Relocation of knitwear production bases beyond Dhaka, Ctg suggested
Wednesday, 4 November 2009
FE Report
Speakers at a seminar Tuesday stressed the need for relocation of production bases, raising efficiency and exploring new knitwear markets for sustainable growth of the largest exporting earning sub-sector.
The observations came at a seminar organised by Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) at a city hotel.
Adviser to the Prime Minister on Economic Affairs Dr Mashiur Rahman attended the seminar as the chief guest while executive director of the Centre for Policy Dialogue (CPD) Mustafizur Rahman was the special guest.
Mashiur Rahman in his speech said mere reduction in interest rate would not bring any positive result unless efficiency improves.
"Interest rate cut is not the only solution. We must raise our efficiency to make it a sustainable industrial sector," he said.
Dr Mashiur said banks might face liquidity crisis if the interest rate stays so low as many would be discouraged to deposit money with banks.
He hinted that many industries might be relocated to Mymensingh after development of Chittagong port and upgrading of Dhaka-Chittagong highway to four lanes.
The adviser said the government should provide subsidies to every industry if the production cost is higher than international prices. "In this situation the government should support the industries to help them survive."
Speakers at a seminar Tuesday stressed the need for relocation of production bases, raising efficiency and exploring new knitwear markets for sustainable growth of the largest exporting earning sub-sector.
The observations came at a seminar organised by Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) at a city hotel.
Adviser to the Prime Minister on Economic Affairs Dr Mashiur Rahman attended the seminar as the chief guest while executive director of the Centre for Policy Dialogue (CPD) Mustafizur Rahman was the special guest.
Mashiur Rahman in his speech said mere reduction in interest rate would not bring any positive result unless efficiency improves.
"Interest rate cut is not the only solution. We must raise our efficiency to make it a sustainable industrial sector," he said.
Dr Mashiur said banks might face liquidity crisis if the interest rate stays so low as many would be discouraged to deposit money with banks.
He hinted that many industries might be relocated to Mymensingh after development of Chittagong port and upgrading of Dhaka-Chittagong highway to four lanes.
The adviser said the government should provide subsidies to every industry if the production cost is higher than international prices. "In this situation the government should support the industries to help them survive."