Nearly Tk 12,000cr of private sector stimulus disbursed

By the Editorial Team · Monday, October 19, 2026

Bangladesh Bank has disbursed about Tk 12,000 crore from a Tk 60,000 crore stimulus package intended to revive businesses and boost private sector investment, with significant delays in certain sectors like agriculture and rural development. Procedural challenges and strict loan eligibility criteria have slowed fund distribution, though officials expect improvements as banks adapt to the scheme’s requirements.

Bangladesh Bank has disbursed approximately Tk 12,000 crore of a Tk 60,000 crore stimulus package by mid-October, aimed at reviving struggling businesses, reopening closed factories, and promoting investment and employment in the private sector. The package, announced in May, intends to support economic recovery through two main components: a Tk 41,000 crore refinancing fund sourced from banks with excess liquidity and a Tk 19,000 crore fund drawn from Bangladesh Bank’s own resources, backed by a government guarantee.

According to the central bank’s latest progress report, more than Tk 2,500 crore remains in the process of disbursement. However, several targeted groups—including unemployed youths—have yet to receive any financial support.

Performance across the scheme’s various segments has varied significantly. The export pre-shipment credit refinance scheme led disbursements, releasing Tk 6,917 crore, surpassing its Tk 5,000 crore target by 38 percent. The cottage and micro sector entrepreneurs special scheme disbursed Tk 2,500 crore, meeting 50 percent of its Tk 5,000 crore goal, while the creative economy scheme fully utilized its Tk 500 crore allocation. Other segments, including the CMSME working capital refinance fund, disbursed Tk 908 crore against a Tk 5,000 crore target, and the overseas employment financing scheme released Tk 200 crore of its Tk 1,000 crore allocation.

In contrast, rural development-focused schemes recorded minimal disbursement. The agriculture and rural food security refinance scheme, with a sizable Tk 10,000 crore allocation, accounted for only Tk 293 crore disbursed, roughly 3 percent of its target. Similarly, the agro-based special economic center in North Bengal saw only Tk 49 crore released against a Tk 3,000 crore allocation.

Syed Mahbubur Rahman, former chairman of the Association of Bankers, Bangladesh, cited procedural delays as a major factor slowing loan distribution. He noted that standard loan processes typically take two to four months, with additional complexities involved when dealing with previously closed factories. Rahman also highlighted challenges in complying with the package's strict guidelines, such as the requirement that loans be granted only to applicants with no record of money laundering—a condition difficult for banks to verify conclusively.

Moreover, Rahman pointed out that loan distribution depends on applicants coming forward, but many have refrained from applying due to issues like gas shortages and economic uncertainties. The necessity for banks to assess the likelihood of loan repayment before disbursing funds further complicates implementation. Despite these hurdles, he suggested that loan distribution may improve gradually as processes develop and banks gain more experience with the scheme.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.