Mohammad Ali Khokon, President of the Bangladesh Textile Mills Association (BTMA), has called on Bangladesh Bank to extend its refinancing facility to the textile industry, aiming to facilitate its modernization.
The Central Bank introduced a TK 10 billion refinancing scheme in 2021 to modernize and enhance the country's export-oriented sectors. This scheme offers loans at a rate of 5 to 6 percent for a period of three to ten years, with a grace period of one year.
BTMA has also urged the commerce ministry to include the country's textile sector in the new export policy for 2023-26. The current Export Policy for 2021-24 prioritizes denim, MMF, home textiles, décor, terry towels, and recycled products, overlooking crucial sectors like spinning, fabric manufacturing, dyeing, printing, and finishing.
The primary textile sector in Bangladesh has seen an investment of approximately $16.00 billion, contributing around 13 percent to the country's GDP. According to BTMA data, this sector generates over 84 percent of the country's export earnings. The export earnings for the fiscal years 2018-19, 2019-20, 2020-21, 2021-22, and 2022-23 amounted to $21.9 billion, $18 billion, $20.9 billion, $28.8 billion, and $31.03 billion, respectively.
