The garment industry will suffer due to the closure of the incentive, said the deputy leader of the opposition Anisul Islam Mahmud at the parliament on Sunday evening.
He requested to cancel the circular of Bangladesh Bank in this regard till next June.
Anisul Islam Mahmud said this while talking on the point of order at the session of the 12th National Parliament.
Speaker Dr Shirin Sharmin Chowdhury presided over the session.
Anisul Islam Mahmud said that Bangladesh Bank issued a circular on January 30 to stop incentives for the garment industry.
“The garment industry is one of the main sectors of Bangladesh's economic development. I also agree with the intention of this circular which I think will be detrimental to our economy at a time when we have a dollar crisis and pressure on export earnings. If subsidies and incentives are suddenly stopped, the garment sector will be in trouble. The question is that there is already a circular that subsidy will be given till next June,” he added.
“Based on that circular, garments have made contracts till this June. They have taken this subsidy into account while making their contracts. If this is stopped, those in this garment business will suffer huge losses. We have to admit that the garment industry that we depend on, 80% of the exports come from here,” said Anisul Islam.
He also mentioned that there is pressure from many sides on garment workers' wages which have been increased recently. Along with that, the price of gas has been doubled.
"Due to this circular, I anticipate that the garment industry will encounter difficulties and suffer. Therefore, I urge the finance minister, Bangladesh Bank, and the governor of Bangladesh Bank to reconsider and revoke this circular. Ideally, the subsidy was intended to continue until next June. After that, a gradual reduction could be implemented from July onwards, considering that we cannot provide any subsidy after 2026 in accordance with the WTO regulations," he added.
