Textiles to get piece of incentive package pie
Thursday, 23 April 2009
FE Report
The country's textile operators will finally come under the interim incentive package, announced by the government recently for three export sectors -- jute, leather and frozen food - to help them face the ongoing global recession.
Finance Minister AMA Muhith assured the leaders of Bnagladesh Textile Mills Association (BTMA) of such support at a meeting held at his ministry Wednesday.
"You will be covered by the interim incentive package for the April-June period of current fiscal," the minister told the BTMA delegation, led by its chairman Abdul Hai Sarker.
The formal announcement on this matter is expected to be made shortly, he said.
Mr Muhith also informed the textile operators that the government-formed technical committee on global recession will sit with the sector leaders to fix the rate of cash support, and also to discuss the modalities and other bank financing issues.
The minister, however, assured the BTMA leaders of ensuring quick release of their outstanding cash incentive in the face of the global financial meltdown.
Referring to the interim stimulus package, Mr Muhith said 70 per cent of cash subsidy is to be disbursed immediately after receiving preliminary documents, while the rest amount will be paid after the final inspection.
At the meeting, the BTMA informed the finance minister about adverse impact of the global recession on the Tk 450 billion industry and sought a 15 per cent cash incentive along with other support from the government to face the external shock.
The local yarn manufactures are facing a steep competition in the global market following major devaluation of the currencies by India and Pakistan against the backdrop of global recession, it mentioned.
The country's textile operators will finally come under the interim incentive package, announced by the government recently for three export sectors -- jute, leather and frozen food - to help them face the ongoing global recession.
Finance Minister AMA Muhith assured the leaders of Bnagladesh Textile Mills Association (BTMA) of such support at a meeting held at his ministry Wednesday.
"You will be covered by the interim incentive package for the April-June period of current fiscal," the minister told the BTMA delegation, led by its chairman Abdul Hai Sarker.
The formal announcement on this matter is expected to be made shortly, he said.
Mr Muhith also informed the textile operators that the government-formed technical committee on global recession will sit with the sector leaders to fix the rate of cash support, and also to discuss the modalities and other bank financing issues.
The minister, however, assured the BTMA leaders of ensuring quick release of their outstanding cash incentive in the face of the global financial meltdown.
Referring to the interim stimulus package, Mr Muhith said 70 per cent of cash subsidy is to be disbursed immediately after receiving preliminary documents, while the rest amount will be paid after the final inspection.
At the meeting, the BTMA informed the finance minister about adverse impact of the global recession on the Tk 450 billion industry and sought a 15 per cent cash incentive along with other support from the government to face the external shock.
The local yarn manufactures are facing a steep competition in the global market following major devaluation of the currencies by India and Pakistan against the backdrop of global recession, it mentioned.