Light engineering sector needs govt help

Our Correspondent | Published: June 11, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

CHITTAGONG, June 10: The light engineering industries in the port city of Chittagong are beset with manifold problems including shortage of capital, skilled workforce and lab test facilities.
The authorities concerned should create a cluster of light engineering enterprises in Chittagong like that at Dholaikhal in Dhaka city.
The survival of small and medium enterprises in the light engineering sector depends very much on the careful balancing of import duty structures on finished products and imported raw materials, as the imported finished products are dictating the selling price.
Members of the Bangladesh Engineering Workshop Owners Association raised these issues while speaking at a seminar on 'products of light engineering, export barriers and future scope' in the port city Tuesday.
Deputy General Manager of BSCIC (Bangladesh Small and Cottage Industries Corporation), Chittagong, Mesbaur Rahman was present at the seminar as the chief guest, while General Secretary of Engineering Workshop Owners Association Ahsan Ullah Moni was the special guest.
Director of Export Promotion Bureau (EPB) Alamgir Siddiquee presided over the seminar.
Chief Instructor and head of the Department of Power Engineering of Chittagong Polytechnic Institute AKM Mokbul Hossain Khan presented the keynote paper at the seminar.
Mr Mesbaur Rahman said that the government declared light engineering an industry and was working to boost production in workshops by providing 10 per cent cash incentive besides reducing the tariff rates.
The BSCIC sanctioned loans to 43 industries selling goods to Bangladesh Railway, urea factories, cement factories, Karnaphuli Paper Mills, Rayon Mills and others, he said.
The light engineering sector has a vast role to play in the country's economy, although currently its contribution to the export basket is below 2.0 per cent.
The light engineering products are exported mainly to EU countries and the USA, Mr Rahman added.
The government has taken steps to improve quality of locally-produced light engineering goods and have skilled manpower. Under the scheme, the government agency, BITEC, has taken up programmes to improve skill of the workers in all districts, he pointed out.
"Steps have also been taken to improve machinery of the factories as most of these factories are equipped with outdated machinery," he said, adding that due to our cheap labour force Bangladesh can achieve a lot from the light engineering sector.
In his keynote paper, Mr Mokbul Hossain Khan said bicycle manufacturing industry has a lot to contribute to light engineering (LE) sector which supplies most of the spare parts of the product.
"LE enterprises are scattered throughout the country which implies employment generation in a wide span of areas. Bangladesh can benefit a lot if the LE products currently imported by the major industries are manufactured in the country. The growth of LE enterprises requires an enabling policy environment and infrastructure support," he said.
EPB Director Alamgir Siddiquee stressed the need for diversification of export goods and put emphasis on the export of LE products, which have a vast market in the globe.