The government has released Tk875 crore as cash subsidy on exports, especially of jute and garment sectors, for the third quarter last fiscal year.
Finance Division disbursed the amount yesterday, which is expected to help the political unrest-hit garments sector to pay wages of their workers by the first week of month, said officials.
Of the money, the garment sector got Tk500 crore and jute and other sectors received the remaining figure.
The garment industry leaders earlier demanded the release of the subsidy instalment so they could pay the workers’ wages.
However, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) had jointly demanded Tk1,900 crore to Bangladesh Bank.
“The subsidy amount we have received will give exporters little comfort to meet the present crisis in political unrest,” former first vice president of BKMEA Mohammad Hatem told Dhaka Tribune yesterday.
He said it would take five more days to have the money in their hands as some processes are involved.
Besides, the blockade is delaying the process of delivering export payments through local channels, Hatem alleged.
He also feared the production might slow down as blockade was disrupting raw materials supply to the factories.
Cash incentive or export subsidy rose by more than 35% to Tk3,500 crore in fiscal year 2014-15 compared to last financial year, a figure that has crossed 3.0% of the total National Board of Revenue earnings.
Currently, 14 export-earning sectors including apparel and frozen foods get the financial benefit ranging 5-20% on their export earnings. Earlier, 19 sectors were eligible for export incentives.
Meanwhile, BGMEA has already urged the politicians to find a solution to the current political instability as the nationwide transport blockade is causing huge losses to the industry.
“Keep the RMG sector alive. Please, ensure a safe supply chain, resolve the current deadlock and guarantee congenial business climate,” said Atiqul Islam, president of BGMEA.
