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The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has urged the government to expedite the disbursement of Tk 57 billion in cash incentives for the ready-made garment (RMG) sector.
The call came during a meeting with Finance Minister Amir Khosru Mahmud Chowdhury at the Secretariat on Wednesday, a delegation member said on Thursday. The delegation was led by BGMEA President Mahmud Hasan Khan.
BGMEA described the “fragile state” of the industry, highlighting stalled incentives, shortages of working capital and obstacles to ease of doing business.
Khan said the cash incentives for FY2025–26 remain stuck in audit procedures by lien banks and Bangladesh Bank, leaving many factories under severe liquidity stress.
He urged a shift from the quarterly release system to immediate disbursement upon application.
The finance minister acknowledged the validity of the demand and pledged to modernise and streamline the process to ensure quicker fund release.
BGMEA Vice-President Md Shihab Uddoja Chowdhury raised concerns over loan rescheduling, noting that while banks reschedule loans to manage non-performing loan ratios, they often fail to provide the working capital necessary to keep factories operational.
He proposed a “win-win” approach in which banks would supply working capital alongside loan rescheduling. The minister expressed support for the proposal.
Describing the garment industry as the “backbone of the economy”, Amir Khosru asked BGMEA to submit a detailed list of obstacles and recommendations within a week and assured full policy support for sustainable sector growth.
The delegation included Senior Vice-President Enamul Huq Khan, Vice-President (Finance) Mizanur Rahman, Vice-Presidents Vidya Amrit Khan and Md Shihab Uddoja Chowdhury, and several board directors.