Bangladesh Bank now allows capital machinery import in foreign credit without permission from the Bangladesh Investment Development Authority (BIDA).
Companies can now directly import necessary machinery and equipment using foreign loans with a minimum three-year term, without needing prior approval from the BIDA.
The Foreign Exchange Policy Department of Bangladesh Bank issued the directive on Wednesday (December 10). Industry stakeholders believe this new initiative will significantly ease the import process for the industrial sector.
The directive states that this industry-friendly measure was introduced as part of implementing the decision of BIDA’s foreign debt committee.
Previously, the long-term credit facility was primarily available only for the import of new machinery. The new regulation expands the scope:
Various capital goods, including ships, equipment, and machinery, can now be imported on three-year installment credit.
The foreign loan can be secured from either the foreign supplier or a foreign bank.
Entrepreneurs praised the decision, noting that it will reduce import complexities and help in the rapid procurement of essential capital goods, which is crucial for increasing production and industrial expansion.
BKMEA President Mohammad Hatem said that the new rule will accelerate the industrial and manufacturing sectors, while also encouraging long-term planning and new investments.