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Apparel manufacturers have requested the Bangladesh Bank (BB) governor to release funds from export incentives to facilitate the payment of employee salaries and bonuses ahead of Eid-ul-Fitr.
Leaders of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) made the request to Dr Ahsan H Mansur during a meeting at the central bank headquarters in the capital on Tuesday.
A large number of applications for cash incentives remain pending due to the complexities in the lien bank and Bangladesh Bank audit processes.
In the ongoing fiscal year, approximately Tk 57 billion in incentives for the textile and garment sector remains unsettled.
The quick disbursement of the funds would help ease the liquidity crisis faced by factory owners, BGMEA Vice-President Md Shehab Udduza Chowdhury told reporters after the meeting with the central bank governor.
To facilitate the payments, he said, they also requested the governor to consider providing soft loan facilities equivalent to two months' wages amounting to Tk 140 billion, repayable within 12 months with a three-month grace period.
Citing the current situation in garment exports, he said growth had been on a downtrend for the last seven months, which was very rare.
Between February and March, factories would have to shut down for 25 days due to general elections and other government holidays, he said.
"So, it becomes extremely hard for exporters to pay two months of salary by continuing production for 35 days. That is why the support is needed," he added.
He further said regular shipments had been disrupted, putting factory owners under severe financial strains.
Under these circumstances, paying wages and bonuses on time ahead of Eid-ul-Fitr had become a major challenge for entrepreneurs, the BGMEA leader added.
The association also called for the reintroduction of loan support under Packing Credit (PC), with the interest rate reduced to 7 per cent, increasing the Pre-Shipment Credit Scheme fund size from Tk 50 billion to Tk 100 billion, and extending the scheme's tenure until 2030.
BGMEA leaders informed the Bangladesh Bank governor that paying workers on time was extremely important for maintaining stability in industrial areas and the overall economic discipline in the country.
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