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BGMEA seeks policy support to retain RMG sector competitiveness

Staff Correspondent
05 Feb 2024 21:04:06 | Update: 05 Feb 2024 21:04:06
BGMEA seeks policy support to retain RMG sector competitiveness
— Courtesy Photo

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has sought policy support of the government necessary to sustain competitiveness of the export-oriented industries, particularly the ready-made garment sector, even after graduation from the list of least developed countries (LDCs) in 2026.

A delegation of BGMEA, led by President Faruque Hassan, made the call during a meeting with State Minister of the Ministry of Commerce Ahasanul Islam (Titu) at the secretariat in Dhaka on Monday, read a press release.

The delegation included BGMEA Vice President Shahidullah Azim, Directors Asif Ashraf, Faisal Samad, Barrister Vidiya Amrit Khan, Inamul Haq Khan (Bablu), Md Imranur Rahman, and Neela Hosna Ara.

The discussions encompassed the current state of the RMG industry, preparedness for LDC graduation-related challenges, and possible steps to enhance trade competitiveness and explore new export markets.

BGMEA President Faruque Hassan apprised the state minister of the major challenges confronting the RMG industry, including a decline in exports due to high inflation globally, rising prices of energy and raw materials.

He pointed to the recent decision by the government to reduce cash incentives for garment shipments and other export-oriented products, expressing concern that such a sudden decision would have a negative impact on Bangladesh's garment exports, thus on foreign reserves since the RMG industry alone contributes around 84 per cent to the total export earnings.

Faruque urged the government to reconsider the decision and continue the policy support of cash incentives as before.

As the preferential trade benefits currently enjoyed by Bangladesh as an LDC will no longer be available after the graduation, Faruque stressed the need for necessary policy measures to help the country address upcoming challenges in the international trade landscape.

He also urged the government to ease export procedures for the RMG industry to overcome existing challenges and progress forward.

The BGMEA president praised the Commerce Ministry for its support in exploring new export destinations and enhancing the skills of the RMG workforce.

He expressed optimism that with concerted efforts and support from the government, Bangladesh's export-oriented industries, especially the RMG sector, can navigate the evolving global trade scenario successfully.