Finance and Planning Minister Amir Khasru Mahmud Chowdhury on Sunday said the government has decided not to undertake projects that fail to ensure returns on investment, employment generation and environmental sustainability.
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He said many of the nearly 1,300 projects currently under the Annual Development Programme (ADP) do not meet these criteria and would be cancelled.

The minister made the remarks while addressing the inauguration ceremony of a project at the Palli Karma-Sahayak Foundation (PKSF) Auditorium as the chief guest.

PKSF Chairman Zakir Ahmed Khan presided over the event marking the launch of the second phase of the Recovery and Advancement of Informal Sector Employment (RAISE-2) project.

Financial Institutions Division Secretary Nazma Mobarek attended the programme as a special guest, while Acting World Bank Divisional Director for Bangladesh and Bhutan Dr Gail H Martin joined as the guest of honour.Bangladesh Investment Guide

“Many ongoing projects have little or no prospect of generating investment returns and fail to create employment opportunities,” the minister said.

In view of these concerns, the government has decided not to take up any new mega projects, he added.

The minister also stressed the need to establish democracy in the economy alongside political democracy.

“Due to oligarchic dominance, many people remain excluded from the mainstream economy. They must also be brought into the economic system,” he said.

Officials at the event said the second phase of the project aims to provide skills development and financial support to another 0.2 million youths, following the successful support extended to 0.21 million beneficiaries under the first phase.

PKSF Managing Director Mohammad Fazlul Kader delivered the welcome address.

Speakers at the programme said more than 0.42 million people are expected to benefit directly from the project by 2030.Economic Forecast Service

Under the second phase, priority will be given to youths from climate-vulnerable areas, including chars, haors, hill tracts and coastal regions. Special emphasis will also be placed on the inclusion of Dalits, ethnic minorities and persons with disabilities.

Sri Lanka will increase electricity rates by up to 18 percent from Monday to offset the additional costs of generating power using thermal plants due to the Middle East war, the Public Utilities Commission said.

Consumers using more than 180 units (kilowatt hours) of electricity a month will have to pay an additional 18 percent from Monday, while those using less than that will not see their bills affected.

“The increase will apply to industries, hotels, businesses and government institutions and religious places of worship consuming more than 180 units a month,” the commission said in a statement Sunday.

The measure is the latest in a series of steps taken by the island nation following the war in the Middle East.

The latest hike comes on top of a 40 percent tariff increase introduced last month.

Sri Lanka has also raised fuel prices by more than 35 percent and rationed the same following energy supply disruptions.

Higher energy prices have pushed inflation to more than double, reaching 5.4 percent in April, according to official data.

Sri Lanka has been slowly emerging from the 2022 economic meltdown, when it ran out of foreign exchange reserves to pay for essential imports such as food, fuel and medicines.

It was hit hard by a cyclone last year that killed at least 643 people and affected more than 10 percent of the island’s population of 22 million.

The storm caused an estimated $4.1 billion in direct physical damage to buildings and agriculture, according to the World Bank.

The country has been stabilising its fragile economy with the help of a $2.9 billion IMF bailout agreed in early 2023, but high energy prices have posed a serious challenge to recovery efforts.

The country's banking sector posted robust profits in 2025 despite a sharp slowdown in private sector lending as higher returns from government treasury securities increasingly replaced traditional business lending as the sector's main source of income, raising concerns among economists and bankers over the sustainability of the model.

Several private banks, including BRAC Bank, City Bank, Midland Bank, Prime Bank and Jamuna Bank, reported strong profit growth during the year, driven largely by investments in government securities that offered comparatively risk-free returns amid weak demand for loans from businesses.

According to published financial statements compiled by financial advisory firm Lion City Advisory, several banks posted strong earnings, with BRAC Bank and City Bank both crossing the Tk1,000 crore mark in 2025.

BRAC Bank recorded the highest net profit in the sector, posting Tk2,250 crore in 2025, up 57% from Tk1,432 crore a year earlier. The bank's investment in government treasury securities rose to Tk40,647 crore in 2025 from Tk28,671 crore a year ago, accounting for 31% of its total assets. Treasury investments contributed 32% of its total income during the year.
Infograph: TBS
Infograph: TBS

City Bank reported a consolidated net profit of Tk1,324 crore in 2025, marking a 31% increase from Tk1,014 crore in 2024. The bank's treasury investment rose sharply to Tk19,125 crore from Tk12,487 crore a year earlier, representing 23% of its total assets. Treasury operations accounted for 35% of the bank's income in 2025.

Jamuna Bank invested Tk19,402 crore in treasury securities, accounting for 45% of its total assets, up from Tk12,411 crore in 2024. The bank generated 23% of its operating income from lending to the government.

Midland Bank increased its treasury investment to Tk3,273 crore in 2025 from Tk2,127 crore a year earlier, with government securities accounting for 26% of its total assets. Treasury income contributed 37% of the bank's total income during the year.

NCC Bank also significantly expanded its exposure to government securities. Its investment in treasury securities rose to Tk9,100 crore at the end of December 2025 from Tk6,591 crore a year earlier. The bank earned Tk609 crore from treasury operations in 2025, accounting for 21% of its operating income.

Shift towards government securities

Bankers say the combination of high lending rates, weak business confidence and global uncertainty has discouraged private sector borrowing and pushed banks towards safer investment instruments.

According to Bangladesh Bank data, private sector credit growth fell to 6.03% in February, the lowest level in 21 years. The figure declined from 6.1% in December and remained far below the 10.13% growth recorded in July 2024.

Although credit growth briefly rose to 6.58% in November, analysts attributed the increase to loan restructuring ahead of the 12 February national election rather than fresh investment in productive sectors.

At the same time, government borrowing from the banking system accelerated sharply.

Data from Bangladesh Bank, the Centre for Policy Dialogue and the Asian Development Bank show that total banking sector deposits rose to Tk21 lakh crore at the end of December 2025 from Tk18.83 lakh crore a year earlier, representing an increase of 11.57%.

Meanwhile, banks' investment in treasury bills and bonds surged more than 40% year-on-year to Tk5.38 lakh crore from Tk3.82 lakh crore.

Total banking sector assets stood at Tk28.09 lakh crore at the end of 2025, growing by only 6% compared with the previous year.

Ershad Hossain, director at Putnam Capital Advisory Pte Ltd, said banks were increasingly moving away from lending to businesses and relying heavily on government securities offering yields of around 10% to 12%.

"Private sector credit growth has dropped to 6.03%, a 21-year low, while government borrowing from banks has surged by 24%, exceeding the central bank's ceiling," he said.

"This shift has fundamentally altered banks' income structure, with the majority of operating income now coming from government securities rather than traditional lending."

He also warned that the trend is already affecting the broader economy. Imports of capital machinery, a key indicator of industrial investment, fell 10.43% between July 2025 and March 2026, while banks now hold 67% of public debt. He added that the sector's capital adequacy ratio had dropped to 1.53%, far below the minimum regulatory requirement of 12.5%.

Concerns over crowding out

Economists have warned that excessive government borrowing from banks could crowd out private sector investment by reducing the availability of credit for businesses.

They say prolonged dependence on treasury income could weaken industrial expansion, slow job creation and reduce long-term economic growth.

City Bank Managing Director Mashrur Arefin described the rise in treasury investments at the expense of loan growth as "a major negative signal" for the economy.

"Over the past year, there has been virtually no alternative to making profits from treasury bills because businesses are not borrowing," he said.

According to him, political uncertainty, external economic risks and weak investor confidence have discouraged businesses from opening large letters of credit or importing capital machinery. Even borrowers with approved credit limits are not fully utilising them.

He said banks with strong public confidence and stable deposit inflows were placing increasing amounts of liquidity into government securities because demand for corporate loans remained weak.

Mashrur warned that the trend was not sustainable in the long run.

"If credit growth does not recover, economic growth will eventually slow and banks themselves will suffer," he said.

He added that City Bank is shifting focus towards small loans, digital nano-credit and microfinance through platforms such as bKash to offset weaker corporate lending demand.

Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue, described the growing dependence on treasury income as an "underlying weakness" in the banking sector.

He said a sustainable banking model should rely primarily on financing productive private sector activities and supporting entrepreneurship rather than depending on government borrowing.

"Investment in government securities may be safe, but it does not directly contribute to investment growth or employment generation," he said.

According to him, businesses remain reluctant to borrow because of geopolitical tensions, political uncertainty and an unfavourable business environment.

He said improving logistics support, introducing effective single-window services and reducing the cost of doing business would be necessary to revive private investment and encourage banks to increase lending to productive sectors again.

Abdullah Al Faisal, director at Lion City Advisory Limited, said the growing reliance on treasury income reflected rising risk aversion among banks and weakening credit demand.

"Such income is non-core and highly sensitive to interest rates, making bank profitability less sustainable over time," he said.

Economists and bankers alike caution that while treasury investments currently offer attractive and secure returns with virtually no default risk, the continued shift away from productive lending could weaken the banking sector's long-term role in supporting economic growth.

The corporate tax rate for the private sector should be reduced to remain competitive in attracting foreign investors and supporting industrial growth, business leaders said yesterday.

“Bangladesh should reduce the corporate tax rate to 20 percent from 25 percent to remain competitive with regional economies such as Vietnam, India, and Indonesia, which attract investment through favourable tax policies,” said Tarek Rafi Bhuiyan Jun, president of the Japan-Bangladesh Chamber of Commerce and Industry (JBCCI).

He made the remarks at a press conference organised by the chamber at Ascott The Residence in Baridhara, Dhaka, yesterday.

Lower corporate tax would spur industrial expansion, create jobs, and boost long-term revenue through increased economic activity, he said.

Japan-Bangladesh Chamber urges government to restore the 15 percent corporate tax rate for the textile sector, which was raised to 25 percent in FY26
The trade body urged the government to restore the 15 percent corporate tax rate for the textile sector, which was raised to 25 percent in FY2025-26, saying the higher rate could hurt export competitiveness and business sustainability.

“The opportunity lies in expanding the tax base and modernising the revenue administration, rather than just increasing the burden on existing compliant taxpayers,” Bhuiyan said.

Simplifying VAT procedures and rationalising tax deducted at source (TDS) rates would improve compliance and ease cash-flow constraints on small and medium-sized enterprises, he added.

Maria Howlader, secretary general of JBCCI, stressed the need for a more predictable and investment-friendly tax regime.

Highlighting the chamber’s direct tax proposals, Howlader said the recommendations focused on corporate tax rationalisation, reforms to TDS, adjustment of advance tax provisions, minimum tax rationalisation, and faster tax refunds.

She also called for relaxing some conditions tied to the 20 percent tax rate for listed companies, saying the existing requirement of maintaining at least 10 percent public shareholding through IPOs and specific banking transaction conditions was impractical.

“Bangladesh has made notable progress, but structural bottlenecks continue to increase the cost and time of doing business, directly affecting trade flows, foreign investment and supply chain reliability,” said Asif A Chowdhury, former president of JBCCI.

According to him, logistics costs in Bangladesh account for around 12 percent to 15 percent of GDP, compared to 8 percent to 10 percent in competing economies.

Focusing on maritime connectivity, Chowdhury said Chittagong Port Authority should introduce 24-hour operations, including nighttime vessel navigation, to reduce congestion and overall costs.

“Targeted reforms in logistics and trade facilitation can significantly reduce the cost of doing business, improve reliability and position Bangladesh as a more attractive destination for foreign trade and investment,” he said.

Manabu Sugawara, former president of JBCCI, expressed optimism over the upcoming national budget, saying the country now has an opportunity to strengthen investor confidence following the signing of the Japan-Bangladesh Economic Partnership Agreement (EPA).

Sugawara said the EPA had reached a crucial stage and was now awaiting ratification by the parliaments of both countries.

He stressed that focus should not be limited to tax collection alone, adding that the effective utilisation of tax revenues was equally important for sustaining economic growth and attracting foreign investment.

The Bangladesh Special Economic Zone is showing promise as a manufacturing hub, with swift land handover and private-sector efficiency drawing investments into the zone, according to the Bangladesh Economic Zones Authority (Beza).

Three companies currently in operation are driving initial industrial activity at the zone, widely known as the Japanese economic zone, with combined investments exceeding $97 million and generating thousands of jobs, said the authority.

The investment pipeline at the Japanese economic zone shows a growing mix of manufacturers at various stages of approval.

New proposals are emerging in battery manufacturing, with discussions underway with potential Japanese investors.
Mohammad Zakaria Mithu Director at Beza
Out of the 12 companies that have entered the zone so far, three are already in production -- Singer in electronics, ArtNature in specialised manufacturing, and Lion Kallol in the chemical sector, said Mohammad Zakaria Mithu, director (MIS and research) at Beza.

This pipeline highlights rising interest in sectors such as electronics, packaging, chemicals and engineering, signalling an expanding industrial base.

“New proposals are emerging in battery manufacturing, with discussions underway with potential Japanese investors,” he added.

Singer Bangladesh Limited leads in both scale and employment, having invested more than $75 million and employing over 1,700 local workers. The company has plans to nearly double its workforce.

Lion Kallol Limited, though smaller in scale, is gradually expanding. ArtNature Bangladesh Limited stands out for its labour-intensive operations, employing more than 2,500 locals alongside a significant number of foreign staff.

Together, these three reflect steady progress in positioning the zone as a hub for export-oriented manufacturing, with further investment and employment expected in the coming years.

Mithu described the progress as encouraging, noting that more investors are expected as pending land issues are resolved.

Around 230 acres have already been handed over, while the remaining 268 acres are expected to be transferred within this year under the development agreement. An additional 500 acres is under discussion for future expansion, subject to negotiations involving the Economic Relations Division and development partners.

According to the Beza director, infrastructure development is also progressing. A 230 kV substation is likely to be completed this year and handed over through the Power Grid Company of Bangladesh, which is expected to significantly improve electricity supply to the zone.

However, Mithu said that gas connectivity remains uncertain amid the ongoing national energy crisis. Although the central gas station has already been constructed, supply will depend on availability.

Employment generation is beginning to take shape, with around 3,000 jobs already created. Once fully operational, the zone is expected to employ between 70,000 and 80,000 people.

Mithu said investor enquiries have increased significantly since February 12, signalling growing confidence among foreign investors under the elected government.

Ashik Chowdhury, executive chairman of Beza, said the zone’s rapid progress highlights the advantages of government-to-government (G2G) collaboration when paired with experienced foreign developers.

“Once the zone was handed over, the Japanese side moved very quickly with development,” he said.

Chowdhury noted that foreign partners typically operate with clear commercial targets, enabling faster decision-making and higher execution standards.

“They have experience running economic zones elsewhere, and that reflects in both speed and quality,” he added.

He said the zone’s progress underscores the importance of completing key agreements early. Once foundational arrangements are in place, developers can move independently, maintaining momentum without prolonged administrative delays.

He described this model as essential for Bangladesh as it seeks to attract foreign investment and build competitive industrial infrastructure.

“Our priority is to ensure development happens quickly and efficiently-- and this model helps achieve that,” he said.

Bangladesh’s small and medium enterprise (SME) sector accounts for 99 percent of the country’s industries, yet many businesses remain trapped by poor market linkages, limited modernisation, and inadequate industrial support.

A recent visit to two major SME clusters -- the light engineering hub in Pabna and the handloom cluster in Kumarkhali, Kushtia -- found entrepreneurs struggling to expand despite receiving training and loans from the state-run SME Foundation.

LIGHT ENGINEERING STRUGGLING TO SCALE

For many in Pabna, light engineering has long offered a path out of poverty.

Rabiul Islam Farhad, owner of Baba Engineering, spent decades rising from labourer to entrepreneur.

“I bought a machine with my savings ten years ago. Now, I employ ten workers,” he said.

Despite producing intricate vehicle parts and industrial components, the sector still lacks formal recognition and technical support.

“With even minimum technical support, our handmade products could be recognised in the national automobile sector,” Rabiul added.

Gias Uddin Shiplu, a third-generation entrepreneur at Kafil Uddin Engineering, manages 27 machines but says growth remains constrained by shortages of raw materials, processing facilities, and automated machinery.

“As Pabna is already one of the leading hubs for light engineering in Bangladesh, establishing moulding facilities would help the sector flourish,” he suggested.

Shiplu noted that training is less of a concern, as many workers have already received instruction from the SME Foundation, which has also organised workshops to build business networks.

HANDLOOM SECTOR LOSING GROUND

In Kumarkhali’s handloom cluster, entrepreneurs say the industry is shrinking rapidly.

Md Abdur Rafik, owner of Bulbul Textile, said the number of operational looms has fallen from 5,000 two decades ago to just 1,500 today.

“Our production costs are too high to compete due to the lack of automated machinery,” he said.

Md Masud Rana, owner of Rana Textile and a fourth-generation entrepreneur, said Kumarkhali bedsheets received Geographical Indication (GI) recognition but producers still lack export facilities.

“We are dependent on a local market that is too small to support expansion,” he said.

Rana suggested supplying thread at mill rates to help improve profit margins and sustain the sector.

SECTOR-WIDE CHALLENGES

According to SME Foundation data, around 70,000 factories operate across 177 SME clusters nationwide, generating an annual turnover of Tk 30,000 crore.

A 2024 report by the Bangladesh Bureau of Statistics said there are 1.18 crore industries in the country, 99 percent of which are SMEs. The sector contributes 30 percent to the economy and provides 85 percent of industrial employment, involving more than 3 crore people.

Mohammed Morshed Alom, deputy general manager of the SME Foundation, said most entrepreneurs inherit their trades but lack sufficient technical knowledge and advanced skills.

Since its establishment in 2007, the foundation has surveyed enterprises nationwide and focused on developing entrepreneurial and technical skills, he said.

Farzana Khan, another deputy general manager, said the foundation has disbursed Tk 295 crore in loans through 15 scheduled banks and financial institutions and plans to provide another Tk 440 crore.

Entrepreneurs can access loans ranging from Tk 1 lakh to Tk 25 lakh at single-digit interest rates.

Beyond financing, the foundation regularly organises training programmes in Dhaka and across industrial clusters with support from the Bangladesh Industrial Technical Assistance Center (BITAC), chambers of commerce, and district administrations.

Around 20 lakh people have received training over the past two decades. The foundation also organises fairs in Dhaka and other major cities to improve market linkages for SMEs.

According to foundation data, both loans and training support have been extended to the Pabna Light Engineering Cluster and Kumarkhali Textile Cluster.

How big is the jet fuel threat to Europe’s summer holidays? The EU says it is not facing shortages yet, but it is readying for the worst -- and weighing options including using US kerosene as a back-up.

The US-Israeli war with Iran and the closure of the Strait of Hormuz have sent aviation fuel prices soaring and raised the spectre of shortages during Europe’s peak travel season.

On Friday, the EU Aviation Safety Agency (EASA) cleared the way for the use of Jet A, a US-produced aviation fuel that is not currently used in Europe except on return flights from the United States for technical reasons.

In new recommendations, EASA said: “A potential introduction of Jet A in Europe or in other parts of the world would not generate safety concerns provided that its introduction is properly managed.”

US-produced Jet A has a higher freezing point from the Jet A‑1 fuel used elsewhere in the world -- making it less resistant to very low temperatures during long-haul flights.

The EASA conditioned its use, warning that its introduction into a system historically running on Jet A‑1 could see “operational” risks when both fuels are used.

At the same time, the European Commission outlined measures available to member states to optimise jet fuel use, including aircraft loading and the allocation of airport slots.

WHAT ABOUT EUROPE’S JET FUEL STOCKS?

Brussels has repeatedly insisted the 27-nation EU is not yet facing jet fuel shortages.

“At this stage, this is more a problem of economics and fuel costs than availability,” Matteo Mirolo, an aviation transport specialist, told AFP.

But “we do have to think about supply, especially as this will not be the last crisis we face.”

Before the Middle East war, around 20 percent of the kerosene consumed in Europe transited through the Strait of Hormuz that has been effectively closed by the conflict.

As prices have surged, several airlines, particularly low-cost carriers, have announced flight cancellations.

If the crisis drags on, Brussels is preparing for possible “security of supply issues,” EU energy commissioner Dan Jorgensen said Tuesday.

“We are not there yet, but it can happen,” Jorgensen said.

The commission said last week it would establish a “fuel observatory” to track EU production, imports, exports and stock levels of transport fuels. It is expected to be up and running in coming days.

Until now, the EU has lacked a detailed overview of strategic fuel stocks across member states.

European legislation requires countries to hold oil stocks equivalent to 90 days of net imports and 61 days of domestic consumption, but does not distinguish between different products such as petrol, diesel or jet fuel.

A commission source said some countries, such as Ireland, are more at risk due to a lack of refining capacity, while others, including Finland, appear better prepared.

The same source also voiced concern some airlines may be using the crisis as an opportunity to drop unprofitable routes.

WHAT HAS THE EU ANNOUNCED?

The commission on Friday clarified the rules for governments and airlines on which existing tools can be deployed to ensure jet fuel is used as efficiently as possible and at the lowest possible cost.

It also eased rules restricting “tankering”, the practice of aircraft carrying more fuel than necessary to avoid buying more expensive fuel at other airports.

And Brussels confirmed there would be temporary flexibility on airport slots to prevent airlines that exceptionally give up slots because of high fuel costs from being penalised in future slot allocations.

On the sensitive subject of passenger rights, the EU said airlines may be exempt from paying customers compensation if they can prove a cancelled fight was due to “extraordinary circumstances”, like a local fuel shortage.

If the crisis drags on, the EU is considering coordinated action by member states to release emergency stocks and voluntarily share jet fuel themselves.

In the longer term, Brussels is also stressing the need to develop non‑fossil sustainable aviation fuels (SAF).

The government is set to implement the much-anticipated Padma barrage project at an initial cost of Tk 33,474 crore, aimed at reviving five major river systems and storing 2,900 million cubic metres of water in the Padma river.

The project, to be executed in two phases by 2033, will require a total investment of nearly Tk 50,443 crore.

Covering about 37 percent of Bangladesh’s land area, spanning 26 districts and 163 upazilas across four divisions, the Padma-dependent region has long suffered from water shortages due to upstream diversions.

The barrage is expected to be a game-changer for agriculture, fisheries, biodiversity, and economic growth.

The project gained momentum after a meeting on May 6 with Prime Minister Tarique Rahman, where he highlighted the project’s potential impact on GDP and gave directives for its implementation.

The feedback was incorporated and the proposal for the first phase is set to be placed before the Executive Committee of the National Economic Council on Wednesday for approval.

The first phase would be paid from the government’s own funds and it includes the construction of the 2.1km-long Padma barrage at Pangsha in Rajbari district.

The barrage will feature 78 spillways, 18 undersluice gates, two fish passes, a navigation lock, guide bunds, and approach embankments.

Hydropower plants will be set up at Padma barrage and Gorai off-take, which is the crucial entry point of the Gorai-Madhumati river. The plants will generate 113 megawatts of electricity.

The first phase also includes the dredging and re-excavation of the 135.6km Gorai-Madhumati river and 246.46km Hisna river systems.

The other works include Gorai off-take with 15 spillways, fish pass, navigation lock, and hydro-power plant (36.6 megawatt); Chandana off-take (four spillways); Hisna off-take (five spillways); and construction 180km afflux bund.

The Hisna off-take, often referred to in conjunction with the Hisna-Mathabhanga river system in Bangladesh, is a critical component in water management designed to restore flow from the Ganges river system.

The off-take is part of wider efforts to combat silting and ensure water supply during the lean season, acting as a crucial channel for diverting water into regional rivers like the Hisna.

However, activities under the first phase will directly benefit 19 districts and 120 upazilas in four divisions: Khulna (Kushtia, Meherpur, Chuadanga, Jhenaidah, Magura, Jashore, Narail, Bagerhat, Khulna, Satkhira), Dhaka (Rajbari, Faridpur, Gopalganj), Rajshahi (Pabna, Rajshahi, Natore, Naogaon, Chapainawabganj) and Barishal (Barishal, Pirojpur).

The second phase includes construction of additional supportive infrastructure and restoration of Chandana-Barasia, Baral and Ichhamati river systems.

Five river systems -- Hisna-Mathabhanga, Gorai-Madhumati, Chandana-Barasia, Baral and Ichhamati -- would be revived.

The revived river flows will reduce salinity intrusion in the southwest, restore biodiversity in the Sundarbans, and improve drainage and irrigation.

It would ensure water supply to the Ganges-Kobadak (GK) Irrigation Project, the North Rajshahi irrigation project, Godagari pump house, and Rooppur nuclear power plant.

The project would ensure irrigation for 2.88 million hectares of net cultivable land and boost the annual production of rice by 2.39 million tonnes and fish by 2.34 million tonnes.

The idea of a barrage on the Padma dates back decades.

Between 1960 and 2000, four studies were conducted to identify suitable sites. In 2005, a detailed feasibility study was launched, completed in 2013 by a consortium of local and foreign consultants.

The study highlighted dry-season water scarcity due to upstream withdrawals at India’s Farakka Barrage, which has severely reduced flows in Bangladesh, drying up river systems and damaging agriculture, fisheries, navigation, and biodiversity.

Bangladesh's foreign exchange reserves have fallen below the $30 billion mark following the latest payment to the Asian Clearing Union (ACU).

Bangladesh Bank spokesperson and Executive Director Arief Hossain Khan today (10 May) said that the country's reserves stood at $29.48 billion under the BPM-6 calculation method.

"According to BPM-6, the central bank's reserves now stand at $29.48 billion, down from $30.96 billion reported on 7 April," he said.

The ACU is a regional payment arrangement that facilitates settlement of import transactions among its nine member countries – Bangladesh, Bhutan, India, Iran, Maldives, Myanmar, Nepal, Pakistan and Sri Lanka.

The payment mechanism allows the member states' central banks to settle eligible cross-border transactions on a multilateral basis. ACU payments are made every two months.

The country's premier bourse, the Dhaka Stock Exchange (DSE), extended its losing streak for the fourth consecutive session today (10 May), as a lack of favourable catalysts and persistent selling pressure on major large-cap scrips dampened investor sentiment.

The benchmark index opened the week on a dismal note, resulting in a significant erosion of the market's total valuation. In the last four consecutive sessions, the market capitalisation of the Dhaka bourse dropped by approximately Tk9,800 crore, settling at Tk6.76 lakh crore.

The benchmark DSEX index shed 13 points today, or 0.25%, to close the session at 5,220. The downturn was more pronounced in the blue-chip segment, with the DS30 index slipping by 11 points to reach 1,990.

The market breadth remained negative, as 194 issues declined compared to 161 that managed to advance, while 39 scrips remained unchanged on the DSE floor.

According to the daily market review by EBL Securities, market participants are currently adopting a cautious "wait-and-see" approach, monitoring for a major catalyst that could drive a persistently favourable momentum. The market witnessed sustained selling pressure across influential stocks, although participation remained evident as some investors shifted their focus toward small-cap and momentum-driven scrips.

Trading activity saw a notable contraction, with daily turnover on the DSE dropping by 14% to stand at Tk727 crore.

On the sectoral front, the engineering sector accounted for the highest share of turnover at 13.8%, followed closely by general insurance and the textile sector, both contributing 13.1%.

In terms of returns, the mutual fund sector emerged as the top performer, posting a substantial 6.7% gain. This rally was primarily driven by the regulatory directive for converting closed-end mutual funds into open-end structures, which triggered fresh buying interest across the segment. The tannery and jute sectors also managed to exert positive returns of 2.7% and 1.5%, respectively.

Conversely, sectors such as paper, ceramics, and textiles faced the steepest corrections, with the paper sector declining by 1.7%.

Individual stock performance reflected the day's volatility. The top gainers' list was heavily dominated by mutual funds, with AB Bank First Mutual Fund, First Bangladesh Fixed Income Fund, IFIL Islamic Mutual Fund, and PHP First Mutual Fund all hitting the 10% upper circuit limit. Continental Insurance also surged by 10% to join the top gainers.

On the flip side, Saiham Cotton was the top loser, shedding 5.60% of its value, followed by Alif Manufacturing, Sonar Bangla Insurance, Peoples Leasing, and Mir Akhter.

Liquidity was concentrated in a few specific scrips, with Monno Ceramic, Dominage Steel, BD Thai Food, Summit Alliance Port, and Apex Spinning emerging as the most traded stocks of the day.

The bearish sentiment was mirrored at the Chittagong Stock Exchange (CSE), where the key indices also ended in the red. The broad CASPI index dipped by 56 points to close at 14,646, while the CSCX ended 35 points lower at 9,012. Trading volume at the port city bourse remained relatively low, with turnover standing at Tk14.94 crore.

Bangladesh’s foreign exchange market came under mild pressure in March as heightened global uncertainty stemming from the Middle East war situation pushed up exchange-rate volatility and interbank dollar transactions, according to a monthly report by the central bank.

The interbank exchange rate rose to Tk 122.75 per dollar at the end of March from Tk 122.30 per dollar at the end of February 2026, reflecting marginal depreciation.

However, on a year-on-year basis, the movement in the exchange rate resulted in a nominal depreciation of 0.61 percent against the US dollar, said the report on exchange rate and foreign exchange market dynamics.

The variability in the exchange rate increased considerably, and rates moved within a wider range in March 2026 after a period of low variability since December 2025, according to the report published yesterday.

The Bangladesh Bank report said that while the spread in the interbank market and in the bank’s sales to clients remained stable, the spread in the bank’s purchase from the client market edged up on average to Tk 1.19 per US dollar in March from Tk 0.99 per dollar in February.

The global economic uncertainty stemming from the Middle East was propagated through the foreign exchange market, as reflected in the daily average spread of spot exchange rates, defined as the daily maximum minus minimum rate, said the report.

At the same time, the volume of daily average spot transactions rose to $62.17 million in March from $37.27 million in February as banks increased dollar trading amid growing global economic uncertainty.

“An increase in exchange rate flexibility and a rise in liquidity in the foreign exchange market led to a rise in interbank spot foreign exchange transaction volume on average in March 2026, with some fluctuation in daily transactions,” said the report.

At the same time, the volume of swap transactions edged up markedly during the period. The average daily swap transaction doubled to $100.82 million in March from $53.54 million in February.
As such, the share of swap transactions in total interbank transactions rose to 62 percent in March from 59 percent in February. By contrast, the share of spot transactions declined.

The Bangladesh Bank said swap transactions increased at a faster rate than spot transactions amid growing war-driven uncertainties.

The report said that since the foreign exchange market has experienced gentle pressure, the central bank reduced the pace of its foreign exchange purchases in March to only $25 million, far lower than $1.53 billion in February, “as a part of cautious and prudent market management.”

Bangladesh Shipping Corporation reported a 16% year-on-year decline in net profit for the January-March quarter of FY2025-26, as a sharp fall in interest income from fixed deposits offset strong revenue growth.

According to the company's unaudited financial statements, quarterly revenue rose 19% to Tk158.63 crore. However, net profit dropped to Tk63.79 crore from the corresponding period last year, with earnings per share (EPS) falling to Tk4.18 from Tk4.95.

The state-run shipping company said income from Fixed Deposit Receipts (FDRs) plunged 60% to Tk25.51 crore during the quarter after it utilised a large portion of its cash reserves to finance fleet expansion.

In September 2025, the BSC board approved the purchase of two bulk carriers from China at a cost of $76.7 million, or around Tk935 crore – the first vessel acquisition funded largely through the company's own resources. To finance the move, BSC withdrew nearly Tk700 crore from its FDR accounts, while the remaining amount was arranged through borrowing.

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For the first nine months of FY26, BSC's revenue increased 7% to Tk459 crore, though cumulative net profit declined 9% to Tk200 crore.

Its net asset value (NAV) per share rose to Tk115.45 due to higher retained earnings, while net operating cash flow per share (NOCFPS) fell to Tk16.80 amid higher interest expenses and supplier payments.

The corporation is also facing geopolitical risks in international shipping operations. Its vessel, MV Banglar Joyjatra, has remained stranded at Jebel Ali Port since 11 March with 31 Bangladeshi sailors onboard due to escalating Iran-US-Israel tensions. The incident comes years after the 2022 missile strike on MV Banglar Samriddhi at Ukraine's Olvia port.

Despite the temporary pressure on profitability, company insiders said the new vessel acquisition is expected to strengthen BSC's long-term operational capacity and reduce dependence on chartered ships. BSC shares closed 0.48% lower at Tk103.40 on Thursday at the Dhaka Stock Exchange.

Nine months into the current fiscal year, Bangladesh has managed to implement only 36% of its Annual Development Programme (ADP). Yet, the government has moved to raise the development budget by another 50% next year, highlighting a widening gap between ambition and execution.

The Planning Commission yesterday gave preliminary approval to a Tk3 lakh crore ADP for FY2026-27, marking a Tk70,000 crore, or 30%, increase from the original ADP for the current fiscal year.

The contrast becomes sharper when compared with the revised ADP. In January, the government slashed the current year's ADP by Tk30,000 crore, a 13% cut, after ministries and agencies failed to utilise allocated funds at the expected pace.

Now, despite struggling to fully spend the downsized Tk2 lakh crore programme, the government is preparing an even larger development outlay.
ADP implementation rate rises slightly, but actual spending shrinks

The figures raise questions about the country's public investment strategy, particularly whether implementing agencies have the capacity to deliver such an expanded pipeline of projects amid persistent bottlenecks, procurement delays and weak project readiness.

According to the proposed allocation, the transport and communication sector will receive the highest outlay at Tk50,092 crore, accounting for 16.7% of the total ADP. Education follows with Tk47,591 crore, while health has been allocated Tk35,535 crore.

Power and energy will receive Tk32,691 crore, and housing Tk20,361 crore. Together, these five sectors account for nearly 62% of the entire proposed ADP.

The Bangladesh Investment Development Authority (Bida) has proposed gradually allowing 80% of import goods to be cleared through private Inland Container Depots (ICDs), or off-docks, in a move aimed at reducing congestion at Chattogram Port and improving logistics efficiency.

The proposal has been submitted to the finance ministry as part of a broader deregulation initiative to facilitate trade and improve the ease of doing business, officials concerned told The Business Standard.

According to Bida, implementation of the proposal could increase the handling capacity of the New Mooring Container Terminal (NCT) and Chittagong Container Terminal (CCT) by around 1.6 to 2 times by reducing pressure on port operations.

Currently, the National Board of Revenue (NBR) allows the clearance of only 65 categories of imported goods through private ICDs, although all export activities are already conducted through 21 off-docks across the country.

Bida said the limited scope for import clearance through ICDs creates congestion in port operations and slows down the import process.

In most countries, both import and export activities are largely handled through off-docks, it added.

To ensure compliance, the agency has also proposed introducing a regular risk-based review system for off-docks.

Business leaders and economists said the initiative could help reduce operational costs, shorten lead time and increase investor confidence.

Professor Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue, said Bangladesh still faces challenges related to the cost of doing business, turnaround time in port management and slow implementation of logistics reforms.

"Such initiatives are positive for attracting investment and increasing competitiveness," he said, adding that lead time has become a major factor alongside price and quality in international trade.

According to data from the Chittagong Port Authority, the port handled 34,09,069 TEUs of containers between January and December 2025.

Abul Kasem Khan, chairperson of Business Initiative Leading Development, described the proposal as timely.

"If the use of ICDs is increased, pressure on the port will decrease and congestion will be reduced," he said, adding that customs-related activities are internationally handled outside the main port area.

Bida has also proposed expanding banking and customs services to support effective 24-hour port operations.

Although port activities currently continue around the clock to some extent, related banking services remain largely limited to office hours and working days, causing delays in LC processing, payment clearance and other import-export procedures.

The agency recommended extending banking support throughout the week and moving most customs clearance procedures fully online to ensure uninterrupted 24/7 operations.

Bida said integrated round-the-clock operations would significantly reduce goods clearance time, improve overall efficiency and align Bangladesh's trade system with international standards.

The agency has further proposed integrating ASYCUDA World, the National Single Window, and systems used by other regulatory agencies into a single interoperable digital platform.

According to the proposal, businesses would be able to submit information once, which would then be automatically shared among all relevant agencies, reducing duplication, delays and procedural complexities.

Abul Kasem Khan said integrating licence and permit systems with the NSW would make trade processes faster and more efficient.

"Providing information once so that it can be used by various agencies is now the global standard," he said.

Last month, speaking at a consultative committee meeting organised by NBR and Federation of Bangladesh Chambers of Commerce and Industry, Finance and Planning Minister Amir Khosru Mahmud Chowdhury said obstacles to doing business would be removed to support private sector-led growth.

Bangladesh’s goal of reaching $100 billion in export earnings by 2030 may not be achievable without major improvements in trade facilitation, port efficiency and logistics capacity, economist M Masrur Reaz warned yesterday.

He said exports are currently around $55 billion, but Bangladesh still faces high trade costs, long cargo waiting times, congestion and weak logistics infrastructure compared with regional competitors such as Vietnam and India.

Bangladesh’s export costs are about one and a half times higher than Vietnam’s and, in some cases, nearly double those of India
M Masrur Reaz Chairman of PEB

“Reaching $100 billion in exports by 2030 or even by 2033 with the current trade facilitation and logistics capacity will not be possible unless we significantly improve efficiency, reduce time and cut costs,” said Reaz, chairman of Policy Exchange of Bangladesh.

He made the remarks at a roundtable titled “Integrated Port and Logistics Development for a Trade-Driven Bangladesh”, organised by the Dhaka Chamber of Commerce and Industry (DCCI) in Dhaka.

Reaz said Bangladesh’s export costs are about one and a half times higher than Vietnam’s and, in some cases, nearly double those of India. He also noted that import processing takes significantly longer in Bangladesh.

He added that the country continues to lag in global competitiveness, logistics performance and productivity, which is weakening its ability to attract investment and integrate into global supply chains.

Comparing Bangladesh with Vietnam, he said Vietnam has increased its exports to nearly $400 billion through sustained reforms in trade facilitation and logistics. In contrast, Bangladesh remains at about $55 billion, even though both countries had similar export levels in the late 1990s.

Reaz said ports will play a crucial role in shaping Bangladesh’s future export competitiveness, especially as global supply chains shift and China moves away from low-value garment production worth around $35 to $40 billion annually.

Citing World Bank data, he noted that “cutting logistics costs by 25 percent could boost exports by 20 percent” and that “reducing port dwell time by just one day could increase exports by 7.4 percent.”

However, he said, relying only on public funding for port development is no longer realistic due to limited government resources and fiscal pressure.

“Developing ports through a fully public-sector model is neither feasible nor desirable. We have to move toward public-private partnerships,” he added.

Md Salim Ullah, director general of the Bangladesh Institute of Management (BIM), said Bangladesh is still far behind in managing integrated ports and logistics efficiently, which is keeping the cost of doing business high.

Md Habibur Rahman, former member (administration and planning) of the Chittagong Port Authority, said rail connectivity is the only long-term solution for cargo transport, as there is limited scope to further expand the Dhaka-Chattogram highway.

He also suggested involving the private sector in operating at least one seaport, saying it would improve competition, service quality and efficiency.

Razeev H Chowdhury, senior vice president of DCCI, said long cargo clearance procedures, slow transport systems and the lack of modern cold-chain facilities are making Bangladesh’s supply chain costly and inefficient.

He called for paperless and automated port systems, infrastructure development through public-private partnerships, and higher investment in cold-chain logistics.

Md Shamsul Hoque, professor of Civil Engineering at BUET, criticised Bangladesh’s fragmented infrastructure planning and called for an integrated multimodal transport system along with institutional reforms.

He said infrastructure development has mostly focused on passenger transport, while freight transport -- despite being more complex and economically important -- has been largely neglected.

He also pointed out the lack of integrated transport planning, noting that roads, railways, waterways and aviation are developed separately instead of as a unified system. Even when facilities are located close to each other, such as an airport and a railway station, there is still no seamless connectivity between rail, metro, road and air transport.

Some foreign shareholders and owners of Ring Shine Textiles Limited – a company operating in Bangladesh since 1997 – have written to Prime Minister Tarique Rahman seeking a meeting to present the firm's ongoing crisis and request government support to protect the interests of public shareholders.

In the letter, the foreign investors said Ring Shine Textiles, a listed company that raised Tk150 crore through an initial public offering (IPO), is facing the threat of eviction due to a large volume of unpaid dues to the Bangladesh Export Processing Zones Authority (BEPZA).

They also noted that they have lost business operations of subsidiary garment units – Avant Grade Fashion and Shine Fashion Co (Pvt) Ltd.
Nine investors from Thailand, Taiwan, and Indonesia established the 100% export-oriented Ring Shine Textiles at the Dhaka Export Processing Zone (DEPZ).

Currently, two of the nine foreign investors remain stranded in Bangladesh because of travel bans since 2020, while others are reportedly avoiding travel to the country over fears of facing similar restrictions.

Aniruddho Pial, the current managing director of Ring Shine Textiles Limited, said the company had performed strongly in the ready-made garment sector and contributed significantly to the economy until 2019.

However, he said the company ran into trouble during the Covid-19 pandemic and has since struggled with a business slowdown, mounting debt burdens, growing dues to BEPZA, and a shortage of working capital.

Against this backdrop, the company's foreign investors have sought a meeting with the prime minister to present the company's current situation and seek government assistance to safeguard the interests of public shareholders.

"We have already received loan-rescheduling facilities from Bangladesh Bank. Now, as the central bank is forming a Tk40,000 crore special fund for sick and closed factories, we will seek financial assistance from the fund," Pial said.

Controversial IPO listing

According to the letter, Ring Shine's troubles began after a controversial IPO process allegedly involving FAR Group's Abdul Kader Faruk and Indian textile trader Ashok Kumar Chirimar.

The investors described in detail how the disputed IPO process led to the company's current crisis and the difficulties faced by the foreign shareholders.

Ring Shine entered the stock market in 2019 through a Tk150 crore IPO – one of the largest offerings in the textile sector. Before going public, the company increased its paid-up capital from less than Tk10 crore to more than Tk285 crore.

BSEC findings

Findings by the Bangladesh Securities and Exchange Commission (BSEC) revealed that a syndicate involving controversial tax official Matiur Rahman and FAR Group Chairman Abdul Kader Faruk allegedly embezzled hundreds of crores of taka by issuing new shares of Ring Shine Textiles without investing any funds.

According to the findings, the group allocated shares worth Tk112 crore at a face value of Tk10 each without depositing any money into the company's account.

The BSEC later decided to seek travel bans on 13 individuals linked to the company, including sponsors, former directors, the managing director, executive director, chief financial officer, and company secretary, as well as Faruk and Chirimar.

Once a profitable company, Ring Shine's financial condition deteriorated after its stock market listing. The company also suffered severe setbacks during the coronavirus pandemic as foreign buyers suspended orders amid weakening global demand.

When irregularities surrounding the IPO came to light, the BSEC froze the company's unutilised IPO funds that were intended for business expansion and loan repayment.

Investors left in the dark

Ring Shine has also failed to publish financial statements for the fourth quarter of FY25 and the first three quarters of the current fiscal year, leaving investors unaware of the company's financial condition for nearly a year.

According to previous reports by The Business Standard, BEPZA has initiated proceedings to cancel six additional lease agreements of Ring Shine for failing to clear outstanding dues.

The Dhaka EPZ office issued a notice expressing its intention to terminate the leases of plots no 157-163. Earlier, on 20 February 2025, BEPZA had cancelled leases for plots no 231-236 on similar grounds.

As of 25 January 2025, Ring Shine's outstanding dues to BEPZA stood at around $16.19 million, against a deposit of only $2,54,945. Despite repeated reminders, the company has yet to clear the arrears.

In November last year, Bangladesh Bank allowed publicly listed Ring Shine Textiles to reschedule its loans for up to 10 years, including a two-year moratorium period.

The company also received an eight-year rescheduling facility for its working capital loans – including overdraft, cash credit, and forced loans – with a 2% down payment requirement, of which 1% was to be paid before rescheduling and the remaining 1% after six months.

Aniruddho said that government support would enable the foreign-owned company to resume full operations and help foreign investors save the firm, which in turn could restore confidence among foreign investors.

Brent crude futures jumped as much as 3 percent on Friday, a ​day after the US and Iran traded air strikes, but pared gains as traders hoped for a ‌longer pause in the fighting that has shut shipping in the Strait of Hormuz.

Brent crude futures settled at $101.29 a barrel, up $1.23 or 1.23 percent, after rising as much as 3 percent during the session.

US West Texas Intermediate (WTI) futures finished at $95.42 a barrel, up 61 cents, or 0.64 percent.

Both contracts were settled with ​weekly declines of more than 6 percent.

“We’re treading water here, rightfully so,” said John Kilduff, partner with Again Capital. “We’re on ​the cusp of a breakthrough in negotiations or we’re on the cusp of a renewal ⁠of the fighting. We’ve been here a lot.”

“There is a sense in the market that there is going to be ​an agreement and we’ll get the next phase which would be 30 days to hammer out an agreement (between Iran and ​the US),” Kilduff said.

Throughout the day, traders felt like they had been swatted back and forth like a tennis ball.

“We’re still playing the headline-o-rama game,” said Phil Flynn, senior analyst with Price Futures Group. “Ship movement in the Persian Gulf is going about as well as can ​be expected. We’re kind of working around the edges.”

US and Iranian forces clashed in the Gulf, and the UAE came ​under renewed attack as Washington awaited a response from Tehran to its proposal to end the conflict, which began with joint US-Israeli ‌airstrikes across ⁠Iran on February 28.

US President Donald Trump later on Thursday told reporters the ceasefire was still in effect and sought to play down the exchange.

However, on Friday, Trump renewed an ultimatum demanding Iran give up its nuclear ambitions.

“How quickly can supply be returned from Gulf states, what will the state of inventories be as we approach peak gasoline season, and what sanctions would ​look like post-settlement are all worthy ​of thought. But none ⁠can be addressed until there is a long-term solution to hostilities,” said PVM Oil Associates analyst John Evans.

“The US administration continues to oversell the prospects of a thaw, and an ​optimism-biased market buys into it,” said Vandana Hari, founder of oil market analysis firm Vanda ​Insights.

“Curiously, each time, ⁠the rebound is gradual and incomplete, making the head fakes at least somewhat effective.”

Meanwhile, the US Commodity Futures Trading Commission is investigating oil price trades totalling $7 billion placed shortly ahead of key Iran war-related announcements by Trump, Reuters reported on Thursday.

Most involved short ⁠positions, or ​bets on prices falling, placed on the Intercontinental Exchange (ICE) and Chicago ​Mercantile Exchange (CME) and were placed shortly before Trump statements announcing attack delays, the ceasefire or other changes to Iran policy that led to a decline ​in oil markets.

Bangladesh and Pakistan on Saturday reaffirmed their commitment to deepening bilateral engagement and expanding cooperation across key sectors, as senior ministers from the two countries held talks in the capital, with a focus on regional connectivity and people-to-people contacts.
FE

The discussion took place when State Minister for Foreign Affairs Shama Obaed Islam met visiting Pakistan’s Minister for Interior and Narcotics Control Syed Mohsin Raza Naqvi at a city hotel, according to a Foreign Ministry press release.

During the meeting, the two ministers discussed a wide range of issues of mutual interest and expressed satisfaction over the recent momentum in bilateral engagement, reaffirming their shared commitment to further strengthening relations between the two countries.

They observed that significant untapped potential remains for expanding cooperation in trade and commerce, sports, culture, women’s entrepreneurship, education, science and technology, and digital innovation.

The two sides also underscored the importance of enhancing people-to-people contacts and promoting greater institutional collaboration to deepen bilateral ties.

Shama reiterated the Bangladesh government’s commitment to revitalising the South Asian Association for Regional Cooperation (SAARC) as an important platform for regional cooperation, connectivity and shared prosperity.

Both sides stressed the need for stronger regional cooperation for the collective benefit of the people of South Asia.

Global stock markets diverged and oil prices rose Friday as fresh US-Iran clashes in the Strait of Hormuz jolted hopes for a deal to end the Middle East war and reopen the crucial waterway.

While European bourses retreated, the S&P 500 and Nasdaq indices both pushed to fresh records on solid US jobs numbers. The Dow ended flat.

"No negative news sticks to this bull market, and it just keeps working its way higher," said CFRA Research's Sam Stovall.

A US fighter jet disabled two Iranian-flagged tankers to enforce a port blockade on Friday, prompting retaliatory attacks from Iran. The latest incident came after another flare-up overnight in the strait.

Meanwhile, US data showed the economy added 115,000 jobs in April, more than double the forecast.

But US consumer confidence was at an all-time low according to a University of Michigan survey, with Americans weighed down by concerns about high prices and the fallout of the US-Israel war on Iran.

Stovall cited both the consumer confidence figure and the brittle conditions in the Middle East as headwinds the market has shrugged, but added, "I would not be surprised if we do see some digestion of recent gains take place in the near-term."

Bret Kenwell, eToro's US investment analyst, noted that if the labor market and broader economy continue to hold up as rising energy prices fan inflation, the Fed will have less justification to cut interest rates.

"In other words, good news may actually be good news again -- just not for investors hoping the Fed rides in with quick rate cuts," he said.

Investors often consider bad economic news to be good news in the sense it increases chances of interest rate cuts.

The dollar retreated against its main rivals.

Europe's main stock markets finished the day lower.

The British pound held up as Keir Starmer vowed to carry on as UK prime minister after his Labour Party suffered big losses to the hard-right in local elections.

Critics say Starmer has swerved from one policy misstep to another, and he has been embroiled in a scandal over Peter Mandelson, who was sacked as ambassador to Washington over his links to US sex offender Jeffrey Epstein.

The prime minister has also failed to fulfil his main promise of spurring economic growth, with impatient Britons still suffering a cost-of-living crisis, including from high energy prices.

Elsewhere on Friday, the yen firmed after Japanese media reported that authorities had spent around $64 billion since last week propping up the currency.

The market interventions reportedly began on April 30 when the yen weakened to near 160 per US dollar, the lowest in almost two years.

Since then there have been several spikes in the value of the Japanese currency, sparking speculation of further moves by the government.

China's trade grew faster than expected last month, official data showed Saturday, withstanding pressure from war in the Middle East and reversing a decline in exports to the United States.

Booming trade has represented a vital lifeline for Beijing in recent years as the domestic economy lags, with sluggish spending and a stubborn debt crisis in the property sector weighing on activity.

The war with Iran, launched by the United States and Israel in late February, has produced new risks for China's economy, though its trade has so far appeared to be weathering the disruptions.

Exports from the manufacturing powerhouse were up 14.1 percent in April compared to the same month last year, the General Administration of Customs (GAC) said.

The growth outpaced a Bloomberg forecast of 8.4 percent based on a survey of economists, and also picked up significantly from the 2.5 percent increase in March.

Analysts say China's diversified energy supply insulates it from immediate shocks from the war, though any global economic downturn would eventually weaken demand for its exports.

Amid a shaky truce, observers are awaiting a high-stakes meeting in Beijing next week between Chinese President Xi Jinping and US counterpart Donald Trump.

The talks previously set for late March were delayed by the war in the Middle East, which has sent global energy prices soaring as shipping through the vital Strait of Hormuz has effectively come to a halt.

The world's second-largest economy produced a record-breaking trade surplus last year at $1.2 trillion.

For Trump, imbalance in the countries' trade relationship has long been a major sticking point.

Ahead of the key meeting, China's exports to the United States grew 11.3 percent year-on-year in April, GAC data showed Saturday, returning to growth after dropping sharply by 26.5 percent in March.

Shipments to the United States had also dropped 11 percent in January and February combined.

Trade is set to be a prominent topic in the upcoming meeting between Xi and Trump, with both leaders eyeing key concessions for their massive economies.

Beijing has set an official target growth range for this year of 4.5-5.0 percent -- the lowest in decades.

Early indications suggest the country's economy is on pace, with growth in the first quarter reaching the top of that range at five percent, according to government data released in April.

Economists argue that China should shift towards a growth model powered more by household consumption than traditional drivers including real estate and infrastructure investment.

In a positive sign for domestic spending, imports into the world's second-largest economy grew 25.3 percent year-on-year last month, the GAC data showed Saturday.

That figure beat a Bloomberg forecast of 20.0 percent but was slightly lower than the 27.8-percent surge in March.

Monthly inflation data due Monday is expected to shed further light on how efforts by leaders to encourage consumers to pull out their wallets have been faring.