Economic Reporter :
The government has announced a $10 million fund for 650 firms in four sectors to be distributed over three years with the help of the World Bank to stimulate economic growth.
Commerce Secretary Md Jafar Uddin inaugurated the Export Readiness Fund at the Sonargaon hotel in the capital on Sunday.
The fund aims to directly assist firms in the four sectors – leather and leather goods, footwear, plastics, and light-engineering. The government will distribute the funds in three categories, starting from a maximum of $5,000 to 400 companies each.
As many as 200 other firms will get up to $40,000 each. In the third category, 50 companies will get $200,000 each.
The application process in the first category, or “Window 1”, started along with the inauguration of the programme on Sunday.
The companies willing to apply for the fund in “Window 2” and “Window 3” will be able to start the process in March. All organisations having trade licences, or business companies or their partners can apply for the funds.
A huge drop in Bangladesh’s export earnings has left businesses and analysts worried.
The export earnings in the first five months of the 2019-20 fiscal year was $15.77 billion or 12.59 percent less than the target and 7.6 percent less year-on-year.
Bangladesh Finished Leather, Leathergoods and Footwear Exporters’ Association (BFLLFEA) Chairman Mohiuddin Ahmed Mahin said that the measures would help in boosting exports.
“Easy and timely availability of credit with affordable interest rates is extremely important for the labour intensive sector,” he said.
It is crucial to provide duty free facility to exports to reduce financial burden in importing raw material and inputs, Mahin, also Chairman of RMM Leather Industries Ltd, added.
Earlier, the Prime Minister Sheikh Hasina announced continuation of incentives in leather sector for at least five more years aimed at achieving the desired export target of the leather and footwear industry on October 30 in 2019.
“The incentive in leather sector will be continued for at least five more years with a view to achieving the desired export target from the leather and footwear industry,” she said.
Noting that as part of export diversification, leather sector is being defined as the priority one in the economy and National Industrial Development Strategy, she said “Our government, in its last two tenures, has taken various initiatives such as giving policy support and incentives for development of the leather and footwear industry.”
The government has announced a $10 million fund for 650 firms in four sectors to be distributed over three years with the help of the World Bank to stimulate economic growth.
Commerce Secretary Md Jafar Uddin inaugurated the Export Readiness Fund at the Sonargaon hotel in the capital on Sunday.
The fund aims to directly assist firms in the four sectors – leather and leather goods, footwear, plastics, and light-engineering. The government will distribute the funds in three categories, starting from a maximum of $5,000 to 400 companies each.
As many as 200 other firms will get up to $40,000 each. In the third category, 50 companies will get $200,000 each.
The application process in the first category, or “Window 1”, started along with the inauguration of the programme on Sunday.
The companies willing to apply for the fund in “Window 2” and “Window 3” will be able to start the process in March. All organisations having trade licences, or business companies or their partners can apply for the funds.
A huge drop in Bangladesh’s export earnings has left businesses and analysts worried.
The export earnings in the first five months of the 2019-20 fiscal year was $15.77 billion or 12.59 percent less than the target and 7.6 percent less year-on-year.
Bangladesh Finished Leather, Leathergoods and Footwear Exporters’ Association (BFLLFEA) Chairman Mohiuddin Ahmed Mahin said that the measures would help in boosting exports.
“Easy and timely availability of credit with affordable interest rates is extremely important for the labour intensive sector,” he said.
It is crucial to provide duty free facility to exports to reduce financial burden in importing raw material and inputs, Mahin, also Chairman of RMM Leather Industries Ltd, added.
Earlier, the Prime Minister Sheikh Hasina announced continuation of incentives in leather sector for at least five more years aimed at achieving the desired export target of the leather and footwear industry on October 30 in 2019.
“The incentive in leather sector will be continued for at least five more years with a view to achieving the desired export target from the leather and footwear industry,” she said.
Noting that as part of export diversification, leather sector is being defined as the priority one in the economy and National Industrial Development Strategy, she said “Our government, in its last two tenures, has taken various initiatives such as giving policy support and incentives for development of the leather and footwear industry.”
