Drop idea of raising prices of electricity, gas

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has urged the government to drop the idea of increasing prices of electricity and gas at this crisis moment, in order to safeguard the garment and apparel industry, export sector and the country's economy.
In a letter to State Minister for Power, Energy and Mineral Resources Nasrul Hamid, BGMEA President Faruque Hassan says the idea of proposed price hike of electricity and gas must be discarded to help the garment and apparel sector continue its role at this critical juncture.
"Not only the readymade garment industry, proposed price hike will directly impact the commodity price and utility services for which inflation pressure, which has already been felt, will be difficult to control," said the BGMEA president, in the letter dated on May 24.
In the letter, Mr Hassan highlighted the industry's challenges like shortage of raw materials, fuel cost hike and abnormal hike of container and shipment fares.
Besides, the Russia-Ukraine war, which contributed to the increase in prices of oil and food, has pushed the apparel sector in crisis, said the BGMEA leader, adding that global inflation and 'zero Covid policy' of China were a new headache for the sector.
The country's garment and apparel industries are playing a significant role in the economy especially at a time when the government is trying to take various measures to lessen the pressure on the balance of payment and foreign reserve, said the BGMEA president.
Mr Hassan, in the letter, referred to the advice of the head of the International Monetary Fund (IMF) to increase the level of subsidies on food and energy during the present crisis situation.
He also urged the government to help prepare the sector in reevaluating the investment in accordance with the government's long-term plan on price hike of gas and power.

smunima@yahoo.com