The country's private sector credit growth fell to a historic low of 6.03% in February, driven by prolonged political instability and a high interest rate regime. Bankers and business leaders say that due to the Iran war, a recovery in credit growth is unlikely in the near future.

According to the latest data from the Bangladesh Bank, credit growth edged down from 6.1% in December, continuing a sharp decline from 10.13% recorded in July 2024.

Although there was a brief spike to 6.58% in November, analysts attribute this to loan restructuring ahead of the 12 February national election, rather than genuine new investment in productive sectors.

In its monetary policy statement for January-June 2026, the central bank attributed the slowdown to tight monetary conditions, increased government borrowing to finance the budget deficit, and subdued loan demand amid ongoing uncertainty over new investment decisions.

Sohail RK Hussain, Managing Director of Bank Asia PLC, told TBS, "There was an election in early February. After the election, when the government began focusing on private sector growth, the unexpected challenge of the Iran war emerged."

He added, "Our investment outlook now largely depends on when the war ends. Even if the war stops now, credit growth will not recover for the next few months."

"The biggest challenge for businesses at the moment is energy. Importing fuel at competitive prices will raise costs, putting pressure on businesses. This may require further increases in interest rates to control inflation."

"Overall, the coming months will be quite challenging – particularly in terms of inflation, rising dollar exchange rates, and demand for export products."

Private credit growth dips to record low at 6%

The decline has been consistent in recent months, with growth recorded at 6.29% in September, 6.35% in August, 6.52% in July, 6.40% in June, 7.17% in May, and 7.5% in April. In contrast, private sector credit growth stood at 10.13% in July 2024 before dropping sharply following the political transition in August.

Newly appointed central bank Governor Md Mostaqur Rahman has indicated that policy support will be introduced to revive private sector lending and restore economic momentum.

On his first day in office, he said lending rates would be gradually reduced to encourage investment, and reopening closed factories and businesses would be essential to revitalise economic activity-signalling a possible shift away from the prolonged contractionary monetary stance.

However, despite the governor's assurance of lowering lending rates, the central bank has not yet taken steps to reduce policy rates due to new challenges such as the Iran war.

A deputy managing director of Sonali Bank, speaking anonymously, told TBS that investment had remained low due to prolonged political uncertainty. Although credit growth was expected to rise under an elected government, the war has introduced fresh uncertainty.

He said, "Businesses want to invest, but there is no assurance of energy supply. The government's current method of procuring fuel is also costly, which will increase investment costs. At the same time, banks' loan recovery situation is very weak. Many clients have rescheduled loans under policy support, creating pressure on cash flow and reducing the capacity to issue new loans."

Syed Mahbubur Rahman told TBS that banks are currently lending at around 11% interest while paying similar rates on deposits, leaving very thin margins.

He noted that although high lending rates are a constraint, investors prioritise reliable infrastructure – such as gas, electricity, and port facilities – over financing conditions.

Persistent energy shortages and infrastructure bottlenecks, he said, have prevented both expansion by existing businesses and entry by new investors.

Tight monetary policy strains banking sector, slows deposit and credit growth: Planning Commission report

A major factor behind the slowdown in credit growth has been increased government borrowing from banks. Between July and 19 March of the 2025-26 fiscal year, net credit to the government reached Tk98,000 crore, equivalent to 94.73% of the revised annual target of Tk1.18 lakh crore.

Banks are also struggling with rising non-performing loans, which climbed to a record Tk5.57 lakh crore by the end of December 2025 – about one-third of total outstanding loans.

High default levels have weakened bank capital positions, increased provisioning requirements, and made lenders more cautious in approving new loans.

Liquidity pressures and slow deposit growth have further constrained lending capacity. In an effort to curb inflation, the central bank earlier raised its policy rate to 10%, pushing commercial lending rates close to 13.5% and discouraging businesses – especially small and medium enterprises – from taking new loans.

The effects of weak credit growth are increasingly visible across the economy. Imports of capital machinery have declined, signalling slower industrial expansion, while reduced investment has dampened money circulation. Many factories are operating below capacity, consumer demand remains weak, and private sector job creation has slowed.

As Bangladesh moves towards its scheduled graduation from Least Developed Country (LDC) status on 24 November 2026, a new assessment highlights significant risks and structural vulnerabilities that could undermine a smooth transition.

While Bangladesh meets the graduation criteria, it is not fully prepared for a sustainable post-LDC phase due to long-standing issues such as loss of trade preferences, macroeconomic pressures, fiscal and financial vulnerabilities, and institutional and implementation weaknesses, the UN-sponsored assessment finds.

With significant readiness gaps remaining, the 2026 graduation could disrupt development gains, making the coming months crucial for policy action and decision-making, concludes the Bangladesh Graduation Readiness Assessment, conducted by the UN Office of the High Representative for LDCs.

The report was discussed at a stakeholders' meeting today (5 April) at the National Economic Council auditorium in Sher-e-Banglanagar, attended by ministers, trade diplomats, and representatives from the private sector and international agencies.

Speaking as chief guest, Finance and Planning Minister Amir Khosru Mahmud Chowdhury said the country is not yet fully prepared to achieve this goal. Key challenges include pressures from foreign and domestic debt, the high cost of borrowing, and weaknesses in overall financial management.

The minister added that the current global energy crisis and disruptions in international supply chains could place further strain on Bangladesh's economy. "The impact will extend beyond the energy sector, affecting markets for food and other goods and driving up inflation, which is already a global concern."

He further said that while fuel prices have surged worldwide, Bangladesh has so far kept them relatively under control, though the government cannot maintain this indefinitely.

"Being an elected government, we are trying to avoid placing sudden extra burdens on the people. Yet if financial pressures continue and government resources are drained, the ultimate cost will fall on citizens. Economic decisions must therefore be taken with extreme caution, balancing public welfare with long-term stability of the economy," he added.

Months before the Middle East conflict, Bangladesh formally requested a three-year extension of its preparatory period to November 2029 under the Enhanced Monitoring Mechanism.

It also sought an independent Graduation Readiness Assessment from the UN Office of the High Representative for LDCs, Landlocked Developing Countries, and Small Island Developing States, which commissioned the report.

'Past five years consumed by crisis management'

Economists Daniel Gay and MA Razzaque presented the report's key findings, highlighting the external and domestic crises Bangladesh faced during the five-year preparatory period from 2021.

These included the Rohingya refugee crisis, the Covid-19 pandemic, the Russia-Ukraine war, the July 2024 political transition, inflation, fiscal stress, falling investment, and rising debt.

Rather than a period of strategic preparation, the report notes, the past five years were dominated by crisis management, economic stabilisation, and political survival. It adds that the Middle East crisis has further disrupted supply chains, caused energy price volatility, and raised risks in remittance inflows.

The assessment identifies six critical vulnerabilities. Chief among them is potential loss of preferential access to the European Union market, which accounts for 44% of Bangladesh's exports.

An extension or postponement of graduation for around three years would allow time to strengthen key economic fundamentals.
Amir Khosru Mahmud Chowdhury, finance minister

Under the GSP+ scheme beyond 2029, apparel exports could face 12% tariffs, compared with zero-duty access now, leaving Bangladesh at a disadvantage versus competitors like Vietnam and India.

The report also flags a deepening banking sector crisis, with NPLs reaching 35% of total credit by September 2025, weakening the financial sector's ability to support investment.

Fiscal pressures are mounting, with government revenue at just 6.8% of GDP and debt servicing consuming about 31% of revenue. The IMF and World Bank have already classified Bangladesh's debt distress risk as "moderate," the report mentions.

Structural competitiveness challenges persist, including logistics costs around 16% of GDP, port congestion, customs inefficiencies, and energy shortages that raise production costs. Implementation capacity remains weak, with slow progress on the government's transition strategy due to limited coordination and administrative strain.

Social pressures are rising as well. Inflation has pushed an estimated 90 lakh people into poverty, raising the poverty rate to over 21.2% in 2025 from 18.7% in 2022. Employment fell by 19 lakh between 2023 and 2024, disproportionately affecting women and highlighting a fragile labour market.

Given these challenges, the UN Committee for Development Policy allows for possible deferral under exceptional circumstances, citing General Assembly resolution 67/221 (2012), which stresses that graduation "should not disrupt the development progress achieved" by a country.

Govt waiting for UN CDP's response

Earlier, the government formally requested a three-year extension, signalling that while Bangladesh meets the formal criteria for graduation, the challenge lies in managing the transition.

According to the Economic Relations Division (ERD), a clear process governs any decision on postponing graduation. First, the UN Committee for Development Policy (CDP) evaluates whether an extension is warranted. If so, the CDP submits its recommendation to the UN Economic and Social Council (ECOSOC). After review and approval by ECOSOC, the matter goes to the UN General Assembly for final endorsement.

ERD sources said the CDP has not yet issued a final assessment. While it was initially expected in March, the report has now been delayed to May. A key ECOSOC meeting on 10-11 June may discuss Bangladesh's request, where preliminary decisions or recommendations could emerge.

UN Under-Secretary-General and High Representative for LDCs Rabab Fatima said the request is under CDP review. "Once the technical assessment is complete, CDP will submit recommendations to ECOSOC, which will form the basis for a UN General Assembly decision."

ERD Secretary Shahriar Kader Siddiky said the extension request does not indicate a change in graduation ambition, but is a strategic measure to ensure a smooth, sustainable, and irreversible transition.

Govt 'firefighting' to manage daily crises: Khosru

Endorsing the identified vulnerabilities, Minister Amir Khosru said Bangladesh is currently navigating a complex economic situation, where the government is largely "firefighting" to manage daily crises.

He added that the government inherited an economy where all key macroeconomic indicators were in decline. "We are simply fighting to salvage the economy," he said.

The government views capacity building as the most critical factor for navigating this crisis, he said, claiming the policies outlined in the BNP manifesto have been explicitly aligned with this approach.

"If these policies are implemented effectively and on schedule, the economy can gradually be strengthened on a solid foundation, making it possible to prepare for LDC graduation," said the minister.

He also said that an extension or postponement of graduation – around three years – would allow time to strengthen key economic fundamentals.

"If necessary reforms, capacity building, and economic stabilisation can be achieved during this time, graduation will become a realistic and sustainable goal.

Commerce Minister Khandakar Abdul Muktadir highlighted prudent debt management and expanding the tax base as essential to regaining economic momentum.

Rashed Al Mahmud Titumir, finance and planning adviser to the prime minister, added that structural transformation, economic diversification, and productivity enhancement are crucial to achieving a "Trillion Dollar Economy" by 2034.

State Minister for Planning Zonayed Abdur Rahim Saki said the government will prioritise medium- and long-term development plans that explicitly address the challenges of LDC graduation.

The ongoing chaos over fuel has driven up truck and covered van fares by 20% to 30% on key routes, disrupting goods transportation across Chattogram, Benapole, Khulna and the northern region.

The increase has added pressure on both traders and consumers supplying essential commodities, with traders warning that higher transport costs could soon push up market prices.

In the Benapole, uncertainty in fuel supply is directly driving up transport expenses. Truck driver Abul Kasem said fares have jumped by Tk5,000 to Tk7,000 within a few days, warning that prolonged disruption could cripple their business.

Similar pressure is evident on the Khulna route, where rising transport costs for perishable goods are already feeding into the market. Watermelon trader Altaf Hossain said a 20-tonne truck that once cost Tk20,000 now requires at least Tk25,000, forcing buyers to pay more.

In the northern region, the fuel shortage has emerged as a major challenge during the peak season for transporting seasonal agricultural produce.

Muhammad Shahadat Hossain Saju, owner of a cold storage facility in Bogura, said it is now the peak potato transport season, yet vehicles cannot operate regularly. Even when they do, higher fares are unavoidable due to fuel scarcity.

The poultry sector is also beginning to feel the strain, with rising transport costs complicating market supply and demand.

Truck driver Israfil Alam, who supplies chickens to Dhaka from northern districts, said fares from Rangpur have increased from Tk18,000–19,000 to around Tk21,000.

Trader Suman Ali, who transports chillies from Bogura to Chattogram, reported a similar trend, with per-truck costs rising from Tk28,000 to between Tk35,000 and Tk37,000.

Fears of rise in essential prices

Rising transport costs amid the fuel shortage are feared to push up consumer prices, with traders warning of further increases in essential goods.

Benapole truck driver Abdus Sobhan said, "I transport one truckload at a time. I now pay Tk4,000 more than before. Owners will pass this cost onto the goods."

He added, "There is no real diesel shortage. Trucks are running with adequate fuel. Owners are using the fuel crisis to justify fare hikes."

Transport owners said irregular supply is driving costs. Azim Uddin Gazi, president of the Benapole Truck Owners' Association, said, "Petrol and octane face minor issues, but diesel is sufficient. Delays in timely supply are pushing up fares, as pumps provide only half the required fuel."

Business representatives blamed weak supply systems and hoarding. Ejaz Uddin Tipu, joint secretary of the Jashore Chamber, said, "There is no real market shortage. Some hoard fuel, straining pumps, and truck owners exploit this to raise fares."

Pumps continue rationing in Ctg

Even with scheduled depot deliveries, most Chattogram filling stations remain closed or ration fuel. Pump owners said rationing continues despite its official removal.

Bangladesh Petroleum Corporation (BPC) confirmed fuel arrives regularly, but pump owners said quantities are insufficient, and intermittent deliveries prevent consistent supply.

On Sunday, 13,000 litres of octane and 9,000 litres of diesel arrived at the city's QC pump, but surging demand strained stocks. At CMP Filling Station, 2,363 litres of diesel and 2,574 litres of octane were available in the afternoon, with sales ongoing.

Government vehicles at CMP received full allocation, while private motorcycles were limited to Tk500 and cars to Tk2,000. QC Filling Station followed the same rationing system. In contrast, Apollo Filling Station was fully closed, and Wasa Mor pumps operated at limited capacity.

One pump owner added, "We sell exactly what comes from the depot. We cannot turn customers away, so rationing is necessary."

Mohammad Mainuddin, member secretary of the Chattogram division of the Bangladesh Petroleum Dealers, Distributors, Agents and Petrol Pump Owners Association, told TBS, "Our stations have no fuel shortage. We sell only what dealers supply. Tag officers are deployed to maintain normal supply. The main issue is hoarding—many store excess fuel at home. Public awareness can restore normal operations."

Mohammed Trading, owned by SAK Ekramuzzaman, managing director of RAK Ceramics (Bangladesh), plans to purchase around 5 lakh shares of the company at current market price, according to disclosures published on stock exchanges today (5 April).

Data from the Dhaka Stock Exchange (DSE) shows that RAK Ceramics shares closed at Tk21.80 each, down 3.11% from the previous session, valuing the planned acquisition at approximately Tk1.09 crore.

The disclosure also confirms that Ekramuzzaman is the proprietor of Mohammed Trading and a sponsor of RAK Ceramics. As of September last year, he held a 3.94% stake in the company, equivalent to 1.69 crore shares.

According to its website, founded in 1996, Mohammed Trading has grown into a prominent player in Bangladesh's trading sector, dealing in high-quality tiles, sanitary ware, faucets, paints, and other consumer products.

The disclosures said the shares to be bought at the current market price through the Dhaka Stock Exchange and Chittagong Stock Exchange.

At the last annual general meeting, shareholders of RAK Ceramics approved entering into contracts for the sale or purchase of goods and materials with Mohammed Trading, amounting to 10% or more of the company's revenue in the immediately preceding financial year, in line with the meeting agenda of the company.

In October last year, Mohammed Trading announced its plan to buy 85 lakh shares of RAK Ceramics at the prevailing market price through the both stock exchanges.

In 2025, RAK Ceramics incurred a loss of Tk39.59 crore, even as its revenue grew by 10.56%, mainly due to higher manufacturing costs, prolonged disruption in gas supply until June, and rising finance expenses.

The multinational ceramic manufacturer's sales rose to Tk7330 crore in 2025 from the previous year, driven largely by increased production following uninterrupted LNG supply from July onward, which helped boost market sales.

Despite the widening losses, its board of directors unanimously recommended a 10% cash dividend for general shareholders for 2025, amounting to Tk11.95 crore.

The declared dividend approved by shareholders in its AGM held on 31 March.

Eleven banks and the majority of non-bank financial institutions (NBFIs) in Bangladesh reported no spending on corporate social responsibility (CSR) in 2025, exposing gaps in participation despite a rise in overall CSR expenditure by banks in the latter half of the year, according to a Bangladesh Bank report published today (5 April).

The report shows that 11 of the country's 61 banks recorded zero CSR expenditure during the year. A similar pattern was seen among NBFIs, where 21 out of 35 institutions reported no CSR spending at all.

Despite the limited participation by many institutions, overall CSR spending by banks increased significantly in the second half of 2025. Total CSR expenditure by banks reached Tk197.85 crore between July and December, up from Tk147.19 crore in the first half of the year.

The data also indicates that CSR spending remains concentrated among a small number of banks, with a handful of lenders accounting for a large share of the total outlay.

Standard Chartered Bank contributed the highest amount at Tk27.71 crore, followed by BRAC Bank with Tk20.04 crore and EXIM Bank with Tk19.85 crore.

Private banks dominated overall CSR spending, accounting for 79.16% of the total. In contrast, state-owned banks contributed only 4.09%, highlighting a stark imbalance between the two groups.

CSR spending also remained largely focused on traditional sectors.

Education received the largest share, accounting for 32.47% of total CSR expenditure, while health accounted for 29.07%. Together, the two sectors received nearly 60% of the total CSR allocation.

Spending on environment and climate-related initiatives remained comparatively low. Allocations for environmental protection and climate action stood at 14.81%, falling short of the 20% guideline set by Bangladesh Bank.

Under Bangladesh Bank regulations, banks and financial institutions are required to allocate up to 1% of their net profits to CSR activities.

Of this amount, at least 30% must be spent on education and another 30% on health. A further 20% is required to go towards environmental protection and climate change mitigation, while the remaining 20% may be allocated to areas such as income generation, disaster management, infrastructure development, sports and cultural activities.

Bangladesh Bank is set to hold another special auction of Tk5,000 crore worth of 91-day treasury bills on 8 April, taking the total amount raised through such auctions in this month to Tk10,000 crore.

A senior central bank official confirmed the development to The Business Standard today (5 April), saying the move comes in response to the government's growing financing needs.

Bankers say the government is increasingly relying on the banking sector due to a revenue shortfall and rising expenditure pressures. At the same time, excess liquidity in banks has created room for such borrowing.

A senior official from a private sector bank noted that banks had placed around Tk11,500 crore in the standing deposit facility (reverse repo) toward the end of last month, indicating surplus funds in the system. This has encouraged the central bank to mobilise funds from the market.

BB to hold Tk5,000cr special repo auction as govt cash demand rises

Additionally, Bangladesh Bank has been purchasing US dollars from commercial banks through auctions since the beginning of the fiscal year, further injecting liquidity into the banking system.

Another banker said the government had also resorted to off-calendar borrowing in the October-December quarter, raising around Tk10,000 crore to meet urgent funding needs.

Such off-calendar auctions typically signal immediate financing requirements, driven by various government initiatives, including social safety net programmes.

For the April-June quarter, the government plans to borrow Tk1.10 lakh crore in short-term funds through treasury bills. This includes Tk44,000 crore in 91-day bills, Tk36,000 crore in 182-day bills, and Tk30,000 crore in 364-day bills, to be auctioned in 12 weekly sessions.

Treasury bill yields fall below 10% amid rising banking liquidity

In addition, the government aims to raise another Tk39,000 crore through treasury bonds of medium and long-term tenures.

Officials from the central bank's Debt Management Department said the auction schedule has been prepared based on the government's financing requirements. However, they noted that this borrowing does not reflect net new debt, as maturing bills and bonds are routinely rolled over through fresh issuances.

Meanwhile, private sector credit growth remains subdued at 6.03%, reflecting weak investment demand. With limited lending opportunities, banks are increasingly investing in government securities, which are considered risk-free.

March brought an easing of inflation in Bangladesh, with the rate falling to 8.71% from February's 10-month high of 9.13%, according to the Bangladesh Bureau of Statistics (BBS) data released on Sunday (5 April).

The overall decline was driven by a sharp drop in food inflation to 8.24% from 9.30% in February. The drop came in stark contrast to the Food and Agriculture Organization (FAO) warning on 3 April that global food prices rose in March to their highest level since September last year.

The FAO cautioned that prices could rise further if the Middle East conflict – which has already pushed up energy costs – continues.

In March, the average wage index increased slightly to 8.09%, marking gains in farm, factories and services, also breaking a 50-month declining streak in workers' real incomes since February 2022.

Dr Fahmida Khatun, Executive Director of the Centre for Policy Dialogue, said, "In reality, the drop in inflation appears somewhat 'disjointed,' meaning it does not fully reflect ground realities."

"If the data does not match people's lived experiences, questions will naturally arise," she said.

However, Zahid Hussain, former lead economist at the World Bank Dhaka office, does not find the March inflation figure unusual.

He explained that a decline in inflation does not mean prices are falling, rather, the rate of increase has slowed. "Prices are still rising, but at a slower pace."

He noted that although the war situation emerged toward the end of February, its full impact had not yet been reflected in March inflation data.

"Prices of fuel, fertiliser, and other inputs are rising in international markets, but these take time to transmit domestically," he said.

Explaining March's decline in price index, the economist also pointed out that domestic adjustments in gas, electricity, and petroleum prices were not made in March, while LPG prices were adjusted only in early April.

He also noted that in countries like India, Pakistan, and the United States, fuel prices are adjusted more frequently, so the impact of global shocks is felt more quickly. In Bangladesh, the monthly adjustment system delays this impact.

However, he noted that in many cases fuel is being sold at 50% to 100% higher prices in informal markets outside fuel stations, but these prices are not captured in the Consumer Price Index, meaning the real pressure is not fully reflected in official statistics.

The impact of higher costs of transportation, imports, shipping, and insurance premiums is likely to become visible from April-May, he warned.

According to BBS data, the food price index dropped more in rural areas than urban areas, which saw steeper decline in non-food indices in March.

Prime Bank PLC has reported a strong financial performance for 2025, posting a consolidated net profit of Tk910 crore and announcing a 30% dividend for its shareholders, reflecting robust growth and improved operational efficiency.

The board of directors approved the audited financial statements at a meeting held today (5 April) and recommended a total dividend comprising 25% cash and 5% stock.

The latest payout marks a significant increase from the previous year's 20% dividend, which included 17.5% cash and 2.5% stock, according to the press release.

The bank's net profit after tax rose by 24% year-on-year, up from Tk732 crore in 2024. Earnings per share also improved to Tk7.84 in 2025, compared to Tk6.31 in the previous year, indicating enhanced profitability and better returns for investors.

Prime Bank's financial position remained solid, with key performance indicators showing steady growth. Net asset value per share stood at Tk40, while net operating cash flow per share reached Tk58.07, highlighting strong liquidity and operational strength.

The bank's total assets expanded to Tk64,890 crore by the end of December 2025, underscoring its continued business expansion. Its capital adequacy position also remained strong, with a Capital to Risk Weighted Assets Ratio of 18.07%, one of the highest in the country's banking sector.

The bank has scheduled its annual general meeting for 21 May 2026, with the record date set for 28 April to determine eligible shareholders for dividend entitlement.

Market observers view the improved earnings and higher dividend declaration as a positive signal for investors, especially at a time when the broader financial sector is navigating economic challenges. The bank's consistent growth trajectory and prudent risk management have helped it maintain stability and deliver value to shareholders.

Shares of Prime Bank closed at Tk29.40 today at the Dhaka Stock Exchange, reflecting steady investor interest in the stock.

The country's capital market opened the week on a sharply negative note today (5 April), as stocks tumbled amid heavy selling pressure, wiping out significant value and deepening investor anxiety over economic uncertainty and policy direction.

The benchmark index of the Dhaka Stock Exchange (DSE), DSEX, dropped by 107 points, or 2.05%, to close at 5,112, marking one of the steepest single-day declines in recent weeks.

The blue-chip DS30 index also fell significantly, shedding 35 points, or 1.76%, to settle at 1,945.

The broad-based downturn reflected overwhelming bearish sentiment, with 354 issues declining against just 25 gainers, while 11 remained unchanged.

Market turnover also took a hit, falling by 18% to Tk512 crore, indicating reduced participation as investors opted to stay on the sidelines. Total market capitalisation dropped by around Tk8,500 crore in a single session, underscoring the scale of the sell-off.

Major large-cap stocks acted as key draggers behind the decline, including Grameenphone, BRAC Bank, Robi Axiata, BAT Bangladesh, and Square Pharmaceuticals, all of which witnessed significant price erosion.

According to EBL Securities, the market came under pressure from the opening bell, as investor sentiment remained fragile amid concerns over macroeconomic stagnation following the government's recent austerity measures.

The brokerage noted that selling pressure dominated from the opening bell, leaving little room for recovery throughout the session as investors reacted cautiously to ongoing uncertainties.

The downturn comes just a day after the stock exchanges shortened trading hours by 30 minutes in line with government directives aimed at reducing fuel consumption.

Market insiders believe the move, coupled with broader austerity measures, has further dampened investor confidence at a time when the market is already struggling with low liquidity and weak sentiment.

Adding to the uncertainty, investors are closely watching developments surrounding regulatory leadership.

The recent appointment of a special assistant for investment and capital markets to the prime minister initially raised expectations of changes in the leadership of the Bangladesh Securities and Exchange Commission.

However, the absence of any immediate reshuffle has left many investors cautious, with some opting to remain inactive until there is greater clarity.

Sector-wise, all major segments posted losses, with mutual funds leading the decline, followed by ceramics and jute. Despite the broad-based losses, a handful of stocks managed modest gains, while several others faced steep corrections.

The bearish trend was mirrored at the Chittagong Stock Exchange, where the CSCX index fell by 128 points to 8,854, and the CASPI dropped 228 points to close at 14,473. Interestingly, turnover at the port city bourse surged significantly, suggesting selective participation despite the overall negative sentiment.

Crude oil prices opened higher on Monday, with US benchmark West Texas Intermediate up 1.86 percent to $113.62 a barrel, as the war in the Middle East continues to squeeze global energy supplies.

North Sea Brent crude was also higher at the week's market opening, climbing 1.16 percent to $110.30 a barrel.

President Donald Trump has set a Tuesday deadline for Iran to end the war and reopen shipping in the critical Strait of Hormuz waterway, threatening in an expletive-laden social media post Sunday to strike the country's power plants and bridges if it did not comply.

"Tuesday will be Power Plant Day, and Bridge Day, all wrapped up in one, in Iran. There will be nothing like it!!!" Trump wrote on his Truth Social platform, before later telling Fox News he thought there was a "good chance" Iran would agree to a deal on Monday.

The war, entering its sixth week since the US and Israel first attacked Iran on February 28, has engulfed the Middle East in conflict and upended the global economy.

Iran has virtually blocked the Strait of Hormuz, through which about 20 percent of the world's oil and gas transits, sending petroleum prices skyrocketing.

US President Donald Trump is due to meet Chinese President Xi Jinping in May during his first visit to China in eight years, a closely watched trip that comes just a year after Washington rolled out sweeping and at times erratic global tariffs.

The confrontation between the world's two top economies has evolved from slapping tit-for-tat tariffs to managing tensions following numerous rounds of trade talks, as well as phone calls and a meeting between their presidents last year.

Developments this year

March - US launches new Section 301 unfair trade probes into Chinese industries. China responds with reciprocal investigations. Plans for a summit between Trump and President Xi Jinping were underway but Trump delays Beijing visit to mid-May as the Iran war continues.

US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer meet Chinese Vice Premier He Lifeng and top trade negotiator Li Chenggang in Paris for a sixth round of talks that both sides described as "constructive."

February - US Supreme Court rejects Trump's global tariff regime. Trump indicates he will still use tariffs.

June-August - Trump says trade truce was back on track after some Chinese rare earth magnet producers begin to receive export licences. US starts issuing licences to Nvidia to export its advanced artificial intelligence chips to China, while Trump urges China to quadruple US soybean purchases. Tariff truce was extended another 90 days.

May - At the first round of trade talks, held in Geneva, both sides strike a 90-day truce that allowed lofty tariffs to come down. Three weeks later, Trump says China violated an agreement to mutually roll back tariffs and ease curbs on critical minerals exports. China says US had introduced multiple "discriminatory restrictive" measures against China.

April - After returning to office with a 10% punitive tariff on Chinese goods, Trump announces at the start of April sweeping "Liberation Day" tariffs on all imports that hurt relations with China more. China retaliates and both countries take turns raising levies against each other to exceed 100%. China also begins restricting some rare earth exports.

Indian refiners have purchased Iranian oil amid the middle east conflict that has disrupted supplies through ‌the Strait of Hormuz, the oil ministry said yesterday (4 April).

The world's third-biggest oil importer and consumer, India has not ​received a cargo from Tehran since May ​2019, following US pressure not to buy Iranian ⁠crude, but supply disruptions from the US-Israel war have ​hit the South Asian nation hard.

"Amid Middle East ​supply disruptions, Indian refiners have secured their crude oil requirements, including from Iran; and there is no payment hurdle for ​Iranian crude imports," the oil ministry said on ​X.

Last month, the United States temporarily removed sanctions on Iranian oil ‌and ⁠refined products to ease supply shortages.

India has secured its full requirements of crude oil for the coming months, the ministry added.

"India imports crude oil from ​40-plus countries, ​with companies ⁠having full flexibility to source oil from different sources and geographies based on ​commercial considerations."

India has also bought 44,000 metric ​tons ⁠of Iranian liquefied petroleum gas loaded on a sanctioned vessel. The ministry said the vessel, which berthed at ⁠the ​western port of Mangalore on ​Wednesday, is discharging the fuel.

The National Board of Revenue (NBR) is planning to raise the exemption limit for excise duty on annual bank deposits to Tk5 lakh from the existing Tk3 lakh, a move aimed at easing the tax burden on small depositors.

Currently, deposits between Tk3 lakh and Tk5 lakh are subject to a nominal excise duty of Tk150.

According to Bangladesh Bank data, approximately 40 lakh account holders maintain deposits in the Tk3-5 lakh range. If the exemption is implemented, these depositors would benefit from the new relief, though the government could face a revenue shortfall of around Tk200 crore, NBR sources said.

Experts argue that imposing excise duty on bank deposits is unjustified. Interest earned on deposits is already subject to income tax, and banks levy VAT on service charges, raising questions about the rationale for an additional excise duty.

During pre-budget discussions last Wednesday, NBR Chairman Abdur Rahman Khan confirmed plans to propose excise duty relief for bank deposits but did not provide further details.

Speaking to The Business Standard, he said, "We intend to provide relief on excise duty. However, no final decision has been made yet."

NBR officials reportedly discussed the proposal with the finance minister last week, and if the government approves, it could be presented in the budget slated for June.

A senior NBR officer, speaking on condition of anonymity, explained that deposits up to Tk3 lakh are already exempt and that the plan is to extend the benefit to deposits up to Tk5 lakh.

The officer added, "If implemented, the measure would result in a potential revenue reduction of around Tk200 crore. Our long-term plan is to gradually phase out excise duty on bank deposits altogether."

Md Luftor Rahman, a former NBR member of the Customs Policy wing, criticised the excise duty, calling it unnecessary. "Interest on the same accounts is taxed under income tax, and banks collect VAT on service charges. Collecting excise duty in addition makes little sense," he said.

Syed Mahbubur Rahman, managing director and CEO of Mutual Trust Bank, said that excise duty is collected for convenience, as banks remit it on behalf of the NBR. He argued that the levy leads to duplication since the same amount can be subject to excise multiple times throughout the year and discourages low-income earners from keeping deposits in banks.

Current excise duty structure

The government has set a target to collect approximately Tk2,000 crore from excise duties this year. Under the prevailing rules, the duty is calculated based on the highest balance reached in an account at any time during the year.

Currently, bank deposits up to Tk3 lakh are exempt from excise duty. Deposits between Tk3,01,000 and Tk5 lakh are subject to a duty of Tk150, while those from Tk5,01,000 to Tk10 lakh incur Tk500.

Deposits ranging from Tk10,01,000 to Tk50 lakh are charged Tk3,000, and those between Tk50,01,000 and Tk1 crore carry Tk5,000. For deposits from Tk1,01,00,000 to Tk2 crore, the duty is Tk10,000, and for deposits between Tk2,01,00,000 and Tk5 crore, it rises to Tk20,000. Any deposit above Tk5 crore is liable for an excise duty of Tk50,000.

The Bangladesh Bank has started allowing a gradual depreciation of the taka against the US dollar to manage pressure from rising global energy prices, with analysts indicating there is further room for the currency to weaken.

The exchange rate has already started to depreciate gradually since 8 March, as the dollar rose close to Tk123 after remaining stable at Tk122.30 for months.

Real Effective Exchange Rate (REER), measured based on 17 currencies and incorporating both inflation and exchange rate data of major trade partners, stood at Tk126 on 29 March, indicating that the central bank has room to devalue the taka by Tk3.24 to remain export competitive.

Moreover, the exchange rate band prepared daily by the central bank, based on currency movements of trading partners, shows an upper band of Tk130 and a lower band of Tk125. The upper band suggests that the Bangladesh Bank can still allow a 5.6% depreciation until the dollar reaches Tk130.

The exchange rate band, prepared following a formula recommended by the IMF, also suggests that the current exchange rate is below the lower band.

The band was introduced in December 2024 when the Bangladesh Bank implemented greater exchange rate flexibility in line with a staff-level agreement with the IMF. This band is not publicly disclosed and is used internally to monitor the foreign exchange market.

Under the IMF formula, the Bangladesh Bank is supposed to buy dollars when the exchange rate falls below the lower band and sell dollars when it exceeds the upper band.

However, the central bank stopped buying dollars through auctions in March due to the global oil price shock, while still allowing a slower-than-expected depreciation through price guidance.

It will also refrain from selling dollars from reserves unless the exchange rate exceeds the upper band, according to a senior central bank executive.

The Dhaka Stock Exchange (DSE) has announced a reduction in its daily trading hours by 30 minutes in response to the ongoing fuel crisis, aligning its operational schedule with a government directive aimed at conserving energy.

In a notice issued today (4 April), the premier bourse said the revised trading and office hours will come into effect from today and will remain in force until further notice. The move reflects broader efforts by authorities to manage energy consumption amid concerns over fuel supply constraints and rising global energy prices.

Under the new schedule, DSE office hours will run from 9:00am to 4:00pm. The trading session will now begin at 10:00am and continue until 2:00pm, shortened from the previous closing time at 2:30 pm. The continuous trading session will take place between 10:00am and 1:55pm, followed by a five-minute post-closing session from 1:55pm to 2:00pm.

The decision comes at a time when the country is grappling with energy-related challenges, prompting the government to adopt a series of measures to optimise fuel usage across sectors. Financial markets, like other institutions, are being brought under these measures to ensure coordinated efforts in addressing the crisis.

Officials at the DSE said the adjustment is part of a compliance effort and aims to support national initiatives without disrupting market operations significantly. They added that the revised schedule has been carefully structured to maintain an efficient trading environment while contributing to energy-saving goals.

Investors and brokerage houses have been advised to take note of the new timings and plan their activities accordingly. The DSE also assured stakeholders that any further changes to the schedule would be communicated promptly, depending on the evolving situation.

The government has taken initiatives to set up nine new factories with the aim of creating employment, Khandaker Abdul Muktadir, minister for Commerce, Industries, Textiles, and Jute ministry said today (2 April).

Speaking in parliament, the minister stated that the ministry has planned to establish new industrial enterprises to eliminate unemployment.

The factories are listed below.

Urea Formaldehyde-85 (UF-85) Plant: A detailed techno-economic feasibility study is currently underway to establish a UF-85 factory on the vacant land of Ghorashal Polash Fertilizer Public Limited Company (GPFPLC), under the Bangladesh Chemical Industries Corporation (BCIC).
New TSP Fertilizer Factory: Efforts are ongoing to appoint an international consulting firm to conduct a detailed techno-economic feasibility study for a new fertilizer factory with an annual production capacity of 400,000 tonnes at TSP Complex Ltd. (TSPCL).
Starch and API Complex: Initiatives have been taken to implement a project titled "Starch Factory and Active Pharmaceutical Ingredients (API) Complex" on the premises of Khulna Newsprint Mills Ltd. (KNML) and Khulna Hardboard Mills Ltd. (KHBML). The techno-economic feasibility study and the Development Project Proposal (DPP) for this project have been completed.
Karnaphuli Paper Mills Ltd. (KPML) Expansion: Initiatives have been taken to set up a full-fledged paper mill including afforestation, a Soda Ash and Baking Soda plant, a Sodium Sulfate plant, an Activated Bleaching Earth plant, a Titanium Dioxide plant, a Sulfuric Acid plant, and a Synthetic or Polyester Fiber plant on the KPML premises. The techno-economic feasibility study is complete, and the drafting of the DPP is in progress.
Basic Chemical Factory: An initiative has been taken to establish a Chloro-Alkali and chlorine-related basic chemicals factory on the premises of Chittagong Chemical Complex (CCC).
Insulator and Sanitaryware Plant: Plans are in place to set up an eco-friendly, energy-efficient modern insulator and sanitaryware plant at the Bangladesh Insulator and Sanitaryware Factory Ltd. (BISFL).
WPP Bag Manufacturing: A pre-feasibility study has been completed to establish a WPP bag manufacturing factory as a backward linkage industry at the GPFPLC premises, utilizing existing management, land, and utilities.
New Urea Factory in Bhola: There is an initiative to set up a new urea fertilizer factory in Bhola district. Site selection activities are ongoing following the completion of a pre-feasibility study.
Modern Glass Factory: A pre-feasibility study has been completed for a modern glass factory using advanced technology on 197 acres of unused land adjacent to the Ashuganj Fertilizer Factory.

The minister further mentioned that while the Bangladesh Small and Cottage Industries Corporation (BSCIC) does not directly establish industrial enterprises, it creates industrial estates or parks where entrepreneurs set up their own factories.

Currently, there are 83 BSCIC industrial estates or parks across the country, housing 6,223 industrial units.

To eradicate unemployment, the BSCIC will take initiatives to establish more industrial estates/parks based on specific proposals, raw material availability, entrepreneur demand, and the availability of uncultivated, unused, or abandoned land through the district administration, subject to feasibility studies.

Entrepreneurs will be able to establish various industrial units in those locations.

The Bangladesh Investment Development Authority (Bida) has retreated from an earlier announcement that the government had set up a formal Private Sector Advisory Council.

Late last night, Bida issued a clarification, hours after a widely shared statement named nine prominent business leaders as the inaugural members of the body.

The Daily Star had reported on the basis of Bida’s original press release, circulated yesterday afternoon.

In the revised message posted on its Facebook page, the authority said the meeting with Prime Minister Tarique Rahman was convened to hear observations and recommendations from selected entrepreneurs and to help set priorities for private sector-led growth.

But the authority in the revised message said it was not a formal advisory council of the government or the prime minister.

“The meeting had no organisational or legal basis. However, similar engagements would continue in the future,” said Bida.

In its initial announcement, Bida Executive Chairman Ashik Chowdhury described the council as “one of the key reforms proposed by Bida”.

The first statement said the nine business leaders who attended yesterday’s meeting had been personally selected by the prime minister to serve on the council.

They were Arif Dowla, managing director of ACI; Syed Nasim Manzur, managing director of Apex Footwear; Hafizur Rahman Khan, chairman of Runner Group; Ahsan Khan Chowdhury, chairman of PRAN-RFL Group; Ziaur Rahman, managing director of Bay Group; Abdul Muktadir, chairman of Incepta Group; Md Abdul Jabbar, managing director of DBL Group; Sohana Rouf Chowdhury, managing director of Rangs Group; and Syed Mohammad Tanvir, managing director of Pacific Jeans Group.

In its clarification, the authority attributed the confusion to “misleading information circulating on social media” but did not acknowledge that its own press release had announced the council’s formation and named its members.

Nor did it explain why it had made those assertions in the first place, or what had changed in the space of a few hours.

Contacted, Ashik Chowdhury said the original purpose was to create a platform where the prime minister would hear directly from businesses. The prime minister heard from local businesses, especially those in manufacturing.

He said no notification was issued regarding the formation of the advisory council.

“So there is no legal or organisational basis.”

The government seeks to procure another 200,000 tonnes of urea amid supply concerns centring on the unrest in the Middle East. US-Israel’s war on Iran has significantly disrupted the shipment of the major crop nutrient through the Strait of Hormuz, which handles nearly one-third of global fertiliser trade.

State-run Bangladesh Chemical Industries Corporation (BCIC) floated two separate tenders on April 2, seeking quotations from international suppliers on or before April 16 to supply the input through Chittagong and Mongla ports.

The latest move comes less than a week after the corporation, which runs six urea factories and two non-urea fertiliser factories, issued revised tenders to buy 200,000 tonnes of urea from a wide range of suppliers to build stocks before the start of the major rice crop season, rain-fed Aman.

“We are opening all the windows so that we get the fertiliser wherever possible and in whatever quantity we get,” said BCIC Chairman Md Fazlur Rahman. “But we are preferring government-to-government contracts to tenders to get supplies,”

Except for the state-to-state contract, there is no plan to float any more tenders to procure urea now.

Bangladesh requires over 26 lakh tonnes of the nitrogen-based fertiliser, and three-fourths of urea demand is met through imports as local factories can not operate fully amid gas diversion to other sectors.

The government, early last month, shut five out of six urea factories in the country after the closure of the Hormuz Strait fuelled price hikes due to supply fears from the Gulf, especially Qatar, one of the world’s largest exporters of liquefied natural gas.

As of last week, the Bangladesh government had a stock of 373,100 tonnes of urea, according to the Ministry of Agriculture.

While there is no supply shortage until June, the country requires a reserve of around 600,000 tonnes of urea ahead of the July-September Aman sowing period, the BCIC chairman said.

Bangladesh imports urea mainly from Saudi Arabia, the United Arab Emirates (UAE), and Qatar, all of which ship fertiliser, gas, and oil through the Strait of Hormuz.

As supply through the shipping chokepoint has shrunk, fertiliser prices have gone up, raising concern over crop yield in the coming seasons. For example, urea surged to $725.6 per tonne in March, up by 54 percent from the pre-war period of $472 a tonne, according to World Bank Commodities Price Data (the Pink Sheet).

The BCIC chief said Saudi Arabia can ship 100,000 tonnes of urea, and his office informed the Foreign Affairs Ministry so that it can receive clearance from Iran regarding shipment through the Strait.

The UAE has informed that it could supply nearly 30,000 tonnes through other routes, he said, adding, “We have kept close communication with Russia and China.”

Officials at the agriculture ministry said the government is exploring all sources to procure both urea and non-urea fertiliser to ensure that crop production is not hampered due to a shortage.

Dhaka Bank PLC has signed a corporate health agreement with Ascent Health Limited, a diagnostic centre in Dhaka, to offer benefits on medical services.

Under the agreement, the bank’s cardholders and employees will receive up to a 30 percent discount on pathological tests, with sample collection available from home or at doctors’ chambers through Ascent Health Limited.

Md Mostaque Ahmed, deputy managing director and chief emerging market officer of the bank, and Anwarul Iqbal, chief executive officer of the diagnostic centre, signed the agreement at the bank’s head office in Dhaka recently, according to a press release.

The agreement also includes access to consultations with experienced doctors across multiple specialties, including internal medicine, respiratory medicine, rheumatology, dermatology, nephrology, neurology, gynaecology and paediatrics.

Bangladesh has moved to buy three additional liquefied natural gas (LNG) cargoes from the spot market for May delivery in its rush to secure supply amid fears of supply cuts from the Gulf region, especially Qatar, one of the world’s largest exporters of gas.

With the initiative, the government has floated tenders to buy 12 LNG cargoes from the spot market since the start of the US-Israel war on Iran on February 28.

The delivery of nine cargoes for April has been confirmed, though at much higher prices, said a senior official of Rupantarita Prakritik Gas Company Ltd (RPGCL), a state-run entity.

Bangladesh has to pay around $20 per million British thermal units (mmbtu) to buy LNG as prices have surged amid strained supply after the war on Iran began, and the conflict has inflicted damage on production sites and export hubs in the Gulf countries, including the Ras Laffan Industrial City complex in Qatar, which is home to processing units for LNG, according to reports.

Average prices of LNG cargoes were $10–11 per mmbtu during normal market conditions, said the official on condition of anonymity.

The RPGCL invited price proposals in a notice published on its website on April 1, seeking delivery between May 2 and May 9.

Bangladesh currently meets nearly 30 percent of its gas demand through imported LNG, as domestic production falls short of the daily requirement of around 2,650 million cubic feet.

The ongoing war on Iran has disrupted shipments of energy and fertiliser through the Strait of Hormuz, which handles about 25 to 30 percent of global oil and 20 percent of LNG trade.

This has pushed up global energy prices and intensified competition for supplies among key importing countries.