Editorial
Helping out recession-hit export sector
Sharpened focus on diverse export destinations
THE government's decision to arrange an additional package of TK 10 billion for the export sector is a commendable one to help out the recession-hit foreign exchange earning business. What is reassuring about this new stimulus is that it will not affect what the business was already receiving under the previously announced economic stimulus by the government in this respect.
Needless to say, the recession-affected economies of the Northern Hemisphere left its negative impact on our export sector. But thanks to the competitive edge of some of our export-based industries, especially the garments sector, that they could survive the initial impact of the shock. But that does not mean that our export sector has remained unruffled by the global economic downturn. However, it is worthwhile to mention that, the garment sector, the major foreign exchange earner through export, has, of late, been complaining of reversals, even though, reports have it that, our major export destinations are slowly recovering from the meltdown.
Against this backdrop, the new stimulus package will certainly go a long way to help the export industries facing difficulties in these hours of need. Now, since over-dependence of our major exports on EU and North American markets has mainly landed us in a degree of uncertainty the provision of 5 per cent cash incentive for industries that will be able to find new export destinations other than US, EU and Canada merits special attention. It is hoped that the export sector will make the most of this special measure.
The other facilities like loan re-scheduling facilities for the garment and the textiles, exemption of the industrial units from paying the licence renewal fee for captive power plants, special benefit for the Small and Medium Enterprises (SMEs) with the additional advantage of getting the 5 per cent cash, payment by government of a part of the power bills due to the SMEs and so on will hopefully deliver the goods to the intended beneficiaries.
The government initiative to stimulate the export sector deserves to be well utilised so that it may earn more foreign exchange and create employment. For we need also to keep in mind that the money for stimulus package in question is being made available for the business in spite of the fact that the government is resource-constrained and has also to meet other more overriding needs relating to poverty alleviation and development.
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