BKMEA Wants 10pc Cash Incentives, Loan Interests Cut
Sunday, 15 March 2009

Bangladesh's knitwear exporters have sought 10 percent special cash incentive for a year from the government to face off global economic crisis fallouts.

The Bangladesh Knitwear Manufacturers and Exporters Association also wants interests on bank loan cut to 10 percent from 14-15 percent, and the gas and power crisis resolved.

BKMEA president Fazlul Huq said the economy faced a big challenge and the knit and woven sector has also felt the pinch of the global recession.

"Export orders have slumped and are poised to decline further, which is unprecedented," Huq said at news briefing Saturday.

He welcomed the finance minister's announcement to roll out an integrated stimulus package by month-end to help the exporters.

"The package should help us recoup the loss and survive the fierce competition from the rival countries."

He said the 10 percent special financial facility can be withdrawn once the global crisis was over.

"The government gives 10 percent cash incentive to 10 export sectors, but the RMG industry does not get any direct cash facility.

The government however provides five percent cash facility to the textile sector only if local yarns are used."

The BKMEA chief suggested that the government could provide the exporters 10 percent of the cash value of the export made this year as special facility.

Huq pointed out that China, India, Pakistan, Vietnam and others had given incentives and devalued currencies against the US dollar in the face of the crisis.

"But we are against devaluation of taka as it will push the prices of essentials up, adding to people's sufferings."

Source: bdnews24.com

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