The government is set to allow the private sector to build, operate and manage jetties and terminals at seaports. The initiative has been taken to expand trade and commerce, improve ease of doing business, and attract foreign investment.

To facilitate this, the shipping ministry is drafting the "Private Jetty and Terminal Construction, Operation and Management Policy-2026". The policy will be published soon, Shipping Secretary Md Zakaria told TBS on 10 May.

The draft states that import-export trade centred around seaports has expanded significantly. Considering future economic growth, more industries are expected to be set up, which will further increase trade volumes.

As a result, alongside the government, the private sector may be included in constructing, operating and managing jetties and terminals to ensure smooth cargo unloading, loading and other services, it says.

According to Bangladesh Bank data, Bangladesh exported goods worth $43.96 billion worldwide in FY2024-25, while imports stood at $64.36 billion during the same period, with 93% of external trade being handled through seaports.

According to the shipping ministry, in FY2024-25, ports handled 3 million TEUs of containers, 105 million tonnes of cargo, and 4,500 ships.

At times, current port capacity is insufficient to handle containers, cargo and ships efficiently, leading to congestion, delays in raw material supplies to factories and export shipments to destinations.

A jetty or berth is a port structure that includes platforms, stages, ramps and docking points where ships can safely berth for unloading, loading and transshipment.

Under the draft policy, private entrepreneurs will be able to establish such jetties on both government and privately owned land within port boundaries, subject to approval from the shipping ministry.

Companies in which the government holds shares will also be allowed to jointly establish such jetties with private investors.

Selection process must be transparent

East Coast Group Chairman Azam J Chowdhury told The Business Standard that the initiative is undoubtedly positive.

"It will benefit domestic entrepreneurs. The more terminals there are, the lower different service charges at ports will become. In most countries, port operations are managed by the private sector. At the same time, modern technology will be introduced, making port-related activities easier and faster," he said.

However, he added that the process for selecting who will receive responsibility for building and operating jetties must be transparent.

"If qualified institutions are not selected, the benefits of this policy will not be realised. It must be ensured that financially and technically capable organisations receive the responsibility," he said.

Speaking to TBS, BGMEA President Mahmud Hasan Khan said including the private sector in building, operating and managing jetties and terminals would create competition in service delivery.

"Customers will go wherever they receive better service. This will create competition between government and private services, ultimately benefiting users," he said.

How ports are managed globally

Port insiders said there are four types of port management systems globally: service port, tool port, landlord port and pure private port.

The government plans to allow private sector participation under the landlord port model.

In a landlord port, land belongs to the government, while most infrastructure is built and operated by the private sector. Bangladesh's Laldia Container Terminal and Patenga Container Terminal fall under this category.

Currently, Chattogram Port, Mongla Port and Payra Port operate under the tool port model.

In a tool port, land, infrastructure and equipment belong to the state or port authority, while private companies use the facilities for cargo loading and unloading.

A service port is fully state-owned, including land, infrastructure, equipment and labour.

A pure private port is one where everything, including land ownership, belongs to private entities.

India's Mundra Port, owned by Adani, is an example of a pure private port. Similar ports exist in the Philippines, Indonesia, Australia, the UK and Brazil.

The draft policy also states that private jetties and terminals must use the relevant port's operational system or an approved automated system.

They must pay designated fees to port authorities.

For customs operations, private jetties must provide the necessary infrastructure for customs officials.

Modern equipment and technology must be used for cargo loading, unloading and handling to reduce users' time, cost and physical presence.

Tariffs or fees for imports, exports and handling at private jetties will be determined by the port authority.

Private jetty owners and port authorities will sign separate tariff-sharing agreements specifying how revenue generated from the jetty or terminal will be divided.

According to the draft policy, the application fee for setting up such jetties or terminals will be Tk20 lakh, non-refundable.

Approved companies will also need to deposit Tk1 crore as security with the government.

Among the major port users are members of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), as more than 80% of the country's exports come from the ready-made garment sector.

The sector also imports cotton, yarn, fabrics and other raw materials.

Bangladesh currently has three seaports – Chattogram, Mongla and Payra. In addition, the Matarbari Deep Sea Port is under construction and expected to be operational this year.

Chattogram Port, with 18 jetties and container terminals, handles around 90% of the country's trade with the world. It has general cargo berths, container terminals and the New Mooring Container Terminal.

The National Board of Revenue is weighing doubling the source tax on export cash incentives provided by the government from 10% to 20% in the upcoming national budget, according to officials at the Ministry of Finance.

If implemented, the move could significantly boost tax collection from export incentive payments at a time when exporters – particularly the RMG sector, which accounts for nearly 85% of Bangladesh's export earnings – are already under mounting pressure from slowing shipments and rising costs.

In the current fiscal year 2025-26, the government allocated Tk9,025 crore for export incentives, including support for the jute export sector. If export performance and incentive rates remain unchanged in the next fiscal year, doubling the tax rate could generate around Tk900 crore in additional revenue for the government.

A budget-related meeting between Prime Minister Tarique Rahman and the NBR is scheduled for Thursday, according to relevant NBR sources. The meeting will review proposals that the NBR plans to incorporate into the finance bill.

Finance Minister Amir Khosru Mahmud Chowdhury, Prime Minister's Finance Adviser Rashed Al Mahmud Titumir, and budget-related officials from the Ministry of Finance are also expected to attend.

NBR officials said the proposals could be revised or expanded based on directives from the prime minister.

The finance ministry official said corporate tax rates in Bangladesh currently range from 22% to 27%, while in some cases they are as high as 45%.

"In comparison, the 10% tax on export incentives is relatively low. That is why increasing the tax rate for this sector is being considered," he said.

Exporters, however, believe raising taxes on incentives would be unjustified, arguing that the support has already been reduced over the years.

Mohammad Hatem, president of Bangladesh Knitwear Manufacturers and Exporters Association, told TBS, "The rate of these incentives has already been reduced over the past several years. These incentives are almost like charity for us. We had proposed abolishing the tax deduction imposed on these funds."

"If the tax is increased instead of reduced, it would be completely unreasonable," he said. "Garment exports are already declining, and entrepreneurs in this sector are currently under enormous pressure. Increasing taxes at this moment would create additional pressure on exporters."

Exporters also said they face significant harassment, lengthy delays, and procedural complications in receiving incentive payments due to audit requirements. They argued that further tax increases would reduce the practical value of the incentives.

Currently, around 43 export sectors, including the garment industry, are eligible for export incentives, with rates ranging from 0.30% to 10%.

All categories of garment exports receive a 0.30% incentive, while garment exports using locally sourced yarn receive 1.5%. Small and medium-sized exporters receive 2%, and exports to non-traditional markets receive 3%.

Leather and leather goods exporters receive incentives ranging from 6% to 10%, while jute and jute goods exporters receive between 3% and 10%.

A leader of the Bangladesh Garment Manufacturers and Exporters Association, speaking anonymously to TBS, said the industry had earlier been assured that taxes would not be increased in the next budget.

"The government had asked us not to seek any tax benefits in the upcoming budget. However, we were assured that taxes would not be increased," he said. "But now we are also hearing that taxes on export incentives may be increased."

The Dhaka Stock Exchange (DSE) witnessed a massive block transaction today (12 May), as 4.53 crore shares of BRAC Bank worth Tk335 crore changed hands.

The trades were executed at negotiated prices ranging between Tk71.30 and Tk74 per share. Market sources said the transaction, facilitated through City Brokerage Limited, was primarily part of a strategic reshuffle among foreign investment portfolios.

A senior brokerage official said such large-scale transactions are common when global asset managers reallocate holdings among different funds under their management to meet liquidity requirements or rebalance portfolios.

Block trades are large, privately negotiated transactions executed outside the public order book to avoid sharp price volatility. Under DSE regulations, any transaction valued at Tk5 lakh or more qualifies as a block trade.

As of April, foreign investors held a significant 36.22% stake in the bank, while sponsors and directors owned 46.17%, and institutional investors accounted for 11.48%.

The spike in block market activity follows the bank's strong financial performance. BRAC Bank recently became the first local private-sector lender to surpass the Tk2,000 crore profit milestone, posting a record consolidated net profit of Tk2,250.94 crore in 2025. The figure marked a staggering 57% year-on-year increase from the previous year.

In light of the record earnings, the bank's board recommended a 30% dividend for shareholders, comprising 15% cash and 15% stock dividends.

The bank has scheduled its annual general meeting for 11 June on a digital platform to finalise the dividends. The record date for determining eligible shareholders has been fixed for 17 May.

Oil prices rose by about 3 percent on Tuesday as stark differences ‌between the US and Iran on a proposal to end the war in the Middle East pushed supply concerns back into the spotlight.

Brent crude futures gained $2.85, or 2.7 percent, to $107.06 a barrel by 0931 GMT and US West Texas Intermediate was up $3.13, or ​3.2 percent, at $101.20. Both benchmarks climbed nearly 3 percent on Monday

Oil prices moved higher after President Trump ​cast doubt on the durability of the ceasefire with Iran, prolonging uncertainty around the ⁠Strait of Hormuz and global energy supplies, said MUFG analyst Soojin Kim.

US President Donald Trump said on Monday ​that the ceasefire was on "life support", pointing to disagreements over demands such as the cessation of hostilities on all ​fronts, the removal of a US naval blockade, the resumption of Iranian oil sales and compensation for war damage.

Iran also emphasised its sovereignty over the Strait of Hormuz, through which about a fifth of global oil and liquefied natural gas flows.

Disruptions ​linked to the near-closure of the strait have prompted producers to curtail exports, with a Reuters survey ​on Monday showing OPEC oil output in April fell to its lowest level in more than two decades.

"A genuine breakthrough towards ‌a ⁠peace deal could trigger a sharp $8 to $12 correction, while any escalation or renewed blockade threats would quickly push Brent back toward $115-plus," said KCM Trade analyst Tim Waterer.

Saudi Aramco CEO Amin Nasser had warned on Monday that disruptions to oil exports through the strait could delay a return to market stability until 2027, with the ​loss of about 100 million ​barrels of oil per ⁠week.

Elsewhere on the supply front, US crude stocks were estimated to have dropped by about 1.7 million barrels last week, a Reuters poll of analysts showed.

Walt ​Chancellor, energy strategist at Macquarie Group, said that strong waterborne export flows of ​crude and products ⁠are likely for the next several weeks.

Market participants were also keeping a close eye on President Trump's planned meeting with Chinese President Xi Jinping on Thursday and Friday after Washington imposed sanctions on three individuals and nine companies for ⁠facilitating ​Iranian oil shipments to China.

Tariffs imposed during the US-China trade war ​have halted most Chinese imports of US oil and LNG, which were worth $8.4 billion in 2024, the year before Trump began his second ​term.

The country’s remittance inflow registered a strong year-on-year growth of 41.7 percent, reaching $1,280 million in the first 11 days of May, according to the latest data released by Bangladesh Bank (BB).Bangladesh Investment Guide

During the same period last year, remittance inflow stood at $904 million.

The steady rise in inward remittances reflects continued resilience in external earnings and stronger inflows through formal banking channels, officials said.

Data also showed that expatriate Bangladeshis sent a total of $30,613 million in remittances during the period from July to May 11 of the current fiscal year. In comparison, the inflow was $25,441 million during the corresponding period of the previous fiscal year.

The upward trend in remittance earnings is expected to provide support to the country’s foreign exchange reserves and help stabilise the external sector, analysts added.

Bangladesh Bank has purchased dollars from commercial banks for two consecutive days in the second week of May.
FE

The central bank bought $20 million from a commercial bank on Tuesday at a rate of Tk 122.75 per dollar, according to officials.

A day earlier, the regulator purchased $45 million from another bank at the same rate.

Arief Hossain Khan, executive director and spokesperson for the central bank, told bdnews24.com: “So far this month, up to $145 million has been purchased from the market.”Stock Market Data

The central bank’s cut-off rate for dollar purchases throughout May has remained Tk 122.75 per dollar.

According to Bangladesh Bank data, the regulator has bought a total of $5.82 billion from the market so far in the current fiscal year.

Following the trend of previous months, inward remittance has continued to maintain positive momentum in May.

In the first 11 days of the month, expatriates sent $1.44 billion in remittances, which is 56.4 percent higher than the same period last year.

During the corresponding period in 2025, remittance inflow stood at $922 million, the central bank said.

The increased remittance inflow has boosted foreign currency holdings at commercial banks, with many banks exceeding their foreign exchange retention limits.

At the same time, dollar demand has remained subdued due to lower import pressure.

In such a situation, Bangladesh Bank has been absorbing dollars from the market to provide local currency liquidity against remittances and maintain exchange rate stability.

The move is helping the central bank stabilise the dollar market while also increasing foreign exchange reserves.

On May 7, Bangladesh paid $1.51 billion in liabilities to the Asian Clearing Union (ACU).

Following the payment, Bangladesh Bank resumed dollar purchases on Monday after reserves declined.

The central bank again bought dollars on Tuesday to further strengthen reserves.

After Monday’s purchase, foreign exchange reserves stood at $29.56 billion under the BPM6 calculation method and $34.22 billion in gross terms, according to Bangladesh Bank data.

Fresh nuclear fuel has been successfully loaded into the reactor core of Unit-1 at the Rooppur Nuclear Power Plant, marking a major milestone toward the plant's commissioning and electricity generation.

The fuel loading process began on 28 April and involved the sequential insertion of 163 fuel assemblies into the reactor core, according to officials involved in the project.

The operation is considered one of the most critical stages before the unit begins commercial power generation.

Alexey Deriy, vice president of Atomstroyexport, said the work was carried out in full compliance with the initial core loading programme, operational regulations and international nuclear safety standards.

"The next stage includes installation of the upper reactor unit and integration of all required in-core instrumentation systems," he said.

"Hundreds of additional tests will then be conducted to ensure the reliable and safe operation of all process systems."

According to him, the reactor will soon be brought to its minimum controllable power level, after which capacity will gradually be increased.

These procedures will pave the way for power startup and trial commercial operation of Unit-1.

The Rooppur Nuclear Power Plant, Bangladesh's first nuclear power facility, is being constructed with Russian technical and financial assistance.

The project includes two VVER-1200 reactors with a combined generation capacity of 2,400 megawatts.

Officials said the Generation III+ reactor design complies with international nuclear safety standards.

The engineering division of Rosatom is serving as the project's general designer and contractor.

A foreign-aid laden annual development budget of Tk 3.0 trillion in size is forthcoming as the new government has proposed 53-percent hike in project assistance for bankrolling its recipe,
FE

Officials say for the first time in two decades that such foreign loan-dependent development programme is being framed, now that the time of tightfisted of interim era is over.

Considering external and internal economic shocks, the past interim government slashed the project aid for consecutive two years for reducing dependence on foreign loan, but this government overturns that policy, they say.Economic Trend Reports

The project-aid target, mainly foreign loans, in the upcoming Annual Development Programme, accompanying the national budget, has been proposed at Tk 380 billion that is 53-percent higher than that in the revised ADP of the outgoing fiscal year FY2025-26, Ministry of Finance (MoF) and Planning Commission (PC) officials said Tuesday.

The PC has already finalised the Tk 3.0 trillion ADP for the next fiscal year (FY2027) with Tk 1.10 trillion targeted as project aid, to be borrowed from external sources. The remaining funds worth Tk 1.90 trillion will come from internal resources.

In the current fiscal's Tk 2.0-trillion ADP, the government allocated Tk 720 billion worth of PA, mostly come from foreign loans, while the remaining Tk 1.28 trillion is being provided from state coffers, usually mobilised from revenue income.

According to an FE analysis, Bangladesh government's highest growth in project-loan allocation in the ADP was in FY2016-17 as Bangladesh started the Rooppur nuclear power plant and metro-rail construction works.

Meanwhile, in the last FY2025, foreign debt, including interest and principal, was repaid with Tk 500 billion -- the highest ever.Business News Alerts

In the current FY2026, foreign-debt service cost Tk 430.61 billion during the first 9 months (July to March).

This foreign debt-repayment rate is 10-percent higher over the same period of the last fiscal year. The repayment rate has reached a point where it is more than the amount of loan received from development partners every month.

The installment repayment of the loan taken from Russia for the Rooppur Nuclear Power Plant will start soon, which will add up to the current debt-servicing obligation. According to the Economic Relations Division (ERD), some Tk 46.36 billion will have to be repaid every year. The time schedule for the repayment of many other big loans would also start within next few years.

Economist Masrur Reaz says the dependency on foreign loan would put further pressure on the repayment amid the lower revenue-income base.

"Following the current domestic and international situation, though the government has no good alternative except for borrowing foreign loans, but their best utilisation would have to be ensured," Dr Masrur notes.

According to a report by the Implementation and Monitoring Department (IMED) of the Ministry of Planning, government dependence on foreign loans and grants had increased in the last five fiscal years. The rate of use of domestic resources has decreased.Bangladesh Investment Guide

Meanwhile, the scope for loans on easy terms is becoming limited as most of the donors going for lending market-based loans. This has created additional pressure on loan repayment.

Some major development partners, including the World Bank, the Asian Development Bank (ADB) and Japan International Cooperation Agency JICA, are gradually making their terms and conditions harder.

Incidentally, currently, almost all of the foreign loans and grants in development projects are mainly loans. Grants are very small.

According to the Economic Relations Department (ERD), 90.67 per cent of the money released from development partners in the last fiscal year 2024-25 came as loans. Only 9.33 per cent were grants.

Officials of ERD and PC have told the FE that the proposed Tk 3.0-trillion ADP with the allocation of Tk 1.10-trillion project aid has been prepared by considering the government's election manifesto, the demands of various ministries, and the progress in the implementation of the ADP during the last 9 months.

The proposed ADP will be presented for approval in the National Economic Council (NEC) meeting soon ahead of presentation in parliament along with the national budget which is forecast to be around Tk 9.0 trillion in size.Economic Trend Reports

Meanwhile, the updated report of IMED shows that 40 per cent of the total allocation for foreign loans had been spent in the last nine months till March.

The Bangladesh Bank (BB) has allowed scheduled banks to launch fully digital “e-loan” services of up to Tk 50,000, stepping up efforts to widen financial inclusion and support the transformation towards digital transactions.

In a circular issued yesterday, the central bank said customers will be able to take e-loans for up to 12 months through end-to-end digital processes. These will cover customer onboarding, loan approval, disbursement and recovery.

Banks have been instructed to include the term “e-loan” in the service name and ensure that all stages of lending are conducted digitally, without physical documents or branch visits.

The move comes at a time when digital lending services are rapidly expanding globally due to increasing smartphone penetration, internet usage and mobile financial service adoption.

In many countries, banks and fintech firms now offer instant small-ticket loans through banking apps, e-wallets and other digital platforms, expanding access to credit and reducing reliance on informal borrowing.

The BB said the increasing use of digital devices in banking, along with expanded internet and mobile network coverage, has raised demand for digital lending through internet banking, mobile apps, mobile financial services and e-wallets.

“The availability of such services can play a vital role in promoting financial inclusion, familiarising marginal populations with digital financial services, and achieving the vision of a cashless society,” the central bank said in the circular.

Banks will be allowed to set market-based interest rates for e-loans. However, the rate cannot exceed 9 percent if they avail themselves of refinancing facilities.

The central bank has instructed lenders to clearly communicate all loan-related information, including annual interest rates, tenure, repayment methods, the disbursement process and any additional charges, before obtaining customer consent.

Banks have also been asked to take necessary steps to improve customer-level financial literacy regarding digital loans.

To strengthen security, the BB said customer identity verification must be conducted through biometric authentication alongside OTP and two-factor authentication (2FA) or multi-factor authentication (MFA), where necessary.

However, agents or third parties engaged by banks will not be allowed to store customers’ biometric data.

The central bank directed commercial lenders to follow existing rules on interest calculation, fees, loan classification and provisioning, while prohibiting CIB inquiry charges for e-loans.

Banks must prevent defaulted borrowers from accessing such loans by verifying existing liabilities before disbursement.

The central bank also mandated a six-month pilot before commercial launch and stressed strict compliance with cybersecurity and data protection laws, requiring all customer and loan-related data to be stored within Bangladesh.

Bangladesh already has experience in digital nano-lending through partnerships between banks and mobile financial service providers. In 2021, bKash and City Bank jointly launched an instant nano-loan service that offers small loans to selected users through the bKash app.

Several other banks have introduced digital lending products.

Dhaka Bank launched “e-Rin”, an end-to-end digital nano-loan service through its mobile app. Prime Bank introduced “PrimeAgrim” through its app, while BRAC Bank has also rolled out digital lending services.

As President Donald Trump prepares to meet with Chinese President Xi Jinping this week, the US auto industry and lawmakers on both sides of the aisle are hammering him with ​a simple message: Please don’t offer China any access to the US car market.

Trump in January told the Detroit Economic Club that it would be “great” if Chinese automakers wanted to build ‌plants in the US and employ Americans, adding: “I love that. Let China come in, let Japan come in.”

His comments rang alarm bells in an industry that had systematically lobbied successive administrations to bar Chinese cars from the US market with tough data security rules and high tariffs on electric vehicles.

So automakers, suppliers, steelmakers, unions and politicians have redoubled their efforts, arguing that Chinese automakers, with limitless state support, massive scale, an EV technology edge and rock-bottom prices, would crush domestic and other foreign producers, hollowing out the core ​of the US manufacturing base.

Democratic Senator Elissa Slotkin of Michigan went to the same forum in Detroit on Thursday specifically to urge Trump not to make a deal with Xi to allow Chinese investment ​in the US auto sector that brings Chinese-brand cars into US dealerships.

“Please don’t make a bad deal,” said Slotkin, who also promoted her bipartisan bill with Republican Senator Bernie Moreno of Ohio that would explicitly bar Chinese vehicles over data collection concerns.

Their Connected Vehicle Security Act, which has a bipartisan companion bill in the House of Representatives, would codify a data rule effectively banning ​Chinese vehicles implemented by former President Joe Biden, making a reversal extremely difficult.

The House bill would go further, banning industry partnerships with Chinese companies. Congressional aides told Reuters that with broad support, the legislation could pass this year, possibly ​attached to a transportation spending bill.

“Every vehicle on American roads is a rolling data collection device, capturing information on location, movement, people, and infrastructure in real time, and we cannot allow Chinese vehicles or components to be a part of that system,” sponsoring representatives Debbie Dingell, a Democrat, and John Moolenaar, a Republican, said in a joint statement.

They are both from auto-heavy districts in Michigan. Some 74 House Democrats, and 52 House Republicans signed letters recently urging Trump not to allow Chinese automakers to enter the American market.

INDUSTRY ​BACKS CHINESE AUTO BAN

The US auto industry has shown unusual unity in supporting a ban.

Groups representing US and foreign-brand automakers, car dealers and parts manufacturers in March told the administration that China’s efforts to dominate global auto ​production and gain access to the US market “pose a direct threat to America’s global competitiveness, national security and automotive industrial base.”

Steel industry groups followed through with a similar letter on April 30, and the Information Technology and Innovation Foundation (ITIF), which has criticized Trump’s ‌past tariffs on Chinese imports, also applauded the legislation to ban Chinese vehicles.

“Chinese automakers are not normal market competitors. Their EVs are the product of decades of state-backed mercantilism designed to help China capture global leadership in advanced industries,” said ITIF vice president Stephen Ezell.

“Once China’s subsidized firms are embedded in the US market, the economic and national security damage would be far harder to reverse — and it would not be limited to Detroit,” Ezell added.

US Trade Representative Jamieson Greer said in Detroit in April that there were no plans to change the connected car rule, and that autos were not on the agenda at the Beijing summit. Commerce Secretary Howard Lutnick also has ruled out Chinese investments in ​the US autos sector.

But Scott Paul, president of the Alliance ​for American Manufacturing, a domestic industries group, said there is a strong concern that Trump, who often talks of attracting more auto assembly plants to the US, could act alone.

“He’s left wiggle room in dealing with the auto sector,” Paul said.

Any plant approved would take two-to-three years to launch production, leaving consequences to Trump’s successor.

The White House and the Chinese embassy in Washington did not ​respond to requests for comment on the matter.

LOW PRICES, MARKET SHARE GAINS

The industry wants to avoid a repeat of Chinese automakers’ steady market share gains in ​Europe and Mexico. A growing auto affordability crisis in the US, where Kelley Blue Book estimates the average vehicle list price now exceeds $51,000, makes existing producers especially vulnerable to cheaper Chinese models.

Last year, Chinese brands doubled their share of Europe’s car market to 6 percent, but took 14 percent of Norway’s market, 9 percent in Italy, 11 percent in Britain and 9 percent in Spain, and consumer interest in Chinese EVs is growing as the Iran war spikes gasoline prices.

Canada is beginning to import 49,000 Chinese EVs annually and 34 Chinese auto brands are now on ​sale in Mexico, accounting for about 15 percent of that market at prices far below anything available in the US.

Geely’s EX2 EV starts ​at about $22,700 in Mexico, more than twice its price in the cut-throat Chinese market, but far below the cheapest Tesla Model 3 US price of $38,630.

Even Toyota, which undercut Detroit automakers in the 1980s and 1990s, is having difficulty with Chinese pricing in the Mexican market, said Toyota Motor ​North America division manager David Christ.

“Obviously there’s some level of government support, or else they couldn’t transact at that price,” Christ said in an interview. “So it has a huge impact on business.”

The Bangladesh Telecommunication Regulatory Commission (BTRC) has decided to restart joint drives against the marketing, sale and distribution of illegal mobile handsets after more than three years of inactivity.

The decision was taken at a recent commission meeting following a proposal from its Enforcement and Inspection (E&I) Directorate.

Alongside mobile phones, the regulator will also take action against other illegal radio and telecom devices across the country.

The BTRC has long carried out joint operations with law enforcement agencies to curb illegal telecom equipment, including unauthorised mobile phones and wireless devices.

While enforcement against items such as signal jammers, boosters, repeaters and illegal VoIP equipment has continued, action against illegal handset traders has remained suspended since April 2023.

According to BTRC documents, the enforcement activities were paused due to the rollout of the National Equipment Identity Register (NEIR) system and preparations for the 13th national parliamentary election in 2026.

The NEIR system was introduced in 2021 to verify legal mobile devices by linking IMEI numbers with national ID and SIM data. However, key features like blocking illegal handsets were never activated, leaving the system largely inactive.

Although the platform has recently been relaunched, handset blocking is still awaiting a policy decision from the new government, a BTRC official said.

The commission has recently observed a sharp rise in the use, production, import, marketing and sale of illegal mobile handsets and wireless equipment in divisional cities, city corporations and district towns.

It noted that these activities are punishable under the Bangladesh Telecommunication Regulatory Act, 2001.

Industry insiders said weak enforcement over time, the depreciation of the taka, rising global handset component prices and repeated tax increases have all contributed to the growth of the illegal handset market in Bangladesh, particularly in the smartphone segment.

According to industry estimates and BTRC data, grey-market smartphones now account for 40 to 50 percent of the country’s handset market, which is valued at around 1.7 billion US dollars. The grey market is expected to exceed 0.7 billion US dollars in 2025.

Data from Samsung shows that grey-market imports rose from 24 percent in 2022 to 40 percent in 2024. In the same year, 93 percent of premium phones from one brand and around 69 percent of mid-range phones in Bangladesh entered the market through unofficial channels.

The commission said illegal handsets and wireless devices are causing several problems, including consumers being misled with low-quality products, loss of government revenue from illegal imports, disruption in telecom regulation and network management, and financial losses for legitimate handset manufacturers.

In response, the E&I Directorate proposed restarting joint drives with law enforcement agencies, including the Rapid Action Battalion, police and executive magistrates, to stop these activities nationwide.

The commission has decided that enforcement drives will resume at an appropriate time after further instructions.

In a stark revelation of the deep-rooted financial distress within the country's largest private sector lender, Islami Bank Bangladesh PLC has reported that its classified loans skyrocketed by 44% to reach a staggering Tk94,322 crore at the end of 2025.

The figure, disclosed in the bank's latest audited financial statements, marks the highest volume of bad loans ever recorded by a single bank in Bangladesh's banking history.

The escalation of non-performing loans (NPLs) means that bad debt now accounts for a massive 51% of the bank's total loan portfolio, a sharp increase from the 42.36% recorded just a year earlier in 2024.

The magnitude of Islami Bank's crisis is further evidenced by its share of the national burden.

According to data from Bangladesh Bank, total classified loans across the sector stood at Tk5.57 lakh crore at the end of 2025, meaning Islami Bank alone accounts for 17% of the banking sector's total defaulted debt.

To provide context, Janata Bank holds the second-highest volume of classified loans in the country, which stood at Tk72,804 crore during the same period.

A senior official of the bank attributed this unprecedented surge to the exposure of "hidden" bad loans linked to the S Alam Group. The official explained that the previous management had systematically concealed these irregularities, but the new management's efforts to reveal the actual data have resulted in the skyrocketing numbers.

The 2025 audit report, prepared by Mahfel Huq and Co, chartered accountants, also revealed a massive gap in the bank's provisioning against bad assets.

The auditors issued a qualified opinion, noting that as of 31 December 2025, the bank required a total provision of Tk92,537.56 crore against its bad investments and assets. However, the lender maintained provisions of only Tk7,922.41 crore, leaving a monumental shortfall of Tk84,615.15 crore.

According to the auditors, failure to recognise the full provision shortfall significantly overstated the bank's assets, net profit and equity while understating its liabilities.

Furthermore, the audit firm drew attention to the bank's "going concern" status, stating that the financial statements were prepared based on the assumption that the bank will continue to operate only due to the extraordinary regulatory forbearance extended by Bangladesh Bank.

The auditors noted that the bank's ability to remain operational is entirely dependent on the central bank's ongoing policy support.

The bank's capital position is equally precarious. While the required capital based on Risk-Weighted Assets was Tk19,200.91 crore, the bank reported capital of only Tk9,855.19 crore.

This indicates a reported capital shortfall of Tk9,345.72 crore. However, the auditor clarified that if the Tk84,615 crore provision shortfall were fully taken into account, the bank's regulatory capital shortfall would actually reach a nearly incomprehensible Tk93,960.92 crore.

Under standard central bank directives, Islami Bank was required to maintain a Capital Adequacy Ratio (CRAR) of 12.50%, but it managed to report only 6.42%. Most tellingly, the auditor pointed out that without the central bank's special intervention, the bank would have incurred a solo aggregate loss of Tk84,507.83 crore for the year 2025.

Despite these grim realities, Bangladesh Bank granted the lender permission on 28 April 2026 to finalise its financial statements without incorporating the full provision adjustment.

This move was allowed due to the bank's insufficient profits, provided the shortfall was adequately disclosed to the market. In exchange for this life support, bank management must now submit a board-approved, time-bound action plan within one month to address the massive deficit, the auditor said.

The bank's exposure to the S Alam Group remains the primary engine of this collapse. Major borrowers identified in the report include S Alam Steels and Refined Sugar Industries, with an exposure of Tk10,394 crore; S Alam Vegetable Oil, with Tk14,899 crore; and S Alam Super Edible Oil, with Tk12,983 crore.

Financially, the bank's core performance has dwindled. Net investment income plunged by 40% to Tk1,847 crore in 2025. While the bank reported a technical net profit of Tk136 crore, this figure exists only because of the aforementioned regulatory forbearance.

As a result, the bank declared no dividend for its shareholders for the second consecutive year. This failure to reward investors has led to the bank being downgraded to the 'Z' or junk category on the stock exchange.

The market reaction has been one of paralysis. Currently, Islami Bank shares remain stuck at the floor price of Tk32.60.

Meanwhile, around 83% of the bank's total shares, which are linked to the S Alam Group, have been confiscated following orders from the central bank.

DBH Finance PLC has reported results for the first quarter of the year ended on March 31, 2026.

For the quarter, the company reported net profit after tax of Tk 196 million, which is 26 per cent higher than the corresponding quarter of the previous year, said a press release.

Its EPS for the quarter stood at Tk 0.97 compared with that of Tk 0.77 of the same quarter last year. Net interest income rose by 31 per cent and operating income increased by 8 per cent for the quarter.

The company’s NPL remained around 1 per cent of the portfolio, which is one of the lowest in the industry.

As per the release, DBH Finance achieved highest Credit Rating AAA for twenty consecutive years.

Commenting on quarterly results, managing director and chief executive officer Nasimul Baten said, ‘Our results reflect our operational strength and customer-first approach. In a difficult macro environment, our sustained focus on efficiency, service excellence and asset quality continues to drive DBH’s success and set itself apart from most of the other financial institutions of the country.’

DBH is serving customers through its 17 branches covering all divisional headquarters and providing financial assistance for creating home ownership through its conventional schemes as well as Islamic finance wing. Also, the company is collecting term deposits and Mudaraba deposits from the retail and corporate customers.

DBH has a loan portfolio of Tk 4,538 crore and a deposit portfolio of Tk 4,618 crore as on March 31, 2026.

The Middle East war triggered the world's largest energy shock, with market recovery likely to extend into 2027 even if the Hormuz blockade is lifted soon, Saudi oil giant Aramco's CEO told investors Monday (11 May).

A day earlier, Aramco had announced a net profit rise of more than 25% in the first quarter of 2026 compared to the same period last year, fuelled by higher oil prices as exports remain blocked in the Strait of Hormuz.

"The energy supply shock that began in the first quarter is the largest the world has ever experienced," said Aramco CEO and president Amin H. Nasser.

"If the Strait of Hormuz opens today (11 May), it will still take months for the market to rebalance, and if its opening is delayed by a few more weeks, then normalisation will last into 2027," he added.

Crude prices jumped during the first quarter from the mid $60s in early February to more than $100 a barrel in March as Iran's shutdown of the key waterway sparked a global energy crisis.

The market has seen an "unprecedented supply loss of about a billion barrels of oil", he said, putting the figure at roughly 880 million barrels.

"If the current disruptions continue at this rate, the market will lose around 100 million barrels for every week the Strait of Hormuz remains closed," he added.

The loss was offset in part by oil flows bypassing Hormuz, the release of strategic government petroleum reserves, and Saudi Arabia's East-West pipeline -- which avoids the blockaded strait, he said.

Saudi Arabia has used the pipeline at its maximum capacity of 7 million barrels per day to deliver oil despite the blockade.

US-Iran talks have failed to produce a lasting deal following a truce last month, with US President Trump on Sunday (10 May) rejecting Tehran's response to Washington's proposal as "totally unacceptable".

"If and when normal trade and shipping resume, we anticipate a very robust return to demand growth significantly higher than the initial estimate for the growth in 2026," Nasser said.

The oil-rich Gulf has borne the brunt of Iran's attacks during the war, with Tehran targeting US assets but also civilian infrastructure, including energy facilities.

In Saudi Arabia, facilities in Riyadh, the Eastern Province, and the industrial city of Yanbu were all targeted. This included infrastructure for oil and gas production, transport and refining, and petrochemical plants and power facilities.

IPDC Finance PLC reported a 78.52 percent year-on-year increase in net profit after tax to Tk 6.5 crore in the first quarter of 2026, driven by higher net interest income, strong investment earnings and disciplined cost management.
Earnings per share rose to Tk 0.16 in the January-March quarter from Tk 0.09 a year earlier, reflecting improved after-tax profitability
Despite a challenging macroeconomic environment, operating income grew 24.40 percent year-on-year to Tk 94.2 crore, according to a press release.

Gross interest income increased 6.01 percent year-on-year to Tk 242.5 crore, supported by sustained asset portfolio deployment and prudent lending. Interest expenses rose at a slower pace of 1.74 percent to Tk 184.4 crore, reflecting easing funding costs.

As a result, net interest income expanded 22.33 percent year-on-year to Tk 58.1 crore, reversing the margin pressure experienced through much of 2025.

“Our first-quarter performance reflects the resilience of IPDC’s business fundamentals and the disciplined execution of our strategic priorities,” said Rizwan Dawood Shams, managing director of the company.

“We remain committed to maintaining sound risk management practices and creating long-term value for all stakeholders while supporting Bangladesh’s evolving economic aspirations,” he added.
Investment income, a major growth driver, climbed 32.51 percent year-on-year to Tk 31.7 crore due to stronger yields from government securities and a broader treasury portfolio. Commission and brokerage income also rose 13.29 percent to Tk 38 crore.

Operating expenses increased only 3.52 percent year-on-year to Tk 39.7 crore, helping profit before provision jump 45.79 percent to Tk 54.5 crore.

As of March 31, 2026, loans, advances and leases stood at Tk 7,374.3 crore, down 1.18 percent from December 2025, reflecting selective credit deployment amid a recovering demand environment.

Total deposits grew 1.60 percent to Tk 6,324.7 crore, reinforcing the company’s funding base and depositor confidence.

Meanwhile, the company’s net asset value rose to Tk 18.01 in March 2026 from Tk 17.85 in December 2025.

Indian shares opened lower on Monday, weighed down by higher oil prices after the US and Iran failed to reach a peace deal, while jewellery and travel-linked stocks fell after Prime Minister Narendra Modi urged citizens to limit travel and gold purchases due to the Iran war.

The Nifty 50 fell 0.85% to 23,970.10 as of 9:15 am IST, while the BSE Sensex shed 0.89% to 76,638.09.

All 16 major sectors logged losses at the open. The broader small-caps and mid-caps lost 0.5% each.

Oil marketing companies such as BPCL, HPCL and Indian Oil fell about 1% each, while travel-linked stocks also declined, after Modi urged citizens to reduce fuel consumption and limit non-essential foreign travel amid the Iran war.

Jewellery stocks Titan, Senco Gold and Kalyan Jewellers lost between 3% to 4.5% after the comments.

Airline operator Interglobe Aviation lost 3.2%.

Brent crude jumped 4.1% to about $105.5 a barrel after US President Donald Trump on Sunday dismissed the Iranian response to Washington's proposal for peace talks as "unacceptable".

Higher crude prices are detrimental for the world's third-largest oil importer, as they exacerbate inflationary pressures and weigh on growth and corporate earnings.

The dollar was steady on Monday after US President Donald ​Trump rejected Iran’s response to a US peace proposal, sending oil prices higher and prompting renewed concerns that ‌the conflict in the Middle East will drag on.

The US dollar index , which measures the greenback’s strength against a basket of six currencies, was little changed at 97.995.

Oil prices, meanwhile, jumped, with Brent crude up 3.6 percent at $104.94 a barrel, after President Donald Trump on Sunday rejected Iran’s response to a US proposal for peace ​talks, raising worries that the 10-week-old conflict may drag on.

Yet, markets still seem to believe that the conflict will be resolved, ​said Kenneth Broux, head of corporate research for FX and rates at Societe Generale.

“I think the reason for that may be the involvement of China,” he said. “The summit with China and the US later this week is, ​for me, the main event really,” Broux said, pointing to the influence the two countries have in the Middle East.

Trump and Chinese President Xi Jinping are set to discuss Iran, Taiwan, artificial intelligence, nuclear weapons and critical minerals when they meet, according to US officials.

Inflation and growth worries linked to higher oil prices, as well as any potential reaction from central banks, also continue to play on the ​market’s mind, Broux said.

US inflation data for April is due this week after the US jobs report released Friday showed that non-farm ​payrolls increased 115,000 in April, almost twice as fast as expected. Those figures reinforced expectations the Federal Reserve would keep interest rates unchanged for ‌some ⁠time.

The Fed held rates steady last month as expected, but the decision exposed its deepest split in decades, with three officials dissenting against signalling future rate cuts.

The Bangladesh Association of Banks (BAB) has urged the central bank to relax eligibility criteria for refinance schemes by removing current restrictions on banks with high non-performing loans (NPLs) and reducing general provisioning for rescheduled loans.

In a letter to the governor yesterday, the association proposed banks with NPL ratio below 20% should remain eligible for refinance and prefinance schemes for at least the next five years. It also requested to reduce the general provisioning requirement for rescheduled loans from 5% to 1%.

Currently, banks with high NPL ratios are often excluded from these facilities, which BAB argues unintentionally limits credit support to productive sectors such as SMEs, agriculture, and exports.

The BAB also sought policy support for income recognition during grace periods and several other reforms to help the sector navigate its current "challenging phase".

The letter highlighted that the banking sector is grappling with elevated NPLs, provisioning shortfalls, and liquidity pressures, necessitating coordinated and pragmatic policy interventions to restore investor confidence and maintain credit flow to the real economy.

Reforming rescheduled loan classification, provisioning

BAB has also expressed concerns over the financial impact of current regulatory treatment of policy-supported rescheduled loans. Under existing rules, these loans are generally treated as Special Mention Accounts (SMA), requiring a 5% general provision and carrying a 150% risk weight.

The association argued that these requirements place undue pressure on Capital Adequacy Ratios (CAR) and limit fresh lending capacity. Consequently, BAB requested the central bank to treat compliant policy-supported rescheduled loans as Unclassified (UC), reduce the general provision requirement from 5% to 1%, and assign a more moderate risk weight instead of the current 150%.

Furthermore, BAB pointed to a mismatch where banks incur funding costs on deposits during a borrower's one-to-two-year grace period but cannot recognise interest income.

The association proposed allowing accrual-based income recognition during the grace period or immediate recognition upon the expiry of the grace period to protect bank profitability.

Addressing capital pressures and tax hurdles

The letter also detailed how certain tax policies and market classifications are hurting the sector's stability. BAB requested an exemption from the 10% additional tax on stock dividends for banks maintaining capital adequacy under Basel III.

The association said penalising the retention of earnings through stock dividends discourages banks from strengthening their Tier-1 capital.

Additionally, BAB proposed several fiscal measures for the upcoming national budget, including reducing the corporate tax rate for listed banks to 30%, allowing loan-loss provisions as tax-deductible expenses for at least five years, and preventing the automatic migration of banks to the "Z Category" on the stock exchange if they are under approved restructuring or transformation programmes.

Strengthening recovery through AMC and legal reforms

To address "legacy NPL challenges", BAB proposed establishing a professionally managed national Asset Management Company (AMC). The AMC would acquire large classified portfolios, conduct forensic investigations, and facilitate faster settlements.

On the legal front, the association called for amendments to the Artha Rin Adalat Ain to include ultimate beneficiaries and the introduction of fast-track financial courts. It said judicial bottlenecks, such as the misuse of stay orders, continue to delay the recovery of classified loans.

Bank owners fear return of former directors

Also yesterday, leaders of the BAB met Governor Mostakur Rahman.

Speaking to reporters after the meeting, BAB Chairman and Dhaka Bank Chairman Abdul Hai Sarker said the association was concerned about a provision in the amended Bank Resolution Act that could allow former bank owners to return to banks.

He said the amended law had created scope for individuals who had siphoned money from banks to return. "People know who took money from banks. If they are allowed to return, public confidence in the banking sector will weaken further, creating the risk of another crisis."

He added that the government should consider the issue more carefully. He further said important policy decisions such as amendments to banking laws should be discussed with stakeholders beforehand.

The BAB chairman said the governor had assured them that former owners would not be able to return without fully complying with the conditions outlined in Section 18(A) of the amended law.

The meeting was also attended by former FBCCI president and Shahjalal Islami Bank Director AK Azad, United Commercial Bank Chairman Sharif Zahir, Pubali Bank Chairman Monzurur Rahman and Bank Asia Chairman Romo Rouf Chowdhury.

A high-powered committee led by the Bangladesh Bank has recommended extending the maturity of Beximco Ltd's Tk3,000 crore green sukuk by six years to 2032, instead of its scheduled maturity in December 2026, to avoid a potential default and protect institutional investors heavily exposed to the instrument.

The recommendation was finalised at a meeting held at the central bank yesterday under the leadership of Deputy Governor Md Kabir Ahmed, where the committee reviewed the feasibility of restructuring the terms and conditions of the "Beximco Green Sukuk Al Istisna".
The proposed extension remains subject to approval by the Bangladesh Securities and Exchange Commission, which has regulatory authority over bond approvals, tenure extensions and changes to profit rates.

Officials familiar with the discussions said the existing 9% profit rate on the sukuk could increase by around 1 to 1.5 percentage points following the extension, linked to the yield on five-year treasury bonds. The current yield on five-year government treasury bonds stands at 10.78%.
Cenbank moves to prevent default

The decision follows months of discussions within two separate committees formed to examine the sukuk's restructuring.

Earlier, a Bangladesh Bank high-level committee and a separate 21-member working committee led by the Investment Corporation of Bangladesh, the trustee of the sukuk, had discussed extending the instrument's tenure.
However, officials said the central bank committee has now reached a final decision in favour of extending the maturity period.
Under the proposed arrangement, the ICB will formally inform the securities regulator of the committee's decision and initiate the required process for obtaining approval for the extension.

Officials at the meeting said the trustee would not inject additional funds to complete the partially developed Korotoa Solar Park, which had been financed through the sukuk's sinking fund.

The project suffered severe damage during political unrest surrounding the change in government in August 2024, when machinery and transformers at the solar park were burned, preventing the project from being connected to the national transmission grid.

According to officials, approximately Tk150 crore will now be required to make the project operational.

However, Beximco or a third-party investor may still revive the project with fresh investment. Any new investment would be recoverable only after sukuk investors are fully repaid.

Institutional investors heavily exposed

An official present at the meeting said Beximco Ltd's operations had effectively come to a halt following the political transition last year, making it impossible for the company to repay investors within the current maturity period ending in December 2026.

He said around 97% of the sukuk investors are institutional investors, primarily banks and bank subsidiaries. Failure to repay investors on time would place significant pressure on the banking sector, as banks could face provisioning requirements if the instrument were to fall into default.

"Considering the overall situation, the committee decided to extend the maturity period," the official said.

According to ICB's calculations, the Teesta Solar Plant financed through sukuk proceeds is currently supplying 200MW of electricity to the national grid and generating around Tk50 crore in monthly revenue.

Of that amount, approximately Tk7 crore is paid to Beximco as operational expenses, while the remaining revenue is used for periodic profit payments and contributions to the sinking fund.

Based on these cash flows, officials estimate that the sukuk, which has around Tk2,800 crore outstanding now, could generate around Tk3,600 crore in revenue over an additional 72 months.

ICB estimates also show that approximately seven months remain before the current maturity period expires. During this period, the project is expected to generate around Tk350 crore in additional revenue, while nearly Tk600 crore has already accumulated in the sinking fund.

Officials believe these funds, combined with cash flows generated during the extended tenure, would allow full repayment to investors within the revised maturity period.

Delays and project setbacks

Bangladesh Bank formed a 10-member committee last year to review and restructure the sukuk's terms. The committee included senior officials from Bangladesh Bank, ICB, the Bangladesh Securities and Exchange Commission, the Bangladesh Power Development Board and several leading banks.

The country's first asset-backed Shariah-compliant corporate green sukuk was issued by Beximco Ltd in 2021 and raised Tk3,000 crore.

Banks and their subsidiaries invested Tk2,439 crore through private placements, while Tk558 crore was raised through public offerings.

Of the total proceeds, Tk2,155 crore was ultimately spent on the Teesta Solar Plant against an original allocation of Tk1,886.83 crore. Another Tk39 crore was spent on the Korotoa Solar Project against an allocation of Tk308.31 crore, while Tk806 crore was used for textile expansion.

The Korotoa plant, planned as a 30MW solar project, had been expected to begin operations by June 2026. However, a fire during the August 2024 unrest damaged its transformers and site office, delaying implementation further.

The central bank has purchased $45 million from a single bank at a rate of Tk122.75 per dollar to beef up foreign exchange reserves after paying the Asian Clearing Union (ACU) liabilities.

The foreign exchange reserves under the IMF’s BPM6 manual stood at $29.56 billion on Monday after buying new dollars, said Arief Hossain Khan, executive director and spokesperson for the Bangladesh Bank.

According to him, the gross amount is now $34.22 billion.

The Bangladesh Bank has purchased $125 million from the market this month and a total of $5.79 billion so far in the current fiscal year.

After clearing $1.51 billion in the ACU payment for March and April on May 7, the reserves decreased to $29.47 billion.

After buying the dollar at Tk 122.30 on Mar 2, Bangladesh Bank increased the price by 45 paisa on Apr 15.Stock Market Data

The ACU is a regional arrangement through which member countries settle payments for intra-regional transactions on a multilateral basis.

The member nations include Bangladesh, Bhutan, India, Iran, Maldives, Myanmar, Nepal, and Pakistan.

The clearing union settles its accounts every two months. Sri Lanka, once a member, withdrew from the union in October 2022 amidst its severe economic crisis.