The Garments of Recession
April 29, 2009
The worldwide financial crisis has greatly affected the economic, financial, social and even cultural sectors of the world and Bangladesh is going to fall victim to this global financial distress being largely dependent on its revenue from the garments’ industry. Though the economy of Bangladesh is not closely integrated with the global economy, necessary steps should be taken immediately to combat the upcoming financial turmoil. Read more
Financial derivatives and garments industry
April 29, 2009
Financial derivatives have revolutionised mathematical and practical finance. The 1973 seminal paper of F Black and M Scholes has created, within a few decades, what is literally a multi-trillion dollar derivatives market. Derivatives have vastly expanded the domain of finance and created many new opportunities for economic growth. Derivatives play a key role in optimising the utilisation of assets, minimising risks and maximising returns on investments.
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Knitwear makers urged to be more competitive
April 29, 2009
The finance adviser has asked the knitwear manufacturers to become more competitive to sustain in the world market. “The industry itself has to sustain in the competitive world market by exploring new avenues, improving quality of products and enhancing labour productivity,” Dr AB Mirza Azizul Islam told a programme in Dhaka yesterday. The suggestion came when a possible fall of knitwear exports is apprehended due to end of the European Union embargo on China from January 2008. Read more
RMG exports slow in crisis
April 29, 2009
The average month-wise exports of ready-made garment (RMG) products slowed in February, compared to the previous month of this fiscal year, because of the ongoing global recession, the latest data of Export Promotion Bureau shows. The February earning from woven exports came down to $532.80 million, with an 11.47 percent rise from January’s $584.24 million. January’s growth figure was 18.66 percent. The knitwear exports in February also slumped to $466.71 million from $562.94 million in January. The state-run export promotional agency showed 2.56 percent growth in February, while it was 21.22 percent in January, compared to the figures in the same period a year earlier. Read more
Editorial Stimulus package and the recession
April 29, 2009
ON Sunday the finance minister (FM) announced the much awaited “stimulus package” — Tk.3,424 crore instead of the Tk.6,000 lobbied for by the FBCCI — covering the agriculture, power, and export sectors. Tk.450 crore is earmarked for three export sectors, Tk.1,500 crore for farm subsidy; Tk.600 crore for power sector, Tk.500 crore for agricultural loan recapitalisation facility, and Tk.374 crore as reserve for the social safety net. Some leaders of the RMG sector were disappointed. They shouldn’t be. Read more
Data shows exports up amid global slowdown
April 29, 2009
The country exported merchandise products worth US$ 11633.57 million in the first three quarters of the current fiscal year, registering 14.50 per cent growth over the same period of the last fiscal year. During July-March period of the 2007-08 fiscal local exporters shipped out export products worth $10159.78 million. Powered by readymade garment exports, which accounted for more than 76 per cent annual export, local exporters fetched $1280.49 million in last March, national board of revenue and export promotion bureau officials said Tuesday. Read more
Black Funds Could Make ‘Light’ Funds: FBCCI
April 27, 2009
Business leaders have again called for a provision to legalise undeclared income, this time suggesting that black funds could be transformed into ‘light’ funds. FBCCI president Annisul Haq called on Saturday for formation of a Bangladesh Power Fund by allowing black money to be circulated through special bonds. “The power crisis has reached alarming proportions,” head of the country’s apex business body told reporters at the FBCCI office. Read more
Low-cost Rice For Garment Workers From May 1
April 27, 2009
The government will start selling cheaper rice to 30 lakh garment workers from May 1 as textile exporters reel under the global financial meltdown, the labour minister says. Khandaker Mosharraf Hossain said Wednesday after a meeting with a BGMEA delegation that they would sell the staple to workers, mostly women, at Tk 18 a kg against the retail price of Tk 24. BGMEA gave a list of 30 lakh garments workers to the food ministry for allotment of rice for them under Open-Market Sale programme.
April 27, 2009
Bangladesh Garment Manufacturers and Exporters Association has claimed that the vast majority of ready-made garment units pay their workers on time. “I would like to assure you that almost 95 percent of garment factories pay their workers better than just the minimum wage and they do so diligently every month without fail,” BGMEA chief Anwarul Alam Chowdhury Parvez said Wednesday. “Similarly about 95 percent people of the workers are not rioting on the streets but are peace-loving and hardworking people,” added the BGMEA president, speaking at an iftar party at the city’s Westin Hotel. Read more
New BGMEA Chief Seeks Govt Support To Survive Recession
April 27, 2009
The new BGMEA president has said the $11 billion readymade garment industry needs the government’s support to deal with the aftermath of the global financial meltdown. Abdus Salam Murshedi told bdnews24.com on assuming the new office after an annual general meeting that he would strive to safeguard the industry, one of the top forex earners. “Garment manufacturers need governmental support ranging from financial assistance to determining policy to avert negative impacts of the recession,” said Murshedi, a former soccer star. Read more