Govt to consider 10pc aid for knitwear, says PM
Friday, 1 May 2009
Prime Minister Sheikh Hasina has told the knitwear manufacturers and exporters that the government will consider economic assistance of 10 per cent against export to help them combat the recession impact, reports bdnews24.com.
Md Fazlul Hoque, president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), told reporters after a meeting with the Prime Minister at the Prime Minister's Office Thursday that she also assured them of resolving the nagging power crisis.
"The government in its recently declared stimulus package did not include knitwear industry. But the industry is on the verge of disaster. That's why we sought assistance," Hoque said.
On the type of economic assistance he said: "We have sought 10 per cent performance incentive against each export.
"The Prime Minister responded positively to our proposal. She told us that as the stimulus package has the arrangement of reallocation, we can get it if necessary."
Sheikh Hasina also asked the business leaders to explore new markets for Bangladesh knitwear goods in Middle East and African countries side by side with western ones.
Describing her recent visit to Saudi Arabia, Hasina said 'hot spell' countries including UAE, Bahrain, Jordan as well as some African countries can be the new destinations for Bangladesh knitwear goods.
The BKMEA president said the government is taking measures to resolve power and gas crises.
They asked the government to cut bank interest rate against loan for knitwear industries, allocate the RAJUK plots at Chashara in Narayanganj to BKMEA at a fair price, and end complications regarding knitwear business at Benapole port.
The other demands included conversion of the BIWTA jetty in Narayanganj into a modern terminal, and building hospital for the knitwear workers.
Hoque said Wednesday they could propose to the government for even importing power to ensure smooth production in their factories.
The businesses often say their production is being terribly hampered, and the cost of production is skyrocketing because of the electricity crisis.
The government says it is trying to divert power to the industrial zones from other areas. It has stopped supplying gas to a fertiliser factory in Chittagong to ensure enough gas flow to a vital power plant in the region to meet its full production potential.
But the situation is still beyond control because of the rising demand of electricity, and an immediate solution is not in sight, according to the power ministry.
The garment sector, the main force behind the country's export earning, has been demanding cash incentive for their industries to cope with the falling prices of the products that are mainly shipped to Europe and the United States, the origin of the economic crisis.
The BKMEA leaders say they are facing tremendous pressure from competitors such as India, China and Vietnam because of the falling prices in global market, high bank interest rate inside the country, and rising production cost. The country annually earns around $12 billion from ready-made garment, which prominently includes knitwear products.
Md Fazlul Hoque, president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), told reporters after a meeting with the Prime Minister at the Prime Minister's Office Thursday that she also assured them of resolving the nagging power crisis.
"The government in its recently declared stimulus package did not include knitwear industry. But the industry is on the verge of disaster. That's why we sought assistance," Hoque said.
On the type of economic assistance he said: "We have sought 10 per cent performance incentive against each export.
"The Prime Minister responded positively to our proposal. She told us that as the stimulus package has the arrangement of reallocation, we can get it if necessary."
Sheikh Hasina also asked the business leaders to explore new markets for Bangladesh knitwear goods in Middle East and African countries side by side with western ones.
Describing her recent visit to Saudi Arabia, Hasina said 'hot spell' countries including UAE, Bahrain, Jordan as well as some African countries can be the new destinations for Bangladesh knitwear goods.
The BKMEA president said the government is taking measures to resolve power and gas crises.
They asked the government to cut bank interest rate against loan for knitwear industries, allocate the RAJUK plots at Chashara in Narayanganj to BKMEA at a fair price, and end complications regarding knitwear business at Benapole port.
The other demands included conversion of the BIWTA jetty in Narayanganj into a modern terminal, and building hospital for the knitwear workers.
Hoque said Wednesday they could propose to the government for even importing power to ensure smooth production in their factories.
The businesses often say their production is being terribly hampered, and the cost of production is skyrocketing because of the electricity crisis.
The government says it is trying to divert power to the industrial zones from other areas. It has stopped supplying gas to a fertiliser factory in Chittagong to ensure enough gas flow to a vital power plant in the region to meet its full production potential.
But the situation is still beyond control because of the rising demand of electricity, and an immediate solution is not in sight, according to the power ministry.
The garment sector, the main force behind the country's export earning, has been demanding cash incentive for their industries to cope with the falling prices of the products that are mainly shipped to Europe and the United States, the origin of the economic crisis.
The BKMEA leaders say they are facing tremendous pressure from competitors such as India, China and Vietnam because of the falling prices in global market, high bank interest rate inside the country, and rising production cost. The country annually earns around $12 billion from ready-made garment, which prominently includes knitwear products.