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Domestic steel makers have sought bond facility like the RMG sector with an eye to expanding export earnings, investment and production in the sector, industry insiders said.
Backward- and forward-linkage industries like engineering materials, iron and steel products, furniture, chemical products, electronics and electrical products, auxiliary and service sectors would also expand significantly for this, they claimed.
They said it was possible to increase the volume of export earnings to $150 billion from $60 billion within the next three to five years.
The government will also not face revenue losses if the facility is given.
Bangladesh Stainless Steel Pipe Manufacturers Association (BSSPMA) has recently requested to different state agencies, including commerce ministry and Economic Relations Divisions, to take necessary step to provide such facility against 100 per cent bank guarantee to the partial export-earning sector.
The BSSPMA said the government's income would increase through direct and indirect taxes because of increasing raw material imports and expansion of service and other supporting sectors.
When asked, BSSPMA vice-president Saifur Rahman said, "We've sought bond facility for the stainless steel sector as the government has put provisions in the Import Policy Order 2021-24, Export Policy 2021-24 and Tariff Policy-2023 for offering such room to different sectors."
He said the prime minister also instructed to offer bond facility to some potential sectors like RMG given by the government.
According to Mr Rahman, the country currently achieves a negligible amount of foreign earnings from the emerging sector.
But he expressed hope that export earnings from the sector would stood at $4.0 billion annually.
The global steel and product market size is around $4,200 billion, he added.
According to a document, the association said, "Investors in the sector will be willing and able to diversify products to a wide range of overseas markets on their own initiative."
As a result, export receipts will be much higher than the additional import cost of raw materials/materials, reads the document.
"We've received a letter from the BSSPMA and are scrutinising the issue," said officials concerned.