She was inaugurating the 16th annual Bangladesh Apparel and Textile Exposition (Batexpo) 2005 at the Sonargaon Hotel organised by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

Referring to the resolution of conflicts among three major trade bodies--BGMEA, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and Bangladesh Textile Mills Association (BTMA)--in the readymade garment (RMG) sector, she said it is a welcome move that these trade bodies are now united and working together to face the challenges to survive in the global market.

"The current global situation is not in favour of the developing countries. So, we have to go through a tough open market regime when there is no option but to be efficient, skilled and professional," she said.

Focusing on the present market trend, she urged the entrepreneurs and exporters to identify the reasons why the target in exporting woven products could not be achieved and growth in the knitwear items has slowed down.

The PM lauded the BGMEA for its efforts to organise an international event like Batexpo, which has a very positive impact on flourishing the garment industry of the country.

Commerce Minister Altaf Hossain Choudhury said the commerce ministry has set up two task forces to address the issue of social compliance raised by foreign buyers and union leaders. The ministry has also set up a committee to make suggestions on how the sick industries can be made operational again, he added.

Adviser of Commerce Ministry Barkat Ullah Bulu said the garment factories in Bangladesh are facing tremendous pressure to comply with safety and security issues. It is possible to generate six lakh jobs if the sick RMG units are revived.

Finance and Planning Minister M Saifur Rahman was also present at the inauguration programme.

BGMEA President Annisul Huq said the making charges in the garment sector have gone down by 40-50 percent following the quota phase-out.

The buyers shift their orders to other countries if the shipment is delayed by a single day, he said, adding that the compliance issue has also become all-important, which is pushing the cost substantially.

He mentioned that the woven garment export to the EU market was 70 percent of the total export a few years back, but now it has come down to 43 percent.

The BGMEA president urged the government to rethink the issues, such as establishing a central bonded warehouse, Saarc cumulation and greater regional cumulation, to increase exports to the EU again.

Annisul Huq regretted that although a national coordination council was set up, some of its recommendations gather dust.

BGMEA vice-presidents Anwar-Ul-Alam Chowdhury and Md Shahidul Islam also spoke on the occasion.