Dhaka: A delegation from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), headed by its President Mahmud Hasan Khan, engaged in discussions with Dr. Anisuzzaman Chowdhury, Special Assistant to the Chief Adviser, addressing pressing challenges faced by the country’s ready-made garment (RMG) industry. The meeting took place at the Ministry of Planning in the capital.
According to Bangladesh Sangbad Sangstha, the BGMEA delegation comprised Vice President (Finance) Mizanur Rahman, Vice President Md. Shihab Uddoza Chowdhury, and member Md. Kamal Uddin. The meeting was attended by Dr. Mostafa Abid Khan, Dr. Md. Rezaul Bashar Siddiquee, Nesar Ahmed, Joint Secretary Abul Kalam Azad, and Communication Specialist Mehedi Mosharraf Bhuiyan, as stated in a BGMEA press release.
The discussions covered a broad range of issues including banking challenges, National Board of Revenue (NBR) related issues, gas supply to industries, renewable energy integration, enhancing Chattogram Port’s efficiency, and licensing complications. BGMEA President Mahmud Hasan Khan highlighted the reduction in the loan installment repayment period by Bangladesh Bank from 9 months to 3 months, which poses financial constraints for many entrepreneurs. He proposed extending the period to 6 months to prevent 500-600 factories from becoming classified loans.
Khan also addressed the reduction in special cash incentives and alternative cash support, arguing that it is neither supportive nor timely for the garment industry. He requested the government reconsider these reductions for the sector’s and national economy’s interest.
Moreover, the BGMEA suggested that the 1% source tax deducted at the export level be treated as the final tax liability at the end of the fiscal year. They urged for the reinstatement of the pre-shipment credit refinancing scheme until 2030 to assist entrepreneurs with working capital needs and proposed the creation of a forced fund against export proceeds for wage payments and crisis resolution during emergencies.
The BGMEA President emphasized that customs-related processes impact production costs and delay operations, stressing the need to streamline customs procedures to reduce lead time in the competitive global market. A proposal to NBR for industry-friendly customs policies was also discussed.
The delegation called for enhanced efficiency at Chattogram port and urged the government to expedite gas extraction from newly discovered fields in Bhola for national grid supply. Importing more LNG was discussed as a short-term solution.
The importance of renewable energy for environmentally friendly garment production was underscored, with proposals for public-private partnership (PPP)-based solar power plants on government-allocated khas land and water bodies.
On social infrastructure, the BGMEA expressed interest in building hospitals, housing, and schools for workers in garment-dense areas like Gazipur and Ashulia, contingent on government land allocation. They also sought support for reviving the abandoned garments village project in Munshiganj and establishing an industrial zone for small and medium-sized factories in Chattogram.
In response, Dr. Anisuzzaman Chowdhury assured the BGMEA of the government’s awareness of the RMG sector’s importance and its commitment to providing necessary support for its growth.