Bangladesh Bank has delivered major good news aimed at boosting the exports of the domestic textile and ready-made garment (RMG) sectors and enhancing competitiveness in the global market. The cash assistance rate, which is provided as an alternative to duty bond and duty draw-back facilities for the export-oriented domestic textile sector, has been increased more than threefold in a single jump.

This decision was announced on Sunday (July 12) through a circular issued by Foreign Exchange Policy Department-1 of the central bank. This assistance is expected to have a highly positive impact on the ready-made garment (RMG) sector. According to the new directive from Bangladesh Bank, the declared cash assistance rate against exports for the 2026-27 fiscal year has been raised from 1.50% and is now directly fixed at 5%. As per this announcement by the central bank, this increased cash assistance will be fully applicable to goods shipped between July 1, 2026, and June 30, 2027. However, some specific conditions have been attached by Bangladesh Bank for exporters to qualify for this massive, threefold benefit. To receive this facility, the exporting institution must be a valid member of BGMEA, BKMEA, or other recognized sector-related associations. Furthermore, specific and valid proof regarding the sourcing of raw materials—especially yarn and fabric—from domestic sources must be submitted at the time of application. In this regard, all other previously applicable directives, particularly the core provisions of the relevant foreign exchange circulars of 2001 and 2003, will remain in force as usual. Industry insiders believe that this timely decision by the government will have a multifaceted positive impact on Bangladesh's ready-made garment and textile sectors.

As a result of this incentive, exporters will be more interested in using domestic yarn and fabric by reducing their dependence on foreign raw materials. This will be helpful in increasing local value addition and promoting the growth of local industries. At the same time, Bangladesh's RMG sector will be in a stronger position during price negotiations with competing countries in the international market. Welcoming the decision, entrepreneurs in the apparel sector said that this increased cash assistance will act as a major booster dose for the country's economy to keep exports active and maintain growth amidst the current global economic situation.