BGMEA demands withdrawal of BB decision over energy supply to new factories outside economic zones

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) on Monday demanded the withdrawal of the central bank’s circular over gas connections to new industries outside economic zones and the continuation of cash incentives until 2026.

It also alleged non-cooperation from customs and the national board of revenue and demanded a business-friendly and harassment-free environment.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) new board, led by its president SM Mannan Kochi, made the pleas at a meeting with textiles and jute minister Jahangir Kabir Nanak at the latter’s secretariat office in the city.

During the meeting, the BGMEA president said only three economic zones out of the proposed 100 were opened, adding that there will be no fresh investment if no gas is provided outside the economic zones without making them operational.

“The economy will be affected,” Mr Kochi said, demanding the withdrawal of the circular.

Bangladesh Bank has recently issued a circular announcing not to provide gas and electricity connections to new factories outside the government-designated economic zones (EZs) and industrial areas.

The banks have also been asked to ensure mandatory clearance certificates from utility service providers before approving loans, according to the BB circular.

The BGMEA president said Bangladesh fetched US$23 billion from garment exports a decade ago, while there were only eight green garment factories.

“But now the export earnings stand at US$47 billion. The country has 215 green garment factories, while an additional 300 are in the pipeline,” he said, attributing the development to the government's policy support.

The trade body also requested the government to reduce the source tax to 0.5 per cent from the existing 1.0 per cent.

Speaking at the meeting, the textiles and jute minister termed NBR and customs issues a ‘big problem’ and said they received such complaints from other arenas too and would raise the issues in the next cabinet meeting.

He also assured the leaders of the apparel sector to try to ease the directives over gas connections and industry setup outside the economic zones.    

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