The government of Bangladesh will provide cash incentives for leather products manufactured in exporters' own factories, as well as in 100 percent export-oriented manufacturing companies, according to a new circular issued by the Foreign Exchange and Policy Department of Bangladesh Bank on Thursday.

The circular specifies that, per government decision, cash assistance will be extended to 100 percent export-oriented manufacturing companies, and also for the export of leather products produced in their own factories. Other existing instructions related to cash assistance will remain unchanged.

Historically, the government has offered 15 percent cash assistance to support the leather sector for fully export-oriented companies. However, following advice from the International Monetary Fund (IMF), cash assistance was reduced for 43 products, including leather, earlier this year. On January 30, the government decided to lower the cash assistance for leather and leather products from 15 percent to 12 percent.