The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has urged the government to maintain policy support in order to uphold the competitiveness of the ready-made garment industry amidst global economic challenges. During a meeting at the Secretariat in Dhaka on Sunday, 4th February), a delegation led by BGMEA President Faruque Hassan conveyed this message to Finance Minister Abul Hassan Mahmood Ali, according to a press release.
The delegation included former BGMEA president Md Siddiqur Rahman, BGMEA Senior Vice President SM Mannan (Kochi), Bangladesh Textile Mills Association (BTMA) President Mohammad Ali Khokon, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Executive President Mohammad Hatem, and Vice President of Federation of Bangladesh Chambers of Commerce & Industries (FBCCI) Md Munir Hossain. Commerce Ministry Senior Secretary Tapan Kanti Ghosh and Finance Division Secretary Md Khairuzzaman Mozumder also attended the meeting. The business leaders congratulated Finance Minister Abul Hassan Mahmood Ali on assuming responsibilities in this crucial ministry.
The meeting primarily addressed the pressing issues facing the ready-made garment industry of Bangladesh, including the impacts of the global economic situation and the country’s LDC graduation on its trade.
BGMEA President Faruque Hassan emphasized the major challenges affecting the RMG industry, such as the repercussions of the Russia-Ukraine conflict leading to inflation in the United States and the European Union, consequently reducing apparel exports from Bangladesh.
Faruque Hassan noted that the decline in garment exports negatively affects Bangladesh’s foreign reserves, as the RMG industry contributes 84% of the country’s total export earnings.
The sudden government decision to cut cash incentives on garment and other export-oriented products shipments is expected to detrimentally impact exports and the overall economy, said Faruque Hassan, urging the government to reconsider and continue its previous policy support of cash incentives.
In response, Finance Minister Abul Hassan Mahmood Ali assured the delegation that the government would examine the issue of cash incentives to support the RMG industry.