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Bangladeshi garment units want loans rescheduled

The readymade garment sector in Bangladesh faced challenges from January to March this year due to political unrest. Supply of raw materials and accessories was affected due to the blockade in the first quarter of this year. As a result, garment manufacturers could not manufacture products on time and a good number of factory owners missed their shipment dates.

In addition there are pressures on the readymade garment sector, like devaluation of the dollar in the international market. The sector says buyers want low prices when prices of readymade garments of Bangladesh are much lower compared to other competitors’.

Other issues are lack of productivity and efficiency, shortage of skilled manpower, scarcity of land and high interest rates of bank loans. Entrepreneurs have to pay a 13 to 16 per cent interest on bank loans. More than 250 factories have been shut down due to weak gas and electricity connections.

The country’s garment manufacturers and exporters want a ten-year loan rescheduling facility. They want a withdrawal of the tax at source imposed on the manufacturing sector in the proposed national budget for fiscal 2015-16. They say the one per cent export duty imposed on capital machinery will discourage business.

 
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