Bangladesh Garment Manufacturers and Exporters Association (BGMEA) wants to see the next budget as investment and jobs-friendly.

Nasir Uddin Ahmed, industrialist and first vice-president of BGMEA, made the observation regarding the upcoming budget.

In an interview with Banglanews24.com he also underscored the need for capacity building to develop labour-oriented industries.

Establishment of a Large Taxpayer Unit in Chittagong, duty waiver in export-oriented ready-made garments (RMG) produced in factories outside Export Processing Zones (EPZs) are some of the recommendations made in a budget proposal submitted by BGMEA, Nasir Uddin said.

The industries set outside of EPZs have to invest a lot whereas the industries set in EPZs do not need to spend much.

Moreover, the factories in EPZs are getting the utility facilities like electricity, water, gas which make a big difference.

He, however, showed his dissatisfaction over the increase in electricity price, saying that RMG sector is competing in the global market.

“If the price of electricity is increased, we will not be able to compete with other countries,” he said.

He proposed the government to keep the price of dedicated electricity within Tk 10 per unit.

He suggested for withdrawal of Value Added Tax (VAT) on rents of factory buildings.

He also criticised the interest rate set by the banks, demanding that it should be kept in a single-digit.

“Establishment of industrial village outside of town is a must,” the business leader said, adding, “Businessmen can’t come up with new investment in absence of industrial plots.”

The RMG factories developed in a scattered condition are recommended to be placed in the industrial park.

Women in the rural areas will get work opportunities if the industrial park is situated outside of the city, BGMEA leader said, adding that it would contribute to huge employment generation.

Establishment of dormitories to address accommodation crisis and training centres to enhance skill workers is also recommended.

“There is a scarcity of at least 1 million workers in the RMG sector,” he said, adding that required number of training centres would help fill up the shortage.

Therefore, interest-free loans should be sanctioned to the owners of RMG factories in the upcoming budget to build dormitories and training centres, he added.

He, however, suggested the initiatives can be taken under Public-Private Partnership (PPP).