The plastic industry in Bangladesh contributes about 1% of GDP and employs around 1.5 million people. The sector consists of roughly 6,000 manufacturers, including 450 export-oriented firms, producing a wide range of goods for domestic and international markets. In FY2024–25, plastics exports earned USD 203.6 million, a 21.25% year-on-year increase.

Globally, the industry currently holds about 0.5% of the USD 712 billion plastic market (2023). The government aims to raise this share to 3% by 2030, with projected export earnings of USD 22 billion by that year.

Exporters also receive cash incentives. According to the latest circular (July 10, 2025), the incentive rate is 6% for general plastic products and PET bottles, effective until 31 December 2025 (bb.org.bd). This marks a reduction from the previous 10% rate, signaling recalibration while still providing meaningful assistance.

Although there is a reduction in cash incentives, exporters will gain access to several additional measures. These include:

• Financing through the Export Development Fund (EDF)
• Long-term loans at lower interest rates
• Financial assistance for SMEs
• Planned Inter Bond Transfer (IBT) Facilities similar to those in the RMG sector

Together, these policies aim to drive sustainable export growth, expand global market share, and support manufacturers in overcoming rising production and logistics costs.

Source:

1. Bangladesh: A Thriving Global Sourcing Hub for Plastic Goods
2. Bangladesh Bank, FEPD Circular No. 28