BGMEA has proposed to form a special taskforce mainly to ensure proper inter-ministerial coordination for timely implementation of measures required for protecting the interest of the sector and its gradual growth, sources said. Bangladesh Garment Manufacturers and Exporters Association (BGMEA) put forward the proposal in a letter to the principle secretary Dr Ahmad Kaikaus on Wednesday. Led by the principle secretary, the taskforce would include representatives from the ministries of commerce, labour and foreign affairs, and the trade bodies – BGMEA and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA). BGMEA President Dr Rubana Huq in the letter said: “We request to form a special taskforce to remove inter-ministerial non-coordination for speedy implementation of the urgent and long-term sector-related measures.” Some immediate measures are needed to sustain the growth of readymade garment (RMG) exports and retain the competitiveness in the global market, she said. During the July-November period of last year, RMG exports recorded 7.74 per cent negative growth while Bangladesh’s main competitors especially Vietnam and Pakistan witnessed 5.56 per cent and 4.76 per cent growth respectively, she explained. Welcoming the issuance of the circular related to the 1.0 per cent cash incentive for all RMG exporters, the BGMEA chief said there are some urgent issues in different government ministries and departments needed to be addressed immediately. The proposed taskforce is expected to enhance coordination among the related ministries, identify the required issues and hold continuous discussions to prepare action plan for sustainable development of the country’s largest foreign currency earning sector, she said in the letter. The BGMEA also mentioned some other issues that included special policy support to encourage setting non-cotton textile mills, ‘prevailing wage’ instead of minimum wage and measures to balance wage and skill. The sector also need to set a capacity development benchmark to rein in the unplanned expansion with growing concentration on a few items, it said, proposing formation of a database in this connection. Another urgent issue mentioned by the trade body is to develop an exit policy and fixing a quantifiable definition of good and bad borrowers. The trade body also made some other demands like introduction of RMG foreign currency realisation programme to provide additional Tk 5.0 per US dollar on local value addition. It also urged for retrospective effect of 0.25 per cent source tax from July 01, 2019 and exemption of loan with interest amounting to Tk 6.49 billion of some 133 sick RMG factories to help them survive. The BGMEA also showed its interest to working on publicity and export of ‘Mujib Coat’, according to the letter.
