The interim government has unveiled a series of policy reforms aimed at positioning small and medium enterprises (SMEs) as the main engine of Bangladesh’s economic growth, according to a statement from the Chief Adviser’s Office (CAO).

Among the measures, the government has withdrawn the rule requiring entrepreneurs to keep 10 percent of their export proceeds in banks, a step expected to boost liquidity and ease business operations for exporters.

It has also requested that the Bangladesh Bank introduce an annual foreign currency quota of at least $3,000 for SME entrepreneurs to facilitate international transactions and participation in global trade fairs.

The decisions were taken at meetings of the Investment Coordination Committee, chaired by Lutfey Siddiqi, the Chief Adviser’s special envoy on international affairs. Bangladesh Bank Governor Ahsan H Mansur and National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan also attended, alongside representatives from the public and private sectors.

The CAO stated that the committee agreed to design SME-friendly banking products, conduct a feasibility study on providing loans of up to Tk 5 lakh without a trade license, and review interest rates on small business loans.

Efforts are also underway to ensure online sales proceeds reach entrepreneurs’ bank accounts more swiftly and to streamline customs clearance through enhanced NBR monitoring.

Recent regulatory changes complement these initiatives. In September, Bangladesh Bank doubled the ceiling for advance payments against imports from $10,000 to $20,000 without requiring repayment guarantees.

It raised the limit for payments from Exporters’ Retention Quota (ERQ) accounts from $25,000 to $50,000. The NBR has also moved to simplify the Harmonised System (HS) Codes to reduce trade complexities for SMEs.

“The SME sector collectively represents a major part of our economy, though larger businesses often overshadow their voices,” Siddiqi said. “We need to help them grow by simplifying every aspect of their operations — from finance to payments and logistics. The government must act as a facilitator, not a barrier.”

Bangladesh has an estimated 7.8 million cottage, micro, small, and medium enterprises, contributing roughly one-fourth of the country’s gross domestic product and employing millions across urban and rural areas.

The new measures, officials stated, are designed to enhance the sector’s role in driving post-crisis recovery and fostering long-term economic resilience.