Body to recommend recession remedies

The government has formed a nine-member committee to make
recommendations and assess the extent of losses suffered by the
overall export sector including woven and knitwear due to the global
financial meltdown. A government circular yesterday asked the
committee, led by former finance minister and Chairman of Credit
Rating Agency of Bangladesh M Syeduzzaman, to give its report within
one month. The circular directed the committee to give its report
containing review of the post-recession situation in the export
sector, especially in textile (woven, knitwear and yarn). The
committee has been asked to assess the losses the sector has suffered
due to recession and suggest remedies. In line with the government
directives, the committee will also determine the possible measures
to be taken for the sick industries and make recommendations
accordingly. Bangladesh Bank governor or a deputy governor, Centre
for Policy Dialogue Executive Director Mustafizur Rahman, Policy
Research Institute Executive Director Ahsan Habib Mansur and the
presidents of FBCCI, BTMA, BKMEA and BGMEA are the members of the
committee. The finance secretary has been made member- secretary of
the committee. Before the last Eid-ul Fitr, BGMEA in a press
conference said they would not be able to pay salaries and allowances
to the workers and employees if Tk 3 ,000 crore was not given to
bail out the garment sector. However, the demand drew huge flak. A
meeting of the task force on recession decided last month to form a
committee to review not only the situation in the garment sector but
in the overall export sector. Finance ministry officials said the
committee has been formed in line with the decision. Export growth was
11 percent last fiscal year despite recession, but from the start of
the current fiscal year there have been ups and downs in the export
sector. In the first two months of the fiscal year woven export fell
by 2.06 percent compared to the same months in the last fiscal year.
Knitwear export went down 0.48 percent during the period. In the
budget for the current fiscal year, Tk 5 , 000 crore has been set
aside to provide assistance to different sectors including those
affected by the recession.