Reckitt Benckiser Bangladesh, a listed multinational on the bourses, reported a 9.99% year-on-year decline in revenue and a 28.31% drop in net profit after tax in the first quarter of 2026.

During the January to March quarter, its revenue declined to Tk132.61 crore, a lower from Tk147.34 crore, while its profit declined to Tk10.99 crore, a lower from Tk15.33 crore in the same time of the previous year, its report showed.

At the end of March 2026, its earnings per share (EPS) declined to Tk23.26, which was Tk32.45 in the same time of the previous year.

The quarterly financials published today (3 May) on the stock exchanges. Following the financials results, the company's shares fell 2.69% or Tk93.4 each closed at Tk3,377 each at the Dhaka Stock Exchange (DSE).

In 2025, Reckitt Benckiser reported a profit of Tk81.71 crore with an EPS of Tk172.93, which was Tk75.20 crore and EPS of Tk159.17 in 2024, its data showed.

Based on its financials, its board recommended a 1,730% final cash dividend meaning that Tk173 against each shares.

To approve its financials and dividend by the general shareholders, the MNC scheduled its annual report on 29 June thorough the digital platform.

Reckitt Benckiser had paid a record-high 3,330% cash dividend for 2024 to its shareholders.

Reckitt Benckiser (Bangladesh) PLC is a subsidiary of the UK-based Reckitt Benckiser Group plc. It is a well-known manufacturer of health, hygiene, and home products, with several leading brands in Bangladesh.

The company manufactures and marketed of households (hygiene), toiletries and pharmaceutical (health) product.

Reckitt Benckiser is a well-known and trusted company in Bangladesh's FMCG sector. It offers a wide range of products, including Dettol, Harpic, Lizol, Trix, Mr Brasso, and Veet.

As of March this year, out of its total shares, sponsor-directors held 82.96%, government 3.77%, institutional shareholders 6.80%, foreign 0.01% and general public held 6.46%.

Most listed drug manufacturers in Bangladesh posted double-digit year-on-year profit growth in the first nine months through March, supported by rising demand, efficient cost management, and a stable forex market. Bangladeshmarket report
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Market analysts attributed the growth to higher sales volumes, improved operational efficiency, and sustained demand for medicines both domestically and in export markets.

The sector's performance stands out at a time when many other industries-including multinational companies-are grappling with elevated operating costs amid persistent inflationary pressure.

"Sales of lifesaving drugs increased due to strong local demand, while leading companies successfully managed to keep operating costs lower," Salim Afzal Shawon, head of research at BRAC EPL Stockbrokerage, told The Financial Express over the phone.

The growing population, coupled with rising awareness of healthcare needs, has amplified demand for generic medicines in the local market, particularly for chronic diseases.

The aftermath of the Covid-19 pandemic has further underscored the importance of healthcare, leading to a heightened focus on medical preparedness and infrastructure, which in turn has positively impacted the pharmaceutical industry.

"People now prioritise healthcare spending more than before, which is contributing to higher sales and profitability," said Mr Shawon. Marketupdate service

This resilience allows leading pharmaceutical companies to sustain strong revenue and profit growth, he added.

Combined profits of eight major drug manufacturers rose nearly 14 per cent year-on-year to Tk 27.22 billion during July-March of FY26. Over the same period, total sales increased 13 per cent year-on-year to Tk 155 billion.

Among the eight, Techno Drugs and Silco Pharma saw their profits decline, mainly due to lower sales and higher finance costs.

Silco Pharma's profit fell 19 per cent year-on-year in the nine months through March, as its finance costs more than doubled to Tk 170 million due to increased borrowing.

Techno Drugs' profit also dropped 16 per cent due to lower sales and higher tax expenses. Its sales declined 10 per cent year-on-year, while tax expenses surged 19 per cent during July-March FY26 compared to the same period a year earlier.

Beximco Pharma and Navana Pharma have yet to publish their third-quarter financial results. Financialdata analytics

Overall, the pharmaceutical sector has remained resilient despite broader economic challenges such as inflationary pressure and rising production costs.

Square Pharma, the country's largest drug maker, posted a 10 per cent year-on-year increase in profit to Tk 20.64 billion for the nine months through March. Revenue rose 12.5 per cent to Tk 65.08 billion.

The company attributed the sustained growth to several factors, including rising domestic demand for healthcare products, export earnings, and income from subsidiaries.

Square Pharma's local sales grew by more than 9 per cent, while revenue from its Kenya subsidiary rose 4.5 per cent year-on-year during the period.

The company also reduced its finance costs by 55 per cent, supported by the partial repayment of long-term loans.

"The drug maker continues to grow in both sales and profit owing to strong consumer trust in its products," said Akramul Alam, head of research at Royal Capital.

He highlighted Square Pharma's competitive edge in producing high-quality generic medicines at relatively low costs, supporting its long-term growth trajectory. Globalmarket forecast

Another leading drug manufacturer, Renata, posted 28 per cent year-on-year profit growth in the first nine months through March, driven by strong operating profit and reduced finance costs following a capital restructuring initiative.

"Profitability improved on the back of better gross margins, efficient procurement, and tight control over expenses, including lower financing costs through major capital restructuring," said the company.

"We successfully lowered finance costs by deploying the proceeds from preference share issuance to retire high-cost debts, a move that has structurally reduced our interest burden going forward," Mustafa Alim Aolad, chief financial officer of Renata, told The Financial Express over the phone recently.

Renata's domestic sales, which account for almost 74 per cent of total revenue, grew by more than 10 per cent, while export revenue rose 5 per cent, aided by a wave of international regulatory approvals.

Beacon Pharmaceuticals recorded the highest profit growth among its peers, registering a 59 per cent year-on-year increase. The growth was driven by higher sales, lower input costs, efficient production planning, and prudent financial management, the company said.

IBN Sina Pharmaceutical Industry also posted strong results, with profit rising 33 per cent and sales increasing 18 per cent, backed by solid operational performance.

Meanwhile, although Advanced Chemical Industries (ACI) remained in the red, its pharmaceutical segment posted 21 per cent year-on-year sales growth during the period under review. Its consolidated losses shrank to Tk 71 million in July-March of FY26, one-eleventh of the losses recorded during the same period of the previous year.

Bangladesh's pharmaceutical industry, which meets 98 per cent of local demand, remains one of the country's success stories, having recorded remarkable growth in recent years. Bangladeshmarket report

Export performance has also remained steady. Pharmaceutical exports reached $170.67 million in the first nine months of FY26, marking growth of more than 3 per cent, driven largely by demand from Asian markets such as Sri Lanka and Myanmar.

Mr Alam said that with continued investment, regulatory compliance, and a growing skilled workforce, the local pharmaceutical sector is poised not only to sustain but also to accelerate export growth in the coming years.

The Bangladesh Investment Development Authority (Bida) has recently submitted 20 deregulation proposals to the finance ministry, aiming to significantly ease doing business without reducing tax rates.

The proposals, developed through a series of consultations with business leaders, focus on removing procedural bottlenecks, reducing compliance costs, and improving predictability in regulatory processes, Bida officials told The Business Standard.

Business representatives believe that if implemented, the measures would lower operational expenses, save time, and boost investor confidence.

Push for risk-based audit system

A key recommendation is the introduction of a risk-based audit system to replace the current practice of selecting firms for audit without clear criteria.

At present, companies are often subjected to repeated audits immediately after submitting their audited financial statements, leading to complaints of unnecessary harassment.

Under the proposed system, the National Board of Revenue would use predefined risk parameters – such as abnormal fluctuations in turnover, inconsistencies in input-output ratios, and repeated refund claims – to automatically identify firms with a higher likelihood of tax evasion.

This "automated audit selection" process would allow authorities to focus enforcement on high-risk cases while reducing pressure on compliant taxpayers.

Reducing reliance on LCs, promoting digital trade

The report suggests reducing dependence on traditional Letters of Credit (LCs) by introducing alternative digital payment and settlement methods. Such reforms could make international trade faster and more cost-effective.

Customs reforms and global benchmarking

Bida has also recommended improving transparency in customs valuation by integrating international price databases alongside domestic references.

To illustrate best practices, the proposals cite VNACCS – Vietnam's automated cargo clearance system – which uses real-time data and reference pricing. Under that model, goods declared within an acceptable price range are cleared automatically through a "green channel," significantly reducing delays.

Adopting similar mechanisms could streamline Bangladesh's customs procedures, cut bureaucratic complexity, and shorten clearance times, according to the proposals.

24/7 port operations to cut logistics costs

Business leaders identified limited port operating hours as a major constraint. Despite growing trade volumes, full-scale 24/7 operations are not consistently available due to restrictions in banking and customs services.

Bida has recommended round-the-clock port operations, which could help reduce congestion and lower logistics costs.

In addition, the proposals suggest allowing up to 80% of import clearance through off-dock facilities in phases, supported by regular audits and risk-based monitoring to ensure compliance.

Concerns over indiscriminate audit, AIT

Speaking to TBS, Business Initiative Leading Development Chairperson Abul Kasem Khan said even long-compliant taxpayers frequently face repeated audits, creating uncertainty and discouragement.

"We have seen cases where companies with a strong compliance record and even recognition as top taxpayers are repeatedly audited. This undermines confidence," he said.

Kasem, who was a former president of the Dhaka Chamber of Commerce and Industry, also highlighted concerns over Advance Income Tax (AIT), noting that in many cases businesses pay more tax than their actual liability, with refunds delayed.

"As a result, the effective tax rate can rise to 40-50%, putting pressure on working capital," he said, adding that excess payments should either be refunded quickly or adjusted against future tax liabilities.

NBR signals support for easing compliance

Addressing a consultative committee meeting organised by the NBR and the FBCCI last week in Dhaka, Finance Minister Amir Khosru Mahmud Chowdhury, said the government is committed to dismantling the existing regulatory barriers to doing business.

NBR Chairman Abdur Rahman Khan recently said the government is focusing not only on tax rates but also on simplifying business processes.

"Our priority is to reduce unnecessary complexities and make compliance easier so that businesses can operate more efficiently," he said at a pre-budget discussion.

Bangladesh needs a decisive push to mobilise revenue by immediately launching reform measures, accelerating automation, and gradually phasing out existing tax exemptions, said economists and policymakers at an event organised by the National Citizen Party (NCP) yesterday.

The national convention on energy, economy, human rights, reform and referendum was held at the Institution of Diploma Engineers in Dhaka.

“Many discussions were held and numerous committees formed, but we saw no meaningful progress in the revenue sector,” said M Masrur Reaz, chairman and CEO of Policy Exchange Bangladesh.

“No reforms took place during the Awami League era, and unfortunately, the interim government also failed to act. A new government is now in place and may need time, but if reforms are not launched within the next two to three months, we risk losing this opportunity again,” he added.

Reaz described the country’s economic challenges as a “four-plus-one dimension”-- four domestic weaknesses alongside one global factor.

He said the country’s key drivers of employment and growth have stalled, while economic governance had largely collapsed before August 5, marked by banking irregularities, oligarchic control in energy, and mismanagement of public spending.

He also pointed to the absence of revenue reform, failure to formalise the informal economy, and rising dependence on external debt as major concerns.

At the event, Hasnat Abdullah, lawmaker and chief organiser (Southern Region) of the NCP, said that automating tax and customs systems through cashless, paperless processes integrated with NID is now essential.

He noted that complexities in the current manual tax system discourage compliance.

“If we automate the system and integrate it with NID, under-the-table compromises can be reduced to near zero. Many European countries have been practising this for years,” he said.

AKM Waresul Karim, dean of the School of Business and Economics at North South University, said governance failures have driven stagnation in the banking sector.

“Corruption, nepotism, politicisation, and prolonged authoritarian practices have undermined institutional integrity,” he said.

Confidence in state-owned commercial banks has eroded, he noted. Citing a review of Janata Bank, he said 70 percent of its loans are non-performing. Following recent political upheaval, the boards of a number of banks were reconstituted, and a Bank Resolution Ordinance was introduced, merging five banks.

However, he criticised the provision allowing previous bank owners to reclaim ownership by repaying only 7.5 percent of government liquidity support, calling it a tactic to restore control to specific individuals.

AKM Fahim Mashroor, CEO of Bdjobs, said overall unemployment in Bangladesh remains below 4 to 5 percent, but youth unemployment is three to four times higher. Each year, about 700,000 graduates enter the job market, of whom 50 to 60 percent remain jobless.

“Unemployment is not just an economic issue-- it is a social and political one,” he said, adding that high interest rates and energy constraints may deter investment in the near term.

He suggested promoting entrepreneurship and facilitating overseas employment through government-backed loans.

Sarjis Alam, chief organiser (Northern Region) of the NCP, chaired the first panel discussion. Shams Mahmud, former president of the Dhaka Chamber of Commerce, Chartered Financial Analyst Asif Khan, and Javed Rasin, joint convener of the NCP, also spoke at the event.

Many of the worst-performing companies have outpaced market leaders in price gains in the secondary market over the past four months, as investors focus on short-term returns amid limited investment options.
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Apart from retailers, many institutional investors have not fixed any long-term investment strategy amid the liquidity crisis.

Ahead of the national election held on February 12, investors had been uncertain about the future market direction. After the election, investors' expectations regarding market stability faded as the US and Israel jointly struck Iran and waged war at the end of February.

As a result, the market outlook has become elusive, and investors remain fixated on speculative stocks in the hope of short-term gains.

This is the backdrop in which Dominage Steel Building Systems, despite a significantly negative P/E (price-to-earnings) ratio and one of its factories being shut, has continued its rally on the stock exchanges.

Dominage Steel registered a 131 per cent market price appreciation as of Thursday since January 1, while well-performing multinational company Linde BD experienced a 14.5 per cent decline during the period.

The board of Dominage Steel Building Systems last week disseminated price-sensitive information regarding the sale of their ownership stakes to Akij Resources and two individuals.

Some market operators said insiders, who were aware of the company's intention to sell ownership to the Akij conglomerate, might have played a role in the company's rally.

The rally of Dominage Steel does not reflect any fundamental strength.

Of the other non-performing companies that outperformed market leaders on the bourses, BBS Cables experienced a 30.3 per cent appreciation over the last four months.

The company distributed no dividends and reported a loss of Tk 856 million in FY25, increased from a loss of Tk 133 million in FY24. It has remained in the red in the last three quarters too.

The unjustified rally of BBS Cables, along with other non-performing companies, indicates that investors are hooked on short-term gains from speculative stocks.

Md. Ashequr Rahman, managing director of Midway Securities, said some groups had influenced the rallies of speculative stocks for short-term gains.

The financial performance of some of the companies that have seen a rally is better than that of other poor performers, but that is insignificant compared to blue-chip stocks that experienced correction.

"The absence of any new IPO is another reason why the secondary market has lost its buoyancy," Mr Rahman added.

The country's capital market has seen no new listings since March 2024.

The latest conflict between Iran and the US-Israel alliance disrupted fuel supply through the blockade of the Strait of Hormuz.

Local manufacturers said their profitability would be seriously affected due to the abrupt rise in production costs induced by fuel price hikes.

Apprehension over profit decline has been reflected in stock movements.

For example, the stock price of Unilever Consumer Care closed at Tk 2,163.6 each on April 6, which fell further to Tk 2,065.80 by Thursday.

Meanwhile, the stock price of ACI fell to Tk 193.80 each share on Thursday, which was Tk 211.6 on April 15.

Islami Bank Bangladesh PLC has posted a consolidated profit of Tk136 crore for the year ended December 2025, but the earnings were overshadowed by a staggering Tk84,615 crore provision shortfall against its classified investments, highlighting continued strain in its balance sheet.

Despite the profit, the bank's financial health remains under pressure, according to a price-sensitive disclosure filed with the Dhaka Stock Exchange (DSE).

The lender's result was largely supported by a regulatory deferral facility from Bangladesh Bank, which allowed the provision gap to be spread over 20 years under a recovery plan submitted last October.

However, key indicators point to weakening fundamentals. Net operating cash flow dropped by Tk5,107 crore in 2025, while investment recovery slowed. Deposits from banks and financial institutions also declined by Tk9,662 crore, reflecting liquidity pressure.

The bank's earnings trajectory has also remained weak, falling from Tk635 crore in 2023 to Tk108 crore in 2024 before edging up to Tk136 crore in 2025.

At the end of 2025, consolidated earnings per share stood at Tk0.85, while net asset value per share rose slightly to Tk44.52 from Tk44.36 a year earlier.

A major concern, according to banking sources, remains the bank's exposure to S Alam Group, which along with its affiliates reportedly borrowed over Tk73,000 crore almost half of the bank's total investment portfolio.

Although assets worth around Tk20,000 crore linked to the group have been attached, recovery has been slow due to weak auction response.

The bank has also skipped dividend payments for the second consecutive year and has been downgraded to the 'Z' category on the stock exchange for the first time, reflecting heightened financial stress.

Following the disclosure, the bank's share price fell over 4% to Tk33.30.

The AGM has been scheduled for 25 June, with the record date set for 21 May.

Meanwhile, management reshuffles are underway, with Managing Director Md Omar Faruk Khan sent on extended leave and Md Altaf Hossain appointed as acting MD amid ongoing regulatory oversight and restructuring efforts.

The government has authorised BRAC Bank PLC and Pubali Bank PLC to act as primary dealers (PD) for government securities for a three-year term, which will officially commence from the first working day of May this year.

The appointment was formalised by the Bangladesh Bank today (30 April) following a directive from the Finance Division of the Ministry of Finance.

With this appointment, both banks will now share the bidding obligations currently performed by 24 existing primary dealer banks in the auctions for government treasury bills and bonds.

As primary dealers, these banks are mandated to participate in auctions to help finance the government's budget deficit, ensuring a steady flow of funds through the sovereign debt market.

According to the letter from the finance ministry, the authorisation was granted under the provisions of the 'Guidelines for Enlistment and Operations of Primary Dealers in Government Securities, 2025 (Amended)'.

Islami Bank Bangladesh PLC, SBAC Bank and Standard Bank have been downgraded to the Z category for failing to declare dividends for the last two consecutive years.

According to the Dhaka Stock Exchange, brokerage firms and merchant banks have been instructed not to provide margin loans against the shares of these banks.

Following the downgrade, the share prices of the three banks fell sharply in the opening session today (30 April).

The parliament yesterday (30 April) passed two separate bills removing the maximum age limits for the post of chairmen and commissioners of the Bangladesh Securities and Exchange Commission (BSEC), as well as the chairman and members of the Insurance Development and Regulatory Authority (IDRA).

Previously, the age limits stood at 65 years for the BSEC and 67 years for the IDRA. With the passage of these amendments, the government will now be able to appoint individuals of any age to lead these two key financial regulatory bodies.

Finance Minister Amir Khosru Mahmud Chowdhury, who moved the bills, argued that the amendments were intended to make the laws more time-appropriate by allowing the recruitment of highly qualified, experienced, and skilled professionals.

He said that when the securities law was originally enacted in 1993, the average life expectancy in Bangladesh was around 57 years, whereas it now stands at 72 years. He stated that retaining the earlier age limits would prevent capable individuals from contributing effectively to the financial sector.

However, the bills faced strong resistance from opposition and independent lawmakers.

Independent lawmaker Rumeen Farhana called for the bills to be opened to public scrutiny, highlighting that retail investors suffered massive losses during the 1996 and 2010 market crashes, while over Tk1 lakh crore was allegedly siphoned off over the past 15 years.

Opposition lawmaker Akhter Hossen questioned whether the amendment was genuinely intended to find capable leaders or merely to facilitate the appointment of favoured individuals. Leader of the Opposition Shafiqur Rahman alleged that lawmakers were not given adequate time to review the documents.

Despite the opposing calls to send the bills to a standing committee for further review, the bills were ultimately passed by voice vote.

Bangladesh is set to issue its eighth government investment Sukuk worth Tk 59 billion (Tk 5,900 crore) to finance the construction and development of important bridges on rural roads under a revised project, according to an official statement.
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The seven-year “CIBRR-1 Socio-Economic Development Sukuk” will be issued under the project titled Construction of Important Bridges on Rural Roads (1st Revised). The prospectus and Shariah declaration of the Sukuk have already been finalised with approval from the Shariah Advisory Committee under the Debt Management Department.

The auction for the Sukuk will be held for the first time on May 13, 2026, using Bangladesh Bank’s in-house Shariah Securities Module (SSM) system.

According to the prospectus, Sukuk will be issued through an auction-based lease structure with a face value of Tk 59 billion (Tk 5,900 crore), maturing on May 14, 2033.

Investors will receive a total rental return of Tk 42.95 billion (Tk 4,295.20 crore) over seven years, equivalent to an annual return of 10.40 percent, payable on a semi-annual basis.

Banks and financial institutions having current or Al-Wadiah accounts with Bangladesh Bank will be eligible to participate directly in the auction. In addition, domestic and foreign individual investors, corporate bodies, investment companies, insurance companies, provident funds and deposit insurance funds may also participate through eligible banks and financial institutions maintaining accounts with Bangladesh Bank.

Investors will be able to submit bids online through the SSM system using their Sukuk Investor (SI) ID in multiples of Tk 10,000 between 10:00am and 3:00pm on May 13, 2026.

New investors must complete their SI ID registration through their respective banks by May 12, 2026.

The successful bidders will be informed of their allotted Sukuk amount through their respective accounts at 4:00pm on the auction day, the statement said.

Bangladesh government has sought extended financial and technical supports from foreign development partners to weather the economic shocks stemming from the Gulf crisis and to accelerate implementation of its election pledges, officials say.
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Formal requests for the support were despatched to a broad coalition of multilateral and bilateral lenders recently, officials from the Economic Relations Division (ERD) told the FE Saturday. The list of financiers includes the World Bank, the Asian Development Bank (ADB), Japan, the Asian Infrastructure Investment Bank (AIIB), German lender KfW, and the OPEC Fund for International Development (OFID).

The Finance Adviser to the Prime Minister, Dr Rashed Al Mahmud Titumir, sat with Bangladesh's development partners in Dhaka in the just-past last month to convince the development partners about the urgency. GeographicReference

At the meeting, some of the DPs assured of supporting the government in implementing its poll manifesto and overcome the exigencies, the ERD officials say.

The move comes as the government seeks to "weather the impact" of volatility in the Gulf region, which has significant implications for Bangladesh's energy costs and remittance inflows.

Beyond crisis management, the funding is intended to provide the fiscal space necessary to execute the socioeconomic promises laid out in the government's recent election manifesto.

"After the meeting, we have formally written to the DPs to help Bangladesh," says one official.

According to the ERD officials, the ADB and the WB have already assured of extending their budget support to Bangladesh amid the current gulf crisis.

Although the ADB earlier had assured of some US$750 million worth of budgetary support for Bangladesh within this fiscal year (FY), 2025-26, it now assured of enhancing the proposed financing to $1.0 billion following Bangladesh's request, says a senior ERD official.

The World Bank is expected to provide at least $500 million worth of budget support to help weather the Gulf crisis as well as meet the immediate needs of the newly elected government, especially for the social-safety-net programmes and reforms, he adds.

"In addition to our traditional bilateral and multilateral donors, we have already requested some non-traditional ones, including KFW, OFID, AIIB and Middle-eastern countries, to offer financial and technical supports to Bangladesh," the ERD official says.Financial

In a proactive bid to secure these commitments, Dr Rashed Al Mahmud Titumir held a high-level meeting with representatives of the development partners in Dhaka last month.

Sources privy to the discussions note that the Finance Adviser underscored the urgency of the situation, emphasizing the need for both concessional loans and technical cooperation to maintain the country's growth trajectory.

The ERD officials indicate that the requested support would be channeled into several key areas, including macroeconomic stabilization, offsetting the rising costs of fuel and commodities linked to the Gulf turmoil, advancing megaprojects and regional-connectivity initiatives in line with national development goals.

The government has also sought support in the social-safety-net programmes for ensuring the election manifesto's focus on poverty reduction and social protection, say the officials.

While the development partners have historically been supportive of Bangladesh's developmental journey, the scale of this coordinated request highlights the complexity of the current global economic climate, they add.

"The government is looking for a comprehensive partnership to not only overcome immediate hurdles but to build a more resilient Bangladesh," another ERD official says, indicating newer

"The discussions led by Dr Titumir were a crucial step in aligning our development partners with our national priorities."

The ERD is expected to engage in follow-up technical negotiations with individual lenders in the coming weeks to finalize the volumes and terms of the prospective aid packages, he adds.

Bangladesh is facing a deep economic crisis and may need to endure "two difficult years" to recover, Finance Minister Amir Khosru Mahmud Chowdhury warns.
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As such, he says, the government is likely to take measures that may not be popular.

During discussion on the motion of thanks on the President's address in parliament on Thursday, the minister said, "We may have to endure hardship for two years. The next two years will be difficult. We will have to make many decisions and steps some of which may not be popular."

Presenting what he describes as a grim picture of the economy, the finance minister said the country's tax-to-GDP ratio has fallen below 7.0 per cent, the lowest in South Asia. The poverty rate stands at 29.93 per cent, prompting him to remark: "Look at the condition we are in now in terms of the economy."

He further mentions that capital-machinery imports, which were 53 per cent during the last tenure of the Bangladesh Nationalist Party, have dropped sharply to 14.5 per cent. Private -sector credit growth has also declined to 6.0 per cent compared to 18.2 per cent in 2005-06. Default loans in the banking sector have surged to 30 per cent. "When a country's banking sector has this scale of non-performing loans, the economy almost grinds to a halt," he tells the newly elected parliament after a political changeover. Politics

The custodian of exchequer further notes that the government currently provides annual subsidies amounting to Tk 360 billion, with an additional Tk 200-300 billion required this year.

External overdue payments stand at US$508 million for fuel imports and $737 million for gas.

The deposed administration has been accused of widespread "corruption, looting and money laundering" across the banking sector and other industries during its one-and-a-half-decade rule, he points out. A white paper was prepared under the interim government led by Muhammad Yunus to assess the state of the economy.

In addition, he informs the House, the Anti-Corruption Commission has filed cases against several industrial groups, Sheikh Hasina, and members of her family on allegations that include money laundering. Measures such as asset seizures and freezing of bank accounts have also been taken.

Despite these efforts, the economy has yet to recover during the post-uprising interim period.

The situation worsened further after the outbreak of the Iran War on February 28, which put additional pressure on sectors such as energy under the new BNP-led government.

Addressing the parliament, the finance minister says the economy has been pushed to such a low level that only tough reforms, deregulation, and structural changes could restore stability. Newspapers

He stresses that lifting the economy from its current situation would require decisive and, at times, unpopular policy measures over the coming years.

The vast majority of Bangladesh’s workforce remains in marginal conditions, outside the reach of formal labour protections, experts warned yesterday, calling for a shift in policy focus beyond the garment sector.

Around 85 percent of workers are engaged in the informal sector with little regulation or protection, Syed Sultan Uddin Ahmmed, former chairman of the Labour Reform Commission, said at a May Day discussion in Dhaka.

The programme, held at the Economics Reporters Forum office, was organised by the Network for People’s Action (NPA), a newly formed political party.

At the event, Ahmmed also noted that the dominance of ready-made garments (RMG) in national and international labour discourse obscures a far wider problem.

“As an export-oriented industry, the RMG sector remains at the centre of national and international discussion. While this sector is important, it should not overshadow the broader reality,” he said.

A stronger industrial base and labour movement in large sectors could eventually benefit workers in other areas, he said, calling for a more inclusive labour perspective.

“Sanitation workers, day labourers and informal workers continue to live in precarious conditions,” said the labour policy expert.

He added, “We celebrate long holidays, but for day labourers, even a few days without work can mean going without food… Yet there is no universal social security system to protect them.”

Ahmmed also criticised existing social protection measures as charity-driven rather than rights-based. “The fact that a single rainy day can leave a labourer’s family without food rarely enters policy thinking.”

Echoing the same, Prof Selim Raihan, executive director of the South Asian Network on Economic Modeling (Sanem), said the garment sector’s export growth had not translated into proportional gains for workers.

“Productivity has increased over the decades, yet real wages have lagged. That disconnect tells us something fundamental about the structure of our growth,” he said.

Raihan also pointed to a persistent narrative that stronger labour rights would hurt competitiveness. “This (narrative) has often been used to discourage workers from organising or demanding more.”

He added that labour discussions in Bangladesh too often stop at minimum standards.

“We rarely move beyond ensuring the bare minimum to discussing living wages or broader social protections,” he said.

Among others, Taslima Akhter, president of the Bangladesh Garment Sramik Samhati, also spoke at the event.

India and Bangladesh are taking steps to normalise bilateral relations by moving towards the full resumption of visa services, following a period of strained ties and restricted travel.

Bangladesh has already resumed issuing visas to Indian citizens across all categories, including tourism, business and medical travel, while India is aiming for a gradual restart of its visa operations over the coming weeks, says the Indian Express.

Indian visa services for Bangladeshi nationals are currently operating at 15–20% of their pre-December 2025 capacity, with priority given to medical cases and family emergencies. In contrast, Bangladesh has issued more than 13,000 visas to Indians since restoring operations around 20 February 2026.

The move follows a period of political upheaval after the August 2024 ouster of former prime minister Sheikh Hasina. Relations are being recalibrated under the new government of Prime Minister Tarique Rahman, whose swearing-in in February 2026 was attended by an Indian delegation.

Travel between the two countries had declined sharply amid tensions and visa curbs. The number of Bangladeshi visitors to India fell from 2.12 million in 2023 to 470,000 in 2025.

Officials in both countries have indicated that efforts to restore visa services are part of broader attempts to rebuild cooperation, including through high-level political engagement and closer economic and energy ties.

India recently transported diesel to Bangladesh to help ease energy shortages linked to the war in West Asia.

The expected arrival of India's new High Commissioner to Bangladesh, Dinesh Trivedi, is seen as a step that could facilitate the return to full-scale visa operations.

The Bangladesh Bank (BB) has waived the requirement to maintain provisions against funds of banks and non-bank financial institutions stuck in five merging shariah-based lenders.

The decision was taken at a recent internal meeting of the central bank, officials familiar with the matter said, at a time when more than Tk 15,000 crore remain tied up in the troubled institutions.

As these funds have not been recovered for a prolonged period, the regulator has lifted the requirement to maintain provisions against them, they added.

The five merging banks are First Security Islami Bank, Global Islami Bank, Union Bank, Social Islami Bank, and Exim Bank. They were brought under the merger process by the interim government through the Bank Regulation Ordinance, 2025.

Around Tk 10,000 crore of the stuck funds belong to Islami Bank Bangladesh alone.

Banks are required to set aside 0.5-5 percent of operating profit against general category loans, rising to 20 percent for substandard loans, 50 percent for doubtful loans, and 100 percent for bad or loss category loans.

Initially, the BB’s bank supervision departments and the financial institutions and markets department had instructed banks to maintain provisions against funds stuck in the troubled banks.

The Bank Resolution Department (BRD) later clarified that such provisioning would not be required, as the funds fall under a specific resolution framework.

“The funds are not considered a total loss. Banks may receive shares after a certain period or recover the money with profit after five years,” a central bank official said, adding that the BRD has provided assurances in this regard.

Affected institutions are expected to either recover the money directly or receive equivalent value through long-term fixed deposits or shares, said the official.

The five banks were previously controlled by politically connected figures. During the Awami League-led government, Exim Bank was under Nazrul Islam Mazumder, former chairman of the Bangladesh Association of Banks. The other four were controlled by family members of Mohammed Saiful Alam, chairman of S Alam Group.

Allegations of widespread irregularities and fund embezzlement during that period led to severe liquidity crises, leaving the banks unable to repay depositors and institutional lenders.

As of September 2024, the total investment or loans of those five banks stood at Tk 1,92,787 crore, while total deposits stood at Tk 1,58,918 crore, BB data show.

Japanese Prime Minister Sanae Takaichi vowed on Saturday to strengthen bilateral ties with Vietnam, with energy cooperation and critical minerals at the forefront, during a meeting with Vietnamese Prime Minister Le Minh Hung.

The pledge came as new Japanese investment in Vietnam fell about 75% year-on-year to $233 million in the first quarter, even as bilateral trade rose 12.3% to $13.7 billion over the same period, according to Vietnamese government and customs data.

The two leaders discussed ways to deepen the Comprehensive Strategic Partnership established in 2023, focusing on energy, critical minerals, artificial intelligence, semiconductors and space.

"The two sides identified economic security as a new priority area for bilateral cooperation," Takaichi told reporters after the meeting.

"With regard to critical minerals... both sides agreed to strengthen close coordination to ensure stable supplies and reinforce supply chains," she added.

In a joint move, Vietnam and Japan signed six agreements encompassing infrastructure, climate action, agriculture, technology, digitalisation and space cooperation.

Japan remains one of Vietnam's largest foreign investors, with many Japanese multinationals operating large manufacturing facilities in the country.

Vietnam has been seeking support from Japan and other countries for oil supplies as conflict in the Middle East drives prices higher and disrupts supply chains.

Under the $10 billion Power Asia Initiative to support Asian countries' energy self-reliance, Japan will assist in arranging crude oil supplies for Vietnam's Nghi Son Refinery and Petrochemical Complex, Hung said.

Takaichi was also set to meet Vietnam's Party Secretary and President To Lam on Saturday afternoon and deliver a keynote speech at Vietnam National University, marking a decade since former Prime Minister Shinzo Abe introduced Japan's "Free and Open Indo-Pacific" strategy.

Her address is expected to emphasise autonomy and resilience for regional nations.

Vietnam supports Japan's regional initiatives, including the Free and Open Indo-Pacific Vision, aligned with the ASEAN Outlook on the Indo-Pacific, in accordance with international law and "contributing positively to peace, stability, cooperation and development in the region and beyond," Hung said.

Russia's Deputy Prime Minister Alexander Novak said on Thursday that the OPEC+ group of leading oil producers would continue working together despite the departure of the United Arab Emirates, Russian news agencies reported.

According to the reports, Novak said he did not expect an oil price war to emerge following the UAE's exit given a global oil deficit.

The UAE said on Tuesday it was quitting OPEC, dealing a blow to the oil producers' group as an unprecedented energy crisis triggered by the Iran war exposes discord among Gulf nations.

The UAE was the fourth-largest producer in OPEC+, which comprises OPEC and its allies, while Russia is second, behind Saudi Arabia.

"In the current situation, it is hard to talk about a price war when there is a shortage in the market. What we are seeing instead is the deepest crisis in the industry," Novak was quoted as saying by Interfax news agency.

"Large volumes of oil are not reaching the market today, while demand significantly exceeds supply. This has created an imbalance due to serious logistical disruptions, including the situation in the Middle East," Novak said according to Interfax.

Novak also reiterated that Russia will remain in OPEC+, which was formed in 2016.

Bangladesh cited gaps in readiness, incomplete core reforms, and economic fallout from the Iran war as reasons for seeking an extension of the transition period for graduation from the least developed country (LDC) category by three more years at the public hearing of the UNCDP on April 29.

Commerce Minister Khandakar Abdul Muktadir attended the virtual hearing with Chair of the United Nations Committee for Development Policy (UNCDP) José Antonio Ocampo, Additional Commerce Secretary Md Abdur Rahim Khan told The Daily Star.

Khan also said the UNCDP wanted to know the reasons why Bangladesh is seeking an extension of the transition period for LDC graduation.

Bangladesh mainly cited the country’s gap in preparedness, lower implementation of core reforms, and the fallout of the US-Israel war on Iran as the main reasons for the requested extension, the additional secretary said.

Apart from these three main reasons, Bangladesh also mentioned vulnerabilities in the financial sector, weaknesses in the banking system, an export slowdown due to volatile global supply chains, high interest rates, and an uncertain business and investment climate in support of the extension, he said.

Bangladesh is scheduled to graduate from LDC status on November 24 this year, but it has sought to delay the transition until 2029, citing domestic and external economic pressures.

The UNCDP will prepare a report on Bangladesh’s hearing and submit its recommendations to the United Nations Economic and Social Council (ECOSOC) in June.

The ECOSOC will then forward its assessment to the United Nations General Assembly (UNGA), scheduled to meet in September, where a vote will finalise the decision on the deferment.

Earlier, on February 19, the newly elected government sent a letter to the chair of the UNCDP, requesting that the preparatory period be extended until November 24, 2029, mentioning that more time is needed to ensure readiness.

Following Bangladesh’s request, the UNCDP discussed the issue at its annual meeting in February and agreed on a process to assess the proposal.

The business community of the country has also been requesting both the incumbent government and the immediate past interim government to delay the LDC graduation, as they need more time to prepare adequately. They said higher bank interest rates and political transition in the country, following massive unrest and political upheaval, have also affected the economy significantly.

A UN assessment report in March stated that Bangladesh still faces serious gaps in its readiness for graduation, as its economy continues to be affected by both domestic and international shocks, including the US-Israel war on Iran.

The report highlighted a series of disruptions between 2017 and 2026, including climate vulnerability, the Rohingya crisis, a prolonged macroeconomic slowdown that predated the regime change, the Covid-19 pandemic, the Russia-Ukraine war, inflation, and pressure on the balance of payments.

It also noted that while Bangladesh meets all three criteria for graduation, significant risks persist, including the loss of trade preferences, fiscal and financial vulnerabilities, and weak institutional coordination.

Rising import costs for fossil fuels have created operational constraints, with gas shortages worsening due to the Middle East conflict, the report said.

Economic growth slowed from 7.1 percent in FY22 to 3.5 percent in FY25, weakening momentum ahead of graduation.

Inflation has outpaced wages, pushing millions into hardship and vulnerability.

A recent UN Trade and Development assessment estimated that Bangladesh could lose more than $17.5 billion in annual exports after graduation.

Rice supply is expected to fall this year as farmers cut planting acreage across Asia because of fertiliser shortages and soaring fuel costs ​from the Iran war, with an emerging El Nino also set to squeeze output of the world’s most consumed staple.

Rice is central to global food security, ‌and even modest supply disruptions can ripple through countries, lifting prices and straining household budgets, particularly among price-sensitive consumers in Asia and Africa. The UN Food and Agriculture Organization in April forecast rice output would expand by 2 percent to a record high in 2025/26.

The effects of the Iran war are impacting farmers in top exporters Thailand and Vietnam as well as the import-reliant Philippines and Indonesia, growers and traders said. The war has cut fuel and fertiliser ​flows through the Strait of Hormuz, a key chokepoint that connects the Gulf to global markets.

Rice is central to global food security, ‌and even modest supply disruptions can ripple through countries, lifting prices and straining household budgets, particularly among price-sensitive consumers in Asia and Africa
Southeast Asia’s mainly smallholder farmers also face mounting stress as the El Nino ​weather phenomenon is set to usher in hotter, drier conditions for the region in the second half of the year.

“Farmers have already started planting rice in some countries and are using fewer inputs because prices have gone up,” said Maximo Torero, chief economist at the UN FAO. “We are going to see a tighter global supply situation ​in the second half of the year and early next year.”

In 2008, export curbs by key suppliers more than doubled prices to about $1,000 a metric ton , triggering unrest in several countries. More recently, ​supply tightness in 2022 to 2023, exacerbated by India’s export restrictions, lifted prices and prompted panic buying.

SUPPLY-CHAIN DISRUPTION

Rice shipments are already facing supply-chain bottlenecks.

“Logistics have become a nightmare, especially in Asia as there is shortage of polypropylene bags, limited truck availability to move rice to ports and shipping itself has been disrupted,” said a Singapore-based trader at a top global rice merchant, who asked to remain unidentified as they are not authorized to speak ​to media.

While fertiliser shortages and dryness are already curbing yields of smaller crops being harvested in Southeast Asia, the next crop will likely face a bigger reduction.

India, Thailand and the Philippines plant ​their main crops in June and July, while Vietnam and Indonesia are now sowing their second-season crops.

Most Asian producers grow two or three rice crops a year.

FARMERS CUT PLANTING

Sripai Kaew-Eam, a 60-year-old farmer in Thailand’s ‌Chai Nat province about 151 km (94 miles) north of Bangkok, said high fertiliser and fuel prices have pushed production costs to about 6,000 baht ($183.99) per rai (0.4 acre), from around 4,500 to 5,000 baht for the previous crop, while the price she receives for the unhusked rice she harvests is about 6,200 baht per metric ton.

Fertiliser prices have risen to 1,000 to 1,200 baht per bag, from 850 baht, forcing her to cut her use by half.

“Fertiliser prices are high, fuel prices are high,” she said.

The Philippines, the world’s biggest rice importer, faces a similar situation.

“Some farmers are now saying they may ​not plant or will reduce fertiliser use, which ​would inevitably cut production,” said Arze Glipo, executive director of the Integrated Rural Development Foundation.

The country’s output could fall by as much as 6 million tons from its typical 19 million to 20 million.

“That would leave the Philippines in a precarious position, as imports are also uncertain due to export restrictions, making it extremely difficult to ​cover any production shortfall,” Glipo said. In Indonesia, fertiliser supply is not a constraint but the El Nino is expected to curb output.

Indonesia’s statistics ​bureau estimates the rice harvest area in the March to May period will shrink by 10.6 percent to 3.85 million hectares (9.5 million acres), while unhusked rice production will drop 11.12 percent to 20.68 million tons.

Despite the supply worries, the world has ample rice inventories following years of bumper output, with India, the world’s biggest exporter, holding a record 42 million tons or about one-fifth of global stockpiles, according to US Department of Agriculture data, cushioning any drop in ​global production.

Most rice grade prices are currently steady but will likely rise even if the Hormuz situation were resolved ​immediately, the FAO’s Torero said.

Opening the strait soon would avoid a major supply issue but “if we don’t reopen this in the next two to three weeks, the situation is going to get pretty serious,” he said.

More than half of the country’s scheduled banks will not be able to pay dividends this year, as rising bad loans and provisioning shortfalls continue to erode their financial strength.

This follows a dividend payout policy introduced by the Bangladesh Bank (BB) in March last year, which has tightened eligibility rules for profit distribution.

Under the policy, banks using provisioning deferrals are not allowed to issue dividends from 2024. From 2025 onwards, commercial lenders with non-performing loans (NPLs) above 10 percent of their total loan portfolio are also disqualified, regardless of profitability.

As of December last year, 29 banks, both state-owned and private, had double-digit NPL ratios. This accounts for nearly half of all scheduled banks. Of them, 17 listed lenders will be unable to pay dividends this year solely due to high defaulted loans.

Banks are required to finalise their balance sheets by April 30 under regulatory rules, and many have already announced dividend plans.

However, the central bank has withheld approval for more than 20 banks due to high levels of bad loans and the use of deferral facilities to meet provisioning requirements.

Some lenders even met the BB governor seeking approval, but failed to secure permission.

All state-owned banks are ineligible to pay dividends because of their high bad loan ratios. These include Krishi Bank, Agrani Bank, Janata Bank, Sonali Bank, Rupali Bank, Rajshahi Krishi Unnayan Bank, Probashi Kallyan Bank, BASIC Bank and Bangladesh Development Bank.

A large number of private commercial banks have also failed to qualify.

These include AB Bank, Modhumoti Bank, NRBC Bank, Al-Arafah Islami Bank, Standard Bank, One Bank, IFIC Bank, Islami Bank Bangladesh, ICB Islamic Bank, NRB Bank, Mercantile Bank, Global Islami Bank, EXIM Bank, First Security Islami Bank, Social Islami Bank, Union Bank, SBAC Bank, Padma Bank, United Commercial Bank, Shimanto Bank, National Bank, Premier Bank, Meghna Bank, Bangladesh Commerce Bank and Citizens Bank.

They have been disqualified due to elevated bad loans and reliance on provisioning deferral facilities. Some of these banks are still seeking approval to declare at least stock dividends and are continuing discussions with the central bank.

Tarek Reaz Khan, managing director and chief executive of NRB Bank PLC, said the bank will not be able to declare a dividend this year due to the BB policy.

“We are reducing our provisioning shortfall, and other financial indicators of the bank are improving,” he added.

Sharif Zahir, chairman of United Commercial Bank (UCB), said the bank’s financial position is improving.

“We submitted a three-year plan to the central bank and are working in line with it. However, we are still unable to pay dividends this year,” he said.

Md Touhidul Alam Khan, managing director of NRBC Bank, said the lender has improved across several indicators, including governance, but is unable to pay dividends due to the use of provisioning deferral facilities.

As per the BB rules, a bank may only pay cash dividends from the net profit of the relevant financial year and cannot use accumulated profits. Even then, payouts are capped at 30 percent of paid-up capital or 50 percent of net profit, whichever is lower.

Despite the restrictions, a small group of listed banks have declared dividends.

These include City Bank, BRAC Bank, Pubali Bank, Dhaka Bank, Uttara Bank, Eastern Bank, Prime Bank, NCC Bank, Dutch-Bangla Bank, Mutual Trust Bank, Bank Asia, Jamuna Bank, Shahjalal Islami Bank, Southeast Bank, Trust Bank and Midland Bank.

Outside of the listed category, Community Bank and Bengal Commercial Bank have declared dividends.