Govt to cut interest rates to spur new investment

Commerce Minister Khandaker Abdul Muktadir on Wednesday said the government will reduce the bank interest rates to help encourage new investment and sustain the existing business growth.
"Energy crisis and double digit-bank interest rates are the major problems facing industries," he said, adding that interest rates of 13 to 14 per cent are not conducive to labour-intensive sectors like textiles and garments, where profit margins remain low.
Regarding the gas shortage, he noted that the current government inherited the problem, citing a supply-demand gap of 1,400-1700 mmcfd.
The minister was speaking at the inaugural session of the four-day Bangladesh International Textile, Knitting and Garment Industry Exhibition (BTKG Expo 2026) at the International Convention City, Bashundhara in the capital. The expo is jointly organised by BKMEA and Inforchain Digital Technology Co Ltd.
Organisers said more than 1,000 exhibitors from 30 countries will display modern textile machinery, dyes and chemicals, knitting and weaving technologies, embroidery, cutting and sewing equipment, and washing and dry-cleaning technologies at around 1800 booths.
The minister said they are planning to generate 10,000 megawatt solar power through the private sector, with support from the government.
The government is also taking measures to simplify doing business by providing provisional permissions or licenses immediately after submission of application, he said.
He further noted that the NBR is set to introduce business-friendly measures, while the government aims to reduce logistics cost to 10 per cent within the next two years and expand the tax net.
Earlier, Bangladesh Employers Federation President Fazlee Shamim Ehsan requested the government to develop a bipartite mechanism to address NBR-related issues to ease doing business.
BKMEA President Mohamnad Hatem sought budgetary measures to address the sector's problems.
Munni_fe@yahoo.com