Bangladesh Bank (BB) has clarified that no final decision has been taken regarding the issuance of digital bank licences, amid reports published in several national dailies.

As part of the government's initiative to expand technology-driven inclusive financial services and build a "Cashless Bangladesh," Bangladesh Bank issued a public notice on August 26, 2025, inviting applications for establishment of digital banks. Applications received within the stipulated timeframe are currently being evaluated in accordance with relevant policies and prescribed procedures.

The evaluation process is being conducted in phases by three separate committees: the Technical Evaluation Committee (TEC), the Business Evaluation Committee (BEC) and the Financial Evaluation Committee (FEC).

At the 447th meeting of the Board of Directors held on February 16, 2026, progress reports on the ongoing evaluation process were presented to the Board alongside other agenda items, it said.

According to the central bank, discussions at the meeting were limited strictly to procedural aspects, including the evaluation process and criteria. No decision regarding the granting of digital bank licenses was taken at the meeting.

However, on the same day, a small group of bank officials reportedly organized a press conference on the digital bank licensing issue without prior authorisation from the appropriate authority. Despite the absence of any decision-making agenda on the matter, several national newspapers published reports without adequately verifying the information, leading to what the central bank described as misleading coverage.

Bangladesh Bank expressed concern that such reports could create confusion and misperceptions among the public. The central bank urged media outlets to verify information with the appropriate authorities before publication and to avoid one-sided reporting on controversial matters. It also called on the media to uphold responsible journalism by presenting the views of all relevant parties in the public interest.

Shares dipped and oil prices dropped back Tuesday as Tehran gave an encouraging response during talks with US officials in Geneva on Iran’s nuclear programme, after days of escalating rhetoric from President Donald Trump.

Oil prices had earlier risen after Trump ramped up threats towards Iran, a large crude producer, but Iranian Foreign Minister Abbas Araghchi “a new window of opportunity has opened”.

“We are hopeful that negotiation will lead to a sustainable and negotiated solution,” he said, though he said “Iran remains fully prepared to defend itself against any threat or act of aggression”.

West Texas Intermediate was down 0.2 percent at $62.75 per barrel after earlier jumping 1.5 percent, while international benchmark Brent North Sea Crude slipped 1.4 percent to $67.64. “There’s speculation that Iran could agree to dilute its most highly enriched uranium in exchange for the full lifting of financial sanctions, but it’s not clear if that will be enough to seal a deal between the two parties,” said Aarin Chiekrie, analyst at Hargreaves Lansdown.

Wall Street was off in early trading with the tech-heavy Nasdaq giving up one percent and the Dow sliding around 0.3 percent and the broader-based S&P 500 was off 0.2 percent.

“Insurance brokers, wealth advisors, real estate services, and logistics were all in the firing line last week, and investors are cautiously watching for what slice of the market could be next on the AI hit list,” Chiekrie added.

European stocks steadied in early afternoon deals after Tokyo closed lower, with Chinese markets again shut for the Lunar New Year.

In foreign exchange, the dollar rose against the British pound as official data showed UK unemployment rising to a five-year high.

Analysts said the reading of 5.2 percent for the final quarter of last year increased the likelihood of the Bank of England cutting its benchmark interest rate next month.

The greenback was also higher versus the euro but fell against the yen.

Europe’s biggest economy Germany is unlikely to rebound in 2026 as geopolitical uncertainty, high costs and weak domestic demand weigh on growth, the country’s Chamber of Industry and Commerce said Tuesday.

Germany returned to weak growth in 2025 after two years of recession.

India’s Adani Group said Tuesday it plans to invest $100 billion by 2035 to develop “hyperscale AI-ready data centres”, a boost to New Delhi’s push to become a global artificial intelligence hub.

The announcement comes as India hosts a five-day global AI summit that will see deliberations over issues ranging from job disruption to child safety.

The summit will gather 20 national leaders and 45 ministerial-level delegations -- with the key day on Thursday -- who will rub shoulders with tech CEOs including Sam Altman of OpenAI and Google’s Sundar Pichai.

The $100 billion investment would catalyse an additional $150 billion in spending across “server manufacturing, advanced electrical infrastructure, sovereign cloud platforms and supporting industries”, the Adani Group said in a statement.

“Together, this is projected to create a $250 billion AI infrastructure ecosystem in India over the decade,” the statement noted.

The sprawling ports-to-power conglomerate said its vision is “anchored” by key partnerships with Google -- which aims to establish a massive data centre campus in the coastal city of Visakhapatnam -- and Microsoft.

“The Adani Group is also in discussion with other major players seeking to establish large scale campuses across India thereby further cementing its position as India’s premier AI infrastructure partner,” the statement added.

Last year India leapt to third place -- overtaking South Korea and Japan -- in an annual global ranking of AI competitiveness calculated by Stanford University researchers.

But despite plans for large-scale infrastructure and grand ambitions for innovation, experts say the country has a long way to go before it can rival the United States and China.

The government has partially reduced value-added tax (VAT) on liquefied petroleum (LP) gas, aiming to stabilise prices of the essential fuel used in households and industry while keeping it affordable for consumers.

In a notification issued yesterday (17 February), the National Board of Revenue (NBR) has now scrapped VAT at the production and trader stages as well as the advance tax at import, replacing them with a single 7.5% VAT levied only at the import stage.

Under the previous system, LP gas faced 7.5% VAT at both the production and trader levels, alongside a 2% advance tax at the import stage.

The tax authority said the measure — effective until 30 June — was taken in the public interest to help stabilise LP gas prices and maintain them within consumers' purchasing capacity.

The notice stated that the government has decided, in the public interest, to partially reduce VAT on LP gas to stabilise the market price of this essential product used in industry and households and keep it within consumers' purchasing capacity.

The decision followed an application from the LPG Operators Association of Bangladesh and recommendations from the Ministry of Power Energy and Mineral Resources.

According to the NBR, the revised structure will reduce the overall VAT burden on consumers by around 20% compared with the previous system. Industry entrepreneurs say the change could translate into a modest drop in market prices.

Speaking on condition of anonymity, the chief financial officer of a leading LP gas supplier said a 12kg cylinder currently priced at Tk1,206 could fall by about Tk15 due to the VAT restructuring.

Officials maintain the tax adjustment will not hurt government revenue. An NBR official explained that compliance gaps in the LP gas supply chain had allowed some operators to evade VAT, particularly because advance tax at import was rebateable.

By shifting VAT collection to the import stage, authorities expect to reduce evasion — potentially maintaining or even increasing revenue collections.

The government’s development expenditure in the first seven months of the current fiscal year 2025-26 (FY26) has slumped to its lowest level in at least 16 years amid fiscal restraints and political disruptions.

Ministries and divisions spent just Tk 50,556 crore – a mere 21.18 percent of the total Annual Development Programme (ADP) outlay – during the period, shows Implementation Monitoring and Evaluation Division (IMED) data published yesterday.

During the same period in FY25, when operations were disrupted by a mass uprising and administrative instability, the ADP implementation rate stood at 21.52 percent. The rates were 27.11 percent and 28.16 percent in FY24 and FY23, respectively.

The slowdown is particularly acute in the health sector, which has recorded dismal implementation rates despite growing concerns about healthcare accessibility.

The Medical Education and Family Welfare Division has utilised only 2.98 percent of its allocation, while the Health Services Division has managed just 6.59 percent, according to the IMED.

Md Deen Islam, research director at Research and Policy Integration for Development (RAPID), blamed lackings in “institutional capacity” for the slow spending.

“The underperformance in the health sector reflects deeper governance challenges. In many cases, those in charge hesitate to take bold decisions, particularly when procurement-related scrutiny creates a climate of fear. That affects implementation,” he added.

The underperformance comes as Bangladesh continues to grapple with one of the world’s highest rates of out-of-pocket health expenditure.

This has led to a “structural vulnerability that demands urgent policy attention,” Islam said.

“A single chronic or terminal illness can push a non-poor family into poverty,” he warned, citing data from the Multiple Indicator Cluster Survey showing stagnation in key health indicators.

He emphasised that without immediate increases in health investment and execution, Bangladesh risks falling further behind on crucial development metrics.

The broader spending slump reflects multiple headwinds. For the current fiscal year, the government allocated Tk 238,695 crore for the ADP, including funds from autonomous bodies.

However, during the July-January period, utilisation of both state funds and foreign loans has declined sharply.

Foreign fund spending fell to approximately Tk 18,668 crore, while government funds amounted to Tk 28,052 crore, down from Tk 30,096 crore in FY25.

This deceleration comes as the interim government implemented a reduced, austerity-focused ADP that slowed or postponed certain projects initiated by the previous administration.

Planning ministry officials note that several contractors fled the country before completing their work following the mid-2024 political changeover, further hampering implementation.

RAPID’s Islam largely agreed, noting that smaller projects may have received less attention as larger initiatives were prioritised.

Infrastructure sectors have fared considerably better than social services.

Among the top 15 recipients of allocations, the Ministry of Water Resources achieved the highest implementation rate at 41.10 percent, followed by the Energy and Mineral Resources Division with 40.66 percent, and the Local Government Division with 36.91 percent.

For Islam, the health shortfall is particularly worrying given Bangladesh’s demographic outlook.

He warned, “Within 15 to 20 years, Bangladesh will gradually transition into an ageing society. Without adequate investment in health infrastructure and human resources, fiscal pressure will intensify.”

He urged authorities to view health spending through an economic lens, noting that Bangladesh maintains a low ratio of nurses and support staff compared to doctors.

“Expanding this workforce would improve service delivery while generating jobs. Health investment is not just social spending, it is also an economic strategy,” he said.

However, Islam said ADP implementation may accelerate under the newly elected political government.

A modest uptick in January offered limited encouragement. The month recorded 3.64 percent implementation of the revised ADP, marginally up from 3.55 percent in January 2024.

“As an elected party, the BNP will have to deliver on its pledges, including job creation, expanding health services, and reducing out-of-pocket costs,” Islam said.

Ashikur Rahman, principal economist at the Policy Research Institute of Bangladesh, concurred that a full-fledged political government could help strengthen ADP spending by accelerating countrywide development activities.

The reciprocal trade deal signed by the interim government with the United States has raised questions regarding the economic sovereignty of Bangladesh, especially in decisions on trade, energy and security.

Critics point to several binding and conditional clauses that allow Washington to terminate the agreement and restore steep tariffs if its concerns are not addressed.

For example, take the digital trade facilitation provision in the deal.

The agreement says that if Bangladesh signs a new digital trade deal with any country that jeopardises essential US interests, Washington may terminate the pact and reimpose the 37 percent reciprocal tariff on Bangladeshi exports.

That was the tariff rate the US had proposed in April 2025.

The same condition applies if Bangladesh enters into a new bilateral free trade or preferential agreement with what the US terms “a non-market country” -- nations it does not recognise as market economies.

The agreement says that if consultations with Bangladesh fail to resolve American concerns, the United States may withdraw from the deal and reinstate the 37 percent tariff.

The rate is high enough to sharply reduce Bangladesh’s exports to the US, a costly prospect given that the country earns roughly one-fifth of its export revenue from garments and other goods sold to American buyers.

The deal, signed on February 9 between the interim government and the Trump administration, also restricts Bangladesh from purchasing “any nuclear reactors, fuel rods, or enriched uranium from a country that jeopardises essential US interests”.

An exception applies to “the procurement of proprietary materials for which there are no alternative suppliers or technologies, or materials contracted prior to the entry into force of this agreement required for existing reactors”.

This suggests that supplies for the Rooppur Nuclear Power Plant, built with Russian technical and financial support through Russian state corporation Rosatom, may continue.

But any future nuclear project could fall under tighter scrutiny.

Citing the section on economic and national security, BRAC Executive Director Asif Saleh, in a Facebook post, said, “This is the most important and controversial part of the agreement, as it raises questions about ‘sovereignty’.”

The section adds, “The United States shall work with Bangladesh to streamline and enhance defence trade.”

On the nuclear restriction, Saleh said, “This could create risks for Bangladesh’s energy security.”

The deal also opens the door for US direct investment to “explore, mine, extract, refine, process, transport, distribute and export critical mineral resources”.

In addition, Bangladesh is required to purchase $3.5 billion worth of American agricultural products. This includes at least 700,000 tonnes of wheat annually for five years, at least $1.25 billion or 2.6 million tonnes of soy and soy products, and cotton.

Bangladesh shall also need to buy 14 Boeing aircraft initially and $15 billion worth of liquefied natural gas (LNG) over 15 years, apart from increased purchases of US military equipment and limits on defence equipment purchases from certain countries.

“It appears more like an imposed purchasing obligation than free trade,” said Saleh. “Regardless of Bangladesh’s actual needs or capacity, it effectively ensures profits for US companies.”

Mustafizur Rahman, distinguished fellow at local think tank Centre for Policy Dialogue (CPD), said bulk commodities in Bangladesh are usually imported by private sector businesses, not the government.

If traders can source goods more cheaply elsewhere, he asked, why would they buy from the United States?

In that case, Rahman said the government may have to offer incentives to persuade private importers to purchase American products, adding to fiscal pressure.

In an interview with The Daily Star last week, Professor Selim Raihan, executive director of the South Asian Network on Economic Modeling (Sanem), said that Bangladesh could be compelled to buy more expensive goods even when cheaper alternatives are available.

“If we find a cheaper source elsewhere, we may not be able to choose it,” he said. “This will put additional pressure on our foreign exchange.”

“How are we going to finance aircraft purchases and energy imports? There is a risk of increased reliance on foreign loans,” Raihan said.

Anwar-ul Alam Chowdhury (Parvez), president of the Bangladesh Chamber of Industries, said the agreement indicates that Bangladesh should reduce its dependence on China for raw materials.

The deal also contains a provision on Rules of Origin. It says that if the benefits of the agreement accrue substantially to third countries or their nationals, either party may establish Rules of Origin to reflect the intention of the agreement.

Parvez said the third country clause should have been defined more clearly.

The agreement has not been made public, with officials citing a non-disclosure provision. Amid growing concern, the Chief Adviser’s Office said in a statement that it had inserted “an exit clause” into the deal.

“There was no scope for any country to terminate the agreement,” it added. The statement did not clarify whether Bangladesh exports would again face a 37 percent tariff, up from 19 percent, if the agreement were terminated.

A total of 2,100 metric tonnes of non-basmati coarse rice have been imported through Benapole port over six working days.

The consignments, brought in through 15 separate shipments, entered the port's 31 No transhipment yard, Port Director Shamim Hossain said today (17 February).

According to port sources, the imports took place between 27 January and 17 February. Earlier, 6,128 metric tonnes of rice were imported through the port during the four months from August to November last year.

On 18 January, the government allowed 232 importing firms to bring in 2,00,000 metric tonnes of rice, setting 3 March as the deadline for completing the imports and marketing the grain in Bangladesh.

The importing firm Haji Musa Karim & Sons brought the rice from India, while C&F agent M/s Bhuiya Enterprise is handling the clearance process.

Abdus Samad, proprietor of Haji Musa Karim & Sons, said the firm imported the 2,100 metric tonnes of coarse rice from India in 58 trucks over six days. The import cost up to Benapole port stood at Tk50 per kg, and the rice is expected to be sold in the open market at Tk51 per kg, he added.

Port Director Shamim Hossain said officials concerned have been instructed to ensure the quick release of the imported consignments from the port.

Power Grid Company of Bangladesh (PGCB), a state-owned power transmission company, is set to convert Tk1,324 crore in share money deposits received from the government for its development projects into preference shares.

In a letter dated today (17 February), the Bangladesh Securities and Exchange Commission (BSEC), the capital market regulator, approved the issuance of the shares in favour of the secretary of the Power Division under the Ministry of Power, Energy and Mineral Resources.

Under the government financing structure, 60% is treated as equity and the remainder as loans, with the equity portion recorded as deposits for shares. At the end of June 2025, PGCB's outstanding share money deposits stood at Tk2,954.81 crore.

Power Grid has already issued 20.10 crore general shares and 1,014.65 crore irredeemable and non-cumulative preference shares at Tk10 each in favour of the secretary of the Power Division.

According to company sources, Tk1,324 crore was received from the government in the 2023–24 fiscal year, and the company is now proceeding with the share issuance to comply with a notification issued by the Financial Reporting Council (FRC).

Preference shares are company shares where dividends are paid to shareholders before dividends are distributed to common stockholders. The government will receive dividends on the preference shares at a fixed rate before any dividend is declared or distributed to general shareholders.

The dividend rate for the government on the preference shares will be determined as a percentage of total capital, calculated as 25% of the assumed share of net profit after tax attributable to the preference shareholders.

Explaining the dividend mechanism to The Business Standard, Power Grid Company Secretary Md Jahangir Azad said, "Suppose preference shares account for 25% of the company's paid-up capital. If the company makes a profit of Tk100 in a financial year, the entitlement of the preference shares would be Tk25 from that profit. The government would then receive a 25% dividend on this Tk25 allocated to the preference shares."

Regarding the issuance of preference shares, he added, "We are instructed to convert share money deposits into shares within six months after the end of the fiscal year. That is why we are gradually converting share money deposits into preference shares."

In the first half of the current fiscal year, Power Grid's revenue grew by 9% to Tk1,671 crore, and profit soared 236% to Tk476 crore.

Its shares closed at Tk33.70 each yesterday, down 2.03% from the previous trading session.

Amir Khasru Mahmud Chowdhury, who is set to take charge as the finance and planning minister of the BNP-led new government, has set boosting investment and employment as his top priority, saying the government will focus on simplifying the business climate and lowering the cost of doing business to stimulate economic activity.

In a short interview with The Business Standard shortly after taking oath in the government led by Tarique Rahman, Khasru said effective measures would be taken to curb corruption and extortion, which he identified as barriers to growth.

He said deregulation would be introduced to ease bureaucratic complexity and reduce business costs.

High bank lending rates and elevated gas and electricity charges are discouraging private-sector investment and limiting job creation, he added.

"Lowering lending rates to a tolerable level, removing bureaucratic hurdles and improving ease of doing business will be central policy priorities," the minister said.

Amir Khasru described the broader economic landscape as challenging, citing Bangladesh's declining tax-to-GDP ratio, weaknesses in the banking and financial sectors, and a struggling capital market.

"Although inflation has eased slightly, it remains high, while private-sector credit growth has slowed sharply, investment and job creation remain weak, capital machinery imports have fallen, and poverty is rising.

"To overcome this situation, we will have to take major and difficult decisions," he said, adding that stricter reforms will be needed compared with previous administrations.

Reducing the cost of doing business to encourage investment and employment will be pursued at any cost, alongside efforts to raise the tax-to-GDP ratio through economic expansion, he said.

The minister added that as the finance minister, he will undertake a comprehensive review of the economy to determine its current condition, after which the government will outline a roadmap defining its economic direction.

Our business community is facing mountain-sized challenges right now. In this situation, the first priority must be improving the law and order situation – especially curbing extortion.

Those appointed to the ministries will need to be held accountable for what they plan to do in the first 90 days and what they will do afterwards. We don't want to see five years pass with everyone just sitting idle.

The selections made for the cabinet seem appropriate. Now, the real test is how much they can deliver. The government will have to take many policies, and it will be important to see how supportive the officials and opposition parties are in implementing them.

There are immense challenges in the economy. Investor confidence, especially in terms of investment, is almost nonexistent. But we are also seeing potential. Amid this, the government will need to manage challenges, including opposition movements. Whenever a situation arises, officials will try to seize the opportunity.

Bangladesh's total foreign exchange reserves have risen to $29.86 billion, Bangladesh Bank (BB) Spokesperson and Executive Director Arif Hossain Khan said this evening (17 February).

The central bank has been increasing reserves mainly by purchasing US dollars from commercial banks through auctions.

The rise in remittance inflows through formal banking channels has contributed significantly to this growth.

In the first month of 2026, Bangladesh received $3.17 billion in remittances, the third-highest monthly inflow on record. This marks a 45.41% increase compared to the same month in 2025.

In January of the previous year, remittance inflows stood at $2.18 billion.

A senior Bangladesh Bank official told The Business Standard that the supply of dollars in banks has increased due to higher remittance inflows.

To prevent the dollar rate from falling, the central bank has been purchasing dollars through auctions, he added.

The official further said that by buying dollars from commercial banks, Bangladesh Bank is simultaneously boosting reserves while maintaining stability in the exchange rate.

Bangladesh’s information technology (IT) exports grew 13.54 percent in the first five months of fiscal year 2025-26, buoyed by accelerating global artificial intelligence (AI) adoption and the widening digitalisation of services, according to government data.

Between July and November, the sector’s exports reached $269.84 million, up from $237.67 million in the same period a year earlier, shows Export Promotion Bureau (EPB) data. IT service exports stood at nearly $629 million in fiscal year 2024-25.

The gains were broad-based across the sector, which encompasses software development, IT-enabled services, computer consultancy, and hardware support, though the composition of growth reveals a market in transition.

SOFTWARE GETS BOOST, CONSULTANCY STUMBLES

Installation and hardware support posted the sharpest growth, nearly tripling to $3.09 million, a 136 percent year-on-year jump, reflecting rising demand for physical infrastructure alongside digital transformation.

Software exports also surged strongly, climbing 54 percent to $21.39 million, as global clients ramped up demand for custom solutions, automation tools and AI-integrated applications.

IT-enabled services, including business process outsourcing, expanded more steadily, rising 16.74 percent to $235.72 million.

Computer consultancy, however, contracted sharply, falling 53.9 percent to $9.64 million, suggesting clients increasingly prefer bundled service packages over standalone advisory engagements.

According to industry executives, AI is simultaneously expanding the market and compressing the workforce needed to serve it.

Ferdous Mahmud Shaon, managing director (MD) of Cefalo, a Dhaka-based software firm with around 300 employees, said his company has seen a substantial rise in orders as businesses worldwide race to embed AI into their operations.

“AI is not replacing software, it is actually increasing the need for new types of software,” Shaon said. “Many processes still require customised solutions, integration and ongoing development.”

At the same time, productivity gains are reshaping how companies hire. The Cefalo MD noted that AI tools are enabling companies to produce software faster and at lower cost.

“Previously a task might require ten engineers; now five can deliver the same output using AI tools,” Shaon said.

Cefalo has invested heavily in AI-assisted development tools, enabling teams to complete projects 25-50 percent faster.

While this improves competitiveness and delivery speed, it also creates pressure on employment, leading to downsizing in some cases, a trend visible across global tech companies as well.

“Companies must adopt these technologies or risk being pushed out of the market,” Shaon said, noting that AI is reducing routine work. “In the future, we will need to focus on more complex and sophisticated tasks that machines cannot easily handle.”

He also cautioned that the growth trajectory may remain moderate in the short term due to broader global uncertainties.

Despite the solid headline figure, Shaon flagged three structural risks to sustained growth: the global economic slowdown dampening client budgets, domestic instability undermining Bangladesh’s appeal as an outsourcing destination, and AI-driven workforce disruption requiring rapid reskilling.

Iqbal Hasan Mahmud Tuku, set to become the minister for Power, Energy and Mineral Resources, expressed confidence in addressing Bangladesh's long-standing energy challenges, drawing on his previous experience leading the ministry.

Speaking shortly after taking the oath, the Sirajganj-2 MP acknowledged the sector's complexity. "There are lots of problems in our power and energy sector. It is a technical matter. I need lots of brainstorming to identify the problems," he said. Emphasising careful preparation, Iqbal Hasan added, "It is very difficult to solve, but we will do homework to address the issues. Since I ran the ministry before, I am confident to streamline the problems."

Looking ahead, he expressed hope for actionable plans. "Hopefully, I will be able to create some packages of work to solve the problems," he said. On the National Review Committee's recommendation to cancel the Adani Group power purchase agreement, Iqbal Hasan remained measured: "I need to do homework. We need to do lots of brainstorming." The committee had highlighted serious anomalies and warned that the deal could be financially burdensome for Bangladesh.

Iqbal Hasan is scheduled to brief journalists at the secretariat soon, where he is expected to outline the current state of the sector and his approach to tackling persistent issues, including rising outstanding bills and an energy shortfall affecting economic growth.

Earlier, at a 3 February seminar, Iqbal Hasan highlighted the challenge of balancing production costs with affordable consumer prices. "Balancing production costs with affordable prices for consumers requires deep thought and a long time, which is not possible in a five-year tenure," he said.

He recalled a previous framework where 65% of power generation remained under government control, with the rest developed through public-private partnerships. "This policy allowed the state to maintain leverage over prices," he noted.

Criticising deviations from this approach, Iqbal Hasan said one-on-one deals bypassing public procurement rules had fueled corruption and rent-seeking. "For years, development was treated as an end in itself. Now ordinary people are paying the hidden costs through higher electricity bills and mounting public debt," he added.

The Dhaka Stock Exchange (DSE) has issued a query to Dulamia Cotton Spinning Mills, a listed textile company, for failing to submit its dividend distribution compliance report within the stipulated timeframe.

Under the rules of the Bangladesh Securities and Exchange Commission (BSEC) and Regulation 29 of the listing regulations, listed companies are required to submit a dividend compliance report to both the exchange and the commission within seven working days of completing dividend payments.

Shareholders of Dulamia Cotton approved a 3% cash dividend for FY25 at the annual general meeting (AGM) held on 3 December. Following shareholder approval, the company was required to disburse the dividend within one month and file the compliance report within seven working days.

However, the DSE said the company failed to submit the report in accordance with regulatory requirements, prompting the issuance of a query letter.

According to DSE data, Dulamia Cotton has remained non-operational since 14 June 2020. Despite having no revenue in the first half of the current fiscal year due to continued closure, the company reported a profit of Tk22 lakh, with earnings per share (EPS) of Tk0.29 for the July-December period.

In the corresponding period of the previous fiscal year, it posted a profit of Tk17 lakh and EPS of Tk0.23. Notably, although the company has no active operations, its share price has continued to rise. The stock closed at Tk138.5 yesterday, up from Tk124.4 on 25 January.

Gold prices dropped on Monday, pressured by thin trading volumes as US and China markets remained shut due to local public holidays, while some traders booked profits after last session’s 2.5 percent jump.

Spot gold fell 0.9 percent to $4,997.59 per ounce by 0726 GMT, after losing more than 1 percent earlier in the session.

US gold futures for April delivery lost 0.6 percent to $5,017.20 per ounce.

“Gold has given back some of Friday’s post-CPI gains today due to thinner trading conditions and a lack of fresh upside catalysts,” said Tim Waterer, KCM chief analyst, referring to the US consumer price inflation data.

He also pointed to profit-taking on the day.

US markets are closed for the Presidents’ Day holiday, while markets in China are closed for the Lunar New Year holiday.

The US CPI rose 0.2 percent in January after an unrevised 0.3 percent gain in December, the Labor Department’s Bureau of Labor Statistics said on Friday. Economists polled by Reuters had forecast the CPI to increase by 0.3 percent.

Federal Reserve Bank of Chicago President Austan Goolsbee said on Friday that interest rates could go down, but noted that services inflation remained high.

Market participants anticipate that the central bank will keep rates steady at its next meeting on March 18. However, they are still pricing in 75 basis points of rate cuts this year, with the first one expected in July, per data compiled by LSEG.

Non-yielding bullion tends to do well in low-interest-rate environments.

“It will likely require the dollar to resume its downtrend for gold to make a push in the direction of $6,000 before year-end,” Waterer said.

On the geopolitical front, the US military is preparing for the possibility of a weeks-long operation against Iran should President Donald Trump authorise an attack, two US officials told Reuters, in what could become a far more serious conflict than previously seen between the countries.

Net inflows of foreign direct investment to China quadrupled in 2025 according to balance-of-payments data, official figures showed on Friday, signaling a structural improvement in inbound investment and renewed confidence in China’s long-term growth prospects.

Preliminary balance-of-payments data from the State Administration of Foreign Exchange showed that China recorded an increase of $76.5 billion in direct investment liabilities in 2025, representing net FDI inflows on a balance-of-payments basis.

The figure marked a sharp increase from $18.6 billion in 2024, indicating a notable rebound in inbound direct investment despite extreme external shocks due to the United States tariff and sanction policies.

With the rising foreign investment appetite, China’s direct investment deficit — the gap between outbound and inbound direct investment — narrowed sharply on a balance-of-payments basis, shrinking to $82 billion in 2025 from $153.7 billion in 2024, the SAFE said.

Guan Tao, global chief economist at BOCI China, said in a note that the improvements in FDI inflows reflect China’s effective policy response to external shocks, stronger-than-expected economic and financial resilience, and measures to stabilize foreign investment by expanding opening-up and improving the business environment.

The recovery in foreign investment also comes as multinationals become more adapted to China’s economic transformation and pursuit of innovation-driven quality growth.

Jiang Liqin, head of clients and markets for KPMG China, said that foreign enterprises are increasingly shifting from expansion to profitable models, using local digital innovations to boost efficiency, refine pricing and strengthen competitiveness in China.

For instance, US chemical company Dow has been enhancing its local innovation and production capabilities in China, with its new Cooling Science Studio at the Shanghai Dow Center opening in November.

“The studio represents a significant long-term investment, underscoring our confidence in the strength and future growth of China’s chemicals industry,” said Puay Koon Chia, president for Dow in the Asia-Pacific region.

SAFE data also showed that China posted a current account surplus of $734.9 billion in 2025, which refers to the excess of a country’s exports of goods and services, investment income and transfers over its imports and outward payments. Surplus in trade in goods came in at $1.0234 trillion last year.

On a renminbi basis, the current account surplus amounted to 5.24 trillion yuan ($759 billion), roughly equivalent to 3.7 percent of the country’s GDP — which hit 140.19 trillion yuan in 2025 — up from 2.2 percent in 2024.

While export growth propped up the surplus, Liu Chunsheng, an associate professor of international economics at the Central University of Finance and Economics, said that China’s aim is to maintain overall balance in its balance of payments, rather than run excessive surpluses, which could create pressure on both the economy and the renminbi.

Liu said that authorities have sought to ease the surplus by expanding imports, strengthening domestic demand and deepening opening-up in the services sector.

“China’s imports hit a record high in scale last year, securing the country’s position as the world’s second-largest import market for the 17th year running,” Wang Jun, deputy head of the General Administration of Customs, said at a news conference.

“It’s worth noting that several countries have politicized trade and economic issues, restricting high-tech exports to China on various pretexts. Otherwise, we’d be importing even more,” Wang said.

Mei Xinyu, a research fellow at the Chinese Academy of International Trade and Economic Cooperation, said if Western countries ease their restrictive high-tech export controls on China, Chinese demand for imported products would expand significantly, fostering more balanced trade flows.

Debt of the interim government led by Muhammad Yunus increased by Tk2,60,257 crore during the first 14 months of its tenure, even though development expenditure fell to its lowest level in seven years.

According to the latest debt bulletin published by the finance ministry, total domestic and foreign debt stood at Tk21,49,044 crore as of 30 September 2025.

Economists say although the interim administration moved away from large-scale mega projects and sharply curtailed overall development expenditure, it failed to reduce dependence on borrowing due to sluggish revenue collection, mounting repayment obligations and persistent operating expenditure.

Zahid Hussain, former lead economist of the World Bank's Dhaka office, said weak revenue mobilisation was the principal reason behind the debt increase.

"Political instability following the August transition and subsequent disruptions in tax administration contributed to lower-than-expected revenue collection, limiting the government's fiscal space," he said.

Mounting debt

When the Awami League government was formed in 2009, the country's total debt stood at approximately Tk2 lakh crore. Before the fall of the previous government on 5 August 2024, total debt had stood at Tk18,88,787 crore on 30 June that year.

Officials said the figure could rise further once borrowing data up to mid-February is fully accounted for.

The debt bulletin published in December 2024 had initially placed total debt at Tk18,32,282 crore, but the figure increased by Tk56,505 crore following the conversion of foreign loans into the new exchange rate.

A breakdown of borrowing indicates that the interim government relied more heavily on foreign sources than domestic ones. During the period, it received instalments from the International Monetary Fund and secured budget support from multiple development partners. Budget support amounted to $3.44 billion in the last fiscal year, compared with $2 billion the previous year.

As a result, foreign debt rose from Tk8.12 lakh crore to Tk9.51 lakh crore over the 14 months.

Domestic debt also increased, from Tk10.76 lakh crore a month before the previous government's fall to Tk11.97 lakh crore by last September.
ADP spending drops by Tk9,300cr YoY in 7 months

Data show that Annual Development Programme (ADP) implementation dropped to Tk1.53 lakh crore in the last fiscal year – the lowest in seven years. By comparison, ADP spending was Tk1.67 lakh crore in the fiscal 2018-19 and rose to Tk2.05 lakh crore in FY24, the final fiscal year of the previous administration.

Despite lower development outlays, borrowing continued to climb. Analysts attribute this partly to the settlement of arrears inherited from the previous government, including unpaid bills and subsidy-related liabilities.

Mahbub Ahmed, a former finance ministry senior secretary, said the interim government had borrowed largely to service old debts and manage repayment pressures.

In addition, high inflation prompted many savers to encash savings certificates, forcing the government to repay both principal and interest.

Although several projects were cancelled or suspended to rein in development expenditure, operating costs continued to outpace revenue growth.

Towfiqul Islam Khan, additional research director at the Centre for Policy Dialogue, said pressure from external debt servicing and currency depreciation also played a role in pushing up the overall debt stock.

Challenge for next govt

While the interim government cleared many of the outstanding liabilities left behind by the previous Awami League administration, it will, in turn, pass on several financial burdens to the new government. These include unpaid electricity bills, the disbursement of house rent allowances for MPO-listed teachers, and the implementation of a new national pay scale.

Tasked with transitioning away from a debt-reliant economy, the BNP – having formed a government on the back of promises such as the introduction of "Family Cards" and a revised salary structure for civil servants – must now prepare a new budget within its first 100 days.

Analysts suggest that if revenue collection targets for the upcoming financial year are not met, the new administration may find it difficult to balance the books.

The BNP government, led by Tarique Rahman, will be required to announce a new budget just three and a half months after taking office – a budget for which the interim government has already finalised the ministry-wise allocations.

Despite this, economist Zahid Hussain believes the public will still view the upcoming June budget as the BNP administration's first true fiscal test.

He remarked that the BNP must make several key political decisions in its very first budget. "However, balancing the figures will prove a significant challenge for the new administration."

Zahid noted that the BNP has made extensive promises that must be incorporated into this initial budget, including a commitment to increase allocations for health and education to 5% of GDP.

"Furthermore, they have pledged to introduce 'Family Cards' and waive agricultural loans of up to Tk10,000. These initiatives will require direct and substantial government expenditure," he said.

Zahid continued, "At the same time, the BNP has pledged to move away from a debt-reliant economy, which implies keeping the budget deficit within strict limits. The party has also committed to introducing a new salary structure for civil servants.

"Even if only one-third of the recommended new pay scale is implemented, an additional Tk30,000 crore will be required. Therefore, unless revenue collection is significantly increased, the new government will also find itself forced to depend on borrowing.

"Furthermore, if government borrowing rises, credit flow to the private sector will be further constrained – a figure that has already plummeted below 6%."

Mahbub Ahmed said that to fulfil the BNP's pledge of creating 1 crore jobs over the next five years, the new government must take effective measures to increase revenue collection while reducing debt dependency. He emphasised that the government must focus on securing the actual share of GDP that should be collected as tax.

He further noted that the interim government cancelled numerous projects and suspended funding for many others, leaving them half-finished. The new administration, Mahbub said, will need to complete projects where funds have already been spent and which promise genuine public benefit.

"This, however, will require additional financing. If this cannot be achieved through enhanced revenue collection, they too will be forced to rely on borrowing."

Mahbub further said, "To implement the BNP's commitments – including the new salary structure for civil servants, and the introduction of 'Agriculture Cards' and 'Family Cards' – vast sums of money will be required.

"While the current level of our national debt may not yet be a cause for panic, there is certainly enough reason for concern."

Towfiqul Islam Khan said that the new government must develop a pragmatic estimate for its debt repayment schedule.

"This is because, year after year, the actual amount required for foreign debt servicing consistently exceeds the projections made by the External Resources Division (ERD)."

He further noted that upon taking office, the new administration must immediately revisit the revised budget to make the interim government's projections more realistic.

"Furthermore, they must adopt a pragmatic action plan for the new budget to fulfil their electoral manifesto. Failing this, public disillusionment could set in as early as the announcement of the first budget."

Towfiqul also advised the new government to seek opportunities to renegotiate any loans taken by the previous Awami League administration where such terms are feasible.

In an interview with The Hindu, BNP Secretary General Mirza Fakhrul Islam Alamgir said the new government must begin its tenure by addressing the "burden of debt" left behind by the Awami League administration.

He emphasised the need to re-evaluate various mega-projects to identify areas of financial wastage. "Of these projects, we will retain only those that serve the national interests."

Japanese economic growth fell short of market expectations in late 2025, official data showed Monday, adding to pressure on Prime Minister Sanae Takaichi to stimulate activity after her recent election landslide.

Gross domestic product (GDP) in the world's fourth-biggest economy expanded by just 0.1 percent in the fourth quarter, undershooting market forecasts of growth of 0.4 percent.

The growth follows a contraction of 0.7 percent -- revised downwards from an earlier reading of minus 0.6 percent -- in the previous quarter.

Growth in private consumption, and private residential and corporate investments, contributed to the expansion, according to the cabinet office data.

In calendar 2025, Japan's economy grew 1.1 percent, after a 0.2-percent contraction in 2024, the data from the cabinet office showed.

On an annualised basis, GDP expanded by 0.2 percent in the three months through December, significantly weaker than the median economist estimate of 1.6 percent growth.

Takaichi became Japan's first woman prime minister in October and called snap elections for February 8.

The vote saw her Liberal Democratic Party (LDP) win a historic two-thirds majority in the lower house.

In November, her government pushed through a 21.3-trillion-yen ($139-billion) stimulus package aimed at boosting growth.

It included energy subsidies, cash handouts, and investment incentives in key fields like semiconductors and artificial intelligence.

It also included funds for expanded spending on defence, as China increases military activities in the wider region.

Her spending plans have however worried investors.

Japan's debts are more than twice the size of the country's economy, with the highest ratio among advanced economies.

Last month, yields on long-term Japanese bonds hit record highs after Takaichi pledged temporarily to exempt food from a consumption tax to ease the pain of inflation on households.

"The minuscule rebound in activity last quarter may embolden PM Takaichi to press ahead with even more fiscal loosening," Marcel Thieliant at Capital Economics said Monday.

The weak growth "implies that the large supplementary budget passed at the end of November provided no boost to public spending last quarter just yet," Thieliant said in a note.

"In fact, sluggish economic activity increases the chances that Takaichi will not only press ahead with suspending the sales tax on food but enact a supplementary budget during the first half of the fiscal year that starts in April already rather than wait until the end of this year," he added.

The weak growth is however not expected to deter the Bank of Japan from hiking interest rates later this year, according to economists.

The much-debated digital banking licence has yet to be granted, as a board meeting yesterday chaired by Bangladesh Bank Governor focused on outlining the framework for evaluating applicant institutions, officials confirmed.

The meeting took place at the central bank around 3pm, with deputy governors and board members of the relevant divisions in attendance. Earlier in the morning, at 11am, the Bangladesh Bank Officers Welfare Council held a press briefing, alleging that the meeting had been convened hastily ahead of the formation of the newly elected government, ostensibly to push through licences for a controversial digital bank.

Dismissing the welfare council's assertion, Bangladesh Bank spokesperson Arief Hossain Khan explained, "The meeting was solely about presenting to the board how applications would be assessed and scored," stressing that this marked only the initial stage of the licensing process.

A board member, speaking on condition of anonymity, confirmed that 13 institutions had been shortlisted for initial assessment. A dedicated Digital Bank Assessment Team will score applicants based on technical and business capabilities, with the highest-ranked institutions to be considered for licensing in later stages.

At a press briefing, Officers Welfare Council General Secretary Golam Mostafa Shraban questioned the timing of the 16 February session, citing the recent election and ongoing government formation. Convening an emergency board session on 16 February, he argued, could raise questions about the central bank's transparency and neutrality.

He further cited a conflict of interest, alleging that an applicant group currently being considered for the licence had previously been chaired by the current governor of the central bank, and warned that issuing a licence amid a fragile banking sector required careful scrutiny.

The welfare council demanded the postponement of the session and called for the annulment of any contractual appointments of advisers, consultants, or officials until a proper, transparent evaluation process is ensured.

The 13 applicants include British Bangla Digital Bank PLC; Digital Banking of Bhutan of DK Bank, Bhutan; Amar Digital Bank backed by 22 microfinance institutions; 36 Digital Bank PLC initiated by 16 entrepreneurs; Booster of Robi Axiata Limited; Amar Bank backed by several private entities; App Bank of UK-based expatriates; Nova Digital Bank of VEON and Square; Maitree Digital Bank PLC of microfinance lender ASA; Japan Bangla Digital Bank of DBL Group; Munafa Islami Digital Bank of Akij Resources; bKash Digital Bank of bKash shareholders; and Upokari Digital Bank of IT Solution Limited.

Dhaka division remained the largest recipient of remittances in December, receiving nearly half of the total inflows, as migrant earnings continued to strengthen foreign currency reserves and support millions of households, according to a report by Bangladesh Bank (BB).

In December 2025, the Dhaka division received $1.60 billion, accounting for 49.93 percent of the country’s total remittances.

Chattogram division ranked second, receiving $958.45 million, or 29.73 percent of the total, while the Sylhet division came third with $267.63 million, representing 8.30 percent.

“In the current political and economic situation, marked by inflation, exchange rate fluctuations, and higher import costs, remittances have provided much-needed relief by strengthening foreign currency reserves and supporting millions of households across the country,” the central bank said in its monthly report.

District-level data showed that Dhaka district received the highest remittances at $1.15 billion. Other major recipients included Chattogram district with $360.56 million, Cumilla district with $181.89 million, and Sylhet district with $146.02 million.

Among source countries, Saudi Arabia and the United Arab Emirates were the top two, sending $489.41 million and $476.04 million, respectively. The United Kingdom ranked third, contributing $404.21 million during the month.

Bangladesh Bank said remittances have been essential for maintaining economic stability amid global uncertainty and domestic challenges. It added that overseas employment plays a key role in reducing poverty and unemployment in a densely populated country like Bangladesh.

Data from the Bureau of Manpower, Employment, and Training showed that 18.07 million people received licences for overseas employment between 1976 and December 2025.

Total remittances reached $3,223.67 million in December 2025, marking a 22.17 percent increase compared to the same month a year earlier.

During the first half of the current fiscal year (July-December 2025-26), remittance inflows rose to $16,261.17 million, which was 46.01 percent higher than in the same period of the previous fiscal year.

Among scheduled banks, Islami Bank Bangladesh PLC received the highest remittances, handling $671.87 million in December. Bangladesh Krishi Bank and Janata Bank PLC ranked second and third, processing $353.52 million and $281.86 million, respectively.

The central bank said that remittance inflows usually increase during religious festivals and towards the end of the calendar and fiscal year.