Staff Reporter :
The entrepreneurs of the country’s apparel sector have sought fresh loan support to pay wages of the workers for the next three months and to face the financial crisis resulted from the impact of the second wave of the Covid-19 pandemic.
In a letter sent to the Finance Minister AHM Mustafa Kamal on Saturday, the three apex bodies of the sector–Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Textile Mills Association (BTMA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA)-made the demand.
In the letter, they said that a devastating situation is prevailing in the industry and many factories of the readymade garment sector have been closed due to the outbreak of the pandemic.
Many countries have imposed lockdown or similar restriction to curb infections of the pandemic, the letter said.
It has become uncertain to get payment against the exported goods as many reputed international brands have already become bankrupted, it said.
The garment sector, main export earning source, is in dire financial crisis due to the cancellation or held up of purchase orders and delaying of payment, the leaders said.
Normally, the salaries, allowances of the workers and the operational are being paid after receiving the payment from the buyer and receiving the incentive money for cash assistance, they added.
“But the entrepreneurs are not able to apply for fresh cash assistance for not realization of export value. Moreover, many buyers are paying the price at discounted rate,” the letter said.
“Under this situation, the apparel industry is facing severe liquidity crisis. On the other hand, there is a lot of pressure on the RMG exporters to pay the salaries, allowances and bonuses of the workers as the upcoming Eid is knocking at the door,” the letter said.
“The financial crisis has made the sector difficult to pay the allowances and it has become urgent need to provide loans on easy terms and condition for the months of April, May and June like before,” it said.
The leaders also cited that many countries have offered financial packages to help their respective export-oriented sectors’ competitiveness globally.
Earlier in the last year, the government allocated Tk 50 billion for the export-oriented sectors to pay workers’ wages for three months, beginning from March, to face Covid-19’s impact.
But the total disbursement eventually stood at Tk 75 billion for the three months’ wages.
The additional Tk 25 billion has been disbursed to provide wage from the Tk 300-billion fund that was announced to supplement the working capital of industries to overcome the fallout.
Later, the government provided fund to pay July wages following the apparel leaders’ demand for the same.
