Local textile industries will receive 1.50% alternative cash assistance instead of duty drawback or bonded warehouse facilities, as Bangladesh Bank (BB) unveiled a wide-ranging export incentive package covering 43 product categories.

Under the same policy, small and medium-sized enterprises (SMEs) in the garment sector will receive a 3.00% cash incentive, while exporters shipping to the Eurozone will be eligible for an additional 0.50% incentive.

In a circular issued on Sunday by the Foreign Exchange Policy Department-1, Bangladesh Bank confirmed that the revised incentive rates will be applicable for goods shipped between January 1, 2026, and June 30, 2026, aiming to strengthen export competitiveness and support diversified industrial growth.

According to the central bank, the incentive is specifically designed for local textile manufacturers that do not enjoy bonded warehouse facilities or duty drawback benefits, providing targeted relief to domestically integrated producers.

Bangladesh Bank stated that exporters seeking cash assistance must have their applications audited by external auditors, following existing regulatory guidelines.

Beyond textiles and garments, the incentive framework allocates up to 10% cash support for selected sectors such as diversified jute products, leather goods, processed agricultural products, potatoes, light engineering items, and 100% halal meat.

Exports of software and IT-enabled services will receive 6%, while individual freelancers will be eligible for 2.50%. Pharmaceuticals, motorcycles, photovoltaic modules, and ceramics are also set to receive 6%, while accumulator batteries under HS codes 8507.10 and 8507.20 will enjoy a 10% incentive.

The policy further extends cash support to enterprises operating in Bangladesh Economic Zones Authority (BEZA) areas, Bangladesh Export Processing Zones Authority (BEPZA) zones, and High-Tech Parks, with incentives ranging from 0.50% to 2.00% depending on product category and industry classification.

According to Bangladesh Bank, the initiative underscores the government’s continued focus on export diversification, value addition, and sustaining momentum in global markets, with textiles remaining a key pillar of the country’s export economy.