Muhith again says 'no' to RMG stimulus
Tuesday, 10 November 2009
The government has again taken a hard line on providing financial incentive package to apparel sector seeking funds to bounce back from a downturn induced by global meltdown, reports bdnews24.com.
"It is not right that the world will come to an end, if a child cries. The government will have to consider all sectors," AMA Muhith told the news agency Monday.
He was asked whether the readymade garment sector would get the assistance.
"Those sectors will come under incentive package that have been really affected by economic recession," Muhith said at the Secretariat.
A committee, formed on the RMG sector with former finance minister M Saiduzzaman as the head, will meet Tuesday. The government will act on the recommendations of the committee, the minister said.
The industry's top trade body, Bangladesh Garments Manufacturers and Exporters Association (BGMEA), at a media briefing said Sunday they saw a 30 per cent dip in spot orders from buyers at this year's BATEXPO, the country's largest apparel fair.
Spot orders at the last year's expo amounted to $55.45 million; this year they totalled just $41.64 million, BGMEA President Abdus Salam Murshedy said.
Murshedy sought assistance from the government under incentive package.
Leader of the Opposition in Parliament and BNP chief Khaleda Zia at the closing ceremony of BATEXPO also urged the government to give a portion of the financial stimulus package to the apparel sector.
But, Muhith said: "This is not a serious matter. The rise and decline of export in a sector is very natural.
"We should not think that everything will be over if a sector suffers less export."
In April, the government rolled out a stimulus package of Tk 34.24 billion. However, the two major trade bodies of the garments industry, the BGMEA and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), were highly critical as the highest export-earning RMG sector was excluded altogether from the proposed package.
The two trade bodies later welcomed the revised Tk 50 billion package included in the FY 2009-'10 budget, although they again expressed concern that the RMG sector still received no specific allocation.
"It is not right that the world will come to an end, if a child cries. The government will have to consider all sectors," AMA Muhith told the news agency Monday.
He was asked whether the readymade garment sector would get the assistance.
"Those sectors will come under incentive package that have been really affected by economic recession," Muhith said at the Secretariat.
A committee, formed on the RMG sector with former finance minister M Saiduzzaman as the head, will meet Tuesday. The government will act on the recommendations of the committee, the minister said.
The industry's top trade body, Bangladesh Garments Manufacturers and Exporters Association (BGMEA), at a media briefing said Sunday they saw a 30 per cent dip in spot orders from buyers at this year's BATEXPO, the country's largest apparel fair.
Spot orders at the last year's expo amounted to $55.45 million; this year they totalled just $41.64 million, BGMEA President Abdus Salam Murshedy said.
Murshedy sought assistance from the government under incentive package.
Leader of the Opposition in Parliament and BNP chief Khaleda Zia at the closing ceremony of BATEXPO also urged the government to give a portion of the financial stimulus package to the apparel sector.
But, Muhith said: "This is not a serious matter. The rise and decline of export in a sector is very natural.
"We should not think that everything will be over if a sector suffers less export."
In April, the government rolled out a stimulus package of Tk 34.24 billion. However, the two major trade bodies of the garments industry, the BGMEA and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), were highly critical as the highest export-earning RMG sector was excluded altogether from the proposed package.
The two trade bodies later welcomed the revised Tk 50 billion package included in the FY 2009-'10 budget, although they again expressed concern that the RMG sector still received no specific allocation.