Government of Bangladesh is preparing to implement a new export promotion fund in lieu of direct cash incentives for export-oriented sectors, as direct subsidies violate World Trade Organization (WTO) rules. This initiative is outlined in the draft Export Policy 2024-27, recently approved by the Cabinet Committee on Economic Affairs. The proposed fund aims to support exporters through venture capital loans with low interest rates and favorable terms, along with offering consultancy, technical assistance, and incentives for product diversification and market development.
Additionally, the policy includes measures such as rebates on utility bills, waivers on licensing fees, duty exemptions on imports, and cash incentives for specific sectors and activities. The government targets to achieve export earnings of $110 billion annually by 2027, with a focus on sectors like computer services, consultancy, software implementation, and others identified for their export potential. Despite these efforts, achieving the export target faces challenges such as power shortages, financial obstacles, and customs issues, as noted by industry representatives.
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