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Published : 29 Apr 2026, 08:41 PM
Bangladesh plans to bring bank lending rates down to a single digit to create a more investment-friendly environment in the country, Commerce Minister Khandakar Abdul Muktadir has said.
He also announced initiatives to simplify the business licensing process, including issuing provisional licences upon application, as well as plans to increase gas supply by setting up new floating storage and regasification units (FSRU).
Speaking at the inauguration of a four-day exhibition at the International Convention City Bashundhara (ICCB) in Dhaka on Wednesday, the minister said interest rates of 13 to 14 percent make it impossible for industries such as textiles to survive.
“Such interest rates may be tolerable for high-tech or capital-intensive industries, but not for labour-intensive, low-margin sectors like ours,” he said.
Although the ready-made garment sector plays a key role in employment generation and economic growth, the minister identified the energy crisis and high lending rates as major challenges.
Highlighting the energy situation, he said Bangladesh currently faces a daily gas shortage of 1,400 to 1,700 million cubic feet.
While the government is interested in increasing LNG imports, infrastructure limitations remain a major obstacle.
He said a new tender will soon be issued for additional floating terminals to increase gas supply.
In the long term, the government plans to generate 10,000 megawatts of solar power, with the private sector expected to play a leading role, supported by policy and logistical assistance from the government.
Addressing the difficulties in starting a business, the minister said entrepreneurs currently need to obtain 25 to 26 licences, which discourages foreign investment.
“We are working on a system where provisional approval will be granted immediately upon application so that entrepreneurs can start operations quickly,” he said.
He also said steps are being taken to simplify bond and tax-related procedures to create a more business-friendly environment.
The exhibition, titled “Bangladesh International Textile, Knitting and Garment Industry Expo”, is jointly organised by the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and Infarchain Digital Technology Company Limited.
According to organisers, 900 exhibitors from 28 countries are participating in the event, which will run until May 2.
Companies from Canada, China, Japan, India and others are showcasing modern textile and garment machinery, dye chemicals and new technologies across a 20,000 square metre area.
