BB rolls out stimulus to reopen industries
Bangladesh Bank has announced a Tk60,000 crore stimulus package aimed at reviving closed factories, supporting businesses and accelerating economic activity across the country.
The package is expected to boost production, increase exports, strengthen private sector growth, create employment opportunities and support overall economic recovery.
Speaking at a briefing at the central bank headquarters in Motijheel on Saturday, Bangladesh Bank Governor Md. Mostaqur Rahman said Tk41,000 crore would be channelled through a refinancing scheme to help reopen factories and revive struggling businesses.
A further Tk19,000 crore will be provided directly by the central bank from its own funds.
The governor said the customer-level interest rate for large industries would be fixed at 7 per cent, while smaller borrowers could face slightly higher rates depending on the lending category.
According to Bangladesh Bank, the package could generate around 2.5 million direct and indirect jobs.
Under the refinancing arrangement, the Tk41,000 crore fund will be sourced from commercial banks holding excess liquidity.
The money will be raised through long-term deposits with a minimum tenure of three years at an interest rate of 10 per cent.
The largest allocation — Tk20,000 crore — has been earmarked for reopening closed factories and supporting the service sector.
Agriculture and rural economic activities will receive Tk10,000 crore, while the cottage, micro, small and medium enterprise (CMSME) sector has been allocated Tk5,000 crore.
Another Tk3,000 crore each has been designated for export diversification initiatives and the North Bengal Agricultural Hub project.
The remaining Tk19,000 crore will be financed directly by Bangladesh Bank, subject to government guarantees.
Of this amount, Tk5,000 crore each has been allocated for pre-shipment credit refinancing and support for cottage and micro entrepreneurs.
The leather goods and footwear sector, along with frozen shrimp and fish exports, will receive Tk2,000 crore each.
In addition, Tk1,000 crore each has been earmarked for youth employment, rural economic activities, green and environmentally friendly projects, and overseas employment initiatives. Startup funding and the creative economy will receive Tk500 crore each.
Bangladesh Bank said the package is expected to help restart idle factories, expand industrial production, increase agricultural output, promote environmentally sustainable projects, strengthen rural economies, encourage innovation and raise remittance inflows through overseas employment opportunities.
A senior central bank official said the initiative would primarily target businesses that became financially distressed following the Covid-19 pandemic, the Russia-Ukraine war and instability in the foreign exchange market.
The official added that companies with confirmed purchase orders and clear market demand would be prioritised to ensure effective use of the funds.
Bangladesh Bank has already gathered information from commercial banks and trade organisations regarding closed and partially operational factories.
Officials said more than 1,200 industrial units, including both large and small enterprises, have so far been identified under the recovery initiative.
