Govt to reduce bank interest rate to encourage new investment: Commerce minister

Commerce Minister Khondaker Abdul Muktadir on Wednesday said the government will reduce the bank interest rate to help encourage new investment and sustain the existing business growth.

"Energy crisis and double-digit bank interest rate are the major problems that industries are suffering," he said, adding that 13 to 14 per cent high bank interest rates are not conducive for the labour-intensive textile and garment sector which profit margins are low.

Regarding the gas crisis, he said the problem is not created by the current government but was inherited with a 1400 mmcf to 1700mmcf gap between supply and demand.

The minister was speaking while addressing the inaugural session of the four-day-long BTKG at International Convention City, Bashundhara, in the capital.

The Bangladesh International Textile, Knitting and Garment Industry Exhibition (BTKG Expo 2026) 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.

Without giving further details on the government plan, the minister said they are planning to generate 10,000 megawatt solar power through the private sector while the government would facilitate.

The government is also taking measures to simplify business through providing provisional permissions/licenses to start business activities immediately after application for the same.

He further noted that NBR is going to take measures for a business-friendly environment, while the government would reduce logistics cost to 10 per cent within the next two years and increase tax net.

Earlier, speaking there, Bangladesh Employers Federation president Fazlee Shamim Ehsan requested the government to develop a bipartite mechanism to address NBR-related issues to ease doing business.

Mohamnad Hatem, BKMEA president, sought budgetary measures to address the sector's problems.

Organizers said the industry must move towards more technology-driven, efficient and sustainable production systems to remain competitive globally.

They expressed the hope that such an international exhibition would help the sector move forward.

The exhibition aims to help the industry recover and attract international buyers by showcasing its technological capabilities.

Munni_fe@yahoo.com