The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has called upon the International Finance Corporation (IFC) to support Bangladesh’s RMG industry with soft finance especially for the development of backward linkage industries, capacity building in manufacturing value-added non-cotton products and technological upgradation.
The request was made when newly appointed IFC’s Country Manager for Bangladesh, Bhutan and Nepal, Martin Holtmann, paid a courtesy visit to BGMEA President Faruque Hassan at the latter’s office in capital’s Gulshan on Sunday.
BGMEA Directors Tanvir Ahmed and Inamul Haq Khan (Bablu), IFC’s Senior Country Officer Nuzhat Anwar, Principal Investment Officer Ehsanul Azim and Investment Officer Farjad Siddqui were also present at the meeting.
They had discussions over different issues of the apparel industry including its strides in the areas of workplace safety, environmental sustainability, and workers’ wellbeing.
The future priorities of Bangladesh’s garment industry, especially more focus on diversification in products, market and innovation in product development and process optimization were also discussed during the meeting.
BGMEA President Faruque Hassan highlighted the need for investment in the backward linkage industry to develop own capacity since Bangladesh will have to face the double transformation rules of origin in the post-LDC era.
The industry is also giving priority to shifting from cotton to value-added non-cotton products including technical textiles and the move will require technological upgradation and skills development in the sector, he said.
The BGMEA President urged the IFC to provide soft loans for investment in the backward linkage industries, technological upgradation and innovations.
He also laid emphasis on financing SMEs who are mostly in need of low-cost fund as they often cannot avail regular financing schemes due to stringent due diligence.
