Bangladesh readymade garment (RMG) manufacturers recently requested the government to remove restrictions on sourcing raw materials free of cost (FOC) from local suppliers.

While exporters are now allowed to import raw materials from abroad on an FOC basis under a recent policy change, such a provision does not exist for sourcing the same materials locally, industry leaders said.

Bangladesh RMG players have urged the government to remove restrictions on sourcing raw materials free of cost (FOC) from local suppliers.
Industry leaders said allowing FOC sourcing from domestic suppliers would boost local sales, strengthen backward linkage industries and raise overall value addition in the export-oriented sector.
Many local suppliers can provide inputs now against global orders.

They feel allowing FOC sourcing from domestic suppliers would boost local sales, strengthen backward linkage industries and raise overall value addition in the export-oriented RMG sector.

In a letter sent recently to the National Board of Revenue (NBR), the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) called for removing policy barriers and providing clarity on the issue, according to a domestic media outlet.

Many local suppliers are now capable of providing inputs against international buyers’ orders. In some cases, foreign buyers or their nominated agents are willing to supply materials free of cost through local vendors for use in export production.

However, the absence of clear policy guidelines on whether such transactions qualify as ‘deemed exports’ has created uncertainty, preventing manufacturers from using locally sourced FOC inputs.

Allowing exporters to use locally-sourced inputs under a cutting, making and trimming (CMT) model would further streamline production, BKMEA said.

Fibre2Fashion News Desk (DS)

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The International Monetary Fund (IMF) will continue to support countries in their efforts to promote stability and growth, including through sound macroeconomic policies, domestic resource mobilisation and better governance, with specific attention to low-income and vulnerable countries, Mohammed Aljadaan, Minister for Finance of Saudi Arabia and chair of its International Monetary and Financial Committee (IMFC) said at the 53^rd meeting of the committee.

Such countries include fragile and conflict-affected states and small developing states, especially where debt and financing pressures are mounting, he noted in his statement.

The IMF will continue to support countries in their efforts to promote stability and growth, including through sound macroeconomic policies, domestic resource mobilisation and better governance.
The chair of its International Monetary and Financial Committee said this support will include specific attention to low-income and vulnerable countries.
The committee called for enhanced debt transparency.

“We remain committed to further improving debt restructuring processes, including under the Common Framework, building on the progress already achieved, and advancing the work at the Global Sovereign Debt Roundtable (GSDR) to ensure debt restructurings are delivered in a predictable, timely, orderly and coordinated manner,” he said.

The committee called for enhanced debt transparency from all stakeholders, including private creditors.

“We will advance structural reforms to enable private sector-led investment, increase productivity, safeguard energy security, and elevate medium-term growth prospects,” added Aljadaan.

Fibre2Fashion News Desk (DS)