Bangladesh government has decided to keep export incentive and cash assistance rates unchanged across all eligible sectors for the second half of the current fiscal year 2025–26, covering the period from January 1 to June 30, 2026.
A directive to this effect was issued on January 7 by the Monitoring Cell of the Finance Division under the Ministry of Finance. According to the directive, no revisions—either upward or downward—have been made to existing incentive or cash support rates, and no new sectors have been brought under the incentive framework for the remainder of FY26.
As a result, exporters will continue to receive incentives at the same rates that were applicable during the first half of the fiscal year, from July 1 to December 31, 2025. The decision is intended to provide continuity and predictability for exporters at a time of heightened uncertainty in global trade, persistent pressure on export orders, foreign exchange constraints and volatile demand in key international markets.
Finance Division officials said the move aims to help exporters maintain operational stability, particularly in export-oriented industries such as readymade garments, textiles and other manufacturing sectors that remain sensitive to cost fluctuations and external shocks.
Under the directive, Bangladesh Bank has been requested to take the necessary steps to ensure smooth disbursement of incentives, while the central bank’s Foreign Exchange Policy Department has been instructed to issue operational guidelines to facilitate implementation.
The circular, signed by Finance Division Director Mohammad Sohrab Hossain, states that the decision takes immediate effect and will remain valid until June 30, 2026.
Exporters have broadly welcomed the decision, noting that retaining the existing incentive structure offers short-term relief amid weak global demand and rising production costs. However, industry representatives cautioned that without enhanced or targeted support, maintaining competitiveness—particularly against regional rivals offering higher subsidies and lower financing costs—could remain a challenge in the months ahead.
