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RMG makers demand Tk 3,000cr before Eid

Seek stimulus package to pay workers' salaries, bonus

Staff Correspondent
Garment manufacturers yesterday sought a Tk 3,000-crore stimulus package from the government to pay out salaries and Eid bonuses for workers.
At least 40 per cent factory owners would not be able to pay their workers Eid bonus for failing to get adequate orders from international buyers, said Abdus Salam Murshedy, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) at a press conference.
Leaders of garment manufacturers said the stimulus package is vital for their survival as the country's apparel exporters are now having a tough time because of the global recession.
In the first quarter of the current fiscal year, apparel exporters lost their business by 15-20 per cent compared with the corresponding period of last fiscal year, said major exporters.
The prices of Bangladeshi garment items fell by 20-25 per cent on the international market in the first three months of this year as major apparel importing countries in the EU and the USA cut down purchase orders globally, the
BGMEA chief said.
"We need financial support from the government to survive," he said.
Murshedy said both the private and staterun banks are now reluctant to give them loans, as some garment factory owners have become bankrupt.
The BGMEA chief said the government should announce the stimulus package by September?.
He said over three million people are now working in 4,800 garment factories across the country.
Murshedy said if any labour unrest breaks out due to the government's inaction in giving the package, they should not be held responsible for it.
The BGMEA boss said they didn’t have to deal with the issue of providing iftar to garment workers this year as garment factories are shut before iftar in line with the instructions of international buyers.
In the budget for the current fiscal year, the government announced a stimulus package of Tk 5,000 crore to tackle the fallout from the
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global financial meltdown.
Murshedy said import of apparel items by USA fell by 6.97 per cent during January-June of this year compared with the corresponding period of last year.
I The garment export to USA declined by 0.48 percent and 3.83 percent in May and June of this year compared to last year.
"1 fear the negative growth in export of apparel items to the US market will reach double digits in August and September of this year." Murshedy said.
He said Bangladesh's major competitors including China, India and Pakistan have already announced stimulus packages worth billions of dollars to help their apparel exporters tackle the impacts of global recession.
"As a result, we are lagging behind them despite having ready markets,” he said.
The BGMEA chief said the government should ensure smooth supply of gas and power for uninterrupted production in garment factories.
Bangladesh exported woven garment worth $5,918 billion against the $5,684 billion target while the knitwear items worth $6,429 billion were exported against the target for $6,583 billion in fiscal 2008-09, show data of Export Promotion Bureau.