Deadline extended to apply for cash assistance against exports

The Bangladesh Bank has extended the deadline to apply for cash assistance by 45 days as many exporters have failed to submit their applications due to the Covid-19 pandemic.

The Foreign Exchange Policy Department of the central bank issued a circular on Tuesday, stating that exporters may apply for the assistance until the first week of December.

The circular also said all other directives of the department regarding cash assistance against exports would remain unchanged.

In this regard, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Rubana Huq told The Business Standard, "It will help the manufacturers affected by the novel coronavirus pandemic."

For the 2019-20 fiscal year, the government has allocated Tk6,625 crore cash assistance against 37 export sectors. In the 2018-19 fiscal year, Tk4,000 crore was spent in this sector.

From the beginning of the last fiscal year (2019-20), export income was on the decline. The outbreak of the pandemic in Europe and the US earlier this year had a negative impact on export earnings.

In the 2019-20 fiscal year, the export earnings stood at $33.67 billion, decreasing by about 17% percent as compared to the previous fiscal year.

Following the first quarter of the current 2020-21 fiscal year (July-September), export earnings now stand at $9.89 billion. The amount increased by 2.58% compared to the same period of the previous fiscal year.