The exchange rate of the US dollar has climbed back to Tk123, with several private banks purchasing dollars from exchange houses at rates ranging between Tk122.90 and Tk123 today (10 June).

Bankers attributed the increase to growing demand for dollars to open letters of credit (LCs) for key imports, including petroleum, fertiliser and fuel, coupled with relatively weaker remittance inflows at the start of the month.

The Business Standard confirmed this after speaking with several private bank officials.

According to the officials, pressure on the foreign exchange market intensified as importers sought to settle payments for essential commodities, pushing up demand for dollars.

The Bangladesh Bank data shows expatriates remitted around $980 million during the first eight days of June, lower than the more than $1.5 billion received during the same period in March and over $1 billion during the first nine days of May.

In April, remittance inflows stood at $975 million during the first eight days.

A senior private bank official told TBS remittance inflows typically decline after Eid holidays, creating temporary pressure when demand for dollars exceeds supply.

"Supply is slightly lower than demand at the moment, which has pushed up the exchange rate at the beginning of the month," the banker said, adding that the pressure may ease after mid-June.

The dollar last crossed the Tk123 mark in April, when Bangladesh Bank reportedly asked banks to buy dollars at Tk122.75 before gradually bringing the rate down.

Economists, however, said the central bank should allow the exchange rate to be determined by market forces rather than relying on informal interventions.

They argued that current market conditions do not warrant administrative measures to contain the dollar rate and that a demand-and-supply-based exchange rate would better reflect underlying economic fundamentals.

Subsidy allocation in the upcoming 2026-27 budget may decline significantly compared to the revised budget of the current fiscal year, with a cut of around Tk19,000 crore from actual spending in FY25.

According to the finance ministry officials, they expect subsidy spending to ease if global fuel and fertiliser prices fall following the end of the Iran war. The government may also further adjust gas and electricity tariffs in the coming fiscal year.

Subsidy expenditure in FY2024–25 stood at Tk108,673 crore, while the revised allocation for the current fiscal year is Tk95,031 crore. The proposed allocation for FY2026–27 is Tk89,538 crore, down from Tk88,920 crore in the original budget of the current year.

The finance ministry classifies subsidies on gas, electricity and food under the subsidy head, while agricultural subsidies are recorded under social safety net programmes. Food subsidies are partly split between both categories.

Meanwhile, incentives for exports, jute exports and remittances are expected to rise to Tk16,025 crore, up from Tk15,225 crore in the current budget.

Finance and Planning Minister Amir Khosru Mahmud Chowdhury is set to table the national budget for FY2026-27 in the House tomorrow afternoon.

Local manufacturers of products ranging from man-made fibre and plastics to glass, steel, bicycles and paper could receive greater protection under the budget to be proposed today (11 June) through higher import taxes on competing goods, a move that may support domestic industries.

At the same time, the government is considering duty reductions on several industrial raw materials, which could lower production costs for some sectors and create room for lower prices.

However, questions remain over how much of those benefits would ultimately reach consumers.

Industry stakeholders, however, say raising import duties can be justified only when local manufacturers have sufficient production capacity and can ensure product quality. Otherwise, consumers may face higher prices without receiving adequate alternatives.

Anwar-Ul Alam Chowdhury Parvez, president of the Bangladesh Chamber of Industries, told The Business Standard, "If higher taxes are imposed on similar imported products to protect local industries, but those manufacturers have only 10% to 20% supply capacity, the policy will not produce good results. The quality of those products must also be considered."

"If import taxes are increased in the name of protection without examining these issues, consumer costs will rise. Instead of restricting imports, the government could reduce raw material costs for those industries and provide subsidies and other fiscal support," he added.

Products facing higher import duties

Several large investments have been made in polyester staple fibre production in Bangladesh in recent years.

To protect those manufacturers, a 5% customs duty is set to be imposed on imports of polyester staple fibre, a key raw material used in the ready-made garments and non-leather footwear industries.

The government is also considering raising customs duties on imported PVC and PET resins from the existing 5% to 10%. Significant investments have been made in the local production of these plastic industry raw materials over the past few years.

Similarly, imports of gypsum boards and sheets may face a 20% regulatory duty. Customs duty on imported bicycles could increase from 15% to 25%, while a new 5% regulatory duty may also be imposed.

To provide additional support to local washing machine manufacturers, a 20% supplementary duty may be imposed on imports. For the paper industry, supplementary duty on greaseproof paper and glassine paper could rise from 10% to 25%, alongside a new 5% regulatory duty.

A 10% regulatory duty may also be imposed on imports of cold-rolled coils and sheets to protect domestic manufacturers.

Imports of transformers could face an increase in supplementary duty from 10% to 25%, together with a new 5% regulatory duty.

For copper wire and copper tubes, a 10% regulatory duty may be imposed, while customs duty on copper tubes could increase from 15% to 25%. Customs duty on maize starch may also rise from 15% to 25%. In addition, a 10% regulatory duty may be imposed on DC motors with capacities below 1,200 watts.

Sector insiders say these additional taxes could increase import costs and ultimately raise consumer prices. They also note longstanding concerns that, even after receiving policy support and tax benefits, some industries do not always pass on the resulting cost savings to consumers.

Duty relief for industrial raw materials

Today's budget may also include duty reductions on a range of industrial raw materials.

Customs duty on five raw materials used in refractory cement production, including ball clay, may be withdrawn. Customs duty on five types of raw materials used in float glass manufacturing could be reduced from 25% to 15%.

For the detergent industry, customs duty on imported Linear Alkyl Benzene, a key raw material, may be reduced to 1%. Reduced import tax rates are also being considered for two raw materials used in tyre and tube manufacturing.

In the skincare and beauty products sector, supplementary duty on two raw materials could be reduced from 30% to 10%.

Meanwhile, the government is considering withdrawing the existing 5% regulatory duty on key raw materials used by the coffee processing industry.

The government is set to unveil a wide-ranging fiscal incentive package for the country's renewable energy sector in the national budget to be placed in parliament today (11 June), including duty-free imports of key solar equipment, a tax holiday for solar power generation and tax rebates for consumers using solar electricity.

According to officials at the power and energy ministry, Finance Minister Amir Khosru Mahmud Chowdhury is expected to propose a zero percent tax rate for solar power generation projects until 2035.

The budget is also likely to introduce a 5% tax rebate on payments for solar electricity bills, providing a direct incentive for households, businesses and industries to invest in rooftop solar systems.

Industry insiders say the proposed measures could significantly reduce project costs, attract private investment and accelerate Bangladesh's transition towards cleaner and more sustainable energy sources.

A central element of the package is a proposal to exempt major solar power components from customs duty, regulatory duty, supplementary duty and advance tax through a notification that would remain effective until 30 June 2031.

Officials say the long-term validity of the exemption is intended to provide policy certainty for investors and developers planning large-scale renewable energy projects.

Tax burden on solar equipment

The proposed measures come as renewable energy technologies continue to face a substantial tax burden despite the government's stated ambition to increase the share of clean energy in the national power mix.

According to industry data, most solar equipment imported into Bangladesh currently faces a total tax incidence ranging from 27.5% to 28.7%, driven by a combination of customs duty, value-added tax, advance income tax and advance tax.

Assembled solar photovoltaic modules are subject to a total tax incidence of 28.7%, while non-assembled solar panels face a burden of 27.5%. Photovoltaic generators and solar inverters are also taxed at 28.7%.

The burden is significantly higher on several supporting components essential for solar projects. Direct current cables face a total tax incidence of 61.8%, while charge controllers and monitoring systems are taxed at 39.7%.

Industry experts have long argued that these taxes substantially increase project costs and undermine the competitiveness of renewable energy technologies, particularly because a uniform 7.5% advance tax is imposed on solar equipment imports regardless of their strategic importance in supporting the country's energy transition.

Under the current tax structure, customs duty on renewable energy equipment ranges from 1% to 10%, while value-added tax is charged at 15%, advance income tax at 5% and advance tax at 7.5%.

Industry welcomes proposed reforms

"Previous attempts to accelerate renewable energy systems, particularly distributed ones like rooftop solar, remained largely fragmented due to high import duties," Shafiqul Alam, lead analyst for the Institute for Energy Economics and Financial Analysis (IEEFA) South Asian regional office, told TBS.

"The current government's attempt to waive these disproportionate duties on distributed systems will reduce overall import costs by 20% to 30%. This will significantly bring down the Levelised Cost of Energy from distributed renewable systems, enhancing interest across industries, commercial buildings, and households," he added.

Shafiqul further noted that given recent power tariff hikes, consumers with higher electricity bills will save substantially more by implementing new rooftop solar projects.

Energy experts also said the incentives could improve the competitiveness of renewable energy relative to fossil fuel-based generation, which has historically benefited from various fiscal incentives and policy support.

The proposed consumer-level tax rebate is likewise expected to encourage wider adoption of rooftop solar systems by lowering the effective cost of solar electricity consumption.

Bangladesh can become the world’s most attractive apparel sourcing destination if it can deliver faster lead times, produce more value-added products and ensure seamless collaboration across the supply chain, according to a senior executive at Inditex, one of the world’s largest fashion retail groups.

“I think it is the right time and in the right place that we should not be afraid of what the other countries are doing. We deal with India, Pakistan, Cambodia and Vietnam,” said Javier Carlos Santonja Olcina, regional head for Bangladesh and Pakistan at Inditex.
“Bangladesh has enough capabilities to overtake all of them. This is my personal opinion. My company is trying to communicate to our supply chain in Bangladesh,” he added.Olcina made the remarks yesterday at the inauguration of the 20th Bangladesh Denim Expo at the International Convention City Bashundhara (ICCB) in Dhaka.Typically, Western buyers do not disclose their sourcing plan. However, Olcina lauded Bangladesh’s potential. He identified three priorities that could help Bangladesh become the world’s most attractive sourcing destination.

First, he said, the country needs world-class logistics infrastructure.According to him, Bangladesh still does not have a deep-sea port, a modern airport, reliable energy supplies and faster customs clearance, all of which are critical for improving delivery performance.He said that both exporters and importers in the garment sector continue to suffer because of weaknesses in the logistics system.

Second, the regional head of Inditex said, Bangladesh must move further into higher value-added garment products, which will require coordinated efforts from manufacturers and other industry stakeholders.

Third, Olcina said, closer collaboration is needed among the government, global brands, multilateral organisations, manufacturers, logistics providers and industry associations to drive the sector forward.

He said the global business environment is complicated, with countries continuing to deal with the fallout from Covid-19, geopolitical tensions and broader economic uncertainty. Despite these challenges, Bangladesh remains better positioned than many of its competitors.

At the event, Mahmud Hasan Khan, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said Bangladesh is now the largest exporter of denim to both the European Union and the United States, ahead of China.

“We are approaching LDC graduation. This is being discussed in every boardroom and every policy meeting in Dhaka,” said Khan.

He said their position at BGMEA is clear as the preferences apparel makers currently enjoy will change after graduation.

“If we are not prepared, the industry will feel it. RMG is currently the biggest beneficiary of preferential access. In the post-LDC era, without the right trade arrangements in place, the apparel industry risks becoming the biggest loser,” said the BGMEA president.

European Union Ambassador to Bangladesh Michael Miller said Bangladesh is entering a new phase of its economic development.

“The challenge now is to create decent jobs, skill the workforce, attract high-quality investments to move up value chains, help diversify the economy, ensure a clean energy transition, and prepare effectively for graduation from least developed country status,” he said.

Mostafiz Uddin, founder and chief executive officer of Bangladesh Denim Expo, said more than 50 exhibitors from over 10 countries would showcase products and innovations during the two-day event.

Uddin said, “We are not just showcasing fabric; we are displaying the entire denim value chain -- from sustainable fibres to cutting-edge, eco-friendly finishes.”

Bangladesh remains the largest denim exporter to the European Union, with a market share of around 33 percent, he said.

The country is also a leading supplier to the US market, where Bangladesh-made denim accounts for one in every three pairs of jeans sold through many major retail chains, he added.

With the global denim market projected to reach $105 billion by 2032, the objective is not only to participate in that growth but also to lead it through higher-value products and industry-leading sustainable practices, said Uddin.

The government is likely to place greater emphasis on public-private partnerships in the energy sector and adopt more investment-friendly policies to encourage private sector participation in addressing challenges, according to budget proposals expected to be unveiled today (11 June).

Finance Minister Amir Khosru Mahmud Chowdhury is scheduled to present the first budget of the BNP-led government in parliament, outlining a range of measures to tackle persistent energy and power shortages.

The budget may include plans to expand partnership initiatives, boost private investment in power generation and renewable energy and strengthen the security framework.
 channelSpeaking to The Business Standard, David Hasanat, president of Bangladesh Independent Power Producers Association, said private investors would be willing to invest in the power and energy sectors if the government introduced a genuinely investment-friendly policy environment.

The Yunus government floated tenders for solar power projects, but those efforts did not yield results. The current government has revised the policy and issued new tenders, but major investors are unlikely to come under the existing framework, he said.

"We want to invest, but nothing comes free," Hasanat said.

The budget is expected to set a target of raising power generation capacity to 35,000 megawatts by 2030 and expanding transmission lines to 25,000 circuit kilometres.

Regarding this, Hasanat noted that gas shortages currently prevent the government from generating nearly 8,000MW of electricity despite having the installed capacity.

He said expanding solar power generation would require policies that are more attractive to private investors.

The finance minister may also announce measures to identify corruption in the power sector, review capacity charge payments and power purchase agreements, modernise transmission and distribution networks, develop smart grids, promote domestic manufacturing of renewable energy equipment, and build strategic fuel reserves to enhance long-term energy security.

The government is set to propose substantial tax and duty cuts on electric vehicles (EVs), plug-in hybrid electric vehicles (PHEVs) and charging infrastructure in the upcoming budget, while increasing the tax burden on certain fossil-fuel-powered vehicles to promote greener transport.

The first full budget from the BNP government, under the leadership of Prime Minister Tarique Rahman, is set to be presented in parliament today at 3pm. Finance Minister Amir Khosru Mahmud Chowdhury will deliver the national budget.

Tax burden on EVs to fall

According to National Board of Revenue sources, the current overall tax incidence on imported EVs is around 93%. The FY27 budget may propose reducing the tax to 64% for EVs valued at up to $25,000 and to 80% for those priced up to $50,000.

The proposal is likely to seek to continue full duty and tax exemptions on imported electric buses used by schools, colleges, universities and similar educational institutions. For other electric buses and trucks, all duties and taxes except VAT will remain exempt until 30 June 2030.

Major relief for plug-in hybrids

Significant tax relief may also come for new PHEVs. The supplementary duty on PHEVs with engine capacities of up to 2,000cc is set to be reduced, while the regulatory duty on new PHEVs of up to 1,800cc will be fully withdrawn.

As a result, the overall tax burden on brand-new PHEVs of up to 1,800cc may fall from 93.16% to 73.44%. For brand-new PHEVs of up to 2,000cc, the tax incidence may decline from 132.36% to 96.10%.

Charging equipment to get zero-duty facility

To support the expansion of EV charging networks nationwide, the government may propose to remove all duties and taxes on imported chargers and charging stations. The current tax burden on these products stands at 39.75%.

If approved, the tax incidence on chargers and charging stations will fall to zero.

Higher taxes on petrol and diesel vehicles

Meanwhile, the government may also propose increasing the tax burden on imported internal combustion engine vehicles with engine capacities between 1,200cc and 1,600cc. The overall tax incidence on these vehicles is expected to rise from 132.36% to 155.88%.

However, tax rates on other categories of vehicles are likely to remain unchanged.

The government is poised to introduce a highly debated provision that would allow the investment of undisclosed income, commonly known as black money, in the real estate sector with indemnity from scrutiny regarding its source.

Officials at the National Board of Revenue told TBS that the proposed measure would permit buyers or sellers of land and property to disclose the actual transaction value if it exceeds the registered deed value without any agency questioning the source of the additional funds.

Under the proposal, individuals would be required to pay the applicable rate of tax on the previously undisclosed amount, which could be as high as 30% in the case of individual taxpayers, along with a penalty equivalent to 20% of the tax payable.

For example, if a property was registered at a deed value of Tk50 lakh but was actually purchased for Tk3 crore, and only the deed value had previously been disclosed by both the buyer and the seller, either party would be able to declare the remaining amount by paying the applicable tax and the additional 20% penalty.

In return, no authority would question the source of those funds. The same treatment would also apply to future transactions if the undeclared portion are subsequently disclosed under the proposed mechanism.

Industry scepticism

Representatives of the real estate sector said the proposed framework is unlikely to attract participation if taxpayers are required to pay tax at their normal applicable rates on the undisclosed amount.

According to industry representatives, buyers and sellers would have little incentive to regularise previously unreported funds under such a structure. They argue that a fixed-rate tax combined with protection from scrutiny over the source of funds would be more likely to encourage disclosures and investment.

Mohammed Akter Biswas, vice-president of the Real Estate and Housing Association of Bangladesh, said, "If tax is imposed based on the applicable rate linked to the deed value, nobody would want to disclose it. However, if taxpayers are allowed to pay tax at a fixed rate and no authority questions the source of the money, investment may increase."

Experts oppose indemnity for undeclared funds

Tax experts have opposed any form of indemnity that would allow undeclared money to enter the economy without investigation into its origin, arguing that such provisions could legitimise illegally earned income.

Syed Md Aminul Karim, former member for income tax policy at the NBR, said, "Allowing undeclared money to be invested through any mechanism would not be the right decision. It undermines tax justice for compliant taxpayers."

Bangladesh needs strong cooperation among the government, development partners and the private sector -- alongside adequate financing -- to achieve its development goals, Akira Matsunaga, deputy country director of Asian Development Bank’s (ADB) Bangladesh Resident Mission, said yesterday.

“Bangladesh’s development ambitions will require not only financing, but also strong partnerships and effective implementation,” he said at the “Business Opportunities Seminar 2026” in Dhaka, organised by the ADB to highlight opportunities arising from projects funded by it and the World Bank.

“Forums such as today’s seminar help strengthen collaboration among government, development partners and the private sector to deliver sustainable development outcomes,” he added.

The ADB official also reiterated the multilateral lender’s commitment to supporting private-sector participation and strengthening partnerships to advance Bangladesh’s sustainable, inclusive and resilient development.

Jean Pesme, division director for Bangladesh and Bhutan at the World Bank, also underscored the importance of cooperation among development partners, government institutions and the private sector to support Bangladesh’s next phase of development.

SM Jakaria Huq, additional secretary and ADB wing chief at the Economic Relations Division (ERD), reaffirmed the government’s commitment to transparency, fair competition and effective implementation of development-financed projects.

The seminar brought together more than 800 representatives from government agencies, development partners, the private sector, contractors, consultants, suppliers and financial institutions to promote collaboration and enhance participation in development projects.

Among others, SM Moin Uddin Ahmed, chief executive officer of the Bangladesh Public Procurement Authority, and Sangita Ahmed, senior vice-president of the Bangladesh Women Chamber of Commerce and Industry, also attended the programme.

The Bangladesh Bank yesterday appointed a new observer at Islami Bank Bangladesh PLC amid deepening unrest at the country’s largest private bank.
The observer, Md Ashraful Alam, is also a BB executive director. He was appointed under powers vested in it by the Bank Companies Act, 1991, the central bank said.
Mohammad Shahriar Siddiqui, director and assistant spokesperson of BB, confirmed the development, saying the appointment had been made to closely monitor the bank’s overall operations, safeguard the interests of the institution, protect depositors and ensure the greater public interest.

As an observer, Alam will participate in board meetings and other relevant activities, and report his observations on the bank’s operations back to the central bank, added Siddiqui.

Earlier, in December 2022, BB had first appointed an observer at the country’s largest shariah-based bank.

Siddiqui said the banking regulator remains committed to ensuring stability, good governance, transparency, and accountability in the banking sector.

Alam’s appointment is expected to further strengthen confidence and discipline in Islami Bank’s operations, he added.

The development comes as unrest, triggered by the appointment of Md Khurshid Alam as Islami Bank chairman, has gripped the bank. Since the protest started, customers withdrew over Tk 4,240 crore in deposits from the bank within seven days.

Due to the ongoing turmoil, the bank, which had staged a turnaround during the interim government’s tenure, is facing mounting pressure from deposit withdrawals.

On Monday, the bank sought a special liquidity support facility of Tk 10,000 crore from Bangladesh Bank as the country’s largest Shariah-based lender reeled from a surge in deposit withdrawals.

Earlier in the day, the Association of Bankers, Bangladesh (ABB), a forum of bank executives, met with BB Governor Md Mostaqur Rahman over the issue.

After the meeting, Mashrur Arefin, chairman of ABB, said the growing unrest at Islami Bank had taken on a political dimension, raising serious concerns among bankers about its potential impact on the wider financial sector.

He said the situation was eroding confidence in the banking industry and could pose risks to overall financial stability.

On May 24, the eve of the nearly week-long Eid-ul-Azha holiday, the BB appointed Khurshid Alam, a former deputy governor, as chairman of Islami Bank, just hours after the previous chairman resigned.

Khurshid was among the senior BB officials who were forced to leave the central bank by more than 100 protesting officials on August 6, 2024, a day after the fall of the Sheikh Hasina government in the face of a mass uprising.

The appointment has sparked unrest at the bank since June 1, and the situation remains unresolved.

Yesterday, a delegation led by the Conscious Customers’ Forum went to the Ministry of Finance to submit a memorandum demanding the resignation of Khurshid Alam.

The FY2026-27 budget, scheduled to be placed in parliament today (11 June), is expected to bring wide-ranging changes to the import duty and tax structure to support local industries, encourage import-substitute production and improve the competitiveness of domestic manufacturers, according to finance ministry and National Board of Revenue (NBR) sources.

The expected measures include duty relief on raw materials for several industries, alongside higher import duties on a range of products to protect local producers.

Under the proposals, the existing 45% supplementary duty on imports of float glass – a key raw material used in the production of washing machines, electric ovens and microwave ovens – may be fully withdrawn.

The proposal also seeks to extend existing concessional and duty exemption facilities on raw material imports used in the production of LPG cylinders, auto tanks, valves and bungs until 30 June 2027.

In another move, the existing 10% supplementary duty on imports of synthetic woven fabrics may be withdrawn.

Overall, these expected measures aim to strengthen protective tariff support for local industries while reducing production costs through duty concessions on essential raw materials.

Abul Kasem Khan, chairperson of Business Initiative Leading Development, told TBS that rational reductions in duties and taxes help encourage local production and improve industrial competitiveness.

"When the government reduces duties on raw materials and inputs used in value-added production, it creates positive impacts on local industries, employment generation and the broader economy," he said.

Bangladesh needs a business-friendly tariff structure to support industrial growth and attract new investment amid current economic realities, he said.

"These expected measures will boost entrepreneurs' confidence and encourage production expansion. We hope to see such measures reflected in the budget," he added.

Protection for gypsum board, resin, transformers

To protect the local gypsum board and sheet manufacturing industry, a new 20% regulatory duty has been proposed on imports of those products.

The proposal also includes raising the existing 5% import duty on PVC resin (polyvinyl chloride) and PET resin (polyethylene terephthalate) to 10% to support domestic manufacturers.

Domestic producers say the measures would help reduce reliance on imports and encourage investment and production expansion in local industries.

To strengthen the domestic transformer industry, the government is also considering increasing the import duty on transformers with capacities of up to 1kVA from 10% to 25%, along with a new 5% regulatory duty.

Higher duties on appliances, bicycle parts

To protect the local washing machine industry, a new 20% supplementary duty has been proposed on imports of all types of household washing machines.

The proposal also recommends increasing the import duty on freewheels, a locally produced bicycle component, from 15% to 25%, along with an additional 5% regulatory duty to protect the domestic market.

Protective measures for paper, copper, steel industries

To support local paper manufacturers, import duty on greaseproof paper and glassine paper may be increased from 10% to 25%, with an additional 5% regulatory duty.

The proposal also includes a 10% regulatory duty on imported copper wire and an increase in import duty on copper tubes from 15% to 25%.

A further 10% regulatory duty may be imposed on imports of cold-rolled and coated coil sheets to protect domestic manufacturers.

Lower duties on industrial raw materials

Import duty on five raw materials, including ball clay, a key input for the refractory cement industry, may be reduced to 5%.

The proposal also includes a 1% import duty on linear alkyl benzene (LAB), one of the main raw materials used in detergent production.

Import duty on five raw materials used by the local float glass industry may be reduced from 25% to 15%.

To encourage domestic coffee processing, the government may fully withdraw the existing 5% regulatory duty on bulk imports of coffee extract, essence and preparations.

Higher duties for maize starch, motors and polyester

Import duty on maize starch may be increased from 15% to 25% to support local producers.

A new 10% regulatory duty may be imposed on imported DC motors with capacities below 1,200 watts to strengthen local manufacturing.

The proposal also includes a 5% duty on imports of polyester staple fibre to encourage domestic production of the import-substitute product.

Benefits for tyre, beauty product manufacturers

The government is considering concessional import facilities for two raw materials used by local tyre and tube manufacturers.

For skincare and beauty product manufacturers, the existing 30% supplementary duty on imports of two raw materials may be reduced to 10%.

New concession notification

The government is also considering issuing a new notification on concessional import facilities for industrial raw materials to support industrial expansion and job creation.

Hospitals, universities and other public service institutions may also receive advance tax exemption facilities on imports of capital machinery and spare parts similar to those available to manufacturing industries. Officials expect the move to help reduce costs in the health and education sectors.

Duty benefits for ETP chemicals, coal imports may continue

To encourage environmentally friendly industrialisation, the government is considering extending the existing duty exemption facility on imports of chemicals used in effluent treatment plants (ETPs) until 30 June 2027.

The proposal also seeks to continue existing duty and tax concessions on coal imports for power plants until 30 June 2030.

Md Shaheen Ahmed, president of the Bangladesh Tanners Association (BTA), told TBS that continuing the duty exemption on ETP-related chemicals would help reduce environmental management and operating costs for industries, making it easier to maintain production in line with environmental regulations.

He said the measure could encourage environmentally friendly investment, particularly in leather and other export-oriented industries.

The stock market extended its gains today (9 June) after a brief consolidation phase, driven by investor optimism over potential market-friendly measures in the upcoming national budget.

The benchmark DSEX index at the Dhaka Stock Exchange (DSE) rose 36 points to 5,519, while turnover jumped 29% to a multi-week high of Tk1,387 crore.

Market analysts attributed the rally to expectations of fiscal policies aimed at stimulating private sector growth and boosting investor confidence. According to EBL Securities, strong demand for attractively valued stocks helped sustain the upward momentum, outweighing concerns over the withdrawal of floor prices from two heavyweight stocks – Beximco Limited and Islami Bank.

Market breadth remained firmly positive, with 246 stocks advancing, 100 declining and 51 remaining unchanged.

The insurance sector dominated trading activity, with general insurance stocks accounting for 24.4% of total turnover. Engineering and pharmaceuticals contributed 11.8% and 9.4%, respectively.

Among sectors, services posted the highest gain at 4.4%, followed by non-bank financial institutions and general insurance. In contrast, the miscellaneous sector fell 4.4%, largely due to a sharp decline in Beximco after the removal of its floor price. Cement and food sectors also posted marginal losses.

BD Finance topped the gainers, hitting the 10% upper circuit limit, followed by Shyampur Sugar, Peoples Insurance and Dulamia Cotton.

Beximco Limited and Islami Bank, however, fell 9.99% and 9.81%, respectively, after the floor price was withdrawn, both hitting their lower circuit limits. Despite the declines, the broader market remained resilient.

At the Chittagong Stock Exchange (CSE), the CSCX index edged up 0.83 points, and the CASPI gained 3 points. Turnover, however, fell 45% to Tk23.72 crore.

Oil prices fell on Tuesday, ‌erasing most of the previous session’s gains, after Iran and Israel said they had halted attacks on each other following an appeal from US President Donald Trump, though both sides warned they could resume hostilities.

Brent ​crude futures were down $1.33, or 1.4 percent, at $92.92 a barrel at 0741 GMT, while ​US West Texas Intermediate declined $1.73, or 1.9 percent, to $89.57 a barrel.

The market has been here before, said PVM Oil Associates analyst Tamas Varga, referring to hopes for an end ​to hostilities that could then end the three-month war in the Middle East.

Still, in the absence ​of any other movers in the market, prices fell after Iran and Israel said they had now halted attacks on each other.

Renewed Israeli strikes on Iran and attacks in Lebanon over the weekend had ​pushed oil prices up 5 percent on Monday.

“In the meantime, global oil inventories keep depleting and ​as data, whether weekly or monthly, becomes available, realization of dangerously low oil stockpiles worldwide could intensify ‌the ⁠race for available barrels pushing Brent back above $100 once again,” Varga said.

Tehran has continued to block most shipping through the Strait of Hormuz, which before the war carried a fifth of the world’s crude oil and liquefied natural gas. Washington has imposed its own blockade of ​Iranian ports.

Also helping ​to keep a lid ⁠on prices was a drop in China’s imports of crude, which were down 29 percent to their lowest levels in eight years last month. ​In April, imports fell to a of 9.3 million bpd, with ​refiners in ⁠the world’s largest oil importer to offset an even steeper decline from an average of 11 million bpd prior to the US-Israeli war on Iran.

On Monday, US forces disabled an ⁠unladen oil ​tanker in the Gulf of Oman after it attempted ​to sail to an Iranian port in violation of the ongoing blockade against Iran, the US military said.

Finance Minister Amir Khosru Mahmud Chowdhury has informed parliament that the government has taken a tough stance against major irregularities and scandals in the capital market.

He said legal action has been taken against individuals and institutions involved in several high-profile cases of financial misconduct and market manipulation during the Awami League regime.

According to the finance minister, the reconstituted Bangladesh Securities and Exchange Commission (BSEC) has completed inquiries and investigations into 12 separate incidents.

Responding to a question from Sirajganj-1 lawmaker Md Selim Reza in parliament today (9 June), he said a five-member special investigation committee formed by the BSEC after 5 August 2024 had submitted reports on various irregularities. Based on those findings, punitive measures have been taken against a number of individuals and organisations.

He said investors had suffered due to long-running irregularities and market manipulation in the stock market. The current government is working to ensure proper investigations and accountability for those responsible.

The finance minister told parliament that one of the most notable actions involved former BSEC chairman Shibli Rubaiyat-Ul-Islam. Following investigations into the Beximco Green Sukuk and IFIC Guaranteed Township Green Sreepur Zero Coupon Bond issues, he was declared permanently ineligible and banned for life from all capital market-related activities in Bangladesh.

The investigation findings were also forwarded to the Anti-Corruption Commission (ACC) for possible money laundering allegations against him. Former BSEC commissioner Shamsuddin Ahmed was also banned from market activities for five years in connection with the same investigation.

In a separate action relating to the IFIC Guaranteed Township Green Sreepur project, former prime minister Hasina's private industry and investment adviser and former IFIC Bank chairman Salman F Rahman was permanently barred from capital market activities and fined Tk100 crore.

In the same case, former IFIC Bank vice-chairman Ahmed Shayan Fazlur Rahman received a lifetime ban and a Tk50 crore fine.

The finance minister said that as of 13 May 2026, authorities had completed 114 inquiries, 12 investigations and 64 inspections related to stock market scandals and market manipulation.

During this period, fines totalling Tk1,496.64 crore were imposed on various individuals and institutions. At the same time, 675 enforcement actions were carried out, while 16 matters were referred to the ACC and other relevant agencies for further investigation.

In connection with market manipulation, Beximco Limited, Md Abul Khayer Hiru and others were fined a combined Tk700.63 crore.

The appointment of LR Global Asset Management Company as manager of certain mutual funds has also been cancelled.

In addition, several former officials of IFIC Investments Limited, including its former chief executive officer, have been banned for various periods and fined. Several credit rating agencies have also been penalised.

In relation to irregularities involving Quest BDC, LR Global Asset Management's responsibility for managing mutual funds was revoked, while one of the firm's senior executives was permanently barred from the market.

Separate investigations have also been conducted into Ring Shine Textiles, Fortune Shoes, ACME Pesticides and Al-Amin Chemical. In some cases, show-cause hearings have been completed, while others have been referred to the ACC over allegations of corruption and money laundering.

The finance minister noted that the commission is currently unable to take action in a case involving the IPO of Best Holdings due to a court stay order. However, the matter has been referred to the ACC.

Investigations involving Coppertech Industries, Chittagong Stock Exchange and ABG Limited are also ongoing. The commission will take final decisions after completing further reviews.

The finance minister further said that several new regulations are being drafted to strengthen transparency and accountability in the capital market. These include a whistleblower protection regulation, corporate governance regulations, an audit firm registration policy and corporate restructuring guidelines.

He added that regular investor education programmes are being conducted to raise awareness. Educational content is being disseminated through television, social media and online platforms, while training programmes are also being carried out across the country.

More than 30 per cent of food produced in South Asia is lost or wasted every year, enough to feed nearly 300 million people, according to a World Bank report.

Prevention of food loss or waste is one of the key measures that holds the key to the future of South Asia's food economy beyond production alone, it says, adding that by transforming food systems from farm to market, the region can generate millions of jobs, reduce food loss, improve nutrition, attract investment and strengthen exports.

The report says South Asia's agriculture sector, valued at more than USD 700 billion annually, has the potential to unlock millions of jobs and billions in investments through food systems transformation, according to the World Bank.

With millions of young people entering the workforce every year, creating sustainable jobs has become one of the region's most pressing priorities. The World Bank says transforming food systems beyond the farm can unlock significant opportunities for employment, investment, economic growth and poverty reduction.

The report by the World Bank-led South Asian Policy Leadership for Improved Nutrition and Growth (SAPLING) was presented at a high-level regional policy dialogue in Ahmedabad today.

The region's agriculture sector employs nearly 43 per cent of the workforce. However, despite its scale, agriculture contributes only around 16 per cent of the region's GDP, the report says.

Experts emphasised that the next phase of agricultural transformation lies not merely in increasing production but in expanding food processing, storage, logistics, marketing and value addition. These activities can create millions of productive jobs while reducing food losses and increasing farmers' incomes, the report says.

According to the World Bank report, South Asia possesses strong fundamentals to emerge as a global leader in food systems. Rapid urbanisation, a growing middle class, rich agro-biodiversity and rising demand for safe and high-quality processed food are creating new opportunities for investment and innovation.

To accelerate this transformation, the World Bank Group is advancing a combined approach through AgriConnect and SAPLING.

AgriConnect, a global platform, aims to connect 300 million farmers to markets by 2030 through investments in infrastructure, policy reforms and private capital mobilisation. The initiative is already supporting projects and reforms across countries including India, Bangladesh and Sri Lanka.

SAPLING serves as a regional platform that brings together governments, investors, development partners and innovators to promote policy reforms, develop investment pipelines and scale successful solutions across the region.

Participants at the SAPLING High-Level Policy Dialogue highlighted the importance of coordinated action by governments, businesses, investors and development institutions in the region.

Investors were encouraged to support cold chains, warehousing, logistics hubs, processing clusters, agro-industrial parks and emerging agri-enterprises. Companies were urged to build integrated value chains, adopt digital technologies for traceability and quality assurance, and invest in workforce skills and capacity building.

The report suggests policymakers promote food processing zones, improve logistics infrastructure, simplify food safety and certification systems, strengthen public-private partnerships and create a more investment-friendly business environment.

It says international financial institutions can play a catalytic role by expanding blended finance mechanisms, supporting policy reforms linked to investment opportunities and reducing risks associated with private sector investments in food systems.

The two-day South Asian dialogue brings together around 200 participants, including policymakers, industry leaders, development partners, innovators, researchers, start-ups and representatives from South Asian countries, to deliberate on strengthening food processing ecosystems and building resilient, inclusive and sustainable food systems in the region.

China is preparing to spend around 2 trillion yuan ($295.43 billion) over the next five years on building data centers ​across the country, Bloomberg News reported on Tuesday, as ‌Beijing looks to challenge the US in the intensifying AI race.

National Development and Reform Commission is among key government agencies drafting a blueprint ​to build a network of inter-connected computing hubs across ​the country, the report said, citing people familiar ⁠with the matter.

China's new five-year policy blueprint laid out its ​ambitions to aggressively adopt AI throughout the world's second-biggest economy and dominate ​emerging technologies such as quantum computing and humanoid robots.

State firms such as China Mobile and China Telecom will operate the bulk of the data ​centers and ensure they are connected, according to the ​Bloomberg News report.

The idea is to rely on local suppliers, including Huawei Technologies ‌for ⁠at least 80 percent of technology such as AI chips, effectively squeezing out Nvidia and Advanced Micro Devices, the report said, adding that the data-center blueprint remains in early discussions and ​details could change.

This ​comes as Big ⁠Tech companies in the US are expected to spend more than $700 billion this year to ​fund their AI buildout plans.

China Mobile, China Telecom ​and ⁠National Development and Reform Commission did not immediately respond to Reuters' requests for comment.

Reuters reported last year that the Chinese government issued ⁠guidance ​requiring new data center projects that ​have received any state funds to only use domestically made AI chips.

A litmus test comes for a BNP regime after 19 years as the new government prepares to present tomorrow a hugely deficit budget after return to power through the much-hyped February-12th polls.

A BNP-led government had last presented its budget for the nation for the fiscal year 2006-07 under then finance minister M. Saifur Rahman.

Finance and Planning Minister Amir Khosru Mahmud Chowdhury is expected to place his maiden budget for FY2026-27 in parliament tomorrow, against the backdrop of political upheavals and economic disruptions.

The proposed budget size has been set approximately at Tk 9.38 trillion with a projected deficit of Tk 2.43 trillion, according to some officials at the finance division.

To finance the deficit, the government pins hope on mobilising Tk 1.27 trillion, or about 52 per cent of the gap, from domestic sources, mostly from banking sources. The remaining Tk 1.16 trillion, or around 48 per cent, is expected to come from foreign loans and grants.

Of the domestic financing target, Tk 1.12 trillion is likely to be borrowed from the banking system while Tk 150 billion will be raised through savings certificates and other sources.Politics

The budget is expected to be presented under the theme 'Economic Democratisation and Deregulation: Bangladesh's Journey towards a Trillion-Dollar Economy'.

The proposed budget will be the first full-fledged fiscal plan of the BNP-led administration and is expected to be presented in the presence of Prime Minister Tarique Rahman and other MPs-mostly new to the parliamentary business and budget-making.

The government has set GDP-growth target at 6.5 per cent for FY2026-27 and aims to bring inflation down to 7.5 per cent.

However, inflation remained elevated at 9.42 per cent in May, according to the latest data from Bangladesh Bureau of Statistics (BBS).

Total revenue mobilisation which has an ambitious target of Tk 6.95 trillion is also anticipated to remain a major concern.

Data from the National Board of Revenue (NBR) show that the revenue shortfall reached Tk 1.045 trillion during the first 10 months of FY2025-26.

Against a revised target of Tk 4.31 trillion, revenue collection stood at Tk 3.27 trillion through April, highlighting the difficulty of achieving fiscal targets "amid a challenging economic environment", economists predict.

They say curbing inflation, strengthening revenue collection and reducing reliance on bank borrowing will be among the government's key economic priorities in the coming fiscal year.

"The budget will be closely watched for signals on whether the government intends to continue its reform agenda or not," says Dr Mustafizur Rahman, distinguished fellow of the CPD.

Private investment, which believed to remain at the bottom, could gain momentum if the budget includes measures to stimulate investment activity, Dr Rahman said recently.

Chinese exports surged by almost a fifth last month, official data showed Tuesday, as shipments of tech components and machinery helped the world’s second-largest economy weather pressure from the Middle East war.

The spike marks a bright spot for the Chinese leadership as it struggles to kickstart growth following the pandemic and amid trade frictions with the United States.

The 19.4 percent year-on-year jump in overseas shipments was driven largely by artificial intelligence and auto exports, the General Administration of Customs (GAC) said, and topped the 15.0 percent forecast in a Bloomberg survey of economists. It was also faster than April’s 14.1 percent jump.

Imports soared 27.4 percent year-on-year in May, topping the 26.0 percent estimated in the Bloomberg survey. That will come as some comfort to Beijing as it looks to shift the country’s drivers of growth away from manufacturing and towards domestic consumption.

Exports to the United States surged 35.4 percent on-year, as Donald Trump visited Beijing with trade high on the agenda. The surge also came from a low base of comparison after the US president sparked a trade war with Beijing in April last year.

Shipments to the world’s biggest economy hit $39 billion, according to the GAC, up from $28.8 billion 12 months ago.

“The strong export growth shows the competitiveness of the Chinese firms in the international market,” said Zhiwei Zhang of Pinpoint Asset Management.

“It helps to offset some of the weakness in the domestic demand.”

But, Zhang warned, there was still a risk of “potential escalation of trade tension between China and the major trading partners such as Europe”.

The European Union said last month it needed to act more forcefully to rebalance its trade relationship with China.

Talks held among European commissioners on protecting critical industries from Chinese rivals will feed further discussions at the G7 heads of state meeting in France and an EU leaders’ summit in Brussels this month.

Last month, China kept a trade surplus of $105 billion, from $85 billion in April, a gap that is worrying for European economies and other governments.

Experts are increasingly warning of a “China shock 2.0”, with a glut of inexpensive goods made in the Asian powerhouse threatening manufacturers around the world as trade deficits widen.

Despite surging trade, weaker demand and rising energy costs caused by the Middle East war have started to weigh on economic growth.

China’s factory activity was flat last month after two months of expansion, official data showed.

The country’s factories are facing higher costs with the prices of raw materials rising, particularly in the energy and chemical sectors, as shipping constraints remain a problem.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) yesterday identified the volatile global situation, US reciprocal tariffs, high bank interest rates, poor port operations, and LDC-related issues as the main reasons for the decline in garment exports over the past year.

"Both domestic and international factors are responsible for the slowdown," said BGMEA President Mahmud Hasan Khan after an emergency board meeting on the export slowdown held at the BGMEA office in Dhaka.

In the July–May period of the 2025–26 fiscal year, garment exports totalled $35.31 billion, posting a 3.41 percent year-on-year fall, according to the Export Promotion Bureau.

Khan said weakening global demand had prompted Western retailers and brands to hold back orders, as unsold inventory piled up on their shelves.

Uncertainty over US President Donald Trump's reciprocal tariffs — which were revised several times — compounded buyers’ hesitation.

The US–Israel war involving Iran disrupted shipment routes, raised air freight costs, extended lead times, and reduced buyer visits to Bangladesh, Khan said.

Small and medium enterprises were hit hardest as brands grew cautious about placing orders.

On the domestic front, high bank interest rates have eroded slim profit margins, discouraging entrepreneurs from expanding operations. An energy crisis has also forced factories to run at 60 to 70 percent capacity.

Bangladesh's impending graduation from least developed country (LDC) status has added further uncertainty, as buyers remain unsure whether the government's application for a three-year deferment will be granted.

Studies suggest Bangladesh could lose $17.5 billion in annual exports — 73 percent of which is LDC-induced. The country also lacks GSP Plus access to the European Union, where 49.15 percent of its apparel is destined.

Khan said he plans to prepare a policy paper and consult stakeholders, trade analysts, and economists before engaging the government on remedial measures.

Tokyo has officially confirmed it will provide Dhaka with $312 million to increase economic resilience and ensure a stable energy supply.
The Economic Relations Division (ERD) signed two documents related to the soft loan with Japan on Tuesday, the Japanese Embassy in Dhaka said in a media statement.

With this, Bangladesh is set to receive the first loan from the Japanese government's announcement of $10 billion in emergency aid for Asian countries in the energy sector following the war in West Asia.
ERD Secretary Md Shahriar Kader Siddiky and Japanese Ambassador to Bangladesh Saida Shinichi signed the “exchange of notes” involving economic resilience and energy sector.

After that, Siddiky and Chief Representative of Japan International Cooperation Agency (JICA) Bangladesh Office Takahashi Junko inked the loan agreement.

When the global energy market saw a growing crisis after the Iran war spread to West Asia, Japanese Prime Minister Takaichi Sanae organised the “Asia Zero Emission Community (AZEC) Plus Online Summit” on Apr 15.

At the conference, she pledged $10 billion in assistance under the “Partnership On Wide Energy and Resources Resilience (POWERR Asia)” initiative.

Addressing the event virtually, Prime Minister Tarique Rahman sought a $2 billion fund from development partners to meet Bangladesh’s immediate energy needs and safeguard economic stability.

On the loan to Bangladesh, the Japanese embassy said: “This timely support, in conjunction with Asian Development Bank, aims to address the socio-economic impacts in the context of recent global challenges, including rising energy prices and uncertainty in energy supply amid the deteriorating situation in the West Asia.”

Through this loan, Japan will support Bangladesh in financial management, improving the investment climate, and ensuring stable energy supply, the statement reads.

These sectors are essential for maintaining economic stability, the pace of reform, and long-term resilience, it adds.