Bangladesh Bank (BB) Governor Mostakur Rahman on Saturday announced a Tk 60,000 crore stimulus package aimed at reopening closed factories, increasing agricultural output and expanding access to working capital loans, as the central bank seeks to restore momentum in business and support employment.
Speaking at a press conference at BB headquarters, Rahman said the package targets the creation of 25 lakh jobs.
Of the total fund, commercial banks will disburse Tk 41,000 crore from their own resources, while the central bank will provide Tk 19,000 crore through refinancing.
In both cases, the government will offer a 6 percent interest subsidy.
The package will support closed industrial and service-sector units, agriculture, garments, cottage, micro, small and medium enterprises, export diversification, green investment and the creative economy.
According to the central bank, the aim is to boost productivity, raise GDP growth, increase exports and restore dynamism in trade and industry.
Funds will also be directed to northern Bangladesh to help develop the region as an agricultural hub.
Rahman said Bangladesh’s banking sector remains under severe strain and alleged that roughly Tk 5,000 crore had been siphoned out of the system, though formally recorded as defaulted loans.
He said many of those loans lacked proper collateral and documentation and that much of the money had been laundered abroad, making recovery a lengthy process.
He added that the government is treating asset recovery as a top priority.
Under the refinancing portion of the package, Tk 5,000 crore will go to pre-shipment credit for exporters, Tk 5,000 crore to cottage, micro and small entrepreneurs, Tk 2,000 crore to leather and leather goods, Tk 1,000 crore to youth employment, Tk 1,000 crore to rural economic activities, Tk 2,000 crore to frozen fish and fish exports, Tk 1,000 crore to green investment, Tk 1,000 crore to overseas employment, Tk 500 crore to startups and Tk 500 crore to the creative economy.
The central bank said the creative economy allocation will be spent under its corporate social responsibility program.
