Bangladesh Bank Governor Md Mostafizur Rahman has assured garment exporters that cash incentives will be disbursed every month without delay to ease liquidity pressure in the ready-made garment sector.
The assurance came during a meeting with leaders of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) at the central bank on Wednesday.
The BGMEA delegation, led by President Mahmud Hasan Khan, raised concerns over mounting challenges facing the export-oriented industry amid global economic uncertainty and domestic financial constraints.
Mahmud Hasan Khan said many factories are struggling to operate because banks are not providing adequate working capital despite loan rescheduling facilities.
He said delays in incentive payments could force factories to shut down, affecting employment in the labour-intensive sector.
The BGMEA chief also urged the central bank to strengthen policy support for exporters by increasing incentive rates.
The association proposed raising the special cash incentive from 0.30 per cent to 1 per cent and increasing the alternative incentive for exporters who do not use bonded warehouse facilities or duty drawback from 1.5 per cent to 2 per cent.
It also proposed increasing incentives for small and medium enterprises from 3 per cent to 4 per cent.
BGMEA leaders further recommended reducing the interest rate on packing credit to 7 per cent and expanding the pre-shipment credit refinancing scheme from Tk5,000 crore to Tk10,000 crore, with the facility extended until 2030.
They also urged bringing export loan interest rates down to single digits and ensuring easier access to finance for SME-based garment factories.
Responding to the concerns, the governor said Bangladesh Bank would take prompt action on issues within its jurisdiction and ensure that no applications for export incentives remain pending.
He said exporters would receive cash incentives within the same month to help ease liquidity constraints.
The BGMEA delegation also raised concerns over difficulties in encashing fixed deposits and export proceeds held in some Shariah-based banks including EXIM Bank and First Security Islami Bank.
The governor assured the association that the central bank would closely monitor the situation and take necessary steps to address the liquidity problems.
