Emphasising the significance of continuity, the garment makers’ body stressed the importance of sustaining cash incentives for the apparel sector, extending to new markets like Australia, India, and Japan.
The association urged postponement of the central bank’s circular, highlighting the need for comprehensive stakeholder discussions before any decision is made.
AKM Salim Osman, president of BKMEA, underlined the potential dire consequences if the incentives were abruptly reduced in January amid the prevailing economic challenges.
The BKMEA president outlined the substantial investments in the industry, with over 500 spinning mills, a significant portion of which are export-oriented, contributing greatly to the nation’s economy by helping many suppliers of knit apparel.
Critiquing the suddenness of the circular without stakeholder consultation, Osman underlined the need for gradual adjustments, particularly as Bangladesh approaches graduation from the category of least developed countries by 2026.
He underscored the industry’s struggles, including a significant decline in export orders, exacerbated by gas and dollar crises leading to underutilisation of production capacity and abnormal production costs.
In seeking government support to stay competitive globally, Osman highlighted the importance of policies such as Remission of Duties and Taxes on Exported Products (RoDTEP) and technology upgradation funds.
ALCHEMPro News Desk (DR)
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