Finance Minister Mr. Abul Hassan Mahmood Ali met with garment exporters to address concerns regarding the government’s decision to reduce export incentives, which could affect the competitiveness of the apparel industry. Previously, government provided cash subsidies to exporters, including garment manufacturers, ranging from 1 % to 20 %. However, by the end of January, these incentives were reduced to 0.5% to 15%, impacting key garment items and various markets.
Garment makers expressed that the significant reduction in subsidies, amounting to nearly 80 %, would make it challenging to compete globally. The finance minister assured that the decision would be reviewed if necessary after discussions with stakeholders. Industry leaders highlighted the importance of garment exports to Bangladesh’s economy and emphasized the need for alternative strategies to support export growth. They also underscored the impact of the subsidy changes on existing orders and urged for consultations before further decisions. The government’s decision to gradually withdraw export incentives is aligned with Bangladesh’s transition to a developing country by 2026.