Finance minister seeks garment leaders suggestions' to ease business costs
Garment leaders raise concerns over customs costs, pending incentives.
Finance Minister Amir Khosru Mahmud Chowdhury has sought suggestions from business leaders on why the cost of doing business is rising, what bureaucratic obstacles they face and what measures are needed to ease operations.
He discussed the issues today (25 February) during a meeting with a delegation of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), led by its President Mahmud Hasan Khan Babu, at the Secretariat.
According to three garment sector leaders present at the meeting, the minister asked them to submit proposals outlining specific problems and possible solutions.
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After the meeting, BGMEA Director Faisal Samad told The Business Standard, "We told the finance minister that instead of incentives, we need policy support to simplify business procedures and reduce costs. In response, he asked us to identify the problems and suggest ways to address them."
He said the association would submit a policy paper within a week outlining measures to reduce the cost of doing business.
Requesting anonymity, another BGMEA director said they informed the minister that customs-related costs have increased compared to before.
"The government has increased port charges, and illegal payments at customs have also risen," he alleged.
Businesses have long complained about harassment and demands for unofficial payments by some customs officials, particularly in matters related to bond licences, raw material entitlements, utility permissions and audits.
Another BGMEA leader present at the meeting said the minister questioned how much more support the garment sector should receive, noting that other sectors often say the industry already receives substantial government benefits.
At the meeting, BGMEA leaders said nearly one year's worth of incentive payments, amounting to around Tk8,000 crore, remain pending and urged the government to release the funds quickly.
They also said that due to two major holiday periods over the next two months, elections and Eid-ul-Fitr, factories would operate for only 35 days, making it difficult to manage working capital.
The association sought a loan facility of around Tk7,000 crore to cover one month's wages, to be repaid over 15 months.
According to the business leaders, the finance minister responded positively to the proposal.
