Culture & Entertainment · Bangladesh Bureau
Bangladesh releases only 2.8% of factory revival fund allocation
The government has disbursed a mere Tk 5.61 billion of the Tk 200 billion earmarked for reopening shuttered factories, raising concerns about the effectiveness of the industrial rehabilitation programme.
LSN Bangladesh ·
Slow disbursement of funds meant to revive closed manufacturing units has emerged as a significant bottleneck in Bangladesh's efforts to restore industrial capacity. With only 2.8 percent of the allocated amount released to date, the initiative to restart non-operational factories faces substantial implementation challenges.
The Tk 200 billion allocation was designed to provide financial support to factory owners and entrepreneurs seeking to resume production at shuttered facilities. However, the sluggish pace of fund release suggests bureaucratic hurdles, stringent verification procedures, or insufficient demand from prospective beneficiaries may be hampering the distribution process.
Industrial experts and business analysts have expressed concern that the slow disbursement could undermine government objectives to boost employment and economic activity through factory reactivation. The gap between allocated and released funds indicates that many eligible enterprises may not be accessing support in time to make reopening decisions.
The situation highlights persistent challenges in implementing large-scale economic stimulus programmes in Bangladesh, where fund utilization often lags significantly behind budgetary allocations. Authorities have not issued detailed explanations regarding the reasons for the substantial shortfall or provided timelines for accelerating disbursements to manufacturing units awaiting support.