Prime Minister Sheikh Hasina today announced
continuation of incentives in leather sector for at least five more years
aimed at achieving the desired export target of the leather and footwear
industry.
“The incentive in leather sector will be continued for at least five more
years with a view to achieving the desired export target from the leather and
footwear industry,” she said.
The prime minister was addressing while inaugurating the third edition of
three-day Bangladesh Leather Footwear and Leathergoods International Sourcing
Show (BLLISS), 2019 at Bangabandhu International Conference Centre (BICC)
here this morning.
Noting that as part of export diversification, leather sector is being
defined as the priority one in the economy and National Industrial
Development Strategy, she said “Our government, in its last two tenures, has
taken various initiatives such as giving policy support and incentives for
development of the leather and footwear industry.”
“Due to the initiatives taken by our government, 82 percent of foreign
currency is coming from export of leathergoods and footwear in leather sector while
factories in this sector is mushrooming alongside increasing the interest of
investing money to this end,” she continued.
She, however, mentioned that king share of foreign currency would come
from export of leathers as raw material a decade ago.
The premier hoped that the country will definitely achieve the target of
earning foreign currency of US $ 5 billion by 2022 from export of leather
goods, which is now $ 1.2 billion.
“If we can export our entire raw leather products by making those finished
ones, we will be able to easily earn US $ 5 billion foreign currency from
this sector by 2022,” she added.
The Ministry of Commerce and the Leathergoods and Footwear Manufacturers
and Exporters Association of Bangladesh (LFMEAB) have jointly organised the
event to attract more investment in the leather sector.
Commerce Minister Tipu Munshi, Chairman of its Parliamentary Standing
Committee Tofail Ahmed, PM’s Private Industry and Investment Adviser Salman
Fazlur Rahman, Commerce Ministry Secretary Dr. Md Jafar Uddin and LFMEAB
President Saiful Islam spoke on the occasion.
Ministers, parliament members, diplomats, dignitaries and the leaders of
different trade bodies were also present.
An interactive audio-video presentation on various sides of the past,
present and the future of Bangladesh’s leather sector was screened at the
function.
Stating that the leather goods and footwear industry has become the second
largest export earning sector in the last decade surpassing jute and jute
products’ export earnings, Sheikh Hasina said “This sector attained second
position in the volume of export earning only after the readymade garments.”
The premier called upon the foreign investors and buyers attending the show
to invest in Bangladesh in larger scale, saying “Make investment in
Bangladesh particularly in leather sector as many countries would not be able
to give facilities, Bangladesh is now offering for foreign investors.”
In this regard, she said “Bangladesh offers cheapest labour facilities and
proper training is also being given to them”.
She said the move was taken to boost local and foreign investment in the
leather sector and make it sustainable.
Stressing the need for bringing diversification in leather goods to
increase export, Sheikh Hasina said the entrepreneurs will have to develop
new products and explore new export markets.
In this regard, she assured them of providing necessary assistance from the
government.
The premier said an environment-friendly leather industrial estate has been
set up in Savar for flourishing the leather sector.
Praising the organizers for arranging the show for the third time in the
country, the prime minister said it would attract more foreign investment in
Bangladesh’s leather footwear and leather goods industry sector as well as
create huge enthusiasm among the investors.
“It will also help the entrepreneurs around the world know about the
government’s policy assistance and patronization alongside project quality
and standard of Bangladeshi leather goods and footwear products before the
world community,” she said.
Mentioning that her government has relocated the tannery industries in
Savar from Hazaribagh, Sheikh Hasina said “There will have allocation of at
least 150 acres of land in the extended project of Leather Industry City in
Savar for setting up composite leather products and footwear factories by
following international standards and Leather Working Group (LWG)
certification.”
She however said equal opportunities and policy supports will be ensured
for all export sectors as all discriminatory barriers will be removed.
Sheikh Hasina said her government has created scope so that businesspersons
can do businesses. “The government is not doing business. So, I always
believe that businesspersons will do business,” she added.
The premier said over the last 10 years, Bangladesh economy has
progressed. “We have established a smooth communication network with
neighboring countries where we can find huge markets of our products,” she
said.
One hundred Special Economic Zones are being established to attract local
and foreign investment and 12 of those have already been completed, she said.
“Once the economic zones are completed, huge local and foreign investment
will be attracted,” she opined.
The prime minister went on saying that the government has made constant
stride for country’s industrial development as well as encouraging
agriculture.
Laying importance on enlarging the country’s export basket, the premier
said the government is giving incentives to many sectors to boost export.
She urged the LFMEAB leaders to join hand with the government to achieve
its goal in building Bangladesh as a middle-income country by 2021 and a
developed one by 2041.
Spelling out basic achievements of her government in the last 11 years, the
premier said the world now considers Bangladesh as development miracle.
“Our export revenue was US $ 10.5 billion in FY 2005-06, which increased to
over $46 billion in FY 2018-19 while our per-capita income has surpassed
$1,909 and the GDP growth rate for the current financial year is estimated at
8.2 percent,” she said
Referring to the latest GDP ranking of the IMF, she said “Bangladesh is the
29th largest economic country in the world in terms of PPP.”
Bangladesh ranked the highest growth nation among the countries of Asia and
the Pacific according to the latest figures from the Asian Development Bank,
she informed.bss