Major industrial groups seek Tk 165.5b bailout funds

Constrained by stated severe liquidity crunch in the country's industrial sector, eleven conglomerates seek some Tk 165.5 billion in interest-free loans from the government to sustain operations and meet staff-payment obligations, sources say.

The SOS (save our soul) appeal comes from Noman Group, Rangs Group of Companies, TVS Auto Bangladesh LTD, Rashid Group, The Delta Group of Industries, Deluxe Apparels Ltd, SIM Fabrics Ltd, Trust Fabrics & Knitting (Pvt) Ltd, Mozaffar Hossain Spinning Mills Ltd, Nuruzzaman Auto Rice Mills & Agro Industries Ltd and Pharma Solutions.

They have submitted the request to the Ministry of Labour and Employment (MoLE), citing inability to pay out regular wages and allowances to workers and employees, clear arrears and pay bonuses, and operations costs.

The ministry is learnt to have already written to Financial Institutions Division (FID) and Bangladesh Bank (BB) under the Ministry of Finance for next course of action about the groups to facilitate necessary financial and policy assistance.

In August, September and October 2025, Deshbandhu Group, Jamuna Group, IFAD Group, Rangs Group, Nightingale Fashion, TNZ Group, RH Denim & Recycling Composite, Faiyaz Composite, and JS Link had sought Tk 72.70 billion as financial support--in the wake of largely domino effect of the political upheavals and regime change.

The government disbursed Tk 5.25 billion to Beximco Group in February last year to settle outstanding dues of its workers and employees, according to official sources.

Of the amount, Tk 3.26 billion was released from the Ministry of Finance, while the remaining Tk 2.0 billion came from the Central Fund managed by the Ministry of Labour and Employment.

Over the past two years, the government has extended around Tk 7.07 billion in loans to 12 companies, including Beximco, to help them meet wage obligations and maintain industrial stability.

The breakdown of the requisitioned bailouts shows Noman Group has sought an interest-free financial loan of Tk 50 billion to pay salary arrears, maternity benefits and other service benefits to the workers, employees and officers of its associate industrial enterprises.

Rashid Group has sought an interest-free loan facility of 11 billion from the labour and employment ministry for regular staff payment and keeping its factory running.

Delta group appeals for Tk 40 billion to provide regular staff salary from the ministry to keep factory production on stream.

Pharma Solutions has requested interest-free loan worth Tk 7.50 billion to meet similar obligations.

Rangs Group of Companies places a requirement of Tk 18 billion, TVS Auto Bangladesh needs Tk 15 billion, Deluxe Apparels Limited seeks Tk 10 billion, Nuruzzaman Auto Rice Mills & Agro Industries Ltd wants Tk 2.0 billion and Trust Fabrics and Knitting (Pvt) Ltd needs 1.0 billion for providing regular payment of salaries to all workers, officers and employees and to keep the factory operational.

Also on the list of crunch-ridden businesses seeking succour is MOZAFFAR HOSSAIN SPINNING MILLS LTD that requests Tk 4.0 billion. And SIM FABRICS LTD has sought Tk 7.0 billion for a repayment period of 5 years with a six-month grace, citing much the same exigencies.

The groups' pleas come at a time when the banking sector is reeling from record-high non-performing loans (NPLs) that incapacitate the bankers to extend industrial finances.

Latest data indicate that defaulted loans had surged to Tk 6.44 trillion by September 2025, accounting for nearly 35 per cent of total outstanding credits.

Contacted, representatives of two of the applicant groups regretted any comment.

A senior representative of one of the applicants, on anonymity, said, "With the domestic credit line nearly frozen, we are looking at a potential production halt."

He mentions that entrepreneurs are reportedly reluctant to take new loans as rates hover between 12 per cent and 15 per cent, driven by the central bank's efforts to tame inflation.

Secretaries of the FID and Labour and Employment ministries Nazma Mobarek and Dr Md. Sanwar Jahan Bhuiyan, respectively, could not be reached regarding the matter.

A senior official of the commerce ministry says as the nation approaches its scheduled graduation from the Least-Developed Country (LDC) status in November 2026, "four bad scenarios"-characterized by high inflation, high interest rates, low investment, and low growth-now threaten long-term economic stability.

"The government remains in a precarious position. Granting a multi-billion bailout fund could fuel inflationary pressures," he told The Financial Express.

However, industry insiders argue that the 'cost of inaction'-in terms of job losses and export decline-would be far higher.

With a crucial national referendum scheduled for February 12, the business community is looking for a clear roadmap that balances financial-sector discipline with the immediate survival needs of the country's industrial base, the insiders have said.

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