Govt to provide incentives to struggling factories: PM assures RMG leaders

The government has decided to provide incentives to factories that are struggling but still operational through a special fund to overcome the ongoing crisis in the readymade garment sector, the country's main source of export earnings.

The assurance came from Prime Minister Tarique Rahman during a meeting on Monday, May 11, with leaders of the Bangladesh Garment Manufacturers and Exporters Association and the Bangladesh Knitwear Manufacturers and Exporters Association, following their demands.

BGMEA President Mahmud Hasan Khan and BKMEA President Mohammad Hatem confirmed the matter. They said struggling factories will receive benefits from the fund being formed by Bangladesh Bank to reopen closed factories.

Business leaders at the meeting criticised several policies of Bangladesh Bank and sought various forms of policy support to expand investment and business.

Mahmud Hasan Khan said the prime minister has asked them to submit written proposals on what kind of policy support is needed to facilitate business and investment. The prime minister assured them that the proposals would be implemented once submitted.

He also said the prime minister will hold another meeting with the BGMEA board after Eid-ul-Azha.

Mohammad Hatem said the prime minister emphasised export diversification and informed them about a plan to transfer government-owned silk factories in Rajshahi to the private sector.