The Government of Bangladesh has released Taka 12.5 billion (US $ 113 million) to provide remittance and export incentives, according to sources. This funding marks the third instalment allocated for the fiscal year 2025.
The breakdown of the released funds includes Taka 10 billion (US $ 91 million) earmarked for remittance beneficiaries and Taka 2.5 billion (US $ 22 million) designated for local exporters. The disbursement was authorised through separate orders issued by the Finance Division recently.
As part of its ongoing efforts to promote remittances, the Government offers a cash incentive of 2.5 per cent on remittances sent by expatriates through legal channels. The Finance Division has established specific conditions for accessing the export incentives, mandating that the funds be allocated to banks, which are prohibited from using them for any other purpose.
Both banks and recipients of the incentives are required to adhere strictly to the existing policies. Failure to comply could result in legal action. The Bangladesh Bank (BB) will facilitate the incentives based on requests made by banks to support exporters.
Export-oriented sectors, including ready-made garments, leather goods and jute products, are set to benefit from these incentives, as outlined in a recent order from the Finance Division. Notably, a special 1.0 per cent cash incentive support fund for the apparel industry has also been included in the latest instalment.
However, it is important to note that the Government has reduced export cash incentive rates for all 43 categories by up to 50 per cent for FY ’25, reflecting ongoing adjustments to economic policies.
