The knitwear exporters have told the finance minister that the apparel exporters' organisation BGMEA's demand for Tk 30 billion from the government's incentive package to pay workers wages and allowances ahead of Eid-ul-Fitr was not right.

Bangladesh Knitwear Manufacturers' and Exporters' Association thinks the implementation of the incentive package sought will not be possible before Eid-ul-Fitr, it chief said after meeting with finance minister AMA Muhit at his office on Sunday. Bangladesh Garment Manufacturers' and Exporters' Association on Thursday asked the government for a Tk 30 billion (3,000 crore) incentive package by Sep 7. It cited poor business due to global financial downturn for the money even though the readymade garment sector achieved four percent export growth in the last fiscal year.

BKMEA president Mohammed Fazlul Hoque told reporters after the meeting that the distribution of the fund from the incentive package will not be possible before Eid-ul-Fitr. "We requested for payment of Tk 500 crore that is due from the cash support the government had set aside for the apparel sector." "We told all factory owners to pay workers wages and allowances at any cost."

Muhith said, "The second meeting of the taskforce will be held on the 15th or 16th October. The demand of apparel exporters will be discussed there. The meeting will decide how to spend the 5000 crore." Earlier, the finance minister criticised BGMEA demand and said it was "unacceptable". "In no way can their demand be accepted," he said in an early reaction to bdnews24.com.

On Sunday, Muhith said, "They can voice their demands. But it was not by any means right to link the incentive package with the workers' wage issues before Eid. I think it was a strategy on their part." They could have put in another way, the minister added. The BKMEA asked the government to extend the term of the incentive package from six months to one year. The minister said he will consider all their demands. Muhith said, "I believe, there will not be any unpleasant situation before Eid."

BGMEA president Abdus Salam Murshedi said at a news conference that BGMEA neededa Tk 5,000 crore incentive package to give away to the sectoral employees and workers before the festival. Murshedi also demanded an additional Tk 10 benefit per dollar during exchange on 30 percent of the total export costs, minimum five percent subsidy on the interests accrued on the debts in the RMG sector and Tk 10 per litre of diesel until power and gas supply situations improved. Muhith, commenting on the demand for compensation for losses due to power and gas crisis, said, "Such a demand from them ahead of the Eid is not all a good sign."

-bdnews