DHAKA -- Bangladesh has begun a process of unwinding subsidies and preparing to graduate out of Least Developed Country status in 2026, prompting an outcry from the crucial apparel industry but also cautious optimism from some experts.
Just weeks after a controversial "one-sided" election in which Prime Minister Sheikh Hasina secured a new five-year term, the central bank at the end of January announced it was cutting export incentives, specifically targeting the country's main export earner -- the ready-made garment (RMG) sector. According to the bank's circular, the step was taken in compliance with the World Trade Organisation's regulations, which prohibit such incentives once a country transitions out of the least-developed group.
