Stimulus package for RMG sector urged
Sunday, 8 March 2009
BGMEA's outgoing president Anwar-Ul-Alam Chowdhury Parvez cried out for immediate stimulus package to help the country's export-oriented garment industry to face adverse impacts of global economic recession, reports UNB.
"Policymakers need to take immediate decision to support the ready-made garments (RMG) sector that experiences declining growth and price fall," he told reporters at the Dhaka Reporters Unity Saturday.
Giving some statistics, he said the quarterly growth from July to
September 2008 was 48 per cent compared to corresponding period of the previous year while it came down to 4.5 per cent during the October-December period. He feared a negative growth during January to March this year.
Parvez said new orders would be coming and they were trying to negotiate with buyers, but price fell by 15 to 17 per cent, in the meantime.
Saying that Bangladesh had tremendous opportunity despite the recession, he added but some measures needed to be taken urgently. The measures included technical upgradation fund, export-performance-benefit scheme and export incentives on retention.
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) leader referred to stimulus package already taken in India and China and pleaded that the Bangladesh government also needed to take some measures to protect this promising export sector.
"If stimulus package is given by the government, 20 per cent growth rate could be maintained," he said on an upbeat note on the bright side of the situation.
Referring to his recent talks with representatives of top 10 companies, including Wallmart, Parvez said the representatives suggested five-year multiple visa, alternative port, low Internet cost and a good relation between workers and management of the garment factories.
The BGMEA leader said instead of depending on the World Bank and the IMF, the government could rely on the private sector for infrastructure development, including multiple-lane Dhaka-Chittagong highway on BoT (build own transfer) basis.
BGMEA vice-president Mahmud Hasan Babu, DRU president Shamim Ahmad and general secretary Pathik Saha were present.
Earlier, Parvez inaugurated a BGMEA-assisted new conference lounge at the DRU.
"Policymakers need to take immediate decision to support the ready-made garments (RMG) sector that experiences declining growth and price fall," he told reporters at the Dhaka Reporters Unity Saturday.
Giving some statistics, he said the quarterly growth from July to
September 2008 was 48 per cent compared to corresponding period of the previous year while it came down to 4.5 per cent during the October-December period. He feared a negative growth during January to March this year.
Parvez said new orders would be coming and they were trying to negotiate with buyers, but price fell by 15 to 17 per cent, in the meantime.
Saying that Bangladesh had tremendous opportunity despite the recession, he added but some measures needed to be taken urgently. The measures included technical upgradation fund, export-performance-benefit scheme and export incentives on retention.
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) leader referred to stimulus package already taken in India and China and pleaded that the Bangladesh government also needed to take some measures to protect this promising export sector.
"If stimulus package is given by the government, 20 per cent growth rate could be maintained," he said on an upbeat note on the bright side of the situation.
Referring to his recent talks with representatives of top 10 companies, including Wallmart, Parvez said the representatives suggested five-year multiple visa, alternative port, low Internet cost and a good relation between workers and management of the garment factories.
The BGMEA leader said instead of depending on the World Bank and the IMF, the government could rely on the private sector for infrastructure development, including multiple-lane Dhaka-Chittagong highway on BoT (build own transfer) basis.
BGMEA vice-president Mahmud Hasan Babu, DRU president Shamim Ahmad and general secretary Pathik Saha were present.
Earlier, Parvez inaugurated a BGMEA-assisted new conference lounge at the DRU.