Special Loans Introduced to Ensure Export Sector Wages

In a strategic move to safeguard employment and maintain production in Bangladesh’s export-oriented industries amid domestic and global economic uncertainty, Bangladesh Bank has announced the introduction of special short-term loans to ensure timely payment of workers’ wages. The directive was detailed in a circular issued by the central bank on Tuesday.

The circular, signed by Md. Bayezid Sarkar, Director of the Banking Regulation and Policy Department (BRPD), cites the authority granted under Section 45 of the Bank Companies Act, 1991. Bangladesh Bank noted that recent global market fluctuations, delayed purchase orders, rising costs of energy and raw materials, and domestic liquidity shortages have disrupted the operational capacity of export-oriented industries. This disruption has, in turn, affected the timely disbursement of salaries and benefits to workers.

Entrepreneurs in the ready-made garments (RMG), knitwear, leather, and light engineering sectors have repeatedly highlighted cash flow constraints, pointing out that while global competition pressures firms to maintain price competitiveness, production costs remain high. Delayed wage payments in this context could increase social unrest and threaten continuity of production.

To address these challenges, Bangladesh Bank has authorised that operational export-oriented industries may access special short-term loans beyond their existing working capital limits, specifically to cover wage payments for February 2026. However, the loan amount cannot exceed the average salaries and benefits disbursed by the company over the previous three months.

Key conditions of the special loan scheme are summarised in the table below:

The circular emphasises that only firms certified by their respective trade associations as export-oriented and operational—meeting the 80% export threshold and timely wage payments—are eligible for this special loan facility.

Policymakers emphasise that the initiative is not merely about ensuring wage disbursement. It aims to maintain production continuity and stabilise export earnings, which constitute a major source of foreign currency for the national economy. Any disruption in this sector could have ripple effects on overall economic stability. Industry stakeholders have welcomed the measure, viewing it as a timely step by the central bank to bolster economic resilience and preserve both employment and export performance.