Export-oriented ready-made garment (RMG) sector is likely to get additional fund to pay their workers' wages for three more months beginning from July.
Prime Minister's private sector industry and investment advisor Salman F Rahman assured the sector leaders of looking into the issue, so that they can get money from the government's Tk 300-billion fund in this regard.
The assurance came at a virtual meeting on Thursday, after RMG sector leaders reiterated their demands for providing additional funds from the government to pay their workers' wages for the months of July, August and September.
Earlier, the government announced a Tk 50-billion fund for export-oriented sectors to pay workers' wages for three months, beginning from March, to face the Covid-19 pandemic impact.
An additional amount of Tk 25 billion has been disbursed to provide wage from the Tk 300-billion fund.
Speaking at the virtual meeting, Mr Salman said, "So far I know, a total of Tk 80 billion has been disbursed from the Tk 300-billion fund. And a portion of the amount can be given to export-oriented sectors to pay workers' wages."
He said he will talk to the central bank, so that exporters can receive an allocation in this regard.
RMG sector leaders requested for issuance of a modified directive from the central bank, saying that due to the cap of Tk 300 billion, they would not receive the fund.
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Vice President Siddiqur Rahman said at the virtual meeting that RMG sector is passing a challenging time due to the ongoing Covid-19 pandemic.
'Lean period' (for the sector) has started from July, and the government should take measures, so that entrepreneurs are not lost, he said, terming the ongoing calendar year as the year of survival.
Entrepreneurs received funds amounting to 60 per cent of workers' wages from the government's Tk 50-billion stimulus package, while the rest 40 per cent was paid by them.
He also informed the meeting that an additional amount of Tk 25 billion has been disbursed from the Tk 300-billion fund to pay workers' wage.
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Dr Rubana Huq said US$ 4.33 billion export earnings have lost in last three months due to the ongoing coronavirus outbreak.
RMG export earnings year-on-year declined by 20.14 per cent in March, 85.25 per cent in April, and 62.06 per cent in May. Work orders worth billions of dollars have been cancelled or put on hold, while payments against orders have been deferred.
As a result, factories are now in cash flow shortage, she also said, demanding loan at low interest rate from the Tk 300-billion fund, which was announced for providing working capital of industry.
On June 22, the BGMEA and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) in a joint letter to the Ministry of Finance urged for allocating them additional fund as loan to pay workers' wages from July to September.
Munni_fe@yahoo.com