Published: 01:46 AM, 19 October 2026
Slow Pace in Disbursing BDT 600 Billion to Restart Ailing Industries
Around one-fifth of the stimulus package involving Tk 600-billion to vibrate the economy after months of sluggishness has been disbursed in almost five months of the package being launched. According to the latest statistics of Bangladesh Bank (BB), a total of Tk 119.60 billion has been disbursed under 15 re-financing and pre-financing schemes of the package until October 15 last, which was much lower of the disbursement target initially set by the banking regulator. However, another Tk 25.60 billion is currently under process for disbursement under the package, the data showed. In terms of reopening of the closed industrial units, only Tk 5.61 billion has so far been disbursed from the BB-sponsored pre-financing schemes involving Tk 200 billion meant to help reopen closed industrial and service-sector units, according to the central bank.
Another Tk 9.29 billion is currently under process for disbursement under the scheme, meaning less than three per cent of the allocated fund has reached entrepreneurs in the first five months of the initiative. Earlier on May 22 last, the central bank announced a Tk600 billion stimulus package to revive economic activities with spurring investment in the private sector-led economy.
The high-ups of the central bank earlier instructed the commercial banks to fully execute the package by December next with maintaining the disbursement ratio of 25 percent each in September, October, November and December of this year. Among the schemes, the pre-shipment credit refinancing scheme received the largest amount, with cumulative disbursement reaching Tk 69.17 billion. A special scheme for creating cottage and small enterprises disbursed Tk 25.00 billion, while around Tk 9.08 billion was disbursed from the refinancing fund for working capital in the CMSME sector.
The creative economy financing scheme disbursed Tk 5.0 billion, while Tk 2.93 billion was released under the refinancing scheme for increasing agricultural production, expanding economic activities in rural areas, ensuring food security and creating employment. The central bank also reported Tk 2.0 billion in disbursement under the employment-generating financing scheme for overseas jobs, Tk486.70 million under the refinancing scheme for developing an agriculture-based special economic centre in the northern region, and Tk325.9 million under the startup financing scheme. Another Tk 50 million is under process for startups. Seeking anonymity, a BB official said the disbursement got a pace in recent days as banks keep sending a good-number of fund requisitions to the central bank. "People will see good progress as far as disbursement is concerned by the end of this month," he said. About the slow disbursement progress in reopening the shut factories, the central banker said both banks and regulators become very careful in approving proposals to avert any further stress. "That's why fund disbursement under this scheme is comparatively low."
The central banker said the package has two components: a Tk 410-billion refinancing fund, sourced from banks with excess liquidity through long-term deposits of at least three years at policy rate (now 9.5 per cent), and a Tk 190-billion support fund drawn from the central bank's own resources, subject to government guarantee. About the cost of funds, he said the regulator will source execs liquidity of the banks at the policy rate.
Of the costing, BB will give the remaining 4.0 percent while the government will bear remaining costs as subsidy. In terms of disbursement, according to the package, the commercial banks will get the funds at 4.0 percent and will be allowed to lend at 7.0 per cent to the borrowers. The package also targets creating employment opportunities for around 2.5 million people. Industry stakeholders said factories are yet to receive the expected benefits from the package, while many industrial units continue to face challenges, particularly due to persistent energy shortages and other operational constraints. Director General of Bangladesh Institute of Bank Management (BIBM) Dr. Md. Ezazul Islam said the disbursement ratio under the current internal and external macroeconomic volatility is good and encouraging. "I believe the disbursement will get a pace in the coming months."
