Business leaders have planned a meeting with Bangladeshi Prime Minister Sheikh Hasina to inform her of their plight because the majority of companies are having trouble securing a sufficient supply of gas to operate their operations.
As a result, according to industry insiders, many businesses have increased their bank liabilities by ceasing production entirely or by running at a reduced capacity.
Revenue officials have been known to harass businesses by sending demand notifications in an attempt to collect additional revenue, even though these enterprises are not currently operating, they continued.
The leaders of the Bangladesh Textile Mills Association (BTMA), Bangladesh Steel Manufacturers Association, Bangladesh Cement Manufacturers Association, and Bangladesh Plastic Goods Manufacturers and Exporters Association decided at a joint meeting held at BTMA’s Gulshan office.
During this discussion, the industry leaders additionally urged the government to assist the sector survive by bringing the petrol tariff back to its pre-hike level and resolving concerns with the US dollar.
According to others present at the meeting, they claimed that despite promises of a continuous petrol supply and an increase in petrol prices last year, nothing has changed.
They also insisted that measures be taken to shield companies from customs harassment and that the US dollar situation be addressed by the authorities.
Since their operating capital has decreased as a result of the difference in the rates at which the US currency is bought and sold, the dollar crisis issue was also discussed at the conference. They are consequently unable to purchase raw ingredients.
Furthermore, the meeting participants highlighted several difficulties related to customs.
Meeting sources said that because of the acute gas shortage, textile mills’ machinery is being damaged and they are unable to provide the necessary yarn and fabric to the export-oriented apparel industry. Plants that process fabrics are closed because they are unable to operate boilers.
Despite Petrobangla’s assurances of a continuous gas supply following the price increase, the situation of the gas supply has not improved after more than a year.
According to meeting sources, textile millers suggested during the debate that homes utilising natural gas transition to LPG and that CNG-powered cars be converted to LPG.
They also said manufacturing industries have lost 40 per cent of their capital due to exchange losses. Additionally, they need an additional 40 per cent of working capital due to the price hike of gas, electricity, and other fuels.
The business leaders said they need at least 15 years to pay off their forced loans in equal EMIs with a two-year grace period.
Central bank policy support is needed to convert short-term loans to long-term ones and allocate 50 per cent additional working capital to meet additional requirements.
An unnamed business representative stated that Bangladesh must invest in the MMF-based textile sector since the nation will need to complete two stages of value addition following LDC graduation to be eligible for the GSP Plus programme. On the other hand, securing petrol supplies is proving to be difficult for established sectors.