{"id":113136,"date":"2025-11-01T23:25:10","date_gmt":"2025-11-01T23:25:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/113136\/"},"modified":"2025-11-01T23:25:10","modified_gmt":"2025-11-01T23:25:10","slug":"govt-launches-major-reforms-to-boost-smes","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/113136\/","title":{"rendered":"Govt launches major reforms to boost SMEs"},"content":{"rendered":"

The interim government has taken a number of measures to transform the small and medium enterprise (SME) sector into the main driving force of the Bangladesh economy, the Chief Adviser’s Office (CAO) said in a statement yesterday.<\/p>\n

As part of the measures, the government has scrapped the rule that required entrepreneurs to keep 10 percent of export proceeds in banks on a compulsory basis.<\/p>\n

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It has also sent a proposal to Bangladesh Bank (BB), requesting the maintenance of a foreign currency quota of a minimum of $3,000 annually for entrepreneurs to enable them to conduct international business.<\/p>\n

The decisions were taken at meetings of the Investment Coordination Committee, chaired by Lutfey Siddiqi, special envoy on international affairs to the CA.<\/p>\n

Bangladesh Bank Governor Ahsan H Mansur and National Board of Revenue Chairman Md Abdur Rahman Khan attended the meetings, along with representatives from the government and private sectors.<\/p>\n

The CA’s office said decisions were taken to design SME-friendly products, conduct a feasibility study on providing loans of up to Tk 5 lakh without a trade licence, and review the interest rate on loans for small businesses.<\/p>\n

The statement said a number of decisions \u2014 such as strengthening the NBR’s monitoring to expedite and simplify the sample clearance process \u2014 are under implementation.<\/p>\n

Besides, steps are being taken to ensure that online sales proceeds are quickly deposited into entrepreneurs’ bank accounts.<\/p>\n

Bangladesh Bank (BB) has revised the ceilings for advance payments against imports to facilitate international trade and streamline import procedures.<\/p>\n

An importer can now make advance payments of up to $20,000 without requiring repayment guarantees, up from the previous limit of $10,000, BB said in a notice in September.<\/p>\n

Similarly, the ceiling for advance payments from Exporters’ Retention Quota (ERQ) accounts has been increased from $25,000 to $50,000.<\/p>\n

The NBR has decided to resolve the complexity related to the Harmonised System (HS) Codes \u2014 the codes for goods in international trade \u2014 to support SMEs.<\/p>\n

Lutfey Siddiqi said one of the main objectives of the reforms is to increase dynamism in the economy.<\/p>\n

“Collectively, the SME sector is a huge contributor to our economy, although their voices are not heard as loudly as some large businesses,” he said.<\/p>\n

“We must help SME entrepreneurs increase their dynamism and simplify their business at every stage, from finance to payments and logistics. The government must be a facilitator, not an obstacle.”<\/p>\n

Touted as the backbone of the industrial sector, Bangladesh has around 78 lakh cottage, micro, small, and medium enterprises, which together contribute about one-fourth of the country’s gross domestic product.<\/p>\n

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