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The
government encourages export growth through measures
such as duty-free status for some imported inputs,
including capital machinery, and easy access to
financing for exporters. Ready-made garment producers
are assisted by bonded warehousing and back-to-back
letter of credit facilities for imported cloth and
accessories. The central bank offers a 25 percent rebate
to domestic manufacturers of fabric for ready-made
garment exports. Exporters are allowed to exchange 100
percent of their foreign currency earnings through any
authorized dealer. Government-financed interest rate
subsidies to exporters have been reduced in stages over
five years. Bangladesh has established Export Processing
Zones (EPZs) in Chittagong and Dhaka, and has plans to
open two more. The government in late 1996 gave the
private sector the authority to build and operate
private export processing zones; Korean investors have
come forward with a plan for the first private EPZ,
although progress has been slow.
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General Section
