BGMEA seeks release of cash incentives to ensure workers’ salaries before Eid

Garment exporters today urged the central bank governor to release funds from the export incentive so that factories can pay workers’ salaries and bonuses ahead of Eid-ul-Fitr.

Leaders of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) made this plea to Ahsan H Mansur, governor of Bangladesh Bank (BB), during a meeting at the BB office in Dhaka.

A large number of applications for cash incentives remain pending due to complexities in lien bank and Bangladesh Bank audit processes.

In the 2025-26 fiscal year, approximately Tk 5,700 crore in incentives for the textile and garment sector remain unsettled. Quick disbursement of these funds would help ease the liquidity crisis faced by factories, BGMEA said in a statement after the meeting.

BGMEA leaders emphasised giving priority to the rapid release of pending cash incentives in favour of small and medium-sized enterprises (SMEs), based on the list submitted by BGMEA.

To facilitate payment of wages and bonuses during the upcoming Eid-ul-Fitr, a request was made for special consideration in providing loan facilities equivalent to two months’ wages, repayable within 12 months with a three-month grace period, BGMEA said.

The BGMEA also called for the reintroduction of loan support under Packing Credit (PC) with the interest rate reduced to 7 percent; increasing the Pre-Shipment Credit Scheme fund from Tk 5,000 crore to Tk 10,000 crore; and extending the scheme’s tenure until 2030.

BGMEA leaders informed the governor that ensuring timely payment of workers’ dues is extremely important for maintaining stability in industrial areas and overall economic discipline in the country.

They stated that swift and timely policy measures from Bangladesh Bank are essential to protect this key sector of the national economy from adverse conditions.

They further noted that policy decisions taken by Bangladesh Bank in the current context would play a supportive role in safeguarding the industry, workers, and the broader economy during this crisis period.

The meeting was attended by BGMEA Senior Vice President Inamul Haq Khan and Vice President Md Shehab Udduza Chowdhury.

During the meeting, BGMEA leaders stated that the garment industry is currently going through a deep crisis due to declining global demand and falling prices, abnormal increases in production costs, and global geopolitical instability.

In particular, due to extended public holidays surrounding the national parliamentary elections and Language Movement Day, the number of effective production days in February (a 28-day month) dropped to only 19 days.

As a result, regular shipments have been disrupted, pushing factories toward severe financial strain. Under these circumstances, paying workers’ wages and bonuses on time ahead of Eid-ul-Fitr has become a major challenge for entrepreneurs, the BGMEA statement added.