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Stringent procedural complexities make it difficult for non-apparel businesses to avail the relief packages intended to cushion the blow from the coronavirus pandemic.
Leaders of the non-readymade garment industries made the allegation at a virtual discussion on the impact of COVID-19 crisis and response by the priority sectors.
The dialogue was organised by the World Bank Group Sector Competitiveness Advisory for Bangladesh project in collaboration with the Export Competitiveness for Jobs, EC4J, under the ministry of commerce and the Business Initiative Leading Development, Build, on Monday.
Leaders of the associations representing leather and leather goods, plastic, accumulator battery and light engineering sectors attended the dialogue, Build said in a statement.
Saiful Islam, president of the Leathergoods & Footwear Manufacturers & Exporters Association of Bangladesh or LFMEAB, said the Banking Regulations and Policy Department of Bangladesh Bank issued a transparent circular without mentioning the percentage of wages to be provided under the stimulus package.
It has given the guidelines for the Authorised Dealer or AD banks so that they can take the last three months' wages as a baseline.
In contrast, he said, the directives of the ministry of labour and employment issued on March 28, 2020 on the wages for workers have 'diluted the political will' or the main essence of the stimulus package.
The directive has created confusion as it has set 100 per cent wages for the workers coming to the factories while 60 per cent for those working from home.
Mr Islam said the government has given the clear directives to retain the workforce regardless of their positions.
The central bank and the Prime Minister's Office directives are fine in line with the export-oriented industries and their workers, but other guidelines created ambiguities, he added.
He proposed an emergency fund and sought support from the Export Readiness Fund of EC4J.
He noted the leather sector grouping has prepared a 'Management Guidance & Operational Procedures' for its member factories on how to work during this COVID-19 situation by a public health expert in line with the WHO and DG health guidelines to ensure the safeguard measures.
The procedures will be sent to the WHO representative in Dhaka for comments, then it can be shared with other relevant trade bodies.
Jashim Uddin, president of the Bangladesh Plastic and Packaging Association, alleged that 'deemed' exporters are not getting the benefits of the stimulus packages.
The ministry of finance has issued a directive that deemed exporters will use money from the package for cottage, micro, small and medium enterprises or CMSME, worth Tk 200.00 billion, which is not for large industries.
The process of the stimulus fund of Tk 300 billion for large industrial and service sectors needs further simplification and streamlining of the policy process, he said.
In response, Obaidul Azam, additional secretary of the ministry of commerce, said the Labour Ministry put emphasis on saving smaller enterprises from the crisis.
He also laid importance on the specification of protective gears and related products to be produced locally, which have tremendous demand both at home and abroad.
Hosna Ferdous Sumi, private sector specialist at the International Finance Corporation, said the EC4J project will be restructured and redesigned to meet the needs of the post-COVID situation.
She pledged to convene another meeting soon to discuss the issues.
She suggested concentrating more on new products, for which there is a tremendous demand as global value chain is being reshaped now.
Ferdaus Ara Begum, CEO of Build, moderated the session.
Giving an overview of the financial stimulus, she wanted to know how best the money can be utilised by the businesses otherwise employment situation will not improve and business will not get momentum.
She suggested more policy support for entrepreneurs for producing more quality and standard health and safety items to protect the country from future impact of COVID-19.
Abdur Razzaque, president of the BEIOA, said the light engineering sector is an informal sector, contributing mostly to the domestic market. He warned around 50,000 such entities are facing closure and need support to stay in business.