Industry welcomes Tk 20,000cr pre-financing facility
Entrepreneurs have welcomed Bangladesh Bank’s newly introduced Tk 20,000 crore pre-financing scheme for closed industrial and service-sector enterprises, describing it as a significant initiative to revive distressed export-oriented factories, protect jobs and strengthen foreign exchange earnings.
Although no official figures are available, industry sources estimate that between 500 and 1,500 export-oriented factories are currently either fully or partially idle across sectors including garments, textiles, leather, plastics, ceramics and home textiles.
Many of these businesses have been affected by a combination of factors, including foreign currency shortages, energy supply constraints, high borrowing costs, subdued global demand and geopolitical uncertainties.
Under the scheme, eligible enterprises will be able to obtain loans of up to Tk 200 crore through commercial banks at an interest rate of 4 per cent.
Access to the facility, however, will depend on banks’ assessments and compliance with the scheme’s eligibility requirements.
Business leaders believe the initiative could enable financially viable factories with established export markets and operational infrastructure to resume production more quickly, helping to generate employment and increase export earnings.
According to industry estimates, the reopening of between 300 and 500 factories could directly preserve or create between 150,000 and 750,000 jobs.
Former president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), Fazlul Haque, welcomed the safeguards incorporated into the scheme to prevent misuse of funds.
However, he cautioned that a number of struggling enterprises could remain outside its scope because of their classification as loan defaulters.
Meanwhile, former director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Mohiuddin Rubel, said reviving existing industries would likely yield quicker economic benefits than establishing new factories, given the substantial investments already made in idle production facilities.
Entrepreneurs and economists also stressed that access to working capital alone may not be sufficient to restore competitiveness.
They called for complementary measures, including technological modernisation, investment in advanced machinery, improvements in product quality and initiatives to raise productivity.
Such support, they argued, would help Bangladeshi industries strengthen their position in international markets and compete more effectively with regional rivals such as Vietnam, China and Cambodia.
