The temporary Bangladeshi government has given its backing to a deal to move garment factories away from capital Dhaka.

The deal was signed by Bangladesh Small and Cottage Industries Corporation, a body of the industries ministry, and the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

In addition, the plan is being financially aided by the World Bank, said officials who announced the deal.

The plan is an attempt by the industry to reduce the number of political interferences, which often result in shutdowns. Strikes and demonstrations are common in the country, whose unstable government is currently backed by the army.

Relocating factories will cost a total of BDT3.1bn (US$45m), 60% of which will come from the World Bank and the rest being provided by the government, according to BGMEA officials.

During the first phase of the plan, about 1,000 out of a total of 3,000 of Dhaka's factories would be moved to a textile park in Baushia.

The clothing sector provides Bangladesh's largest portion of export earnings.