Bangladesh Bank Retains Export Incentives

Bangladesh — Bangladesh Bank has announced the continuation of its export cash incentive scheme for the fiscal year 2026-27, keeping both the sector coverage and incentive rates unchanged from the previous fiscal year. This policy applies to 43 specified export items, with rates ranging from 0.30 percent to 10 percent. The decision aims to sustain export momentum, support diversification into non-traditional sectors, and ensure a predictable policy environment for exporters in Bangladesh. The central bank also instructed Authorized Dealers to scrutinize applications and process payments in line with existing guidelines. This move is seen as a way to safeguard Bangladesh's export competitiveness amid global demand uncertainty and rising production costs, while also giving exporters time to adjust before the country's graduation from Least Developed Country status, which will require a gradual phase-out of direct export subsidies under World Trade Organization rules.