RMG owners want more govt money

Ready-made garment industry owners have once again demanded money from the government to sustain in their business during coronavirus, paying salaries and allowances of their workers.

The two largest organisations of export-oriented garment owners, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), have written to Finance Minister AHM Mustafa Kamal seeking the allocation.

The letter, jointly signed by BGMEA President Rubana Haque and BKMEA President AKM Selim Osman, requested the Finance Minister to allocate funds on a ‘simple’ basis for the payment of workers' salaries and allowances for July, August and September.

BGMEA Vice President Arshad Jamal Dipu and BKMEA First Vice President Mohammad Hatem confirmed the matter to The Business Post.

BGMEA Vice President Arshad Jamal Dipu said the country's garment industry has suffered the most due to coronavirus. If we want to save the economy, we have to keep this sector alive. Earlier, the prime minister had given an incentive package of Tk 5,000 crore for this sector. With that, many garment owners have paid their workers for the last three months. But the coronavirus situation is yet to be contained. No new orders are coming now and without the help of the government, it will not be possible for many owners to keep the garments running.

BKMEA First Vice President Mohammad Hatem told The Business Post, “We have the opportunity to pay three months' wages in April, May and June with the packaged loan." Now we want further allocation on easy terms as before so that we can pay salaries and allowances for next July, August and September. Because the factories are not in a position to pay the workers for the next three months. In such a situation, we have appealed to the government to give the loan facility for three more months to pay the salary.”

At present, a factory which is exporting 80 per cent of its products, can borrow from stimulus package of Tk 5,000 crore with a service charge of a maximum of 2 per cent to pay the salaries and allowances of the workers and employees. Many garment factory owners have already paid their salaries for April, May and June by taking loans from this fund.

It is learned that 1,370 members of BGMEA and 519 members of BKMEA had applied for loans from the incentive package. The applications of 99 members of BKMEA were rejected due to various reasons. However, the owners of the garment industry have received the lion's share of the incentive package of Tk 5,000 crore in a loan.

sr/wi