Urged for Tk4,000cr, finance releases Tk1,000cr cash incentive for knitwear exporters
The finance ministry has disbursed Tk1,000 crore in cash incentives for exporters following a request by the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) seeking immediate disbursement of the pending Tk4,000 crore cash incentives for the knitwear exporters.
Deputy Secretary of the ministry Helal Uddin on Monday issued a notification in this regard.
Earlier, the BKMEA had sent a letter to the ministry, urging disbursement of the outstanding Tk4,000 crore in cash incentives allocated for exporters within December.
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This request came in the wake of a hike in the minimum wage for RMG workers to Tk12,500, which was approved last month.
The BKMEA letter, signed by its Executive President Mohammad Hatem, also mentioned that the sector was grappling with pending claims exceeding Tk4,000 crore in cash assistance from the Bangladesh Bank.
"Amidst the struggles faced by the industrial sector due to the 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.
According to the official data, the government had 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.
