PM calls upon apparel exporters to expand market, diversify basket

Prime Minister Sheikh Hasina yesterday reiterated her call for expanding the export market apart from diversifying the exportable items.

"To increase exports, the market should be expanded alongside diversification of products," she said when leaders of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) paid a courtesy call on her at Ganabhaban in the capital.

Sheikh Hasina also urged businessmen to pay special attention to ensuring quality of the goods produced in Bangladesh.

During the meeting, the BGMEA delegation briefed the premier about business, trade, exports and recent market situations, KM Shakhawat Moon, PM's deputy press secretary, told the media later.

The PM listened to the business leaders attentively and assured them of resolving the problems they raised, including a volatile global situation, as soon as possible, he added.

The delegation included BGMEA's current President Faruque Hassan and former presidents Abdus Salam Murshedy, Shafiul Islam and Siddiqur Rahman, and former commerce minister Tipu Munsi.

BGMEA seeks continued support

Following the meeting with the prime minister, BGMEA Senior Vice President SM Mannan Kochi remarked on the government's decision to cut cash incentives for the apparel industry.

"We hope the prime minister will take a positive decision as she previously did during the pandemic by providing stimulus packages and a 1% cash incentive for exporters," Mannan told The Business Standard.

He highlighted the industry's current challenges, including a 179% increase in gas prices last year and the implementation of a new wage structure in December 2023. He added that only a few buyers are contributing to offsetting these additional costs.

"Rising bank interest rates and freight costs further exacerbate the situation. With various international and local challenges, the industry is battling for survival. If the government cuts cash incentives, around 4 million jobs will be at risk," Mannan stated.

While acknowledging World Trade Organization regulations limiting cash incentives after LDC graduation, Mannan emphasised the need for dialogues and prior notice before implementation.

"We are making progress in new markets," he said, "but abruptly withdrawing cash incentives from major markets and on 56% of apparel items would be detrimental to the industry, potentially forcing many factories to close."