The readymade garment sector is yet to get any money under stimulus package from the finance ministry.
The second phase of such package worth Tk 1,000 crore that was announced on November 25 last by Finance Minister AMA Muhith to cushion the sectors affected by global recession has covered the prime foreign exchange earning sector.
"The RMG exporters have not yet received any benefit from the government''s bailout package, when negative growth in apparel exports goes on," said Abdus Salam Murshedy, president of the Bangladesh Garment Manufacturers and Exporters Association.
President of Bangladesh Knitwear Manufacturers and Exporters Association Fazlul Hoque''s view in this regard is also identical. “No positive thing happened so far, although I talked to the finance minister several times about the disbursement of the stimulus package,” he said.
When the finance minister''s attention was drawn to this matter, he told The Daily Star: "We''re giving the money and the exporters are benefiting from the stimulus.”
Muhith however did not elaborate when and how the money under the bailout plan would be disbursed among RMG exporters.
The government pledged many things through this stimulus package, which include compensating power crisis by paying the licence renewal fees for the captive power plants used in different RMG units for a period stretching from November 1, 2009 to June 2010.
Another benefit the government offered in the package is extension of the bank loan re-scheduling without any downpayment up to June 30, 2010 from October 2009 at a 10 percent interest rate instead of the current 13 percent for the RMG and textile sectors.
Besides, a 5 percent cash incentive will be provided for the apparel exporters in case of new destinations they choose, except US, European Union and Canada, for a span of three years.
According to the package document, members of Bangladesh Textile Mills Association will receive this facility in case of direct yarn exports.
The government has also decided to give a special benefit to small and medium enterprises (SME). The companies that exported up to $3.5 million in FY2008-09 will be brought under the SME category.
Source: The Daily Star, Bangladesh (10th March 2010)
