December-2009
 

 

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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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