Government of Bangladesh has disbursed Tk 2,000 crore in cash incentives to export-oriented industries to support workers’ wages and bonuses ahead of Eid-ul-Fitr. Tk 1,000 crore was released on 13th March, following an earlier Tk 1,000 crore disbursement on 5th March. The initiative follows an appeal from BKMEA President Mohammad Hatem to ensure timely payments before Eid.
To ensure funds are used exclusively for workers’ wages, the government has directed banks not to adjust these incentives with previous loan repayments. This decision was made after multiple meetings at the Chief Adviser’s Office and the Secretariat. A Labor Ministry official emphasized that the priority is wage payments, and loan adjustments can only happen afterward.
This cash incentives represent the third and fourth installments of the export incentive allocated for FY 2024-25. The Office of the Controller General of Accounts will soon issue the debit authority, and Bangladesh Bank will distribute funds to banks based on exporter demands.
During a meeting at the Ministry of Labor and Employment, representatives from BGMEA, BKMEA, Bangladesh Bank, the finance ministry, and commercial banks urged banks to comply with the directive. Association leaders also requested an additional Tk 2,000 crore before Eid to support struggling factories.
Reports indicate that around 20 garment factories face a high risk of worker unrest due to financial distress. Factory owners have been asked to submit export documents to facilitate early fund releases. The commerce ministry flagged 500 RMG factories as at risk, with 36 particularly vulnerable.
Earlier, BKMEA requested Tk 7,000 crore in outstanding export incentives before Eid, warning that delays in wage and bonus payments could trigger labour unrest. The Finance Division was urged to expedite disbursement by the 15th of Ramadan to prevent disruptions in the export sector.
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