Bangladesh Bank has launched a Tk 600 billion refinancing and support package aimed at revitalizing the country’s slowing private-sector economy, boosting employment, and restoring industrial and agricultural activity.
The central bank introduced the stimulus programme on Saturday, describing it as a key part of the government’s broader economic recovery agenda. Officials said the initiative is designed to help reopen closed industrial units, strengthen rural economic activity, expand exports, and support job creation for more than 2.5 million people.
The package is divided into two main components. A Tk 410 billion refinancing fund will be sourced from commercial banks with surplus liquidity, while a Tk 190 billion support fund will come directly from Bangladesh Bank’s own resources under a government guarantee.
Authorities have allocated Tk 200 billion to revive closed industrial and service-sector enterprises, along with targeted funds for small and medium enterprises, agriculture, export diversification, and regional development. Additional allocations have been made for sectors including leather goods, fisheries, startups, the creative economy, and youth employment.
Bangladesh Bank officials said the refinancing mechanism will allow commercial banks to access funds at lower rates and lend to businesses at around 7%, with larger firms receiving loans at approximately 7% and slightly higher rates applied to smaller borrowers. The central bank expects the structure to ease credit constraints and encourage investment across key sectors.
The governor said the economy has faced sustained pressure over the past three years, with declining GDP growth, rising non-performing loans, and weakening business confidence. Key industries such as garments, textiles, steel, ceramics, IT, and manufacturing have been particularly affected by higher costs and financial stress.
The central bank emphasized that the refinancing scheme will not fuel inflation, as it will be financed through existing liquidity in the banking system and the central bank’s profits, rather than new money creation. Government subsidies will help cover part of the funding cost.
However, some banking sector experts have raised concerns about implementation risks, noting that weak infrastructure, energy shortages, and borrower instability could limit the effectiveness of low-cost credit support alone.
Despite these concerns, Bangladesh Bank expects the package to play a significant role in restarting stalled industries, improving rural livelihoods, and strengthening overall economic momentum in the coming years.
