Govt moves to transform SME sector into key economic driver

The government has undertaken a series of initiatives to transform the country's Small and Medium Enterprise (SME) sector into a major driving force of the economy.
Over the past few months, the Investment Coordination Committee has held four consecutive meetings to accelerate policy reforms and remove bottlenecks affecting SME growth, reports BSS.
The meetings were attended by Lutfey Siddiqi, Chief Adviser's Special Envoy for International Affairs and Chair of the Committee, Dr Ahsan H. Mansur, Governor of Bangladesh Bank, Md Abdur Rahman Khan, Chairman of the National Board of Revenue (NBR), and representatives from both public and private sectors.
Participants stressed the need for direct participation of entrepreneurs in policymaking to ensure effective integration of SMEs into the mainstream economy.
Among the measures already implemented are the removal of the rule requiring 10 percent of foreign order proceeds to be compulsorily deposited in banks and a proposal from the SME Foundation to allocate each business entity an annual foreign currency quota of USD 3,000, which has been sent to Bangladesh Bank for approval.
At the meeting held on 9 October 2025 at Bangladesh Bank, several key decisions were adopted. These include the development of new SME-friendly financial products through a joint workshop by the SME Foundation and Bangladesh Bank's SME & Special Programs Department (SMESPD), and a performance review of the existing SME Master Circular to assess its effectiveness. The meeting also decided to conduct a feasibility study on offering loans up to Tk 500,000 without trade licenses and to explore the possibility of adjusting interest rates at the client level to make the refinancing scheme more attractive.
Earlier, on 28 August 2025, the Committee met at the Chief Adviser's Office to identify major SME challenges such as delays in payments, customs complexities, licensing barriers, and limited access to finance. A follow-up meeting on 21 September 2025 at the SME Foundation heard directly from entrepreneurs and prepared a set of recommendations for relevant ministries. Another online meeting on 8 October 2025 connected SME entrepreneurs from across the country to gather further feedback.
Ongoing implementation measures include strengthened NBR monitoring to simplify sample clearance, and initiatives by Bangladesh Bank to allow entrepreneurs to receive payments through digital wallets similar to ICT sector privileges.