Several exporters of the country鈥檚 readymade garment sector are unable to recover $7.6 million from Russian buyers due to transaction complications, said Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association.
He said that a total of fourteen Bangladeshi readymade garment exporters exported items to Russia, but were unable to recover $7.6 million for more than a year.
He was speaking at a meet-the-press event on contemporary issues in the sector and the upcoming BKMEA election, organised by Progressive Knit Alliance, a contesting panel for the BKMEA election.
A total of 38 candidates, 35 from Progressive Knit Alliance and 3 are independents, will contest for the BKMEA election slated for May 10 for the 2025-27 tenure.
Hatem said that primarily due to transaction complications, buyers in Russia could not pay the amount to Bangladesh.
鈥楾o resolve the issue, we urge that the stuck amount be adjusted against Bangladesh鈥檚 payable dues for the Rooppur Nuclear Power Plant through introducing a barter system,鈥� he added.
It is to be noted that Bangladesh has also been unable to make payments to Russia for the Rooppur Nuclear Power Plant due to transaction complications following US sanctions imposed after the onset of the Russia-Ukraine war.
In economics, a barter system is a method of trade in which goods and services are exchanged directly for other goods and services without using money.
In response to a journalist鈥檚 question, he said that due to the India-Pakistan war, Bangladeshi garment exporters would not face significant losses in sourcing raw materials.
However, border trade will be disrupted for Bangladesh and its other South Asian neighbours, such as Nepal, Bhutan and Sri Lanka, he said.
Hatem, panel leader and also the current president of the BKMEA, said that if they were be elected, they would work to diversify the market for the readymade garment sector, especially to work proactively to explore untapped markets worldwide by reducing dependency on the US and Europe.
He added that they would negotiate with the government regarding the withdrawal of the latest ban on yarn import through land ports, which hampered the country鈥檚 small and medium-sized industries.
He said that they would take necessary steps in collaboration with the government, relevant ministries, and departments to resolve the fuel crisis and ensure an uninterrupted and reliable gas supply to the industrial sector, which would support the sustained growth and development of industries.
鈥榃e will take聽measures to prevent buyers from engaging in unethical practices such as offering low prices, taking products without payment, forcing discounts, and taking delivery of goods without paying through collusion with buying houses, freight forwarders, or shipping lines,鈥� he added.
In cases of order cancellations or similar incidents, they will notify the relevant parties and will disseminate the information widely to ensure awareness and prevent such occurrences.
He also said that they would work to resolve the complexity of HS codes to ensure smoother trade and compliance and to eliminate聽complications聽in importing raw materials and exporting goods under Free of Costs.
鈥榃e will take necessary steps in collaboration with the National Board of Revenue to resolve issues related聽VAT, taxation and exemption for export-oriented factories and聽harassment in various forms related to VAT and Tax,鈥� he added.
BKMEA executive president Fazlee Shamim Ehsan, other panel leaders and manufacturers were also present at the press conference.