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Tuesday, 08 December 2020 14:40

BGMEA seeks fresh stimulus package for the apparel sector

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BGMEA has sought a fresh stimulus package for the sector besides urging the government to continue benefits given at the beginning of COVID-19. Since April this year, the Bangladesh government has granted Tk 10,500 crore to the export-oriented garment sector in three phases to help factories pay salaries and allowances to workers at 2 per cent service charge. The government has also unveiled some other packages.

For example, it has introduced a Tk 33,000-crore stimulus package for large industrial units and has made available another Tk 12,750 crore in the Export Development Fund. BGMEA has also demanded an extension of moratorium period for repayment of loans under the first stimulus package to one year from six months now. It has also sought an extension of the payback period to five years from one year as the sector is going through a rough patch

Recently, BGMEA participated in the Call for Action program launched by the International Labor Organization to get back payments from international retailers and brands through discussions and consultations.

Of the major retailers and brands with which the BGMEA held talks and discussions are C&A, Bestseller, H&M, M&S, VF, PVH, KIK, Primark, Tesco, Decathlon, Arcadia Group, Next, New Look, Asda/George, OVS, K-Mart and Target Australia, Camieu, La Halle, and Ny Gard.