The Bangladesh Bank (BB) has set a target to reduce non-performing loans (NPLs) to 25 percent from the current 36 percent by March, according to senior bankers.

In a meeting held at BB headquarters yesterday, banks were instructed to cut the volume of bad debts through loan rescheduling, accelerating legal recovery and implementing a comprehensive follow-up process for defaulters.

A delegation from the Association of Bankers, Bangladesh (ABB), led by its Chairman Mashrur Arefin, attended the meeting. It was chaired by BB Governor Ahsan H Mansur, with deputy governors, executive directors, and other senior officials of the central bank also present. Nazma Mobarek, secretary of the Financial Institutions Division, attended as well.

The meeting included a presentation on monetary policy and the country’s broader economic situation.

Central bank officials said the governor expressed dissatisfaction with banks’ efforts to tackle defaulted loans, despite various initiatives by the government and the central bank.

Defaulted loans in the banking sector rose to Tk 6.44 lakh crore, nearly 36 percent of total loans disbursed, by the end of September 2025, according to BB data.

In September 2024, the ratio of bad loans stood at 16.93 percent of total outstanding loans. It means that the share of NPLs had roughly doubled within a year.

This is the highest level since 2000, exposing vulnerabilities in the banking system and raising concerns about financial governance.

Under the central bank’s policy support, around 300 companies, including some of the largest defaulting conglomerates, applied for loan rescheduling or restructuring facilities worth around Tk 2 lakh crore during the first nine months of 2025.

In January last year, the BB formed a five-member committee, led by the executive director of the Department of Offsite Supervision, to provide policy guidance for restructuring or rescheduling corporate loans affected by circumstances beyond borrowers’ control.

The committee completed its tripartite meetings with borrowing companies and their financing banks on September 30.

Sources present at yesterday’s meeting said about 44 percent of the approved policy support has been implemented so far, with Islami Bank Bangladesh and United Commercial Bank performing at satisfactory levels.

Bankers expressed optimism that they would be able to reduce bad loans by March.

Speaking on condition of anonymity, a chief executive of a private commercial bank told The Daily Star that the meeting also discussed the foreign exchange market, noting that banks currently hold adequate foreign currency reserves.

“The BB governor asked banks to ensure smooth letter-of-credit payments ahead of Ramadan to maintain the food supply chain,” he said.

The CEO added that the central bank has injected around Tk 40,000 crore in local currency against its purchase of $3.50 billion over recent months.

At the meeting, bankers urged the BB to liberalise the inflow and outflow of foreign currency. The central bank asked the commercial lenders to make sukuk bonds tradable ahead of a planned government issuance of Tk 10,000 crore in sukuk bonds, according to sources.

During the meeting, the central bank instructed banks to run campaigns for the upcoming referendum at their head offices and branches.

The secretary of the Financial Institutions Division asked banks to carry out positive campaigns to raise public awareness about the referendum and encourage voter participation. Many banks have already begun outreach efforts at their branches.

The national election and the referendum on the July Charter are scheduled for the same day, 12 February. The interim government has already started campaigning for the referendum.

Vietnam and Japan crossed a major commercial milestone last year as two-way trade turnover exceeded US$50 billion for the first time, underscoring the strength and momentum of bilateral economic ties.

The achievement also reaffirmed Japan’s position as one of Vietnam’s largest and most stable trading partners at a time of continued volatility in the global economy.

The Vietnam Trade Office in Japan reported that bilateral trade delivered positive results throughout the year. Citing statistics from the Department of Customs, total import-export turnover between the two countries reached more than $51.43 billion, an increase of 11.28 percent compared to 2024.

Vietnam’s exports to Japan amounted to $26.77 billion, up 8.77 percent, while imports from Japan reached $24.68 billion, a year-on-year rise of 14.13 percent. As a result, Vietnam recorded a trade surplus of $2.09 billion with Japan last year.

Key Vietnamese export groups to Japan include textiles and garments; transport vehicles and spare parts; machinery, equipment, tools and other spare parts; wood and wood products; mobile phones and components; computers, electronic products and components; footwear; seafood; coffee; fruits and vegetables; cashew nuts and pepper.

Meanwhile, Vietnam imports a wide range of products from Japan, notably computers, electronic products and components; machinery, equipment, tools and spare parts; iron and steel products; fabrics; automobile components and spare parts; and seafood.

Notably, the two largest import categories – computers and electronic components, and machinery and equipment – together accounted for nearly 54 percent of Vietnam’s total import value from Japan.

The structure of Vietnam-Japan trade in 2025 remained highly complementary, reflecting the respective strengths of both economies and their deep integration into global supply chains.

Tạ Đức Minh, commercial counsellor of the Vietnam Trade Office in Japan, said the $50 billion milestone was not only historically significant but also reflected the substantive and sustainable growth of economic cooperation between the two countries amid ongoing global economic uncertainty. He added that these positive outcomes were closely linked to the strategic guidance of Vietnam’s Ministry of Industry and Trade in promoting bilateral economic and trade relations.

The ministry has laid an important foundation enabling businesses in both countries to expand cooperation and integrate more deeply into regional and global value chains, Minh said.

This progress has been driven by the negotiation and effective implementation of free trade agreements, including the Vietnam-Japan Economic Partnership Agreement, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Regional Comprehensive Economic Partnership, alongside policies helping enterprises take advantage of tariff preferences and guidance on developing key export sectors.

To sustain and accelerate growth in bilateral trade, Minh said the trade office would proactively monitor and analyse developments that could affect trade between Japan and Vietnam this year, promptly advising the Government and ministry leaders on policy responses and issuing early warnings to the business community.

Efforts will also continue to intensify trade promotion, diversify export products for the Japanese market, expand market development activities in Japan and invite Japanese business delegations to take part in domestic trade promotion programmes.

In addition, the trade office will support enterprises in boosting competitiveness by providing market information, updating technical standards and import regulations, and assisting Vietnamese companies with brand building and product marketing in Japan, including identifying reputable distribution partners and connecting with suitable retail channels.

The Vietnam Trade Office in Japan has served as a direct and effective bridge between businesses of the two countries. In 2025, it coordinated and supported Vietnamese enterprises in participating in major trade and investment promotion events, including Foodex Japan 2025, the M-Tech Manufacturing Expo, Gift Show, DIY Show, fashion and textile exhibitions, building and decoration fairs, as well as Vietnam festivals in Tokyo and Kanagawa.

The office also hosted Japanese business delegations in Vietnam for trade fairs and market surveys, connecting companies across key sectors. These efforts helped boost trade and strengthen market knowledge, technical standards, and long-term cooperation.

With the support of the MoIT, the direct assistance of the Vietnam Trade Office in Japan, and the proactive efforts of the business community, the Vietnam-Japan trade and investment cooperation is expected to grow strongly in the time to come.

Last week's much-hyped meeting on the listing of state-run and multinational companies delivered little beyond a renewed reminder of the government's intent to their top management.

Despite Finance Adviser Dr Salehuddin Ahmed's claim that 10 companies had agreed to offload shares, meeting participants told The FE in recent telephone conversations that the representatives had only committed to placing the matter before their boards.

Dr Ahmed on Wednesday held a meeting at the Bangladesh Secretariat with three advisers and top officials of targeted state-run and multinational companies, including Unilever Bangladesh, to press the issue.

"But no procedural progress could be achieved at the meeting," said one participant, requesting anonymity.

The FE spoke to three meeting participants, whose accounts corroborated each other regarding the outcome.

Some participants defended their non-listed status, while others openly argued against listing.

A representative of Unilever Bangladesh told the meeting that its subsidiary, Unilever Consumer Care, had already been listed on the bourses and that this fulfilled the obligation to share profits with the public.

However, Unilever Consumer Care was listed when it was GSK Bangladesh. Unilever acquired the company later on in June 2020.

Sources said the finance adviser rebuked companies that expressed reluctance to issue primary shares in the secondary market.

He reminded the representatives that it was the government's decision to offload its own stakes in multinational companies.

"Then why would you not offload your shares?" the finance adviser asked.

He told the Unilever representative that the company must offload shares alongside the government's stake.

According to meeting sources, the adviser said the government had already decided to offload its 5 per cent stake and that the company would have to offload another 5 per cent.

The chairman of the state-run Investment Corporation of Bangladesh (ICB), Prof Abu Ahmed, told the meeting that the government should widen the tax differential between listed and non-listed companies to compel state-owned enterprises and multinational firms to enter the equity market.

He added that companies in the UK are required to offload at least 10 per cent of their paid-up capital, whereas the Bangladesh government was pressing for only a 5 per cent offloading.

Multinational companies, Prof Ahmed said, are sharing profits with the public in other countries. "Then why are they not doing it here?" he asked.

The interim government announced in May last year a plan to bring more companies to the secondary market to improve its depth.

So far, no visible progress has been made in executing the plan, and Wednesday's meeting also failed to move the process forward.

Asked about the meeting outcome, Prof Ahmed told The FE that it was a high-profile meeting attended by four advisers, bureaucrats and top officials of the targeted companies.

"A strong message was delivered, but we cannot speak about execution yet," he said. Two other participants also expressed dissatisfaction over the lack of progress in implementing the government's listing decision.

At Wednesday's meeting, a representative of Nestlé Bangladesh said the government held no stake in the company.

In response, the finance adviser said it did not matter whether the government had a stake and that the company would still have to go public.

The meeting also raised complications regarding the listing of Karnaphuli Fertiliser Company Ltd (KAFCO).

The company's regulations allow shareholders to transfer their shares to existing shareholders. A foreign shareholder is reportedly planning to transfer its stake, which the government could initially receive and later offload in the market.

Another participant, speaking on condition of anonymity, said that while the finance adviser strongly emphasised the need to list multinational companies, the commerce adviser later softened the tone.

Ultimately, representatives of state-run and multinational companies concluded the meeting by saying they would seek board approval for listing after placing the meeting minutes before their boards.

Bangladesh saw a robust rise in net Foreign Direct Investment (FDI) during the third quarter of 2025, reflecting growing investor confidence despite global economic uncertainties.

According to Bangladesh Bank data, net FDI inflow for July–September reached $315.09 million, marking a 202% year-on-year increase from $104.33 million in the same period of 2024.

Cumulative net FDI for January–September 2025 stood at $1.41 billion, up 80% from $780 million during the corresponding period of the previous year.

All major components of FDI showed significant improvement in Q3.

Equity investment rose to $101.12 million from $76.79 million a year earlier, while reinvested earnings jumped nearly threefold to $211.47 million from $72.90 million. Intra-company loans also reversed course, moving from a negative $45.36 million to a positive $2.49 million.

The strong Q3 performance built on a solid H1 showing, when net FDI in April–June reached $303.27 million, up 11.4% from $272.22 million in the same quarter of 2024.

Overall, net FDI in the first half of 2025 rose more than 61% compared to H1 2024.

Ashik Chowdhury, executive chairman of Bangladesh Investment Development Authority (Bida), said, "Bida's core focus is improving the business climate and building a credible investment pipeline. It is encouraging to see these pipelines convert into actual inflows.

"While Q4 may see some moderation ahead of elections, we expect a rebound afterward, supported by a strong investment pipeline."

He added that Bida's dedicated investment pipeline for 2025 has already exceeded $1.5 billion, in addition to traditional registered proposals, signaling continued optimism among investors.

The Dhaka Stock Exchange (DSE) suffered a sharp setback on Sunday as heavy selling in banking stocks dragged the key index lower, reversing recent gains and dampening investor sentiment at the start of the trading week.

The downturn was broad-based, with all major large-cap sectors closing in the red, but losses in banks played the most decisive role in pulling the market down.

The benchmark DSEX index fell by 58 points, or 1.17%, to settle at 4,939, while the blue-chip DS30 index dropped 18 points, or 0.97%, to close at 1,896.

Market breadth was heavily skewed toward decliners, with 313 stocks ending lower against just 38 advancers, as selling pressure intensified across the board.

Turnover also slipped to Tk412 crore, reflecting cautious trading activity, while overall market capitalisation shrank by around Tk2,000 crore in a single session.

Banking stocks were at the centre of the sell-off, with the sector shedding 1.77% on the day.

Market participants said the decline was largely driven by short-term investors locking in profits after a strong rally in recent weeks.

Over the past three weeks, the banking sector's market capitalisation had surged by nearly 8%, or about Tk5,000 crore, raising concerns of overbought conditions. As profit-taking set in, most banking shares came under pressure, erasing a portion of those gains.

Out of the 36 banks listed on the DSE, share prices of 27 lenders declined, while the remaining nine ended the session unchanged. The selling spree in banks weighed heavily on overall market sentiment, given the sector's significant weight in the indices and its role as a bellwether for the broader market.

Market analysts said the near-term direction of the market will largely depend on whether banking stocks stabilise after the recent correction. While fundamentals of some large banks remain relatively strong, investors are likely to stay cautious in the coming sessions, closely watching sector-specific developments and broader economic signals before rebuilding positions.

Losses were not limited to banks. Non-bank financial institutions experienced the steepest sectoral decline, dropping 1.95%, amid lingering concerns over asset quality, regulatory actions and the financial health of weaker players.

Engineering stocks fell 1.16%, while telecommunications declined 0.93% and pharmaceuticals slid 0.91%. Fuel and power shares lost 0.66%, and food and allied industries slipped 0.36%, highlighting the extent of the market-wide pullback.

Trading activity was concentrated in a handful of stocks, with Orion Infusion, Dominage Steel, City Bank, Square Pharmaceuticals and Uttara Bank emerging as the top turnover leaders.

Despite the weak overall market, a few stocks managed to post gains. First Finance topped the gainers' list, while Shinepukur Ceramics, Familytex BD, Zaheen Spinning and Union Capital also closed higher.

On the flip side, several troubled non-bank financial institutions, already under liquidation threat, dominated the list of top losers. Shares of Fareast Finance and International Leasing suffered steep declines, reflecting heightened investor anxiety following recent regulatory signals and concerns over the future of non-viable institutions.

The bearish mood extended to the Chittagong Stock Exchange (CSE) as well. The CSCX index fell by 73 points, or 0.84%, to 8,579, while the CASPI index dropped 116 points, or 0.83%, to close at 13,877. Turnover at the port city bourse plunged sharply to Tk4.03 crore, underscoring the subdued trading environment.

Qatar and the United Arab Emirates will soon join a US-led initiative to secure AI and semiconductor supply chains, Undersecretary of State for Economic Affairs Jacob Helberg told Reuters in an interview.

The addition of those two countries is notable given the Middle East’s history of political divisions and reflects a US-led effort to bring Israel and Gulf states into the same technology-focused economic framework.

The programme, dubbed Pax Silica, seeks to safeguard the full technology supply chain, including critical minerals, advanced manufacturing, computing and data infrastructure. It is a key pillar of the Trump administration’s economic statecraft strategy to reduce dependence on rival nations and strengthen cooperation among allied partners.

“The Silicon Declaration isn’t just a diplomatic communiqué,” Helberg said. “It’s meant to be an operational document for a new economic security consensus.”

The group includes Israel, Japan, South Korea, Singapore, Britain and Australia. Qatar is expected to sign the Pax Silica declaration on January 12, followed by the UAE on January 15.

Unlike traditional alliances, Helberg said, Pax Silica is a “coalition of capabilities,” with membership driven by the industrial strengths and companies of each country.

Helberg said he hopes the initiative can help accelerate the Middle East’s economic transition away from energy dependence, toward a more diversified, technology-driven economy.

“For the UAE and Qatar, this marks a shift from a hydrocarbon-centric security architecture to one focused on silicon statecraft,” he said,

The moves come against the backdrop of The Future Minerals Forum, a government‑led global minerals and supply chain conference hosted by Saudi Arabia that will bring together senior officials, industry leaders and investors in Riyadh from January 13‑15.

Helberg said the Pax Silica group will focus this year on expanding membership, building strategic projects to secure supply chains and coordinating policies to protect critical infrastructure and technology.

The group met in Washington last month. Helberg said he hopes it will meet a few times this year.

He said discussions are under way on projects that could modernize trade and logistics routes, including the India-Middle East-Europe Corridor, using advanced US technology to boost regional integration and expand America’s economic footprint.

US and Israeli officials plan to launch a Pax Silica-linked Strategic Framework, including the “Fort Foundry One” industrial park in Israel to accelerate projects. AI cooperation will also be discussed, with a memorandum of understanding tentatively planned for January 16.

The National Board of Revenue (NBR) has introduced an online, real-time system to verify exporters' use of duty-free imported raw materials, effectively ending the long-standing manual verification process.

Under the new system, the NBR's ASYCUDA World software will be digitally connected with the Bangladesh Garment Manufacturers and Exporters Association's (BGMEA) online Utility Declaration (e-UD) platform.

Through this integration, customs authorities will be able to verify exporters' raw material usage online, significantly reducing opportunities for fraud, NBR officials said.

The connectivity between ASYCUDA World and the BGMEA e-UD platform was established today (11 January), according to an NBR press release. As a result, the Utility Declaration verification process will now be fully online and conducted on a real-time basis.

The NBR said the initiative would substantially reduce risks to revenue protection, improve customs bond management, and make import-export clearance procedures faster and more efficient.

A senior NBR official, speaking to The Business Standard on condition of anonymity, said irregularities often occurred in the issuance of e-UD certificates by associations, particularly regarding the declared use of imported raw materials.

"Such irregularities were difficult to detect under the manual system," the official said.

"With the new system, export data and information on raw material usage will be easily accessible even after 10 years," the official added.

"If an exporter shows fake exports or diverts duty-free raw materials to the local market through any means, it will be detected easily. As a result, they will not be able to continue importing raw materials under duty-free facilities at will."

The government allows exporters to import raw materials duty-free on the condition that they are used entirely for export-oriented production.

However, there have long been allegations that some exporters violate these conditions by selling such raw materials in the domestic market.

These practices not only cause significant revenue losses for the government but also create unfair competition for local producers and traders who import similar products after paying applicable duties.

Local textile mills have been among the worst affected. Mill owners claim that duty-free raw materials sold in the open market and goods entering the country through smuggling result in the influx of yarn, fabric and other apparel products worth nearly $5 billion annually, undermining the domestic textile industry.

Bangladesh Telecommunications Company Limited (BTCL) has announced a major upgrade to its internet services, increasing speeds by up to five times across its existing packages while keeping monthly prices unchanged.

The move aims to improve digital services by allowing users to enjoy significantly faster connectivity at the same cost, the state-owned telecom operator said in a press release today.
Under the new offer, BTCL has rebranded its “Sulav” series as the “Sashroyi” series to reflect the enhanced value of the packages.
The increased bandwidth will support a wide range of digital activities, including online education, remote work, high-definition video streaming and gaming, the company said.

As part of the revision, the Tk 399 “Sulav-5” package, which previously offered 5 Mbps, has been upgraded to 20 Mbps and renamed “Sashroyi-20”.

The Tk 500 “Sulav-12” package has been increased to 25 Mbps, while the Tk 500 “Campus-15” package now offers 50 Mbps under the name “Campus-50”.

Mid-tier packages have received even sharper upgrades. The Tk 800 “Sulav-15” package now provides 50 Mbps, the Tk 1,050 “Sulav-20” package has increased fivefold to 100 Mbps, and the Tk 1,150 package now delivers 120 Mbps.

Higher-tier users will also benefit from the changes. The Tk 1,300 package now offers 130 Mbps, the Tk 1,500 package provides 150 Mbps, and the Tk 1,700 “Sulav-50” package has been boosted to 170 Mbps and rebranded as “Sashroyi-170”.
BTCL said the initiative would ensure more reliable and high-quality internet services for consumers and contribute to the country’s ongoing digital transformation.

Customer satisfaction and service quality remain the company’s top priorities, the statement added, noting that BTCL remains committed to introducing further customer-friendly initiatives in the future.

All-electric vehicles accounted for nearly one quarter of new cars sold in the UK last year, a record high, industry data showed Tuesday (6 January), as Britain phases out combustion engines.

The all-time annual high for EVs helped boost total car sales back above two million for the first time since before the Covid-19 pandemic, the Society of Motor Manufacturers and Traders said in a statement.

The SMMT called the two-million mark "a reasonably solid result amid tough economic and geopolitical headwinds."

With a record 473,348 all-electric vehicles registered in 2025, the SMMT said the UK ranked as Europe's second-largest EV market by volume.

Separate figures Tuesday showed a sharp rise in EV sales in Germany, where registrations surged 43.2% last year to a total of 545,142 vehicles.

Although Norway registered far fewer vehicles last year, at almost 180,000, almost 100% were electric.

The UK is meanwhile sticking with a target to ban the sale of new combustion-engine vehicles as early as 2030, and hybrids in 2035.

That makes Britain one of the most ambitious countries in the transition to electric vehicles, particularly after the European Union decided in December to roll back its proposed 2035 ban on new petrol and diesel cars.

"Divergence between the UK and the much larger market on its own doorstep is broadening," the SMMT noted Tuesday.

It warned, however, that too few EV models are eligible for government purchase grants and criticised the introduction of a tax on electric vehicles in Labour's recent budget.

"Rising EV uptake is an undoubted positive, but the pace is still too slow and the cost to industry too high," the SMMT said.

Last year also saw disruption at Jaguar Land Rover's UK plants, which halted production for a month following a cyberattack on the British automaker in September.

JLR sales fell in its third quarter, with wholesale volumes down 43.3% and retail sales down 25.1% year on year, it disclosed Monday.

The company attributed the decline to "the time required to distribute vehicles globally" after the shutdown, as well as "incremental US tariffs impacting JLR's US exports."

The government is set to slash allocations for development spending by 12.5 percent in the current fiscal year 2025-26 (FY26), as the originally allocated fund remains largely unspent in the first five months.

Ministries and divisions spent only 11.75 percent of the total Tk 2,38,695 crore allocated under the Annual Development Programme (ADP) in the July–November period, the lowest since FY11.

According to a draft of the revised ADP, prepared by the Planning Commission, allocations are set to drop to Tk 2,08,935 crore, down Tk 30,000 crore from the original plan.

The draft, seen by The Daily Star, is scheduled to be presented at today’s meeting of the National Economic Council, chaired by Chief Adviser Muhammad Yunus, and will take effect from 1 February once approved.

Speaking on condition of anonymity, a planning ministry official said the draft was finalised considering implementation capacity.

Last fiscal year, ADP spending was low due to political and administrative disruptions following the student uprising. This year, despite relative stability, implementation has not improved.

“The slowdown in public investment, while private investment remains muted, is a concern for growth,” the Centre for Policy Dialogue (CPD) said in its independent FY26 economic review released on 10 January.

Under the proposed plan, the health sector is going to face a significant cut in allocation because of its poor performance in terms of implementation. Similarly, allocations in the agriculture, education, and power sectors may also decrease.

According to the draft, among the five sectors receiving the highest allocations, transport and communication will receive Tk 38,509 crore or 19.25 percent of total revised ADP and power and energy Tk 26,186 crore or 13.09 percent.

Housing and community facilities will receive Tk 22,729 crore, education Tk 18,549 crore, and local government and rural development Tk 15,142 crore.

These five sectors account for 60 percent of the total revised allocation for FY26.

The draft also proposes raising the total number of projects for the fiscal year to 1,330 from 1,173 in the original ADP, with 138 newly approved initiatives.

Although allocations for many projects are being reduced, some may see increases.

The Dhaka–Ashulia Elevated Expressway, funded by Chinese loans, may see an increase in funds from the original Tk 3,341 crore, while allocations for Japan-funded projects such as the Metro Rail and Matarbari Deep Sea Port may be trimmed.

The Rooppur Nuclear Power Plant construction allocation will remain unchanged.

The Bangladesh Telecommunications Company Limited (BTCL) has announced a reduction in registration and renewal fees for two categories of .bd domain names to encourage local use.

According to a statement issued yesterday, the price cut applies to .bd third-level domains and .bd second-level domains, both with names longer than two characters. The company said fees for these categories have been reduced by 36 percent.

For a .bd Third-Level Domain, such as abc.com.bd, the registration fee has been reduced from Tk 1,100 to Tk 700, while the renewal fee has fallen from Tk 1,600 to Tk 1,020.

For a .bd Second-Level Domain, such as abc.bd, the registration fee has been reduced from Tk 2,000 to Tk 1,280, and the renewal fee from Tk 2,500 to Tk 1,600.

Compared with .com domains, .bd domains are generally easier to obtain and more readily available. They also offer greater credibility for Bangladesh-based individuals and organisations, making them particularly suitable for government bodies and established institutions.

A .bd domain helps build a professional and trustworthy image in the local market and enhances acceptance among domestic users. It can improve rankings in Bangladesh-focused search results, and due to local registration policies, .bd domains are considered comparatively more secure.

Value-added tax (VAT) will apply at the prescribed rate. All registrations and usage must comply with guidelines issued by the Bangladesh Telecommunication Regulatory Commission (BTRC), as well as tariff-related decisions approved by BTCL authorities.

The offer will remain valid for a limited period.

BTCL expects the price incentive to encourage wider adoption of .bd domains among individuals and organisations, contributing to the strengthening of the country’s domestic digital ecosystem.

Bangladesh Bank (BB) has appointed an observer at the Shariah-based Standard Bank to closely monitor its operations amid alleged internal conflicts between board members.

The central bank appointed Md Sharafat Ullah Khan, director of the Payment Systems Department, as an observer last week, according to BB Executive Director and spokesperson Arif Hossain Khan.

“We have taken this move in view of the current situation at the bank,” he said.

From now on, Md Sharafat Ullah Khan will attend board meetings and other vital meetings at Standard Bank as part of the BB's enhanced supervision.

Following the fall of the previous government, the 16-member board of the private bank has reportedly split into two camps over various issues. One faction is led by the Chairman, Mohammed Abdul Aziz, while the other is steered by his son and vice-chairman, AKM Abdul Alim.

Speaking on the condition of anonymity, bank officials said the feud has paralysed decision-making, with board meetings often ending in arguments over staffing and management matters.

Standard Bank began operations on 3 June 1999. In January 2021, it became a full-fledged Shariah-based Islamic bank after receiving approval from Bangladesh Bank.

Kazi Akram Uddin Ahmed, a businessperson and relative of deposed Prime Minister Sheikh Hasina, served as the chairman of the bank for years. However, following the political shift, Mohammed Abdul Aziz assumed the role.

An earlier BB inspection found various irregularities involving the bank's former chairman, Kazi Akram, and his son, former director Kazi Khurrum Ahmed. These issues contributed to the bank's financial decline, according to the central bank report.

At the end of September last year, the bank's defaulted loans stood at Tk 5,884 crore, accounting for 29.14 per cent of its total disbursed loans. During the same period in 2024, its classified loans amounted to Tk 1,679 crore, or 8.62 per cent of total disbursed loans.

The National Board of Revenue (NBR) has rolled out a new large-value transaction facility allowing corporate tax and value-added tax payments through the mobile financial service provider, bKash.

NBR Chairman Md Abdur Rahman Khan inaugurated the service yesterday at NBR’s headquarters in Dhaka.

Using an online merchant wallet developed by bKash Limited, taxpayers can now pay withholding tax through the NBR’s e-TDS platform, while VAT payments can be made through the Finance Division’s A-Challan system.

NBR Member (VAT Policy) Azizur Rahman said that previously, tax payments through the A-Challan system were limited to Tk 3 lakh. The new facility removes this limit, allowing taxpayers to pay unlimited amounts through bKash.

bKash Finance Controller Muhammad Arifur Rahman said that a tax payment can now be completed in less than two minutes using either a bank account or a mobile wallet.

“The move advances the NBR’s digitisation drive,” said NBR Chairman Khan, adding that the authority aims to shift all tax payments to digital channels to ensure faster processing, greater accuracy and transparency, and lower risk.

Allowing large-value payments through digital wallets and merchant accounts would ease compliance for big taxpayers while enhancing revenue oversight, he said.

The platform is open to all licensed mobile financial service providers, including Nagad, Rocket, CellFin, and Upay, and Khan said he expects more operators to actively support such transactions.

The US banking industry is warning that President Donald Trump’s plans to lower credit card costs would make credit less available and hurt consumers and businesses.

Trump said Friday that effective January 20, the first anniversary of his administration, he was calling for a 10 percent cap on credit card interest rates.

“We will no longer let the American Public be ‘ripped off’ by Credit Card Companies that are charging Interest Rates of 20 to 30 percent,” he said on Truth Social.

Five associations representing US banks responded that they shared the president’s goal of helping Americans access “more affordable credit.”

“At the same time, evidence shows that a 10 percent interest rate cap would reduce credit availability and be devastating for millions of American families and small business owners who rely on and value their credit cards,” the associations said in a joint statement late Friday.

“If enacted, this cap would only drive consumers toward less regulated, more costly alternatives,” it said. The statement was issued by the American Bankers Association, Bank Policy Institute, Consumer Bankers Association, Financial Services Forum and Independent Community Bankers of America.

Credit cards are the primary source of consumer credit in the United States. Costs and outstanding balances have soared in recent years as people increasingly rely on them to maintain spending, even for basic necessities.

According to data from the Federal Reserve, the total outstanding credit card debt exceeded $1.23 trillion at the end of September -- the fourth-largest source of household debt, after mortgages, student loans and auto loans.

Interest rates on credit cards are at least 21 percent and can reach as high as 38 percent for borrowers with a higher risk profile, according to the Fed. This is up from an average of around 12 percent a decade ago.

With midterm elections due in November, Trump is under pressure to reduce the cost of living as promised during his 2024 election campaign amid stubborn inflation and consumers’ complaints that they struggle to make ends meet.

Senator Elizabeth Warren, the top Democrat on the Senate Banking Committee, voiced skepticism that Trump was serious about capping rates, noting that he has sought to shutter the Consumer Financial Protection Bureau (CFPB), a consumer watchdog.

“Begging credit card companies to play nice is a joke,” Warren said in a statement Friday. “Trump doesn’t care about affordability.

The dollar gained on Friday after data showed slower than expected US jobs growth, suggesting the Federal Reserve could leave interest rates unchanged later this month.

The unemployment rate fell to 4.4 percent last month from a revised 4.5 percent in November, the US Labor Department reported on Friday, even as employers added 50,000 jobs in the month. Economists polled by Reuters had forecast a gain of 60,000.

The latest job market data appears to give the central bank a bit of breathing room to leave short-term borrowing costs where they are, as Federal Reserve Chair Jerome Powell last month signaled policymakers are inclined to do at least in the near term.

Financial markets had been bracing for a possible Supreme Court decision that could strike down President Donald Trump’ssweeping tariffs.

But the court will now not issue that ruling on Friday, though a decision could still come next week.

The US economy added 50,000 jobs in December, according to Labor Department data released on Friday. That was lower than an estimated increase of 60,000 jobs forecast by economists in a Reuters poll.

The dollar was up 0.2 percent to 0.801 against the Swiss franc , headed for the second straight week of gains.

The dollar index rose 0.25 percent to 99.13 and was set for the second consecutive week of gains.

“In real life, the standard error margin for non-farm payrolls is 20,000 and so I don’t think the market is going to pay much attention to this,” said Steve Englander, head of global G10 FX Research at Standard Chartered.

Fed funds futures are pricing an implied probability of 95 percent that the central bank holds interest rates at its next two-day meet on January 27 and 28, up from 68 percent a month ago, the CME Group’s FedWatch tool shows.

With optimism surrounding the upcoming election next month, capital market investors are reshuffling their portfolios toward blue-chip and fundamentally strong stocks, as increased buying appetite pushed these shares to the top of the turnover chart last week.

Riding on strong trading driven by investors' sector-specific concentration in blue-chip and bank stocks, turnover at the Dhaka Stock Exchange (DSE) surged by 34% last week, while all indices posted gains, data showed.

The other two indices – DS30, the blue-chip index, and DSES, the Shariah index – gained 45 points and 4.8 points respectively, to close at 1,915 and 1,011.

Throughout the week, total turnover stood at Tk2,373 crore, with average daily turnover of Tk474.54 crore – up 34% from the previous week.

In its weekly market commentary, EBL Securities said the benchmark index of the capital bourse extended its upward trajectory over the week, carrying forward New Year optimism, as dominant buying interest prevailed amid expectations of moderation in prevailing market uncertainties.

"Investors selectively repositioned into heavyweight banking stocks amid improving sectoral expectations and perceived clarity on the political front, which added strength to the market's upward trajectory," it said.

"While intermittent profit-taking emerged as cautious participants booked recent gains, buying interest ultimately outweighed selling pressure by week's end, driven by strong accumulation in particular large-cap stocks," the commentary added.

Investors were mostly active in the banking sector, which contributed 19.5% of total turnover, followed by the textile sector at 13.9% and the pharmaceuticals sector at 13.0%.

DSE data showed that of the top ten turnover stocks, nine were from the A category, while one was from the B category. Orion Infusion led the turnover chart with a 4.83% share of total turnover, followed by Square Pharmaceuticals, City Bank, Uttara Bank, and Fine Foods.

On the gainers' front, mostly A- and B-category stocks dominated the top ten gainers. Tallu Spinning Mills, a Z-category stock, topped the chart with a 20.29% rise in share price to Tk8.30 each, followed by GQ Ball Pen, which rose 16.33% to Tk527.10, Pubali Bank by 14% to Tk36.60, Islami Bank by 12.65% to Tk37.40, and NRB Bank by 11.29% to Tk6.90.

Meanwhile, Z-category stocks – mostly weak non-bank financial institutions – dominated the top ten losers. Peoples Leasing, Fareast Finance, FAS Finance, Premier Leasing, and International Leasing featured prominently on the losing list.

Auditors have found major documentation gaps over about Tk76 crore in cash withdrawn by listed Fortune Shoes Limited during the 2024-25 financial year, leaving the funds untraceable.

The audit was conducted by G Kibria & Co, Chartered Accountants, which reported that the company withdrew the funds from a regular account maintained with Islami Bank through 207 cheques.

However, the company failed to provide necessary documentation – such as the cash book, bank book, cheque counterfoils, invoices, vouchers, and delivery challans – to verify the use of the withdrawn funds.

The absence of even the cash book made it impossible for the auditors to confirm whether the money was used for legitimate business purposes.

On Thursday (8 January), the share price of the company closed at Tk14.40 on the Dhaka stock exchange.

The audit report also highlighted Tk19.73 crore in insurance claims related to fire damage to raw materials and finished goods in 2022, which the company had included in its financial statements.

Of this, Tk13.65 crore was claimed from Takaful Insurance Limited and Tk6.08 crore from Prime Insurance Company Limited. Nearly three years have passed, yet the claims remain unsettled.

No correspondence or documentation regarding the likelihood of recovery was provided to the auditors, raising significant uncertainty over the realisability of the claims.

The auditors further noted that although Fortune Shoes declared and approved dividends for the 2022, 2023, and 2024 financial years, the full amounts were not distributed. Dedicated dividend accounts were opened with Prime Bank PLC, but the entire approved amounts were not transferred.

As a result, Tk10.05 crore in dividends remained unpaid as of 30 June 2025, in violation of applicable laws and regulations.

Material discrepancies were also found between the company's accounting records and its monthly VAT returns. According to the auditors, differences included Tk143.63 crore in revenue, Tk13.86 lakh in local raw material purchases, and Tk40.21 crore in imported raw material purchases, indicating significant reporting inconsistencies.

The audit report additionally raised concerns over employee retirement benefits. Fortune Shoes does not maintain any approved provident fund or gratuity scheme.

Instead, an employee-initiated fund is being operated without proper authority and is not subject to regular audits, which is contrary to the Financial Reporting Council (FRC) requirements.

City Bank PLC has decided to construct a multi-storied office at Gulshan-2 in the capital at an estimated cost of Tk855 crore.

The bank announced the decision through a disclosure filed with the Dhaka Stock Exchange (DSE) on Thursday.

According to the disclosure, the bank's board of directors, in a meeting held on 7 January, decided to purchase approximately 20 katha of land on Gulshan Avenue to facilitate the construction. The purchase price for the land is Tk345 crore, inclusive of all related expenses.

This newly acquired land is adjacent to the bank's existing 20-katha plot in Gulshan. By combining these two parcels of land, the bank will now have a total of approximately 40 katha at the site, where the multi-storied building will be constructed.

The land purchase received approval from the Bangladesh Bank on 6 January 2026.

The bank stated that the project is subject to obtaining all necessary approvals from relevant regulatory authorities and ensuring full compliance with the guidelines and conditions stipulated by the central bank.

Following the disclosure, City Bank's share edged down by 0.396% to close at Tk25.80.

Earlier, City Bank has posted a remarkable surge in profits for the first nine months of 2025, as the lender strategically shifted towards risk-free investments in government securities amid an uncertain economic environment.

The bank's consolidated net profit rose 60% year-on-year to Tk720 crore in the January-September period, from Tk450 crore a year earlier. Earnings per share (EPS) climbed to Tk4.75, up from Tk2.96, reflecting strong earnings momentum across its investment portfolio.

"As a strategic initiative, City Bank's substantial investment in government securities led to a marked increase in investment income, effectively offsetting the decline in net interest income and supporting the coverage of escalating operational expenses," the bank said in its statement.

If the national election is held according to the timeline announced by the Election Commission, the new government will face the challenge of managing high Ramadan market prices immediately upon taking office. At the same time, analysts say certain policy decisions and actions taken by the interim government are creating financial and political pressure for the next elected government.

The new government will have to confront multiple challenges, including controlling high inflation, strengthening revenue collection to cover development and operating expenditures, increasing investment to generate new employment, restructuring a banking sector burdened by defaulted loans, and expanding foreign assistance.

Since assuming office, the interim government has increased operating expenditures in several ways. In particular, general and retrospective promotions have been granted within the public administration. Allowances for training, committee responsibilities, and other benefits have been increased. A new pay commission has also been formed, raising expectations among government employees that salaries will be increased, expectations that the next government will now have to address.

In addition, the government has accumulated substantial debt by borrowing at high interest rates to pay electricity subsidies, import fuel oil, and settle various arrears. Spending on social safety net programmes and fertiliser subsidies has also increased.

On the other hand, the interim government has reduced spending under the Annual Development Programme (ADP), leading to a decline in domestic demand. Accelerating ADP spending will be another challenge for the elected government. Overcoming the slowdown in revenue collection will also be a major hurdle.

Since the current government took office, several large industrial factories have shut down, while new investment has failed to materialise. As a result, many workers have lost their jobs, and new employment opportunities have not been created. Consequently, Bangladesh currently has a large unemployed population, and creating jobs for them will be a major challenge for the next government.

Controlling high inflation, overcoming weaknesses in the banking sector, and increasing revenue collection will also be key challenges. Beyond this, stimulating both domestic and foreign investment and expanding external cooperation will pose additional difficulties.

Managing social disorder and religious extremism will also remain a challenge.

Analysts believe improving internal political stability and foreign relations will be difficult. They note that the current government has banned the activities of the Awami League, a major political party in the country. Governing effectively while keeping such a large party banned will not be easy. At the same time, lifting restrictions on the party carries political risks that the government may not be able to take quickly. Maintaining the ban may also complicate foreign relations, as some countries may be reluctant to engage with a government that has banned the Awami League.

Inflation control

According to data from the Bangladesh Bureau of Statistics (BBS), inflation rose slightly in November, reaching 8.29%, up from 8.17% in October. Inflation has fluctuated over recent months but has remained around the 8% level. Inflation is expected to rise further during Ramadan.

Pressure from increased expenditure

After taking office, the current government recorded the lowest development expenditure in several years. In the 2024–25 fiscal year, only 67.85% of the ADP allocation was spent, the lowest level in more than a decade. ADP allocations have also been reduced in the 2025–26 fiscal year, with Tk2,38,695 crore allocated. Even from this reduced allocation, spending has fallen short.

During the first five months of the current fiscal year (July–November), only 11.75% of the ADP allocation was spent, the lowest on record. This has resulted in limited job creation, declining demand for private-sector goods, and negative trends in GDP growth. The next government will face pressure to increase development spending to stimulate employment and private investment. However, experts question where the funding for this increased spending will come from.

Former finance secretary Mahbub Ahmed told The Business Standard that job creation will be the biggest challenge for the elected government. "To address this, GDP growth must be boosted by increasing both public and private investment. Raising public investment will require higher revenue collection, which will not be easy. Increasing private investment will require improving the investment climate and restoring confidence, which in turn requires improving law and order and reducing administrative complexity—both of which are difficult tasks."

He added that increased government spending could fuel inflation, making inflation management another major challenge.

Revenue collection challenges

In the 2024–25 fiscal year, revenue collection fell short by Tk92,626 crore. For the current 2025–26 fiscal year, the government has set a revenue target of Tk4,99,000 crore through the National Board of Revenue (NBR).

In the first five months of the current fiscal year, NBR revenue grew by more than 15% compared with the same period last year, but collections still fell short of the target by Tk24,047 crore. Meanwhile, the government has taken on large volumes of both foreign and domestic debt, including high-interest loans.

Former NBR chairman Abdul Majid told The Business Standard that the elected government will face serious challenges in revenue collection. "The expected progress in revenue reform has not materialised. The NBR has been dissolved and split into two divisions, but it remains unclear when and how these divisions will begin operations. Bangladesh, therefore, continues to suffer from a low tax base and an opaque tax system, making additional revenue mobilisation difficult."

Overall, the elected government will face growing expenditure pressure and may be forced to rely once again on foreign borrowing.

Additional spending in public administration

The government has formed a pay commission to raise salaries for public servants. While the current government intended to introduce a new pay scale, it has not been able to do so, leaving the responsibility to the next government.

The last pay scale was implemented in 2015, when salaries were increased by 70% to 100%. Ten years later, a similar increase would raise government salary expenditure by nearly Tk84,000 crore, with pension costs also increasing.

Higher public-sector salaries will also create pressure to raise wages in the private sector, particularly in sectors where the government sets minimum wages. Overall wage increases in both sectors are likely to add inflationary pressure, which the next government will have to manage.

Weaknesses in financial institutions

The current government has merged five troubled Islamic banks to form a new entity, United Islamic Bank, injecting Tk20,000 crore in capital from the budget. Ensuring depositor confidence and recovering loans will fall to the next government.

As of September, defaulted loans stood at Tk6,44,515 crore, accounting for 36% of total bank lending. Seventeen banks have default ratios exceeding 50%, pushing them into capital shortages. Several financial institutions and insurance companies are also in distress, making revitalisation of the financial sector a major challenge.

Towfiqul Islam Khan, additional director (research) at CPD, told The Business Standard that the expected positive changes after the change in government have not materialised. There has been no significant improvement in revenue collection or government spending efficiency.

"The government is borrowing without fully assessing repayment capacity, while simultaneously taking steps that may increase future expenditure. Job creation has stalled, investment has stagnated, and regardless of who takes responsibility for the state next, they will have to confront challenges related to revenue mobilisation, debt repayment, rising expenditure, employment generation, and revitalising investment," he said.

The Centre for Policy Dialogue (CPD) has urged the next elected government to implement immediate and politically challenging reforms – particularly in banking, energy, revenue mobilisation and food supply – to stabilise the economy and restore confidence.

The think tank cautioned today (10 January) that delaying tough decisions early in the government's term could sharply increase both economic and political costs. With revenue targets under strain, banks posting historically low profitability and investor confidence already weakened, the CPD said reform momentum must be restored quickly to stabilise expectations among businesses, lenders and consumers.

In its latest Independent Review of Bangladesh's Development 2025-26, the CPD flags multidimensional risks across public finance, food security, banking, energy and trade. While export earnings and foreign exchange reserves have provided a degree of stability, the organisation warned that weak revenue mobilisation, entrenched inflation, deteriorating bank health and prolonged policy uncertainty could undermine growth and social stability without decisive action.

The CPD stressed that rebuilding confidence will depend less on new policy announcements and more on credible execution through experienced leadership at key institutions, transparent communication with stakeholders and sustained implementation of reforms initiated under the interim administration.

Revenue collection rises 16.7%, but meeting target still challenging: CPD

CPD Executive Director Fahmida Khatun presented the findings of the state of the economy for the first half of the 2025-26 fiscal year at a press conference at the organisation's Dhaka office.

Banking sector remains most fragile area

The banking sector continues to be one of the most fragile segments of Bangladesh's economy, marked by weak capital adequacy, deteriorating asset quality and falling profitability, Fahmida said.

The CPD warned that persistent weaknesses in the banking system pose risks to overall economic stability and stressed the need for swift enactment and implementation of reform legislation.

It said restoring Bangladesh Bank's independence and authority, along with consistent application of the bank resolution framework, is essential to bring discipline back to the sector.

According to the CPD, most banks are struggling to maintain adequate risk-based capital, with capital positions continuing to weaken across the sector.

Asset quality has also deteriorated significantly, with defaulted loans now accounting for about 36% of total loans, amounting to Tk5,44,549 crore – nearly 12 times higher than the level recorded in 2015.

At the same time, the CPD noted that although liquidity is available in the banking system, demand for loans remains low due to prolonged stagnation in investment.

High interest rates and political uncertainty have discouraged private investment, leading to a decline in the loan-deposit ratio and leaving many banks with excess liquidity.

Import reliance and LNG spending threaten energy security

The CPD warned that import dependency in the power and energy sector is increasing.

It noted that the sector is facing multiple pressures, including an outstanding payment burden of Tk20,000 crore that must be repaid, stagnant production capacity, and a continued reliance on imported fuel.

Food supply shows no improvement despite easing inflation: CPD

It said Tk58,000 crore is expected to be spent on LNG imports alone, a situation the CPD described as a matter of grave concern for energy security.

The think tank pointed out that transmission lines have increased by 12.5% and distribution lines by 1.25%, with some growth in renewable-based generation.

Coal use has increased by 3% over the past one and a half years, which the CPD flagged as concerning at a time when the interim government has committed to a zero-carbon path.

It noted that 34 cancelled solar power projects have weakened investor confidence, and that implementation processes remain slow and complex, preventing expected benefits from materialising.

The CPD recommended reducing dependency on LNG imports, shutting down inefficient old power plants, and phasing out tax exemptions on fossil fuels.

It said such incentives should instead be directed towards renewable energy.

According to the organisation, these measures are achievable within the first 100 days of the new government after the election next month.

Revenue target challenging

The CPD said that although the country's revenue collection has grown by 16.7% in the first six months of the current fiscal year, achieving the annual target will be challenging.

On the public financial system, the organisation said both revenue mobilisation and expenditure management are critical areas that will need attention.

It also observed that the interim government initiated some reforms, but these will need to be completed by the incoming administration.

To reach the full-year goal, an additional 3% growth would be required, which the CPD noted as challenging given current trends.

Food supply shows no improvement despite easing inflation

The CPD said there has been no improvement in Bangladesh's food supply system in the first half of FY26, warning that structural weaknesses continue to keep prices elevated despite easing global trends.

The organisation said weaknesses in storage, distribution and market competition remain unresolved, contributing to persistently high food prices.

The CPD pointed out discrepancies in the domestic market, saying the country produces more rice than its estimated demand.

It pointed out that annual demand stands at 41 million tonnes while production is 44 million tonnes, highlighting weaknesses in supply management.

The organisation also noted a decline in agricultural labourers' wages, even as food prices continue to rise.

On policy recommendations, the CPD stressed that inflation cannot be reduced merely through higher market interest rates.

It said increasing supply, preventing hoarding and enhancing market competition are necessary to stabilise prices.

The organisation called for an integrated food policy framework to ensure effective imports, maintain adequate food stock, and streamline supply and transport systems.

Q&A session

In response to a question, Fahmida said, "We want the upcoming election to be fair, neutral, and participatory. The election candidates will use money according to the policy that the Election Commission (EC) has formulated regarding the use of funds. The EC will ensure that there is no excessive use of money. We wish for there to be no violence of any kind, and that the general public can cast their vote by going to the polling stations."

Addressing the risks of rising coal-based electricity use, CPD Distinguished Fellow Professor Mustafizur Rahman warned that Bangladesh's RMG sector relies on electricity generated from coal plants, which could trigger carbon-related penalties under export conditions.

He said higher coal use may create obstacles for Bangladeshi products entering international markets, beginning with the European Union and potentially extending to other destinations.

Responding to another question, Fahmida said that Bangladesh's biggest problem is that investment is declining, and for quite some time, there has been no significant jump in investment. "Employment will not be created unless the private sector develops."

Regarding Bangladesh's potential, she said that the country's potential lies in its energetic young population.

In response to another question, Prof Mustafizur said that over-valued mega projects have been implemented using foreign loans without properly considering the economic and financial returns. "Caution is necessary regarding this in the future."

He strongly advised placing the greatest emphasis on increasing revenue collection, particularly collecting revenue from direct income/taxes.

Regarding the issue of the debt trap, Fahmida said, "Transparency and accountability are necessary in the use of loan funds."