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Bangladesh central bank unveils $4.9 billion stimulus as growth slows

Bangladesh's central bank announced a $4.9 billion stimulus package to revive factories and support businesses amid slowing economic growth. The measures target export-oriented industries and agriculture.

Sophia Anderson
BySophia Anderson- Senior Editor
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Bangladesh's central bank on Saturday announced a 600 billion taka ($5 billion) stimulus package to revive shuttered factories and support businesses as economic growth slows.

The package aims to restart production, create jobs and restore business confidence, as export-oriented industries, especially the ready-made garment sector, struggle with weaker global demand, higher input costs and supply chain disruptions.

Bangladesh Bank Governor Mostaqur Rahman said the stimulus includes a 410 billion taka refinancing fund raised from banks with excess liquidity, alongside a 190 billion taka fund drawn from the central bank's own resources and backed by a government guarantee.

The largest allocation, amounting to 200 billion taka, will be used to reopen closed and distressed factories and support service-sector businesses. The central bank estimates the programme could help create around 250,000 jobs.

Another 100 billion taka has been earmarked for agriculture and the rural economy. The refinancing scheme is intended to prioritise export-oriented industries, particularly garments, which account for more than 80% of Bangladesh's export earnings.

Bangladesh's economic growth eased to 3% in the second quarter of the 2025–26 fiscal year, compared to 3.5% a year earlier, according to provisional data from the Bangladesh Bureau of Statistics.

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