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Garment, leather, software to get priority in proposed industrial policy

PM speaks of trouble-free port, privatising some services

By Toufique Imrose Khalidi and Govinda Shil
Prime Minister Sheikh Hasina has hinted at privatising some services to free sea ports from the hands of disruptive elements, one of the key impediments to smooth functioning of foreign trade activity.
She was responding to a plea from industry leaders at a National Export Committee meeUng yesterday that those obstructing port activities should be punished and that the government must act to create a normal atmosphere immediately. sources said.
AVe have already responded ... and taken positive steps," she was quoted to have told the meeting attended by foreign, finance and commerce ministers, and state ministers for foreign affairs and planning, senior government officials and business leaders. "Just a group of people is holding us to ransom," she said, pledging to sort out the problem soon.
The meeting also produced government decisions to put thrust on garment, leather and software industries in the, proposed industrial policy aiming to diversify and expand the export base.
The government has target-ted USS 6 billion in exports this fiscal, and the receipts have been better than expected so far. by only two per cent though. In the first five months till November, earnings were up by about 20 per cent against that in the same period last year.
State Minister for Foreign Affairs Abul Hasan Chowdhury suggested a stronger and reorganised export promotion bureau, which he said was not properly equipped tq do its Job.
Software received the most attention as the prime minister gave directives to extend support to "new entrepreneurs and new ideas". She assigned the task to the science and technology ministry which would coordinate with other ministries and agencies
The prime minister also raised the issues of vegetable
and jewelry exports, "which could help create Job opportunities in rural areas".
Small-scale industry was another area the prime minister identified as having potential to prop up the Job market. Her personal interest resulted in a proposal to set up a handicraft design centre at the gaimed craft village Rupas hl ha^° >n ®°nar®aon" near
Responding to leather industry representatives who complained of non-availability of funds, she said the tanners
should get loans ahead of Eid-ul-Azha at least from the money already recovered.
Garment exporters asked for an interest write-off for some 500 "block accounts', so called because these were blocked or frozen after the borrowers’ failure to pay back. The exporters say they were victims of such circumstances as the political standoff in 1995-96.
The meeting suggested resolution of the problems on a "case to-case basis', which kept BGMEA leaders far from being happy. They said they were
willing to pay the 'interest-free block amount".
According to a BGMEA estimate. meeting their demand would mean waiving some Tk 100 crore, or 20 per cent of the Tk 500 crore in original loans
The banks have done business with us for long. They have made money every time. But this time we failed because of situations beyond our control." a BGMEA leader argued when asked by The Daily Star why the banks should agree to bear the losses for which they were not responsible.