Bangladesh will continue providing export incentives for 43 sectors during the first half of the 2025-26 fiscal year, as per a circular issued by Bangladesh Bank on 10 July.

The government’s cash support, which ranges from 0.30 percent to 10 percent depending on the product, will apply to shipments made from 1 July to 31 December.

This support mirrors the incentive scheme in place throughout the 2024-25 fiscal year. According to the circular, the highest rate of 10 percent will apply to exports of vegetables, fruits, processed agricultural goods, diversified jute products, halal meat and meat products, accumulator batteries, leather goods, potato peels, and light-engineering products.

While welcoming the continuation of support, business leaders expressed concern over the limited six-month timeframe. Industry representatives argue that persistent economic challenges, both domestic and international, require sustained policy support to stabilise export growth and maintain competitiveness.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said the central bank should clarify its plan for the second half of the fiscal year. “Without a clear direction, it will adversely affect marketing and export planning,” he said.

Hatem also criticised the bureaucratic hurdles exporters face when claiming cash incentives, highlighting the difficulties imposed by audits from Bangladesh Bank and the National Board of Revenue. He urged the government to streamline the process, suggesting that banks be authorised to disburse incentives directly, similar to remittance incentives.

He further warned that while competitor countries continue offering export incentives, Bangladesh risks losing ground by reducing support amid its transition from Least Developed Country status and under International Monetary Fund recommendations.