said adding as a result keeping factories operational and timely loan repayment are hampered.
To support the industry, he also proposed to reduce the interest rate on packing credit (PC) to 7.0 per cent, increase the amount of the pre-shipment credit refinancing scheme from Tk 50 billion to Tk 100 crore and extend the repayment time until 2030.
BGMEA directors Majumder Arifur Rahman, Dr Rashid Ahmed Hossaini and managing director of Mahin Apparels Limited Abdullah Al Mahmud Mahin, among others, were present at the meeting.
The central bank governor Mostakur Rahman assured them of effective measures related to the central bank's issues.
Regarding cash assistance, he said measures would also be taken so that incentive applications will not be kept pending and release the cash assistance amount monthly.

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