The Government of Bangladesh has disbursed Taka 2,000 crore in cash incentives to support export-oriented industries, specifically aimed at ensuring timely payment of wages and bonuses for workers ahead of Eid-ul-Fitr. This financial support consists of two installments: Taka 1,000 crore released on 5th March and another Taka 1,000 crore on 13th March.
The initiative was prompted by an appeal from Mohammad Hatem, President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), who emphasised the urgency of securing timely payments before the festive season. To guarantee that these funds are exclusively allocated for workers’ wages, the Government has instructed banks not to use the cash incentives to offset any existing loan repayments. This policy was established following several discussions at the Chief Adviser’s Office and the Secretariat.
A Labour Ministry official reiterated the importance of prioritising wage payments, noting that any loan adjustments could only be considered after ensuring workers are paid.
These cash incentives represent the third and fourth installments of the export incentive budget for the fiscal year 2024-25. The Office of the Controller General of Accounts is expected to issue the necessary debit authority shortly, allowing Bangladesh Bank to distribute funds to banks according to exporter requests.
During a recent meeting at the Ministry of Labor and Employment, stakeholders from the BGMEA, BKMEA, Bangladesh Bank, the finance ministry, and commercial banks urged compliance with the Government directive. Association leaders also requested an additional Taka 2,000 crore to further assist struggling factories.
Reports indicate that approximately 20 garment factories are at high risk of worker unrest due to financial difficulties. Factory owners have been instructed to submit export documentation promptly to facilitate the early release of funds. The commerce ministry has identified 500 ready-made garment (RMG) factories as being at risk, with 36 identified as particularly vulnerable.
Previously, BKMEA had requested Taka 7,000 crore in outstanding export incentives before Eid, warning that delays in wage and bonus payments could lead to labour unrest. The Finance Division has been urged to expedite the disbursement by the 15th of Ramadan to avert potential disruptions in the export sector.
