The government has increased charges and fees by up to 100 percent for passenger and cargo vessels operating in inland and coastal waters. Transport operators and businesses say the move could push up logistics costs for essential goods ranging from food items to construction materials.

The revised rates, announced by the shipping ministry last month, are scheduled to take effect from July 1.

From the next fiscal year, cargo vessels, bulkheads, fishing boats and other vessels will be required to pay Tk 100 per gross tonne as a conservancy charge, up from the current Tk 40.

Launch operators will have to pay Tk 150 annually per passenger as a conservancy charge, up 30 percent from Tk 115.

The pilotage fee will rise to Tk 750 for every eight-hour period, up from Tk 500, according to the notification issued by the shipping ministry, which has raised rates for services provided by the Bangladesh Inland Water Transport Authority (BIWTA).

The government last raised the rates in 2019.

The increased rates include berthing and mooring charges for all vessels, including goods-carrying and passenger transport vessels.

“We have already lost a lot of passengers due to the Padma Bridge. We are incurring losses because of a dearth of passengers. The increased charges and fees will hit us further as we lose passengers,” said Akter Hossain, director at Sundarbans Navigation Company Ltd, operator of the Sundarban launch service on the Dhaka-Barishal waterway.

He said launches operating on these routes are already charging fares below the officially fixed rates amid falling demand.

Cargo vessel and oil tanker operators said the higher charges would increase transportation costs.

Nazmul Hussain Hamdu, senior vice-president of the Coastal Ship Owners Association of Bangladesh, said the changes would affect everyone in the value chain.

“We will have no way but to hike rental rates. So, we will feel the hit initially. Later, everyone will be affected,” he said, adding that cargo vessels carry a wide range of raw materials and essential goods.

A large volume of goods is imported through Chattogram Port, where cargo is unloaded from mother vessels before being transported by lighter vessels to factories and other destinations across the country.

“From raw materials for cement to wheat, salt, pulses and stones, the list of items we handle is quite long,” he said.

Cement industry stakeholders said manufacturers depend heavily on inland waterways to transport imported inputs such as clinker, limestone, slag, fly ash and gypsum. Cement is also shipped across the country through the same network.

On condition of anonymity, an official at a cement manufacturer said the increased charge would raise production costs by more than Tk 3 per bag.

Mohammad Iqbal Chowdhury, chief executive officer of LafargeHolcim Bangladesh PLC, which is mostly owned by foreign investors, said the industry is going through a tough time due to slowing construction activity.

“The demand remains stagnant. Higher energy prices and increased raw material costs due to the war in the Middle East have dealt a further blow to the sector. At this stage, any rise in water transport-related costs will affect the supply chain,” he said.

Md Aminul Islam, managing director and chief executive officer of Nabil Group of Industries, estimated that transporting commodities such as wheat, lentils, soybean meal and maize would increase by Tk 36 per tonne through waterways.

He said inland waterways account for as much as 90 percent of transport for essential commodities.

“We ship commodities to various hubs such as Barishal and Ashuganj through lighter vessels after unloading them from mother vessels at the port,” he said.

“So, ultimately the increased cost will fall on customers,” he said.

Inflation has been staying above 8 percent for more than three years, with no sign of easing despite a tight monetary policy maintained by the Bangladesh Bank for more than a year and a half.

Cargo operators said business has declined as several large business groups now use their own vessels to move goods from ports to factories and distribution points.

Kazi Abdul Karim, legal affairs secretary of the Bangladesh Cargo Vessel Owners’ Association, said operators will not be able to pass on higher costs due to slowing imports and higher vessel supply.

A former executive committee member of the Bangladesh Oil Tanker Owners’ Association said the construction of a petroleum pipeline between Chattogram and Dhaka has affected the revenue of oil tanker owners.

“We are transporting roughly 45 percent less petroleum than in the past,” he said.

The International Monetary Fund has sought a time-bound action plan covering reforms in revenue mobilisation and the banking sector, in light of Bangladesh's new loan proposal.

According to finance officials, the global lender has proposed that Bangladesh introduce a single value-added tax (VAT) rate of 15%, and impose a turnover tax as part of broader fiscal reforms.

On the banking side, the IMF has called for a clear roadmap to reduce non-performing loans, merge weak financial institutions, and end government interference in bank management.

A senior official said Bangladesh supports a unified VAT system, but prefers a rate not exceeding 10-12%. The government is also not ready to introduce a turnover tax immediately, he said, arguing that improvements in accounting systems should come first.

"The government is also interested in reforms in the banking sector and has passed the Bank Resolution Act. However, the IMF has raised objections to a new provision in the law related to the return of ownership of merged banks. The government has, however, taken a policy decision to remove this provision in order to satisfy the IMF," the official said.
Infographic: TBS
Infographic: TBS

Loan deal likely in December

In 2023, the then Awami League government signed a $4.7 billion loan agreement with the IMF. The interim government later increased the programme to $5.5 billion. The loan was to be disbursed in seven installments, of which the IMF released $3.7 billion in five tranches.

However, the IMF withheld further installments, citing unmet conditions. In response, the BNP government proposed cancelling that agreement and signing a new loan deal on 1 June.

To review the proposal, an IMF delegation is due to visit Bangladesh mid-July, officials said. Final discussions are expected at the IMF and World Bank Group's Annual Meetings in Thailand on 12-18 October, based on the mission's findings.

If both sides agree on the terms, the deal could be signed in December.

Finance ministry sources said Bangladesh's current quota at the IMF stands at 1,066.6 million Special Drawing Rights (SDR), the IMF's internal reserve asset.

Under IMF rules, a country can access up to 435% of its quota under standard lending arrangements. This means Bangladesh could borrow about 4,640.71 million SDR, or roughly $6.15 billion at current exchange rates, over the long term.

Bangladesh has already utilised 2,886.57 million SDR under various IMF programmes. After accounting for outstanding obligations, the country can still access up to 1,754.14 million SDR, or around $2.32 billion.

Officials said the government is seeking an additional $1.68 billion from the IMF to support climate resilience and broader efforts to strengthen economic capacity. This would bring the total proposed new programme size to around $4 billion.

IMF loans serve as benchmark

An official said the scale of IMF financing is not the only consideration. He noted that IMF programmes serve as a benchmark for a country's economic credibility and rating.

Such assessments are also used by other international lenders and development partners when making financing decisions. In the absence of an IMF programme, countries rely on the IMF's Article IV consultations, which are less detailed than programme-based reviews.

"This is why the government is keen to enter a programme," he said.

He added that the proposed new fiscal budget has projected a deficit of Tk243,000 crore. To finance this gap and repay existing obligations, the government expects Tk155,850 crore from external sources. Of this, Tk43,841 crore has been earmarked as budget support.

In the current fiscal year, Bangladesh has received about $2.5 billion in budget support. This includes $1 billion from the Asian Development Bank, $300 million from the Japan International Cooperation Agency, $600 million from the Asian Infrastructure Investment Bank, and $600 million from the World Bank. However, a significant portion of the World Bank and AIIB funding was repurposed from project loans and counted as budget support.

India’s imports of liquefied petroleum gas (LPG) from the US are set to top 1 million metric tons in June, a record high, industry sources said, as New Delhi turned to costlier suppliers to offset disruption from the Middle East.

Before the US-Israeli war on Iran and the closure of the Strait of Hormuz, India depended on Middle Eastern producers for 90 percent of its LPG imports, which totalled about 2 million tons per month.

Imports of LPG, widely used as cooking fuel in Indian households, declined to as low as 696,000 tons in April because of the strait blockade, government data showed.

The imports, however, recovered to 1.15 million tons in May, the data showed.

Before the disruption, New Delhi had planned to raise US LPG purchases to about 10 percent of total imports as part of its effort to rebalance trade with Washington.

The closure of the waterway accelerated spot buying from the US, with Indian refiners purchasing unprecedented volumes at hefty spot market premiums as the government’s priority was to maintain uninterrupted cooking gas supplies, said a trade source who is aware of the purchases.

The sources declined to be named publicly as they are not authorised to speak to the media. India also asked refiners to maximise LPG output, prioritised LPG sales to households and accelerated the rollout of piped gas connections. The efforts have already started to reduce India’s LPG consumption by 15 percent to 20 percent, one of the sources said.

India is on track to receive about 1.1 million to 1.2 million tons of US LPG in June, while supplies from the United Arab Emirates have started to recover to around 300,000 to 400,000 tons this month, two sources at Indian refiners said. The UAE offered LPG cargoes loaded from Oman’s Sohar port on a free-on-board basis at a premium of about $100 per ton to Saudi CP prices, the sources said, adding that Abu Dhabi National Oil Co deployed four to five vessels that get LPG up to Sohar port.

Indian refiners will also be getting about 45,000 tons of LPG from Kuwait in June, the sources said. The partial opening of the strait will improve LPG supplies from the Middle East in the coming months, which will help to reduce prices, the sources added.

India imported 648,300 tons of LPG from the US and 134,700 tons from the UAE in May, according to Kpler data. Imports from Iran, mainly by small players with negligible links to the US, stood at 145,000 tons, while shipments from other traditional suppliers, including Saudi Arabia, Oman and Qatar, remained limited, Kpler’s data show.

Kpler’s preliminary June data indicate India is scheduled to import about 1.07 million tons of LPG from the US, around 223,800 from the UAE, 116,200 tons from Iran and 108,600 tons from Kuwait, with some volumes expected from Oman, Saudi Arabia, Algeria, Qatar and Nigeria.

Bangladesh Bank (BB) has allowed banks to disburse certain consumer loans directly to vendors through electronic fund transfers, a move aimed at modernising loan settlement processes and reducing operational risks associated with paper-based transactions.

The central bank issued a circular yesterday, permitting scheduled banks to transfer loan proceeds electronically to vendors in the case of auto loans, housing finance, consumer durable loans and loans for professionals.

Previously, banks were required to make payments under these loan categories through pay orders or cheques issued in favour of vendors to ensure the proper utilisation of funds and prevent the diversion of loan proceeds.

According to the central bank, the integration of digital payment systems alongside traditional instruments will improve operational efficiency, eliminate settlement delays, reduce transaction costs and mitigate risks related to paper-based payment instruments.

The BB said digital disbursement would enable instantaneous fund transfers, accelerate asset delivery and create a more secure settlement process for banks, vendors and borrowers.

Under the new instructions, banks may transfer funds directly to a vendor’s account if it is maintained with the same bank.

If the vendor’s account is held with another scheduled bank, the disbursing bank may use the Real-Time Gross Settlement (RTGS) system to complete the payment, it added.

The central bank, however, reiterated that loan proceeds must not be credited to the borrower’s account or paid in cash unless specifically permitted under existing regulations.

To address potential risks arising from digital disbursement, BB directed banks to strengthen measures for managing operational, fraud, cybersecurity and third-party risks.

Banks will also remain responsible for ensuring that funds are transferred to the correct vendor.

The central bank clarified that electronic fund transfers would serve as an additional mode of payment and that all other provisions of its Prudential Regulations for Consumer Financing would remain unchanged.

The directive, issued under Section 45 of the Bank Company Act, 1991, came into effect immediately.

Oil prices fell more than 1 percent on Tuesday, extending losses from the previous session, on signs of some progress in restoring crude flows through the Strait of Hormuz following US-Iran peace talks.

Brent crude futures fell $1.09, or 1.4 percent, to $76.81 a barrel and US West Texas Intermediate declined to $72.99 a barrel, down 87 cents, or 1.2 percent, as of 0607 GMT.

Prices fell more than 3 percent on Monday after the United States granted Iran a 60-day sanctions waiver following initial peace talks, and as officials reported a lull in hostilities in Lebanon under the broader agreement.

“The gradual increase in oil flows through the Strait of Hormuz continues to weigh on the market,” said ING analysts in a note. Two crude tankers with just under 2 million barrels of oil sailed through the Strait of Hormuz on Monday, ship-tracking data showed, in a sign that traffic was picking up following weaker flows on Sunday due to concerns over passage through the waterway.

“Transits over recent days look to have risen sharply, (which) the market will treat as a proxy for both physical oil, perhaps paper oil, and diplomatic progress,” said Sparta Commodities’ head of research Neil Crosby in a note. “It feels like we will be stuck in this bearish risk-off/optimistic mood until such time as something changes.”

The price declines come after a weekend that had appeared to put the week-old accord in jeopardy, including threats from US President Donald Trump to restart the war if Iran disrupted shipping through the Strait of Hormuz after Tehran declared the strategic waterway closed.

“There remains a prevailing dose of market scepticism, rooted in deep-seated mistrust between Washington and Tehran, suggesting that any return to pre-war oil prices is likely to be delayed rather than immediate,” said Tim Waterer, chief market analyst at KCM Trade.

Separately, analysts in a Reuters poll expect US crude inventories to have fallen last week, along with distillate and gasoline inventories. On Monday, government data showed US crude stocks in the Strategic Petroleum Reserve fell to 331.2 million barrels last week, the lowest since June 1983, as supplies tightened in the wake of the US-Iran conflict.

The Bangladesh Bank is likely to keep the policy rate unchanged at 10 percent for the second half of this year as the country grapples with persistently high inflation, according to officials familiar with the matter.

The central bank is expected to announce the Monetary Policy Statement (MPS) for July–December in the first week of next month.

The policy is currently being drafted by the BB’s Monetary Policy Department. The process includes a month-long consultation with internal and external experts, including economists. The department presented its assessment of the current economic situation and expert views to the BB Board of Directors at a meeting yesterday, presided over by Governor Md Mostaqur Rahman.

The policy rate or the repo rate -- the benchmark at which commercial banks borrow from the central bank -- has been held at 10 percent since October 2024, following 11 successive increases since May 2022. Despite the tightening cycle, overall inflation averaged 8.63 percent in May.

BB officials, who were present at yesterday’s meeting, told The Daily Star that virtually all experts consulted, except businesspeople, are opposed to cutting the rate under current conditions. Board members agreed with that view.

One board member, speaking on condition of anonymity, said the governor had initially leaned toward rate cuts since taking office but now concurs with economists that easing would be premature.

Former BB governor Ahsan H Mansur, who announced the MPS for the first half of this year, kept the policy rate unchanged despite significant pressure from businesspeople. The meeting also discussed high lending rates, a possible interest rate spread cap, and the potential inflationary impact of the Tk 60,000 crore stimulus package, according to sources.

Md Ezazul Islam, director general of the Bangladesh Institute of Bank Management (BIBM), said holding the policy rate steady for the next six months would be the wise decision given current inflationary pressure.

The development comes as Bangladesh’s economy faces a difficult growth outlook. GDP expanded 4.14 percent in the current fiscal year, according to provisional Bangladesh Bureau of Statistics data, following 3.49 percent growth in FY25, down from 4.22 percent in FY24.

The BNP-led government has set a growth target of 6.5 percent for FY2026-27.

Outstanding loans in non-banking financial companies (NBFCs) increased 2 percent year-on-year in the January-March quarter of 2026, driven by higher credit to the private sector, according to central bank data.

Total loans and advances, including accrued interest, rose to Tk 78,424.77 crore at the end of the January-March quarter of 2026 from Tk 76,956.50 crore in the corresponding quarter of the previous year.

Of the total, outstanding loans extended by private NBFCs reached Tk 63,058.22 crore as of March 31, 2026, up from Tk 62,350.12 crore a year earlier, according to the Quarterly NBFCs Statistics report of Bangladesh Bank.

However, fresh loan disbursements by the sector dropped 3.88 percent year-on-year to Tk 5,577.42 crore in the January-March quarter of 2026.

On the other hand, total recoveries of loans and advances increased significantly by 17.48 percent to Tk 7,846.86 crore.

In terms of sectoral allocation, total loans and advances to the private sector increased to Tk 78,398.15 crore at the end of the January-March quarter of 2026 from Tk 76,894.79 crore on March 31, 2025.

Conversely, advances allocated to the public sector contracted sharply to Tk 26.61 crore in the January-March quarter of 2026 from Tk 61.71 crore in the same period a year earlier.

On the funding side, total deposits, excluding inter-NBFC accounts, grew to Tk 51,558.81 crore as of March 31, 2026, from Tk 49,487.83 crore in the same period a year earlier.

Chittagong Port, Bangladesh's principal maritime gateway and a key driver of the country's external trade, has recorded strong growth in revenue, cargo handling and container throughput despite continuing uncertainty in the global economy.Bangladesh economic report
The inflow of net foreign loans fell by three-fourths during the July-May period of fiscal year 2025-26 compared to the same period last year, as Bangladesh repaid more to international creditors than it received.
According to data released by the Economic Relations Division today, the country received $4.57 billion in foreign loans disbursed by lenders such as Russia, the World Bank and the Asian Development Bank (ADB) during this period, down 18 percent year on year from $5.6 billion a year earlier.
The decline was mainly due to a fall in the flow of project assistance.

On the other hand, debt-servicing costs edged up 9 percent year on year to $4.13 billion in the July-May period of fiscal year 2025-26 from $3.78 billion a year earlier.
As such, the net inflow of finance from foreign sources stood at $445 million in the first 11 months of the current fiscal year, one-fourth of the $1.82 billion recorded in the same period a year earlier.
Commitments from foreign lenders regarding financing to Bangladesh also dropped significantly during this period, to $4.22 billion from $5.45 billion a year earlier.
Since 1972-73, foreign lenders have pledged to provide nearly $200 billion in financing to Bangladesh.
At the end of June last year, total disbursements of loans and grants stood at $142 billion, with loan repayment pressure building amid increased borrowing and rising interest rates.
Over the past decade, loan repayment has grown four-fold to $4.08 billion in fiscal year 2024-25 from $1.09 billion in 2014-15, according to finance ministry data.

According to data released by the Chittagong Port Authority (CPA), the port generated a revenue surplus of Tk 42.87 billion during the first 11 months of fiscal year 2025-26, marking a sharp increase from previous years. After taxes and other statutory payments, the net surplus stood at Tk 22.28 billion.

Port officials attributed the strong performance to improved operational efficiency, cost-control measures, infrastructure upgrades and the introduction of user-friendly policies aimed at enhancing service quality and increasing port capacity.

Between July 2025 and May 2026, the port earned Tk 60.77 billion in revenue, up from Tk 49.52 billion during the corresponding period a year earlier, representing growth of more than 22 per cent.

An analysis of the port's financial performance over the past five years shows a steady rise in revenue surpluses. In 2025, the CPA recorded revenue of Tk 54.60 billion against expenditure of Tk 23.18 billion, resulting in a surplus of Tk 31.43 billion—the highest annual figure at the time.

The surplus stood at Tk 29.23 billion in 2024, Tk 21.43 billion in 2023, Tk 17.34 billion in 2022 and Tk 16.33 billion in 2021.

The authority said strict controls on unnecessary spending helped keep expenditure growth within single digits over the past two years. Revenue expenditure rose by 7.61 per cent in 2025 and 6.50 per cent in 2024.Personal finance tips

Operational performance also reached record levels in 2025. Container handling increased by 4.07 per cent to a record 3.409 million TEUs (twenty-foot equivalent units), compared with 3.276 million TEUs in 2024. The increase amounted to 133,442 TEUs year-on-year.

Cargo handling posted even stronger growth. The port handled 138.15 million tonnes of import and export cargo in 2025, up from 123.98 million tonnes the previous year, an increase of more than 14 million tonnes.

Ship handling also reached a historic high, with 4,273 vessels calling at the port in 2025, compared with 3,857 in 2024, representing a growth of 10.5 per cent.

The integrity of Bangladesh's capital market is facing a severe credibility crisis as 51 listed companies – representing over 12% of the bourse – continue to flout mandatory disclosure requirements by failing to publish their financial results.

While international bourses like the London Stock Exchange (LSE) enforce an "automatic suspension" for even minor reporting delays, the Bangladesh Securities and Exchange Commission and the Dhaka Stock Exchange continue to rely on nominal daily fines that many companies simply ignore.

Of these 51 non-compliant firms, a staggering 20 have already shuttered their operations. Despite having no active production or revenue, these "ghost companies" remain on the trading board, where their shares are often subject to manipulation, trapping the capital of unsuspecting retail investors in a total information vacuum.

'Sub-judicial' shield

Market analysts and industry insiders point to a systemic failure in corporate governance, heavily exacerbated by legal loopholes that companies frequently exploit to avoid public disclosure.

According to existing company laws, if a firm fails to hold its Annual General Meeting (AGM) within the stipulated timeframe, it must secure High Court approval to convene the meeting at a later date.

Companies routinely use this sub-judicial status as a tactical shield, arguing that they cannot legally publish quarterly or annual results while the broader AGM matter is pending in court. This practice effectively leaves shareholders in a complete information vacuum, unable to assess the value of their holdings or the actual health of the companies they own.

For instance, Bangladesh Welding has not published an annual report since 2019, while Keya Cosmetics and Shurwid Industries have kept their books closed to the public since 2020.

Other high-profile defaulters include Beximco Limited, Shinepukur Ceramics, Keya Cosmetics and S Alam Cold Rolled Steel, all of whom have stalled their reporting cycles.

Banks, non-bank financial institutions (NBFIs), and insurance companies are being granted relaxations in listing regulations, as their ability to publish financial statements is contingent upon approval from their primary regulators, such as Bangladesh Bank and the Insurance Development and Regulatory Authority (Idra), according to the DSE.

Domestic forbearance vs global discipline

The regulatory response in Bangladesh remains notably soft compared to global practices. Currently, the DSE imposes a daily penalty of Tk5,000 for delayed quarterly reports and Tk500 for annual reports. However, a senior DSE official admitted that most companies do not pay these fines until they require a specific regulatory approval from the exchange.

"We are essentially a fine-collector, not an enforcer of listing integrity," the official told The Business Standard. "We only collect the arrears when a company comes to us for other regulatory jobs."

This stands in stark contrast to the London Stock Exchange, where any delay in submitting audited accounts triggers an automatic trading suspension to maintain market integrity. If the failure persists for six months, the company is permanently delisted.

Case study of Beximco Pharma

This disparity in enforcement recently hit home for Beximco Pharmaceuticals, which is dual-listed on the LSE's Alternative Investment Market. While the BSEC in Dhaka allows for prolonged reporting delays, the Alternative Investment Market suspended Beximco Pharma's shares on 2 January as soon as it missed its reporting deadline.

The delay was caused by a legal battle over the BSEC's appointment of independent directors to the board. Faced with the risk of being permanently delisted from the London market, foreign investors pressured the BSEC to intervene.

Consequently, the regulator was forced to grant a special waiver, allowing the company to hold a board meeting with its existing directors (excluding the disputed BSEC appointees) solely to approve and publish the financial statements. This incident underscored how international pressure, rather than domestic rules, often drives transparency for local heavyweights.

A breeding ground for manipulation

Operational reports from the DSE confirm that "paper companies" like Appollo Ispat, Aramit Cement, Emerald Oil, and Khulna Printing remain listed despite being out of operation. Even more alarming are cases like Familytex, which possesses no physical assets, and Generation Next, whose top management is reportedly out of contact and residing abroad.

Abul Kalam, a spokesperson for the BSEC, acknowledged that the regulator has historically been hesitant to delist firms, preferring to keep them on the board in hopes of a turnaround. However, investment experts warn that this "wait-and-see" approach is damaging.

"When you allow 51 companies to hide their financials, the market becomes a breeding ground for 'blind' speculation and pump-and-dump schemes," said the managing director of a leading brokerage firm.

"The BSEC must adopt an aggressive stance similar to the LSE, where reporting delays lead to immediate trading halts. Without automatic suspensions, the burden of corporate failure will continue to fall on retail shareholders who are trading based on rumours rather than facts."

Saiful Islam, president of the DSE Brokers Association, said that following the BSEC's directive, the DSE has already taken steps to curb market manipulation. He expressed hope that both the BSEC and the DSE would take necessary action against non-operational companies to safeguard the interests of investors.

Foreign loan disbursements and commitments contracted significantly during the first 11 months (July-May) of the current fiscal year, while debt repayment obligations continued to rise as a result, allocating resources to development, social safety and public services is getting constrained.

According to a report released by the Economic Relations Division (ERD) today (23 June), foreign loan disbursements fell by more than $1 billion during July-May compared with the same period of the previous fiscal year. Commitments from development partners also declined by $1.26 billion year-on-year.

The report further noted that Bangladesh repaid a total of $4.13 billion in foreign loans during the period, the highest debt repayment on record.

Economists say the decline in foreign assistance is creating some pressure on Bangladesh's macroeconomic management.

"A situation has now emerged where foreign loan disbursements (the amount of money coming in) and repayments (the amount going out) have become almost equal. In other words, nearly the same amount of foreign financing that Bangladesh is receiving is being paid out in debt servicing. This signals a significant source of pressure on the economy," Dr Mustafa K Mujeri, executive director of the Institute for Inclusive Finance and Development (InM), told The Business Standard.

The first and most direct impact is on the government's fiscal policy and budget management, he said.

"Foreign debt repayment obligations are rising rapidly, forcing the government to allocate a growing share of its revenue expenditure to debt servicing. As a result, the government's ability to allocate resources to other areas – such as development, social protection and public services – is becoming increasingly constrained. In effect, this is placing clear pressure on the national budget," Mujeri said.

"Secondly, the situation is also creating pressure on foreign exchange reserves and the broader macroeconomy. Foreign loans must be repaid in US dollars or other foreign currencies, which increases the burden on the country's foreign exchange reserves," Mujeri added.

This can tighten the supply of dollars, create exchange-rate volatility and negatively affect overall economic stability, he further said. "Therefore, the challenge is not merely fiscal; it has broader macroeconomic implications."

Explaining the decline in foreign loan commitments and disbursements, Mujeri said one major reason is the political context. "In the absence of a fully elected government for an extended period, development partners were cautious about making large new loan commitments. With nearly eight months of political and electoral uncertainty, it was natural for commitments to decline."

Another important factor was the low rate of project implementation, he said. "During this period, project execution fell to one of the lowest levels in recent history, particularly up to February and March. Since disbursements depend on project progress, slower implementation inevitably led to lower disbursements."

Mujeri said there are reasons to expect improvement in the future. A democratically elected government is now in office and needs to implement its election manifesto. This could accelerate development activities. As the government's economic and development policies become clearer, development partners may also be more willing to make new commitments. Therefore, commitments and disbursements may increase again in the future, and there is no reason for excessive concern at this stage.

"The most important issue, however, is the country's future borrowing strategy. Over the next several years, Bangladesh will need to be far more cautious and selective in taking on foreign debt. The country should not borrow simply because financing is available or because commitments have been offered. Debt-servicing pressures have already risen substantially," Mujeri warned.

He opined that future foreign borrowing should be limited to projects that are genuinely critical and capable of generating high economic returns. Priority should be given to projects that increase productivity, accelerate economic growth and strengthen the country's long-term capacity to repay debt.

Ahsan H Mansur, former Bangladesh Bank governor, described the situation by saying that the country is now essentially "spending to survive" rather than investing enough to support growth, development and a more comfortable economic position.

One major challenge under these circumstances is increasing foreign financial inflows, he said. However, he noted that significantly raising such inflows through the government is neither realistic nor always desirable. "Bangladesh's tax-to-GDP ratio remains very low, meaning government revenues are limited. Governments repay debt from revenue – not from GDP. Therefore, weak revenue collection undermines debt-servicing capacity."

From a policy perspective, he argued that Bangladesh should gradually reduce its dependence on foreign borrowing in the public sector. Instead, greater foreign financing should be channelled to the private sector. At the same time, domestic borrowing should increase so that the government can meet more of its financing needs from within the country.

"The practical challenge, however, is that Bangladesh's banking sector remains relatively small and weak. As a result, when the government borrows more from domestic sources, less credit becomes available for the private sector. This has contributed to a significant slowdown in private-sector credit growth, which is not a positive sign for the economy."

In this context, Mansur cited India as an example. India relies less on foreign borrowing because its stronger banking system allows the government to raise substantial resources domestically. As a result, it does not need to depend on foreign budget-support loans.

Bangladesh faces a different reality, the economist noted. "On the one hand, it needs to reduce dependence on foreign borrowing. On the other hand, it lacks sufficient capacity to mobilise adequate resources domestically. Compounding the problem is weak revenue collection, which makes debt repayment more difficult. Consequently, the government remains under pressure and is still compelled to rely on foreign loans and budget-support financing."

Mansur concluded that the sustainable solution lies in increasing government revenue and strengthening the banking sector. Without progress in these two areas, it will be difficult to ensure long-term stability in budget financing and debt management.

ERD data show that foreign loan disbursements during July-May of the current fiscal year stood at $4.57 billion, down 18.3% from $5.48 billion in the corresponding period of the previous fiscal year.

ERD officials said the disbursement target for the current fiscal year was set at $7.86 billion. However, only 58% of the target had been achieved in the first 11 months.

Meanwhile, according to the ERD report, total foreign assistance commitments between July 2025 and May 2026 amounted to $4.22 billion, compared with $5.48 billion during the same period of FY25, representing a 23% decline.

ERD data show that the target for securing foreign loan commitments from development partners during the current fiscal year was $6.71 billion. However, only 55.48% of the target had been achieved by May.

While commitments and disbursements declined, foreign debt repayments continued to rise. Bangladesh repaid $3.78 billion to development partners during July-May of the previous fiscal year. During the same period of the current fiscal year, repayments increased to $4.13 billion, the highest ever.

Previously, Bangladesh repaid $4.08 billion to development partners during the full July–June period of the last fiscal year.

China ​has overtaken the US to win the top spot on a list of the world's fastest supercomputers, but the results may ‌say more about Beijing's desire to show self-sufficiency in computing systems than its standing in the global AI race, experts said.

The LineShine system at the National Supercomputing Centre in Shenzhen, China, uses domestically designed chips and won the top spot on the TOP500, a biannual global ranking of supercomputers, with the country's first listing in three years.

The ​ranking comes as the U.S. and China are increasingly competing in advanced computing, with U.S. President Donald Trump on Monday signing an executive order ​that aims to put the U.S. ahead of China in the emerging field of quantum computing.

In the June 2026 ⁠edition of TOP500, LineShine beat out the previous titleholder, El Capitan, a supercomputer housed at Lawrence Livermore National Laboratory that the U.S. government uses ​to develop and maintain its nuclear weapons stockpile.

But technology and policy experts interviewed by Reuters said the results do not mean that China has the world's ​fastest computer for AI work because of changes in the computing industry in recent years and the methods used to compile the list. LineShine ranked fourth on a benchmark test designed to simulate computing work that is more similar to AI.

Benchmark Tests

For decades, supercomputers strung together many separate machines to work on complex scientific problems such as ​simulating how atoms interact with one another and were mostly the domain of national labs and universities. To be ranked on the TOP500 list, supercomputer ​operators must run a set of benchmark tests that aims to mimic such work.

But in more recent years, cloud computing companies such as Microsoft Amazon.com and Alphabet's Google ‌built out ⁠massive supercomputers of their own but geared them for AI work instead.

Most of those companies do not opt to compete for a spot on the TOP500 list. A study last year by AI policy researchers Konstantin Pilz, James Sanders, Robi Rahman and Lennart Heim found that SpaceX-owned xAI's Colossus system was already likely more powerful than the US government's El Capitan.

"If the hyperscalers submitted their systems, this 'world's fastest' would not crack the top five," said Jimmy ​Goodrich, a senior fellow at the ​University of California's Institute for Global ⁠Conflict and Cooperation.

Chip design efforts

The Chinese victory on the list more likely shows that China wanted recognition for its chip design efforts, which is a change from recent years, experts said.

China first took the top spot on the ​TOP500 in 2010 and traded titles back and forth with the US and Japan until 2023, when China ​stopped submitting its ⁠systems after years of chip- and computing-related export controls from Trump's first administration and later under President Joe Biden.

"I'm not surprised it's the number one system. What I'm surprised by is that they submitted it and want recognition for it," said Addison Snell, CEO of Intersect360 Research, a firm that focuses on supercomputers.

The ⁠LineShine system ​does not contain any advanced AI chips, according to details presented with the results, likely ​because the tools to make those chips are still subject to US export controls.

"China is hoping to convince the world export controls are useless by hoping we ignore the details," Goodrich ​said.

The National Supercomputing Centre did not respond immediately to a request for comment.

The benchmark index of the Dhaka Stock Exchange (DSE) rebounded today (23 June) after two consecutive sessions of decline, though falling turnover signalled that many investors remained on the sidelines.

Market analysts said the recent price correction had created attractive entry points in fundamentally strong stocks, prompting fresh buying in select counters and pushing the index higher.

Despite the recovery, overall sentiment remained cautious, with many participants adopting a wait-and-see approach as they assessed the market's near-term direction. Trading activity weakened accordingly, with turnover falling below the previous session's level.

Gains were largely driven by buying interest in large-cap and fundamentally sound stocks, which offset selling pressure elsewhere. Analysts said continued accumulation of quality stocks could support further recovery, though subdued participation suggested investors remained wary of the broader market outlook.

The DSEX index of the Dhaka Stock Exchange rose by 51 points to settle at 5,605 yesterday. The blue-chip DS30 index increased by 17 points to 2,127, while the Shariah-based DSES index advanced 10 points to 1,139.

Market turnover stood at approximately Tk828 crore, marking a 5.48% decrease compared to the previous trading session. Out of the total issues traded, 279 advanced, 55 declined, and 61 remained unchanged, indicating broad-based positive market participation.

Market insiders said the sudden suspension of trading in the shares of two companies and the formation of an investigation committee to examine unusual price movements and trading activities in six companies negatively impacted investor sentiment. As a result, the market witnessed sustained selling pressure over the past several sessions.

According to them, such regulatory actions came at a time when investor confidence was gradually returning to the market. The decisions created uncertainty among investors, prompting many to adopt a cautious stance and increase selling, which weighed on overall market performance.

They argued that before investor confidence is fully restored, measures of this nature can have an adverse effect on market sentiment. While acknowledging the need for regulatory oversight of unusual price movements and suspicious trading activities, they believe the issues could have been addressed through alternative mechanisms that would have minimised disruption and avoided triggering negative reactions among investors.

In its daily market review, EBL Securities said the capital bourse resumed its upward trajectory as bargain hunters seized the opportunity to accumulate perceived undervalued scrips following two consecutive sessions of profit-taking, while the Finance Minister's recent reaffirmation of the government's commitment to the market's long-term development also supported a rebound in overall market sentiment.

According to the brokerage, although the market initially extended the previous session's selling pressure, sentiment improved as the session progressed, with buyers exerting sustained buying interest and driving broad-based price appreciation across the majority of listed scrips.

On the sectoral front, pharmaceutical stocks accounted for the highest share of turnover at 16.1%, followed by banking stocks at 12.3% and engineering stocks at 11.2%.

Most sectors posted gains during the session. The travel and leisure sector led the advance with a 4.5% return, followed by general insurance (3.8%) and financial institutions (3.4%). In contrast, the miscellaneous sector was the only major loser, declining 2.0%.

Meanwhile, the Chittagong Stock Exchange (CSE) also ended the day in positive territory. The Selective Categories' Index (CSCX) rose 4.6 points while the All Share Price Index (CASPI) gained 36.0 points.

BRAC EPL Stock Brokerage said in its daily market report that all major large-cap sectors closed in positive territory today. The non-bank financial institution (NBFI) sector led the gains with a 3.40% rise, followed by food and allied 0.91%, engineering 0.63%, fuel and power 0.62%, telecommunication 0.61%, pharmaceutical 0.57%, and banking 0.18%. Meanwhile, block transactions accounted for 3.7% of the day's total market turnover.

The Patenga Container Terminal, operated by Saudi Arabia’s Red Sea Gateway Terminal (RSGT), is set to begin full-capacity operations from next month after four ship-to-shore cranes arrived at the facility on June 19.

The cranes, worth $30 million, are now being installed and commissioned. They will allow the terminal to handle larger vessels, improve berth productivity and reduce vessel turnaround time, according to port and company officials.

They arrived aboard a specialised vessel and are expected to be operational within weeks.

The investment is part of RSGT’s development of the terminal under a 22-year concession agreement with the Chittagong Port Authority (CPA). The Saudi company became Bangladesh’s first foreign container terminal operator after taking over the facility in 2024.

According to company officials, RSGT has so far committed around $170 million to modernise the facility through investments in infrastructure, equipment, technology and workforce development.

The terminal currently handles around 155,000 twenty-foot equivalent units (TEUs) annually. RSGT expects the volume to reach around 400,000 TEUs this year after the new equipment is commissioned, rising to more than 500,000 TEUs next year, nearly 17 percent of the port’s total container traffic.

Alifa E Junnurine, manager for marketing and communication at RSGT, told The Daily Star that the cranes would significantly expand the terminal’s handling capability.

“Unlike the 12- to 13-container-wide vessels currently served at the port, the cranes can accommodate ships up to 16 containers wide. Each unit can lift up to 40 tonnes in single-container operations, 45 tonnes in twin-lift mode and 60 tonnes for specialised cargo handling,” she said.

“Being fully electric,” she added, “the cranes would also reduce reliance on fuel-powered equipment and support more sustainable port operations.”

The STS cranes complete the deployment of the terminal’s main cargo-handling equipment. RSGT had earlier invested $26 million in 14 rubber-tyred gantry cranes and around $3 million in a container scanner, which enabled the terminal to begin handling import containers earlier this year.

The terminal’s expansion carries wider significance. Chattogram port handles more than 90 percent of Bangladesh’s seaborne trade and processed approximately 3.41 million TEUs last year, making it the busiest container port on the Bay of Bengal.

Industry insiders expect that improved performance at Patenga will ease pressure on other existing facilities as cargo volumes grow.

The region is also set to generate rising trade demand from a cluster of major industrial and infrastructure projects — the Mirsarai Economic Zone, the Chinese Economic and Industrial Zone, a proposed free trade zone in Anwara, and the Matarbari deep-sea port.

Mohammed Amirul Haque, president of the Chittagong Chamber of Commerce and Industry, said the RSGT investment should be seen in that broader context.

“The investment made by RSGT should be viewed in the context of the wider economic transformation taking place in the Chattogram region,” he said.

On the other major projects, the CCI president commented, “Once these investments reach full production, cargo movement through Chattogram port will increase significantly.”

However, he added that even with the Bay Terminal, Patenga Container Terminal and Matarbari deep-sea port in operation, there will be a need for further capacity expansion and efficiency improvements.

He said all existing jetties and terminals at Chattogram port would need to be utilised more efficiently through modern equipment, automation and improved operational management to handle future trade volumes.

Diplomacy between the US and Iran has translated into relief at the pump for Americans, data showed on Monday, with gasoline prices falling for a sixth straight week and marking a 15 percent drop from their May peak. The national average price of gasoline fell 14.1 cents a gallon over the last week to $3.85 per gallon on Monday, according to price-tracking service GasBuddy.

Prices declined in most states. Gasoline dropped 25 cents per gallon in Colorado over the past week, 22 cents in Arizona and 21 cents in Ohio, GasBuddy data showed.

SUPPLY RISKS PERSIST

Two smaller crude tankers sailed through the Strait of Hormuz on Monday although Iran said it had again closed the waterway over the weekend. However, transits through the strait remain well below levels seen before the conflict started in late February. Gasoline prices are not at significant risk of a spike, as some vessels continue to move through the strait, said Patrick De Haan, head of petroleum analysis at GasBuddy.

But if relations between the US and Iran deteriorate, that could quickly change, he added. Tightening supplies from refinery outages and the approaching Atlantic hurricane season could also reverse recent price declines. TotalEnergies’ shut down its 238,000 barrel-per-day refinery in Port Arthur, Texas, last week when a lightning strike knocked out power. A full restart is expected to complete within seven days.

On Sunday, a fire broke out at Marathon Petroleum’s 631,000-barrel-per-day Galveston Bay Refinery in Texas City, Texas.

Gold prices fell more than 2 percent on Tuesday, pressured by a firmer US dollar on expectations of Federal Reserve interest rate hikes this year, while investors assessed US-Iran peace talks. Stocks across the globe declined amid concerns over AI-related share valuations and as higher interest rates loomed. Crude fell 1 percent while the dollar held near a one-year high, making gold less affordable for buyers holding other currencies.

Spot gold was down 2.2 percent at $4,099.84 per ounce, as of 0753 GMT. US gold futures for August delivery fell 2 percent to $4,117.70. Spot silver slumped 5 percent to $61.90 per ounce, platinum lost 3 percent to $1,628.55, and palladium was down 2.9 percent at $1,229.28.

“Gold had received some relief from lower oil prices this week, but it is getting no such favours from the US dollar, which continues to push higher on expectations of Fed rate hikes,” said Tim Waterer, chief market analyst at KCM Trade.

Traders now see an 88 percent chance of a rate hike in December, up from 61 percent before the Fed meeting last week, according to the CME FedWatch Tool, as investors price in hawkish monetary policy under new Chair Kevin Warsh.

Chicago Fed President Austan Goolsbee said that with the labour market stable, he is focused on figuring out whether too-high inflation will stay that way or recede, as the effects of high tariffs fade, and if the conflict in the Middle East gets resolved.

The US has waived sanctions on Iran for 60 days after the first talks under a nascent peace deal, while officials reported a sustained lull in fighting in Lebanon under the agreement aimed at ending hostilities across the region. US Vice President JD Vance said talks with Iranian officials in Switzerland had laid a good foundation for a final peace deal, although Iran denied that it had begun discussions of its nuclear programme.

Investors await US Personal Consumption Expenditures data, the Fed’s preferred inflation gauge, due on Thursday, for further cues on monetary policy.

The central bank injected Tk21.68 lakh crore liquidity support into the country's banking system last year as the sector faced mounting pressure from rising default loans, capital shortages, a crisis in Islamic banks, weak financial institutions, and declining investor confidence.

Bangladesh Bank's recently released Financial Stability Report stated that the support was extended in 2025 to maintain the stability and functioning of the banking system amid increasing financial strain.

A record Tk30.29 lakh crore in loans and liquidity support was also provided during the fiscal 2023-24 to maintain stability, which was up 131% from the previous year's Tk13.08 lakh crore.

The 2025 support was extended through various facilities, including repo operations, Assured Liquidity Support (ALS), the Islamic Banks Liquidity Facility (IBLF), and Special Liquidity Support (SLS), according to the report.

Conventional banks and financial institutions received Tk19.75 lakh crore through regular liquidity instruments. Of the total, 59.11% came through repo operations, 36.67% through ALS and 4.22% through the standing liquidity facility (SLF).

Repo is a mechanism through which banks receive short-term loans from the central bank against treasury bills and bonds. Banks can borrow through repo operations, usually for overnight, seven-day, 14-day and 28-day periods.

Through ALS, only primary dealer (PD) banks can borrow funds for up to 90 days. PD banks receive the facility when they are required to purchase government treasury bills and bonds due to insufficient demand at auctions.

During the year, banks deposited Tk5.11 lakh crore with Bangladesh Bank under the standing deposit facility (SDF).

Mutual Trust Bank Managing Director Syed Mahbubur Rahman said the weak interbank market had forced banks to depend on central bank support.

"Our interbank market is not very strong. So banks take repo facilities from the central bank against treasury bills and bonds. However, these funds are returned by banks within a very limited period," he said.

Banking sector experts said liquidity support could help maintain financial stability in the short term but was not a permanent solution.

They warned that prolonged dependence on such facilities could create a "moral hazard" among banks. In other words, the banks may assume that despite weak management, the central bank will ultimately step in to bail them out.

They said the immediate priorities should be restructuring weak banks, recovering default loans, ensuring professionalism in management and strengthening independent supervision by the central bank.

Islamic banking faces deeper stress

During the year, Islamic banks received Tk1.74 lakh crore in liquidity support from Bangladesh Bank through the IBLF, Mudarabah Liquidity Support (MLS) and SLS.

IBLF accounted for the largest share at 89.93%, while SLS accounted for 9.88%. The contribution of MLS was negligible. Conventional banks were the main users of regular liquidity instruments, accounting for 91.89% of the support, while Islamic banks accounted for 8.11%.

In addition, 11 banks received emergency liquidity assistance (ELA) from Bangladesh Bank in 2025, amounting to Tk18,333 crore.

According to the report, high interest rates, global uncertainty, import costs and slower investment growth had put pressure on the economy, while the banking sector faced a serious capital shortage.

The banking sector's capital-to-risk-weighted assets ratio (CRAR) fell from 3.08% in 2024 to negative 2.64% in 2025, indicating that many banks were unable to maintain sufficient capital to absorb risks. The capital conservation buffer also fell to zero.

State-owned banks, specialised banks and several private and Islamic banks were identified as the main contributors to the capital weakness. The banking sector's leverage ratio also turned negative, falling to 3.10%. Returns on assets (ROA) and returns on equity (ROE) declined significantly.

The report expressed the greatest concern over Islamic banking. The combined CRAR of Islamic banks fell to negative 43.18%, while default loans increased by 56.15%.

Although the CRAR stood at 7.71% excluding five banks undergoing restructuring, the overall situation remained concerning. Deposit growth slowed, investment growth declined and shareholders' equity turned negative.

The report also said several Islamic banks failed to maintain mandatory liquidity indicators, including the liquidity coverage ratio (LCR), net stable funding ratio (NSFR) and investment-deposit ratio (IDR).

As Islamic banks hold a significant share of Bangladesh's banking system, the central bank warned that problems in the sector could put the entire financial system at risk.

Default loans remain biggest challenge

Non-performing loans remained the biggest challenge for the banking sector, the central bank report further noted.

Stress tests showed that a further rise in default loans could severely affect banks' capital positions. The risk of large borrowers becoming defaulters also remained high.

Corporate lending was highlighted as a major risk, with around 46% of total loans concentrated in the corporate sector and 67% of risk-weighted assets linked to it.

Non-bank financial institutions also faced difficulties. By the end of 2025, their default loan ratio had risen to 33.32%. Capital adequacy fell to negative 23.19%, deposits declined by 7.03% and profits turned negative due to higher provisioning requirements.

Despite the challenges, the report noted some positive developments, including increased remittance inflows, stable export earnings and improved current account conditions due to controlled import costs.

At the end of 2025, Bangladesh's foreign exchange reserves stood at $33.19 billion. Under the IMF's BPM6 calculation method, reserves stood at $28.59 billion.

Digital financial services also expanded, with increased use of NPSB, BEFTN, internet banking, payment cards, BD-RTGS and agent banking. Bangla QR and TakaPay also grew during the period.

Bangladesh Bank said the financial system remained stable overall but warned that risks could not be ignored.

Experts called for stronger action to recover default loans, restructure weak banks, improve governance, address capital shortages and strengthen regulatory oversight.

The report showed that domestic credit through the banking system reached Tk22.84 lakh crore at the end of 2025, rising 7.98% from 2024. Private sector credit increased by 6.49% to Tk17.47 lakh crore, while public sector credit rose by 13.15% to Tk5.36 lakh crore.

After declining between 2018 and 2023, the ratio of private and public sector credit increased slightly to 3.46% at the end of 2024 before falling to 3.26% by the end of 2025. The ratio declined further to 3% in the first half of 2026.

A slew of 457 industrial units have faced permanent closure during last two years mainly because of shrinking work orders, owners'
financial crisis, labour unrest and energy crisis, sources say.The latest fall was on Tuesday of twin factories in Gazipur-Unique Designers Ltd and Unique Washing and Dyeing Ltd. Their permanent closure was announced after lying temporarily shut since June 16, citing financial crisis.Personal finance tips

The industrial nemesis results in job loss of some 1800 workers, sources in law- enforcing agencies say.Majority or 398 factories were located in Gazipur, Ashulia and Chattogram industrial belts.

Out of the total closed units, 287 are non-RMG (readymade garment) factories while the rest are affiliated with Bangladesh Garment Manufacturers and Exporters Association, numbering 108, Bangladesh Knitwear Manufacturers and Exporters Association, 35, Bangladesh Textile Mills Association, 08, and Bangladesh Export Processing Zones Authority-affiliated 19, according to data.

Statistics show a total of 79 factories terminated as many as 7,784 workers in the last five months until May 31 amid a fall in production and work orders owing to sluggish global demand and a loss of competitiveness.

Industry insiders also assign a number of factors -- local and global -- behind the closure that include decline in global demand, bankruptcy of global buyers, political reasons, complexities related toBangladesh economic report

banks, factory relocation, shortage of raw materials, impact of wars, geopolitical issues.

They, however, say the elected new

government has taken few measures to reopen closed factories, including announcement of financial supports.

Bangladesh Bank through two separate circulars has announced Tk 200 billion worth of pre-finance scheme to revive large industrial and services-sector enterprises that have either shut down or are operating below full capacity for a shortage of working capital.

Another scheme is worth of Tk 50 billion for cottage, micro, small and medium enterprises (CMSMEs).

The central bank, meantime, has asked apparel trade bodies to provide information on closed and partially closed factories.

In this connection, BGMEA organised a discussion meeting with its member-factories on June 14 where many of them raised concerns over some requirements binding the central-bank packages, saying that they, mostly the small and medium ones, could not avail the facilities because of the tags.Politics

When asked, Bangladesh Garment Manufacturers and Exporters Association President Mahmud Hasan Khan said, "All of the closed factories could not be reopened as they don't have the capacity while their CIB (credit information bureau) reports are not 'good'."

Explaining the reasons behind the closure, he cites, among others, global demand fall, shortage of work orders, inefficiencies of some factories and bankruptcy of some buyers as well as political reasons, failure to make timely shipment due to political or other natural calamities.

Talking to the FE, BGMEA vice-president Shehab Udduza Chowdhury said some 200 closed and 123 partially closed factories expressed their willingness to get the government-announced financial packages.

"The units that cannot use full capacity should get priority as employment generation and export earnings both can be increased within the shortest possible time once they get working capital," he says, adding that most of the SMES which need the financial support can't avail it because of the condition of collateral security.Personal finance tips

He urges the government to provide loan at 7.0-percent interest for CMSMEs and allow loan-rescheduling facility with minimum down payment.

The BGMEA president, however, says two audit companies will visit the interested factories and submit their reports to the trade body.

The export industry's apex body will recommend to the central bank accordingly, based on reports, for factories suggested by the audit firms.

Beximco Pharmaceuticals recommended a 47.5% cash dividend to its shareholders for the fiscal year 2024-25 ended 30 June.

The company declared the dividend at a board meeting held today (23 June), according to the company source.

During the fiscal year, its consolidated net profit stood at Tk699.88 crore, which was Tk586.67 crore.

To approve the audited financial statement and the dividend the company will set the annual general meeting time and venue following the High Court order. It also set the record date for 2 August.

Besides, the company reported that its consolidated net profit stood at Tk704 crore in the first nine months of FY26.

Earlier, the regulator had permitted the Beximco Pharma to hold a special board meeting to approve and publish its five overdue quarterly financial statements, mitigating the looming risk of a delisting from the London Stock Exchange (LSE).

The trading of Beximco Pharma remained temporarily suspended on London's Alternative Investment Market (AIM) from 2 January 2026, as it failed to publish its annual financial results within the stipulated time frame.

Amid rising concerns raised by foreign institutional investors to the Bangladesh Securities and Exchange Commission (BSEC), the regulator has permitted Beximco Pharmaceuticals to hold a board of directors meeting.

During the interim government, the BSEC appointed nine independent directors to the board of Beximco Pharma, as well as to two other listed group entities: Beximco Ltd and Shinepukur Ceramics.

Beximco Pharma legally challenged the regulator's decision by filing a writ petition, which remains pending in court. Citing the matter as sub-judice, the company has not allowed the BSEC-appointed independent directors to take their seats on the board.

Commerce Minister Khandakar Abdul Muktadir on Tuesday told Parliament that Bangladesh’s trade deficit widened to US$ 24.17 billion in the fiscal year 2024-25, as the increase in import expenditure outpaced growth in export earnings.He disclosed the information while responding to a question from BNP lawmaker from reserved women seat Nilufar Chowdhury Moni.

The minister said the country earned $55.19 billion from exports during FY25, while import expenditure rose to $79.36 billion, resulting in a trade gap of $24.17 billion.The figures show a reversal of the narrowing trend observed in the previous fiscal year, when the trade deficit stood at $21.50 billion, he said.Export earnings increased by about 8 percent from $51.11 billion in FY24 to $55.19 billion in FY25. However, import payments grew at a faster pace, rising from $72.62 billion to $79.36 billion during the same period.The data indicates that Bangladesh’s trade deficit has fluctuated considerably over the past five fiscal years, largely reflecting changes in global commodity prices, domestic demand and international trade conditions.

In FY21, the country’s export earnings stood at $45.37 billion against import expenditure of $61.61 billion, leaving a trade deficit of $16.24 billion.

The deficit widened sharply to a record $28.14 billion in FY22 as imports surged to $89.11 billion, while exports reached $60.97 billion.

In FY23, export earnings declined to $53.93 billion and imports fell to $78.30 billion, reducing the trade gap to $27.18 billion.

The deficit narrowed further to $21.50 billion in FY24 as import expenditure dropped significantly to $72.62 billion, while exports amounted to $51.11 billion.

Despite the increase in export receipts in FY25, the faster growth in imports widened the trade imbalance once again, highlighting the continued pressure on the country’s external sector.

According to the data, Bangladesh’s exports have increased by nearly 22 percent over the past five years, from $45.37 billion in FY21 to $55.19 billion in FY25, while imports rose by almost 29 per cent during the same period, from $61.61 billion to $79.36 billion.Bangladesh economic report

The minister said Bangladesh’s exports continue to be concentrated in a number of key international markets, with the United States, Germany, the United Kingdom, Spain, France, Poland, the Netherlands, Japan, Canada and India remaining the country’s principal export destinations.

He said Bangladesh exports a wide range of products to these destinations, reflecting the country’s growing industrial and manufacturing capacity beyond its traditional ready-made garments (RMG) sector.

According to Muktadir, knitwear and woven garments remain the leading export items in most of the major markets. Other significant export products include leather and leather goods, agricultural and agro-processed products, home textiles, jute and jute goods, cotton and cotton products, and engineering products.

He said Bangladesh is also exporting footwear, excluding products classified under specific tariff headings, as well as jute yarn and twine, frozen and live fish, chemical products, hats and caps, shrimp, paper and paper products, plastic goods and tents.

The export basket has further expanded to include pharmaceutical products, dried and processed food items, knitted fabrics, electrical products, raw jute, wigs and human hair products, the minister added.

The Bangladesh Bank has introduced a new banking facility for expatriate Bangladeshis, allowing them to open Non-Resident Convertible Taka Accounts (NRCTA), aiming to encourage remittance inflows through formal channels, boost investment and expand offshore banking activities.

In a circular issued today (23 June), the central bank said expatriates would be able to deposit remitted funds in their accounts and freely repatriate both the principal amount and any interest or investment income earned.

The central bank has also allowed funds held in these accounts to be used for a range of domestic transactions, including investments and lending to certain foreign-owned industrial enterprises operating in Bangladesh's specialised economic zones.

A senior central bank official told The Business Standard that expatriates will be able to open non-resident convertible current, savings or fixed deposit accounts through offshore banking units using funds remitted through banking channels.

"The accounts may also receive transfers from other non-resident accounts, interest or profit income, investment earnings, refunds from share subscriptions and other approved foreign exchange-related receipts," the official added.

According to the circular, the initiative has been taken in response to growing remittance inflows and to create new opportunities for expatriates to participate in the country's economy.

Both the deposited funds and accrued interest or profits will remain fully repatriable.

In addition, account holders will be allowed to use the funds for local payments, conversion into foreign currency accounts, foreign direct investment (FDI), and portfolio investments in Bangladesh.

The funds can also be used to provide taka-denominated loans to Type-A industrial enterprises operating in specialised economic zones, which are fully foreign-owned entities.

However, such loans may only be used for approved operating expenses, including salaries, wages and utility bills. Repayment must be made from the export earnings of the borrowing companies.

The central bank has also permitted banks' domestic banking units to provide loans against deposits held in these accounts to expatriates or their nominated beneficiaries.

These loans may be used for personal or business purposes, although investments in agriculture, forestry and housing sectors will not be permitted.

The circular further allows account holders to make non-repatriable investments in Bangladesh and purchase residential property for personal use.

Another central bank official said the new account framework would strengthen the financial intermediation of remittances, enhance offshore banking activities and create a structured platform for expatriate Bangladeshis to invest in the country's economy.

The official added that the facility would also help improve liquidity support for foreign-owned export-oriented industries through the newly permitted lending mechanism.