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Stimulus To Be Stretched For Textile Mills PDF Print E-mail
Thursday, 23 April 2009

The Tk 3,424-crore stimulus package will be extended as the government has decided to boost cash incentives for the textile sector, the finance minister announced on Wednesday.

"The package is a process and we'll try to extend support for those sectors which become affected by the recession," said AMA Muhith after a meeting with the Bangladesh Textile Mills Association at the secretariat.

"A working committee on the package and representatives of textile mills will decide on the amount to be added to the package to increase the rate of incentive," he said.

The minister had hinted on Monday that the government would consider raising the incentive rate for the sector, which was "overlooked" in the just-announced support package.

The textile sector, which supports the country's biggest export earner—garments—already enjoys a five percent cash incentive.

Muhith rolled out the support package on Sunday for the last quarter of the current fiscal year to shield farming, power and export sectors from the effects of the global recession.

Though it raised incentive rates for some export sectors, namely jute, leather and frozen fish, it did not raise them for textiles.

"I mentioned earlier that I forgot to include support to the textile sector, which is affected by the global downturn," Muhith said Wednesday.

"The existing cash incentive for the sector will be increased to offset its losses."

Muhith said Sunday the government had divided its recession package into two parts, an immediate allocation for the remainder of the current year and one for 2009-10.

Agriculture received the bear's share of the first-phase Tk 3424 crore package, with direct subsidies to the sector jumping to Tk 5,785 crore from Tk 4,285 and an extra Tk 500 crore under recapitalisation of farm loans.

The rest was allocated to increase subsidies in power and raise the rate of cash incentives for the stated exporters.

Muhith also laid out an extensive policy support plan for exporters, manufacturers, investors and the labour market.


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