RMG subsidies not viable
Giving continuous subsidies to the export-oriented garment
sector will not be viable for the country as much of such
benefits goes to the buyers' end, said Mashiur Rahman, Adviser
to the Prime Minister.
He said if the government increases subsidy by a certain
amount for the readymade garment (RMG) sector, the international
buyers will bargain for less price.
So the manufacturers and exporters will not be benefited
ultimately from the government's initiatives.
The existing high bank interest rate is really a problem for
industrial loan, but if the interest rate is reduced, there will
be less debt financing in the industrial sector. He advised the
industry owners to relocate their factories outside Dhaka to
reduce production cost.
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