Salman seeks better package for textile sector

Salman seeks better package for textile sector
Tue, Apr 21st, 2009 4:20 pm BdST

Dhaka, Apr 21 (bdnews24.com) – Business leader Salman F Rahman has asked for a rethink of the government's financial support package for recession-hit export-focused sectors and said apparel sector should get much more.

Salman, the prime minister's private sector development adviser and former FBCCI chief, made the request to finance minister AMA Muhith at the Secretariat on Tuesday. Incumbent president of the Federation of Bangladesh Chambers of Commerce and Industries Annisul Huq accompanied him.

"Since the finance minister said the [package] was on-going, we think it should be reviewed for some sectors," Salman told reporters after the meeting.

"Especially, financial incentives for the textile sector should be increased because this is one of the most hardly-hit sectors," he observed.

The textile mill owners are counting losses as huge threads are lying unsold at every mill, he said.

"India is our main competitor in the apparel sector. We are facing losses as India recently devalued their currency (to give their exporters competitive edge)," Salman added

Annisul said there has been varied reactions to the package, which is why more discussions on it was needed. He said textile and readymade garment, handicrafts, plastic and many other sectors hit by the recession needed a better package.

"We will place a fresh proposal before the finance minister next week. We hope he will respond positively.

Muhith did not speak at the meeting.

He rolled out a Tk 3,424 crore support package Sunday for the last quarter of the current fiscal year to shield farming, power and export sectors from the effects of the global slowdown.

He said Monday the textile sector may still get an incentives boost and that he "forgot" to include the vital sector.

Local textile producers, which supports the country's biggest export earner—garments—already enjoy a five percent cash incentive.

Though it raised incentive rates for some export sectors, namely jute, leather and frozen fish, it did not raise them for textiles.

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