BGMEA urges quick incentives release, soft loan before Eid
Business Report :
Garment exporters have urged the central bank to release of outstanding cash incentives and a Tk1,400 crore low-interest “soft loan” to help factories pay workers’ wages and bonuses ahead of Eid-ul-Fitr.
A two-member delegation of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), led by Senior Vice-President Inamul Haq Khan Bablu and Vice-President Shehab Udduza Chowdhury, submitted a letter to the Bangladesh Bank governor Dr. Ahsan H Mansur during a meeting at the central bank’s office on Tuesday.
BGMEA officials described a ‘deep crisis’ gripping the ready-made garment sector, which accounts for the bulk of Bangladesh’s export earnings.
Shehab said, “Around Tk5,700 crore in cash incentives for the ready-made garment sector remains unpaid.
“We have requested to release the incentive funds quickly so that factories do not face difficulties in paying wages and Eid bonuses.”
In addition, the association has asked for a soft loan equivalent to two months’ wages on easy terms.
According to BGMEA estimates, the sector’s monthly wage bill stands at about Tk700 crore.
That means factories would require roughly Tk1,400 crore to cover two months’ wages – the amount mentioned in the letter as the proposed soft loan.
The BGMEA also called for the reintroduction of loan support under Packing Credit (PC) with the interest rate reduced to 7 percent; increasing the Pre-Shipment Credit Scheme fund from Tk 5,000 crore to Tk 10,000 crore; and extending the scheme’s tenure until 2030.
Shehab further noted that not all factories receive incentives equally. Woven and sweater factories, in particular, receive comparatively lower support, putting them under greater strain when it comes to paying wages.
He added that in February and March, nearly 25 out of 60 days were affected by public holidays and election-related closures. “Paying 60 days’ wages after only 35 working days will be difficult for many factories,” he said.
The governor has assured the delegation that he would speak to the relevant ministry regarding the quick release of incentive funds, according to BGMEA.
Mansur acknowledged the urgency of the situation and said the central bank would take ‘positive steps’ to address the liquidity shortage, with particular focus on prioritising cash incentive releases for SME factories.
Ensuring workers are paid on time to maintain stability in key industrial zones is a top priority for the central bank, he said.
The intervention comes as Bangladesh’s export-reliant apparel sector faces intensifying pressure from global market volatility, underscoring the central bank’s balancing act between financial discipline and safeguarding employment in one of the country’s most critical industries.
