Country’s exporters have demanded the continuation of Export Development Fund (EDF) facility to keep the export sector strong amid the global economic turmoil, according to media reports.
Moreover, they also demanded to end the complexities to get all sorts of cash incentives in a recent meeting with the Commerce Ministry on “Trade Support Advisory Committee’ regarding import-export and overall trade and investment.
Recently, the Export Development Fund has curtailed by another $200 million to $5.2 billion which was $6 billion in December and $7 billion earlier.
Speaking to the media, Commerce Secretary Tapan Kanti Ghosh said that the EDF fund has been shrunk due to dollar crisis.
The export earnings have been negative since last month and amid such situation, the businesses demanded the continuation of EDF fund.
The meeting focused on the potential to increase exports in the RMG sector and seven other industries.
Commerce secretary said that even though they wish to diversify, there are more prospects than ever for the RMG.
Geopolitical concerns are causing China’s market share to decline quickly, and Bangladesh stands to benefit. Expanding the export of goods produced of man-made fibers has enormous potential, he added.
BKMEA executive president Mohammad Hatem told the media that in order to maximize export revenue given the current scenario, they urged the government grant the EDF facility at the advisory committee meeting.
They also intended to eliminate the confusion surrounding financial aid.
He also said that they have placed the demand to give new cash assistance to man-made fibre and recycled products to boost exports in the garment sector. Moreover, they also proposed AIT to be reduced from 1% to 0.25% for a period of five years on import of raw materials in the ready-made garment sector.
They also demanded ensuring facility for opening of back-to-back LCs in case of non-bonded import goods to contribute to the export sector.