Muhith hints at emergency steps for crisis-hit sectors

Finance Minister AMA Muhith yesterday indicated emergency contingency measures -- beyond budgetary provision -- for the frozen food and other sectors, already affected by the fallout from the global recession.
“Everything does not come from budget,” he told reporters after a meeting with Bangladesh Frozen Food Exporters Association (BFFEA) at the finance ministry.
The minister hinted at the extra-budget relief in response to a question whether the government would consider any support in the next budget for the affected sectors.
The BFFEA delegation, led by its president Kazi Belayet Hossain, demanded government intervention in getting interest-free 'block loan' for five years as they were facing liquidity crisis. They also demanded raising cash incentive on exports from 10 percent to 20 percent to meet the financial problem to some extent.
The delegation said a slowed down demand for the high-value item from importing countries amid recession caused a huge stockpile of frozen food with the exporters, creating a fund flow crisis ahead of the shrimp farming season that begins next month.
“They (frozen food exporters) are more affected than any other export sector,” the minister said. “They want some relief. It has to be done on an emergency basis.”
Muhith said the sector has so far become the worst victim of the recession, while leather, jute, jute goods and apparel sectors were also affected.
Asked if the country's safeguard measures were falling behind the pace of recession's impact on the economy, he said: “I don't think so. It (preparation) is not being delayed in that sense.”