Global oil and gas shipping rates soared, with supertanker costs in the Middle East hitting all-time highs, as the US-Iran conflict intensified after Tehran targeted ships passing through the Strait of Hormuz, according to shipping data and industry sources on Tuesday.

Shipping through the Strait of Hormuz between Iran and Oman, which carries around one-fifth of oil consumed globally as well as large quantities of liquefied natural gas, has ground to a near halt after vessels in the area were hit as Iran retaliated to US and Israeli strikes.

The disruption and fears of prolonged closure have caused oil and European natural gas prices to jump, with Brent crude futures up nearly 10% this week as the conflict triggered multiple oil and gas shutdowns in the Middle East.

The benchmark freight rate for the very large crude carriers (VLCCs) used to ship 2 million barrels of oil from the Middle East to China, also known as TD3, rose to an all-time high of W419 on the Worldscale industry measure used to calculate freight rates, on Monday, or $423,736 per day, LSEG data showed.

The rate doubled from Friday, extending gains from a six-year high last week, after the US and Israel attacked Iran and killed its Supreme Leader Ayatollah Khamenei on Saturday.

In retaliation, Iran has struck Gulf countries, prompting precautionary shutdowns at oil and gas facilities across the Middle East.

An Iranian Revolutionary Guards senior official said on Monday that the Strait of Hormuz is closed and Iran will fire on any ship trying to pass, Iranian media reported.

The US military's Central Command said the Strait is not closed despite the Iranian statements, Fox News reported.

LNG shipping rates jump

Still, daily freight rates for LNG tankers jumped more than 40% on Monday after Qatar halted its production.

Atlantic rates rose to $61,500 per day on Monday, up 43%, or $18,750, from Friday, according to Spark Commodities, a pricing assessment agency for LNG shipping. Pacific rates rose to $41,000 per day, up 45%, or $12,750, from Friday.

Fraser Carson, principal analyst for global LNG at energy consultancy Wood Mackenzie, said spot daily LNG shipping rates could rise above $100,000 this week on tight supply.

"Vessel availability for the rest of March is considered weak as cargo operators try to work through the backlog created by weather disruptions during February," he said.

"There will be very strong competition for any available vessels," he added.

Until safe passage through the Strait of Hormuz can be assured, shipping will remain idle, Carson said.

An oil shipbroker who declined to be named due to company policy said it is very difficult to assess shipping rates in the Gulf as several shipowners have suspended operations indefinitely.

South Korean shipping firm Hyundai Glovis said on Tuesday it is preparing contingency plans including securing alternative routes and ports in response to the Middle East conflict.

South Korea's maritime ministry has issued a notice to South Korean shippers with vessels sailing in the Middle East, asking them to refrain from business operations in the region, an official told Reuters on Tuesday.

The ministry is holding a meeting to discuss further safety measures following Iran's threat to attack any ship passing through the Strait of Hormuz, the official added.

Dhaka stocks tumbled in the first half today amid rising fears over the impact of the conflict in the Middle East after Iran warned of attacks on ships sailing through the Strait of Hormuz, one of the world’s most critical maritime trade routes.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), plunged 131 points, or 2.37 percent, to 5,402 in the initial trading hours.

The decline came after a day of recovery in share prices. The premier bourse dipped amid concerns after the conflict began. Yesterday, the index rose 77 points.

The DS30, the blue-chip index, fell 59 points, or 2.89 percent, to 2,073.

The DSES, the Shariah-based companies’ index, also slumped in early trade.

Stock market analysts said investors were panicked as the Iran war was intensifying, which could impact Bangladesh’s economy, which is highly dependent on oil and gas from Middle Eastern countries.

Yesterday, Danish shipping giant Maersk suspended all new cargo bookings between the Indian subcontinent, including Bangladesh, and the Gulf region amid the evolving situation in the Middle East.

Earlier, Mediterranean Shipping Company (MSC), in a customer advisory issued on March 1, declared a booking suspension for worldwide cargo to the Middle East.

Several other global shipping lines also announced the suspension of Middle East cargo bookings.

At the DSE, turnover — an important indicator of the market — stood at Tk 456 crore as of 11:53 am.

Among the traded stocks, 40 advanced, 326 declined, and 22 remained unchanged.

The Bangladesh Securities and Exchange Commission (BSEC) on Tuesday approved the prospectus of ‘LankaBangla Fixed Income Fund,’ an open-ended mutual fund, during its 1001st commission meeting held at the BSEC headquarters in the capital.Bangladesh economic trends

The regulatory decision was reached today during the 1001st commission meeting conducted at the BSEC meeting room, said a press release.

BSEC Chairman Khondoker Rashed Maqsood presided over the session.

The ‘LankaBangla Fixed Income Fund’ is established as an open-ended mutual fund with an initial primary target of Taka 25 crore.

The LankaBangla Fund has a capital structure comprising a Taka 2.5 crore contribution from the sponsor and a Taka 22.5 crore public offering, with each unit priced at a face value of Taka 10.

According to a BSEC press release, the commission has formally approved both the draft prospectus and the abridged version of the prospectus for the fund. The approval of the abridged version serves as the regulatory clearance required for the asset manager to proceed with public notifications and the formal investor subscription process.

Bangladesh Bank has allowed banks to renew continuous loans even after the stipulated tenure expires, provided the loan has not yet been classified as a default.

In a circular issued yesterday (2 March), the central bank directed all scheduled banks to implement the decision immediately. The facility will remain effective until 31 December 2027.

Under the new directive, if renewal of a continuous loan is not completed within the existing tenure, it may still be renewed until the loan becomes non-performing.

However, if it is classified as a default loan, renewal will no longer be permitted until the outstanding amount is adjusted.

Bankers said the move would ease pressure on both banks and clients during the current economic situation.

They noted that delays and procedural complexities in renewing short-term loans, particularly in the import-export and trade sectors, would be reduced.

A senior Bangladesh Bank official, speaking on condition of anonymity, told The Business Standard there is a risk of creating a culture where continuous loans are kept regular without actual repayment, which could pose long-term challenges for the banking sector.

The official said that in the case of large credit limits, businesses are expected to withdraw and repay funds within the approved limit and adjust the entire loan at the end of the year or keep the account within the stipulated conditions.

"According to the new circular, Bangladesh Bank has given them an extra three months; however, strict monitoring must be maintained to ensure proper implementation," the official said.

The circular also stated that the renewal process, including receipt of applications and preparation of documents, must begin at least two months before the loan tenure expires.

If renewal cannot be completed on time due to reasons beyond control, it may be finalised before the loan is classified as default, provided the cause of the delay is documented in writing.

It further said that any over-limit portion of a loan may be adjusted and renewed. However, such over-limit amounts cannot be shown as a separate new loan or transferred to another account.

Previously, continuous loans, which usually have a one-year tenure, had to be renewed within that period.

If the borrower failed to complete the renewal on time, the entire outstanding amount, including principal and interest, had to be repaid before a fresh process could begin.

Under the new rules, borrowers will get an additional three months after the expiry of the original tenure. If the outstanding interest is paid within this extended period, the loan can be renewed without being classified as default.

If the interest remains unpaid beyond that time, the loan will be treated as non-performing and cannot be renewed until the full outstanding amount is settled.

Gold prices have increased again in the country, with the rate of 22-carat gold rising by Tk3,324 per bhori (11.664 grams), the Bangladesh Jewellers Association (Bajus) said today (3 March).

Following the latest adjustment, the price of 22-carat gold has been fixed at Tk2,77,428 per bhori, according to a notification issued by Bajus.

Bajus said the new rate had been determined in view of an increase in the price of pure gold (tejabi gold) in the local market and the overall market situation.

Under the revised pricing structure, 21-carat gold will cost Tk2,64,773 per bhori, while 18-carat gold has been set at Tk2,26,981 per bhori.

The price of gold produced under the traditional method has been fixed at Tk1,85,749 per bhori.

The last adjustment had come yesterday, when Bajus raised the price of 22-carat gold by Tk5,424 per bhori to Tk2,74,104.

So far in 2026, gold prices have been adjusted 36 times in the domestic market, raised on 24 occasions and reduced 12 times.

Despite the hike in gold prices, silver rates remain unchanged.

Currently, 22-carat silver is being sold at Tk7,173 per bhori.

In 2026, silver prices have been adjusted 21 times, with rates increased 14 times and reduced seven times.

Bangladesh's power plants and factories risk fuel shortages within days after QatarEnergy invoked force majeure on its long-term LNG contract, forcing Petrobangla to scramble for costly spot cargoes in an increasingly strained global market.

QatarEnergy, the world's largest LNG producer and Bangladesh's biggest supplier, halted production following an Iranian attack earlier this week. Prime Minister Tarique Rahman has instructed authorities to urgently procure LNG from the spot market to avert a nationwide energy crisis.

Officials at the Energy and Mineral Resources Division confirmed that at least four spot cargoes are being sought for delivery in March.

QatarEnergy's Force Majeure notice

On 2 March, QatarEnergy formally notified Petrobangla of a "potential event of Force Majeure" under Clause 17 of their agreement, citing "recent hostilities in the region." Petrobangla Chairman Md Arfanul Hoque acknowledged receipt of the letter and said contingency measures are already underway.

Under the contract, QatarEnergy was scheduled to deliver 40 of Bangladesh's 115 planned LNG cargoes this year. With supplies now uncertain, Petrobangla fears a sweeping gas shortage that could disrupt power generation, industrial output, exports, and daily life.

Other long-term suppliers including QatarEnergy Trading LLC, OQ Trading Ltd, and Excelerate Gas Marketing Limited may also face disruptions due to their reliance on Qatari supply, though trading firms could have limited flexibility to source alternatives.

A force majeure clause excuses liability for non-performance during certain unforeseeable, uncontrollable, and exceptional events like natural disasters, wars, or pandemics.

QatarEnergy supplies around 20% of the world's seaborne LNG.

Scramble for alternatives

Policymakers warn that if such a major supplier dries up, securing cargoes from elsewhere will become increasingly difficult due to tightening global supply.

The QatarEnergy letter states, "While the Seller is still assessing the situation, it considers it important to inform the Buyer that these circumstances may prevent it from performing its delivery obligations under the Agreement."

It added, "We will keep you updated as the situation evolves and provide further information when it becomes available."

Immediately after receiving the notice, Petrobangla wrote back to QatarEnergy seeking clarification on whether deliveries would continue, as the letter used the phrase "may prevent" – leaving room for uncertainty.
PM directs LNG procurement from spot market amid Mideast crisis

Even before the production halt, LNG supply had been under pressure following Iran's closure of the Strait of Hormuz, a critical shipping route.

According to the latest Petrobangla data, seven LNG cargoes are scheduled to arrive in March – six from QatarEnergy via the Strait of Hormuz and one from Angola.

Petrobangla has already secured four cargoes from QatarEnergy, while two remain uncertain.

"We wrote to QatarEnergy to confirm whether they would be able to supply or not by today (3 March)," Arfanul said.

Contingency plan activated

Amid uncertainty over long-term supplies, Petrobangla has activated contingency plans and on Monday called for quotations from enlisted suppliers for delivery windows on 15 and 18 March. These two windows were originally scheduled for QatarEnergy cargoes, which are now in question following the force majeure declaration.

Petrobangla has also reached out to other suppliers to confirm whether they can honour their contractual commitments, given their exposure to Qatari supply, the chairman added.

How Petrobangla plans to offset supply cut

With the oil and gas supply chain already fragile amid escalating tensions in the Middle East, concerns are deepening. US President Donald Trump has signalled that the war could drag on for another four to five weeks — a statement that sent shockwaves through global energy markets as oil and gas prices climbed.

Meanwhile, Iran's complete blockade of the Strait of Hormuz has left ships stranded, further complicating logistics.

Officials from the Energy Division and Petrobangla said that if hostilities persist and shipping through the Strait remains blocked, Bangladesh will have little choice but to turn to the spot market.

"We got the green light from the government to search for alternative sources like the spot market," Arfanul said. "But availability has become a major challenge following the production halt by a global giant like QatarEnergy."

Despite soaring prices, the Energy Division has instructed Petrobangla to secure spot cargoes as quickly as possible to fill the vacuum created by disrupted long-term supplies.

Before the escalation, spot LNG was trading below $9 per MMBtu. On Monday, the Asian spot LNG benchmark – the Japan-Korea Marker (JKM) – surged to $13.365 per MMBtu.

If prices rise further, the burden on Bangladesh's energy import bill will aggravate.

Asked how Petrobangla would navigate prolonged high prices, the chairman struck a cautiously hopeful tone: "I hope the war will not last for months," he said. "To keep supply afloat, we have to bring LNG from the spot market. Otherwise, we will have no option but to cut supply to all sectors."

April supply also in question

Policymakers are now sounding alarm bells over April as well, fearing that the crisis may spill into the following month.

Officials say the supply chain has become increasingly fragile due to the complex geopolitical situation and the knock-on impact on QatarEnergy's output.

The Petrobangla chairman said the company has already reached out to all April suppliers seeking clarity.

"We have written to our April suppliers asking them to make their position clear regarding supply next month. They have been given time until 10 April to confirm," he said.

The chairman added that Petrobangla's next course of action will depend on their responses. "Based on their reply, we will decide our next steps, including securing additional LNG from the spot market, if necessary."

With uncertainty now stretching beyond March, energy officials fear that without timely confirmations, Bangladesh may have to rely even more heavily on high-priced spot cargoes to keep gas supply flowing.

Concerns over meeting electricity demand during Ramadan, as well as the upcoming summer and irrigation season, have intensified after two major coal-fired power plants reported fund shortages for coal imports due to unpaid subsidy arrears of Tk4,726.37 crore.

The Power Division yesterday wrote to the finance ministry warning that unless outstanding subsidy payments are released, the two largest coal-fired plants – Rampal's Maitree Super Thermal Power Plant and the Payra Power Plant – will be unable to import fuel and generate electricity.

The two plants together supply 2,400 megawatts of base-load power to the national grid. Subsidy payments have remained pending since August last year.

In the letter to Finance Secretary Dr Md Khairuzzaman Mozumder, the Power Division said that unless outstanding dues are released quickly, it will not be possible to ensure the additional electricity generation needed to meet demand during Ramadan, the irrigation season and the summer months.

"This could lead to load-shedding of 2,000–2,500 megawatts nationwide. As a result, irrigation activities will be disrupted, and public dissatisfaction may grow due to power cuts," the Power Division warned.

The developments come in the wake of the closure of the Strait of Hormuz due to the Iran war, and Qatar – Bangladesh's main LNG supplier – announcing the shutdown of its plants.

Pending subsidy funds

The Bangladesh Power Development Board (BPDB) has requested the finance secretary to release the pending subsidy funds in line with previous practice to ensure uninterrupted electricity supply during the ongoing Ramadan, irrigation season and the upcoming summer.

Subsidy payments to the 1,320MW Rampal Power Plant and the 1,320MW Payra Power Plant – both established during the Awami League government – have been suspended since August last year, as their tariff rates have not been approved by the Cabinet Committee on Government Purchase.

Although the government has held discussions with the two companies to revise the tariff rates, BPDB has been unable to place the proposal before the purchase committee due to pending clearance from foreign lenders.

The letter, signed by Deputy Secretary Mohammad Solaiman of the Power Division, further stated that timely payment to the plants is essential to ensure uninterrupted supply during Ramadan, the irrigation season and the forthcoming summer.

According to BPDB data, approximately Tk700-800 crore in subsidies is required each month for the Rampal and Payra plants. From August 2025 to January this year, subsidy arrears for the two coal-fired plants have accumulated to Tk4,726.37 crore. Due to the delay in fund disbursement, bills of several power plants cannot be paid on time.

"Since foreign loans are involved in the two plants, clearance from the respective lenders is required for tariff revision. As such clearance has not yet been obtained, the revised tariff rate could not be placed before the Cabinet Committee on Government Purchase for approval," the letter said.

"However, discussions with lenders are ongoing, and the tariff review will be completed as soon as possible so that the revised proposal can be sent to the purchase committee," the Power Division added.

In the wake of the conflict across the Middle East following attacks by the United States and Israel on Iran, Prime Minister Tarique Rahman has directed authorities concerned to procure the necessary liquefied natural gas (LNG) from the spot market.

As per the PM's instructions, the Energy and Mineral Resources Division has taken the initiative to purchase at least four LNG cargoes from the spot market during March, sources in the division told The Business Standard today (3 March).

According to the sources, amid the escalating conflict in the Middle East, the Energy and Mineral Resources Division briefed the PM today regarding the overall energy situation in both the public and private sectors.

He was informed that due to the suspension of vessel movement through the Strait of Hormuz and the halt in production by QatarEnergy, there is a risk that Bangladesh may not receive LNG under its long-term contract with Qatar.

However, Oman has confirmed the delivery of two LNG cargoes under the long-term agreement this month and has also pledged to provide an additional two cargoes. Still, a minimum of eight cargoes are required for the entire month.

A senior official of the Energy and Mineral Resources Division, speaking on condition of anonymity, told TBS, "The prime minister has instructed that the necessary LNG be imported from the spot market. He has also directed Bangladesh Bank to remain prepared to make immediate payments for fuel imports."

"Additionally, Bangladesh Bank has been instructed to ensure the supply of required foreign currency for private-sector LPG imports," he said.

The official added that Petrobangla today invited tenders to import two LNG cargoes from the spot market, while tenders for the remaining two cargoes will be floated later.

Notably, the government had not planned to purchase LNG from the spot market this month, he said.

The government currently supplies between 2,600 and 2,900 million cubic feet per day (mmcfd) of gas daily, of which 900 to 980 mmcfd comes from imported LNG.

To meet this demand, Bangladesh imports 110 to 115 LNG cargoes annually. Of these, 60 to 70 cargoes are imported under long-term agreements with Qatar and Oman, while the rest are procured from the spot market.

According to Petrobangla data, 2,662 mmcfd of gas was supplied today, including 952 mmcfd from imported LNG.

The official further said that Bangladesh Petroleum Corporation (BPC) currently has 200,000 tonnes of diesel in stock, sufficient for 14 days.

"Discussions are underway with several alternative countries to import refined fuel oil, particularly Malaysia, China and Saudi Arabia," he said.

The government has also contacted India to ensure the continuation of refined fuel oil supplies. Talks have been held with Saudi Aramco, which has assured that it will supply fuel oil from its sources outside Saudi Arabia.

According to Bangladesh Petroleum Corporation (BPC) sources, as of today, the country has 201,610 tonnes of diesel, 21,705 tonnes of petrol and 34,133 tonnes of octane in stock.

Padma Oil has jet fuel reserves sufficient for 20 days' demand. As flight operations have decreased, jet fuel demand is currently lower.

Energy and Mineral Resources Division sources said private-sector importers have informed the division that letters of credit opened in February are expected to bring in 194,000 tonnes of LPG throughout March.

However, due to the closure of the Strait of Hormuz, some LPG shipments may not arrive on time.

In response, the private sector has been advised to plan for LPG imports from alternative sources.

Business leaders have warned that unless existing public and private sector barriers to investment and exports are removed, Bangladesh will not be able to fully utilise the opportunities created by the recently signed Economic Partnership Agreement (EPA) with Japan. Otherwise, they said, the agreement risks remaining only on paper.

They made the remarks at a seminar titled "Export Potential Under Bangladesh-Japan EPA: Challenges and Way Forward" organised by the Export Promotion Bureau (EPB) yesterday (3 March).

Dr AKM Asaduzzaman Patwary, secretary general of the Dhaka Chamber of Commerce and Industry (DCCI), said a study by the Japan External Trade Organization (Jetro) found that Japanese investors feel there is scope for reinvestment in Bangladesh.

"Despite that, investment has not increased significantly. Last year, only $40 million in investment came," he said.

He added, "We do not want to be complacent about the EPA. We need to identify the roadblocks and take initiatives to resolve them. If these issues are not addressed, the potential of the EPA will remain only on paper."

Mohammad Hasan Arif, vice chairman of EPB, moderated the seminar, which was attended by business leaders and experts from both countries.

Other business representatives highlighted existing challenges to expanding trade with Japan and urged prompt solutions.

Speaking to The Business Standard after the event, Dr Patwary said, "NBR- and customs-related issues, policy inconsistency and bureaucratic complexities are major obstacles to increasing Japanese investment in Bangladesh."

Maintaining product quality in line with Japanese standards is also a key challenge for exporters, speakers noted.

Other speakers echoed the importance of meeting Japanese quality standards. They said Japan offers significant export potential, but without focusing on quality, that potential cannot be realised.

Bangladesh signed the EPA with Japan on 6 February, under which around 7,379 Bangladeshi products will enjoy duty-free access to the Japanese market, while more than 1,000 Japanese products will receive duty-free access to Bangladesh in phases.

Kanchan Miah, managing director of Arot Agro, said his company exports vegetables from Bangladesh to Japan. However, due to the suspension of the direct Dhaka-Narita flight, they are facing difficulties.

He said they used to export about one tonne of vegetables per flight. They have also received orders to export mangoes, and there is potential to export carrots. But with the direct flight suspended, shipping via alternative routes is increasing costs.

He urged the government to take measures to resume the direct flight.

Business leaders also identified language barriers, technological gaps and compliance requirements as major challenges in expanding exports to Japan.

Japan is a significant market for Bangladesh's ready-made garments (RMG). Asif Ashraf, managing director of Urmi Group, a leading RMG exporter to Japan, said, "In Japan's $23 billion apparel market, we are capturing only a very small share. While there is strong demand for man-made fibre garments, we remain stronger in cotton-based products."

He said exporters must have patience to succeed in the Japanese market. "Once trust is established, they will place orders here even if prices are higher."

Tareq Rafi Bhuiyan, president of the Japan-Bangladesh Chamber of Commerce and Industry, and Hajime Suzuki, executive officer of RX Japan Ltd, presented keynote speeches.

Hajime Suzuki, executive officer (Global Relations) of RX Japan, a major Japanese trade show and exhibition organiser, advised Bangladeshi exporters to adopt a three-year strategy to expand exports to Japan.

Global logistics and shipping giant Maersk has suspended all new cargo bookings between Bangladesh, along with three other South Asian countries, and select Gulf destinations, citing operational risks arising from the ongoing Iran crisis and wider instability in the Middle East.

"Effective immediately, we are suspending all new bookings between the Indian Subcontinent (India, Pakistan, Bangladesh and Sri Lanka) and the Upper Gulf markets of the UAE, Bahrain, Qatar, Iraq, Kuwait, and Saudi Arabia (Dammam and Jubail only)," the company said in an advisory on Monday (2 March).

The move comes as Iran said on Monday that the Strait of Hormuz is closed and that Iran will fire on any ship trying to pass, Iranian media reported.

"The strait [of Hormuz] is closed. If anyone tries to pass, the heroes of the Revolutionary Guards and the regular navy will set those ships ablaze," Ebrahim Jabari, a senior adviser to the Iranian Revolutionary Guards commander-in-chief, said in remarks carried by state media.

Maersk said it has also halted acceptance of reefer and dangerous or special cargo to and from key Gulf countries until further notice, following a fresh risk assessment.

However, it clarified that this suspension does not apply to other trade corridors.

Maersk said confirmed bookings made before the advisory will be reviewed on a case-by-case basis, while cargo already in transit remains under active management.

"Customers will be contacted directly if operational adjustments are required," it said.

Amid the US-Israeli war on Iran, several Gulf states have temporarily closed their airspace and airlines have cancelled or rerouted flights, tightening logistics capacity across sea-air corridors and potentially extending transit times.

Ahead of Eid-ul-Fitr, the government has released Tk2,500 crore under the Cash Incentive (CI) and Special Cash Incentive (SCI) schemes to meet the demand for foreign exchange in the export sector.

The funds were disbursed in two phases by the Ministry of Finance.

A senior ministry official told The Business Standard that exporters had requested the release of cash incentive funds, prompting the release of the third installment for the current fiscal year 2025-26.

On 19 February, Tk1,500 crore was released in the first phase, followed by another Tk1,000 crore yesterday.

Commercial banks will now claim the sector-wise cash incentive funds from the Bangladesh Bank, which will disburse the money according to the banks' requests.

Exporters will receive their due incentives through these commercial banks.

The government provides cash incentives for exports across 43 sectors, including domestic textiles, frozen shrimp and other fish, and leather products.

A 1% special cash incentive is also offered for ready-made garment (RMG) exports.

Incentive rates range from 0.30% to 10%, with the largest beneficiaries being the RMG and textile sectors.

Following the announcement, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) expressed gratitude to the government for the timely release of funds ahead of Eid.

In a press release dated 3 March, BGMEA Acting Secretary Major Saiful Islam stated that BGMEA President Mahmud Hasan Khan thanked the government's top leadership, the finance minister, the commerce minister, and the central bank governor.

The National Board of Revenue (NBR) has sought budget proposals from business organisations across the country as it begins preparations for the 2026-27 fiscal year budget.

In a notification issued yesterday, the revenue board said that work on the upcoming budget has already commenced.

In line with its practice in recent years, the tax authority aims to formulate a participatory, people-oriented, and equitable budget by incorporating suggestions from taxpayers at different levels, chambers of commerce, trade associations, professional bodies, research institutions, and members of the intelligentsia.

Business chambers and associations have been requested to submit their written proposals to the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) by March 15.

A soft copy of the proposals should also be sent to the NBR via email at nbrbudget2026@gmail.com.

The NBR said the initiative is intended to make revenue mobilisation more meaningful, analytical, and representative, adding that all interested stakeholders are encouraged to participate in the process.

Bangladesh Bank (BB) has relaxed rules for the renewal of continuous loans, allowing banks to renew such facilities before they turn non-performing, in a move aimed at supporting businesses amid prevailing economic challenges.

The central bank issued a circular today stating that banks must initiate the renewal process at least two months before a loan’s expiry.

If renewal cannot be completed within the stipulated time due to reasons beyond control, banks may still renew the facility before it is classified as a non-performing loan (NPL), it added.

However, lenders must document the reasons for any delay in renewal.

The central bank also instructed that any excess over the approved loan limit must be adjusted before renewal.

Banks are barred from separating the excess portion to create a new loan or transferring it to another account to avoid proper classification.

The policy will remain effective until December 31, 2027. A previous circular issued in June 2025 on the same matter has been revoked.

The directive was issued under Section 45 of the Bank Company Act, 1991, and takes immediate effect.

The Dhaka Stock Exchange (DSE), one of the country’s two premier bourses, suffered its steepest single-day fall in six years yesterday, as investor panic deepened over conflict in the Middle East following Iran’s warning of attacks on ships passing through the Strait of Hormuz, one of the world’s most critical maritime trade routes.

The DSEX, the benchmark index of the DSE, plummeted 209 points, or 3.77 percent, to 5,325 on the day. The last time the index fell harder in a single session was on March 9, 2020, when it plunged 279 points.

The DS30, the blue-chip index, dropped 85 points, or 4 percent, to 2,050. Turnover rose 13 percent to Tk 885 crore. Among traded issues, 31 advanced, 349 declined, and 11 remained unchanged.

The declining trend extended to the Chittagong Stock Exchange (CSE), where the CASPI, the port city bourse’s main index, dropped 414 points, or 2.6 percent, to 15,085. At the CSE, 45 stocks rose, 153 fell, and 16 remained unchanged.

“The market tumbled mainly due to panic centring on the Iran conflict,” said Kazi Monirul Islam, CEO of Shanta Asset Management.

He noted that investors had initially expected the war to be short-lived following the killing of Iran’s supreme leader, which helped the DSEX recover 72 points on Monday after shedding 139 points on the first trading day after the conflict began. Yesterday’s sharp reversal suggests that sentiment has shifted.

“Investors now realise the war will have a lasting impact on the economy. Oil and gas prices are already rising, and fears intensified further with the threat of closing the Hormuz Strait,” Islam said.

“This creates deep uncertainty among investors about the profitability of listed firms. The impact was clear on the stock market index,” he added.

The selloff was exacerbated by a sharp fall in British American Tobacco Bangladesh (BATBC), which announced its lowest dividend in nearly a decade for 2025 after its profits fell 67 percent during the year.

Islam noted that as one of the market’s largest-cap stocks, BATBC’s decline alone dragged the DSEX down by 22 points. The multinational tobacco company’s profit fell 67 percent in 2025, which contributed to a drop in its stock.

Robi Axiata, Brac Bank, Square Pharmaceuticals, Islami Bank, Beximco Pharmaceuticals, and Walton Hi-Tech Industries together contributed a further 51-point decline.

Islam also pointed to profit-booking as an additional pressure on the DSEX.

“Many investors had seen gains of 10 to 15 percent in their portfolios even though stocks remain undervalued. They are booking a profit even if they know the stocks are undervalued. This is common psychology, investors want to book profits,” he said.

Market analysts said the country’s economy is in a fragile state, making it especially vulnerable to the fallout from a prolonged conflict in the Middle East.

Bangladesh sourced over 50 percent of its LNG imports, approximately 3.6 million tonnes, from Qatar and the UAE in 2025, making its energy security acutely exposed to Middle Eastern geopolitics.

BRAC Bank has promoted Md Shaheen Iqbal, CFA, and Ahmed Rashid Joy to additional managing directors (AMDs), effective from 1 March 2026.

Md Shaheen Iqbal will serve as additional managing director and head of wholesale banking. He will oversee corporate, commercial and institutional banking, transaction banking, structured finance, remittance and probashi banking, and financial institutions.

Shaheen joined BRAC Bank in 2004 and has worked across treasury and financial management, including foreign exchange, money markets, capital markets, derivatives, asset-liability management and financial institution relationships.

He completed his BSc in mechanical engineering from Bangladesh Institute of Technology, Chattogram (now CUET), and an MBA from the Institute of Business Administration (IBA), University of Dhaka. He is a CFA charterholder and a former president of CFA Society Bangladesh.

Managing Director and CEO Tareq Refat Ullah Khan said, "Shaheen Iqbal has been a cornerstone of BRAC Bank for 21 years, demonstrating unwavering commitment, leadership and excellence across multiple business functions. His strategic vision, innovation in financial products and market understanding will strengthen our wholesale banking business. In this leadership position, I am sure he will contribute to making BRAC Bank the most esteemed and preferred corporate and transaction bank in the industry."

Ahmed Rashid Joy has been promoted to additional managing director and chief risk officer. He joined BRAC Bank in October 2019 as head of credit risk management and, the bank said, has played a key role in strengthening risk governance and asset quality.

Ahmed Rashid began his banking career as a management trainee at Eastern Bank and has also worked at the International Finance Corporation (IFC), Mutual Trust Bank and IDLC Finance. He completed a master's in bank management (MBM) from the Bangladesh Institute of Bank Management (BIBM). The bank said he has served on several regulatory committees.

Commenting on the promotion, Khan said, "Ahmed Rashid's leadership has significantly enhanced our risk management capabilities. He has played a pivotal role in strengthening the risk management framework and driving key transformation initiatives. His technical expertise, disciplined approach and commitment to global best practices have been critical in maintaining superior portfolio quality and reinforcing our strong credit standing."

Banglalink is participating in Mobile World Congress (MWC) Barcelona 2026, held from 2–5 March 2026 in Barcelona, Spain, to engage with global industry leaders and explore the next phase of AI-led digital transformation.

Banglalink is a VEON company. VEON is a Nasdaq-listed, UAE-headquartered digital operator serving customers across five markets, including Bangladesh.

Hosted by the GSMA, MWC Barcelona 2026 is being held under the umbrella theme "The IQ Era", focusing on how artificial intelligence is reshaping networks, digital platforms and new services.

Banglalink said its officials, alongside VEON representatives, are holding bilateral meetings with global technology partners and development institutions, including the World Bank and the International Finance Corporation, to explore collaboration on digital infrastructure, financial inclusion and AI-driven innovation.

At the event, VEON Group CEO Kaan Terzioğlu delivered a keynote titled "Transforming Tomorrow's Connected World", highlighting VEON's DO1440 strategy and the need to embed digital services into daily life alongside connectivity.

Johan Buse, chief executive officer of Banglalink, said the AI era is a pivotal moment for Bangladesh's digital journey, with telecom operators evolving beyond connectivity to expand economic participation, and digital and financial inclusion.

Banglalink said it has integrated AI and machine learning into network planning and optimisation, introduced AI-enabled customer support tools, and expanded digital financial and lifestyle platforms as part of its evolution into an integrated digital services provider.

Banglalink said it has invested more than $2.5 billion in Bangladesh over the past two decades, contributed over $4 billion to the national exchequer, supported about 10,000 direct and indirect jobs, and serves more than 38 million subscribers.

An extended conflict in the Middle East after the US and Israel launched strikes on Iran could trigger global stagflation -- a troublesome blend of high inflation and anaemic growth -- due to spiking oil and gas prices, economists warned.

WILL THERE BE AN OIL SHOCK?

The conflict has nearly halted traffic through the Strait of Hormuz, through which around 20 percent of global seaborne oil passes, with several ships attacked.

Global oil prices shot higher on Monday, with the Brent crude international reference oil contract up nearly nine percent at $79.30 per barrel at 1410 GMT.

It briefly surpassed $80 per barrel earlier in the day, and was up considerably from the $61 per barrel at the start of the year.

Economist Sylvain Bersinger said the war risks “creating a third oil shock after those in 1973 and 1979 and the 2022 gas shock”.

Europe’s benchmark gas price shot more than 50 percent higher on Monday.

He said the price of oil could rise to $110 per barrel, but added that was no longer exceptional as oil prices had risen over $140 in 2008 and were above $100 in the 2010s.

Adam Hetts at asset manager Janus Henderson said that while oil prices would certainly rise, the increase should remain “at reasonable levels”.

WHAT IMPACT ON GLOBAL TRADE?

The conflict could act as a shock to trade “at the worst possible moment”, said economists at ING bank.

The global trading system is already under stress from US President Donald Trump’s tariff offensive as well as the fragmentation of supply chains since Covid and the war in Ukraine.

Moreover the closure of the Gulf airspace is disrupting aviation between European and Asia, they noted.

For Ruben Nizard, head of political risk research at Coface, a trade credit insurance company, this crisis could also “throw another wrench into the works by driving up maritime freight costs” and pushing up inflation.

“At the global level, this would open the door to an economic scenario of stagflation,” he added, referring to a situation with high inflation and weak or non-existent growth.

WHAT IMPACT ON THE GLOBAL ECONOMY?

According to economists at Natixis bank, a prolonged disruption of traffic in the Strait of Hormuz “would have major implications for markets, but also for inflation dynamics and overall economic stability”.

They added that “China would be particularly affected by this war.”

Cyrille Poirier-Coutansais, director of the research department at the French Navy’s Centre for Strategic Studies, agreed that China is particularly dependent upon oil shipped through the Strait of Hormuz.

“The question is whether there will be enough fuel to keep the world’s factory running,” he told AFP.

For the economist Sylvain Bersinger the impact on Europe will likely be less than the 2022 gas shock, which would help France in particular to avoid a recession.

In a sign of declining investor confidence, the interest rate on European sovereign bonds climbed on Monday.

The yield on 10-year German government bonds, the benchmark in the eurozone, stood at 2.70 percent in afternoon trading, compared with 2.64 percent on Friday.

WHAT RISKS IN A LONG WAR?

The intensity and duration of the conflict will be key in determining its impact.

“In a prolonged conflict, the combination of higher energy costs, disrupted logistics, and a generalised confidence shock would constitute a meaningful drag on global trade volumes at precisely the moment the world economy was still digesting the inflationary and growth consequences of the tariff shock,” said economists at ING bank.

Coface’s Nizard said they estimated that “an increase of roughly 15 dollars in the price of Brent over a prolonged period could shave about 0.2 percentage points off global growth and add almost half a point to inflation.”

These are “not insignificant” effects in a context of “fairly fragile global economic growth”, he added.

The Bangladesh Bank (BB) has allowed banks to provide special term loans to export-oriented industries to help them pay workers’ wages for February this year.

In a circular today, the central bank said that global and domestic economic headwinds, coupled with declining exports, delays in opening letters of credit and liquidity stress, have disrupted production in many export-oriented industrial establishments.

As a result, some firms are facing difficulties in paying workers' salaries and allowances on time, it added.

To ensure uninterrupted production and sustain export capacity, banks have been instructed to extend term loans, outside existing working capital limits, to solvent units for disbursing February salaries.

The loan amount cannot exceed the average wage and allowance payments of the preceding three months of the respective firm.

Only industries that export at least 80 percent of their total production will be considered export-oriented. In addition, eligible applicants must have paid workers’ wages for the period from November 2025 to January 2026, the BB directive reads.

The status of being “export-oriented” and “operational” must be certified by the relevant trade bodies, such as the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association.

Banks will directly disburse the payments into workers’ bank accounts, including through mobile financial services.

The facility will carry market-based interest rates. The loans must be repaid within a maximum of one year, including a three-month grace period. Repayment can be made on a monthly or quarterly instalment basis.

The central bank also barred banks from charging any additional fees, commissions or penalties beyond the regular interest on the loans.

The directive has been issued under Section 45 of the Bank Company Act, 1991.

BGMEA last week appealed to the governor to provide a loan equivalent to two months’ wages on easy terms as short-term support to ensure payment of salaries, allowances and bonuses.

British American Tobacco Bangladesh has recommended a 30% cash dividend for 2025, sharply lower than the 300% cash dividend it distributed in 2024.

Following the disclosure, the company's share price fell by 8.94% to Tk242.30 today (3 March) at the Dhaka Stock Exchange.

The company also reported a loss of Tk136 crore in the October–December quarter of 2025, reflecting a sharp deterioration in earnings amid declining cigarette sales and higher operating costs.

In a statement, the company reported a 67% decline in earnings per share (EPS) for the year ended 31 December 2025, as profit came under significant pressure. The significant drop was mainly due to lower turnover and increased operating expenses. Costs rose as a result of inflationary pressures and higher levels of activity in certain parts of the business.

Net operating cash flow fell by 81% compared to the previous year. The decline was largely driven by lower profit and higher cash outflows following an increase in excise duty, although some of the impact was offset by other factors.

In July 2025, the company ceased operations at its Dhaka factory and relocated the plant, machinery, and cigarette manufacturing equipment to its Savar facility. The compulsory site closure, coupled with relocation and restructuring costs, resulted in a one-off negative impact of Tk715 crore on operating profit compared to the previous year.

According to the company's financial statements approved at a board meeting held yesterday (2 March), the multinational tobacco manufacturer posted a loss per share of Tk2.53 in the fourth quarter of 2025.

For the full year ended December 2025, earnings per share stood at Tk10.81, representing a 67% decline year-on-year.

The company has scheduled its annual general meeting for 30 April to seek shareholder approval for the audited financial statements and the proposed dividend. The record date has been fixed for 1 April.

In its price-sensitive disclosure, the company did not offer detailed explanations for the sharp drop in profit and dividend payout in 2025. However, earlier disclosures indicated that business performance came under strain following the closure of its Mohakhali factory on 1 July 2025.

Bangladesh's export earnings remained in negative territory for the seventh consecutive month, as February shipments fell sharply due to weak global demand and ongoing geopolitical uncertainty.

Exports in February fell sharply to $3.50 billion, down 20.81% from January and 12.03% year-on-year, according to data released by the Export Promotion Bureau (EPB) today (2 March).

Total exports in the first eight months of FY26 (July-February) declined 3.15% year-on-year to $31.9 billion.

Ready-made garments (RMG), which account for over 80% of the country's export earnings, dropped 3.73% year-on-year to $25.80 billion during the period.
February alone saw RMG earnings fall 22.1% month-on-month and 13.21% year-on-year, reflecting weaker order flows and shipment volatility. Within the sector, knitwear exports fell 4.56%, while woven garments declined 2.79%.

Experts blame falling US imports on President Trump's tariffs, while aggressive Chinese and Indian exports are undercutting prices in Europe. Weak demand in several countries adds to the strain.

Export analysts warn that the recent US-Israel strikes on Iran and rising geopolitical uncertainties could prolong the export slowdown.

However, exporters also cited multiple challenges behind the contraction.

Inamul Haque Khan Bablu, senior vice president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told The Business Standard, "Due to Trump's tariffs, US buyers have reduced clothing imports because of uncertainty. Meanwhile, China and India are selling products at lower prices in Europe and other markets, intensifying competition outside the US."

Bablu added that hopes of improvement after Bangladesh's elections have dimmed due to renewed geopolitical tensions, including joint strikes on Iran by the US and Israel.

Khondaker Golam Moazzem, research director of the Centre for Policy Dialogue (CPD), emphasised the need for long-term competitiveness. "Bangladesh must increase productivity, reduce interest rates, stabilise energy prices, and maintain competitive exchange rates to remain relevant in global trade," he said.

He also urged initiatives to boost exports in non-traditional markets but noted that current war-related uncertainties may continue to weigh on shipments.

Despite the overall slowdown, several non-garment sectors posted positive growth, signalling gradual export diversification.

According to EPB, Engineering products rose 23.42%, led by electrical products (25.91%) and bicycles (27.40%). Ores, slag and ash exports increased 45.40%, pharmaceuticals grew 6.32%, leather products excluding footwear rose 18.32%, and home textiles posted 2.67% growth. Exports of frozen and live fish edged up 3.62% year-on-year.

However, these gains were not large enough in value terms to offset the contraction in garments, leaving overall export growth in negative territory.