Amidst the rollback of export incentives, businesses are urgently appealing to the Finance Minister to retain cash stimulus until Bangladesh achieves middle-income status in 2026.
Media reports maintained this adding concerns are mounting among apex trade chambers, particularly regarding the potential jeopardy faced by around 200 export-oriented spinning mills critical to local garment value addition—the country’s primary export revenue source—without this support.
Trade chambers are advocating for the reinstatement of previous cash incentives, and even suggest expanding the scope if necessary, citing numerous challenges faced by exporters.
These challenges include escalating manufacturing costs due to increased loan interest rates, reduced allocations under the Export Development Fund (EDF), and a halved exporter’s retention quota.
This plea follows a recent circular issued by the Bangladesh Bank (BB) reducing cash incentives for select export-oriented sectors, coincidentally amidst financial concerns.
The circular clarified the government’s decision for a gradual reduction in export incentives instead of a complete suspension for the current fiscal year, with retrospective effect from 1st January 2024, until 30th June 2024.
