PMO directs Jute Ministry to resolve problems with banks
21 Jul '05
2 min read
Prime Minister's Office (PMO) has ordered the Jute Ministry to settle the bank liabilities of 35 jute mills denationalised in between 1982 and 1984 with help of the Finance Ministry.
Despite repeated directives issued by the Prime Minister's Office since 2003, the Jute Ministry has not yet taken required step to solve financial problems of the denationalised jute mills.
The Bangladesh Jute Mills Association (BJMA) official expressed that the Jute Ministry's lack of interest to settle the bank liabilities of those jute mills owners, left only 12 out of 35 mills operational to export jute products to overseas.
Earlier, bank liabilities of the denationalised jute mills was around Taka 750 crore besides Taka 127 crore given prior to nationalisation by the government against equity. At present, outstanding bank loans is at nearly Taka 500 crore as the World Bank interfered, said the BJMA official.
The BJMA accused the Jute Ministry, saying that the ministry is in favour of the state-run jute mills, while the private firms are treated partially.
Currently, there are 104 units in the private sector, out of which 35 are denationalised, 13 are diversified and 48 are jute spinning mills. Only eight jute mills had been set up in the private sector, since the government adopted privatisation policy.
However, these new mills are not subject to financial constraint, concluded the BJMA official.
Meanwhile, the Jute Ministry has planned a workshop inviting industry veterans who will offer solutions for the sick jute sector. Dates are yet to be finalised, and Prime Minister Begum Khaleda Zia is likely launch it, official sources informed.
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