The Bangladesh Bank has introduced a special term loan facility to enable export-oriented industries to pay workers’ wages on time, as mounting global and domestic economic pressures strain the country’s key export sectors. The directive was issued on Tuesday through a circular signed by Mohammad Bayezid Sarker, Director of the Banking Regulation and Policy Department (BRPD), under the authority conferred by Section 45 of the Bank Company Act, 1991.
According to the circular, a combination of subdued global demand, deferred export orders, declining shipments, and persistent liquidity shortages has disrupted production activities across export-focused industries. These pressures have eroded the capacity of many firms to meet regular wage and allowance obligations, raising concerns about labour unrest and supply-chain instability.
To address the situation, commercial banks have been instructed that they may extend a special short-term loan facility—over and above existing working capital limits—to eligible and operational export-oriented enterprises. The measure is specifically intended to ensure the timely payment of wages and allowances for February 2026.
Eligibility and Loan Conditions
The central bank has set out clear criteria for access to the facility:
| Criteria | Requirement |
|---|---|
| Export threshold | At least 80% of total production must be exported |
| Operational status | Wages must have been paid for November 2025 to January 2026 |
| Certification | Verification required from relevant trade bodies (e.g., BGMEA, BKMEA) |
| Loan ceiling | Not exceeding the average wage bill of the preceding three months |
| Interest rate | Prevailing market-based lending rate |
The loan amount may not exceed the average wages and allowances disbursed by the borrowing enterprise over the previous three months. This cap is designed to ensure that the funds are used strictly for payroll support rather than for unrelated operational or capital expenditure.
Export-oriented industries—particularly the ready-made garments (RMG) sector, which accounts for more than 80% of Bangladesh’s merchandise export earnings—have faced weaker demand from major markets in Europe and North America. Industry leaders have recently reported slower order placements and downward price negotiations from international buyers, further squeezing margins.
By requiring certification from representative trade associations such as the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), the central bank aims to ensure that only genuinely operational and export-reliant firms benefit from the scheme.
Officials at Bangladesh Bank have indicated that the policy is intended as a targeted and temporary intervention to stabilise employment, sustain production capacity, and preserve export momentum during a period of economic headwinds. Analysts suggest that while the measure may ease immediate liquidity stress, broader recovery in export performance will depend largely on global demand conditions and exchange rate stability in the months ahead.