The government has launched a robust series of initiatives led by the Investment Coordination Committee to transform the Small and Medium Enterprise (SME) sector into a primary driver of the national economy.
The Committee, chaired by Chief Adviser's Special Envoy Lutfey Siddiqi, and including the Governor of Bangladesh Bank and the Chairman of the National Board of Revenue (NBR), has held four recent meetings to remove policy bottlenecks.
Cash Flow and Foreign Currency: The compulsory bank deposit rule requiring 10% of foreign order proceeds has been removed. A proposal for an annual foreign currency quota of USD 3,000 for each SME entity is currently awaiting approval from Bangladesh Bank (BB).
Financing Simplification (Under Study): A key decision adopted on October 9, 2025, includes a feasibility study to offer loans of up to Tk 500,000 without requiring a trade license, aiming to expand access to finance for micro-entrepreneurs.
Export and Trade Facilitation: The central bank has increased the limit for advance payments without bank guarantees from USD 10,000 to USD 20,000, and the ERQ account ceiling from USD 25,000 to USD 50,000. The NBR also simplified customs by requiring a match of only the first four digits of the eight-digit HS code for tariff assessments.
BB and the SME Foundation will jointly develop new SME-friendly financial products and review the effectiveness of the existing SME Master Circular.
Bangladesh Bank is working to allow SME entrepreneurs to receive international payments through digital wallets, similar to the privilege granted to the ICT sector.
The committee prioritized direct participation from entrepreneurs in policymaking, holding multiple meetings (August 28, September 21, and October 8, 2025) to gather feedback on issues like payment delays, customs complexity, and licensing barriers.
Special Envoy Lutfey Siddiqi emphasized that the goal is to make the government a "facilitator, not a barrier," ensuring SMEs can operate easily across financing, payments, and logistics to enhance overall economic dynamism.
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