BKMEA wants Tk7,000cr outstanding cash assistance from govt before Eid

Highlights

• A letter has been sent to the finance secretary today
• BKMEA urged the Finance Division to release the funds by 15th Ramadan
• Delays could cause serious disruptions in the export sector, says the letter
• Political situation created significant challenges for industrial establishments, it adds

The Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) has requested the Finance Division to release Tk7,000 crore in outstanding cash assistance for exports before Eid-ul-Fitr.

BKMEA President Mohammad Hatem made the request in a letter to Finance Secretary Md Khairuzzaman Mozumder today (4 March).

According to the letter, claims for approximately Tk7,000 crore in export subsidies or cash assistance have been submitted to the Bangladesh Bank for the 2024-25 financial year up until March 2025.

Hatem urged the Finance Division to take special measures to release the funds within the shortest possible time, preferably by the 15th of Ramadan, noting that delays could cause serious disruptions in the export sector.

In the letter, he stated that the country's changed political situation, along with instability in the ready-made garment (RMG) industry, has created significant challenges for industrial establishments.

He noted that prolonged labour unrest in various industrial zones had severely disrupted production, leading to factory closures and an abnormal rise in production costs.

"But in order to maintain buyers' confidence in the country's export industry, RMG entrepreneurs have been forced to accept work orders at prices lower than actual production costs in many cases. Despite an increase in orders, many factories are facing a cash shortage," the letter said.

The letter also highlighted the increasing pressure of salary and Eid bonus payments, warning that failure to meet these obligations could lead to renewed labour unrest.

Mohammad Hatem stressed that government support is crucial to maintaining stability and continuity in production.

Copies of the letter have been sent to the finance adviser, commerce adviser, labour and employment adviser, Bangladesh Bank governor, and the president of the Bangladesh Employers' Federation.

Notably, the commerce ministry, in a recent report, flagged about 500 RMG factories as at risk of unrest over the payment of wages and festival allowances ahead of Eid-ul-Fitr.

The assessment report also identified 36 factories as particularly vulnerable to worker unrest and potentially in need of financial support to ensure timely payment of wages and festival allowances before the holidays.