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The government plans to reduce bank interest rates to encourage fresh investment and support business expansion, Commerce Minister Khondaker Abdul Muktadir said on Wednesday.

He said high lending rates and the ongoing energy shortage are now the two biggest challenges facing industries. Borrowing costs of 13 to 14 per cent are particularly difficult for labour-intensive sectors such as textiles and garments, where profit margins remain thin.

“Double-digit bank interest rates are not suitable for the textile and garment sector,” he said while inaugurating the four-day Bangladesh International Textile, Knitting and Garment Industry Exhibition (BTKG Expo 2026) at the International Convention City Bashundhara in Dhaka.

The minister said the gas shortage was inherited from previous administrations, with a supply gap of 1,400 to 1,700 million cubic feet per day (mmcfd) between demand and available supply.

Without detailing the financing plan, he said the government is also targeting 10,000 megawatts of solar power generation through private-sector participation, with state support.

He added that steps are being taken to simplify business operations by allowing provisional approvals and licences immediately after application, enabling companies to start activities faster.

The National Board of Revenue (NBR) is also preparing business-friendly measures, while the government aims to cut logistics costs to 10 per cent within the next two years and widen the tax net, he said.

The BTKG Expo 2026 is jointly organised by the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and Inforchain Digital Technology Co Ltd.

Organisers said more than 1,000 exhibitors from 30 countries are showcasing textile machinery, dyes and chemicals, knitting and weaving technologies, embroidery, cutting and sewing equipment, and washing and dry-cleaning solutions across around 1,800 booths.

Earlier, Bangladesh Employers Federation President Fazlee Shamim Ehsan urged the government to create a bipartite mechanism to resolve NBR-related issues and improve ease of doing business.

BKMEA President Mohammad Hatem also called for budgetary support to address challenges facing the sector.

Organisers said the industry must adopt more technology-driven, efficient and sustainable production systems to remain globally competitive and attract international buyers.