United News of Bangladesh

Bangladesh Bank Governor Dr Ahsan H Mansur on Tuesday pledged policy backing and faster disbursement of pending export incentives to help garment manufacturers navigate a mounting liquidity crisis ahead of Eid-ul-Fitr, as factories scramble to pay wages and bonuses to millions of workers. The assurance came at an emergency meeting held at the central bank headquarters with a delegation from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), led by Senior Vice President Inamul Haq Khan and Vice President Md Shihabuddoja Chowdhury. BGMEA officials described a ‘deep crisis’ gripping the ready-made garment sector, which accounts for the bulk of Bangladesh’s export earnings. They said February’s production cycle has been curtailed to 19 effective working days from 28 due to public holidays for the national election and Language Day, disrupting shipment schedules at a critical time. The industry is also contending with weaker international demand, declining product prices and rising production costs, compounded by global geopolitical instability. With compressed production timelines, factory owners face what the association termed a “monumental challenge” in ensuring timely wage and Eid bonus payments. To prevent labour unrest and safeguard industrial stability, BGMEA submitted a set of proposals to the central bank. The association urged authorities to expedite the release of approximately Tk 5,700 crore in pending cash incentives for fiscal year 2025-26 that remain stalled in audit processes. It also called for preferential treatment for small and medium-sized factories when disbursing those funds to help ensure their survival. Besides, BGMEA sought a special wage-support loan facility equivalent to two months’ salaries, featuring a three-month grace period and a 12-month repayment schedule. New govt to continue reforms in banking sector: Bangladesh Bank governor The group further requested the reintroduction of Packing Credit at a 7 percent interest rate and an expansion of the Pre-shipment Credit Scheme from Tk 5,000 crore to Tk 10,000 crore, with an extension of the scheme’s tenure to 2030. Mansur acknowledged the urgency of the situation and said the central bank would take ‘positive steps’ to address the liquidity shortage, with particular focus on prioritising cash incentive releases for SME factories. Ensuring workers are paid on time to maintain stability in key industrial zones is a top priority for the central bank, he said. The intervention comes as Bangladesh’s export-reliant apparel sector faces intensifying pressure from global market volatility, underscoring the central bank’s balancing act between financial discipline and safeguarding employment in one of the country’s most critical industries.