Dhaka: Finance Minister Amir Khosru Mahmud Chowdhury today informed the parliament about ongoing efforts by the government and Bangladesh Bank to stimulate youth entrepreneurship and curb unemployment through soft-term and low-interest financial schemes.
According to Bangladesh Sangbad Sangstha, the Finance Minister, responding to a starred question from ruling party lawmaker Mohammad Abdul Malek (Sylhet-3) during the day’s parliamentary question-answer session, clarified that there is currently no interest-free loan scheme for young entrepreneurs operated by Bangladesh Bank. The session commenced with Speaker Hafiz Uddin Ahmad, Bir Bikram, presiding.
Despite the absence of interest-free loans, various refinancing facilities have been launched to facilitate access to credit under simplified terms. Khosru highlighted that the Cottage, Micro and Small Enterprise (CMSE) New Entrepreneurs Refinance Scheme has been significantly expanded from Tk 100 crore to Tk 500 crore under Bangladesh Bank’s own fund. New entrepreneurs can obtain loans up to Tk 1 million without collateral at a maximum interest rate of 7 percent, while loans up to Tk 3.5 million are available with collateral.
To further assist startups, a Tk 500 crore start-up fund has been introduced, allowing entrepreneurs to access loans at a reduced interest rate of 4 percent. Complementing these credit facilities, Bangladesh Bank has established the Bangladesh Start-up Investment Company PLC in collaboration with 39 scheduled banks, offering equity financing support to startup ventures.
The Finance Minister also emphasized skills development initiatives under the Skills for Industry Competitiveness and Innovation Program (SICIP) managed by Bangladesh Bank’s PIU-SICIP. This program provides aspiring entrepreneurs with month-long (100-hour) entrepreneurship development training in various districts, free of cost. Participants who complete the course successfully receive a training allowance of Tk 5,000, and graduates of the program are prioritized for loan facilities.
In response to a supplementary question from Bangladesh Jamaat-e-Islami lawmaker Md. Mahbubul Alam (Kurigram-3), Khosru acknowledged that addressing educated unemployment remains a significant national challenge. He noted that a substantial portion of unemployed youth in Bangladesh stems from the general education stream, as opposed to technical or vocational backgrounds.
The government is focusing on skill development programs and expanding vocational education nationwide, with an emphasis on transforming the workforce through practical skills training. Training institutions are being enhanced to offer job-oriented education, with certification systems designed to secure both domestic and overseas employment opportunities for trained youth. The Minister reiterated that the goal is to ensure participants become employable both at home and abroad through practical skills training.