Reopening shuttered factories by rescheduling defaulted loans, providing fresh working capital and lowering borrowing rates to revive growth and protect jobs are the top priorities of newly appointed Bangladesh Bank Governor Mostaqur Rahman, officials have said.
Bangladesh Bank spokesperson Executive Director Arief Hossain Khan briefed journalists on Thursday following the governor’s first-day meeting with deputy governors and executive directors at the central bank.
“Initiatives will be taken to restart closed factories,” he said. “Steps will also be taken to revitalise the economy and boost growth to create employment.”
Appointed on Wednesday, Mostaqur Rahman arrived at the central bank at 10:40am and signed his joining letter before holding a closed-door meeting to outline his vision.
Breaking with established practice, he did not speak to reporters directly.
“My words are the governor’s words,” Arief Hossain said, adding that, unlike his predecessor, the new governor would maintain a lower public profile.
He said factory closures had hurt employment and investment, and the central bank would move to reduce borrowing costs to stimulate economic activity.
“Factories will be provided with policy support,” the spokesperson said.
Under the plan, banks will be instructed to reschedule defaulted loans and extend fresh working capital to keep industries running.
“An individual may commit a fault, but the institution can still be run. Many jobs are involved here,” he said.
Several factories linked to businessmen associated with the previous Awami League government have remained closed since the political changeover.
Addressing concerns over fresh lending to such entities, he said the move was aimed at safeguarding the wider economy.
“If 10,000 people work in a factory and they lose their jobs, it will create anarchy in society,” he said, adding that the central bank would monitor loan distribution to ensure stability.
On questions over whether such steps fall within the governor’s core mandate of currency management and inflation control, he said the objective was to restart idle industrial capacity to support overall economic recovery.
He said financial sector reform policies initiated under the previous administration would continue. “The economy was pulled back from the brink.”
“While the macroeconomy is at a low level, steps will be taken to bring momentum,” he said.
On recent unrest at the central bank, including protests and an attack on an adviser’s car, he said restoring discipline was a priority.
“An environment for such breaches of discipline will not be created in the future. Those who tried to create a mob will be brought under punishment,” Arief Hossian Khan said.
Mostaqur, who comes from the business community, also signalled efforts to lower interest rates following earlier policy relaxations that allowed rescheduling of defaulted loans.
His appointment has drawn scrutiny as he does not hold a degree in economics and previously served on the BNP election operations committee.
In 2025, his apparel company received regulatory support to regularise nearly Tk80 crore in defaulted loans.
Transparency International Bangladesh on Thursday questioned the appointment, while several economists urged him to uphold the central bank’s independence and focus on controlling inflation and safeguarding macroeconomic stability.
