Release due Tk4,000cr cash incentive for exporters by Dec: BKMEA to finance ministry
In a letter, signed by BKMEA Executive President Mohammad Hatem, issued by the organisation today (18 December), it requested that the funds be released this December.
The Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) has written to the finance ministry to disburse the pending Tk4,000 crore in cash incentives kept for exporters within December.
In a letter, signed by BKMEA Executive President Mohammad Hatem, issued by the organisation today (18 December), it requested that the funds be released this December.
The request coincides with the hike in minimum wage of RMG workers to Tk12,500, which was approved last month.
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"Amidst the struggles faced by the industrial sector due to global economic crisis, the abrupt rise in the wage structure in the garment sector poses a challenge for many garment owners. This situation raises concerns about the timely disbursement of salaries and allowances, potentially leading to possible unrest among workers," reads the letter.
It also stated that the factory owners require special assistance from the finance ministry to address this issue.
The BKMEA letter also mentioned that the sector is grappling with pending claims exceeding Tk4,000 crore in cash assistance from Bangladesh Bank, plunging it into severe financial distress.
According to the official data, the government allocated cash incentives of Tk7,825 crore for the local exporters, except for those in the jute sector, in the national budget for FY23.
In April, apparel exporters urged the government to provide at least Tk1,500cr in advance cash incentives from the export subsidy fund, saying that factory owners need special support to pay workers' wages and bonuses ahead of the Eid-ul-Fitr.
