The Bangladesh Bank (BB) has announced a massive stimulus package of Tk60,000 crore credit line amid at at arresting a sharp economic slowdown, restarting closed factories, strengthening weak industries and generating more than 2.5 million jobs nationwide.
Governor Mostaqur Rahman unveiled the package at the central bank headquarters on Saturday, describing it as an urgent intervention to restore confidence amid weakening growth, rising financial stress and declining investment.
The central bank's move comes as Bangladesh's economic growth has slowed from 5.8 per cent in FY2023 to 4.2 per cent in FY2024, with projections suggesting a further dip to 3.7 per cent in FY2025. Rising classified loans, high borrowing costs and reduced depositor confidence have intensified pressure on the banking sector.
The governor said many factories across garments, steel, ceramics, IT and manufacturing have either scaled back operations or shut down entirely, impacting both exports and employment. Without immediate intervention, he warned, weak private investment and falling demand could deepen the downturn.
The stimulus package is designed not only as a liquidity injection but as a mechanism to redirect idle banking funds into productive sectors. According to Bangladesh Bank, a significant volume of long-term deposits is currently underutilised in the banking system, limiting financing for industry and agriculture.
The largest component of the package, Tk 41,000 crore, will be channelled through a refinancing mechanism focused on industrial revival and job creation. Tk 20,000 crore is allocated for closed industries and service sectors, expected to restart stalled operations and safeguard or generate around 200,000 jobs. Tk 10,000 crore is earmarked for agriculture and rural activities, with an estimated 900,000 jobs targeted through expanded farming and agro-processing support. Tk 5,000 crore will go to CMSMEs, projected to create about 500,000 jobs by strengthening small-scale enterprises and local supply chains. Tk 3,000 crore is set aside for export diversification, alongside another Tk 3,000 crore for the North Bengal agricultural hub, jointly targeting around 150,000 jobs.
In addition to refinancing, Bangladesh Bank will inject Tk19,000 crore directly into selected sectors. Tk5,000 crore is allocated for pre-shipment credit and another Tk5,000 crore for cottage and micro enterprises. Leather and footwear exports will receive Tk2,000 crore, while frozen fish exports will receive the same amount. Rural economic activities, unemployed youth, overseas employment and green financing will each receive Tk1,000 crore. Startups and the creative economy will each receive Tk500 crore, aimed at encouraging innovation and new enterprise formation.
Officials said the measures are intended to ease export financing constraints, promote entrepreneurship and support both traditional and emerging sectors of the economy. The governor stressed that the success of the package will depend on effective implementation and strict monitoring to ensure funds reach productive uses.
The governor said rate of interests in the financing will be fixed in a fresh circular later. However till filling this report there was no circular by the BB.
The central bank expects that reopened factories, improved rural incomes, strengthened exports and renewed investor confidence will gradually help stabilise the economy and restore growth momentum.
