BB eases import rules to boost industrial investment

Business Report :

In a move aimed at accelerating industrial expansion and encouraging new investment, Bangladesh Bank has further relaxed regulations for importing capital equipment, allowing industries to bring in machinery on a three-year usance basis without requiring prior approval from the bidder.

The central bank issued a circular on Wednesday announcing the revised guidelines, which were approved at the 186th meeting of the Foreign Loan/Supplier Credit Scrutiny Committee of the Bangladesh Investment Development Authority (BIDA). The meeting was chaired by Bangladesh Bank Governor Dr. Ahsan H. Mansur.

Previously, the three-year usance facility a deferred payment system that gives importers extended time to pay, was available only for capital machinery. Under the new directive, the same facility is being extended to a broader range of industrial equipment.

According to Bangladesh Bank, industries will now be able to import ships, heavy machinery, and specialized industrial equipment under this relaxed rule, significantly reducing the need for advance foreign currency arrangements.

Industry insiders say the decision will simplify import financing, ease pressure on cash flow, and help businesses implement investment and expansion plans more efficiently. Many manufacturers, especially those in export-driven sectors like garments, leather, shipbuilding and light engineering, have long argued that rigid approval requirements were slowing technological upgrades and deterring foreign suppliers. The new guidelines, they say, will help improve delivery timelines, open up competitive pricing options, and attract more global vendors willing to supply on deferred payment terms.

Stakeholders believe the move could also encourage joint ventures and foreign investment, as easier equipment import rules typically create a more predictable business environment. Some analysts noted that this relaxation comes at a time when industries are trying to recover from disruptions caused by dollar shortages and rising production costs. Bangladesh Bank said it expects the long-term import flexibility to “play a positive role in speeding up industrialization” by reducing procedural delays and removing barriers that previously discouraged investment.

With the policy shift, the central bank aims to inject momentum into the country’s manufacturing and export sectors, which have been seeking easier financing terms to support large-scale industrial upgrades.