Press reports on CPD dialogue titled “Bangladesh’s Garments Sector: Upgradation and Structural Transformation” convened by Centre for Policy Dialogue (CPD) in association with the DFID-ESRC Growth Research Programme (DEGRP) on Thursday, 20 February 2014.
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Published in The Financial Express
Time for RMG to transform itself
FE Report
Economists, industrialists and politicians called Thursday for transformation of the garment industry and increasing its productivity to overcome the challenges the sector faces.
They also observed that a successful transformation can not only enhance the competitiveness of the country’s readymade garment (RMG) sector in the global clothing market but also make it more sustainable.
The call was made at a dialogue on “Bangladesh’s Garment Sector: Upgradation and Structural Transformation” organised by Centre for Policy Dialogue (CPD) at a city hotel.
Distinguished Fellow of the CPD Dr. Debapriya Bhattacharya moderated the roundtable discussion where the discussants focused on taking a combined effort by both the government and the industry players in this regard.
Upholding RMG’s contribution to Bangladesh’s economy, UK’s International Economic Development Group of ODI’s Head of Programme Dr. Dirk Willem te Velde said the sector is bigger than the GDP size of 90 countries.
He said amidst challenges, Bangladesh can maintain its market share, upgrade quality and promote structural transformation of the whole industry.
United Nations Industrial Development Organization’s (UNIDO) Development Policy of Statistics and Research Branch Director Dr Ludovico Alcorta said technological upgradation and substitution of labour for capital in textile industry will lead to significant increase in value addition in the medium term and productivity in medium and long term.
He said garments will hit a growth and employment peak soon and its contribution to growth will begin declining in a decade or so. “Diversification away from garments will eventually be necessary to sustain economic growth and employment,” he added.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Md. Atiqul Islam said there is no alternative but to upgrade and transform the industry to overcome the challenges and cope with the changing pattern of global clothing industry.
Seeking measures from the government, he said the government should create a special fund like Technology Upgradation Fund Scheme (TUFS) scheme in India for providing planned support for modernisation of textiles industry in the form of interest reimbursement and capital subsidy.
Former BGMEA president Anwar-Ul-Alam Chowdhury said the government did nothing significant as far as infrastructure and education of the industry concerned.
He said the country has been facing image crisis after Rana Plaza tragedy and fire incident at Tazreen Fashions. “The government should try its best to reduce the cost of the industry and boost the country’s image outside.
Commerce Minister Tofail Ahmed said Bangladesh’s economy has transformed over the last 42 years. The country exported goods worth US$3.80 billion in 1996 when he became commerce minister for the first time.
“Now, the country exports goods worth US$30.50 billion a year. In spite of suspension of GSP facility in the US market, we’ve managed to earn US$273 million in the June-January period of the current fiscal,” he said.
He, however, expressed his firm belief that the industry will be able to overcome the challenges as it did in the past with the help of the government.
Former minister and BNP standing committee member Abdul Moyeen Khan gave full credit to the manufacturers to take the economy to the current level.
“I must rely on you, not on the government in terms of upgradation and structural transformation. You must play the lead role to this effect,” he added.
“Bangladeshi RMG sector is at a crossroad. The sector now needs transformation to keep its growth continuing,” said Dr. Bhattacharya, also Member, International Advisory Committee DFID-ESRC Growth Research Programme.
“This is the time to take a fresh look over the future prospects of the industry; this is the time to find out how we can update the industry and increase productivity,” he added.
He said skill of overall environment of the country’s largest foreign currency earning sector needs to be upgraded to achieve success.
“For achieving this, we need to develop infrastructure like power, gas, roads connectivity and a package of combined state policies,” he added.
Published in New Age
RMG sector at crossroads
Ungradation, transformation required to ensure growth, experts say at CPD dialogue
Staff Correspondent
Experts at a programme on Thursday said that the garment sector in Bangladesh was at a crossroads and it was the right time for an upgradation and structural transformation of the sector to ensure sustainable growth.
At a dialogue organised by Centre for Policy Dialogue, they said the volume of the Bangladesh garment sector was bigger than that of 90 countries in total, but the country’s RMG sector had faced a number of challenges in home and abroad due to recent factory disasters.
‘The need for upgradation and transformation of the garment sector was felt after Rana Plaza building collapse and Tazreen Fashions fire as the two major incidents have created image crisis for the sector across the world,’ CPD distinguished fellow Debapriya Bhattacharya said at the programme held at Ruposhi Bangla Hotel in the city.
He said that the accidents at Rana Plaza and Tazreen Fashions made the stakeholders aware that there should be a transformation and it was the right time for this.
Only raising productivity within garment firms as well as garment sector would not ensure competitiveness, it depends on overall economic capability, Debapriya said.
To enhance productivity of workers is also important for upgradation and transformation of garment sector, he added.
Commerce minister Tofail Ahmed said that structural transformation was needed in the garment sector and the government would extend all-out support for the upgradation of technology.
‘After the Rana Plaza building collapse the government has taken
a number of initiatives to restore its image and a lot of things we have to do in future,’ Tofail said.
He said that Bangladesh had fulfilled most of the conditions for restoring GSP facilities and the conditions which remain unfulfilled would be met by March and a position paper would be sent to the USTR on April 15.
‘If there was no political reason for the suspension of GSP facility, I am hopeful that the facility will be restored,’ Tofail said.
The commerce minister said that the government was business friendly and its priority would be investment and industrialisation.
In the 6th five-year plan the government has taken a plan on product diversification as well as market diversification, he said.
Nikhil Treebhoohun, chief executive officer of Blobal Finance, Mauritius, pointed out seven challenges in the garment sector in Bangladesh including labour management issue, political instability, complicated banking procedures, inefficient customs, autocratic management style, inadequate infrastructure and lack of training.
He suggested to diversify the product range and to improve design capability for upgradation of the sector.
Chris Woodruff, professor at University of Warwick, said despite facing huge challenges the readymade garment sector in Bangladesh had shown tremendous success.
He emphasised on the training of mid-level management.
BNP standing committee member Abdul Moin Khan said that policy was extremely important for the transformation of the RMG sector but unfortunately there was no adequate policy support.
He urged the garment exporters to stop intra-firm competition to grab more orders and said many exporters offered low price for their products to buyers to compete with other exporters.
If exporters stop such practice, they could easily pay Tk 8,000 in minimum wage to workers, Moin said.
Atiqul Islam, president of Bangladesh Garment Manufacturers and Exporters Association, said that to overcome the prevailing challenges in the garment sector like social compliance, productivity, new wages and safety standards, upgradation of the sector was a must.
Many countries are providing incentives to factories for introducing new and green technology but in Bangladesh there is no such fund, he said.
Atiqul demanded that the green technology equipment import should be tax free.
Published in Dhaka Tribune
Dhaka urges Washington to allow duty and quota free access under WTO
Tribune Report
Tofail Ahmed yesterday urged the US authorities to allow duty-free and quota-free access of Bangladeshi products to their market
Commerce Minister Tofail Ahmed yesterday urged the US authorities to allow duty-free and quota-free access of Bangladeshi products to their market in accordance with the decision at the 9th Ministerial Conference held in Bali, Indonesia late last year.
“I hope, the USA would allow duty-free access of Bangladeshi products to their market,” he told a luncheon meeting with the foreign investors in Dhaka, as expected to get back the suspended GSP by the US authorities.
The minister brought forward the decision of the World Trade Organisation (WTO) for the least developed countries (LDCs) when Bangladesh is struggling to get back the generalised system of preferences (GSP) the US authorities suspended for Bangladeshi products to the US market.
He pointed out that the WTO conference decided duty-free access should be given to the LDCs under the Bali package.
At a separate meeting in the morning, Tofail said the country needs to get the duty-free and quota-free (DFQF) access to the developed markets as per the decision of the ministerial meeting.
Sub-Saharan countries are getting such benefit, but Bangladesh is not getting such facilities, he said, apprising that he would raise the issue again at the WTO forum once goes to Geneva for attending any WTO meeting.
Speaking at the luncheon meeting of Foreign Investors’ Chamber of Commerce and Industry (FICCI) at a local hotel, the commerce minister reiterated that unless considered from political point of view, Bangladesh will soon get back the GSP facility in the US market.
He said the government has already fulfilled most of the 16 conditions of the USTR (United States Trade Representative) for regaining the trade preferences, and the remaining conditions will be fulfilled by March next.
Replying to a query, he said in future the government will be very tough in dealing with the troublemakers who resort to violence in the name of political programmes, as it costs everyone — businessmen as well as poor people.
Newly elected FICCI President Rupali Chowdhury, its executive director MA Matin and member Jim McCabe were, among others, present.
Meanwhile, Commerce Minister also attended a seminar on “Challenges of Economic Transformation and Growth: Agriculture and Manufacturing” organised by the Centre for Policy Dialogue (CPD) in the morning.
He said the report on the completion of the 16-point GSP action plan will be sent to the US authorities before April 15. “If politics is not engaged, we’ll get our GSP.”
He said the GSP facility which Bangladesh used to enjoy in the US market is “nothing” compared to its total export to that country. Out of the total export of US$5.56bn to the US, the volume of the GSP-backed exports was only US$30m, he added.
Tofail said despite the GSP cancellation, the country saw export growth so far in the current fiscal year and it will reach US$30.5bn at the end of the fiscal.
About promoting the RMG sector, he said an area in Gozaria in Munshiganj district had already been identified to set up a planned garment city with an estimated cost of Tk800 crore. The government would provide Tk700 crore when the rest amount would be sourced from other investors.
He said there was also an idea of implementing the project under public-private partnership initiative as the government would provide land and the private investors would do the development works.
The commerce minister said there would also be special industrial economic zones in some important areas of the country to facilitate more industries for export diversification.
About promoting the country’s positive image abroad, he said the image was hurt after the Rana Plaza tragic accident, but such industrial accident was not uncommon.
“There was a big accident in the United States at a fertiliser factory,” he said, adding that no accident happened in the past one year after the Rana Plaza building collapse as the government and industry people addressed workers’ safety with utmost priority.
Chiared by CPD distinguished fellow Dr Debapriya Bhattacharya, the seminar was also addressed by senior BNP leader and former Planning Minister Abdul Moyeen Khan and president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Atiqul Islam.
Published in The Daily Star
$30b garment exports hinge on tech upgrade
Analysts also stress improving workers’ productivity
Star Business Report
Bangladesh will not be able to raise its garment exports to $30 billion by 2015 and $50 billion by 2021 without improving workers’ productivity and upgrading technology, analysts said yesterday.
“The garment sector is going through a transition. Its restructure has become very essential,” said Debapriya Bhattacharya, distinguished fellow of the Centre for Policy Dialogue.
“Developing the capacity of workers would play a key role in this restructure and modernisation process. It will strengthen the country’s competitiveness, helping the sector advance further in the coming days.”
His suggestions were endorsed by Ludovico Alcorta, a director of the United Nations Industrial Development Organisation, and Christopher M Woodruff, an economics professor at University of Warwick in the UK.
Alcorta said Bangladesh should focus on technology upgrades not only for the textile sector but also for other potential sectors within the next one decade.
“Since Bangladesh’s economy is growing, the industrial structure has to change,” he said.
Prof Woodruff said Bangladesh is gradually moving up the ladder from low-end to high-end garment segment. “So the country will have to focus more on innovations and increase the productivity rate.”
They spoke at a dialogue on “Bangladesh’s garments sector: upgradation and structural transformation” at Ruposhi Bangla Hotel in the capital.
The CPD, a think-tank, organised the event in association with the DFID-ESRC Growth Research Programme.
Garment exports accounted for 80 percent or $21.5 billion of the country’s total overseas sales of $27 billion in fiscal 2012-13, according to Export Promotion Bureau.
Commerce Minister Tofail Ahmed said Bangladesh needs to go for high-end products as part of its transformation process, as the country has targeted to earn $30 billion from garment exports by 2015 and $50 billion by 2021.
He, however, stressed the importance of low-end products, saying the cheap garments had helped Bangladesh keep up its healthy export growth during the recent economic meltdown.
“The demand for this type of products never goes,” he said.
Bhattacharya said choosing between high-end and low-end products would turn out to be a key important policy decision.
“It’s true that during the recession, the demand for the low-end products did not fall as we have seen in case of high-end products. But with the economic recovery in the developed world, the demand for high-end products will increase again.”
Besides, the competition in the low-end segment will also go up, as Bangladesh is not the only country in the category, Bhattacharya said.
“New countries such as Myanmar are coming in full force, while some African countries will come in the scene with lower wage.”
The availability of gas and electricity has to be increased and swift steps have to be taken to improve roads and sort out traffic jam, he said.
The former ambassador and permanent representative of Bangladesh to the WTO and UN offices in Geneva also called for effective coordination in policymaking.
“This has become more essential after the Tazreen Fashions fire and Rana Plaza building collapse as the twin accidents dented the country’s image.”
On winning back the generalised system of preferences (GSP) from the US, the commerce minister said Bangladesh would meet all the conditions by this March and send a report to the US in April.
Ahmed said the industries are not willing to contribute more than Tk 100 crore out of Tk 800 crore to be needed for setting up the proposed garment village in Gozaria, although the government is giving the land.
Abdul Moyeen Khan, a senior leader of BNP and also a former minister, advised the garment makers to continue technological upgradation and structural transformation on their own.
Khan also said it baffles him how garment entrepreneurs make profit despite borrowing from banks at an 18 percent rate of interest.
Bangladesh is the second largest garment exporter after China. Currently, China’s market share is around 31 percent of the total global garment market of $450 billion, where Bangladesh’s share is 5 percent.
“There is a lot of space for further growth. We have to go through a significant transformation to tap the growth potential,” said Mustafizur Rahman, executive director of CPD.
Atiqul Islam, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), acknowledged that the apparel sector has a significant deficiency in productivity.
He said the minimum monthly wage in Bangladesh is $69, and the productivity of workers stands at 77 percent. On the other hand, Vietnam pays $78 as minimum wage while their workers’ productivity is 90 percent. The minimum wage and the productivity in Pakistan stand at $79 and 88 percent respectively.
“So we have no other alternative to upgrading the industrial process,” he said, adding that the government should set a separate fund for technology upgrades.
Azam Mohammed, an additional commerce minister of Pakistan, said financial assistance is a must for technological upgrades.
He said Pakistan imposes a tax of 0.25 percent on all its exports, with the fund being used for technology upgrades, human resource development and resolving infrastructures deficit.
Anwar-ul-Alam Chowdhury Parvez, a former president of the BGMEA, said regaining the GSP from the US and ensuring workplace safety are the biggest challenges for the garment sector.
He also criticised the inspection standards of international brands and retailers, saying if those are implemented, around 90 percent factories will be shut.
Dirk Willem te Velde, head of programme at UK-based International Economic Development Group, and Khondaker Golam Moazzem, additional research director of CPD, also spoke.
Published in The Daily Sun
Govt going to write to US about progress on GSP issue
Staff Correspondent
The government will send a letter by April 15 informing the United States Trade Representative (USTR) about the progress in fulfilling the conditions tagged to the revival of the generalised system of preferences (GSP) facility on the US market.
Commerce Minister Tofail Ahmed said this Thursday while addressing a dialogue styled “Bangladesh’s Garment Sector: Upgradation and Structural Transformation” at Ruposhi Bangla Hotel in the capital.
“The government has already met most of the conditions and we are hopeful to implement the rest within a short period of time to revive the trade privilege,” he told the meet, arranged by the Center for Policy Dialogue (CPD) in association with the DFID-ESRC Growth Research Programme (DEGRP).
Tofail said Bangladesh, as a least developed country, is yet to get duty-free, quota-free market access on the international market as per the decision of a ministerial meeting of the World Trade Organization (WTO).
“If everything goes right, Bangladesh will get back the GSP facility on the US market in April,” the commerce minister expressed the hope.
“There is no alternative to make the achievements of RMG sector sustainable,” he said, adding that the government is working relentlessly in this regard and it is establishing several more economic zones to facilitate rapid industrialisation.
“To attract the foreign, the government is also planning to provide uninterrupted utility services,” he added.
CDP Distinguished Fellow Dr Debapriya Bhattacharya chaired the dialogue while Dr. Abdul Moyeen Khan, former minister for Science and ICT, spoke as the special guest.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Atiqul Islam, former BGMEA President Anwar-Ul-Alam Chowdhury Parvej, Additional Research Director of CPD Dr. Khandakar Golam Moazzem addressed the function among others.
Dr. Dirk William te Velde, head of programme of International Economic Development Group, ODI, UK, Dr Christopher M Woodruff, Professor, Department of Economics, University of Warwick, UK, Azam Mohammed, Former Executive Director General and Additional Secretary, Ministry of Commerce, Pakistan, Nikhil Treebhoohun, CEO of Global Finance Mauritius and Ludovico Alcorta, Director, Development Policy, Statistics and Research Branch (DPR) of United Nations Industrial Development Organization (UNIDO), were the panel discussants at the programme.
Treebhoohun of Global Finance Mauritius during his presentation said Bangladesh’s RNG sector is facing the problems that Mauritius faced 20 years ago. Emphasising the necessity of transformation of technologies and skill development, he said Bangladesh needs a long-term strategy to ensure sustainable development in the garment sector.
He also outlined some major hindrances that have been affecting the apparel sector here—those include political instability, complexities financing procedures by banks, autocratic-management style and lack of training for the workers.
Prof Dr Chirstopher M Woodruff of University of Warwick told the discussion that Bangladesh is moving toward high productivity layer, but more training and sharing experiences and knowledge are required for ensuring sustainable growth of the apparel sector.
Dr Ludovico Alcorta of the UNIDO said Bangladeshi garment sector is doing better than many other countries, but the county should shift its focus from clothing sector to other industries for a more sustainable economy.
The panel discussants also stressed the need for structural transformation to develop further the apparel sector in Bangladesh.
They also suggested setting up specialised economic zones, adopting modern technologies and to train the workers properly to flourish the apparel sector.
“Technological upgrading and substitution of labour for capital in the textile industry may lead to significant increases in value addition and productivity” said Ludovico Alcort.
Speaking at the discussion, former science and ICT Minister Abdul Moyeen Khan underscored the need for technological adaptation and proper training for the workers.
While addressing the function, BGMEA President Atiqul Islam sought special allocation in the next budget to help restructuring of the garment sector.
Published in The Independent
RMG growth to start declining in decade
CPD roundtable for diversification
Staff Reporter
The readymade garments (RMG) sector in Bangladesh will soon reach the growth and employment peaks and thereafter its contribution to growth will start to decline for a decade or so, according to experts.
“Eventual diversification from garments will be necessary to sustain economic growth and employment,” said Dr Ludovico Alcorta, director of the Development Policy, Statistics and Research Branch (DPR), United Nations Industrial Development Organization (UNIDO). He was addressing a consultation on the DFID-ESRC Growth Research Programme (DEGRP), organised by the Centre for Policy Dialogue (CPD), at a city hotel on Thursday.
Chaired by CPD fellow Dr Debapriya Bhattacharya, the programme was addressed by commerce minister Tofael Ahmed, former minister for Science and ICT for Bangladesh, Dr Abdul Moyeen Khan, executive director of CPD, Prof Mustafizur Raahman, former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Anwar-Ul-Alam Chowdhury Parvez, president of the BGMEA, Md Atiqul Islam, CEO of the Global Finance Mauritius, Nikhil Treebhoohun, Dr Christopher M Woodruff, professor of the economics department at the University of Warwick, UK, Dr Dirk Willem te Velde, head of the Programme International Economic Development Group, ODI, UK, and Dr Khondaker Golam Moazzem, additional research director of the CPD.
Alcorta said technological upgrade and substitution of labour for capital in the textile industry may lead to significant increases in value added (medium-term) and productivity for medium and long term.
Anwar-Ul-Alam Chowdhury Parvez said the RMG sector is facing international challenges due to unprecedented accidents at Rana Plaza and Tazreen Fashion. “We need to upgrade our image through efficiency and building up of capability among workers and investors. The production process requires innovation and it will become less forgiving as the goods will become more complex,” he added.
Dr Christopher M Woodruff said the RMG sector is continuously facing challenges just like any firm in the competitive market, but it should also recognise the tremendous success of the sector. “It may take time to realise the gains. The initial effects may be negative as new ideas will be implemented and old habits will be changed,” he added.
Published in News Today
GSP facility
Govt to send report by Apr 15: Tofail
Commerce Minister Tofail Ahmed on Thursday said the government will be able to meet all the conditions for withdrawal of the cancellation of GSP (Generalised System of Preferences) facilities in the United States by March and send a report by the April 15 deadline, reports UNB.
Most of the 16 conditions of the USTR (United States Trade Representative) for retaining the trade preferences in the US market will be met by March, he said at a seminar on ‘Challenges of Economic Transformation and Growth: Agriculture and Manufacturing’.
Centre for Policy Dialogue (CPD) organized the seminar at a city hotel. Tofail Ahmed said the government will send its report on the completion of the 16-point GSP action plan to the authorities in the US before April 15. “If politics is not engaged, we’ll get our GSP.” He mentioned that the GSP facility which Bangladesh used to enjoy in the US market is ‘nothing’ compared to its total export to that country.
Out of the total export of US$ 5.56 billion to the US, the volume of the GSP facilitated export was only US$ 30 million, the Commerce Minister said.
He said that despite the GSP cancellation, the country saw export growth so far in the current fiscal and it will reach US$ 30.5 billion at the end of the fiscal.
Chaired by CPD distinguished fellow Dr Debapriya Bhattacharya, the seminar was also addressed by senior BNP leader and former Planning Minister Abdul Moyeen Khan and president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Atiqul Islam.
Published in News Today
Major risks to RMG involve restructuring issues: Experts
Major risks to sustainability and steady growth of the country’s readymade garment (RMG) industry involve proper and timely restructuring of this sector, participants at a high-profile consultation said on Thursday, reports BSS.
The participants including policy-makers, economists, industry experts, apparel exporters and representatives of development partners suggested focusing on restructuring issues, which they believe would be more difficult to address than the ongoing and future political crisis.
The participants in their deliberations recommended major agenda for restructuring, putting productivity, quality and compliance issues on the forecourt to make the country’s garment sector competitive and sustainable.
Centre for Policy Dialogue (CPD) in association with London-based DFID- ESRC Growth Research Programme (DEGRP) organised the programme on upgradation and structural transformation of garment sector. Commerce Minister Tofail Ahmed attended the programme as the chief guest where a former minister and BNP leader Abdul Moyen Khan was the special guest.
Commerce Minister Tofail Ahmed said the government has already taken a number of initiatives to help spur growth of the country’s industrial sector including apparel industry. He said besides the Generalized System of Preferences (GSP) in the US, the government would also try to get duty-free access to the developed markets as per the decision of a ministerial meeting of the World Trade Organisation (WTO), which had not been achieved yet. He said a garment city at Gozaria in Munshiganj district and specialised industrial zones at some important areas of the country would be set up to facilitate more industries for export diversification.
Speaking on the prospect and problems of the country’s garment sector, Abdul Moyen Khan said ‘economic issues should overwrite the political issues” for sustainable development. He said the government should also extend proper policy support to the economic sector because good policy is extremely important for economic growth.
Regarding garment sector development, he suggested effective initiatives for increasing productivity, quality and fulfilling compliance issues as those are vital for sustainability of this sector. CDP Distinguished Fellow Dr Debapriya Bhattacharya, who was the moderator of the consultation, said Bangladesh garment sector had successfully faced many risks in the past four decades.
Among those, he said, the sector faced challenge when it entered the quota-free market. There was another challenge from the child labour issue. The global economic crisis also posed a big threat to this sector.
Most recently, Debapriya continued, the political crisis threw a challenge that the sector came through safely. “This indicated that the garment sector would face successfully all other future challenges if those are addressed in a coordinated manner,” he said.
Dr Dirk Willem te Velde, Head of Programme of the International Economic Development Group of Overseas Development Institute (ODI) of the United Kingdom advised the local garment manufacturers to have experiences of other countries like Vietnam and Croatia to improve productivity and quality.
He said besides addressing the compliance issues like workers’ safety and factory standard, productivity should be increased with maintaining quality of produces to compete in the global market.
Professor of the Department of Economics of the University of Warwick of UK Dr Chirstopher M Woodruff said Bangladesh is moving toward high productivity layer, but more training and sharing experiences and knowledge are required for ensuring sustainable growth of the garment sector.
Sharing his experience, a former executive director general and additional secretary of the ministry of commerce of Pakistan Azam Mohammad said Pakistani entrepreneurs had regularly been contributing to a special fund from their export earnings to support sustainable development of industries including apparel sector. He said all exporters of Pakistan contribute 0.25 percent of their export earnings to the fund, which has been playing an important role in the garment sector growth.
Chief Executive Officer of Global Finance of Mauritius Nikhil Treebhoohun said apart from the productivity, quality and compliance issues, apparel industries need to understand the trend of fashion. He said Bangladesh garment industry showed its strength and quality, but inefficiency like low productivity and slow transportation would ‘wipe out’ the prospect.
Dr Ludovico Alcorta, Director for Development Policy, Statistics and Research Branch (DPR) of the United Nations’ Industrial Development Organisation (UNIDO) said Bangladesh garment sector is doing better than many other countries, but the county should shift its focus from clothing sector to other industries for sustainable economy. He said the growth and the return from garment sector would sustain only for the next decade. “The party (for garment sector) would be over in 10 years,” he said and suggested diversification of industries for maintaining economic growth and stability.
President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Atiqul Islam also spoke at the programme when he sought special allocation in the next budget to help restructuring of the garment sector.
Published in Bangladesh Today
Getting back GSP possible if politics not tied up with it: Tofail
Commerce Minister Tofail Ahmed said the government would get back the Generalized System of Preferences (GSP) in the US market if political issues are not tied up with it.
“We all know politics is also there,” the commerce minister told a high profile gathering of policy-makers, economists, industry experts, apparel exporters and representatives of development partners at Ruposhi Bangla Hotel in the capital city on Thursday, reports BSS.
Centre for Policy Dialogue (CPD) in association with London-based DFID-ESRC Growth Research Programme (DEGRP) organised the programme on upgradation and structural transformation of garment sector.