Bangladesh Politics. Politics of Bangladesh. Bangladesh Politics News - http://politics.com.bd
Review incentive package: Business leaders urge govt
http://politics.com.bd/articles/870/1/Review-incentive-package-Business-leaders-urge-govt/Page1.html
Super Admin

 
By Super Admin
Published on Wednesday 22nd 2009
 
Business leaders of the country yesterday again urged the government to review incentive package and include some sectors, which were hard hit by the global economic recession.

Business leaders of the country yesterday again urged the government to review incentive package and include some sectors, which were hard hit by the global economic recession.

FBCCI and BGMEA leaders made the plea in separate meetings with Finance Minister AMA Muhit and LGRD Minister Syed Ashraful Islam in the secretariat. Besides, REHAB has urged the government to include the sector in the stimulus package and allocate Tk 1,000 crore to help survive the industry.

Business leaders said the incentive package has left out various important sectors that were affected by the global economic meltdown. The sectors include readymade garment, textile and housing. They demanded review of the package considering the affect of the recession on the sector.

The President of Federation of Bangladesh Chamber of Commerce and Industry Annisul Huq along with Salman F Rahman, the Prime Minister's private sector development adviser, met Finance Minister AMA Muhit at his office and said the apex trade body will submit a detail proposal for the recession-hit products like yarn, plastic products and handicrafts next week.

"They (FBCCI) will submit an one-year plan next week," Muhith told reporters after the meeting, adding that they have requested to reconsider the package.

Muhith on Monday hinted that he would consider increasing the cash incentive for yarn exports as the product has been left out of the Tk 3,424 crore Stimulus Package he announced Sunday.

The cash incentives for export of jute goods, leather and leather products, and frozen food have been increased under the bailout package.

"We'll try to submit a detail proposal for review of the package as few more items deserve assistance," Annisul Huq said. "We have requested the minister to consider financial assistance for the items in the interim package.

Salman F Rahman said the Minister has already hinted that he would reconsider the financial assistance for the spinning sub-sector of the textile industry. They sought increasing the cash incentive from 5 per cent to 15 per cent.

He said the country's yarn manufacturers lost competitiveness with the main contender, India, due to substantial devaluation of their currency against dollar. Spinners accumulated a huge stock, as a result.

The president of Bangladesh Garment Manufacturers and Exporters Association Abdus Salam Murshedy and his board of directors met LGRD Minister Syed Ashraful Islam at his office and said the highest foreign currency earning source readymade garment sector was not accommodated in the incentive package.

He said both the price and order of RMG fall drastically due to the affect of global financial meltdown. Refereeing their meeting with Finance Minister on April 16, he said the Minister assured to give the sector most priority in the package. Commerce Minister also spoke in the same way. But the sector has been left out from the cash assistance.

The BGMEA team put forward some demands in front of the LGRD minister to consider with utmost importance.

Real Estate and Housing Association of Bangladesh in a press statement yesterday demanded review of the incentive package and accommodate the sector for benefit.

REHAB president Tanvirul Huq Probal said the sector was facing tough time due to price hike of construction materials. But the sector was left out from the stimulus package.

He urged the government to allocate Tk 1,000 crore for the sector under the package.



Source: The New Nation