Bangladesh Bank has launched a Tk 3,000 crore refinance scheme to support export diversification, giving promising non-traditional sectors a better chance to grow beside the ready-made garment industry. Bangladesh has earned global recognition through garments, but depending heavily on one major export sector can create risks when global demand, prices, or buyer preferences change. This new fund aims to strengthen production capacity in other export areas so the country can build a wider and more stable export base. The scheme will operate as a revolving fund using excess liquidity from scheduled banks. Participating financial institutions will receive refinancing at 4 percent, while exporters can receive financing at a maximum rate of 7 percent. The facility will run for three years, including a grace period of up to six months, and interest will be calculated under the reducing balance method. This can make borrowing easier for businesses that are ready to expand production but need affordable capital. The fund is designed to support sectors identified as “Highest Priority” and “Special Development” areas under the Export Policy. Preference will be given to exporters that use locally sourced raw materials, which can create stronger links between export growth and domestic production. Jute and leather have been highlighted as important areas for diversification. These sectors already have local strengths, skilled workers, and raw material connections, but they need investment, technology, quality improvement, and market access to grow further. A more diverse export base can help Bangladesh earn more foreign currency, improve trade balance, and create jobs in different regions. It can also help small and medium producers enter global supply chains if financing reaches them properly. The scheme includes clear eligibility rules to protect the fund. Loan defaulters, businesses with overdue export proceeds, and entities with a history of loan write-offs will not qualify. Participating institutions will need to sign agreements, submit documents, and report progress regularly. Bangladesh Bank will also conduct monitoring and inspections to make sure the funds are used correctly. These steps are important because refinance schemes work best when they support real production and export growth, not weak or risky borrowing. The inclusion of Islamic banks through Shariah-compliant investment modes can also widen participation. If implemented well, this export diversification fund can help Bangladesh reduce concentration risk, strengthen new industries, and build a more balanced trade future where garments remain strong while other sectors rise with them.
