Bangladesh Garments Association suggest increase in government budget for Industry
In this year’s budget, Finance Minister AHM Mustafa Kamal has proposed an increased budget of Tk 2,825 crore for the garment sector, with 4% increase in export incentives and 1% increase of incentives in other sectors of the industry.
Ms. Rubana Huq, President of Bangladesh Garments Manufacturers and Exporters’ Association (BGMEA) told media persons recently after the national budget for 2019-20 that Bangladesh faced max allocation for ready-made garments in past 10 years which is still minimal. Ms. Huq further added that the allocated budget is very minimal for the kind of challenges this industry is facing. A 3% increase in incentives would have done the job.
According to Rubana Huq, the production cost has increased by 29.4 per cent and lead time has increased as well, lack of innovation and deficit in technological upgradation are challenges that cannot be tackled by only an increase of 1 per cent in incentives.
“We suggested a budget allocation for garment workers social security but
it is not seen. I would request to include their social security in the budget
proposed,” she added.