Govt to release Tk 3.0b subsidy fund for exporters this week
Monday, 10 December 2007
FE Report
The government has decided to release the fund on account of cash incentives, amounting to Taka 3.0 billion, to the leading exporters to facilitate payment of salaries and benefits to their workers before the Eid-ul Azha.
The finance ministry is expected to release the amount by this week through Bangladesh Bank (BB).
Sources said the leading exporters will be able to overcome their financial constraints as the caretaker government has taken steps for early disbursement of the cash incentives allocated for the current fiscal.
In the budget for fiscal 2007-08, the government allocated Tk 11.0 billion as cash incentives for exporters. Of the amount, it has released Tk 6.0 billion in installments in the first quarter of the current fiscal.
In fiscal 2006-07, the total allocated amount for cash incentive was worth Tk 5.0 billion.
Exporters under 18 sectors are entitled to receive cash incentives against export of their products.
The government has introduced the cash incentives for the leading export earners to help them stay competitive in the international market.
Besides, export earnings in the first quarter showed a downward trend mainly due to poor performances of major sectors namely woven garments, knitwear and frozen foods reflecting the country's ongoing slow pace in international trade and other economic activities.
Bangladesh's earnings from merchandise exports fell short of target by 17.65 per cent during the quarter one (Q1) of the current fiscal over the corresponding period of the last fiscal.
The country exported products worth US$ 3077.09 million during the July-September period of fiscal 2007-08 against the target of $ 3736 million, the latest official figures showed.
The government has decided to release the fund on account of cash incentives, amounting to Taka 3.0 billion, to the leading exporters to facilitate payment of salaries and benefits to their workers before the Eid-ul Azha.
The finance ministry is expected to release the amount by this week through Bangladesh Bank (BB).
Sources said the leading exporters will be able to overcome their financial constraints as the caretaker government has taken steps for early disbursement of the cash incentives allocated for the current fiscal.
In the budget for fiscal 2007-08, the government allocated Tk 11.0 billion as cash incentives for exporters. Of the amount, it has released Tk 6.0 billion in installments in the first quarter of the current fiscal.
In fiscal 2006-07, the total allocated amount for cash incentive was worth Tk 5.0 billion.
Exporters under 18 sectors are entitled to receive cash incentives against export of their products.
The government has introduced the cash incentives for the leading export earners to help them stay competitive in the international market.
Besides, export earnings in the first quarter showed a downward trend mainly due to poor performances of major sectors namely woven garments, knitwear and frozen foods reflecting the country's ongoing slow pace in international trade and other economic activities.
Bangladesh's earnings from merchandise exports fell short of target by 17.65 per cent during the quarter one (Q1) of the current fiscal over the corresponding period of the last fiscal.
The country exported products worth US$ 3077.09 million during the July-September period of fiscal 2007-08 against the target of $ 3736 million, the latest official figures showed.