Stakeholders in the RMG sector stated that the industry has vigorously pushed for an end to the deferred payment system in exports, which disproportionately advantages buyers and puts exporters at undue risk.
The Economic Reporters’ Forum (ERF) auditorium in the capital recently hosted a seminar and book launch event named Bangladesh RMG and Sustainable Development, where these opinions were shared.
Citing the method as unduly hazardous for exporters, they have demanded that the Bangladesh Bank issue a directive prohibiting its utilisation.
The Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) executive president, Muhammad Hatem, emphasised that under this arrangement, purchasers import and conduct business for lengthy periods of time—six to seven months—before making payments.
“Among the buyers, if someone declares himself bankrupt under Chapter 11, the manufacturers of the country will be mainly affected by this decision which is very risky for us,” he added.
He urged Bangladesh Bank to halt this circular arrangement, which he claimed also heightens manufacturing rivalry within the company and endangers the sector.
