The ongoing coronavirus pandemic has hit the country’s readymade garment (RMG) sector very hard. As a result, the government had previously provided a stimulus package for the industry. Now, industry insiders are expecting another stimulus package. RMG owners hope a formal announcement in this regard will be made soon.
In a recent virtual meeting held by the Commerce Ministry, the representatives of the RMG sector urged for loan facility again to pay wages of the workers from July to September.
In response to this, Private Industry and Investment Adviser to the Prime Minister, Salman F Rahman, promised to hold talks with the Bangladesh Bank Governor on providing loans to the garment industry owners from the Tk 30,000 crore incentive fund announced by the government.
Under such circumstances, it is imperative that
the RMG sector be provided with further financial
support from the government to keep it alive
Previously, a stimulus package of Tk 5000 was provided by the government at the very outset of the virus outbreak for the sector with which the owners provided workers’ salary and wages for the month of April, May and June.
It is mentionable that the RMG sector is the biggest export sector of the country and therefore, a fresh stimulus package is needed in order to revive country’s economy.
Bangladesh earned $34.13 billion from RMG export in the previous fiscal year. The coronavirus pandemic has led to a decline of $6.6 billion in export this fiscal year.
The RMG sector lost 4.8 billion worth of export just in three months from April to June 2020, which clearly highlights the impact of Covid-19 on the industry.
Under such circumstances, it is imperative that the RMG sector be provided with further financial support from the government to keep it alive. Moreover, other export-oriented sectors should similarly receive financial support in the coming months for a smooth transition to the post-corona economy.
