The Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) on Tuesday requested the interim government to release the outstanding instalment of cash incentives worth TK 7,000 crore by the 15th of Ramadan.

The trade body for the knitwear subsector argued for the immediate release of the cash incentive instalment, stating that delays could cause serious disruptions in export-oriented sectors, especially the textile and garment industry.

BKMEA president Mohammad Hatem made the plea in a letter sent to the finance secretary on Tuesday.

In the letter, the BKMEA leader said that until March this year, incentive claims worth about Tk 7,000 crore in export subsidies or cash assistance had been submitted to the central bank for the fiscal year 2024-25.

Hatem urged the Finance Division to take special measures to release the funds within the shortest possible time, preferably by the 15th of Ramadan, before Eid.

He said that the readymade garment industry had been going through a tough time due to a number of challenges, including the changed political situation.

The prolonged labour unrest in various industrial zones has severely disrupted production, leading to factory closures and an abnormal rise in production costs, Hatem said.

‘But to maintain buyers’ confidence in the country’s export industry, RMG entrepreneurs have been forced to accept work orders at prices lower than the actual production costs in many cases,’ he said.

Despite an increase in orders, many factories are facing a liquidity crisis, he said in the letter, highlighting the increasing pressure of wage and festival allowance payments ahead of Eid.

He warned that failure to make timely payments could lead to renewed labour unrest in the industrial sector and sought government support, which is crucial for maintaining stability in the sector.

Meanwhile, a commerce ministry report revealed that around 500 RMG factories are at risk of unrest over the payment of wages and festival allowances ahead of Eid-ul-Fitr.