Desk Report:
Industries Minister Khandaker Abdul Muktadir has said that there is no alternative to making Bangladesh’s economy more competitive in view of LDC graduation. In the current global context, “there is no room for not doing” – this reality requires urgent and effective steps to be taken.
He said these things while speaking as the chief guest at the agreement signing ceremony with 12 banks and 4 non-bank financial institutions under the Credit Wholesale Program organized by the SME Foundation at Hotel InterContinental in Dhaka on Thursday (April 9, 2026) night.
The Industries Minister said that in the current global economic reality, it is very important to make our industrial sector more competitive, tolerant and innovation-oriented. To achieve this goal, it is essential to ensure easy and timely financing for the SME sector.
He said that the SME Foundation, as the central coordinating institution for the development of the SME sector in the country, will be transformed into a stronger and more effective institution.
He mentioned that low-cost fuel played an important role in the development of the country’s export-oriented industries. But currently, due to the increase in fuel costs, it is becoming difficult to maintain competitiveness in many areas. Global uncertainty and various external challenges are also added to this.
The minister said that as a result of LDC graduation, many concessional loan opportunities from international development partners have already been limited and will be further narrowed in the future. As a result, internal capacity building and skill development are very important to sustainably advance the country’s economy.
He also said that about 2 to 2.2 million new working population are entering the labor market every year. Maintaining consistent GDP growth is essential for their employment. “Not only development, but we need growth at a certain rate to maintain the current position,” he mentioned.
Regarding competitiveness, the Industries Minister said that Bangladesh’s logistics costs are about 16 percent of GDP, while the global standard is about 10 percent. If this gap cannot be reduced, it will become difficult to compete in the international market.
Secretary to the Ministry of Industries Md. Obaidur Rahman said, “We are working to make entrepreneurs eligible to play a role in the country’s economic development, especially in the GDP, by supporting them.”
It is to be noted that under this agreement, the SME Foundation will provide loans of more than Tk 4 billion to micro, small and medium entrepreneurs. About Tk 3 billion will be disbursed under the Credit Wholesale Program from the Foundation’s revolving fund. An entrepreneur will receive a minimum loan of Tk 1 lakh to a maximum of Tk 25 lakh. The interest rate on this loan will be only 8%. For this purpose, the SME Foundation has signed agreements with 15 banks and financial institutions. In addition, under an agreement with the government agency Bangladesh Infrastructure Finance Fund Limited (BIFFL), with the support of the Japan International Cooperation Agency (JICA), the SME Foundation will provide Tk 125 billion in loans at 9 percent interest to cottage, micro, small and medium (CMSME) entrepreneurs in the agro-based industry and food processing sector of Bangladesh through 7 banks and financial institutions. In this project, an entrepreneur will receive a maximum loan of Tk 1 crore.
The agreement was signed by the Managing Director of SME Foundation and the CEOs of 11 partner banks and 4 financial institutions. The banks and financial institutions are BRAC Bank, City Bank, Bank Asia, United Commercial Bank, Prime Bank, Bengal Commercial Bank, Bangladesh Krishi Bank, Bangladesh Development Bank, Karmasangsthan Bank, National Credit and Commerce Bank, Trust Bank, IPDC Finance, IDLC Finance, LankaBangla Finance and United Finance.
The agreement signing ceremony was presided over by SME Foundation Chairperson and Industries Secretary Md. Obaidur Rahman. … and Bangladesh Bank Deputy Governor Nurun Nahar and Women Entrepreneurs Association of Bangladesh President Nasreen Fatema Awal were special guests. SME Foundation Managing Director Anwar Hossain Chowdhury delivered the welcome speech.
