Written by The Banking Post
Bangladesh Bank has extended the payment period for imports of industrial raw materials and agricultural inputs to 360 days, doubling the previous limit of 180 days. Importers will now have until December 31, 2025, to clear their bills.
The central bank issued a circular on Monday through its Foreign Exchange Policy Department, saying the measure aims to keep the supply chain stable while easing pressure on the country’s foreign currency reserves.
The relaxed rules apply to back-to-back imports, agricultural inputs, and fertilizer imports, as well as suppliers’ and buyers’ credit for raw materials. However, the facility will not cover imports financed under the Export Development Fund (EDF).
Industry insiders say the move offers importers breathing space at a time when the dollar shortage has made trade financing increasingly difficult. “The extended deadline will help conserve foreign exchange as import payments can now be delayed,” one market observer said.
Earlier this year, the Bangladesh Textile Mills Association (BTMA) had formally requested the central bank to extend the credit period, citing difficulties in sourcing raw materials due to exchange rate volatility and disruptions in gas and power supply.
BTMA, the country’s largest primary textile body with around 1,850 member mills, represents investments worth nearly $22 billion. The sector supplies about 70% of raw materials for the apparel industry, which accounts for over 80% of Bangladesh’s export earnings.
By granting the extension, the central bank has effectively responded to long-standing demands from manufacturers struggling with high input costs and a volatile currency market.
