Law and order buyers’ main concern

Businesspeople yesterday expressed deep concern over the security of their factories and trade, apprehending that a lack of law and order would prompt foreign buyers to shift work orders to other countries.

"The main concern of the buyers is law and order, which has been discussed with the (finance) adviser (of the interim government)," said AK Azad, a former president of the Federation of Bangladesh Chambers of Commerce and Industry.

He was talking to journalists after a delegation of garment manufacturers made a courtesy call on Finance Adviser Salehuddin Ahmed at the Economic Relations Division (ERD) office in Dhaka yesterday.

According to Azad, it takes seven to 10 days to collect samples from the airport once they arrive from abroad while the Chattogram port is plagued with container congestion.

If these types of bottlenecks are not resolved and law and order not restored, buyers will think of alternatives, he said.

He said word was going around that the interim government would withdraw the export development fund alongside cash incentives for exports and impose duties on fabric imports.

This will negatively impact exports of garment manufacturers who need to import fabrics for use as raw materials, and some factories will have to shut down, Azad said.

Meanwhile, extortion at factories and business establishments has increased alarmingly, he added.

The finance adviser assured he would sit with the Bangladesh Bank governor and finance secretary to resolve the problems and hold a follow-up meeting to discuss reviews of the delegation's recommendations, he added.

Salehuddin Ahmed also recommended that the leaders of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) stay alert over labour-related issues, such as trade unions and wages while ensuring due diligence in labour rights and environmental protection.

The adviser acknowledged the garment industry's significant contributions to poverty alleviation, investment and employment generation and women's empowerment, Azad said.

The BGMEA also sought a soft loan of about Tk 1,800 crore to Tk 1,900 for garment manufacturers.

"Our factories could not run for around 17 days due to the changing situation of the country. A crisis might arise next month," said Khandoker Rafiqul Islam, president of the BGMEA.

"So, we requested our adviser to provide a soft loan, which will be paid back with interest within a year," he added. "We are yet to decide on an exact figure. But we roughly estimate that the amount required could be Tk 1,800 crore to Tk 1,900 crore."

"We are optimistic of the sector's development if we can work with this government," he said.

"We also gave him (Azad) assurance that when normalcy returns, Bangladesh's exports will quickly be back on track. We all have to cooperate so that foreigners can put their trust in Bangladesh's readiness," Islam added.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said they highlighted the high margins for letters of credit charged by six Islami banks alongside harassment by the National Board of Revenue.

He acknowledged that there is a lack of confidence among foreign buyers.

The discussion was very fruitful, said British High Commissioner to Bangladesh Sarah Cooke, who also took part in the meeting.

"We're very keen to expand our trade and investment ties. We also discussed how the UK can support, and how we may work together, to bring our experts together to discuss issues of economic reform," she said.

"Of course, we'd like to see more foreign direct investments from the UK in Bangladesh," Cooke added.