BKMEA seeks outstanding TK 70 billion cash assistance by 15th Ramadan
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Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) on Tuesday requested the interim government to release the outstanding installment of cash incentives worth TK 70 billion by 15th Ramadan.
The trade body for the knitwear subsector argued for the immediate release of the cash incentive installment, saying delays could cause serious disruptions in the export-oriented sectors, especially the textile and garment industry.
BKMEA president Mohammad Hatem made the plea in a letter sent to the finance secretary on Tuesday.
In the letter, the BKMEA leader said that until March this year, incentive claims worth about Tk 70 billion in export subsidies or cash assistance have been submitted to the central bank for the fiscal year 2024–25.
Mr Hatem urged the Finance Division to take special measures to release the funds within the shortest possible time, preferably by 15th Ramadan before Eid.
He said that the readymade garment industry has been passing a tough time due to a number of challenges, including the changed political situation.
The prolonged labour unrests in various industrial zones have severely disrupted production, leading to factory closures and an abnormal rise in production costs, he added.
"But to maintain buyers' confidence here in the country's export industry, RMG entrepreneurs have been forced to accept work orders at prices lower than actual production costs in many cases," Mr Hatem said.
Despite an increase in orders, many factories are facing liquidity crisis, he said in the letter, highlighting the increasing pressure of wage and festival allowance payments ahead of Eid.
He warned that failure in making timely payments might lead to renewed labour unrests in the industrial sector and sought the government's support, which is crucial in maintaining stability in the sector.
Meanwhile, a commerce ministry report revealed that some 500 RMG factories are at risk of unrest over the payment of wages and festival allowances ahead of Eid-ul-Fitr.