BGMEA seeks export incentive funds to pay workers before Eid

Garment factory owners yesterday urged Bangladesh Bank (BB) Governor Ahsan H Mansur to release export incentive funds so factories can pay workers’ wages and bonuses ahead of Eid-ul-Fitr.

Leaders of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) made the plea during a meeting at the BB office in Dhaka, warning that delayed disbursements are pushing factories into a severe liquidity crisis.

A large number of applications for cash incentives remain pending due to complexities in lien bank and central bank audit processes.

Around Tk 5,700 crore in textile and garment sector incentives remain unsettled in the ongoing fiscal year 2025-26, BGMEA said in a press statement, urging priority disbursement for small and medium-sized enterprises (SMEs) based on a list it has already submitted.

The association also requested special loan facilities equivalent to two months’ wages to help factories meet Eid obligations -- repayable within 12 months with a three-month grace period.

The BGMEA also called for the reintroduction of loan support under Packing Credit (PC) with the interest rate reduced to 7 percent; increasing the Pre-Shipment Credit Scheme fund from Tk 5,000 crore to Tk 10,000 crore; and extending the scheme’s tenure until 2030.

The association’s leaders told the BB governor that the garment industry is under significant strain from falling global demand, declining export prices, rising production costs, and geopolitical uncertainty.

The situation was compounded this month as public holidays around the national parliamentary elections and Language Movement Day reduced effective working days in the 28-day month to just 19, disrupting shipment schedules and squeezing factory finances further.

Under these circumstances, paying workers’ wages and bonuses on time ahead of Eid-ul-Fitr has become a major challenge for entrepreneurs, the BGMEA statement said.

Ensuring timely payment of workers’ dues is critical to maintaining stability in industrial areas and broader economic discipline, it noted, adding that swift policy action from BB is essential to protect the sector, its workers, and the wider economy.

The meeting was attended by BGMEA Senior Vice President Inamul Haq Khan and Vice President Md Shehab Udduza Chowdhury.