BTMA dismayed as textile sector remains neglected
Tuesday, 21 April 2009
FE Report
Bangladesh Textile Mills Association (BTMA) has expressed dismay over leaving the textile sector out of government bailout package and sought immediate cash incentives to help it survive the global financial crisis.
BTMA leaders said this Monday at a press conference organised in reaction to the government stimulus package announced Sunday by Finance Minister AMA Muhith.
BTMA wants a 15 per cent cash incentive and extension of repayment of term loan period until December 2010 by waiving interest on the loan.
Addressing the press conference, BTMA president Abdul Hai Sarkar said: "We have been urging the government over the past three months to assist us as many factories have been forced to shutdown and many are producing much below of their production capacity."
BTMA statistics said so far 10 textile mills have been shut down and many are producing around 40 per cent of their capacity.
He also said the sector needs immediate government support to sustain in the business as the neighbouring countries and other competing nations have devalued their currencies to combat the global crisis and provided other incentives.
"We want a level playing field. So, we need government supports. But the government has disappointed us," he said.
He alleged that the government had assured them to provide financial and policy supports. "We are the worst affected of the global crisis, but the irony is that we have been kept outside of the package," he added.
Mr Hai said: "Textile is an important sector as nearly 80 per cent of its products are used by the country's export-oriented industries."
BTMA chief said: "It's really a suicidal move by the government and it will have an adverse impact on the society as the owners of textile mills will be forced to retrench workers if they face continued losses."
He feared that this would encourage import of fabrics from neighbouring nations as the prices of garments in India and Pakistan became cheaper following their currency devaluations and other policy supports.
The investment of the textile sector is worth around Tk 400 billion in the country and it meets the requirement of about 75 percent fabrics and yarn of the export oriented industries.
Speaking at the press conference, former BGMEA president Anwar-ul-Alam Chowdhury Parvez said: "We will not seek any incentive if the government ensures single digit interest rate and uninterrupted power supply to the factories."
Former BTMA presidents A Matin Chowdhury and Md Shajahan, BTMA vice presidents Syed Manzurul Hoque, Tazul Islam Dhali, Engineer Ahmed Ali were also present at the press conference.
Meanwhile, the Real Estate and Housing Association of Bangladesh (REHAB) also expressed its dismay over dropping the sector from the stimulus package.
A press statement issued by the REHAB Monday said the construction sector has been facing slump as the sales of flats have fallen sharply following the recession.
REHAB, however, urged the government to allocate the construction sector a fund worth Tk 10 billion to overcome the crisis.
Bangladesh Textile Mills Association (BTMA) has expressed dismay over leaving the textile sector out of government bailout package and sought immediate cash incentives to help it survive the global financial crisis.
BTMA leaders said this Monday at a press conference organised in reaction to the government stimulus package announced Sunday by Finance Minister AMA Muhith.
BTMA wants a 15 per cent cash incentive and extension of repayment of term loan period until December 2010 by waiving interest on the loan.
Addressing the press conference, BTMA president Abdul Hai Sarkar said: "We have been urging the government over the past three months to assist us as many factories have been forced to shutdown and many are producing much below of their production capacity."
BTMA statistics said so far 10 textile mills have been shut down and many are producing around 40 per cent of their capacity.
He also said the sector needs immediate government support to sustain in the business as the neighbouring countries and other competing nations have devalued their currencies to combat the global crisis and provided other incentives.
"We want a level playing field. So, we need government supports. But the government has disappointed us," he said.
He alleged that the government had assured them to provide financial and policy supports. "We are the worst affected of the global crisis, but the irony is that we have been kept outside of the package," he added.
Mr Hai said: "Textile is an important sector as nearly 80 per cent of its products are used by the country's export-oriented industries."
BTMA chief said: "It's really a suicidal move by the government and it will have an adverse impact on the society as the owners of textile mills will be forced to retrench workers if they face continued losses."
He feared that this would encourage import of fabrics from neighbouring nations as the prices of garments in India and Pakistan became cheaper following their currency devaluations and other policy supports.
The investment of the textile sector is worth around Tk 400 billion in the country and it meets the requirement of about 75 percent fabrics and yarn of the export oriented industries.
Speaking at the press conference, former BGMEA president Anwar-ul-Alam Chowdhury Parvez said: "We will not seek any incentive if the government ensures single digit interest rate and uninterrupted power supply to the factories."
Former BTMA presidents A Matin Chowdhury and Md Shajahan, BTMA vice presidents Syed Manzurul Hoque, Tazul Islam Dhali, Engineer Ahmed Ali were also present at the press conference.
Meanwhile, the Real Estate and Housing Association of Bangladesh (REHAB) also expressed its dismay over dropping the sector from the stimulus package.
A press statement issued by the REHAB Monday said the construction sector has been facing slump as the sales of flats have fallen sharply following the recession.
REHAB, however, urged the government to allocate the construction sector a fund worth Tk 10 billion to overcome the crisis.