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Tk60,000cr rescue for industry
Refinancing and targeted funds aim to reopen closed factories and spur employment
Daily Sun Report, Dhaka
Published: 24 May 2026, 12:00 AM
Bangladesh Bank (BB) has unveiled a Tk60,000-crore stimulus package aimed at reopening shuttered factories, reviving industrial production, boosting exports and restoring private sector confidence amid slowing economic growth, rising bad loans and mounting pressure on the banking sector.
The package includes Tk41,000 crore in refinancing support and Tk19,000 crore from Bangladesh Bank’s own funds.
The central bank estimates the programme could generate more than 2.5 million jobs through industrial recovery, agricultural expansion, export diversification and rural economic activities.
Speaking at a press briefing at Bangladesh Bank headquarters on Saturday, Governor Md Mostaqur Rahman said the stimulus would play a vital countercyclical role by restoring industrial capacity, stimulating domestic demand and rebuilding private sector momentum during a period of global uncertainty, weaker export demand and rising trade tensions. Of the total amount, Tk41,000 crore will be mobilised through a refinancing scheme funded by commercial banks with excess liquidity, using long-term deposits of three years or more at a 10% interest rate.
Bangladesh Bank said the refinancing scheme would primarily target distressed but viable businesses affected by post-COVID disruptions, the Russia-Ukraine war and volatility in the foreign exchange market.
According to the central bank, Tk20,000 crore has been allocated for closed industries and service-sector enterprises, Tk10,000 crore for agriculture and rural activities, Tk5,000 crore for CMSMEs (Cottage, Micro, Small and Medium Enterprises), Tk3,000 crore for export diversification and another Tk3,000 crore to transform North Bengal into an agricultural hub.
The funds will be used to finance raw materials, workers’ wages, utility bills, export order execution and other production costs in an effort to restart industrial operations and restore productive capacity.
BB’s Tk19,000-crore support fund
Alongside the refinancing scheme, Bangladesh Bank will provide a further Tk19,000 crore from its own resources, subject to government guarantees.
The package includes Tk5,000 crore for pre-shipment credit refinancing, Tk5,000 crore for cottage and micro entrepreneurs, Tk2,000 crore for leather goods and footwear exports, Tk2,000 crore for frozen shrimp and fish exports, Tk1,000 crore for unemployed youth employment, Tk1,000 crore for rural economic activities, Tk1,000 crore for green and eco-friendly investments, Tk1,000 crore for overseas employment, Tk500 crore for start-up financing and Tk500 crore for the creative economy.
The governor said the Tk500 crore earmarked for the creative economy would be distributed as grants through Corporate Social Responsibility (CSR) funds rather than as loans.
BB’s Tk19,000-crore support fund
Alongside the refinancing scheme, Bangladesh Bank will provide a further Tk19,000 crore from its own resources, subject to government guarantees.
The package includes Tk5,000 crore for pre-shipment credit refinancing, Tk5,000 crore for cottage and micro entrepreneurs, Tk2,000 crore for leather goods and footwear exports, Tk2,000 crore for frozen shrimp and fish exports, Tk1,000 crore for unemployed youth employment, Tk1,000 crore for rural economic activities, Tk1,000 crore for green and eco-friendly investments, Tk1,000 crore for overseas employment, Tk500 crore for start-up financing and Tk500 crore for the creative economy.
The governor said the Tk500 crore earmarked for the creative economy would be distributed as grants through Corporate Social Responsibility (CSR) funds rather than as loans.
Focus on jobs and private sector recovery
Bangladesh Bank expects the package to create more than 2.5 million direct and indirect jobs through industrial reopening, agricultural growth, export expansion and rural economic activities.
According to the central bank’s estimates, the Tk20,000 crore allocation for closed industries and service sectors alone could generate nearly 200,000 jobs, while the Tk10,000 crore agriculture and rural package may support around 900,000 jobs.
The CMSME allocation is expected to create nearly 500,000 jobs, while export diversification initiatives may generate another 50,000 positions. The North Bengal agricultural hub project is projected to create around 100,000 jobs through agricultural production, preservation, processing and exports.
Bangladesh Bank also expects the Tk1,000 crore overseas employment fund, to be channelled through Probashi Kalyan Bank, to support employment opportunities for nearly 100,000 workers abroad and boost remittance inflows.
Loans for unemployed youth will be distributed through Karma Sangsthan Bank, while financing for rural economic activities will be channelled through Ansar-VDP Bank.
Officials said millions of Ansar and VDP members are expected to benefit from the rural financing programme aimed at strengthening grassroots economic activities and rural entrepreneurship.
Why the stimulus was needed
The governor said Bangladesh’s economic growth has weakened steadily over the past three years.
“GDP growth declined from 5.8% in 2023 to 4.2% in 2024 and may fall further to 3.7% in 2025,” he said.
He noted that major sectors, including garments and textiles, steel, ceramics, information technology and manufacturing, have faced severe setbacks, forcing many factories to shut down or scale back operations.
Bangladesh Bank officials said more than 1,200 closed or partially operational factories had already been identified through data collected from trade bodies and banks.
A senior central bank official said priority would be given to firms with confirmed export orders and proven market demand to ensure effective use of the funds.
The central bank said the package is expected to help reopen factories, create new production capacity, increase agricultural output nationwide and diversify exports. It also hopes the programme will accelerate environmentally friendly investments, strengthen green financing and support creative and innovative economic activities.
Financial sector stress deepens
The governor said pressure on the banking sector had intensified due to rising classified loans, money laundering and fund siphoning, while depositor confidence had weakened significantly.
“Tk5 lakh crore has been stolen from the country. One-third of the loans have disappeared and there are not enough assets against those loans,” he said.
According to Bangladesh Bank, idle excess liquidity has increasingly moved away from productive sectors, depriving private businesses of working capital and worsening the slowdown in industrial activity.
The governor said Bangladesh Bank would use its own profits and government-backed funding for the package, meaning there would be no need to print new money.