Tk 62,000 Crore Incentive Package to Revive Business Amid High Interest Rates

Bangladesh Bank has announced an incentive package worth Tk 62,000 crore to ease the financial pressure on entrepreneurs struggling with high bank lending rates. The package is expected to provide access to financing at lower interest rates, Bangladesh Bank Governor Md Mostaqur Rahman has said.

The governor noted that bank lending rates currently stand at around 12 to 14 per cent, making it difficult for entrepreneurs to operate businesses profitably with borrowed funds. Considering the situation, the central bank has taken initiatives to provide lower-cost loans through various incentive packages.

He made the remarks as the chief guest at an exchange meeting held on Friday, October 2, at the auditorium of the Primary Teachers’ Training Institute (PTI) near Bheripara intersection in Rajshahi city. The meeting was organised to discuss the implementation of Bangladesh Bank’s incentive packages aimed at revitalising private-sector activities.

The meeting was attended by the divisional commissioner and deputy commissioner of Rajshahi, business representatives, chamber leaders, officials from various government departments and banking officials. It was chaired by Muhammad Badiuzzaman Didar, executive director of Bangladesh Bank’s Rajshahi office.

‘Udyog’ Scheme to Develop Young Entrepreneurs

Addressing the meeting, Mostaqur Rahman said Bangladesh Bank was planning to introduce a special scheme titled ‘Udyog’ to channel the enthusiasm and participation of young people into productive economic activities.

Under the proposed initiative, 10 entrepreneurs would be selected from each upazila, with a target of developing a total of 5,000 young entrepreneurs across the country.

The scheme is currently at the pilot stage, and its activities are scheduled to begin in November, the governor said.

Easier Access to Agricultural Credit

Speaking about agricultural financing, the governor said a Tk 10,000 crore refinancing scheme had introduced the option of alternative collateral instead of requiring conventional security such as land or other immovable property.

The initiative aims to ensure that more genuine and marginal farmers can access financing, potentially expanding credit opportunities for those who face difficulties meeting traditional collateral requirements.

He also stressed the importance of strengthening every stage of the agricultural value chain in northern Bangladesh—from production and storage to marketing, processing and exports to international markets.

A separate refinancing scheme worth Tk 3,000 crore is expected to play an important role in making these activities more efficient and dynamic, he added.

Focus on Private-Sector Growth

The initiatives are intended to expand access to lower-cost financing for entrepreneurs, make agricultural credit more accessible and strengthen the production and marketing of agricultural goods.

Effective implementation of the packages is expected to support private-sector investment and economic activity, while creating opportunities for young entrepreneurs and improving access to finance for farmers.

The success of these initiatives will depend on ensuring that eligible entrepreneurs and farmers can access the facilities and that the financing reaches the intended beneficiaries.