News / Uproar as Bangladesh government cuts apparel subsidies

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Bangladeshi apparel factory owners fear an economic catastrophe, following the government’s decision to withdraw cash incentives for five garments items which account for 55% of the industry’s total exports.

In addition, the rates of cash incentives in the case of other apparel items have been halved from 1% to 0.5%, effective from January 1, 2024.

The government has also lessened subsidies for other export items too, ahead of Bangladesh’s scheduled graduation from least developed country (LDC) status to developing country status, in ...