Techno Drugs Limited has decided to issue a coupon-bearing bond worth Tk50 crore to restructure its high-cost bank loans, as the pharmaceutical company faces declining profits alongside a sharp rise in long-term debt.

The decision was approved at the company's board meeting held on Thursday.

According to a price-sensitive disclosure, the proposed five-year bond will be structured as 25% redeemable and 75% convertible. The initiative is subject to approval from shareholders at an extraordinary general meeting (EGM) scheduled for 24 June, as well as clearance from the Bangladesh Securities and Exchange Commission (BSEC). MTB Capital Limited has been appointed as issue manager and arranger.

Company Secretary SM Abu Talha Siddik told The Business Standard that the primary objective of the bond is to manage the company's high-cost bank liabilities more efficiently.

The move comes at a sensitive time for the drugmaker, as One Bank PLC has recently filed a case in the Money Loan Court against the company and its directors to recover defaulted loans worth around Tk150 crore. The court has already issued a public notice summoning the directors in connection with the case.

Responding to the legal dispute, Siddik said the company is in discussions with the bank and hopes for a swift resolution.

The latest financing plan comes even after Techno Drugs raised Tk100 crore through an initial public offering (IPO) under the book-building method in 2024.

Audit reports show that Tk31.47 crore from the IPO proceeds was spent on machinery acquisition and construction at its Narsingdi and Gazipur facilities, while Tk30 crore was used to partially repay bank loans, including Tk25 crore to One Bank and smaller amounts to LankaBangla Finance, Alliance Finance, and IDLC Finance.

However, the company's financial position has weakened further in FY26. For the July–March period, revenue declined 11% year-on-year to Tk232 crore, while net profit fell 16% to Tk15.54 crore.

Meanwhile, long-term loans surged to Tk239.56 crore by the end of March 2026, marking a 54% increase compared to the same period last year.

Oil prices gained ​more than 3 percent on Friday, after comments by US President Donald Trump and Iran's foreign minister further dented hopes of a ‌deal to end ship attacks and seizures around the Strait of Hormuz.

Brent crude futures settled at $109.26 a barrel, up $3.54, or 3.35 percent. US West Texas Intermediate futures finished at $105.42 a barrel, up $4.25, or 4.2 percent.

Over the week, Brent has climbed 7.84 percent and WTI 10.48 percent on uncertainty over the shaky ceasefire in the Iran war.

"The tone between the US and Iran has once ​again become significantly more confrontational. While the ceasefire holds, hopes for a swift reopening of the Strait of Hormuz have faded," Commerzbank ​analysts said.

Iran has "no trust" in the United States and is interested in negotiating only if Washington is serious, Foreign ⁠Minister Abbas Araqchi said on Friday, adding that Iran is prepared to go back to fighting but also prepared for diplomatic solutions.

Trump said he ​is running out of patience with Iran and that he has agreed with Chinese President Xi Jinping that Iran cannot be allowed to have ​a nuclear weapon and must reopen the strait. About a fifth of the world's oil and liquefied natural gas normally passes through the strait, which is the gateway to the Gulf and main export route for countries such as Saudi Arabia, Iraq and Qatar.

Xi did not comment on his discussions with Trump about Iran, though China's foreign ​ministry issued a statement.

"This conflict, which should never have happened, has no reason to continue," the ministry said.

Among deals the market was looking for from ​the US-China summit, Trump said China wants to buy oil from the United States. Trump also said he could lift sanctions on Chinese companies that buy Iranian oil.

"Market ‌focus is ⁠back on the deadlock and a blockaded Strait of Hormuz, with a tail risk of renewed military escalation," said Vandana Hari, founder of oil market analysis provider Vanda Insights.

Iran's Revolutionary Guards said that 30 vessels had crossed the strait between Wednesday evening and Thursday, still far short of the 140 a day that was typical before the war, but a substantial increase, if confirmed.

"An increasing number of vessels are filtering through the strait ... although currently ​this has a more tangible impact ​on sentiment than on the actual ⁠oil balance," PVM analyst Tamas Varga said.

The strait's closure comes at a time when reserves are running thin.

"The world has consumed its oil safety net at a historic rate," Phil Flynn, senior analyst with Price Futures ​Group, said in a note. "While strategic releases and demand reduction have prevented immediate chaos, the margin for error ​is shrinking rapidly. A ⁠prolonged closure of the Strait of Hormuz points toward tighter physical markets, potential refined product shortages, and upward pressure on prices in the coming weeks and months."

Shipping analytics firm Kpler said on Thursday that 10 ships had sailed through the strait in the past 24 hours, compared with the five to seven ⁠that have ​crossed daily in recent weeks.

"Crude is trading higher on a combination of the Trump-Xi ​meeting doing little to bring us closer to a reopening of the Strait of Hormuz, and continued Ukrainian attacks on Russian refineries," Saxo Bank analyst Ole Hansen said.

Ahead of the fiscal year 2026-27 (FY27) national budget, the government faces mounting fiscal pressure amid high inflation and low investment at a time when the global geopolitical situation remains volatile, said Prof Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue (CPD).

In an interview with The Daily Star, he said the revenue sector requires immediate attention, while trade challenges and inefficiencies in the Annual Development Programme (ADP) must also be addressed.

FISCAL PRESSURES MOUNT

Bangladesh’s upcoming national budget will be one of the most challenging in recent years, as the government grapples with inflation, debt pressure, global uncertainty, and rising public expectations, he said.

The FY27 budget will need to address “multi-dimensional challenges” amid persistently high inflation, rising living costs, weak investment, and external vulnerabilities.

He said the government inherited significant economic difficulties that cannot be ignored while preparing the budget. At the same time, it must fulfil election pledges related to healthcare, education, social protection, and employment generation.

“The government is presenting the budget against the backdrop of a difficult global environment,” he said, referring to the ongoing Middle East conflict and its impact on energy prices, import costs, and macroeconomic stability.

Rahman said people expect relief after years of inflation that have eroded purchasing power and living standards, particularly among low-income groups.

“People now expect better public services and stronger social protection from the government,” he said.

To meet those expectations without excessive borrowing, the government must prioritise domestic resource mobilisation, he argued, adding that Bangladesh cannot continue relying heavily on bank borrowing and external lenders to finance expenditure.

THREE PRIORITIES FOR REVENUE

Rahman identified three immediate priorities for the revenue sector: reducing leakages, broadening the tax base, and finding innovative sources of revenue.

He said corruption, weak governance, and inefficiencies continue to undermine tax collection, depriving the government of resources needed for public spending.

Bangladesh must expand the tax net instead of repeatedly burdening the same taxpayers, he argued. Many individuals and businesses remain outside the system, while VAT collected from consumers often does not fully reach the treasury because of leakages and weak enforcement.

“I fully endorse the proposal that rates should remain relatively low but become more universal,” he said while discussing VAT and income tax reforms.

The economist also stressed the importance of technology-driven tax administration. He welcomed moves towards online VAT registration and digitalisation but warned that isolated systems would not be effective unless they are integrated and interoperable.

Drawing comparisons with India, he said tax authorities there can compare declared income with spending patterns through integrated databases. Bangladesh could adopt similar systems to strengthen compliance and reduce tax evasion.

Rahman also suggested gradually introducing new forms of taxation, including wealth and inheritance taxes, to address widening inequality. Fiscal policy, he said, should not only raise revenue but also reduce disparities in income, consumption, and assets.

REPRIORITISE SPENDING, IMPROVE IMPLEMENTATION

On the expenditure side, Rahman said the government would need to reprioritise spending to fulfil commitments related to education, healthcare, and social safety net programmes.

The ruling party has pledged to raise spending on health and education to 5 percent of GDP each and increase social protection expenditure to at least 3 percent of GDP.

Current spending remains far below those targets, meaning resources may need to be shifted from other sectors over time, he said, warning that such decisions would be politically sensitive.

He argued that infrastructure spending could be rationalised by reducing waste, corruption, delays, and cost overruns.

“If we can ensure good value for money, then infrastructure spending as a share of GDP can be reduced without compromising outcomes,” he said.

Rahman stressed that higher allocations alone would not improve public services without better implementation and governance.

He was particularly critical of inefficiencies in the ADP, saying public projects in Bangladesh frequently suffer from inflated costs, delays, and weak oversight. On average, project costs and implementation periods rise by 30 percent to 40 percent, he said.

He called for stronger feasibility studies, tighter monitoring, and greater accountability. Projects nearing completion should receive priority, while approval of new projects should be approached more cautiously given rising debt and fiscal pressure.

The economist also warned against expanding the ADP aggressively without improving institutional capacity, procurement systems, and implementation quality.

INFLATION, TRADE CHALLENGES REMAIN KEY CONCERNS

On inflation and monetary policy, Rahman said Bangladesh faces a difficult balancing act. While high interest rates are hurting investment and job creation, inflation remains too high to justify aggressive monetary easing.

However, he argued that inflation is not driven solely by monetary factors. Weak market management, high logistics costs, inefficiencies at ports and customs, and poor supply-chain governance are also contributing to rising prices.

“If the government can improve market management and reduce the overall cost of doing business, inflationary pressure can ease even without relying only on monetary policy,” he said.

Rahman also discussed Bangladesh’s external trade challenges as the country prepares to graduate from the least developed country (LDC) category.

He said export diversification, free trade agreements, and stronger compliance standards would become increasingly important in the coming years.

Bangladesh still depends heavily on a limited number of products and export markets despite years of discussion about diversification, he noted. Meanwhile, competitors such as India and Vietnam are moving aggressively to secure free trade agreements and attract foreign investment.

To remain competitive, Bangladesh must improve logistics, reduce lead times, strengthen labour and environmental standards, and create a more investment-friendly environment, he said.

He also urged the government to treat any extension of the LDC graduation transition period as an opportunity to accelerate reforms rather than delay them.

European countries have entered negotiations with Iran's Revolutionary Guards navy to secure transit for their ships through the Strait of Hormuz, according to Iranian state media, following Tehran's decision to permit passage for dozens of vessels from East Asian nations that agreed to newly imposed Iranian shipping rules.

Iran has largely restricted shipping through the strategic waterway since the outbreak of war with the United States and Israel on 28 February, 2026. Although a fragile ceasefire has been in place since 8 April, the United States has continued a naval blockade on Iranian ports, says CNA.

The Strait of Hormuz, which handles roughly one-fifth of global oil and liquefied natural gas shipments during peacetime, remains a critical artery for global energy trade. The disruption has unsettled international markets and increased Tehran's leverage over maritime traffic in the region.

Iranian officials have said commercial traffic through the strait will not return to pre-war arrangements. Tehran has already begun collecting revenue from newly introduced tolls imposed on vessels using the route.

Ebrahim Azizi, head of the Iranian parliament's national security commission, said a "professional mechanism" for managing maritime traffic would be announced soon. According to Iranian officials, the system would apply only to commercial vessels and parties that "cooperate with Iran", and would involve charges for what Tehran described as "specialised services."

Iranian authorities also said the route would remain closed to operators involved in the "freedom project", a temporary US military operation established to guide stranded commercial ships through the strait.

Iranian state media confirmed that talks were underway with European countries regarding shipping access, but did not identify the nations involved.

The Bangladesh Securities and Exchange Commission (Bangladesh Securities and Exchange Commission) has published a draft of sweeping new corporate governance rules that introduce stricter oversight and tighter controls on listed companies, with a focus on strengthening transparency, accountability and investor protection in the capital market.

The proposed framework marks a shift from the existing corporate governance code issued in 2018 by significantly tightening board composition requirements, expanding independence standards, and imposing stricter eligibility and shareholding rules for directors and key executives.

It also introduces enhanced restrictions on cross-directorships between listed companies and major market infrastructure institutions such as exchanges, depositories, clearing entities, brokers and merchant banks.

According to the draft, the new rules will apply to all companies with ordinary shares listed on the main board, SME board and alternative trading board (ATB) of the stock exchanges, as well as any public interest entity.

The draft, released today (14 May), has been opened for stakeholder feedback until 31 May. The regulator said it will review the comments before finalising the framework for implementation.

Board structure and shareholding requirements

Under the proposed framework, the board of directors of a listed company must consist of no fewer than five and no more than 20 members. For SME-listed companies, the ceiling will be 10 directors. Each board will be required to include at least one female director.

All sponsor-directors – excluding independent directors – must collectively hold at least 30% of a company's paid-up capital. Each director will be required to hold a minimum of 2% of shares, while nominated directors must hold at least 5%.

Independent directors and eligibility rules

The proposed rules increase the minimum requirement for independent directors. At least three directors, or one-third of the total board, whichever is higher, must be independent. This marks a shift from the existing requirement, which mandates at least one-fifth of the board to be independent directors.

The draft bars individuals who are currently directors of stock exchanges, depositories, central counterparty institutions, stock brokers, stock dealers, or merchant banks from serving as directors of listed companies. The only exception is where they are appointed as independent directors representing a holding company.

Senior management structure and compliance

Every listed company must appoint a managing director (MD) or chief executive officer (CEO), a company secretary (CS), a chief financial officer (CFO), and a head of internal audit and compliance (HIAC).

The draft specifies that individuals holding these positions will not be allowed to serve in executive roles in any other company simultaneously. However, the CFO or company secretary may hold the same position in another company within the same group – listed or unlisted – subject to prior approval from the Commission, for cost efficiency or technical expertise reasons.

In addition, the MD, CEO, CS, CFO, and HIAC cannot be removed from their positions without board approval. Any such decision must also be immediately disclosed to both the Commission and the stock exchanges.

The Commission said the proposed rules are designed to modernise corporate governance practices in Bangladesh's capital market and ensure stronger accountability across listed entities.

Bangladesh plans to position itself among the world’s top 20 countries in telecom and technology services within the next five years through a holistic digital economy strategy focused on connectivity, affordable access, startup growth, electronics manufacturing and skilled human resources.

The vision was outlined by Rehan Asad, the prime minister’s adviser on telecom and ICT, at a seminar titled “Telecom future: new government's vision” organised by the Telecom and Technology Reporters' Network Bangladesh (TRNB) at InterContinental Dhaka today.

Faqir Mahbub Anam, minister for telecom and ICT, and Md Emdad Ul Bari were also present at the programme.

“We are not only aiming to become a top-20 subscriber country, we want to become a top-20 service-quality country,” Rehan said, noting that Bangladesh already ranks among the top countries globally in terms of telecom subscribers but lags behind in service quality indicators.

According to different estimates, the telecom and ICT sector’s current contribution to Bangladesh’s GDP ranges from less than 1 percent to around 6 percent, but the figure could rise to 15 percent if the government develops a supportive ecosystem around the industry, he said.

“Yes, there will be challenges … But there is no reason why this sector cannot contribute 15 percent of GDP,” he said.

Rehan said that alongside network expansion, affordable devices and digital services are needed to ensure digital inclusion.

“We are talking about 4G and 5G, but if we do not focus on devices, then 4G and 5G mean nothing,” he said.

According to him, smartphone penetration in Bangladesh remains below 50 percent, while the cheapest smartphones still cost around Tk 10,000, making them unaffordable for many low-income users.

To address this, the government is working with local manufacturers, telecom operators, banks and mobile financial service providers to produce smartphones priced between Tk 5,000 and Tk 6,000 and introduce equal monthly instalment (EMI) facilities for consumers.

“If we can enable EMI, a farmer or rickshaw puller may be able to buy a smartphone through monthly payments,” he said.

The adviser also highlighted the need for stable and predictable policies to attract investment into the telecom and technology sectors.

“One of the biggest complaints from businesses is policy unpredictability. We want to provide a five-year roadmap for VAT, tax and customs policies so businesses can plan ahead,” he said.

He acknowledged concerns over the telecom sector’s high tax burden, saying operators face effective tax rates of up to 56 percent, significantly higher than the global average.

On spectrum policy, Rehan said the government’s priority is no longer limited to maximising revenue collection.

“Our priority is creating the ecosystem, the value chain and overall economic development,” he said.

The adviser also identified AI, cybersecurity, data centres and digital governance as key pillars of the government’s future technology strategy.

“Cybersecurity is absolutely critical,” he said, adding that both the public and private sectors would need to work together to improve the country’s cyber resilience.

He also drew comparisons with countries such as Vietnam and India, saying Bangladesh has the potential to become a major electronics manufacturing and export hub if it can ensure investment-friendly policies and support for entrepreneurs.

Rehan also said the government plans to strengthen the startup ecosystem through grants, policy support and financing facilities for young innovators and entrepreneurs.

Nineteen years ago, BNP finance minister M Saifur Rahman placed a national budget of Tk 69,740 crore for fiscal year 2006-07. Three governments have since come and gone, and BNP has now returned to power through a national election.

This time, Finance Minister Amir Khosru Mahmud Chowdhury is preparing to unveil the country’s 54th budget, which may exceed Tk 9.30 lakh crore for FY2026-27.

Despite the increase in size, the budget-to-GDP ratio has not changed much over the years. In 2006-07, the budget stood at around 12.68 percent of GDP, and is set to be 13.6 percent in FY27.

This suggests that while the economy has grown significantly in size, the government’s fiscal capacity has not strengthened at a comparable pace.

Bangladesh is therefore entering a phase where the scale of public spending is no longer the central issue. The more pressing question is whether the economy can sustain a larger budget amid rising debt, weak revenue mobilisation and institutional constraints.

Over the past two decades, the country’s socio-economic condition has changed noticeably. Electricity access has expanded, rural road connectivity has improved, mobile phone use has surged and internet-based communication has reshaped daily life. Large infrastructure projects such as the Padma Bridge and Dhaka Metro Rail have altered transport patterns and boosted economic activity.

These changes have also raised expectations.

Citizens now expect uninterrupted power supply, better transport systems, modern healthcare, quality education and improved urban services.

Dhaka dwellers want more metro rail lines, while people across the country want improved highways, second bridges across Padma and Jamuna and more industrial investment. As a result, public spending commitments have increased structurally. But, at the same time, fiscal space has tightened.

A growing share of the budget is now being absorbed by just operational expenditure. Interest payments on domestic and external borrowing have risen due to higher debt levels and elevated interest rates. Subsidies in energy, power and food are also high, while the proposed implementation of a new pay commission for public employees is expected to add further recurring pressure.

These factors leave less room for development spending, even as the overall budget size expands.

Weak revenue mobilisation remains a central challenge. Bangladesh continues to have one of the lowest tax-to-GDP ratios in South Asia, which limits the government’s ability to finance development without heavy borrowing.

The financial sector adds another layer of pressure. Non-performing loans have risen due to weak governance, political interference, lending irregularities and poor recovery. A fragile banking system reduces its capacity to support private investment and economic expansion.

Government borrowing from banks has also increased, crowding out credit available to the private sector and pushing up borrowing costs for businesses. The capital market has remained shallow and volatile, offering limited support for long-term financing needs. As a result, the economy remains heavily dependent on the banking sector.

Governance concerns and corruption further complicate fiscal management.

Delays in project implementation, cost overruns and allegations of irregularities in public procurement have reduced the efficiency of public spending.

A White Paper on the State of the Bangladesh Economy under the previous interim government estimated that around $234 billion may have been laundered during the previous Awami League period.

External shocks have also shaped recent economic pressures. The pandemic disrupted trade, employment and production. The Russia-Ukraine war pushed up global food and fuel prices, feeding inflationary pressure in import-dependent Bangladesh.

Inflation has remained above 8 percent since March 2023, eroding real incomes and weakening purchasing power. At the same time, war in the Middle East has added further volatility to global energy markets, increasing risks for inflation and foreign exchange stability.

Against this backdrop, Bangladesh faces a difficult policy balance.

Growth has slowed in recent years while inflation remains elevated. Expansionary fiscal measures could support growth, but they also risk worsening debt and price pressures.

Another important dimension is the role of the International Monetary Fund (IMF) under its ongoing programme. Reform commitments are expected to focus on raising tax revenue, improving banking, reducing subsidies, strengthening fiscal discipline and increasing exchange rate flexibility. While these measures may improve long-term stability, they carry short-term political and social costs.

For the finance minister, the job is not just to present a bigger budget. It is to rebuild trust in how public money is managed while dealing with limited resources and political promises.

He will have to make difficult choices. Money will need to go either to big infrastructure projects or to areas like health, education and skills.

In the end, the budget is not only about numbers. It will show how the government plans to manage a time of high expectations, tight finances, global uncertainty and weak institutions.

The Dhaka Stock Exchange (DSE) witnessed a massive retreat by international investors in April, as a combination of escalating global geopolitical tensions and persistent domestic structural hurdles triggered a wave of heavy selling.

Data from the premier bourse revealed a stark imbalance in foreign participation, with overseas investors offloading shares worth Tk124.14 crore while injecting only a meagre Tk12.06 crore into the market.

This lopsided trade reflects a deepening sense of caution among global fund managers, who appear to be scaling back their exposure to frontier markets in favour of safer havens amidst a volatile international landscape, according to the market insiders.

The overall participation of foreign investors saw a dramatic contraction during the month. Total foreign turnover in April stood at Tk136.2 crore, which was exactly 50% lower than the turnover recorded in March.

This decline in trading volume suggests that foreign institutional investors are not only selling off their positions but are also hesitant to engage in fresh buying, leading to a significant reduction in market liquidity, said insiders.

As per DSE data, foreign investment held in 130 listed companies, out of which foreign investments trimmed in 19 companies, while increases in 14 firms. Foreign participation remained unchanged in 97 firms.

According to the Central Depository of Bangladesh Limited, the number of non-resident beneficiary owner accounts stood at 43,242 as of mid-May.

The sell-off was most pronounced in fundamentally strong, large-cap companies that have traditionally been the darlings of foreign portfolios. Square Pharmaceuticals, often considered a blue-chip anchor for the market, saw the highest volume of foreign exit, with sales amounting to Tk40.72 crore. Consequently, foreign shareholding in the pharmaceutical giant dropped from 15.33% in March to 15.11% in April. BRAC Bank followed a similar trend, with foreign investors trimming their stakes by Tk37 crore, bringing their holding down to 36.22% from 36.48%.

Other major firms such as Renata, British American Tobacco Bangladesh, Marico, and Grameenphone also experienced notable foreign outflows, reflecting a broader trend of profit-taking or risk-mitigation by international funds.

In a few extreme cases, foreign investors opted for a complete exit from certain entities. During April, international fund managers liquidated their entire remaining holdings in Ring Shine Textile and Premier Bank. Conversely, the market saw a rare entry as foreign investors picked up stakes in Bangladesh National Insurance for the first time.

On the buying side, BSRM Steels emerged as the only significant beneficiary of foreign interest, attracting Tk9.50 crore in purchases and raising its foreign shareholding from 0.25% to 0.60%. Minor increases were also noted in BSRM Limited, Prime Bank, and Envoy Textile, though these were insufficient to offset the overall exodus of capital.

Market experts and researchers attribute this sharp decline to a complex mix of external and internal factors.

A senior researcher at a leading brokerage firm noted that while there was high optimism following the national elections and the formation of a new government, the expected surge in foreign investment failed to materialise. Instead, the market was blindsided by the sudden escalation of conflict in the Middle East involving the United States, Israel, and Iran. This geopolitical instability has sent shockwaves through global energy markets, creating a climate of economic uncertainty that is particularly damaging for energy-import-dependent nations like Bangladesh.

For global investors, the risk of inflation and energy insecurity in Bangladesh, exacerbated by these international conflicts, has made the domestic equity market appear increasingly risky. These external pressures have compounded long-standing domestic issues that continue to weigh on the market's attractiveness.

Analysts emphasised that the scarcity of high-quality, well-governed firms forces foreign investors to concentrate their holdings in a very small number of stocks. When sentiment shifts, as it did in April, this concentration leads to rapid and heavy sell-offs that the local market often struggles to absorb.

Furthermore, the prevalence of "junk stocks" and companies with poor corporate governance continues to deter professional fund managers. Issues surrounding transparency, inconsistent financial reporting, and weak regulatory enforcement remain significant barriers to attracting long-term institutional capital, said a managing director of a brokerage firm.

Structural hurdles, including a complex capital gains tax regime and ongoing difficulties in the repatriation of funds, also remain cited as deterrents. While the government and regulators have introduced some policy measures to address these bottlenecks, market participants argue that the impact of such reforms has yet to be felt on the ground, he added.

According to the DSE officials, the persistent foreign sell-off serves as a wake-up call for the country's capital market regulators. As foreign investors shift their stakes from top-tier firms like City Bank, Southeast Bank, Beximco Pharma, and IDLC Finance into defensive positions or out of the country entirely, the pressure on the DSEX benchmark index continues to mount.

Bangladesh offers a competitive cost structure that enables Chinese firms to maintain global price dominance while relocating production, said Mohammad A Hafiz, vice president of the Bangladesh China Club Limited.

This creates a strong advantage for companies seeking efficient manufacturing alternatives while preserving profitability and export competitiveness in international markets, he added.

Hafiz made the comments during his presentation at a daylong summit in the capital today.

The event was organised by the Bangladesh China Club Limited in collaboration with representatives from the Global Chinese General Chamber of Commerce, China, and the International Business Strategy Committee of the Guangdong-Hong Kong-Macao Greater Bay Area Business Federation.

Hafiz also said that Bangladesh serves as a gateway to the broader South Asian and ASEAN markets, providing businesses with a strategic footprint outside mainland China.

Its geographic position and growing regional connectivity make the country an attractive hub for trade, investment, and supply chain diversification, he added.

In addition, Bangladesh has demonstrated proven leadership through a strong track record of managing successful multi-billion-dollar projects and international syndicated financing in the region, he said.

This experience reflects the country’s growing capability to support large-scale industrial development and long-term foreign investment partnerships, he added.

Hafiz also said that Bangladesh is addressing concerns related to energy stability by establishing new government-to-government frameworks for long-term LNG supply and expanding floating storage and regasification unit infrastructure to ensure uninterrupted industrial continuity.

The country is also improving regulatory compliance through stronger labour law standards and enhanced professional service rules designed to protect institutional investments, he added.

In addition, specialised asset management companies and strategic advisers are being utilized to ensure that investment capital is directed toward operational growth rather than passive debt accumulation, he added.

Bangladesh continues to demonstrate strong political commitment by maintaining solid bilateral ties and engaging in dedicated policy-level dialogues to create a secure and stable environment for foreign direct investment, he said.

He added that total bilateral trade between Bangladesh and China reached $24.05 billion, heavily driven by $22.88 billion in Chinese exports to Bangladesh compared to just $1.17 billion in Bangladeshi exports to China.

Saif Uddin Ahmed, chief executive officer at the Bangladesh Foreign Trade Institute, said that in the current era of global turbulence, including issues such as US reciprocal tariffs and geopolitical tensions involving the US-Israel war on Iran, Chinese investors may find opportunities to invest in and relocate their factories to Bangladesh.

Mohammad Mamdudur Rashid, managing director of the United Commercial Bank PLC, said the bank actively facilitates trade transactions and supports Chinese partners in foreign direct investment in Bangladesh, with a dedicated Chinese desk staffed by Mandarin-speaking colleagues to ensure smooth communication and efficient service.

He further outlined future areas of collaboration, including green energy and climate technology, agribusiness and food processing, logistics and supply chains, healthcare and pharmaceuticals, education and skill development, fintech and digital banking, and tourism and hospitality.

Muzaffar Ahmed, chairman of the Sustainable and Renewable Energy Development Authority, said that Bangladesh is one of the fastest-growing economies in Asia and has made significant progress in industrialization, infrastructure development, export growth, digital transformation, and energy development.

He said that the power, energy, and mineral resources sector offers significant opportunities for international investors and strategic partners, while the government remains committed to ensuring energy security, sustainable development, and a clean energy transition for future

The Bangladesh Bank (BB) has temporarily loosened the rules so commercial banks can lend more to big borrowers, treat trade guarantees more lightly, and adjust large loan limits based on how healthy their loan books are.

In a circular issued yesterday, the banking regulator said commercial lenders may lend up to 25 percent of their capital to a single client or group until June 2028. This is 10 percentage points higher than the existing ceiling of 15 percent.

Besides, non-funded exposures, such as letters of credit (LCs), will be weighted at just 25 percent until mid-2027, down from the current 50 percent.

At the same time, banks will be allowed to extend higher large-loan limits depending on their classified loan ratios.

In the circular, the central bank said the changes are meant for easing international trade finance for businesses and industries.

However, several BB officials said the facility came after a few large industrial groups exceeded their exposure limits at a number of banks.

Business leaders welcomed the decision by the BB, but economists and bankers were critical of the move. They said that looser rules could concentrate credit further in the hands of a small number of large conglomerates and politically connected economic actors.

NEW EXPOSURE LIMITS

Under the relaxed rules, banks will be allowed to extend funded loans of up to 25 percent of their total capital to a single borrower, up from the existing limit of 15 percent.

However, the combined exposure of funded and non-funded facilities must not exceed 25 percent under any circumstances, the central bank said.

Under the new rules, the conversion factor for non-funded exposure has been reduced to 25 percent from 50 percent. This means banks will now count only 25 percent of their total non-funded exposure when calculating large loan limits.

The facility will remain in place until June 30, 2027. The conversion factor will then increase in phases, rising to 30 percent by December 31, 2027; 40 percent by December 31, 2028; and 50 percent by December 31, 2029.

As per the single borrower exposure rules, a borrower may take up to 25 percent of a bank’s capital in total exposure, including both funded and non-funded facilities. Of this, 15 percent may be funded exposure and 10 percent non-funded exposure.

Previously, funded loans were capped at 15 percent of a bank’s capital. Under the new rules, banks may extend funded loans of up to 25 percent, but only if no non-funded exposure is provided. If funded exposure stands at 20 percent, a further 5 percent may be non-funded exposure.

For example, an LC worth Tk 100 was previously converted into funded exposure at Tk 50. Under the new framework, only Tk 25 will be counted.

The central bank has also revised limits on large loans based on banks’ classified loan ratios.

Under the previous rules, banks with classified loans of up to 3 percent could extend large loans amounting to 50 percent of their total loans and advances. Under the new rules, this threshold has been extended up to 10 percent.

Banks with classified loans between 10 percent and 15 percent may now maintain large loans of up to 46 percent of total loans and advances. Those with ratios between 15 percent and 20 percent will be allowed up to 42 percent, while banks in the 20 percent to 25 percent range may go up to 38 percent. For those between 25 percent and 30 percent, the ceiling will be 34 percent.

Where classified loans exceed 30 percent, large loans will be capped at 30 percent of total loans and advances.

The central bank has also raised the overall ceiling for large loans to 600 percent of a bank’s capital, up from 400 percent.

WAS IT NECESSARY NOW?

Several central bank officials, speaking on condition of anonymity, said a few large industrial groups have exceeded their exposure limits at several banks. The facility has been introduced in response to their requests.

A managing director of a commercial bank, who asked not to be named, said the current condition of the banking sector is not good.

“So, this kind of forbearance was not necessary at this time,” he said, adding that it sends the wrong signal and is contrary to international standards.

However, Mir Nasir Hossain, former president of the Federation of Bangladesh Chambers of Commerce & Industry (FBCCI), welcomed the central bank’s move.

He said the economy has expanded and many large companies often need consortium financing.

“Increasing the exposure limit will be beneficial for trade and business. It is a business-friendly decision,” said Hossain.

Ashikur Rahman, principal economist at the Policy Research Institute of Bangladesh, took a different view.

“At a time when concerns over governance, non-performing loans, and weak risk management already plague the banking sector, such relaxation may deepen systemic vulnerabilities rather than strengthen financial intermediation,” Rahman told The Daily Star.

He said that excessive concentration of lending not only undermines diversification of bank portfolios, but also amplifies the “too-connected-to-fail” problem within the financial system.”

The economist argued that a more prudent long-term approach would gradually steer large borrowers towards corporate bond issuance and capital market financing, reducing reliance on banks for major industrial projects.

“Deepening the bond and equity markets is essential if Bangladesh wishes to build a more balanced and resilient financial architecture. Unfortunately, this decision appears to move in the opposite direction, reinforcing existing distortions instead of correcting them,” he commented.

The banking sector's total capital shortfall stood at Tk2.78 lakh crore at the end of the December quarter of 2025, a slight decline from the previous quarter mainly due to Bangladesh Bank's loan rescheduling policy support, according to a central bank report.

The capital shortfall had stood at Tk2.82 lakh crore at the end of the September quarter of the same year.

A bank capital shortfall occurs when a bank's own capital and reserve funds fall below the minimum level set by the central bank. Under international standards, banks are required to maintain a specific amount of capital against their risk-weighted assets.

Bangladesh Bank data shows that 20 banks were in capital deficit at the end of the December quarter.

Bankers and economists say the crisis stems from years of aggressive lending, weak oversight, and politically influenced loan approvals. The widening capital gap is also restricting banks' lending capacity and putting pressure on international financing, signalling broader risks for the economy.

Insiders said most state-owned banks in Bangladesh have been operating for years with virtually no capital base. The government, as owner of these banks, had previously injected thousands of crores of taka from taxpayers' money to help them recover. Despite that support, the banks have failed to overcome their capital shortages.

They added that compared with other South Asian economies, Bangladesh's banking sector remains in an extremely fragile capital position.

The report also showed that the sector's capital-to-risk weighted assets ratio (CRAR), a key indicator of financial strength, fell to negative 2.64% at the end of December. International regulatory standards require banks to maintain a minimum CRAR of 12.5%.

Non-performing loans (NPLs) in the banking sector stood at Tk5.57 lakh crore, or 30.60% of total outstanding loans, at the end of December 2025.
Deficits across banks

According to the central bank report, four state-owned banks had a combined capital shortfall of Tk37,364.82 crore at the end of the December quarter.

Agrani Bank's shortfall stood at Tk6,534 crore, BASIC Bank's at Tk4,158 crore, Janata Bank's at Tk22,482 crore, and Rupali Bank's at Tk4,189 crore.

Seven Islamic banks recorded a combined capital shortfall of Tk1,74,087 crore.

EXIM Bank's deficit stood at Tk25,914 crore, First Security Islami Bank at Tk64,162 crore, Global Islami Bank at Tk15,693 crore, Islami Bank Bangladesh at Tk6,597 crore, ICB Islamic Bank at Tk2,012 crore, Social Islami Bank at Tk30,053 crore, and Union Bank at Tk29,653 crore.

Meanwhile, seven private commercial banks recorded a combined capital shortfall of Tk33,138 crore.

AB Bank's shortfall stood at Tk6,551 crore, BCBL at Tk2,065 crore, Citizens Bank at Tk81.70 crore, IFIC Bank at Tk4,704 crore, National Bank at Tk9,032 crore, Padma Bank at Tk5,837 crore, Premier Bank at Tk4,866 crore, Bangladesh Krishi Bank at Tk30,751 crore, and Rajshahi Krishi Unnayan Bank at Tk2,704 crore.

Why capital shortfall declined over 3 months

A senior Bangladesh Bank official said the main reason behind the decline in capital shortfall between the September and December quarters was the central bank's loan rescheduling policy. Rescheduling helped classify some defaulted loans as regular, reducing the amount of required provisioning against bad loans. Since provisions are maintained from banks' capital, the lower provisioning requirement reduced the capital deficit.

Former World Bank Dhaka Office Lead Economist Dr Zahid Hussain said the apparent improvement in capital shortfall over the three months was largely artificial and driven by rescheduling.

"The improvement seen in capital shortfall is the impact of rescheduling. It is creating an artificial improvement. State-owned banks, Islamic banks, and the latest generation of private commercial banks are mainly responsible for the shortfall. Banks that were already in deficit remain in deficit," he said.

He added, "It is completely unacceptable for banks to remain in a capital deficit. If a bank's CRAR falls below 10%, the central bank should take action. But that is not happening in our country."

Zahid Hussain questioned whether the sector could continue relying on rescheduling indefinitely, warning that the banking sector would remain weak without meaningful reforms. He noted that Bangladesh Bank had initially barred banks with capital shortfalls from paying staff bonuses, but later backed away from the decision.

"Instead of repeated rescheduling, writing off bad loans would be a better option," he said.

Two reasons why rescheduling is unsustainable

According to Dr Zahid Hussain, there are two major reasons why repeated loan rescheduling is unsustainable.

First, rescheduling weakens banks' balance sheets and erodes capital. He compared it to "continuous bleeding" in the human body, gradually weakening financial institutions over time.

Second, it creates a moral hazard in society. When borrowers see repeated concessions despite non-payment, they become more likely to spend borrowed money on luxury consumption, such as expensive cars or foreign travel, rather than productive investment.

"As a result, honest borrowers become discouraged, while wilful defaulters are emboldened further. Overall, the trend is undermining discipline in the banking system and weakening the sector's long-term sustainability," the economist added.

Most listed banks posted higher profits year-on-year in the first quarter this year, buoyed by higher gains from investments in government securities.

While interest income grew during the period, interest payments to depositors and lenders also jumped due to higher deposit rates, squeezing net interest income. In such a situation, higher gains from T-bonds and T-bills offset the decline in net interest income and boosted lenders' profits.

As of Wednesday, some 23 banks had published financial data for January-March (the first quarter) this year, out of 36 listed banks (five banks are under a merger process).

Of them, 12 reported year-on-year profit growth, five saw their profits decline, three endured an increase in losses and the results of another remained almost flat, while Islami Bank entered the red again in the March quarter, according to the unaudited financial statements of the lenders.

The top performers include BRAC Bank, City Bank, Dutch-Bangla Bank, Uttara Bank, Jamuna Bank, Midland Bank, Mutual Trust Bank, NRB Bank, Shahjalal Islami Bank, Southeast Bank and United Commercial Bank. They posted growth ranging from 6.5 per cent to 194 per cent.

Among them, BRAC Bank posted the highest profit of Tk 6.96 billion, followed by Dutch-Bangla Bank with Tk 2.61 billion, City Bank with Tk 2.41 billion, Prime Bank with Tk 2.08 billion, Eastern Bank with Tk 1.99 billion and Southeast Bank with Tk 1.32 billion in the January-March quarter this year.

BRAC Bank's consolidated profit jumped 44 per cent year-on-year in January-March this year, buoyed by substantial earnings from investments and contributions from subsidiaries.

The leading bank's net interest income grew 21 per cent year-on-year to Tk 4.98 billion while investment income jumped 36 per cent, leading to impressive profit growth.

Dutch-Bangla Bank's profit climbed a whopping 195 per cent despite a 3 per cent year-on-year growth in net interest income. Its investment income grew 41 per cent, helping it achieve higher profits year-on-year.

City Bank's net profit more than doubled year-on-year to Tk 2.41 billion in the March quarter, driven by growth across core income streams.

"While I am happy with such a strong increase in profit, I am equally concerned about the sharp slowdown in credit growth in the first quarter," said City Bank Managing Director and Chief Executive Officer Mashrur Arefin in a statement.

"The direction in which credit growth in our sector is heading is, quite frankly, a matter of great concern," he said.

Improved asset quality helped optimise provisioning levels, further supporting City Bank's bottom line.

City Bank's income from loans rose 14 per cent year-on-year to Tk 1.30 billion, while investment income grew more sharply, climbing from Tk 6.03 billion to Tk 10.14 billion and accounting for 32 per cent of total operating income.

Eastern Bank reported a 28 per cent year-on-year growth in earnings in the March quarter, supported by strong investment income, higher foreign exchange earnings and lower provisioning.

"We continue to remain focused on maintaining strong asset quality, liquidity and capital strength while ensuring superior financial results for our shareholders," said Hassan O. Rashid, managing director of EBL, in a statement.

With private-sector credit demand slowing, EBL channelled a larger share of its funds into government securities rather than loans. It maintained strong asset quality, with its non-performing loan (NPL) ratio standing at 2.8 per cent on a standalone basis as of March this year, almost unchanged from 2.79 per cent a year ago and significantly below the industry average.

Akramul Alam, head of research at Royal Capital, said the well-performing banks have always been able to keep operating costs down and mobilise funds at relatively low costs, riding on their excellent market reputation.

The trusted banks also witnessed deposit migration as clients of weak banks transferred their funds to well-governed banks, he said.

As private-sector credit demand remained weak amid persistent economic uncertainties, banks with high liquidity preferred to invest their excess funds in risk-free government securities and reaped handsome returns.

"Banks with low bad loans could invest more in Treasury bonds. These returns were risk-free and fully secured, requiring no provisions, which supported their profit growth," Mr Alam added.

During the same period, some banks suffered due to poor asset quality and substantial bad loans, forcing them to set aside huge amounts of provisions.

The bad loans that the banks had tucked away by taking advantage of the political clout of the Awami League-led regime have come to light since the 2024 political changeover.

"If a bank has a high volume of bad loans, it cannot earn interest income from them. Moreover, it has to keep provisions against the loans from profits, hitting the bottom line," Alam explained.

For example, National Bank's financial woes deepened as the bank's losses increased by a massive 410 per cent year-on-year to Tk 11.33 billion in the first quarter ended March this year.

AB Bank's losses escalated 223 per cent year-on-year to Tk 8.25 billion while IFIC Bank's losses soared 72 per cent year-on-year to Tk 8.61 billion in January-March this year.

Islami Bank entered into fresh losses of Tk 2.88 billion in January-March, against profits of Tk 298 million in the same quarter last year, due to higher provisioning requirements and a negative net interest margin.

Bangladesh Bank has reduced the maximum penal interest rate on overdue loans and loan instalments to 0.5 percent from 1.5 percent to support investment and boost productivity amid ongoing global economic challenges.

The central bank issued a circular on this decision yesterday.

Under the revised instruction, if a loan or instalment remains fully or partially overdue for a certain period, banks will be allowed to charge a maximum penal interest of 0.5 percent for the duration of the overdue period.

For running and demand loans, the penal interest may be applied to the entire outstanding amount. For term loans, it will apply only to the overdue instalment. Earlier, banks were allowed to charge up to 1.5 percent penal interest on overdue loans and instalments.

The central bank said the decision was taken in view of the current global economic situation and to encourage investment and improve productivity.

All other instructions will remain unchanged, the circular added. All other instructions will remain unchanged, the circular added. Actions already taken under the previous circular will also remain valid.

The directive came into immediate effect and was issued under Section 29(2)(c) of the Bank Companies Act, 1991.

The government yesterday fixed the price of rawhide to be generated during the upcoming Eid-ul-Azha, with the price of salted cowhide in Dhaka increased by Tk 2 per square foot (sqft) from last year.

The price of salted cowhide in Dhaka have been set at Tk 62 to Tk 67 per square foot, up from last year’s Tk 60 to Tk 65.

Outside Dhaka, the price of cowhide has been fixed at Tk 57 to Tk 62 per square foot, compared to last year’s Tk 55 to Tk 60, according to a statement from the Commerce Ministry.

Commerce Minister Khandakar Abdul Muktadir announced the new rates at a press conference at his secretariat office in Dhaka following a meeting of the committee formed to ensure proper management of Qurbani-related matters.

The prices have increased by Tk 2 per square foot (sqft) compared to last year
The price of salted goat skin has been set at Tk 25 to Tk 30 per square foot, while she-goat skin will cost Tk 22 to Tk 25 per square foot.

The minister also said the government will provide salt worth Tk 17.60 crore free of cost for preserving hides.

Leather preservation activities will be carried out across the country by traders, mosques and madrasas.

He added that the government is working to ensure that no hides are wasted during the upcoming Eid festival.

District and upazila administrations will provide training to representatives of mosques and madrasas so they can properly preserve the hides of sacrificial animals.

Global oil supply will not meet total ‌demand this year as the Iran war wreaks havoc on Middle East oil production, the International Energy Agency said in its monthly oil market report on Wednesday.

The US and Israel’s war with Iran, subsequent damage to Iran and its Gulf neighbours’ oil infrastructure and the effective closure of the Strait of Hormuz ​have caused the largest oil supply crisis in history, sending oil prices skyrocketing.

“Our latest supply and demand estimates imply that the market will remain severely undersupplied through the end of 3Q26, even assuming the conflict ends by early June,” the Paris-based agency said, adding that the second-quarter deficit will be as stark as ​6 million bpd.

The IEA’s base-case forecast is for a gradual resumption of traffic through the strait from the third quarter onwards, it ​said, which could see the market return to a “modest surplus” by the fourth quarter, allowing depleted stocks to begin to rebuild.

Supply losses led to a ‌246 million barrel drawdown in global oil inventories in March and April, the IEA said, which could increase price volatility ahead of the peak summer demand period.

The 32-member IEA coordinated the largest-ever release of 400 million barrels of oil from strategic reserves in March in a bid to calm markets. It said around 164 million barrels of that total has already been released.

Overall global oil supply will fall by around ​3.9 million barrels per day ​across 2026 due to the ⁠war, the agency said, slashing its previous forecast, which had projected a 1.5 million bpd drop.

DEMAND ALSO UNDER PRESSURE FROM WAR

The IEA now sees demand falling by 420,000 bpd this year, compared to a ​previous forecast of an 80,000 bpd drop.

Consumption is also under pressure due to the war as ​price spikes lead ⁠to demand destruction and slower economic growth, it said.

Oil prices were little changed on Wednesday, with Brent futures trading at $106.93 at 0805 GMT, down 84 cents from the previous close and 1 cent higher than their level at 0759 GMT before the report was published.

The IEA said ⁠it will ​publish its first supply and demand forecasts for 2027 in its June report - ​a delay from April caused by the war - while its 2026 annual oil report will be delayed from June 17 with no new date yet set for its ​release.

Later on Wednesday, rival forecaster OPEC will publish its own monthly oil market report.

A US federal appeals court on Tuesday temporarily paused a ruling declaring President Donald Trump's global 10-percent tariffs illegal, granting a government request to suspend the decision pending appeal.

Trump imposed the temporary 10-percent duty in February, shortly after the Supreme Court struck down many of his global tariffs.

On May 7, the US Court of International Trade (CIT) blocked the tariffs from being implemented against two companies and the state of Washington. That decision was to take effect on Tuesday.

The US Court of Appeals for the Federal Circuit on Tuesday issued a brief order that included an administrative stay on the CIT's order, setting a schedule for both sides to file briefs on the matter.

In its motion for a stay, the Trump administration argued that the CIT's decision should be stayed pending the full run of government appeals -- up to the Supreme Court, if necessary.

It argued that if it issued refunds on the 10-percent global tariff, only to have an appeals court uphold its position, it would be unable to pursue economic redress.

"Plaintiffs, conversely, can be made whole through refunds, including interest, if the tariffs are ultimately held unlawful and refundable," the government said.

The court, however, only granted an administrative stay for the period while the court considers the motions for a stay pending appeal.

The Trump administration has said the new tariff was meant to deal with balance-of-payments deficits, citing Section 122 of the Trade Act of 1974.

The 10-percent global tariff under Section 122 is valid until late July unless extended by Congress.

The Trump administration has also been pursuing other means to impose tariffs to replace those struck down by the Supreme Court.

US authorities have opened investigations into dozens of trading partners over forced labor and overcapacity allegations -- which could lead to fresh tariffs or other action.

Trump's sector-specific tariffs on goods like steel, aluminum and autos remain unaffected by these legal challenges.

The Supreme Court's striking down of the majority of Trump's tariffs was a blow to the Republican president, after he made the levies a signature economic policy.

Since the decision, businesses have rushed for refunds.

US Customs and Border Protection (CBP) estimated in March that more than 330,000 importers could be eligible for refunds after the Supreme Court's decision.

The tariffs that were struck down earlier, imposed under the International Emergency Economic Powers Act (IEEPA), collected approximately $166 billion in duties and estimated deposits.

On Tuesday, CNBC reported that businesses had begun to receive refunds, in line with a CBP timeline released earlier this month.

CBP did not immediately respond to an AFP request for comment.

Foreign ministers from the BRICS group of nations, including Iran and Russia, meet in India on Thursday, with the Middle East conflict and related fuel crisis set to dominate discussions.

India, which holds the BRICS chair this year, is hosting the two-day gathering of foreign ministers from the expanded bloc, which now includes Iran and the United Arab Emirates -- countries at odds over the conflict launched by the United States and Israel on February 28.

India's foreign ministry said talks will focus on "global and regional issues of mutual interest", spokesman Randhir Jaiswal told reporters.

Iranian Foreign Minister Seyed Abbas Araghchi arrived in New Delhi late Wednesday, Iran's embassy in India said.

Russian Foreign Minister Sergey Lavrov is also attending. He met his Indian counterpart Subrahmanyam Jaishankar after arriving in New Delhi on Wednesday evening.

Jaishankar said in a statement that their discussions included "trade and investment, energy and connectivity" as well as "global and multilateral issues".

"Our political cooperation is even more valuable in an uncertain and volatile global environment," Jaishankar added.

Disruptions around Gulf shipping routes and the Strait of Hormuz continue to drive volatility in oil and gas markets, increasing pressure on energy-importing economies, including India.

The conflict involving Iran has added strain to India's economy, heavily reliant on Middle Eastern energy supplies and fertiliser imports, and has cast uncertainty over New Delhi's growth outlook.

BRICS was created in 2009 as a forum for major emerging economies seeking greater influence in institutions dominated by Western powers.

The grouping, originally comprising Brazil, Russia, India, China and South Africa, has since expanded, as members sought to boost the bloc's global political and economic influence.

It now includes Egypt, Ethiopia, Iran, Indonesia and the United Arab Emirates, although it remains unclear whether representatives from all member states will attend.

India will hold a leaders' summit later this year, and the foreign ministers will also meet with Prime Minister Narendra Modi, the foreign ministry said.

With deep divisions among some members, including over the Middle East war and criticism of Western powers, it was not clear whether a joint statement would be released at the meeting's end.

"We will let you know as things progress," India's foreign ministry spokesman Jaiswal added.

bKash Limited, the country's largest mobile financial services (MFS) provider, has reported a 40% increase in net profit, reaching Tk184 crore, as revenue continued to grow strongly across successive quarters.

According to the unaudited financial statement of bKash, a subsidiary of BRAC Bank, the company's net revenue rose by 10% to Tk1,802 crore in the first quarter of 2026.

Speaking to TBS, bKash Chief Financial Officer (CFO) Moinuddin Mohammed Rahgir said, "bKash has consistently demonstrated the sustainability of its business model while continuing to support a more inclusive financial ecosystem for millions of Bangladeshis."

The company's persistent investments in technology, regulatory compliance and cyber security have helped strengthen customer trust and increase engagement across its platform. With an increasing proportion of its customer base now transacting regularly, reflecting growing confidence in digital financial services, said CFO.

This higher level of usage has contributed to growth in both revenue and profitability. Looking ahead, bKash will continue investing in a stronger financial ecosystem, digital commerce and payment solutions as Bangladesh moves toward a more cashless and digitally empowered economy, he further added.

Founded in 2010 as a joint venture between BRAC Bank and US-based Money in Motion LLC, bKash began commercial operations in 2011. It remained profitable until 2018 before facing significant losses between 2019 and 2021.

The company returned to profit in the July-September quarter of 2022 and has maintained consistent profitability since then, according to officials.

From the beginning, the company's investors have followed a "patient-capital" approach. Instead of taking dividends, they have continuously reinvested profits back into the business. This strategy has enabled bKash to build a strong technological foundation and scale its services effectively.

BRAC Bank currently holds a 51% stake in bKash, while other major shareholders include Money in Motion LLC (16.45%), Alipay Singapore E-Commerce (14.87%), International Finance Corporation (10.36%), and SVF II BEAM (DE) LLC (7.32%).

According to bKash, it currently has over eight crore customers, along with 3.50 lakh agents.

As of now, bKash charges Tk18.50 per thousand for cash out while Tk5 for each fund transfer to another account.

The government has approved the highly discussed Padma Barrage Project at an estimated cost of Tk34,347 crore.

The approval was granted during a meeting of the Executive Committee of the National Economic Council (Ecnec) held at the Secretariat, chaired by Prime Minister Tarique Rahman, today (13 May). Eight other projects were also approved.

The barrage is aimed at addressing water shortages in the Padma River during the dry season, revitalising the river system, and improving overall water and environmental management in the country's south-western region.

Bangladesh Poribesh Andolon (Bapa) has voiced concern over the government's move to advance the barrage project "before carrying out transparent studies and public consultations on its potential benefits and risks."

According to project documents, the barrage at Rajbari's Pangsha will store around 2,900 million cubic metres of water to strengthen water management in the south-western region.

The project aims to ensure regulated dry-season flow from January to May in the Ichhamati-Mathabhanga, Gorai-Madhumati, Chandana-Barasia, Boral, and Ichhamati river systems. It will also support water supply for the Godagari Pump House, the Ganges-Kobadak irrigation project, and the Rooppur Nuclear Power Plant.

Water supply will be ensured for around 2.88 million hectares of cultivable land across Kushtia, Faridpur, Jashore, Khulna, Barishal, Pabna, and Rajshahi.

The project also targets 113MW of hydropower generation and plans to use the barrage deck as a multi-purpose corridor for roads, power transmission lines, and gas pipelines.

According to the proposal, the project is expected to result in an annual increase of 2.39 million tonnes in rice production and 2.34 lakh tonnes in fish production.

The total estimated cost of the project stands at Tk50,443.64 crore. However, the Project Evaluation Committee recommended a phased implementation, proposing Tk34,497 crore for the first phase. Eventually, Tk34,347cr was approved at today's meeting. Officials said completion is tentatively scheduled for June 2033, with full financing from government resources.
Water security and environmental protection

According to Water Development Board (WDB) officials, the project is not just an infrastructure project; it could become a central solution for water security, food security, and environmentally sustainable development in Bangladesh.

"The barrage could improve the lives of millions of people directly and indirectly, while bringing major positive changes to agriculture, fisheries, industry, and the environment," an official added.

Since the construction of the Farakka Barrage in the 1970s, upstream water diversion has significantly reduced the natural flow of the Padma River during the dry season. This has increased salinity intrusion in rivers and canals in the south-western region, adversely affecting agriculture, fisheries, forestry, and river navigation. It has also put the biodiversity of the Sundarbans under severe threat.

WDB officials noted that dry-season flow in the Padma-Ganges system was around 70 thousand cusecs before the Farakka Barrage. Since 1975, upstream withdrawal has at times reduced flow to 10-20 thousand cusecs or less. Livelihoods across 20 to 25 Padma-dependent districts have faced severe disruption.

This has increased salinity, river erosion, siltation, disrupted navigation, and reduced irrigation and fisheries output. Excessive salinity has also caused widespread "top dying" in Sundarbans trees.

Under the 1996 Ganges Water Sharing Treaty, the two countries share the river's flow at Farakka from 1 January to 31 May each year. The 30-year treaty expires this year.

The Padma Barrage Project covers around 37% of Bangladesh's total geographical area, spanning four divisions, 26 districts, and 163 upazilas.

Infrastructure details

The project includes a 2.1km long main barrage with 78 spillways, 18 undersluices, fish passes, a navigation lock, and guide embankments. Three offtake structures will be built for the Gorai, Chandana, and Hisna rivers.

For river management, 135.6km of dredging will be carried out in the Gorai-Madhumati system, and 246.46km of re-excavation will be undertaken in the Hisna system.

Officials further mentioned that the barrage would create a 165km in-stream reservoir without major additional land acquisition, opening new opportunities for tourism, fisheries, and local economic activity.

Feasibility studies

Bangladesh has been exploring the idea of a Ganges Barrage since the 1960s, with the first study launched in 1961 by the then EPWADA, now the Bangladesh Water Development Board (BWDB).

Between 1960 and 2000, four pre-feasibility studies were conducted. In 2002, the Water Resources Planning Organisation recommended that the barrage be built either at Thakurbari in Kushtia or at Pangsha in Rajbari. Detailed feasibility studies and engineering designs were later carried out between 2009 and 2016.

Meanwhile, Bangladesh and India continued technical-level discussions. In October 2016, experts from both countries conducted joint site visits and meetings in Dhaka, followed by the creation of a joint technical sub-committee to facilitate data sharing.

In January this year, towards the end of the interim government's tenure, the project was sent to the Planning Commission for approval after nearly six decades of discussion.

An attempt was also made to place it before the 25 January Ecnec meeting. However, the then planning adviser Wahiduddin Mahmud said approval should not be rushed, given the project's high cost.

On 6 May, the Planning Commission and the Ministry of Water Resources briefed the prime minister on the project and reviewed its key components. The prime minister directed the inclusion of an assessment of the project's expected GDP contribution in the proposal.

Employment and social impact

During implementation, the project is expected to generate around 12.25 crore man-days of employment for about 47,950 workers and create approximately 9.27 lakh direct and indirect jobs. Plans also include seven satellite towns and modern rural townships for around 1.5 lakh families across 3,450 acres.

The feasibility study estimates annual economic returns of around Tk8,000 crore and a 0.45% contribution to GDP growth based on FY25. The project is also expected to reduce salinity intrusion in Satkhira, Khulna, and Bagerhat, helping restore the ecological balance in the Sundarbans and surrounding coastal areas.

Nine projects approved

The Ecnec meeting approved a total of nine projects worth Tk36,695.72 crore, including the Padma Barrage project. Of the total, Tk36,490.93 crore will come from government funding, while Tk204.79 crore will be financed from the concerned agencies' own funds.

Among the approved projects, three are new, five are revised, and one has received a time extension.

Other approved projects include: the Establishment of Chattogram Muslim Institute Cultural Complex (2nd revised), Construction of Multi-storey Building for the Department of Public Libraries (2nd revised), Upgradation of Existing Mother and Child Welfare Centres in District Towns into 30-bed Facilities (1st phase), Support Infrastructure Construction for Hi-Tech City-2 (3rd revised), Construction/Reconstruction of Government Children's Homes and Chotomoni Nibash (2nd revised), Construction of SM Barrack Complex to solve soldiers' housing shortage at Savar Cantonment, and Chattogram City Outer Ring Road (Patenga to Sagorika) (5th revised).

The meeting also approved one project under the power, energy and mineral resources ministry: Construction of Gas Pipeline from Dhanua to Mymensingh to supply gas to the Mymensingh Combined Cycle Power Plant (1st revised).

The meeting was also informed about two projects costing below Tk50 crore that had already been approved by the Planning Minister. These are: Infrastructure Development of Mymensingh Zilla School, Mymensingh, and Construction of Airmen Barrack Complex at BAF Base Kurmitola.

Bapa expresses concern

In a press statement signed by Bapa President Professor Dr Nur Mohammad Talukdar and Acting General Secretary SM Mizanur Rahman, the organisation alleged that the proposal does not properly address possible negative impacts.

According to the organisation, sedimentation upstream of the barrage could raise the riverbed and increase flooding and riverbank erosion along a 145-kilometre stretch from Pangsha to Rajshahi. It also warned that diverting water to the southwest during the dry season could reduce flows in central rivers, including the Arial Khan, and allow salinity to move further inland through the Meghna estuary.

BAPA further argued that the project could weaken Bangladesh's future efforts to secure a greater share of Ganges water from India during the dry season.

Instead of rushing ahead with the barrage, the organisation urged the government to strengthen negotiations with India over fair water sharing, renew the Ganges treaty accordingly, and restore natural connections between the Ganges and its distributary rivers inside Bangladesh.

Eastern Bank PLC (EBL) posted a 28% year-on-year rise in consolidated net profit in the first quarter of 2026, driven by higher investment income and strong foreign exchange earnings, says a press release.

According to the bank's January-March financial statement, consolidated profit after tax rose to Tk199 crore from Tk155 crore in the same period last year.

Consolidated earnings per share increased to Tk1.24 from Tk0.97 a year earlier, while net asset value per share rose to Tk32.75 from Tk26.41.

EBL Managing Director Hassan O Rashid said the bank delivered resilient performance despite slower private sector credit growth.

"We continue to remain focused on maintaining strong asset quality, liquidity and capital strength while ensuring superior financial result for our shareholders." he added.

The bank's standalone non-performing loan ratio stood at 2.80%, almost unchanged from 2.79% a year earlier and well below the industry average.

EBL's standalone capital-to-risk weighted assets ratio was 16.71%, higher than the regulatory requirement of 12.5%.

By the end of March 2026, deposits grew 20% year-on-year to Tk56,207 crore, while standalone total assets rose to Tk76,961 crore.