DHAKA, Mar 11, 2026 (BSS)- A delegation of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) led by its President Mahmud Hasan Khan held a courtesy call on Governor of Bangladesh Bank Md Mostaqur Rahman today.

During the meeting, the BGMEA delegation sought urgent policy support from the central bank to address the multiple challenges currently facing the garment industries, said a press release.

Other members of the delegation included BGMEA Director Majumdar Arifur Rahman, Director Dr Rashid Ahmed Hossaini and Managing Director of Mahin Apparels Ltd. Abdullah-Al-Mahmud Mahin. Senior officials of Bangladesh Bank were also present at the meeting.

BGMEA President Mahmud Hasan Khan said the country’s garment sector is currently going through a difficult period due to global economic uncertainties and several domestic constraints. 

Although some banks have rescheduled loans, but many factories are still facing shortages of working capital, making it difficult to keep production running and repay loans on time.

To safeguard the industry and encourage new entrepreneurs, BGMEA leaders strongly urged the continuation and increase cash incentives under government policy support.

They proposed raising the special cash incentive rate from 0.30 percent to 1 percent, increasing the alternative cash support (in place of duty bond and duty drawback facilities) from 1.5 percent to 2 percent, and raising incentives for SME industries from 3 percent to 4 percent, 

The delegation warned that if incentive payments are not disbursed quickly and regularly, many factories may soon face closure, which could negatively affect the labour market.

The BGMEA leaders also proposed reducing the interest rate on packing credit (PC) to 7 percent, increasing the pre-shipment credit refinance scheme from Taka 5,000 crore to Taka 10,000 crore, and extending the tenure of the fund until 2030. They further suggested bringing export loan interest rates to single digits and ensuring easier credit access for SME factories.

Listening attentively to the concerns and proposals, Bangladesh Bank Governor Md. Mostaqur Rahman assured that issues within the jurisdiction of the central bank would be addressed promptly and effectively.

Regarding cash incentives, he firmly stated that no application will remain pending and that arrangements will be made to release the incentive payments within the same month they are claimed, in order to ease liquidity pressures on exporters.

The BGMEA delegation also raised issue about difficulties in encashing fixed deposits and export proceeds in Sammilito Islami Bank (including former EXIM Bank Bangladesh and First Security Islami Bank), citing liquidity shortages that are affecting factories’ ability to pay workers’ wages and utility bills.

In response, the governor assured that Bangladesh Bank will take special supervisory measures to address the issue.

The BGMEA leaders expressed hope that the central bank’s swift measures would help the country’s garment sector overcome current global challenges and maintain employment in the industry.