Bangladesh Government has stated that the country was firmly committed to follow fiscal policies as per the Memorandum of Economic and Financial Policies (MEFP) issued by the country's Finance Minister M. Saifur Rahman Minister.
In a letter addressed to Rodrigo de Rato, Managing Director, International Monetary Fund, the document spells out objectives and policies that the Government intends to pursue in 2006.
It clearly states that Government remains committed to maintaining macroeconomic stability, implementing structural reforms, particularly in tax administration, nationalized commercial banks, and the energy sector, and improving governance.
More importantly for the Ready Made garment sector, the document acknowledges that uncertainty prevails over the “magnitude of the impact from the phase-out of MFA quotas.”
It contend that “so far, the impact has been more benign than anticipated, and exports of ready-made garments (RMG) and RMG-related imports have both risen at a faster pace than originally envisioned under the program.”
MEFP notes that apart from other textile sectors knitwear seems to attract the most investment. But it goes in to a cautious mode as it states, “Nevertheless, over the medium term, RMG export prospects will depend on measures to improve competitiveness. Funding and operational constraints for upgrading infrastructure, particularly for improvements in port operations, remain a major problem and governance problems will also need to be addressed.”
International Monetary Fund
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