The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) is urging the government to push for a three-year delay in the country's transition from Least Developed Country (LDC) status. This deferral, the group argues, is crucial for helping the ready-made garment (RMG) sector remain sustainable after the graduation takes effect.
Speaking at a roundtable hosted by The Financial Express, titled ‘Business Climate: Reforms, Opportunities, and Challenges Ahead,’ Inamul Haq Khan, Senior Vice President, BGMEA, emphasized the need for the extension. He detailed the needs for several reforms intended to lower the cost of doing business. These included providing low-cost financing for industries and offering special and concessional loans for Small and Medium Enterprises (SMEs) and green initiatives, adjusting tariffs for electricity, gas, and port services and eliminating requirements, such as the bond license needed to open back-to-back Letters of Credit (LCs).
Khan also stressed the importance of improving logistics and regulatory alignment among key bodies: the National Board of Revenue (NBR), Bangladesh Bank, and the ports. He called for a dramatic improvement in the efficiency of the Chattogram port.
Further, Khan pushed for the immediate establishment and operation of the third Floating Storage Regasification Unit (FSRU) to resolve persistent gas shortages.
He also highlighted, export incentives have been cut by over 60 per cent. Although the government had promised alternative support mechanisms, these have reportedly not yet been implemented.
To secure future trade, Khan called on the government to accelerate negotiations for Free Trade Agreements (FTAs) and Economic Partnership Agreements (EPAs) with major partners, including the EU, UK, Japan, Canada, China, India, Korea, Eurasia, and ASEAN countries. Finally, he advocated for demand-driven training and technology adoption programs to boost skills and productivity within the RMG sector.
The event saw several high-profile attendees, including Lutfey Siddiqi, Special Envoy on International Affairs to the Chief Adviser, who attended as the chief guest. Special guests included Md Anwar Hossain, Secretary. Ministry of Science and Technology, and Mohammad Hasan Arif, Vice Chairman, Export Promotion Bureau (EPB). Shamsul Huq Zahid, Editor and CEO of The Financial Express, chaired the session, which was moderated by Shiabur Rahman Shihab, Head of Online and Digital Content, FE.
