Bangladesh Bank announces Tk 60,000 crore fund to revive economy

Bangladesh Bank has announced a Tk 60,000 crore refinancing and support fund aimed at reviving the country’s slowing economy, reopening closed industries and generating employment opportunities for more than 2.5 million people.

The announcement was made on Saturday at a press conference at the central bank headquarters in Motijheel by Governor Mostakur Rahman.

According to Bangladesh Bank, the fund will support the reopening of industrial factories, boost agricultural production, expand exports and stimulate rural economic activities. The central bank also expects a separate Tk 1,000 crore allocation for overseas employment to help create jobs for nearly 100,000 people abroad.

Read More: Forex reserves surge to $34.53 billion

The governor said Bangladesh’s economic growth has slowed steadily over the past three years, with GDP growth declining from 5.8 percent to 4.2 percent and projected to fall further to 3.7 percent this year. He added that major sectors including garments, textiles, steel, ceramics, information technology and manufacturing have faced significant setbacks.

Mostakur Rahman also noted rising pressure on the banking sector, increasing non-performing loans, money laundering concerns and declining depositor confidence. High interest rates, he said, have discouraged small and medium-sized entrepreneurs from expanding businesses, prompting the central bank to introduce the special recovery scheme.