B Mirror Report: Today, Md. Mostaqur Rahman, Governor of Bangladesh Bank, received a courtesy call from a team of the Bangladesh Garment Manufacturers and Exporters Association, led by its President Mahmud Hasan Khan, to discuss the difficulties the nation’s garment industry is now facing.

In order to help the industry deal with a number of financial and economic challenges, the BGMEA leaders requested immediate policy support from the central bank, according to a press release.

Other members of the delegation included BGMEA Director Majumdar Arifur Rahman, Director Dr Rashid Ahmed Hossaini and Managing Director of Mahin Apparels Ltd. Abdullah-Al-Mahmud Mahin. Senior officials of Bangladesh Bank were also present at the meeting.

Speaking at the meeting, BGMEA President Mahmud Hasan Khan said the country’s garment sector is currently passing through a difficult time due to global economic uncertainty and several domestic challenges. Although some banks have rescheduled loans, many factories are still struggling with shortages of working capital, making it difficult for them to maintain production and repay loans on schedule.

To protect the industry and encourage new entrepreneurs, BGMEA leaders urged the continuation and expansion of government cash incentives. They proposed raising the special cash incentive rate from 0.30 percent to 1 percent, increasing the alternative cash support from 1.5 percent to 2 percent, and raising incentives for SME industries from 3 percent to 4 percent.

The delegation warned that delays in disbursing incentives could lead to the closure of many factories, which would have negative impacts on the labour market.

BGMEA also proposed reducing the interest rate on packing credit (PC) to 7 percent, increasing the pre-shipment credit refinance scheme from Tk 5,000 crore to Tk 10,000 crore, and extending the scheme until 2030. They further suggested bringing export loan interest rates to single digits and ensuring easier access to credit for SME factories.

Listening to the concerns, Bangladesh Bank Governor Md Mostaqur Rahman assured the delegation that matters within the central bank’s jurisdiction would be addressed promptly. Regarding cash incentives, he said no application would remain pending and that arrangements would be made to release incentive payments within the same month they are claimed to ease liquidity pressure on exporters.

The BGMEA delegation also raised concerns over difficulties in encashing fixed deposits and export proceeds in Sammilito Islami Bank due to liquidity shortages, which they said were affecting factories’ ability to pay workers’ wages and utility bills.

In response, the governor assured that Bangladesh Bank would take special supervisory measures to address the issue.

BGMEA leaders expressed hope that the central bank’s prompt steps would help the garment sector overcome current global challenges and sustain employment in the industry.