Finance Minister Ameer Khosru Mahmud Chowdhury has asked the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) for a comprehensive recommendation to identify specific obstacles to ease the conduct of business. He ordered to submit the list with problems and proposals within the next one week.
This directive was given in the courtesy meeting of the Board of Directors of BGMEA with the Finance Minister at the Secretariat on Wednesday.
BGMEA confirmed the matter in a press release on Thursday (February 26).
In the meeting led by BGMEA President Mahmud Hasan Khan, Senior Vice President of the organization Inamul Haque Khan, Vice President (Finance) Mizanur Rahman, Vice President Vidya Amrit Khan, Vice President Md. Shihab Uddoza Chowdhury, Director Shah Raid Chowdhury, Director Faisal Samad, Director Mohammad Abdus Salam, Director Nafis-ud-Daula, Director Majumdar Arifur Rahman and Director Dr. Rashid Ahmed Hossaini was present.
Important issues of the garment industry were discussed in the meeting. BGMEA seeks Finance Minister’s intervention for speedy release of outstanding cash incentives and simplification of procedures. In a written statement, the organization said that currently the applications for cash assistance of numerous organizations are stuck due to the complexity of the audit process of Lien Bank and Bangladesh Bank. As the textile and apparel sector is still outstanding with incentives worth Rs. 5,700 crores in the fiscal year 2025-26, the concerned institutions are facing severe financial crunch, which is seriously affecting the export capacity.
The BGMEA leaders sought the minister’s cooperation in speedy disbursement of outstanding cash assistance, as well as making the process easier and faster and disbursing the funds immediately upon submission of applications instead of waiting for a fixed period (currently there is provision for disbursement on a quarterly basis).
The Finance Minister acknowledged the rationale of this demand and gave positive consent for speedy release of dues and assured to modernize and simplify the entire process.
In addition, the vice-president of BGMEA said in the meeting. Shihab Uddoza Chowdhury raised an important point. He said that scheduled banks often rescheduled loans to maintain NPL performance but did not provide required working capital to the respective factories. As a result, factories cannot operate and debt repayments are hampered. He offered to turn it into a ‘win-win’ situation, saying that if the factory gets working capital along with the rescheduling, the bank will also get its due back. The Finance Minister also agreed with this proposal.
BGMEA leaders unequivocally point out that the need of the hour is to facilitate business and reduce the cost of doing business to consolidate Bangladesh’s position in the fierce competition of the global market. They requested special policy support to ensure an investment-friendly environment by removing existing barriers at customs, ports and other administrative levels.
AmarBangla/SA
