The exporters feared that the knitwear sector, which is faced with severe fund constraints, would fall victim to another labour unrest in case of any failure in paying wages to the workers before the next festival, Eid-ul-Azha.

The BKMEA leaders placed their demands when they met Finance Adviser Akbar Ali Khan at his office.

Assuring the knitwear exporters of taking necessary measures to release the incentive funds, the finance adviser asked the finance secretary to ensure such financial assistance on the government's part.

Akbar Ali also made a directive to the high profile committee on apparel sector for taking the issue into consideration.

Talking to the Daily Star, BKMEA President Fazlul Haq said, "We are facing financial crisis as country's export-import activities came to a halt in the last few days due to the political turmoil."

"We urge the finance adviser to release at least Tk200 crore immediately so that we pay the workers' wages and bonus before eid", he said, adding that they are eventually falling in fund crisis because the government has adopted a dilly-dallying tactic to give the cash incentives to the sector.

The garments sector incurred a huge loss due to the labour unrest in May 2006. The government earmarked 5 percent cash incentives in the budgets of 2005-06 and 2006-07 financial years for the knitwear sector.

The total due of cash incentives for eligible applicants of the knitwear sector stands at Tk500 crore, according to Bangladesh Bank.

During the meeting with the finance adviser, the leaders of the apex trade body of the knitwear sector also asked not to cut advance income tax, as the major portion of the cash incentives had become due before the 2006-07 budget came into effect.

The budget of the current fiscal imposed a provision to cut 5 percent advance income tax from the cash incentives.