The Government of Bangladesh has finalized a Tk 2,500 crore cash relief package for the country’s export-oriented ready-made garment (RMG) industry and related sectors. The move comes ahead of the holy Eid-ul-Fitr festival, helping factory owners manage the added financial burden of workers’ salaries, benefits, and festive bonuses.
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) warmly welcomed the timely decision. In a statement on Tuesday, BGMEA President Mahmud Hasan Khan told The Daily Industry, “This cash relief will significantly ease the existing liquidity constraints in the export sector.”
BGMEA sources confirmed that the association’s current board had held a series of high-level meetings with the government, including the Ministry of Finance and Bangladesh Bank, pressing for the rapid release of outstanding cash incentives. Following these discussions, the government approved the substantial funding in record time.
According to the latest finance ministry notification, Tk 1,500 crore will be disbursed in the first tranche and Tk 1,000 crore in the second tranche of the third installment for the 2025-26 fiscal year, totaling Tk 2,500 crore. BGMEA has urged its member companies to coordinate with their respective lien banks to complete the necessary procedures for receiving the funds promptly.
Industry insiders say the release of this cash support will help maintain the competitiveness of Bangladesh’s RMG sector in international markets. It is expected to ease financial pressures related to utility payments and raw material imports, allowing factories to sustain production efficiently.
Garment owners noted that having the funds before the Eid festival will reduce the risk of worker unrest and ensure smooth production processes. “This positive response from the government will also inject new momentum into achieving export revenue targets,” industry representatives told The Daily Industry.
With the country witnessing positive trends in remittance inflows and foreign reserves, this cash incentive is seen as particularly important for the export sector. BGMEA leaders had been demanding the release of outstanding funds for several days, emphasizing that government support is essential to keep the sector afloat amid a global economic slowdown. Timely disbursement will enable garment owners to meet other pre-Eid financial obligations effectively.
