Bangladesh Bank unveiled a BDT 600 billion stimulus package about two and a half months ago to reopen shuttered factories and revive the stalled economy, subsequently issuing guidelines for its 15 sector-specific schemes. Yet execution has dragged, drawing complaints from both officials and industry figures.

This inertia extends well beyond the stimulus. A range of other central bank policy support measures introduced in recent months are moving at a crawl, including a special loan rescheduling and exit facility designed to shrink mounting bad debt. That scheme has bred hesitation and unease, compounded by a new requirement from Bangladesh Bank forcing beneficiaries to withdraw all pending lawsuits.

The regulator mandated in a July 29 circular that any customer seeking stimulus or policy support must first drop all litigation — including writ petitions — filed against the government, Bangladesh Bank and the lender concerned. Applicants must also submit an affidavit confirming they have no outstanding cases against these entities.

Business owners contend the requirement throws the entire relief effort into doubt, warning that defaulted borrowers who withdraw their lawsuits to apply for the incentives or policy support risk losing their legal safety net if they ultimately receive neither.

Bank executives counter that litigation and policy support applications cannot run in parallel. Applicants must withdraw their cases to receive assistance, a step they argue would clear court backlogs and help pare down the banking sector’s non-performing loans.

“Right now there are policies, but no customers. Policy support schemes typically attract few applicants in the first place, which also keeps their implementation rate low,” Mashrur Arefin, chairman of the Association of Bankers, Bangladesh and managing director of City Bank, told Bonik Barta.

Arefin added: “A customer can’t pursue a lawsuit while also applying for policy support. The two can’t run together. The central bank’s incentive packages are now moving towards implementation.”

Bangladesh Bank itself concedes the implementation of the stimulus and policy support has been slow. Its executive director and spokesperson, Arif Hossain Khan, told Bonik Barta: “The incentive packages and policy support were designed for the exceptional situation facing business, trade and the economy. That’s why implementation is proceeding a little slowly. But the packages for reviving the rural economy, including agriculture, are moving at a good pace. We are holding a series of meetings with scheduled banks.”

Khan noted that policy supports such as the special rescheduling facility with an exit policy were not mandatory and would be implemented based on the relationship between banks and their customers.

“How can policy support be extended when a customer still has a case pending against the bank? Both sides must compromise. That will reduce non-performing loans and spur the economy,” he added.

Bangladesh’s private sector has been facing an investment drought for several years, with credit flow slumping to a historic low. Central bank data shows private sector credit grew by just 4.47 percent in June 2026 — far short of the 8.5 percent target set even under a contractionary monetary stance.

The credit squeeze is dragging down the country’s investment-to-GDP ratio, which fell from 30.95 percent at the end of the 2022–23 fiscal year to 27.93 percent by the close of 2025–26. Private investment took the heaviest blow. Its share of GDP slipped from 24.18 percent to 21.53 percent over the period, according to the Bangladesh Bureau of Statistics.

Bangladesh Bank unveiled the BDT 600 billion stimulus package on May 23 to revive the stagnant economy. Governor Md Mostaqur Rahman said BDT 410 billion would come from commercial banks’ surplus liquidity as a refinancing facility, with the central bank providing the remaining BDT 190 billion. The scheme is expected to generate 2.5 million jobs.

Detailed guidelines for the 15 schemes followed over the past two months. On June 29, the central bank announced an exit policy to curb non-performing loans, easing earlier strict conditions for waiving accrued and unaccrued interest on bank debt.

A July 29 circular then introduced a catch: any customer seeking stimulus or policy support must first drop all litigation — including writ petitions — against the government, Bangladesh Bank or the lender concerned, and submit an affidavit confirming no cases remain pending. The condition drew a mixed response from businesses.

The Bangladesh Garment Manufacturers and Exporters Association, the country’s main apparel trade body, is preparing to write to the governor.

BGMEA President Mahmud Hasan Khan told Bonik Barta: “Our members are worried. If they withdraw their cases and then fail to secure policy support, they risk being classified as defaulters with no safety net left.”

He argued that if borrowers must withdraw their lawsuits to pursue policy support, they should be required to submit proof of withdrawal only after the relevant bank’s board approves the support and before the decision takes effect.