The Ministry of Commerce has convened a meeting with leading exporters and trade economists tomorrow to assess the impact of the United States' new 15% global tariff and coordinate a strategic response.

But officials said Dhaka will neither initiate immediate talks with Washington nor move forward with the ratification of the existing trade pact for the time being.

Commerce Secretary Mahbubur Rahman confirmed the decision to The Business Standard, adding that the government would first consult domestic stakeholders before deciding on any next steps.

"On Wednesday (25 February), we will sit with our key stakeholders – exporters and trade-related economists – to hear their views and suggestions. Beyond that, we have no plan at the moment to engage in discussions with the United States," he said.

The secretary noted that although Bangladesh had signed a trade agreement with the US following the announcement of reciprocal tariffs, the agreement has not yet come into effect.

"We will remain quiet for now. We will not take the initiative to engage in talks with the US. Until the US ratifies the agreement and sends a notification, there is no need for discussions about complying with it."
Commerce Secretary Mahbubur Rahman

"The agreement states that it will become effective once both countries ratify it and notify each other. Bangladesh will not ratify the agreement for now," he said.

Mahbubur said, "If the United States ratifies it and sends us a notification, then we will enter into discussions with them. At that point, we will be able to ask on what basis they ratified the agreement after the US Supreme Court scrapped the reciprocal tariff measure," he added.

The US Supreme Court recently declared the reciprocal tariff unlawful. However, under a different legal provision, Washington has since announced a 15% duty on goods from nearly all countries.

Mahbubur said Bangladesh's response would depend on how the US proceeds.

"Since we have signed the agreement, the United States will naturally want us to comply with it. We can then tell them that if a uniform 15% tariff is imposed on all countries, and Bangladesh is not given any additional benefit, why should we adhere to the agreement?" he said.

"Everything will depend on what kind of benefits they offer Bangladesh," he added.

The commerce secretary said Dhaka would adopt a wait-and-see approach. "We will remain quiet for now. We will not take the initiative to engage in talks with the United States. Until the US ratifies the agreement and sends a notification, there is no need for discussions about complying with it."

He added that if the 15% tariff is applied uniformly to all countries, Bangladesh may have limited room to respond. However, if there is scope for country-specific reductions, Dhaka would consider entering negotiations to seek a lower rate.

The Bangladesh Securities and Exchange Commission (BSEC) has rejected a 35% stock dividend proposal announced by Al-Haj Textile Mills Limited for the financial year that ended in June 2024.

On 14 January, the textile sector firm recommended a 5% cash and 35% stock dividend for its shareholders for FY24. The stock dividend component was subject to the approval by the BSEC.

The company's share price increased today (23 February) by 2% to Tk132.80 on the Dhaka Stock Exchange.

The company's audited financial statements show that the sharp rise in profit was largely driven by a one-off accounting gain following the settlement of a long-running legal dispute with Agrani Bank, rather than a genuine operational recovery.

According to the audited results for FY24, Al-Haj Textile recorded a net profit of Tk22.45 crore, compared to a loss in the previous year. Earnings per share rose to Tk10.07, a significant reversal from a loss per share of Tk0.78 in FY23.

The company's net asset value per share jumped by 119% to Tk18.52, reflecting the impact of the recognised income.

However, the financial statements also show that net operating cash flow per share remained negative at Tk2.58, indicating continued pressure on cash generation from core operations.

The sharp turnaround is particularly striking as the company had posted a net loss of Tk7.56 crore in the nine months to 31 March 2024. This indicates that bulk of the profit was recorded in the final quarter after changes in accounting treatment linked to a disputed fixed deposit receipt with Agrani Bank.

Recently, Alhaj Textile Mills has decided to invest an additional Tk7.80 crore in the Balancing, Modernisation, Rehabilitation and Expansion (BMRE) of its factory to upgrade machinery and enhance operational efficiency. The decision was taken at the company's latest board meeting, according to a disclosure issued last Thursday.

According to the disclosure, the fresh investment will be used to replace older equipment, introduce modern technology and strengthen production capacity at its manufacturing facility.

Company officials said the BMRE initiative is aimed at improving product quality, reducing wastage and optimising energy consumption, while boosting overall productivity. The move is also expected to help the mill respond more effectively to evolving market demand and buyer requirements.

Industry insiders noted that with competition intensifying in both domestic and export markets, textile manufacturers are increasingly focusing on modernisation and efficiency to sustain profitability. In that context, the additional investment is seen as a strategic step to ensure long-term operational sustainability.

The Dhaka stock market rebounded strongly on the back of fresh policy support from the central bank, with investors cheering the relaxation of down payment requirements for loan rescheduling amid ongoing stress in the banking sector.

The benchmark DSEX of the Dhaka Stock Exchange (DSE) jumped 85 points, or 1.55%, to close at 5,553, snapping its recent subdued trend.

The blue-chip DS30 index also rose 33 points to 2,137, reflecting broad-based gains as 347 issues advanced, 21 declined, and two remained unchanged.

Market capitalisation increased by Tk5,280 crore to Tk7.16 lakh crore, signalling renewed investor confidence, while turnover climbed 26% to Tk718 crore, indicating improved participation across sectors.

According to EBL Securities, the market momentum reverted to a positive trajectory following recent corrections, after election-driven optimism had cooled.

Buying in banking stocks primarily drove the rally, as investors viewed the central bank's latest move to ease loan rescheduling rules as a favourable step to manage rising non-performing loans in the sector.

The market opened on a strong footing, gaining nearly 80 points within the first half hour of trading, with predominant buying interest in large-cap stocks setting the tone for the session. Confidence returned gradually, prompting investors to accumulate shares across sectors, reflecting perceived strength in underlying market momentum.

Banking stocks led the turnover chart, with City Bank and BRAC Bank among the most actively traded.

Other top turnover contributors included Summit Alliance Port Limited, Khan Brothers PP Woven Bag Industries, and Olympic Industries.

Market insiders said the rally was further supported by a recent 18% cut in furnace oil prices by the Bangladesh Energy Regulatory Commission, expected to reduce electricity generation and factory overhead costs, particularly benefiting manufacturing companies.

Investors were also encouraged by circulating speculation about potential changes in top positions at the stock market regulator, adding to market optimism.

Among the day's top gainers were RSRM Steel, Midas Finance, and LR Global Mutual Fund One, each rising 10%, followed by Alif Manufacturing and Energypac Power with notable advances.

On the losing side, Meghna Cement fell 8.3%, while Bata Shoe, Zeal Bangla Sugar, Standard Bank, and ICB AMCL First Agrani Bank Mutual Fund posted modest declines.

Delivering structural reforms, improving external liquidity and lifting revenue collection will be crucial to restoring macroeconomic stability in Bangladesh, said Fitch Ratings in a report released on Sunday.

The global rating agency said the general election held on February 12 has eased near-term political and policy uncertainty, creating room for progress on stabilisation.

The Bangladesh Nationalist Party (BNP)-led alliance secured a parliamentary supermajority, along with a majority “yes” vote in a referendum that could pave the way for constitutional reforms.

However, the road ahead will not be straightforward, it warned.

Fitch said longstanding credit constraints such as weak governance, fragilities in the banking sector and a thin external liquidity buffer mean the new government’s ability to carry through its macroeconomic and fiscal reform agenda will determine the rating impact.

Fitch Ratings, one of the big three global credit rating agencies alongside S&P Global and Moody’s, said that execution will be decisive.

The referendum result could open the door to institutional reforms, including a shift from a unicameral to a bicameral system, stronger judicial independence and term limits for the prime minister.

“However, implementation could be complex and time-consuming, keeping execution risk elevated.”

Fitch underlined the importance of staying the course under the $5.5 billion programme with the International Monetary Fund (IMF). Stronger tax mobilisation and prudent management of foreign exchange reserves will also be vital to underpin stability and support durable growth.

“The reform agenda appears consistent with the macro-stabilisation agenda under the IMF programme,” Fitch said.

It added that “ongoing reform implementation and durability of such reforms beyond the IMF programme will be a key condition for facilitating macroeconomic stability and growth.”

At the same time, external buffers remain a near-term watchpoint. “External liquidity remains another near-term indicator even as reserves improve,” Fitch noted, adding that policymakers must maintain stabilisation measures to “keep external financing risks in check.”

On public finances, the agency described the structurally low revenue intake as a core weakness. The BNP manifesto sets a target of raising the tax-to-GDP ratio to 10 percent through administrative reform, fewer exemptions and a broader tax base.

“This matters for credit quality,” the agency said, signalling that stronger revenue performance will be central to easing fiscal strain and entrenching stability.

Fitch projects general government revenue to GDP at 8.6 percent by FY27, up from 7.8 percent in FY25.

Policy signals in the BNP manifesto suggest the new government is likely to continue the economic and fiscal reforms initiated under the caretaker government. At the same time, plans for higher social spending could stretch public finances if revenue measures fall short, testing the authorities’ ability to balance growth ambitions and electoral pledges with fiscal discipline.

The manifesto also outlines a pro-private sector agenda. It promises simpler licensing rules, incentives for export-oriented industries and a push to lift foreign direct investment to 2.5 percent of GDP from an estimated 0.4 percent of GDP in FY25.

Efforts to strengthen governance in banks and tackle non-performing loans (NPLs) could, if delivered, ease a major constraint on the sovereign credit profile.

With a two-thirds majority in parliament, the BNP should have the numbers to press ahead with its policy plans. The election outcome also lowers the risk of a prolonged political vacuum that could have hampered economic decision-making.

Still, political risk has not disappeared. Bangladesh, rated B plus with a Stable outlook, has a history of polarisation and pre-election unrest. That leaves scope for renewed tension if promises prove hard to fulfil or if performance falls short of expectations.

“The military may also continue to play a role in politics,” said the agency.

Treasury bill yields have declined again within a month as rising liquidity in the banking sector reduces pressure on government borrowing.

At the latest auction held today (22 February), yields on treasury bills dropped by 40 to 59 basis points compared with January, with rates falling across all three tenors.

The interest rates on 91-day treasury bills stood at 10.02%, down from 10.42% on 5 January. The 182-day bills were auctioned at 10.11%, compared with 10.54% in January, while the 364-day bills fell to 10.07% from 10.66%.

Treasury bills are short-term government securities sold for periods ranging from 91 to 364 days.

Md Ezazul Islam, director general of the Bangladesh Institute of Bank Management, attributed the decline primarily to two factors.

Why T-bill interest rate crosses 10% again?

He said the Bangladesh Bank has been purchasing foreign currency reserves from commercial banks through auctions, thereby injecting liquidity into the banking system.

"Because the central bank is buying dollars from commercial banks, money is flowing back to the banks, leaving them with ample liquidity," he said.

According to Bangladesh Bank data, the central bank has purchased $5.39 billion from commercial banks through auctions in the current fiscal year.

Ezazul added that slower growth in private sector credit was the second key reason behind the fall in yields, as banks now have surplus funds. Latest data from the Bangladesh Bank show that private sector credit growth stood at 6.10% in December.

A deputy managing director of a private bank said the "massive liquidity" in the banking sector has driven down treasury bill yields, noting that dollar purchases by the central bank have increased liquidity through banking channels.

He also pointed out that deposits in the banking sector have increased compared with earlier periods, further improving liquidity conditions.

Treasury bill yields near 10% amid higher govt borrowing

Another senior official of a private bank said government borrowing has declined as implementation of the Annual Development Programme (ADP) remains slow.

In the first seven months (July-January) of the current 2025-26 fiscal year, ADP expenditure totalled Tk50,556.29 crore – the lowest in nine fiscal years. Spending has even fallen significantly compared with the period of political instability and government transition last year.

In September 2025, treasury bill yields had dipped below 10%. At that time, the interest rate on 10-year treasury bonds fell by 246 basis points within three months, marking the first time in two years that the rate dropped below the 10% threshold.

Bangladesh Bank has purchased $5.38 billion from the foreign exchange market so far in fiscal year 2025-26, reflecting continued efforts to manage liquidity and stabilise the exchange rate.

The central bank bought $123 million from eight commercial banks at a cut-off rate of Tk 122.30 per US dollar yesterday.

With the latest intervention, total dollar purchases in February reached $1.448 billion.

The central bank has been buying the US dollar in recent months amid improved inflows and easing pressure on the foreign exchange market.

Between FY21 and FY25, Bangladesh Bank sold more than $25 billion from its foreign exchange reserves to meet import payments for fuel, fertiliser and food.

However, it has resumed purchasing dollars since the beginning of the current fiscal year as supply increased on the back of higher export earnings and remittance inflows.

Since July, the taka has appreciated against the US dollar.

The country’s foreign exchange reserves have continued to rise due to the central bank’s steady dollar purchases.

Reserves stood at $30.06 billion on February 19 this year, as per the International Monetary Fund (IMF) calculation, up from $20.79 billion on the same date a year ago, according to Bangladesh Bank data.

The Bangladesh Energy Regulatory Commission (BERC) has cut furnace oil prices for public and private power producers and industries by 18 percent, from Tk 86 to Tk 70.10 per litre.

The commission set the rate for the first time yesterday, following a public hearing last month. Previously, the Bangladesh Petroleum Corporation (BPC) used to determine the price on its own.

BPC sells around 8-9 lakh tonnes of furnace oil annually, mainly to public power generation companies, as well as to some private power producers and industries.

At a hearing on January 29, the Bangladesh Power Development Board (BPDB) alleged that BPC had charged up to Tk 644 crore more than the actual supply cost over the past one and a half years.

BPDB officials said BPC maintained a fixed price of Tk 86 per litre during the period, although its procurement cost ranged between Tk 57 and Tk 83 per litre in different months.

The BPDB proposed setting the price at Tk 50.83 per litre.

In contrast, BPC proposed cutting the price by Tk 1 to fix it at Tk 85 per litre.

According to the BERC decision, the margin and transmission charges for oil companies Padma, Meghna, Jamuna and Standard Asiatic Oil Company Limited are Tk 0.71 and Tk 1.20, respectively.

The new rate comes into effect from 12am today.

The Bangladesh Bank (BB) has allowed banks to facilitate the business recovery of struggling borrowers by easing down payment requirements and extending implementation deadlines under its policy support schemes.

The BB issued a circular in this regard yesterday, saying the decision was taken following applications from various banks and stakeholders seeking flexibility in implementing earlier policy instructions.

Senior bankers welcomed the decision, saying it could help distressed industries regain momentum. But they also warned that some wilful defaulters might try to exploit the softer terms.

Under the revised rules, eligible borrowers may now pay their required down payment in instalments. Half of the stipulated amount must be paid at the time of approval, with the remaining 50 percent due within six months of the effective date.

The BB also said that if policy support has already been approved but could not be implemented due to valid reasons, banks may extend the previously fixed deadline by up to three months. In addition, regarding interest-related issues, banks have been instructed to make decisions in line with existing policies, based on banker-customer relationships and applicable guidelines.

In January last year, the central bank formed a five-member committee, led by the executive director of the Department of Offsite Supervision, to provide necessary policy support for restructuring or rescheduling corporate borrowers who defaulted due to factors beyond their control.

The committee’s process of holding tripartite meetings with borrowing institutions or groups and financing institutions concluded on September 30 last year.

On September 16, the BB issued a unified special loan rescheduling policy to maintain economic growth and assist borrowers who had defaulted due to circumstances beyond their control.

About 300 companies, including top defaulter conglomerates, applied to the BB for loan rescheduling or restructuring facilities totalling around Tk 2 lakh crore in the first nine months of last year.

Syed Mahbubur Rahman, managing director and CEO of Mutual Trust Bank Ltd, said the flexibility by the BB may help sick industries recover and return to business in this tough time. The economy is going through stress, he said.

However, bankers cautioned that wilful defaulters may take advantage of the policy support extended to enable sick and affected firms to return to business. As the provision has become general, there is a risk that wilful defaulters and those who did not qualify earlier will receive the support.

Anis A Khan, a former chairman of the Association of Bankers, Bangladesh (ABB), said this would give breathing space to affected businesses to restore their production and services to normal levels after the formation of an elected government.

“It is imperative that businesses take this opportunity to rebuild their frayed infrastructure,” he said.

Bangladesh’s plea for deferment of graduation from the group of Least Developed Countries (LDC) category is likely to be discussed at the five-day meeting of the UN Committee for Development Policy (CDP) beginning in New York today.

Before leaving the country to attend the meeting, Debapriya Bhattacharya, head of the Enhanced Monitoring Mechanism (EMM), a body of the UN CDP, said they will set up an evaluation process for Bangladesh’s plea for LDC deferment for three more years.

Debapriya, who is also a distinguished fellow of the Centre for Policy Dialogue (CPD), said the request will be assessed based on recent socio-economic data, cross-country experiences and progress of the implementation of the Smooth Transition Strategy (STS), the guidebook of the LDC graduation.

UN CDP members will also widely discuss the country statements of graduating and recently graduated countries. Bangladesh submitted a country statement to the UN CDP describing the country’s economic situation in November last year.

Bangladesh is scheduled to graduate from LDC to a developing nation on November 24 this year, as the country has passed all three required criteria for two consecutive assessments, and the third assessment is ongoing.

However, the newly formed government sent a letter to the UN CDP on Wednesday requesting a deferment of the country’s graduation for three more years, as local businessmen have urged for more time to take extensive preparations for a smooth graduation.

Currently, Bangladesh enjoys zero-duty access for 73 percent of its exports as part of LDC provisions. After LDC graduation, this preferential market access will be lost, and Bangladesh may lose 14 percent of its exports or $8.0 billion worth of business in a year, different studies have suggested.

Nepal and Lao PDR are also scheduled to graduate along with Bangladesh this year, but they have not applied for deferment.

Leo ICT Cables PLC has withdrawn its application to raise Tk7 crore from the SME platform of the stock market, stepping back amid political and economic uncertainties ahead of the national election.

According to sources at the Bangladesh Securities and Exchange Commission, the company pulled out its proposal after reassessing market conditions. A senior commission official, speaking on condition of anonymity, said the decision was taken after considering the prevailing political and economic situation.

In October last year, the company had applied to issue seven million shares to raise Tk7 crore from the SME platform. The issue manager for the proposal was AAA Finance & Investment Limited.

The official also said since the current commission has not approved any initial public offerings (IPOs) or Qualified Investor Offers (QIOs) so far, the company likely reassessed the overall situation and decided to step back for now.

The official added that only one SME application is currently pending — that of Brain Station 23 PLC.

Leo ICT Cables had planned to raise funds from the market to expand its production capacity and strengthen its capital base.

The company's paid-up capital stands at Tk32.58 crore. For the year ended 30 June 2025, it reported revenue of Tk37 crore, up from Tk30 crore in the previous year. During the same period, profit after tax rose to Tk5 crore, compared to Tk3.09 crore a year earlier. Earnings per share (EPS) stood at Tk1.67.

According to information available on its website, Leo ICT Cables is a technology-driven manufacturing company in Bangladesh. It produces fiber optic cables, high-quality lithium-ion batteries, and Optical Networking Units (ONU). Its factory is located at Kaliakoir Hi-Tech Park in Gazipur under the Bangladesh Hi-Tech Park Authority.

The company says its fibre optic cables are engineered for high performance, reliability, and durability, forming a critical backbone of Bangladesh's digital and internet infrastructure. It also positions its lithium-ion batteries as efficient, long-lasting, and safe energy solutions, built to meet international standards and support growing power demands.

With modern machinery sourced from global suppliers and a skilled team of engineers and technicians, the company maintains strict quality control and timely delivery for both domestic and international markets. Through its products, Leo ICT Cables aims to contribute to a more connected, sustainable, and technology-driven Bangladesh.

The Dhaka stock market ended the week on a positive note, with National Bank emerging as the top gainer, while Islami Bank Bangladesh PLC stood as the worst-performing stock.

National Bank registered a strong 29.27% weekly return, closing at Tk5.30, driven by notable investor interest in banking stocks.

Bangladesh Industrial Finance Company (BIFC) followed with a 28.57% gain to settle at Tk3.60. S Alam Cold Rolled Steels Limited continued its recent rally, advancing 27.50% to Tk15.30 despite persistent financial concerns.

Other significant gainers included Fareast Finance and Premier Leasing, both rising 27.27% to Tk1.40 each. Prime Finance climbed 22.73% to Tk2.70, while Daffodil Computer gained 22% to close at Tk56.

Infographic: TBS
Infographic: TBS

Meanwhile, Familytex and Tung Hai Knitting each posted 20% gains, ending the week at Tk1.80 and Tk2.40, respectively. Shurwid Industries advanced 19.61% to Tk6.10.

On the losing side, Islami Bank Bangladesh PLC declined 12.28% to close at Tk45.70, topping the losers' chart. ICB Islamic Bank fell 10.71% to Tk2.50, while Midas Finance shed 9.38% to Tk6.40.

Al-Arafah Islami Bank lost 9.09% to Tk16, and Union Capital dropped 8.89% to Tk4.10. Crystal Insurance retreated 8.53% to Tk77.20, while Asiatic Laboratories Limited fell 7.89% to Tk63. Phoenix Finance also declined 7.50% to Tk3.70.

The benchmark DSEX index extended its upward trend for the fifth consecutive week, supported by strong post-election optimism at the start of trading.

Following the election holidays, trading resumed with broad-based buying pressure that pushed the index past the 5,600-mark for the first time in nearly six months.

However, EBL Securities, in its weekly market review, noted that the initial enthusiasm moderated in later sessions as investors engaged in profit-booking and adopted a cautious stance, closely watching policy signals and regulatory developments under the newly elected government.

By the end of the week, DSEX gained 66 points, or 1.2%, to settle at 5,466. Market participation remained strong, with average daily turnover rising to Tk1,050 crore.

Sector-wise, the banking sector dominated trading activity, accounting for 20.7% of total turnover, followed by pharmaceuticals at 16.3% and textiles at 10.2%.

Most sectors posted positive returns during the week. The paper sector led gains with a 5.3% increase, while IT and ceramics rose 3.3% and 3.2% respectively. In contrast, the jute sector emerged as the worst performer, declining 3%.

The Trading Corporation of Bangladesh (TCB) incurred a deficit of around Tk1,412 crore in fiscal year 2024-25 from subsidised sales of sugar, soybean oil and lentils under its family card and open truck programmes.

The commerce ministry has written to the finance ministry seeking release of funds to cover the shortfall.

In a letter today (22 February), Commerce Secretary Mahbubur Rahman said the import and local procurement costs and sale prices of TCB products for FY25 were properly audited. According to the audit report, the subsidy claimed by TCB is justified.

To support low-income groups, the government supplies essential commodities once a month at subsidised prices through TCB family cards. Cardholders receive two litres of soybean oil, two kilograms of lentils, one kilogram of sugar and five kilograms of rice. Additional items are sometimes included.

According to TCB data, soybean oil is sold at Tk100 per litre, sugar at Tk70 per kilogram and lentils at Tk60 per kilogram. However, procurement costs, storage expenses and dealer commissions result in total costs exceeding the selling price.

TCB currently has more than 4.5 million family cards. In special situations, products are also sold through open trucks, although prices in truck sales are slightly higher.

A senior TCB official said the total annual subsidy, including Ramadan items, rice and onions, amounts to around Tk3,500 crore. However, soybean oil, sugar and lentils are the main items under the family card scheme, and their subsidy is calculated separately.

He warned that without timely release of subsidy funds, it would not be possible to procure these essential items on schedule.

US investors are pulling money out of their own stock market at the fastest pace in at least 16 years as Big Tech returns fade and better-performing overseas markets look more attractive.

In the last six months, US-domiciled investors have pulled some $75 billion from US equity products, with $52 billion flowing out since the start of 2026 alone, the most in the first eight weeks of the year since at least 2010, according to LSEG/Lipper data.

The shift comes despite a weakening of the dollar against other currencies, which makes buying overseas assets more expensive for US investors. It's a compelling sign that the diversification away from US assets by some international investors in the past year is gaining traction among US investors.

Since the global financial crisis ended in 2009, the "buy America" trade has rewarded investors at home and abroad thanks to a strong economy and earnings growth and dominance in the tech sector leading to outsized gains in US stocks.

More recently, the AI boom pushed the S&P 500 index to record highs last year, a strong buffer from US President Donald Trump's unpredictable approach to trade policy and diplomacy, as well as his attempts to undermine Federal Reserve independence.

Looking further afield

But as concerns have grown about the possible risks from AI, as well as the costs involved, the lure of Wall Street stocks has ebbed. The surge in value in the US megacap tech stocks that have led gains until now are making investors pickier and many are spotting more attractive opportunities elsewhere.

Bank of America's 20 February fund manager survey showed investors switched from US equities to emerging market equities at the fastest rate in five years.

"I've had lots of conversations with our wealth business in the US this year," said UBS's head of European equity strategy and global derivatives strategy Gerry Fowler.

"They're all talking about investing more offshore because at the end of the year, they looked at the performance of foreign markets in dollars and they're like, wow, I'm missing out."

US investors have poured some $26 billion into emerging-market equities so far this year, with South Korea the largest single country destination, with an inflow of $2.8 billion, followed by Brazil, with $1.2 billion, LSEG/Lipper data shows.

One of the clear results of Trump's policies has been the 10% decline in the dollar against a basket of currencies since last January. While that is a disadvantage for US investors hunting for opportunities abroad, dividends in dollar terms from better performing overseas markets will also be plumped up.

In the last 12 months, the S&P 500 has risen around 14%. In dollar terms, Tokyo's Nikkei is up 43%, Europe's STOXX 600 has surged 26%, Shanghai's CSI 300 has returned 23% and Seoul's KOSPI has doubled in value.

Investors are also re-evaluating the seemingly unstoppable rally in the shares of artificial intelligence powerhouses like Nvidia, Meta and Microsoft and the risks posed by sky-high valuations. They are seeking 'value' in traditional industrial companies and defensive stocks which can feature heavily in some overseas equity markets such as those in Germany, the UK, Switzerland or Japan.

Value and valuation

Laura Cooper, global investment strategist at Nuveen, said the rotation on Wall Street away from tech and other so-called growth stocks into value stocks is playing out on a global level.

"Increasingly we are seeing US investors look at the global landscape from a valuation perspective," she said, flagging the cyclical growth upswing predominantly in Europe and Japan.

European banking stocks, one example of cyclical stocks that typically benefit when economic growth picks up, surged 67% last year and are up a further 4% so far in 2026.

"When you overlay the valuation story with the growth story, we are seeing that rotation for US investors as well," Cooper added.

US stocks are still far more expensive than those elsewhere. The S&P 500 trades at roughly 21.8 times the expected earnings of its components, while stocks in Europe trade at roughly 15 times forward earnings and those in Japan and China trade at 17 and 13.5 times respectively.

Kevin Thozet, portfolio adviser at Carmignac, said his team have observed that flows of US capital moving into Europe have accelerated since around mid-2025.

LSEG/Lipper data shows that since Trump's inauguration in January last year, US-domiciled investors have poured nearly $7 billion into European equity products, compared with an outflow of roughly $17 billion during the four years of Trump's first term from 2017 to 2021.

"If I'm taking a very long-term view, it's, maybe, this idea of a great global rotation," Thozet said.

The National Board of Revenue (NBR) has started budget-related work for the fiscal year 2026-27 and has sought proposals from business bodies and other relevant organisations.

According to the NBR, letters have already been sent on 18 February from the budget-related departments asking them to submit their proposals and recommendations on the budget to the NBR by 15 March.

In a letter to the business bodies, signed by Barrister Badruzzaman Munshi, second secretary of the NBR's VAT wing, the agency said, "You are requested to send your organisation's opinions with the aim of rationalising the tax-to-GDP ratio, facilitating ease of doing business, and resolving procedural complexities."

Sources at the NBR said pre-budget discussions with business representatives and other stakeholders may begin by the last week of this month in preparation for the next budget. To this end, the NBR has also formed a committee, appointing a first secretary of NBR as the chief budget coordinator, sources said.

This will be the first budget for the new government led by the BNP. Although budgets during the previous two BNP governments were prepared under the leadership of late finance minister M Saifur Rahman, this time the budget will be prepared under the leadership of Finance Minister Amir Khasru Mahmud Chowdhury.

He has already provided preliminary directions during a meeting held last Saturday with officials from the NBR and other relevant departments regarding the budget, according to officials.

Dhaka Stocks has lost momentum after an initial post-election rally, as institutional investors adopted a cautious stance amid growing expectations of a leadership change at the capital market regulator – a long-standing demand of retail investors.

The newly formed government has already begun searching for a new Bangladesh Securities and Exchange Commission (BSEC) chairman, as the existing commission, formed during the interim administration and headed by Khondoker Rashed Maqsood, failed to restore investor confidence.

The regulator is also likely to undergo restructuring, according to officials familiar with discussions at the finance ministry, as policymakers seek broader structural reforms in a market that has underperformed relative to the country's economic growth, frustrating both local and foreign investors.

Finance ministry sources said several private-sector professionals, along with a professor from the University of Dhaka, have shown interest in leading the commission. However, capital market stakeholders said they favour market-oriented leadership from the private sector due to bitter past experience.

The benchmark DSEX index climbed nearly 200 points to a five-month high on 15 February – the first trading session after the BNP's landslide victory in the 13th national election – reflecting initial investor optimism over the new government.

The upward trend, however, proved short-lived. The market turned negative from the very next session amid uncertainty over whether the existing commission would remain in place.

Finance Minister Amir Khosru Mahmud Chowdhury also hinted at restructuring the regulator in a recent comment, saying the current upward trend may reflect expectations of a democratic government, but stressing that only sustainable, structural reforms can ensure long-term stability.

Speaking to journalists at his residence in Mehedibag, Chattogram, on Friday – during his first visit to the port city after taking the oath as a minister in the new government – Khosru said temporary gains driven by sentiment would not bring fundamental change to the capital market.

The minister said the government planned comprehensive reforms, including amendments to laws and regulatory frameworks, while strengthening the role of the BSEC. He stressed the need to improve regulatory effectiveness, enhance transparency and adopt a zero-tolerance stance against irregularities.

Khosru also said efforts would be made to bring fundamentally strong and profitable companies to the stock market and attract both domestic and foreign investment funds to improve liquidity and rebuild investor confidence.

Investors seek market-friendly leadership

A senior banker at a private commercial bank told The Business Standard that the sharp rise on the first trading day after the election reflected investor confidence, particularly as shares linked to BNP-aligned business groups recorded notable gains.

Wishing not to be named, the banker said investors are expecting a restructuring of the commission, as the current chairman is seen as not market-friendly and has been unpopular from the outset due to creating distance from stakeholders.

"The government should appoint someone market-oriented to lead the regulatory body, either from market participants or from academia, like a finance professor," the official said.

Former banker Khondoker Rashed Maqsood assumed office as BSEC chairman following the regime change on 5 August 2024. During his roughly one-and-a-half-year tenure, he faced repeated protests from investors who accused the regulator of failing to revive market performance.

Stakeholders said trading activity weakened as key market players distanced themselves from the regulator, resulting in persistently low turnover. Moreover, no new initial public offerings (IPOs) entered the market under his leadership, further straining merchant banks.

Maqsood's commission also imposed what many described as unrealistic fines totalling nearly Tk1,000 crore on various companies and individuals over past corruption and market manipulation, creating negative sentiment among investors.

Longstanding governance concerns

While Asian frontier markets have grown rapidly, Bangladesh has lagged behind over the past 15 years under the leadership of former BSEC chairmen M Khairul Hossain and Shibli Rubayat Ul Islam, who critics say failed to establish proper governance in the market.

Both were finance professors at Dhaka University and faced allegations of corruption and collusion in market manipulation with certain stakeholders.

Shibli Rubayat, who resigned in August last year following the regime change, was arrested in February in a corruption case filed by the Anti-Corruption Commission (ACC).

He was also permanently barred by the BSEC from all capital market activities over his involvement in a share price manipulation scheme linked to Padma Printers and Colour.

Khairul Hossain, who led the regulator from 2011 to early 2020, was criticised for approving numerous financially weak companies for IPOs, often at inflated prices, which analysts say eroded investor confidence despite strong macroeconomic growth at the time.

His successor, Shibli, who took charge in 2020, was accused of shifting focus away from strengthening the primary market and instead fostering alleged collusive ties with certain market players and insider traders, prioritising short-term gains in the secondary market over long-term stability.

Following what stakeholders describe as unsuccessful leadership by academic appointees, market participants are urging the government to choose a chairman with both technical market knowledge and public policy understanding.

A merchant banker, speaking on condition of anonymity, said investor distrust in the existing commission was evident in market performance during the interim government period.

He added that while university professors may have theoretical expertise, they often lack the practical experience of private sector players. He suggested the new commission should include a mix of academics and private sector professionals to help restore investor confidence.

The benchmark index of the Dhaka Stock Exchange rebounded slightly today (22 February), ending a four-session losing streak that began after the national election.

The DSEX, the bourse's main index, inched up by 2 points to close at 5,468. The modest gain came after sustained selling pressure in the previous four sessions, during which the index had fallen sharply amid post-election uncertainty and cautious investor sentiment.

The blue-chip DS30 index, which tracks 30 leading companies, performed relatively better, rising 6 points to settle at 2,104. The increase indicates selective buying interest in large-cap stocks, particularly those with strong fundamentals. In contrast, the Shariah-based DSES index slipped slightly by 0.30 points to close at 1,095, reflecting mixed performance among Shariah-compliant securities.

Market analysts attributed the modest recovery in the DSEX to bargain hunting by investors after consecutive declines. However, overall market movement remained subdued, signaling ongoing caution. Investors are carefully monitoring political developments and economic signals before taking significant positions.

Turnover on the Dhaka Stock Exchange rose by 1.43% to Tk568 crore, up from Tk560 crore in the previous session. Despite the slight rebound, both turnover and participation remained moderate, indicating that investor confidence has yet to fully recover.

Of the 388 issues traded during the session, 123 advanced, 194 declined, and 71 remained unchanged, showing a continued dominance of losing stocks. Analysts noted that the cautious sentiment reflects investor concerns over the post-election political and economic landscape.

Many investors preferred to remain on the sidelines, waiting for clearer signals regarding policy direction and the formation of a new securities commission. Uncertainty over regulatory leadership and upcoming reforms has also weighed on market sentiment.

Institutional investors appeared particularly hesitant to take fresh positions without greater clarity on policy continuity and market stabilization measures. Over the past year, prolonged political uncertainty and a series of regulatory decisions that failed to restore investor confidence have contributed to a sustained market downturn.

Retail investors exited the market in significant numbers, while institutional and high-net-worth investors largely remained inactive, causing the share prices of several fundamentally strong companies to decline.

Large-cap sectors displayed mixed performance today. The banking sector led the gains, rising 0.91%, followed by non-bank financial institutions (NBFIs) with a 0.59% increase. The Food & Allied sector gained 0.15%, and Telecommunication edged up 0.08%.

In contrast, Fuel and Power fell 0.27%, Engineering declined 0.32%, and Pharmaceuticals dropped 0.73%. Block trades contributed 2.9% of the overall market turnover, highlighting selective large-volume transactions amid cautious trading.

Overall, Sunday's slight recovery offers limited relief, and the market remains sensitive to political developments, regulatory clarity, and macroeconomic updates. Investors are likely to continue taking a cautious approach in the coming sessions until more stable conditions emerge.

The Chittagong Stock Exchange (CSE) also closed lower, as the CSCX index down 16 points to 9,413, while the CASPI index shed 47 points to close at 15,302, reflecting negative sentiment across both bourses.

Tianford Bangladesh Textile Co Ltd, a China (Hong Kong)-based firm, is set to establish a readymade garment (RMG) manufacturing unit inside Nilphamari’s Uttara Export Processing Zone (EPZ) with an investment of $19.59 million.

The company signed a land lease agreement with the Bangladesh Export Processing Zones Authority (Bepza) yesterday at the Bepza Complex in Dhaka, according to a press release.

The project is expected to create employment opportunities for 3,254 Bangladeshi nationals.

On 24,000 square metres of land, the company will manufacture 7 million pieces of woven and knit garments annually, including bottoms, shirts, jeans, jackets, and sweaters.

The products will be exported to major global markets, including the USA, Canada, Japan, China, Australia, Brazil, the UK, and the EU.

The company will manufacture 7 million pieces of woven and knit garments annually, including bottoms, shirts, jeans, jackets, and sweaters
Md Tanvir Hossain, executive director for investment promotion of Bepza, and Ge Zhenyu, nominee director of Tianford Bangladesh Textile, signed the agreement on behalf of their respective organisations.

Bepza Executive Chairman Major General Mohammad Moazzem Hossain, who witnessed the signing, said the new government has assumed office with a strong focus on promoting investment.

He reaffirmed Bepza’s commitment to providing modern, investor-oriented services and encouraged the firm to source quality raw materials locally to strengthen domestic industries.

Ge Zhenyu expressed confidence in Bangladesh as an attractive destination for global investors. He informed that factory construction will commence in April this year, with exports expected to begin next year.

From Bepza, Md Imtiaz Hossain, member (engineering); ANM Foyzul Haque, member (finance); Md Tanvir Hossain, executive director (investment promotion); and Mohammad Anamul Haque, project director, were also present at the signing ceremony.

The dollar declined in volatile trading on Friday and was poised to snap a four-session streak of gains after the US Supreme Court struck down President Donald Trump’s sweeping tariffs based on a national emergency law.

The justices, in a 6-3 ruling authored by conservative Chief Justice John Roberts, upheld a lower court’s decision that the Republican president’s use of this 1977 law exceeded his authority.

The dollar was initially higher on the day after US economic data showed a higher-than-anticipated inflation reading while economic growth fell well short of expectations.

The Commerce Department said gross domestic product increased at a 1.4 percent annualized rate last quarter, much lower than the 3 percent growth pace estimate of economists polled by Reuters. Analysts noted, however, that the number was negatively impacted by the government shutdown.

“The majority of this week has been dollar positive, except for right now, and why I’d say the ‘sell America’ trade got a little ahead of itself,” said Erik Bregar, director of FX and precious metals risk management at Silver Gold Bull in Toronto.

“We have to see how Trump responds, how (Treasury Secretary Scott) Bessent responds, how the administration responds. We’ve heard all this talk that they have other ways of instituting these tariffs.”

Trump said in a briefing after the ruling that he would sign an order to impose a 10 percent global tariff under Section 122 of the 1974 Trade Act and would initiate several other investigations as well, while Bessent said that estimates by the department show the use of section 122 authority, combined with potentially enhanced section 232 and section 301 tariffs will result in virtually unchanged tariff revenue in 2026.

Separately, the personal consumption expenditures price index, excluding the volatile food and energy components, rose 0.4 percent, the Commerce Department said, after an unrevised 0.2 percent gain in November and above the 0.3 percent estimate. It rose 3 percent in the 12 months through December after a 2.8 percent climb in November.

The government is set to adopt a "One Health Approach" to tackle health emergencies and pandemics, recognising that approximately 75% of emerging human infectious diseases are zoonotic — naturally transmitted from animals to humans — and that environmental factors also play a crucial role.

A new project titled "Strengthening Health Emergency Prevention, Preparedness, Response and Resilience with One Health Approach" has been proposed, with an estimated cost of Tk2,993 crore. Of the total amount, Tk2,745 crore will be provided as a loan by the World Bank.

The project aims for completion by 2030 and will be implemented jointly by the Health Services Division, the Directorate General of Health Services (DGHS), and the Department of Livestock Services (DLS).

The project proposal has already been sent to the Planning Commission for approval, and a Project Evaluation Committee (PEC) meeting on the proposal is scheduled for next Wednesday, according to Planning Commission sources.

Infograph: tBS
Infograph: tBS

Integrated approach to health safety

The One Health Approach focuses on the interconnectedness of human, animal, plant, and environmental health. The project aims to strengthen Bangladesh's capacity to detect, prevent, and respond to health emergencies.

According to the project proposal, key targets include detecting 70% of priority outbreaks within seven days, delivering 70% of lab results within three days, and certifying 80% of public BSL-2 and 100% of BSL-3 labs for biosafety.

Emergency preparedness measures include establishing epidemiological units in 45 districts, forming 182 rapid response teams, preparing 50 upazilas for health emergencies, and strengthening critical care in 10 medical college hospitals.

Animal health interventions include achieving 80% rabies vaccination coverage among roaming dogs and establishing five animal disease-free zones.

In Bangladesh, in the wake of the 2007 avian influenza outbreak, experts in human, animal, and environmental health came together to form the One Health network. Subsequently, an inter-ministerial steering committee and the One Health Secretariat were established to coordinate and strengthen this integrated approach

Infograph: TBS
Infograph: TBS

Strengthening surveillance systems

The project will implement the One Health Strategic Framework, covering 11 core areas such as governance, workforce development, laboratory capacity, epidemic preparedness, integrated surveillance, food safety, antimicrobial resistance (AMR) control, and environmental protection.

A National Integrated One Health Surveillance and Early Warning System (BOHSEWS) will be developed for real-time disease detection. Laboratory networks, molecular diagnostics, biosafety, and lab information systems will be strengthened, alongside training programs, including sandwich PhD initiatives to build skilled professionals in epidemiology and disease surveillance.

Regional, community-level preparedness

Dr M Mushtuq Husain, scientific secretary of One Health Bangladesh, highlighted the importance of early detection and the "7-1-7" framework: detect infections within seven days, report within one day, and respond effectively within seven days.

The public health expert noted that coordinated action across human, animal, and environmental health sectors is essential to prevent pandemics.

The project also aims to enhance national surge capacity, establish an Emergency Operations Centre (EOC) network, create rapid response teams, maintain emergency stockpiles, and implement AMR control, zoonotic disease prevention, food safety, vector-borne disease control, and digital animal tracking.

Regional cooperation with South Asian countries will be strengthened through joint risk assessments,

In a fresh relief for struggling industries, the Bangladesh Bank has eased loan rescheduling conditions, allowing distressed borrowers to pay only half of the required down payment – 2% of the total outstanding loan – upfront and clear the remainder within six months.

A circular in this regard was issued today (22 February) by the Banking Regulation and Policy Department (BRPD).

The decision also allows additional time extensions and gives bank boards greater discretion over interest-related decisions. Analysts say the measures are designed to stabilise banks' balance sheets at a time when bad loans are climbing and credit growth remains weak.

The circular comes as investment has fallen to multi-year lows and construction activity has slowed sharply. Non-performing loans (NPLs) are hovering above 35%, while borrowing costs range between 14% and 16%.

Against this backdrop, the central bank's decision is widely viewed as an effort to prevent a fresh wave of defaults and give businesses breathing space during a fragile recovery.

Mashrur Arefin, chairman of the Association of Bankers, Bangladesh, said, "While temporary relief can be justified in exceptional circumstances, repeated regulatory forbearance does weaken credit discipline and harm the long-term health of the banking system."

"Capital has a real cost. Continued extensions without strong borrower commitment and equity participation create moral hazard."

"What I fear is such policy signals. They shape behaviour and expectations. They sound like politically motivated decisions," he added. "I call for accountability and market-based discipline, not dependence on repeated regulatory relief."

'Each case is unique'

Sohail RK Hussain, managing director of Bank Asia, said any rescheduling must address the root causes of default.

"If a loan is rescheduled, the root cause must be identified and addressed. If a loan has become overdue and is rescheduled for 10 years, it makes little sense. But if someone has genuinely suffered losses, then the customer must inject new equity. In that case, rescheduling can be meaningful," he said.

He added that under previous regimes, rescheduling was often granted automatically upon application.

"In the past, whenever an application came, loans were rescheduled. Customers effectively enjoyed the bank's money without paying anything. Since every case is unique, this circular gives banks flexibility, but they must implement it prudently," he said.

"If implemented properly, it will be good for the banking sector. If not, it will be harmful," he added.

A deputy managing director of a private bank, speaking on condition of anonymity, said, "Implementing this circular may help lower NPLs, but if customers or businesses do not repay properly, these policy supports will not be effective."

Under the new circular, the Bangladesh Bank also extended the deadline for special loan restructuring. The earlier deadline of 31 December has been pushed back by three months to 31 March 2026.

In addition, decisions regarding interest waivers may now be taken by the boards of the respective financing institutions, within existing policies and based on banker-customer relationships.