Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) on Tuesday requested the interim government to release the outstanding instalments of cash incentives, totalling Tk 70 billion, by 15 Ramadan.
The trade body for the knitwear sub-sector emphasised that any further delay in the release of instalments could lead to serious disruptions, particularly in the export-oriented textile and garment industries.
BKMEA president Mohammad Hatem made the plea in a letter sent to the finance secretary on Tuesday.
In the letter, the BKMEA leader said that by March this year, claims for export subsidies or cash assistance amounting to about Tk 70 billion have been submitted to the central bank for 2024-25 fiscal year.
He urged the Finance Division to take special measures to release the funds within the shortest possible time, preferably by Ramadan 15, ahead of Eid.
He also pointed out that the ready-made garment industry has been passing through a tough time due to a number of challenges, including the changed political situation.
The prolonged labour unrests in various industrial zones have severely disrupted production, leading to factory closures and an abnormal rise in production costs, he added.
"But to maintain buyers' confidence here in the country's export industry, RMG entrepreneurs have been forced to accept work orders at prices lower than actual production costs in many cases," Mr Hatem said.
Despite an increase in orders, many factories are facing liquidity crisis, he said in the letter, highlighting the increasing pressure of wage and festival allowance payments ahead of Eid.
He warned that failure to make timely payments might lead to renewed labour unrests in the industrial sector, and sought government's support which is crucial to maintaining stability in the sector.
Meanwhile, a commerce ministry report has revealed that some 500 RMG factories are at risk of unrest over the payment of wages and festival allowances ahead of Eid-ul-Fitr.
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