Commerce Minister Amit Khosru Mahmud Chowdhury said yesterday that the government was planning to introduce an incentive package for backward linkage industries in (he country to help them face challenges in the aftermath of withdrawal of Multi ! ibie Arrangement (MIA).

The government would do

everything possible for the survival of the sector in the competitive global market as the MI A will be phased out in 2004, he said.

I he minister was speaking as chief guest al a dialogue on ‘Coping with Post-MFA Challenges: Strategic Response for Bangladesh Readymade Garments (RMG) Sector’, organised by the Centre for Policy.Dialogue (CPD) in association with the Oxfam.

Former minister for commerce and industry Tofuil Ahmed. Bangladesh Garment Manufacturers and Importers Association (BGMEA) president Kutubuddin Ahmed. Bangladesh Textile Mills Association (RIMA) chairman Abdul Malin Chowdhury. Oxfam executive director Barbara Stocking, and Garment workers' union leaders Khursbid Alam. Nazma Akhter and Shamsitl Alam took part in the dialogue held at ( IR-DAP auditorium in the city.

CPD Chairman Prof. Rehman Sobhan presided while Prof. Mustafizqr Rahman. research director of CPD, presented a keynote paper on the subject.

The commerce minister said the government was fully aware of the post-MFA situation and making all-out efforts to save the export sector.

All the problems arising out of the changing situation would be addressed properly, he added

Khosru underscored the exploration of new markets and diversification of export items to raise the export volume.

Referring to the insignificant

amount of inter-trade in the SAARC countries, the commerce minister said smaller markets should also be explored to offset the decline in export volume in the competitive atmosphere,

Portner industry minister lo-fail Ahmed observed that the government's announcement of stopping cash incentives to the garments sector has caused hus-tration among the business people.

The withdrawal of cash incentives would have a negative impact on the garments export, he said.

Referring to various incentives provided by the past Awami League government for the garments sector, the former minister said the cash incentives was increased to about Ik 700 crore annually from Tk 16 crore.

He also opposed the withdrawal of cash incentives.

Tofall said many items in the garments sector would not be cost-effective without (he government’s support.

Kutubuddin Ahmed said thousands of workers would lose their jobs after the quota system is phased out.

He said that no past governments spent any amount to increase (he facilities for market access for (he Bangladeshi products.

1 he BGMEA president urged (he government to take initiative in (his regard (o cope with (he changed situation.

Referring to various activities undertaken by the BGMEA for the development of garments sector, Kutubuddin said. "We arc working with a mission."

Bl MA chairman Abdul Math) ( howdhury blamed India lor dumping their goods in Bangladesh with a view to destroying the textile industry’ here.

He said Bangladesh is the only place where India can export textile items to under the existing quota system.

I he garments workers’ union leaders urged the government and the BGMEA leaders to take steps to improve the overall condition of (he several lakh workers in the garments sector.