Dhaka Stock Exchange and Swisscontact Bangladesh have signed a memorandum of understanding (MoU) to promote sustainable and inclusive economic development through Bangladesh’s capital market system, with a special focus on SMEs and sustainable financing instruments.

The agreement was signed on Saturday at the DSE premises by Managing Director Nuzhat Anwar and Swisscontact Bangladesh Country Director Helal Hossain in the presence of senior officials from both organisations.Geographic Reference

Under the partnership, the two organisations will jointly work to strengthen SME access to capital markets, improve corporate governance and compliance standards, and promote sustainable financing initiatives in Bangladesh.

The collaboration will focus on strategic sectors including ready-made garments (RMG), healthcare and agriculture, while also supporting initiatives related to environmental, social and governance (ESG) practices, sustainability reporting, financial inclusion, climate resilience, entrepreneurship development, trade facilitation and skill enhancement, says a press release.

Speaking at the signing ceremony, Ms Anwar said the initiative was implemented quickly through strong coordination and clear planning between the two institutions.

“This initiative has been materialised within a short period because of mutual coordination and a shared vision,” she said.Bangladesh trade analysis

She noted that small and medium enterprises require extensive support in capacity building, governance practices and regulatory compliance to enhance their participation in the capital market.

“SMEs are one of the key drivers of the economy, but many of them still lack the institutional preparedness required to access long-term financing from the capital market,” Ms Anwar said.

She added that the partnership would help create a stronger ecosystem for SMEs by offering training, advisory services and awareness programmes aimed at improving financial literacy and governance standards.

Mr Hossain of Swisscontact Bangladesh said SMEs remain a vital pillar of Bangladesh’s economy, although they continue to face challenges in financing, competitiveness and compliance.

“In the current economic context, creating opportunities for SMEs to raise alternative financing and equity-based capital is extremely important,” he said.Global economy forecast

He expressed optimism that the collaboration with DSE would help promising SMEs gain access to the capital market and reduce their dependence on traditional bank financing.

According to officials, the partnership will also facilitate joint capacity-building programmes, incubation support, workshops and advisory services to encourage wider participation in the capital market ecosystem.

The two organisations will additionally cooperate in developing sustainable financing products, including green bonds, sustainability-linked bonds, sukuk and blended-finance models to support environmentally and socially responsible investments.

Market analysts say the collaboration comes at a time when Bangladesh’s capital market is seeking to diversify financing sources and deepen participation from SMEs and sustainable enterprises.

They believe the initiative could help strengthen the country’s sustainable finance framework and support long-term economic resilience through broader access to capital market financing.

This year has so far brought no relief to listed multinational companies (MNCs), with earnings declining in the first quarter compared to the same period last year as inflation has not let up.

Persistently high inflation, squeezing consumer demand, and rising operating costs due to increases in the costs of raw materials and energy have complicated the business environment for foreign firms operating in Bangladesh.Business strategy consulting

This is the backdrop to subdued economic activity. Sluggishness in business has been deepening since the political changeover in August 2024, while inflationary pressure has continued to erode consumers' purchasing power and corporate profitability, according to market analysts.

During the January-March quarter, things turned worse amid geopolitical tensions surrounding the US-Israel conflict involving Iran, which disrupted global energy supply chains.

Inflation hovered around 9 per cent during the quarter, and analysts warned that price pressures may persist in the coming months due to continuing global uncertainties, supply disruptions and elevated import costs.

Of the 13 multinational firms listed on the stock market, 11 have so far disclosed first-quarter financial results for 2026. Only four of these companies posted profit growth, while four others reported profit declines ranging from 12 per cent to 34 per cent.

Two other companies remained in the red due to heavy debt burdens, and one slipped into fresh losses.Economic trend analysis

Aggregate profits of the 11 firms fell 6 per cent year-on-year to Tk 12.20 billion in January-March this year, while combined revenue declined 4 per cent year-on-year to Tk 103 billion, according to company disclosures.

Marico Bangladesh and Berger Paints follow the April-March accounting year.

Md Akramul Alam, head of research at Royal Capital, said that apart from macroeconomic challenges, tight monetary and fiscal measures adopted by the Bangladesh Bank following the political transition had dampened economic activities.

Private sector credit growth remained weak at around 6 per cent early this year, reflecting poor business confidence and tighter lending conditions.

Mir Ariful Islam, managing director and CEO of Sandhani Asset Management, said multinational companies failed to achieve meaningful revenue growth at a time when consumers had little disposable income.

"Consumers cut back on discretionary spending as essential goods became more expensive," he said, adding that many companies were unable to pass rising costs on to consumers due to weakened purchasing power.

As multinational firms operate across diverse sectors, the reasons behind profit erosion vary from company to company.Politics

Higher finance costs heavily affected firms carrying large debt burdens, while reduced government spending under the Annual Development Programme adversely affected cement manufacturers.

Singer Bangladesh, for example, saw its losses widen 66 per cent year-on-year to Tk 578 million in the January-March quarter due mainly to a 41 per cent surge in finance costs linked to heavy borrowings.

The company attributed the weak performance to sluggish demand in the consumer electronics market, where domestic sales were hurt by inflation, geopolitical tensions, the national election and an extended Eid holiday.

Singer is also facing intensifying competition from local manufacturers such as Walton Group and Vision Electronics, alongside imported brands.

BAT Bangladesh posted a 34 per cent decline in profit to Tk 2.10 billion as lower sales and rising finance costs hit earnings. Net revenue plunged 23 per cent during the quarter through March.

The cigarette maker's domestic sales dropped 21 per cent, while leaf exports fell 23 per cent in the first quarter this year compared to the same quarter last year.Financial literacy course

Meanwhile, reduced government spending under the Annual Development Programme adversely affected cement manufacturers, according to Mr Alam. The overall construction sector remained under pressure due to high inflation and weaker infrastructure activity during the quarter.

Heidelberg Materials Bangladesh slipped into a loss of Tk 50 million in the March quarter, compared with a profit of Tk 197 million a year earlier, after sales dropped 16 per cent.

The company said higher prices of key raw materials squeezed margins, while intense competition prevented it from fully passing additional costs on to customers.

Another cement maker, LafargeHolcim Bangladesh, reported a 19 per cent year-on-year decline in profit to Tk 1.12 billion in the quarter as sales fell 6 per cent amid elevated inflation, tighter private sector credit and slower public infrastructure spending.

Rising energy costs linked to the Middle East crisis and persistent inflationary pressures reduced profitability, although operational efficiency and strict cost discipline helped cement makers preserve margins.Economic trend analysis

"Despite a challenging landscape defined by persistent inflation and higher energy costs, we remain committed to resilience through innovation and operational excellence," said Iqbal Chowdhury, chief executive officer of LafargeHolcim.

Fast-moving consumer goods companies also struggled with low sales as households prioritised essential food spending over discretionary purchases.

Unilever Consumer Care reported a 12 per cent year-on-year decline in profit, while Reckitt Benckiser Bangladesh posted a 28 per cent drop in earnings during the quarter compared to the corresponding period last year.

Masud Khan, chairman of Unilever Consumer Care, attributed the weaker business performance to macroeconomic and seasonal factors.

"A depressed economy, the national election and Ramadan all contributed to pressure on sales and margins," he said.

However, Bangladesh's two leading telecom operators managed to post profit growth through cost efficiency and stronger data revenue.Business strategy consulting

Grameenphone recorded revenue of Tk 37.6 billion in the January-March quarter, down 2 per cent year-on-year. Despite lower revenue, net profit rose 4.4 per cent due to improved cost management and lower finance costs.

Yasir Azman, chief executive officer of Grameenphone, said the company maintained stable financial and operational performance despite external challenges.

Robi Axiata posted an 86 per cent surge in profits, supported by strong revenue growth and disciplined cost management.

Ziad Shatara, managing director and CEO of Robi, said higher revenue was driven by robust growth in data usage and increasing numbers of 4G users.

Linde Bangladesh also reported a 36 per cent growth in profit, driven by higher sales and an 18 per cent decline in operating expenses following the divestment of its subsidiary last year.

Similarly, Bata Shoe posted marginal profit growth, supported mainly by Eid-centric seasonal sales, although overall retail demand remained weak.

Mr Ariful Islam of Sandhani Asset Management warned that corporate profits could remain under pressure over the next two quarters due to the ongoing energy crisis stemming from Middle East tensions.Financial literacy course

"Macroeconomic improvement and restoration of consumer confidence are crucial for business recovery in the coming months," said Mr Alam of Royal Capital.

Bangladesh is preparing another round of tariff rationalisation in the next fiscal year, cutting or easing protective duties on more than 200 imported goods, as part of a wider effort to modernise the trade system ahead of graduation from least developed country (LDC) status.

Under this plan, customs duties, regulatory duties and supplementary duties of the items are likely to be rationalised, according to finance ministry officials.

Last year, the government proposed cuts on around 350 tariff lines in the first phase of a broader reform programme. The upcoming budget for fiscal year 2026-27 is expected to continue that process.

Officials said the changes are designed to bring the trade system closer to global standards and prepare for the post-LDC era starting from November this year.

“We are continuing the process of tariff rationalisation to make the structure more competitive, transparent and compliant with international trade obligations,” said a senior official involved in the process.

Preferring anonymity, he also said that despite the planned reductions, sensitive sectors would continue to receive a degree of protection to allow local industries time to adjust to increased competition from imports.

According to finance ministry officials, Bangladesh will face more pressure to reduce trade barriers after the LDC graduation, as the country will lose several preferential trade benefits under the current international arrangements.

They also said the reforms are being designed in consideration of Bangladesh’s commitments under the World Trade Organization and ongoing talks on future trade agreements.

Bangladesh currently has 7,611 tariff lines. In other words, the country has 7,611 different product categories for which import taxes are set separately.

Its binding commitments at the World Trade Organization (WTO) cover 955 tariff lines, including 763 agricultural and 192 non-agricultural products. Tariffs on 60 of these lines were higher than the bound rates set when Bangladesh joined the WTO in 1995.

The National Board of Revenue (NBR) began tariff rationalisation in phases in FY23, following recommendations from a committee formed in 2021 to prepare for LDC graduation challenges.

In the past two years, tariffs on 60 items have been brought within bound rates based on those recommendations.

A related study also called for a review of supplementary and regulatory duties, noting that Bangladesh would need to compete without relying on import protection after graduation.

The study found regulatory duties on 3,565 tariff lines, about 47 percent of the total, ranging from 3 to 35 percent. Nearly 95 percent of revenue from regulatory duties comes from just 250 tariff lines.

Based on the recommendations, the NBR scrapped regulatory duties on 282 items between FY23 and FY25 and removed minimum import prices on 50 items.

Speaking on the implications of the country’s scheduled LDC graduation this year, trade expert Mostafa Abid Khan said that oversight was limited while Bangladesh remained an LDC, but that would change.

“But once we graduate, we will come under surveillance.”

He said the transition would not automatically force Bangladesh to change its policies, but verification from trading partners would increase.

He pointed out two immediate risks. These are exceeding agreed tariff limits on a small number of products and maintaining minimum import prices.

“In some cases, not many, only for a limited number of products, our bound tariff rates have already been exceeded,” said Khan.

He said, “Another issue is the minimum import value or minimum import price system. That cannot be maintained. It will not be allowed.”

He said Bangladesh must gradually lower protection and prepare industries for competition under future trade agreements.

M Masrur Reaz, chairman and CEO of Policy Exchange Bangladesh, said Bangladesh’s post-LDC challenge will centre on a sharp loss of trade competitiveness with the ending of preferential market access.

He said the impact of higher tariffs will largely depend on productivity and efficiency in the economy.

“Competitiveness comes from productivity, lower costs of doing business, and logistics efficiency, including speed to market,” he noted, adding that Bangladesh is currently weak in both productivity and competitiveness.

He also warned that the pharmaceutical sector will come under pressure after the loss of TRIPS-related flexibilities, particularly due to limited API production, weak backward linkages and patent constraints, which could push up medicine costs.

Reaz stressed that long-term reforms are essential, especially investment in skills, technology adoption, logistics and trade facilitation.

“Ideally, these reforms should have started five years ago, but they did not. We are still ignoring them. But this is a golden opportunity, and I would say almost the last opportunity.”

He said reforms should begin gradually from the next budget cycle, rather than being delayed or introduced abruptly after graduation.

Abdur Razzaque, chairman of Research and Policy Integration for Development (RAPID), said that the timing of graduation, whether soon or later, does not change the need for preparation.

“Whether LDC graduation happens in November or three years later, the government should identify the programmes needed and allocate resources accordingly,” he said.

Like Reaz, Razzaque highlighted the need for infrastructure and logistics reforms.

“Important infrastructure will be needed, and we must clearly define what is required. Implementation of the logistics policy will be essential, with clear responsibilities and timelines,” he added.

Calling for a structured approach, he said the transition should be guided by clear milestones.

“There should be a roadmap for what we want to achieve in the next one year, and in the next two years. A priority list has been prepared, and if implemented effectively, it could be a positive step,” he added.

Royal Footwear Limited, a footwear manufacturing and export-oriented company, is planning to raise Tk12 crore from the capital market through the SME platform to support its business expansion and meet rising export demand.

The company has recently re-submitted its application to the Bangladesh Securities and Exchange Commission (BSEC) to issue 1.2 crore shares under the fixed-price method through an Initial Qualified Investor Offer (IQIO).

Earlier, in 2024, Royal Footwear had applied for the same fundraising plan. However, the company later withdrew its Initial Qualified Investor Offer (QIO) proposal, citing political uncertainty, the ongoing economic slowdown, and an overall unstable business environment that was not favourable for expansion at that time.

As the business climate has improved now, the company has decided to revive its fundraising plan and move forward with the application again to support its expansion and take advantage of growing export opportunities.

As a synthetic shoe manufacturer, Royal Footwear intends to utilise the funds for business expansion, working capital, and loan repayment.

Specifically, the allocation includes, Tk2 crore for purchasing raw materials and packing materials, Tk1.67 crore for the purchase of spare parts, Tk8 crore for loan repayment, and Tk0.33 crore for IQIO expenses.

Royal Footwear Limited shares some common directors with Al-Madina Pharmaceuticals, a publicly listed company on the SME platform. In February 2023, Al-Madina Pharmaceuticals raised Tk5 crore through the SME platform to support business expansion. In FY25, the company declared a 12% cash dividend for its shareholders.

According to Royal Footwear, the company—incorporated in 2014—plans to enter the capital market to expand its operations and strengthen compliance standards. The management says that some of its international buyers have encouraged listing in the capital market, believing it would improve governance, compliance practices, and alignment with global standards.

The company mainly exports to European and Asian markets, where demand for its products continues to grow steadily. In addition, the management views capital market financing as a more sustainable long-term growth option compared to relying heavily on bank borrowing.

In FY25, Royal Footwear Limited reported revenue of Tk52.91 crore, up from Tk52.34 crore in the previous fiscal year. Its profit after tax stood at Tk2.78 crore, which was Tk3.19 crore a year ago.

Earnings per share (EPS) reached Tk0.82, which was Tk0.94 a year ago. Its net asset value (NAV) per share, after revaluation, was Tk27.54.

Prime Bank Investment Limited is acting as the issue manager for the IQIO.

According to the company prospectus, the footwear industry in Bangladesh is growing rapidly due to increasing domestic and international demand, competitive production costs and favourable government policies.

Opportunities lie in export expansion, modern technologies, and sustainable practices. However, challenges such as quality control, compliance with international standards, and workforce development persist.

Major competitors of Royal Footwear include Apex Footwear, Bata Shoe Company (Bangladesh), Bay Emporium, Lotto BD, Jenny's Shoes, Craftsman Footwear and Accessories, and MK Footwear PLC.

To remain competitive, companies are adopting advanced technologies such as CAD/CAM systems and automated machinery to enhance efficiency and quality. Many firms are also obtaining global certifications, such as the Leather Working Group (LWG) certification, to boost credibility.

Despite obstacles like limited access to finance, infrastructure gaps, and labour shortages, the industry is making strides in environmental sustainability.

Investments in eco-friendly production methods and effluent treatment plants are helping to address environmental concerns and align with international standards, further strengthening the industry's growth potential.

The government has approved a Nationwide Telecommunication Transmission Network (NTTN) licence for Bangla Phone, marking the first major telecom infrastructure licence approval since the formation of the new government. The company’s earlier bid was rejected by the interim government.

This makes Bangla Phone the seventh company in the country to receive this licence.

According to official documents, the approval was granted on May 13 after the Bangladesh Telecommunication Regulatory Commission (BTRC) sought government clearance on May 10.

Under existing guidelines, the licence allows operators to build, maintain and manage nationwide fibre-optic transmission networks and share infrastructure with telecom operators and internet service providers.

BTRC requires prior approval from the Ministry of Posts, Telecommunications and Information Technology before issuing such licences. In May last year, the regulator sought approval, but the interim government rejected the proposal.

After the new government took office, BTRC again sought approval from the ministry.

It remains unclear under which guideline the licence was approved, as there is no separate NTTN category in the telecom licensing policy.

The policy, approved by the BTRC and later endorsed by the interim government, is now under review by the current administration.

Under the licensing policy, NTTN falls under the category of National Infrastructure and Connectivity Service Provider (NICSP).

Major General (retd) Md Emdad Ul Bari, chairman of the BTRC, said the licence was issued under the legacy framework.

“When the licensing regime changes, the licence will be migrated accordingly,” he said.

Explaining why the BTRC recommended the licence for Bangla Phone, Bari said an inspection team found that the company, which has been operating in Bangladesh since 2004, already has a fibre-optic transmission network spanning more than 13,000 kilometres.

“As the country needs more transmission network infrastructure and the operator already has an extensive fibre network, the regulator recommended issuing the licence following its application and investigation,” a BTRC official said.

Bangla Phone first applied for the licence in June 2011, but the ministry rejected it in July 2014. After the company filed a writ petition, the High Court directed a review, although the ministry upheld its decision in June 2016.

The company reapplied in September 2024, prompting the BTRC to form a committee in January 2025 to assess the request.

The committee cited the need to expand affordable transmission networks nationwide, particularly in remote areas.

Considering the limitations of the country’s existing transmission network and Bangla Phone’s previously permitted infrastructure, the committee recommended issuing a new NTTN licence, according to the documents.

As per BTRC documents, the country’s other six NTTN operators currently manage a combined 148,000 kilometres of optical fibre network.

The country’s first NTTN licence was awarded to Fibre@Home in 2008, and the company now operates around 50,000 kilometres of network infrastructure.

Summit Communications operates approximately 40,000 kilometres of network, while Bahon Limited has 7,817 kilometres. Bangladesh Telecommunications Company Limited manages around 40,000 kilometres, and Power Grid Company of Bangladesh operates roughly 8,500 kilometres. Bangladesh Railway, meanwhile, has about 3,800 kilometres of optical fibre infrastructure.

In addition, the government has laid nearly 35,000 kilometres of optical fibre under projects such as Info-Sarker 3 and Connected Bangladesh, while mobile operators collectively operate around 8,200 kilometres of fibre infrastructure

Last year, Amjad H Khan, chairman of Bangla Phone, told The Daily Star that the company’s four licences, including an International Internet Gateway (IIG) licence, were cancelled during the previous government’s tenure.

He said the country still lacks adequate telecom infrastructure, creating opportunities for more players to contribute.

India is scrambling to salvage a sinking rupee as surging oil prices linked to the Middle East conflict threaten to disrupt the world’s fastest-growing major economy.

The currency has dropped more than five percent since the crisis erupted in February, extending losses from 2025 and making it Asia’s worst-performing major currency in 2026 so far.

It hit a record low of over 96 to the dollar on Friday, prompting officials to signal that halting further depreciation is a key macroeconomic priority.

India’s central bank has already poured billions of dollars to stabilise the currency, curbed speculative trading and offered a special credit line to oil importers to ease dollar demand.

Prime Minister Narendra Modi has also urged voluntary austerity measures to rein in dollar-guzzling imports, including cutting down on gold buying and foreign travel for a year.

But the pressure persists.

“The whole system has been disturbed,” said Dilip Parmar of stockbroker HDFC Securities, citing heavy foreign investor outflows, weaker growth prospects and elevated crude prices.

“That is the basic problem which you’re seeing replicated in the fall of the rupee,” he said, noting that it was ultimately “a function of demand and supply” with dollar demand being higher.

The rupee’s slide comes as India faces a widening current account deficit driven by costly energy imports.

The gap is likely to be over two percent of GDP this fiscal year, more than double last year’s level and potentially the widest since 2012–13, according to Bank of America Securities estimates.

WIDENING DEFICIT

At the same time, foreign investors have dumped more than $20 billion in Indian stocks since the start of the Mideast conflict, the fastest pace on record, while dollar inflows have slowed, opening the possibility of a balance-of-payments gap as large as $67–88 billion.

The 2027 fiscal year “will be our third year of a balance-of-payment deficit, which is certainly unusual,” economist Dhiraj Nim of ANZ Research told AFP.

This strain has weighed on the rupee, prompting the central bank to defend it by burning through foreign exchange reserves -- now at around $697 billion, down from over $720 billion before the Middle East war.

While still covering about 11 months of imports, the decline underscores the strain.

A weaker rupee is rippling through the domestic economy.

Manufacturers and food processors, many dependent on imported raw materials priced in dollars, are seeing costs surge.

Smaller firms often lack the ability to hedge currency risks.

In Kerala’s cashew industry, which mostly imports raw nuts from Africa, the impact has been acute.

“Imports have become far more expensive for the local market,” said Rajmohan Pillai, who runs a cashew firm, adding buyers can now afford only about 90 percent of last year’s volumes.

He estimates more than 80 percent of processing units have shut in recent years, with rupee volatility a contributing factor.

‘LAST STRAW’

India’s currency decline has also hit students looking to study abroad.

Education consultants say studying in the United States now costs more than one million rupees ($10,450) extra compared with a year ago.

“This is the last straw,” said Meghna Sen, a 17-year-old aspiring psychology student.

“Now we have to track (the rupee) movement to check how much we need for our grocery budgets.”

The depreciation has punctured India’s ambition to become the world’s third-largest economy.

Modi, who once criticised his predecessors over currency weakness, has seen India’s global economic ranking dented because GDP comparisons are measured in dollars.

The country has slipped behind the United Kingdom to the sixth place according to IMF data, largely due to the rupee’s fall.

Nomura analysts warn more drastic measures may be on the anvil.

These include possible fuel price hikes, tighter controls on overseas remittances and steps to attract dollar deposits from non-resident Indians -- a playbook used in past crises.

Still, economists caution that intervention can only smooth volatility, not reverse underlying pressures.

“Fundamental factors” remain to be resolved, Nim said, adding “I would not even rule out an interest rate hike which squarely targets future inflation”.

The Reserve Bank of India knows what its options are, he said.

“All that remains is to see what it decides to choose.”

Dhaka division received nearly half of Bangladesh's total remittance inflows in March 2026, ahead of Chattogram and Sylhet divisions, according to a Bangladesh Bank (BB) report.

The division accounted for $1.85 billion, or 49.55 percent of the $3.75 billion that flowed in during the month — up $456.58 million, or 13.85 percent, from March 2025.

Chattogram division ranked second with $1.16 billion (31.03 percent), followed by Sylhet at $301.10 million (8.02 percent), according to BB’s Monthly Report on Workers' Remittance Inflows.

BB noted that inflows typically rise during religious festivals, at the end of the fiscal year in June, and at the close of the calendar year in December.

At the district level, Dhaka topped the list with $1.35 billion, ahead of Chattogram ($413.04 million), Cumilla ($243.40 million), and Sylhet ($161.13 million).

Bangladesh’s ambition to become a $1 trillion economy by 2034 is bold, inspiring and politically powerful. It reflects confidence in the country’s development journey and its desire to emerge as a major economic force despite evolving challenges. For a nation transformed through decades of resilience, the goal naturally captures the public imagination. Yet while the slogan is compelling, the economics behind it are more complex.

The economy is currently valued at about $470 billion. To reach $1 trillion within a decade, Bangladesh needs close to 10 percent annual GDP growth in dollar terms. That is where the difficulty lies. GDP measured in US dollars depends not only on domestic production growth, but also on inflation and exchange rate stability.

The distinction matters. If Bangladesh achieves 5 percent real growth and 7 percent inflation, the economy could expand by roughly 12 percent in nominal taka terms. But if the taka loses 3 percent of its value against the dollar each year, dollar-based GDP growth falls to about 9 percent, below what is required. In simple terms, Bangladesh may grow strongly at home yet still struggle to hit the trillion-dollar target if currency depreciation continues.

This makes the exchange rate policy central to the debate.

The Bangladesh Bank (BB) is already navigating a delicate balancing act. It must rebuild foreign exchange reserves after they fell sharply from $48 billion in 2022, while preserving export competitiveness. A weaker taka helps exporters, particularly the ready-made garments sector, remain competitive. But the same weaker currency reduces the economy’s size in dollar terms.

This creates a policy trilemma. Bangladesh cannot fully maximise three objectives at once: a strong currency, export competitiveness and reserve accumulation. A stronger taka may lift GDP in dollar calculations, but would hurt exports. A weaker taka supports exports and reserve rebuilding but delays the trillion-dollar milestone. At any given time, policymakers can effectively prioritise only two.

Global conditions further complicate matters. Rising geopolitical tensions and volatile oil prices increase import costs, strain reserves and fuel inflation. As an energy-importing economy, Bangladesh remains exposed to external shocks that can weaken the taka and disrupt growth projections.

None of this makes the trillion-dollar goal unrealistic. It does mean the path must rest on structural reform rather than political arithmetic.

The real route to a trillion-dollar economy lies in productivity growth. Bangladesh must diversify beyond garments into sectors such as pharmaceuticals, IT services, electronics, light engineering and higher-value services. Greater industrial depth, stronger foreign direct investment and technological upgrading are essential. Without this transformation, growth may continue, but not at the scale or quality required.

Human capital is equally important. Skills development, better education and higher labour productivity must become national priorities. A larger economy is not built by numbers alone; it is built by a more capable workforce.

Macroeconomic discipline will also matter. Inflation control, stable fiscal management and a predictable exchange rate policy are crucial. Gradual and manageable depreciation may prove wiser than abrupt adjustments or artificial currency support.

Ultimately, the trillion-dollar question is not simply whether Bangladesh can reach a number by 2034. It is whether the country can build an economy strong enough to make that number inevitable.

If Bangladesh sustains solid growth, preserves stability and implements meaningful reforms, it could approach $900 billion by 2034 and cross $1 trillion soon after. Reaching the milestone in 2035 instead of 2034 would not be a failure; it would be economic realism.

The true success of Bangladesh’s strategy will not be measured by a political deadline alone, but by whether it builds productive strength, resilience and institutional capacity, alongside a governance model capable of sustaining prosperity long after the trillion-dollar headline is achieved.

The writer is an economic analyst and chairman at Financial Excellence Limited

G7 finance ministers gathering in Paris on Monday will try to find common ground on tackling global economic tensions and coordinating critical raw material supplies, even as geopolitical differences threaten to test the group's cohesion.

The two-day meeting follows a summit between US President Donald Trump and Chinese President Xi Jinping in Beijing that yielded few concrete economic breakthroughs, as tensions over Taiwan and trade simmered beneath a display of diplomatic cordiality.

At the core of the Paris agenda will be what French Finance Minister Roland Lescure described as deep-seated global economic imbalances that are fuelling trade friction and risk a turbulent unwinding in financial markets.

"The way the global economy has been developing for the past 10 years or so is clearly unsustainable," he said, pointing to a pattern in which China under-consumes, the United States over-consumes and Europe under-invests.

Update from US-China summit

Lescure, who will host the talks, said the G7 offered an opportunity for frank dialogue among allies at a time of widening disagreements with Washington.

"These discussions are not easy. I'm not going to tell you that we agree on everything, including, of course, first and foremost with our American friends," he told journalists ahead of the meeting.

Finance ministers will be looking for an update on US-China relations following the Trump-Xi summit and the latest US efforts to re-open the Strait of Hormuz, as the Trump administration allowed a sanctions waiver on Russian seaborne oil to lapse on Saturday.

Merely agreeing each side bears some responsibility for the trade and capital flow imbalances would be a success, French officials involved in preparations said, though the US side is likely to be reluctant.

Fallout from Mideast conflict

"I'd be shocked if they're going to sign on to the idea this is the US's fault in some way," said Philip Luck, director of the economics programme at Washington's Center for Strategic and International Studies.

Ministers are also due to discuss the economic fallout from the Mideast conflict and volatility on global bond markets, which are of particular concern to Japan.

Britain's finance ministry said Rachel Reeves would "press for coordinated action to limit inflation and supply chain pressures, and restore freedom of navigation through the Strait of Hormuz" at the meeting, and also reassert the government's desire to reduce trade barriers between Britain and the European Union.

Divisions within the G7 complicate efforts to project unity as ministers prepare for a 15-17 June leaders summit in the spa town of Evian.

Critical mineral dependence

A second priority will be critical minerals and rare earths, where G7 governments are trying to coordinate efforts to reduce reliance on China, which dominates supply chains vital for technologies such as electric vehicles, renewable energy and defence systems.

Lescure said the G7 would push for stronger coordination to monitor markets, anticipate disruptions and develop alternative supplies, including through joint projects spanning allied economies. The aim is to ensure that "no country can ever again have a monopoly" over such materials, he said.

G7 countries are trying to agree on a common toolbox of measures to stabilise markets and encourage domestic investment, possibly through price floors for producers, pooled purchases and also tariffs.

Nonetheless, the initiative is a long-term project that would yield little at the finance ministers' meeting, said Luck, who worked on the issue in the Biden administration.

"We are in the very early innings of figuring this out," he said. "I don't think there's agreement on a strategy even within the US government, let alone being able to articulate that in a convincing way to our partners in order to get them to sign on."

Sri Lanka slapped a 50 percent surcharge on customs duties on vehicles Saturday in a bid to discourage imports and ease currency pressure stemming from the Middle East conflict.

The increase in taxes comes as the local rupee has sharply depreciated since the start of US and Israeli attacks on Iran, which prompted retaliation by Tehran.

“Given the current pressure on foreign exchange, we want people to delay their imports (of vehicles) by three months,” Junior Finance Minister Anil Jayantha Fernando told reporters in Colombo.

Vehicle were charged a customs duty of 30 percent but several other taxes make the effective import tax on a car more than 100 percent.

Sri Lanka has increased energy prices by more than a third since the start of the Middle East war and has rationed diesel and petrol in a bid to reduce the import bill.

Official figures show that Sri Lanka’s rupee has depreciated by 4.5 percent against the dollar so far this year.

Central Bank Governor Nandalal Weerasinghe told a parliamentary panel last week that the rupee would continue to slide unless global oil prices fell or Sri Lanka slashed energy imports.

Sri Lanka is emerging from its worst economic meltdown in 2022, when it ran out of foreign exchange to finance even the most essential imports such as food, fuel and medicines.

Since then, the country has been under a $2.9 billion IMF bailout programme.

Finance Minister Amir Khosru Mahmud Chowdhury has said Bangladesh's economy may take around two years to recover from recent financial pressures, citing an additional Tk40,000 crore spent on the oil and gas sector due to the Middle East war and nearly Tk50,000 crore in outstanding dues from previous governments in the power and energy sectors.

Speaking as the chief guest at a ceremony for the foundation stone laying of a new building at Chattogram Maa-O-Shishu Medical College Hospital this morning (16 May), he said healthcare is a fundamental right of every citizen and the government is now focusing on preventive and primary healthcare. 

Khosru, also the planning minister, added that initiatives are being taken to coordinate with private hospitals so that poor people can access better treatment.

He said the government is considering a plan to send poor patients to private hospitals and bear their treatment costs due to the limitations of public hospitals. 

He mentioned that the health budget will be increased, but stressed that proper use of allocations must be ensured.

The minister alleged that although substantial allocations were made to the health sector in the past, a large portion was wasted through corruption. Ordinary people did not receive the expected healthcare services, he added.

Despite limitations, he said, the government will continue supporting educational and healthcare institutions that are performing well.

The minister also expressed concern over the design of the new medical college building, saying parking space for only 72 vehicles will be insufficient for such a large institution and could create severe traffic congestion in the future. 

He suggested keeping parking facilities for at least 200 to 250 vehicles, including additional basements if necessary.

He also stressed modernising medical education through digital libraries, multimedia classrooms, sports facilities and quality canteen services.

Highlighting a shortage of medical technologists in the country, he said costly medical equipment remains unused due to a lack of skilled personnel and called for separate institutes for medical technologists.

Iran will reopen its stock market on Tuesday after a suspension ‌during the conflict with the US and Israel, ​Iran's IRNA news agency ​cited a senior official ⁠as saying on Saturday.

"The ​suspension of stock market ​activities from the start of the war was aimed at ​protecting shareholders' assets, ​preventing panic-driven trading and allowing for ‌more ⁠transparent pricing conditions," said Hamid Yari, deputy supervisor at the Securities and ​Exchange ​Organisation.

"Now, ⁠with the reopening of the stock ​market, we will ​see ⁠the full resumption of all capital market sectors," ⁠he ​added.

Sustainable financing in Bangladesh reached Tk 8,375 crore during the October-December quarter of 2025, accounting for 35.87 percent of total disbursed loans, reflecting growing momentum in the country’s sustainable finance sector, experts said.

They, however, stressed the need for blended and sustainable financing to further strengthen economic growth, tackle climate-related risks and expand social welfare initiatives.

The observations came at the “Sustainable Finance Summit 2026”, organised by LightCastle Partners with support from the Embassy of Switzerland in Bangladesh, the United Nations Capital Development Fund (UNCDF), Netherlands-based impact investment firm Truvalu Bangladesh, and Startup Bangladesh Ltd, held at a hotel in Dhaka yesterday.

Reto Renggli, Swiss ambassador to Bangladesh, inaugurated the event and said sustainable finance was no longer a niche agenda but an essential element for building an inclusive and future-ready economy.

He also praised Bangladesh’s progress in climate resilience and financial inclusion and expressed hope that the summit would help unlock investment opportunities and partnerships.

According to data presented at the event, the global sustainable finance market reached $919 billion in 2025 and is projected to expand to $1.1 trillion in 2026.

The daylong summit aimed to mobilise blended finance and expand the sustainable finance market in Bangladesh.

Masud Rahman, chief technology adviser to the Aspire to Innovate (a2i) project under the ICT ministry, attended the programme as guest of honour.

“Bangladesh stands at a critical juncture where innovation, technology and sustainable financing must advance together,” he said.

More than 200 policymakers, financiers, entrepreneurs and ecosystem stakeholders participated in the summit.

Bijon Islam, chief executive officer of LightCastle Partners, delivered a presentation, titled “From Pledges to Projects: Unlocking the Next Trillion in Sustainable Finance”.

The event also featured three panel discussions involving representatives from financial institutions, development organisations and the startup ecosystem.

Zahedul Amin, managing director of LightCastle Partners, Diepak Elmer, deputy head of mission/head of cooperation at the Embassy of Switzerland in Bangladesh; Nuzhat Anwar, managing director of Dhaka Stock Exchange; Nurul Hai, managing director of Startup Bangladesh Limited; Kerry Breen, senior director at Brummer & Partners; Nazat Chowdhury, managing director of South Asia Tech; Nabila Nowrin, managing director of Infusion Partners; among others, also spoke at the event.

The government has raised Tk 42,400 crore through sukuk, a shariah-compliant investment instrument akin to bonds, since its launch in December 2020.

The latest auction for raising Tk 5,900 crore through sukuk received bids worth Tk 72,598 crore from banks, finance companies, and individuals.

Issued to finance the construction of bridges to connect rural roads, the latest initiative’s subscription amount was 12 times the face value of the bond, reflecting strong investor interest.

The Bangladesh Bank (BB) auctions the sukuk on behalf of the government.

Issued to finance the construction of bridges to connect rural roads, the latest initiative’s subscription amount was 12 times the face value of the bond, reflecting strong investor interest

Of the Tk 42,400 crore, some Tk 32,400 crore was issued through public auction, while Tk 10,000 crore was issued through private placement to Sammilito Islami Bank, which was launched in December last year.

“Such a high response ultimately shows that there is demand for shariah-based investment options in the market,” said Istequemal Hussain, director at the Debt Management Department of BB.

The two main reasons behind the strong interest in this sukuk are that it is government-backed and that many people lack confidence in shariah-based banks, he said.

On Wednesday, the BB allotted the seven-year tenure sukuk bond in favour of investors -- Islamic banks, finance companies, Islamic windows of conventional banks, individual investors and various provident funds -- at a fixed proportionate rate.

Hussain said they have plans to raise Tk 10,000 crore more by June in fiscal year 2025-26, through both short-term and long-term bonds.

Of the sukuk bonds issued so far, none has matured. The BB official said their maturity period had been extended earlier.

The government has decided to begin phased implementation of a new pay structure for public sector employees from this July, according to officials familiar with the matter.

The decision was taken by Prime Minister Tarique Rahman during a high-level meeting with senior officials of the Finance Ministry on the upcoming national budget held last Wednesday, sources told TBS.

A senior finance ministry official, speaking on condition of anonymity, said today that the prime minister has approved the rollout of the new pay scale from the first day of the 2026-27 fiscal year. "There is no uncertainty. We will start receiving salaries under the new structure from July."

He added that the implementation, however, will be carried out in phases, although the exact proportion of the revised salary to be disbursed from July has not yet been finalised.

Officials said the full pay structure may be implemented over three fiscal years. Under the proposed plan, 50% of the increased basic salary could be introduced in the 2026-27 fiscal year, starting 1 July, with the remaining 50% in 2027-28. Allowances may be incorporated in 2028-29.

Also read: Govt employees to get paid under new pay scale from early next year

The phased approach is expected to ease pressure from inflation while also making fiscal management more manageable for the government.

Finance ministry officials said over Tk30,000 crore is being allocated in the next fiscal budget to cover the initial 50% increase in basic pay. In the current fiscal year, around Tk85,000 crore has been allocated for salaries and allowances of nearly 1.5 million government employees.

Accordingly, the draft budget speech prepared by Finance Minister Amir Khosru Mahmud Chowdhury reportedly includes provisions for a gradual implementation of the new pay structure. Officials said that when the finance ministry presented the implementation plan and funding strategy before the prime minister, she approved it and directed that it be made effective from July.

The interim government led by Prof Muhammad Yunus formed a National Pay Commission last year, which submitted its report to the government on 22 January. The commission recommended raising salaries and benefits of government employees by 100% to 147%, depending on grade.

Under the proposed structure, the minimum basic pay for 20th-grade employees would increase from Tk8,250 to Tk20,000, while the highest grade would rise from Tk78,000 to Tk160,000. The proposal also includes higher allowances and improved pension benefits.

The commission estimated that implementing the new pay structure for active employees would require about Tk106,000 crore, with an additional Tk25,000 crore needed for pensioners.

Given the government's revenue situation and broader macroeconomic constraints, the commission recommended a phased rollout of the revised pay structure.

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

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

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

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

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

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

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

China and the United States agreed to continue implementing "all" agreements previously reached and to establish councils for trade and investment, Beijing's top diplomat said in a statement on Friday.

It comes after a two-day summit between Chinese President Xi Jinping and his US counterpart Donald Trump discussed a spate of thorny issues dividing the world's two largest economies from trade to the Middle East, as they met in Beijing where the US leader was feted with a temple tour and tea.
Trump touted "fantastic trade deals", announcing in interviews Chinese purchases of American soybeans and jets, but there have been no official announcements or details from either side.

After Trump's departure from China, Xi accepted an invitation from his US counterpart on Friday to visit the United States in autumn.

"The delegations of the two countries reached overall positive results, including continuing to implement all consensus reached in previous consultations (and) agreeing to establish a trade council and an investment council," Wang Yi said, according to a statement from the Chinese foreign ministry.

US Treasury Secretary Scott Bessent said in an interview with CNBC on Thursday the countries were in talks to establish a bilateral "board of trade" and "board of investment".

The two countries also agreed to "address each other's concerns regarding market access for agricultural products and promote expanding two-way trade within a framework of reciprocal tariff reductions", Wang said.

China and the US are in the middle of a year-long trade truce reached in October, where both sides agreed to slash tariffs on each other's goods that had exceeded 100 percent.

The country's premier bourse witnessed a fluctuating trading week, as the benchmark index managed to edge higher and snap a persistent losing streak, supported by mid-week bargain hunting.

Although the broad index posted marginal gains, the market remained defined by a tug-of-war between cautious investor sentiment and opportunistic buying.

The benchmark DSEX of the Dhaka Stock Exchange (DSE) rose by 11 points to settle at 5,245. However, the blue-chip DS30 index moved in the opposite direction, shedding 19 points to close the week at 1,981, reflecting continued pressure on large-cap stocks.

Market participation showed signs of resilience, with average daily turnover increasing 6% to Tk879 crore.

According to a weekly market review by EBL Securities, trading lacked a clear directional catalyst, leaving investors to navigate persistent uncertainty.

The week began on a weak note, extending the previous losing streak across the first two sessions amid broad-based selling pressure. Investors largely stayed on the sidelines, closely tracking domestic policy signals and geopolitical developments, including ceasefire negotiations in the Middle East.

Amid the cautious environment, trading activity was largely concentrated in small-cap and momentum-driven stocks. Mutual funds also saw notable interest following recent sector-specific regulatory directives, the report noted.

In contrast, blue-chip counters remained under pressure for most of the week as institutional selling continued. However, sentiment improved from the third session onward, as bargain hunters accumulated oversold large-cap stocks after five consecutive sessions of decline. The recovery was further supported by quarterly earnings disclosures and expectations of potential policy changes, EBL Securities added.

Sector-wise, general insurance dominated turnover, accounting for 13.7%, followed by engineering and textile sectors.

Weekly returns remained mixed. The jute sector led gainers with a 6% rise, followed by information technology (4.5%) and financial institutions (4%). On the other hand, services recorded the steepest decline at 2%, while cement and telecommunications also ended lower.

Among individual stocks, RD Food emerged as the week's top gainer, surging 35.6%. VFS Thread, Apex Tannery, and Meghna Pet also posted strong gains.

Conversely, non-bank financial institutions dominated the losers' list, with International Leasing, Peoples Leasing, and FAS Finance each falling 18.2%.

In terms of liquidity, Monno Ceramic, Dominage Steel, and NCC Bank were among the most actively traded stocks.

By week's end, market breadth remained positive, with 205 issues advancing against 145 declines, though analysts said overall sentiment remained cautiously positioned

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

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

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

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

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

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

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

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

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

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

High inflation is cutting deep into consumer spending, leaving Bangladesh's service-sector businesses struggling with falling sales and rising costs, according to an economic index released by the Dhaka Chamber of Commerce and Industry (DCCI).

The country's inflation rose to 9.04% in April from 8.71% in March, according to the Bangladesh Bureau of Statistics (BBS).

The chamber's Economic Position Index (EPI) found that consumers have sharply reduced spending as the cost of living continues to rise, putting pressure on retailers, transport operators and other service providers.

Businesses surveyed for the report said weak demand has become one of their biggest concerns.

"Inflation has cornered consumers and weakened purchasing power," said AKM Asaduzzaman Patwary, acting secretary general of the DCCI, while presenting the report at a seminar organised by the chamber today.

According to the report, higher rents, utility bills and fuel prices are eating away at already thin profit margins.

Small and medium-sized enterprises are feeling the pressure most as they struggle to manage higher operating expenses without losing customers.

Businesses also cited difficulties in obtaining bank loans, while delays in licensing and other regulatory procedures are adding to costs.

The report identified a shortage of skilled workers, particularly in technical and customer service roles, as another challenge for the sector.

The DCCI introduced the quarterly index to track changes in business conditions more closely than traditional economic indicators.

Patwary said official data often fails to capture the real situation businesses face because it is published long after conditions have changed.

“There is no proper metric that can effectively reflect the periodic health of the private sector,” he said.