Ministry moves to speed up execution of second stimulus

The finance ministry yesterday asked related agencies to implement the decisions of the second stimulus package for the export sector.

The ministry also decided to allocate the promised Tk 2.6 crore to Bangladesh Energy Regulatory Commission to pay licence renewal fees for captive power generators used in the export-oriented industrial sector, the government said in a statement.

According to recommendations by a committee headed by the director general (DG) of the monitoring cell of the Finance Division, the government will pay the bills for captive power generators used in textiles and ready-made garment sectors from November 2009 to June 2010 from the stimulus package for the current budget.

The ministry formed the DG committee on April 7 after a meeting with leaders of Bangladesh Garment Manufacturers and Exporters Association and Bangladesh Knitwear Manufacturers and Exporters Association, to speed up implementation of the second stimulus package announced on November 25.

The finance ministry dispelled confusion over the definitions of new markets and new products, as the government had earlier declared in the second stimulus package that exporters would be given benefits for new export destinations and new products.

In the statement, the finance ministry said it would consider any foreign destination, except USA, Canada and EU, as new markets. The ministry will also consider the direct export of yarn from the member mills of Bangladesh Textile Mills Association as new products.

The central bank may consider a 10 percent rate of interest on loan rescheduling for textiles and RMG entrepreneurs, it added.

The ministry will also give a 5 percent export incentive for the clothing sector for small and medium entrepreneurs on exports worth $3.5 million or above in fiscal 2009-10.

Small and medium entrepreneurs who do not use their own captive power generators will also be able to enjoy incentives of 10 percent on power bills.

They will also be able to enjoy the bank loan rescheduling facility.

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