Bangladesh and the European Union (EU) have expressed a renewed commitment to deepening their long-standing partnership.

The fifth round of Bangladesh-EU Diplomatic Consultations was held today (29 April) after a gap of nearly five years, according to a press statement.

The consultations were co-chaired by Foreign Secretary Asad Alam Siam and Erik Kurzweil, managing director for Asia Pacific at the European External Action Service.

The meeting reviewed Bangladesh-EU relations and explored cooperation in priority sectors, with Dhaka emphasising a forward-looking partnership in line with evolving strategic and economic realities, according to the statement.

The discussions followed the recent initialling of the Partnership and Cooperation Agreement (PCA), which both sides expect will provide a structured framework for future cooperation once internal processes are finalised.

The EU acknowledged Bangladesh's February 2026 parliamentary elections, referring to the final report of its Election Observation Mission. The two sides also exchanged views on democratic governance, human rights and the rule of law.

According to the statement, the new government, formed with a public mandate, seeks to bring fresh momentum to bilateral ties and realise untapped potential.

Bangladesh highlighted the importance of preferential market access to sustain trade ties and outlined interest in future arrangements, including a possible Free Trade Agreement and an Investment Protection Agreement.

Discussions also covered cooperation in research and innovation, with Bangladesh expressing interest in broader participation in Horizon Europe and joint initiatives on knowledge exchange, technology transfer and capacity building.

Photo: Courtesy
Photo: Courtesy

On migration, Bangladesh highlighted progress in labour sector reforms and stressed the importance of expanding safe and regular migration pathways. Both sides also emphasised cooperation to combat human trafficking and irregular migration.

On climate change, Bangladesh reiterated its vulnerabilities and stressed the need for enhanced access to climate finance, technology transfer and support for adaptation and resilience, including under initiatives such as the EU's Global Gateway.

The two sides also exchanged views on regional and global developments, including the Middle East crisis, and reaffirmed their commitment to multilateralism and a rules-based international order. Bangladesh reiterated the need for sustained international support to resolve the Rohingya crisis.

Both sides underscored the importance of holding regular consultations to fully harness the potential of Bangladesh-EU relations, the statement added.

Commerce Minister Khandakar Abdul Muktadir yesterday (29 April) called for bringing the gold trade under the formal economy, asserting that the jewellery sector holds untapped export potential worth billions of dollars for Bangladesh.

"People think the gold business is part of a black economy. I will not get into the black-and-white debate; what we want is the entire sector to become part of the visible economy," he said while speaking at a consultative committee meeting of the National Board of Revenue (NBR) held at a city hotel.

Pointing to India's $52 billion annual earnings from gold jewellery exports, Muktadir said Bangladesh possesses craftsmen of comparable skills, yet the country has little to show for it. "Bangladesh should be earning at least $12-14 billion from this sector, but that is simply not happening."

To unlock the sector's potential and generate export revenue, he stressed the need to upgrade laboratory facilities, modernise jewellery designs, and overhaul government policies to align with contemporary market demands.

The minister also identified the energy crisis and high interest rates on bank loans as major impediments to doing business, cautioning that failure to improve the tax-to-GDP ratio will significantly constrain the country's economic momentum.

He called on the business community to shift their mindset towards tax compliance and contribute meaningfully to national development.

Earlier in the meeting, the Federation of Bangladesh Chambers of Commerce and Industry proposed raising the tax-free income ceiling to Tk5 lakh for general taxpayers and Tk5.5 lakh for women in the upcoming budget, while also recommending capping the highest tax rate at 25 percent.

The apex trade body further demanded an increase in the Export Development Fund beyond its current $7 billion limit and sought budgetary support for the implementation of the 'One District, One Product (ODOP)' programme.

Visa shares jumped 5% in premarket trading on Wednesday after the payments-processing company beat estimates for second-quarter profit and lifted expectations for full-year earnings, as consumer spending remained strong.

Payments volume showed continued growth as consumers remained resilient in the quarter, even as escalations in the Middle East worsened economic uncertainty.

CEO Ryan McInerney said in a post-earnings call that Visa was closely monitoring the situation in the region. The company said several factors would offset weakness in cross-border travel, such as stronger US-bound demand linked to the FIFA World Cup and higher commercial travel volumes.

Cross-border payments, viewed as a real-time gauge of global trade and travel because of Visa's scale, are closely monitored by analysts and economists. The company's cross-border volume in the second quarter rose 12% on a constant-dollar basis, compared with 13% a year earlier.

"There's a lot to be impressed by in Visa's print, particularly in the context of investor concerns going in that cross-border growth would dramatically slow in April," J.P. Morgan analysts said in a note.

Shares of the company have lost about 12% so far in 2026, lagging behind the broader S&P 500 index, but still outperforming American Express.

"Visa posted its strongest growth profile in years supported by multiple self-reinforcing levers while doing well to articulate upside potential from agentic commerce and stablecoins," TD Cowen analysts said in a note.

The company's board also authorised a new $20 billion multi-year share repurchase programme.

Visa is investing in organic growth and acquisitions, and the share repurchase shows the company's "ability to have a balanced capital allocation strategy where we return excess free cash flow to clients," finance chief Chris Suh said in an interview with Reuters.

Indian consumer goods maker AWL Agri Business is grappling with a roughly 20% surge in some crude-linked input costs as the Middle East conflict drives up prices for fuel, chemicals and packaging materials, its CEO said.

The pressures reflect a broader industry trend, with peers such as bottled water maker Bisleri and Dove soapmaker Hindustan Unilever raising prices to counter higher conflict-linked input costs.

"Costs have gone up for us in terms of chemicals, packing material and coal, so that is something which remains a cause of concern even today," Shrikant Kanhere, AWL's managing director and CEO, told Reuters in an interview.

AWL, home of brands including Fortune cooking oil and Kohinoor rice, is adjusting prices in line with market movements, absorbing part of the increase while passing the rest on to consumers, Kanhere said, without giving details.

Input costs for some crude-linked materials have risen by about 20% since the conflict began, translating into a cost impact of roughly 25 to 50 basis points, he added.

Global oil prices have surged amid fears of supply disruptions. Brent crude has climbed from the low $70s a barrel before the Middle East conflict to above $110, market data show.

The company, which is cutting packaging and fuel use at its plants to limit the hit to profits, expects per-tonne margins to be broadly stable in fiscal 2027.

AWL is also expanding distribution and investing heavily in online channels and large-format grocers, which together posted nearly 50% growth last year, in a push to scale up volumes.

Kanhere forecast sales volume growth of 8% to 9% in fiscal 2027, nearly double last year's pace, with edible oils growing at a mid-single-digit rate and foods posting double-digit growth.

Lending growth to euro zone ​businesses picked up in ‌March, European Central Bank data showed on Wednesday, ​even as the ​Iran war depressed economic ⁠sentiment and pushed ​up energy costs.

Bank credit ​to businesses rose by 3.2% last month, a slight ​acceleration from the ​3.0% in February, while loan growth ‌to ⁠households was steady at 3.0%.

The M3 measure of money circulating ​in the ​euro ⁠zone, often an indicator of ​future activity, accelerated ​to ⁠3.2% from 3.0%, above expectations for 3.1% ⁠growth ​in a Reuters ​poll of analysts.

Bangladesh’s business climate is constrained by regulatory bottlenecks, policy inconsistency, weak trust, and institutional inefficiencies, undermining both investment potential and long-term investor confidence, analysts and top business leaders said today.

They made the remark at a dialogue on the investment climate and the upcoming national budget, organised by the Metropolitan Chamber of Commerce & Industry, Dhaka (MCCI), at its auditorium at Police Plaza in the capital.

At the event, M Masrur Reaz, chairman and CEO of Policy Exchange Bangladesh, said private investment has fallen, while foreign direct investment remains below 1 percent of GDP, far behind regional competitors.

“This slowdown comes at a critical juncture. With ambitions of reaching a $1 trillion economy and creating millions of jobs, the government’s targets hinge almost entirely on increased investment,” he said.

“The real challenge is not competition but market entry itself, as firms must be prepared for a decades-long commitment given operational hurdles—from licensing delays to compliance burdens—that can deter even established players,” said Zinnia Huq, chief financial officer of Unilever Bangladesh.

Bangladesh’s struggle to attract foreign direct investment (FDI) stems largely from a lack of trust and policy predictability, said Nuria Lopez, chairperson of the European Union Chamber of Commerce in Bangladesh.

She noted that despite the country’s strong potential, foreign investors remain hesitant due to an unfavourable business environment and the absence of a clear, consistent government vision.

“The root problem is that Bangladesh does not have the trust of investors,” she said, adding that policy inconsistency and regulatory uncertainty continue to undermine confidence.

Lopez pointed to growing concerns over Bangladesh’s future market access, particularly in the European Union, as the country approaches graduation from least developed country (LDC) status.

Unlike regional competitors such as Vietnam and India, Bangladesh has yet to secure effective free trade agreements, leaving investors unsure about long-term export prospects, she said.

Taxation is another major concern, she said, noting that compliant firms—especially multinationals—often bear a disproportionate burden, while others remain outside the tax net.

“This creates an uneven playing field and discourages new investment,” she added.

Barrister Margub Kabir of Margub Kabir and Associates emphasised that trust—central to any investment decision—rests heavily on how disputes are resolved.

“Bangladesh’s persistent weakness in contract enforcement, once ranked among the lowest globally, reflects a slow and overburdened judicial system,” he said.

Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association, said efforts to improve the business environment must begin with fixing core infrastructure.

Farooq Ahmed, secretary general of the MCCI; Sumitra Kumar Mutsuddi, head of corporate at BSRM; and Sumaiya T Ahmed, head of sustainability at Pran-RFL Group, also addressed the event, among others.

Bangladesh's investment climate is being vitiated by a mix of bureaucratic delays, policy uncertainty and rising business costs, making it harder for both local and foreign investors to expand operations and create jobs.

Experts say unless these longstanding barriers are addressed quickly, the country risks losing competitiveness and missing major investment opportunities.

Policy Exchange Bangladesh has identified eight major obstacles, with bureaucratic complexity and a restrictive regulatory framework topping the list.

Energy shortages, infrastructure bottlenecks, high tax pressure, weak institutional coordination and the absence of a clear investment strategy were also cited as major concerns at a policy dialogue in the capital on Wednesday.

The Metropolitan Chamber of Commerce and Industry (MCCI) and Policy Exchange Bangladesh jointly organised the meeting.

Policy Exchange Bangladesh Chairman and CEO Dr M Masrur Reaz presented the keynote paper titled "Improving the Investment Climate: Why It's Critical for New Government Priorities and the Upcoming National Budget."

In his presentation, Masrur Reaz said the country also faces the absence of a coordinated domestic and foreign investment strategy, which continues to weaken investor confidence. Newspapersubscriptions

He identified additional barriers including the lack of structured investment promotion, a gap between political commitments and implementation, and weak coordination between the public and private sectors.

He also pointed to limited coordination between the Prime Minister's Office and various ministries, the absence of diversified competitive sectors, leaving the economy heavily dependent on only five key sectors, and inadequate post-investment support or aftercare services.

Against this backdrop, Policy Exchange proposed a set of immediate reforms to strengthen investor confidence.

Masrur Reaz said the government can pursue seven priority reforms. Countrypolitics overview

These include formulating a comprehensive national investment policy, simplifying business registration procedures, addressing infrastructure and energy constraints, ensuring efficient use of economic zones, developing skilled human resources, promoting green investment, and establishing a modern legal framework for contract enforcement and dispute resolution.

BGMEA President Md Mahmud Hasan Khan attended the event as special guest, while EuroCham Chairperson Nuria López, corporate lawyer Barrister Margub Kabir, and Zinnia Huq, Chief Financial Officer (CFO) of Unilever Bangladesh, participated as panel speakers.

EuroCham Chairperson Nuria López said the absence of a free trade agreement (FTA) with the European Union, Bangladesh's largest export destination, is already affecting investor confidence.

"Do we have a free trade agreement with our major customer at this moment-the European Union? No," she said, noting that countries such as Vietnam and India have already secured similar agreements.

She warned that without preferential access to the EU market, Bangladesh risks losing competitiveness to regional peers offering more predictable trade frameworks.

"We need to have, we must have, we must start right now an FTA," López said. "If we don't have free trade access to our largest market, we don't have a horizon to invest." Economicanalysis reports

She also said uncertainty over future market access is influencing investment decisions.

"I have recently started a new business in the agro-processing sector, but I am uncertain about the future. I do not know whether I will be able to export to Europe on equal terms with competitors from countries that already enjoy free market access," she said.

López stressed that predictability is essential for attracting long-term investment, adding that Bangladesh currently lacks it.

"We don't have predictability. We don't know what's going to happen in the future," she said, questioning whether there is a clear and investor-friendly policy direction.

She linked the urgency of an EU FTA to Bangladesh's broader challenge in attracting foreign direct investment (FDI), saying policy uncertainty continues to undermine investor trust.

Addressing the event as special guest, BGMEA President Md Mahmud Hasan Khan said Bangladesh should expand export markets through bilateral agreements with countries such as South Africa, Brazil and Turkey.

He noted that around US$8 billion in new opportunities have emerged in the ready-made garment sector, with further potential for expansion. Bangladeshmarket analysis

However, he stressed that high tariffs in these markets make such agreements necessary.

"We are discussing this matter with the government," he said.

He also identified energy shortages as the most critical challenge for businesses.

"For entrepreneurs, energy is a greater concern than financial constraints," he said, adding that without resolving energy and infrastructure bottlenecks, financial support would have limited impact.

Unilever Bangladesh CFO Zinnia Huq said business registration and documentation processes in Bangladesh are extremely slow and time-consuming.

She pointed to weak coordination among government agencies, which reduces efficiency and delays business operations.

Despite a double taxation avoidance treaty, she said prior approval from the National Board of Revenue (NBR) is still required for dividend remittance, making the process unnecessarily complex. She also highlighted a lack of transparency in audit procedures.

Barrister Margub Kabir said dispute resolution is central to investor confidence, but Bangladesh continues to struggle with a slow judicial system.

He cited the example of a Japanese company operating in Bangladesh for 25 years, while a contractual dispute dating back to 2018 remains unresolved.

"There is no lack of laws in Bangladesh; the issue is making them simpler and the process faster," he said.

Kabir added that foreign investors generally prefer arbitration to avoid lengthy court proceedings. However, even after arbitration awards, enforcement through courts faces similar delays.

He called for specialised commercial courts, faster enforcement mechanisms, and judges with commercial expertise to ensure timely resolution of disputes.

MCCI Secretary General Farooq Ahmed delivered the welcome address.

Bangladesh’s exports are order-based and free of overcapacity, Commerce Minister Khandakar Abdul Muktadir said yesterday amid an ongoing US investigation into forced labour and surplus production across 60 countries, including Bangladesh.

Speaking at a luncheon meeting on US-Bangladesh partnership hosted by the American Chamber of Commerce (AmCham) at the Sheraton in Dhaka, he also said Bangladesh has made substantial progress regarding labour rights.

The minister said Bangladesh’s exports are driven by demand. Particularly, the garment industry produces strictly against international orders. “This is indicative of global demand, rather than excess capacity.”

He pointed out that many factories are currently running below capacity due to energy and infrastructure constraints.

On forced labour, the minister mentioned that Bangladesh has enacted reforms in workplace safety and labour rights in partnership with the International Labour Organization (ILO) and other partners, establishing one of the most rigorously regulated and secure garment sectors in the world.

Stating that Bangladesh is committed to maintaining international labour standards, he said the government believes that the most constructive course of action to that end is continuing engagement and collaboration.

On partnership with the US, the minister said the government is confident that the bilateral relationship will continue to grow through trade, increased investment, technology collaboration, and continued dialogue.

He said the government is diversifying its export base by incorporating sectors such as pharmaceuticals, leather, agro-products, and light engineering, in addition to a booming ICT sector.

The minister stated that improving market access is imperative as the country is set to graduate from the least developed country status. “We look forward to continued US assistance to guarantee a seamless transition and maintain our global competitiveness.”

He noted that although Bangladesh has established robust manufacturing capabilities and exports pharmaceuticals to more than 150 countries, the entry into the US market is still restricted by the intricate, expensive, and time-consuming regulatory processes.

“We are of the opinion that there is potential to improve the coordination between pertinent authorities, expedite the approval process, and simplify procedures,” he said.

Also speaking at the event, AmCham President Syed Ershad Ahmed said in today’s shifting global economic environment, the Bangladesh–US partnership remains vital for both growth and resilience.

The partnership plays a strategic role in sustaining export competitiveness, ensuring essential imports, and strengthening broader economic and industrial development, he added.

Bangladesh exported roughly $9.5 billion in goods to the US in 2025, with the garment sector alone accounting for $8.2 billion, capturing over 10 percent of the US apparel market, he said.

During the same period, the country imported about $2.3 billion from the US, primarily cotton and agricultural products.

Muktadir, meanwhile, stated that US foreign direct investment in Bangladesh rose from $193 million in fiscal year 2019-20 (FY20) to $426 million in FY22, before falling sharply to $89 million in FY24 and partially recovering to $132 million in FY25.

On a separate matter, he informed that the government may recruit foreign companies for loading and unloading at the Chattogram port to increase efficiency.

The minister also said for easing the business, the government will launch provisional permission for launching a business. Currently, it takes many months and more than 25 signatures to obtain the permission for the business entrepreneurs to start a business in Bangladesh.

Once an entrepreneur starts with the provisional permission, he can manage the original permission gradually in one to two months, he added.

Private investors aiming to launch Bangladesh's first privately funded submarine cable face mounting delays from inter-ministerial red tape, despite sinking $53 million (equivalent to Tk650 crore) into preparatory work.

The Bangladesh Private Cable System consortium – Summit Communications, CdNet Communications, and Metacore Subcom Ltd – awaits critical no-objection clearances from the foreign affairs and home affairs ministries, and the National Security Intelligence.

This bottleneck halts cable-laying vessels from entering Bangladesh's territorial waters.

The project links to the UMO Cable System's 2,227-km main route from Singapore to Myanmar, plus a 1,300-km branch to Cox's Bazar.

Without April approvals, investors risk missing the 31 August 2026 rollout deadline, pushing implementation back a full year due to the Bay of Bengal's narrow November-to-mid-May laying window.

In a letter sent on 31 March to the foreign affairs ministry, the consortium sought no-objection clearance for Panama- and Indonesia-flagged vessels to enter Bangladesh's territorial waters to lay the cable.

However, officials say procedural gaps between ministries have stalled progress.

A foreign ministry official, speaking on condition of anonymity, told The Business Standard that the consortium had been asked to obtain authorisation from the posts, telecommunications and information technology ministry, adding that no such communication had yet been received.

"According to protocol, one ministry cannot act on a letter issued by an agency under another ministry," the official said.

Posts, Telecommunications and Information Technology Secretary Bilquis Jahan Rimi said the ministry has not received any letter on this matter. "A decision will be announced once the letter is received."

However, official documents show that the consortium had written to the ministry in September last year seeking inter-ministerial support.

Project status

The consortium has already reached all critical technical milestones.

These include a comprehensive feasibility study, a detailed subsea route survey, the demarcation of the route from Myanmar's Exclusive Economic Zone to Cox's Bazar, and the activation of the Singapore-Myanmar segment.

The project is currently in the "shovel-ready" phase, with construction of the landing station and beach manhole progressing at full pace.

Furthermore, specialised cable-laying vessels and a team of international experts have been contracted and are awaiting final approval to proceed.

Looming deadlines

The project faces a critical "roll-out obligation" to be completed by 31 August 2026. However, technical experts note that seabed installations in the Bay of Bengal are only feasible between November and mid-May.

If the April window is missed due to the upcoming monsoon and lack of approvals, the project is feared to be delayed by at least another year, leading to massive financial demurrages.

"We have already invested nearly 50% of the total project cost," said Md Arif Al Islam, managing director of Summit Communications.

"We are stuck in a complex situation. If the government did not want private submarine cables, why were we encouraged to spend millions on infrastructure and licences?"

The consortium has already spent $53 million on licensing, VAT and other expenses. Of the amount, it has paid $43.76 million to the cable owner, Compana Pvt Ltd, for the UMO trunk cable, which includes $36 million in IRU fees and $7.96 million in maintenance charges.

Market monopoly vs competition

Currently, the state-owned Bangladesh Submarine Cables PLC controls the majority of the market through two cables, SE-ME-WE-4 and SE-ME-WE-5, with a combined capacity of 7,220 Gbps. A third state-owned cable, SE-ME-WE-6, is expected to launch next year with a massive capacity of over 40,000 Gbps at a cost of Tk1,000 crore.

Bangladesh Submarine Cables has expressed concerns that private entry will create "extreme instability" and reduce the revenue of the state-owned listed company. In a recent internal report, the company suggested that the government should set a minimum threshold to ensure state-owned cable usage does not fall below 50%.

An official from Bangladesh Submarine Cables noted that as a listed company, the government must consider the interests of its shareholders when making strategic decisions.

Entrepreneurs in the IT sector have pointed out that the provision of internet services via submarine cables is currently a monopoly held by the state-owned company. In this context, the approval of private submarine cables was a significant milestone towards increasing private sector participation, they say.

Industry stakeholders maintain a consensus that increasing private sector participation will foster a more competitive market, ultimately driving down internet costs for the public.

They argue that making connectivity more affordable will enable the inclusion of a larger segment of the population, thereby significantly boosting the country's per-capita internet consumption.

Internet penetration scenario

According to a report by the Asian Development Bank published in December last year, Bangladesh's current internet penetration stands at 53%, remaining behind regional countries like Bhutan at 88% and 85% in the Maldives; both countries show high access.

The report said Bangladesh's digital infrastructure is expanding but faces connectivity, capacity, and rural access gaps. International connectivity relies on two undersea cables, both following similar routes, creating risks, it pointed out.

The government has approved five proposals for $1.9 billion in loans from development partners of which $1.6 billion is non-concessional.

Of the amount, $1.3 billion will be set aside as budget support to help tackle urgent financial pressures, according to finance ministry officials.

The approval for loans under relatively tough terms were granted yesterday (28 April) at a meeting of the Standing Committee on Non-concessional Loan chaired by Finance and Planning Minister Amir Khosru Mahmud Chowdhury at the Planning Ministry in Sher-e-Bangla Nagar.

Sources present at the meeting said the budget support package includes $450 million from the Asian Development Bank (ADB), $500 million from Japan International Cooperation Agency (Jica), $250 million from the Asian Infrastructure Investment Bank (AIIB), and $100 million from the OPEC Fund for International Development (OFID).

Officials said these loans come with higher interest rates, shorter grace periods and faster repayment schedules than concessional financing.

Under the programme titled Strengthening Economic Management and Governance, Subprogram 2, ADB will provide a total of $750 million, consisting of $300 million in concessional financing and $450 million through its regular Ordinary Capital Resources (OCR) window.

The concessional portion carries a 2% interest rate, a repayment period of 25 years, and a five-year grace period.

The $450 million OCR loan is classified as non-concessional and carries an interest rate of SOFR plus 0.50%, which based on the 20 April 2026 SOFR rate of 3.63%, brings the effective rate to 4.13%.

It also includes a 0.15% commitment charge on undrawn balances.

This ADB OCR loan has a 15-year tenure, including a three-year grace period. According to ERD analysis, the loan's grant element is 6.61%, making it highly non-concessional.

Negotiations with ADB were completed on 15 April 2026, and the package is now awaiting board approval.

The government is also seeking $500 million from JICA to help manage immediate fiscal challenges. The proposed loan carries an indicative interest rate of 3.05%, a 30-year repayment period, and a 10-year grace period.

Officials said the Japanese financing would be used in line with IMF recommendations, including expanding social protection spending, strengthening revenue administration, and improving macroeconomic stability.

AIIB is set to provide $250 million as co-financing alongside ADB. The proposed loan carries an interest rate of SOFR plus 1.45%, which based on the same benchmark rate would bring the effective cost to around 5.08%.

It has a 35-year maturity, a five-year grace period, and a 0.25% front-end fee. ERD analysis found the grant element to be negative 0.68%, meaning it is considered extremely hard borrowing.

The government is also pursuing $100 million equivalent from OPEC Fund for International Development, denominated at approximately €85.3 million. Indicative terms include an interest rate of six-month EURIBOR plus 1.20%, giving an effective rate of about 3.616%.

The loan has an 18-year maturity, a three-year grace period, and a 0.25% commitment fee. Its grant element is estimated at 11.38%, also placing it in the non-concessional category.

Beyond budget support, the committee also approved a separate $300 million ADB loan for the SASEC Dhaka-Sylhet Corridor Road Investment (Tranche-2) project.

The project will upgrade around 210 kilometres of highway from Dhaka (Kanchpur) to Sylhet into a four-lane corridor, with separate service lanes for slow-moving vehicles.

The goal is to better connect the Dhaka-Sylhet route with regional transport networks including the Asian Highway, SASEC (South Asia Subregional Economic Cooperation) and BIMSTEC corridors.

The total project cost is estimated at Tk16918.58 crore, of which the government will provide Tk3,674 crore, while ADB will finance Tk13,244.68 crore.

The road loan will come from ADB's OCR window at an effective rate of around 4.23%, with a 25-year repayment period and a five-year grace period.

Officials said the Standing Committee on Non-concessional Loan also adopted several policy measures to improve management of costly foreign borrowing.

Non-concessional loans will be approved only where concessional financing is unavailable or impractical. Borrowers receiving government or central bank guarantees must demonstrate repayment capacity from their own income.

Loans with excessive conditions or mandatory down payments will be discouraged.

The committee also decided that annual debt servicing on non-concessional external loans must remain below the lower of 10% of export earnings or 15% of government revenue, while total non-concessional external debt stock must remain below 10% of GDP.

ERD officials said these measures are expected to improve transparency, reduce risks and strengthen long-term sustainability in Bangladesh's external debt management.

Chattogram Port has recorded robust growth in cargo and container handling in the first nine months of the fiscal 2025-26, but operational bottlenecks, labour unrest and a decline in global ranking are raising concerns over its long-term competitiveness.

A comparative performance report for the first nine months of FY26 shows the port handled 104.29 million tonnes of cargo, marking a 7.39% year-on-year growth.

Container throughput also rose, reaching 2.57 million TEUs, up 4.75% from the same period a year earlier.

A report for the first nine months of the 2026-2027 fiscal year shows that the country's premier seaport handled 104.29 million tonnes of cargo, a 7.39% increase from the previous year. Container handling also grew to 2.57 million TEUs [Twenty-foot Equivalent Unit], up 4.75% from the same period.

Efficiency gains drive performance

Average vessel turnaround time has improved significantly, dropping from about eight days to 2.53 days, which allows the port to handle more ships.

In October 2025 alone, the port handled a record 391 vessels, a 16.02% increase year-on-year. Overall, vessel handling in the first nine months stood at 3,230 ships, up 5.62%.

CPA Secretary Refayet Hamim said, "Automation and digitalisation have been key. Systems like e-gate passes, terminal operations, digital billing, and the "CPA Sky" platform have reduced paperwork, yard congestion, and clearance time—sometimes to just 30 minutes."

"The implementation of pre-arrival processing has further streamlined customs clearance, enabling faster unloading and delivery of goods", he said.

He also said, "Another notable achievement has been the return to zero waiting time at the outer anchorage, allowing vessels to berth without delay – a development that significantly cuts logistics costs."

Khairul Alam Sujan, former vice president of the Bangladesh Freight Forwarders Association and a former director of the Bangladesh Shipping Agents Association, said there remains room for improvement.

He noted that narrowing the gap between the CPA and the Customs Authority would speed up services for users and improve overall port efficiency.

He also called for the swift, full rollout of automation and digitalisation systems.

Growth backed by economic recovery

The increase in cargo handling is mainly due to higher imports of fuel, wheat, and industrial raw materials. This has been supported by a more stable economy and fewer US dollar shortages than before.

In October 2025, cargo handling recorded a 21.11% increase, while container growth surged in August and September with gains of 20.10% and 10.22% respectively.

Even during the Eid-ul-Fitr vacation, the port continued its operations. In just one week in March this year, it handled 2.5 million tonnes of cargo and 55,000 TEUs, ensuring supply chains remained intact.

Structural limits still a concern

Despite the growth, port users say ageing infrastructure and equipment shortages are limiting its full potential.

The New Mooring Container Terminal, the port's busiest facility, saw a 12-14% increase in efficiency after being handed over to Chittagong Dry Dock Limited in July 2025.

However, disputes over leasing out the terminal to a foreign operator triggered labour unrest, disrupting operations and raising concerns among stakeholders.

Bangladesh Garment Manufacturers and Exporters Association Director SM Abu Tayub said consistent service is essential for any port, warning that even minor disruptions create difficulties for users.

He added that the CPA must ensure uninterrupted, reliable services at all times.

Ranking slip rings alarm bells

The port dropped one position to 68th in the global Lloyd's List ranking, which analysts see as a warning sign.

A recent decision to raise tariffs has raised concerns, with questions about whether higher costs could hurt the port's competitiveness.

Rakibul Alam Chowdhury, a former vice president of BGMEA, said the tariff hike has raised the cost of doing business and eroded competitiveness, warning that it could affect future business volumes and reduce the port's cargo handling.

Investment key to future growth

Port users say sustained foreign investment, modern technology adoption and a stable labour environment will be critical for regaining global standing.

They also stress that modernising the port is essential not just for attracting foreign investors, but also for encouraging domestic investment in trade and industry.

Amirul Houque, a former director of the Chittagong Chamber of Commerce and Industry and managing director of Seacom Group, said investment is crucial for port development, but it must be rational and well justified.

He also stressed the need to improve the skills of port workers to boost efficiency.

Bangladesh Bank has eased rules for banks to award incentive bonuses to staff, provided that a few criteria are met.

According to a central bank circular issued yesterday, a bank’s boards of directors may approve up to one month’s basic salary as a bonus in recognition of “special achievements” during the year, even if the usual eligibility criteria are not met.

However, this discretionary payment will only be permitted if the institution records an operating profit. In addition, the bank must ensure that regulatory capital is maintained at least at the previous year’s level (excluding adjustments for deferred provisions approved by Bangladesh Bank) and that no fresh applications are made for deferred provisioning facilities.

Banks may approve up to one month’s basic salary as a bonus in recognition of “special achievements” during the year, even if the usual eligibility criteria are not met
Officials said the move aims to boost morale among officers and employees while preserving competitiveness in the banking sector. Meanwhile, Bangladesh Bank stressed that compliance with the outlined conditions is essential to ensure financial discipline and safeguard stability.

Cement manufacturers in the country are under growing pressure as the US-Israel war on Iran disrupts Middle Eastern supply routes, forcing them to import key raw materials -- especially clinker -- from Asian countries at higher prices.

The conflict has also increased freight costs, further raising overall import expenses. At the same time, weak domestic demand is preventing producers from passing on higher costs to consumers, leaving manufacturers squeezed between rising input costs and a fragile market.

The situation also highlights the sector’s heavy dependence on imported raw materials. Key inputs such as clinker, limestone, granulated slag, fly ash and gypsum are largely imported. Nearly 90 percent of clinker is brought from abroad.

“Bangladesh’s cement sector is under new cost pressure as clinker imports shift away from the Middle East,” said Mohammad Iqbal Chowdhury, chief executive officer of LafargeHolcim Bangladesh PLC.

“Earlier, imports were largely sourced from Gulf countries at competitive prices, but that advantage has now disappeared. The country is now increasingly relying on China, Vietnam and Thailand, where clinker is being imported at higher prices,” he added.

Chowdhury said the shift is linked to a widening geopolitical crisis following joint US–Israel strikes on Iran and Iran’s closure of the Strait of Hormuz, a key global trade route.

“This has cut shipping traffic, pushed up freight and insurance costs, increased logistics risks and war-risk premiums, and forced rerouting of shipments,” he said.

“The impact on Bangladesh’s cement industry has been immediate, as it depends heavily on imported clinker and stone aggregates.”

He added that clinker import costs have risen from about $42 to $43 per tonne to nearly $53 due to tighter supply and higher freight charges.

“With demand already weak, companies are struggling to pass on these costs, putting pressure on profit margins and forcing them to cut spending,” he said.

Md Abul Mansur, general manager of Royal Cement Ltd, echoed these concerns. “Sourcing raw materials has become increasingly difficult due to global disruptions. Clinker is no longer coming from the Middle East, while gypsum and limestone from Oman now face sharply higher freight costs,” he said.

He added, “Clinker prices have risen from around $43 per tonne to about $57 to $58 per tonne, while slag prices have increased from $16 to around $23 to $24 per tonne, driven by war-related disruptions in global shipping.”

Mansur linked the surge in freight costs to higher oil prices, increased insurance premiums and greater risks on maritime routes, saying shipping costs have effectively doubled.

He said the impact is already visible in the domestic market. Cement prices have increased by Tk 30 to Tk 50 per bag, even though actual costs have gone up by Tk 70 to Tk 80. Weak demand has prevented companies from passing on the full increase.

“Costs are rising, but the market is unable to absorb the full impact,” he added.

He also noted that construction activity has slowed as developers delay projects in hopes of greater stability, further affecting the industry.

The country’s broader construction sector is also under strain due to weak public spending, subdued private investment, policy uncertainty and rising costs. These factors have already dampened project approvals, demand and growth across real estate and related industries, including cement.

Mohammed Amirul Haque, president of the Bangladesh Cement Manufacturers Association and managing director of Premier Cement Mills PLC, said the sector has faced multiple shocks over the past five years, making business difficult.

He added that many companies are still operating despite losses in the hope of recovery, but warned that this situation is not sustainable.

He stressed the need for a profit margin and cautioned that sharp price increases could harm the market.

“A quick recovery is unlikely,” he added.

Ryanair, Transavia, Volotea and other low-cost airlines are feeling the financial pain from high jet fuel prices as a result of the Middle East war and are cutting flights.

The closure of the Strait of Hormuz has taken a huge chunk of oil supplies off the market, sending the price of jet fuel soaring and triggering fears of shortages that could force airlines to cancel flights.

Airlines aren’t waiting for a lack of supplies to react.

“Travel alert: airlines are cutting thousands of flights right now,” Travel Therapy TV host Karen Schaler said in an Instagram reel this past weekend. “Book early.”

That advice would win the approval of Ryanair boss Michael O’Leary, who expressed concern earlier this month that fears of fuel shortages were making people put off booking flights.

Low-cost carriers -- which control a little more than a third of the global market, according to various estimates -- are feeling the pinch first due to the nature of their business model.

With cheaper tickets, they have less capacity to absorb the rise in fuel costs.

Some of the cancellations may be the normal adjustments airlines tend to make when demand doesn’t meet expectations on certain routes.

“It is not unusual for carriers to adjust their schedules at this time of the year,” financial analyst Dudley Shanley at investment bank Goodbody told AFP.

But “if jet fuel prices remain at this level, there will have to be a little bit more trimming for low-cost airlines”, he added.

If before the war airlines were able to maintain marginally profitable routes or even unprofitable routes, the surge in jet fuel prices will force them to make difficult choices.

That will start with many during the peak summer travel season.

“Unfortunately, it’s very likely that many people’s holidays will be affected, either by flight cancellations or very, very expensive tickets,” the EU’s energy commissioner Dan Jorgensen told Sky News last week.

The speed with which airlines are reacting depends in part upon the extent to which they secured fuel supplies in advance at fixed prices.

European airlines tend to do this to a greater extent than their rivals in other parts of the world. Air Transat, a low-cost Canadian airline, has cut six percent of its May-October flight schedule.

Southeast Asia’s largest low-cost carrier, AirAsia X, announced on Friday it was cutting more flights and even some connections, without providing an overall figure.

Earlier this month the Malaysia-based no-frills airline said it was raising fares by up to 40 percent and about 10 percent of its overall flights had been cut so far.

Hungary’s low-cost airline Wizz Air has so far resisted cutting flights.

“We are not taking capacity out, because I think the other guys will take capacity out,” its chief executive Jozsef Varadi was quoted as saying recently by trade magazine Aviation Week.

“You don’t have to run faster than the bear, but faster than the guy next to you,” he added.

He may have been thinking of the most spectacular cuts made in the industry by German group Lufthansa, which had just announced it was chopping 20,000 flights from its schedule through October, along with halting its regional feeder airline CityLine.

Its European rival Air France-KLM has trimmed two percent of flights in May and June at its low-cost Transavia subsidiary.

KLM has kept cancellations down to one percent of its European flights.

Ryanair didn’t cite fuel prices but high costs and taxes when announcing last week it would reduce flights to and from Berlin starting in October.

It is also cutting 10 percent of flights from Dublin, criticising limited capacity at the airport.

Since the beginning of the month, Spain’s Volotea has trimmed nearly one percent of flights from its summer schedule.

A prognosis comes from the regulator that the prevailing high inflation may intensify further following fuel-price rises, which indicates pricey commodities could be pricier.

"….near-term inflationary pressures are expected to intensify due to higher global oil prices, domestic fuel-price adjustments, and ongoing energy-supply constraints," the Bangladesh Bank (BB) says in its latest report on Inflation Dynamics in Bangladesh January-March 2026. Bangladeshmarket analysis

The central bank's latest observation comes just nine days after the government raised domestic fuel prices in response to continued increases in global petroleum- product prices, underscoring mounting external cost pressures on the economy.

Officials and economists, however, says these cost-push factors are likely to transmit through higher transportation and production costs, potentially broadening price pressures across the supply chain and complicating efforts to anchor inflation expectations.

Bangladesh's headline consumer price index (CPI) inflation (y-o-y) continued to rise, averaging approximately at 8.8 per cent in the third quarter (Q3) of the current fiscal year (FY) 2025-26, up from 8.3 per cent observed in the previous quarter, according to the quarterly report released Tuesday.

"Fuel-price adjustments may trigger a one-off spike in inflation, which would then ease gradually over time," Md. Ezazul Islam, Director-General of Bangladesh Institute of Bank Management (BIBM), says while explaining to The Financial Express (FE) the potential economic impact of the latest fuel-price hike.

"Fuel-price adjustments have a multiplier effect on the economy, as fuel is a key input across all sectors," explains Dr. Islam, also a former executive director of the central bank. Economicanalysis reports

Talking to the FE, a BB senior official has said transport costs have already risen following the latest fuel-price adjustments, which may further add fuel to inflationary pressures on the economy. Energy inflation rose to 14.9 per cent in the third quarter of FY'26 from 14.4 per cent in the previous quarter.

On the other hand, food inflation edged up during the period under review, primarily driven by an increased contribution from vegetables and spices. However, protein-based foods remained the top contributor.

The central bank in its report says the increased contribution of protein-based food items, along with 'clothing and footwear', can be partly attributed to seasonal demand associated with Eid-ul-Fitr, which typically leads to higher consumer spending on food and apparel.

The average contributions of import-concentrated food items and domestic food items to headline inflation increased in the Q3 of FY'26 from the previous quarter.

On the other hand, the contribution of import-concentrated non-food items to inflation declined, according to the report.

Meanwhile, the wage-price gap narrowed slightly by the end of Q3 of FY'26 compared to the previous quarter, driven by a fall in headline inflation (y-o-y) to 8.7 per cent in March 2026, while wage growth remained stable at 8.1 per cent. This led to a modest deterioration in household purchasing power, reflecting sluggish real wage growth.

"Given these developments, sustained policy vigilance is essential to anchor inflation expectations, contain elevated food and core prices, and safeguard household purchasing power, thereby supporting a stable macroeconomic environment conducive to long-term, inclusive growth," the central bank notes in its report.

Bangladesh witnessed a spike in energy inflation during the January-March quarter of the current fiscal year 2025-26 (FY26), driven by gas price hikes, according to a Bangladesh Bank (BB) report published yesterday.

Energy inflation rose to 14.9 percent in the third quarter of FY26 from 14.4 percent in the previous quarter, the central bank said in its report titled Inflation Dynamics in Bangladesh.

The report said solid fuels such as firewood, agricultural by-products, cow dung, and jute sticks have consistently been a major driver of energy inflation.

However, inflation of solid fuels declined to 21.5 percent in the January-March period from 23.1 percent in the previous quarter. Gas inflation surged to 11.3 percent in the third quarter, rebounding from a 6.2 percent inflation in the preceding quarter.

Solid fuels such as firewood, agricultural by-products, cow dung, and jute sticks have consistently been a major driver of energy inflation
During the January-March period of FY26, inflation averaged 8.81 percent, up from 8.3 percent in the preceding October-December quarter, mainly driven by increased food prices, especially vegetables and spices.

However, protein-based foods remained the top contributor, accounting for 44.6 percent of overall food inflation, the report said.

The average contribution of vegetables to food inflation rose to 22.7 percent in the January-March period of this year. The contribution of cereal items to food inflation saw a notable decline, dropping to 8.1 percent from 41.4 percent in the previous quarter.

In contrast, non-food inflation remained broadly stable at a high level of approximately 8.9 percent.

During the quarter, the BB report said that the contribution of domestic items to inflation increased to 71.7 percent, while the share of import-concentrated items fell to 28.3 percent.

Despite a spike in inflation, the wage-price gap slightly narrowed compared to the previous quarter. “This narrowing was primarily driven by a decline in headline inflation rather than any significant improvement in wage growth,” the report said.

“Despite some positive momentum effects, wage growth remained sluggish throughout the quarter, as the negative base effect persisted,” it added.

Finance Minister Amir Khosru Mahmud Chowdhury yesterday placed two amendment bills in the parliament proposing the removal of age limits for appointing the heads and members of two of the country’s key financial regulators.

The Bangladesh Securities and Exchange Commission (Amendment) Bill, 2026 seeks to abolish the existing maximum age limit of 65 years for appointing the chairman and commissioners of the Bangladesh Securities and Exchange Commission (BSEC).

Also placed the same day, the Insurance Development and Regulatory Authority (Amendment) Bill, 2026 proposes scrapping the current age cap of 67 years for appointing the chairman and members of the Insurance Development and Regulatory Authority (Idra).

Placing the bills before the House, the finance minister recommended that they be sent to a special parliamentary committee for scrutiny, with a report to be submitted within one day.

In the statement of objectives and reasons, the minister said the proposed amendment to the securities commission law aims to make it more suitable for present circumstances by allowing the appointment of experienced, skilled and knowledgeable individuals to top positions.

Regarding the amendment to the Insurance Development and Regulatory Authority Act, 2010, he noted that the existing provision, which sets the maximum appointment age at 67 years, has limited the opportunity to recruit capable and experienced individuals to leadership roles in the insurance sector.

He argued that removing this restriction is necessary in the public interest to strengthen decision-making in the sector.

Earlier, on April 23, the cabinet approved the draft amendments to both laws.

The government needs to urgently design a comprehensive framework to bring Bangladesh’s fast-growing digital economy under the tax net to boost the country’s tax-to-GDP ratio, the Bangladesh Economic Association (BEA) said.

It warned that a large and expanding segment of income remains outside the formal revenue system.

The association placed the recommendation before the National Board of Revenue (NBR) during a pre-budget discussion at its headquarters in Dhaka.

The economists’ body said sectors such as e-commerce, freelancing, digital advertising, and streaming services are growing rapidly but remain either fully or partially untaxed. This includes Facebook-based businesses, sellers on platforms like Daraz, freelancers on global marketplaces, and users paying for services such as Netflix and Spotify.

According to the BEA, the lack of a structured taxation regime is causing revenue losses and creating an uneven playing field between compliant businesses and largely untaxed digital operators.

It also flagged rising cross-border digital transactions, noting that firms like Google, Meta Platforms, and Amazon earn significantly from Bangladesh but contribute limited taxes.

The BEA proposed mandatory tax registration for foreign digital service providers and an automated withholding system through payment gateways to deduct tax or VAT at source.

It also recommended forming a specialised digital unit within the NBR to monitor cross-border transactions in real time, improve compliance, and reduce revenue leakages.

Prof Mahbub Ullah, convener of the BEA, and Mohammad Masud Alam, member of the committee, spoke at the event presided over by Md Abdur Rahman Khan, chairman of the NBR.

Oil prices rose nearly 3 percent on Tuesday, extending the previous session’s gains, as ‌efforts to end the US-Iran war appeared to have stalled, with the crucial Strait of Hormuz waterway still mainly shut, starving markets of key Middle East energy supply.

Brent crude futures for June climbed $2.99, or 2.76 percent, to $111.22 a barrel by 0758 GMT, after ​gaining 2.8 percent to close the previous session at its highest since April 7. The contract is ​up for a seventh straight day.

At their intra-day peak on Tuesday, Brent was up 3.4 percent on the day at $111.86 a barrel.

US West Texas Intermediate (WTI) crude for June rose $2.54, or 2.64 percent, ​to $98.91 a barrel, after gaining 2.1 percent in the previous session.

US President Donald Trump is unhappy with the latest Iranian ​proposal to end the war, a US official said on Monday, as Iranian sources disclosed that it avoided addressing the nuclear program until hostilities cease and Gulf shipping disputes are resolved.

Trump’s displeasure with the offer leaves the conflict deadlocked, with Iran shutting shipping flows ​through the Strait of Hormuz, a conduit for about 20 percent of global oil and gas supplies, and the ​US retaining its blockade of Iranian ports.

“Oil above $110 per barrel reflects a market that is rapidly repricing geopolitical risk,” said ‌Rystad Energy ⁠analyst Jorge Leon.

“With peace talks stalled and no clear path to reopening the Strait of Hormuz, traders are factoring in a prolonged disruption to a critical artery of global supply,” he added.

“Even in a best-case scenario, any US–Iran agreement is likely to be narrow and partial, leaving the Strait issue unresolved, which means the upside ​risks to prices remain.”

An ​earlier round of negotiations between ⁠the United States and Iran collapsed last week after face-to-face talks failed.

Ship-tracking data showed significant disruptions in the region, with six Iranian oil tankers forced to turn back due ​to the US blockade.

But a liquefied natural gas tanker managed by the United ​Arab Emirates’ Abu ⁠Dhabi National Oil Co crossed the Strait of Hormuz and appears to be near India, the on Monday.

Prior to the US-Israeli war on Iran, which began on February 28, between 125 and 140 vessels transited the strait ⁠daily.

The loss ​of about 10 million bpd of crude and products through Hormuz will continue ​to exceed falling consumption as inflationary pressures and demand destruction loom, PVM analyst Tamas Varga said, leading to an ever-tighter oil market ​balance.

IPDC Finance PLC, the country's first private sector financial institution, recorded a robust 25% year-on-year growth in net profit for the year 2025, navigating persistent macroeconomic challenges through strategic diversification and disciplined cost management.

According to its audited financial statements approved on Tuesday, the company's net profit after tax rose to Tk45.5 crore in 2025. Following this strong performance, the board of directors has recommended a 10% dividend for the shareholders, comprising 5% cash and 5% stock.

The growth was largely driven by a massive surge in investment income, which skyrocketed by 93% to reach Tk132.4 crore. This jump was fuelled by higher treasury yields and effective portfolio management within the capital market.

Additionally, gross interest income grew by 9% to Tk956 crore, supported by a prudent expansion of the company's lending portfolios.

Despite a broader economic slowdown, IPDC's operating income increased by 7% to Tk348.4 crore. The company maintained a strict grip on its operational costs, with expenses rising by a moderate 10%, resulting in an operating profit of Tk185.3 crore.

On the balance sheet side, IPDC continued to gain depositor trust. Total deposits grew by 15% to Tk6,224.9 crore, securing a 12% market share in the industry. Meanwhile, loans, leases, and advances stood at Tk7,462.2 crore, marking a 7% increase from the previous year.

Key financial indicators also showed significant improvement. Earnings per share (EPS) rose to Tk1.11, and the Net asset value (NAV) per share climbed to Tk17.85. The company's net operating cash flow per share (NOCFPS) stood at a healthy Tk9.94, indicating strong cash generation from its core business operations. The return on equity (ROE) improved to 6.74%.

Managing Director of IPDC Finance Rizwan Dawood Shams attributed the success to "disciplined execution and strategic resilience."

"Despite a challenging environment, we strengthened our earnings base through diversified income streams and prudent cost management. Our focus on portfolio quality and strong risk governance enabled us to deliver sustainable profitability while reinforcing our balance sheet," he said.

He further added that the company remains committed to creating long-term value for stakeholders through financial stability and responsible growth.