March brought an easing of inflation in Bangladesh, with the rate falling to 8.71% from February's 10-month high of 9.13%, according to the Bangladesh Bureau of Statistics (BBS) data released on Sunday (5 April).

The overall decline was driven by a sharp drop in food inflation to 8.24% from 9.30% in February. The drop came in stark contrast to the Food and Agriculture Organization (FAO) warning on 3 April that global food prices rose in March to their highest level since September last year.

The FAO cautioned that prices could rise further if the Middle East conflict – which has already pushed up energy costs – continues.

In March, the average wage index increased slightly to 8.09%, marking gains in farm, factories and services, also breaking a 50-month declining streak in workers' real incomes since February 2022.

Dr Fahmida Khatun, Executive Director of the Centre for Policy Dialogue, said, "In reality, the drop in inflation appears somewhat 'disjointed,' meaning it does not fully reflect ground realities."

"If the data does not match people's lived experiences, questions will naturally arise," she said.

However, Zahid Hussain, former lead economist at the World Bank Dhaka office, does not find the March inflation figure unusual.

He explained that a decline in inflation does not mean prices are falling, rather, the rate of increase has slowed. "Prices are still rising, but at a slower pace."

He noted that although the war situation emerged toward the end of February, its full impact had not yet been reflected in March inflation data.

"Prices of fuel, fertiliser, and other inputs are rising in international markets, but these take time to transmit domestically," he said.

Explaining March's decline in price index, the economist also pointed out that domestic adjustments in gas, electricity, and petroleum prices were not made in March, while LPG prices were adjusted only in early April.

He also noted that in countries like India, Pakistan, and the United States, fuel prices are adjusted more frequently, so the impact of global shocks is felt more quickly. In Bangladesh, the monthly adjustment system delays this impact.

However, he noted that in many cases fuel is being sold at 50% to 100% higher prices in informal markets outside fuel stations, but these prices are not captured in the Consumer Price Index, meaning the real pressure is not fully reflected in official statistics.

The impact of higher costs of transportation, imports, shipping, and insurance premiums is likely to become visible from April-May, he warned.

According to BBS data, the food price index dropped more in rural areas than urban areas, which saw steeper decline in non-food indices in March.

Eleven banks and the majority of non-bank financial institutions (NBFIs) in Bangladesh reported no spending on corporate social responsibility (CSR) in 2025, exposing gaps in participation despite a rise in overall CSR expenditure by banks in the latter half of the year, according to a Bangladesh Bank report published today (5 April).

The report shows that 11 of the country's 61 banks recorded zero CSR expenditure during the year. A similar pattern was seen among NBFIs, where 21 out of 35 institutions reported no CSR spending at all.

Despite the limited participation by many institutions, overall CSR spending by banks increased significantly in the second half of 2025. Total CSR expenditure by banks reached Tk197.85 crore between July and December, up from Tk147.19 crore in the first half of the year.

The data also indicates that CSR spending remains concentrated among a small number of banks, with a handful of lenders accounting for a large share of the total outlay.

Standard Chartered Bank contributed the highest amount at Tk27.71 crore, followed by BRAC Bank with Tk20.04 crore and EXIM Bank with Tk19.85 crore.

Private banks dominated overall CSR spending, accounting for 79.16% of the total. In contrast, state-owned banks contributed only 4.09%, highlighting a stark imbalance between the two groups.

CSR spending also remained largely focused on traditional sectors.

Education received the largest share, accounting for 32.47% of total CSR expenditure, while health accounted for 29.07%. Together, the two sectors received nearly 60% of the total CSR allocation.

Spending on environment and climate-related initiatives remained comparatively low. Allocations for environmental protection and climate action stood at 14.81%, falling short of the 20% guideline set by Bangladesh Bank.

Under Bangladesh Bank regulations, banks and financial institutions are required to allocate up to 1% of their net profits to CSR activities.

Of this amount, at least 30% must be spent on education and another 30% on health. A further 20% is required to go towards environmental protection and climate change mitigation, while the remaining 20% may be allocated to areas such as income generation, disaster management, infrastructure development, sports and cultural activities.

Bangladesh Bank is set to hold another special auction of Tk5,000 crore worth of 91-day treasury bills on 8 April, taking the total amount raised through such auctions in this month to Tk10,000 crore.

A senior central bank official confirmed the development to The Business Standard today (5 April), saying the move comes in response to the government's growing financing needs.

Bankers say the government is increasingly relying on the banking sector due to a revenue shortfall and rising expenditure pressures. At the same time, excess liquidity in banks has created room for such borrowing.

A senior official from a private sector bank noted that banks had placed around Tk11,500 crore in the standing deposit facility (reverse repo) toward the end of last month, indicating surplus funds in the system. This has encouraged the central bank to mobilise funds from the market.

BB to hold Tk5,000cr special repo auction as govt cash demand rises

Additionally, Bangladesh Bank has been purchasing US dollars from commercial banks through auctions since the beginning of the fiscal year, further injecting liquidity into the banking system.

Another banker said the government had also resorted to off-calendar borrowing in the October-December quarter, raising around Tk10,000 crore to meet urgent funding needs.

Such off-calendar auctions typically signal immediate financing requirements, driven by various government initiatives, including social safety net programmes.

For the April-June quarter, the government plans to borrow Tk1.10 lakh crore in short-term funds through treasury bills. This includes Tk44,000 crore in 91-day bills, Tk36,000 crore in 182-day bills, and Tk30,000 crore in 364-day bills, to be auctioned in 12 weekly sessions.

Treasury bill yields fall below 10% amid rising banking liquidity

In addition, the government aims to raise another Tk39,000 crore through treasury bonds of medium and long-term tenures.

Officials from the central bank's Debt Management Department said the auction schedule has been prepared based on the government's financing requirements. However, they noted that this borrowing does not reflect net new debt, as maturing bills and bonds are routinely rolled over through fresh issuances.

Meanwhile, private sector credit growth remains subdued at 6.03%, reflecting weak investment demand. With limited lending opportunities, banks are increasingly investing in government securities, which are considered risk-free.

US President Donald Trump is due to meet Chinese President Xi Jinping in May during his first visit to China in eight years, a closely watched trip that comes just a year after Washington rolled out sweeping and at times erratic global tariffs.

The confrontation between the world's two top economies has evolved from slapping tit-for-tat tariffs to managing tensions following numerous rounds of trade talks, as well as phone calls and a meeting between their presidents last year.

Developments this year

March - US launches new Section 301 unfair trade probes into Chinese industries. China responds with reciprocal investigations. Plans for a summit between Trump and President Xi Jinping were underway but Trump delays Beijing visit to mid-May as the Iran war continues.

US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer meet Chinese Vice Premier He Lifeng and top trade negotiator Li Chenggang in Paris for a sixth round of talks that both sides described as "constructive."

February - US Supreme Court rejects Trump's global tariff regime. Trump indicates he will still use tariffs.

June-August - Trump says trade truce was back on track after some Chinese rare earth magnet producers begin to receive export licences. US starts issuing licences to Nvidia to export its advanced artificial intelligence chips to China, while Trump urges China to quadruple US soybean purchases. Tariff truce was extended another 90 days.

May - At the first round of trade talks, held in Geneva, both sides strike a 90-day truce that allowed lofty tariffs to come down. Three weeks later, Trump says China violated an agreement to mutually roll back tariffs and ease curbs on critical minerals exports. China says US had introduced multiple "discriminatory restrictive" measures against China.

April - After returning to office with a 10% punitive tariff on Chinese goods, Trump announces at the start of April sweeping "Liberation Day" tariffs on all imports that hurt relations with China more. China retaliates and both countries take turns raising levies against each other to exceed 100%. China also begins restricting some rare earth exports.

Mohammed Trading, owned by SAK Ekramuzzaman, managing director of RAK Ceramics (Bangladesh), plans to purchase around 5 lakh shares of the company at current market price, according to disclosures published on stock exchanges today (5 April).

Data from the Dhaka Stock Exchange (DSE) shows that RAK Ceramics shares closed at Tk21.80 each, down 3.11% from the previous session, valuing the planned acquisition at approximately Tk1.09 crore.

The disclosure also confirms that Ekramuzzaman is the proprietor of Mohammed Trading and a sponsor of RAK Ceramics. As of September last year, he held a 3.94% stake in the company, equivalent to 1.69 crore shares.

According to its website, founded in 1996, Mohammed Trading has grown into a prominent player in Bangladesh's trading sector, dealing in high-quality tiles, sanitary ware, faucets, paints, and other consumer products.

The disclosures said the shares to be bought at the current market price through the Dhaka Stock Exchange and Chittagong Stock Exchange.

At the last annual general meeting, shareholders of RAK Ceramics approved entering into contracts for the sale or purchase of goods and materials with Mohammed Trading, amounting to 10% or more of the company's revenue in the immediately preceding financial year, in line with the meeting agenda of the company.

In October last year, Mohammed Trading announced its plan to buy 85 lakh shares of RAK Ceramics at the prevailing market price through the both stock exchanges.

In 2025, RAK Ceramics incurred a loss of Tk39.59 crore, even as its revenue grew by 10.56%, mainly due to higher manufacturing costs, prolonged disruption in gas supply until June, and rising finance expenses.

The multinational ceramic manufacturer's sales rose to Tk7330 crore in 2025 from the previous year, driven largely by increased production following uninterrupted LNG supply from July onward, which helped boost market sales.

Despite the widening losses, its board of directors unanimously recommended a 10% cash dividend for general shareholders for 2025, amounting to Tk11.95 crore.

The declared dividend approved by shareholders in its AGM held on 31 March.

Prime Bank PLC has reported a strong financial performance for 2025, posting a consolidated net profit of Tk910 crore and announcing a 30% dividend for its shareholders, reflecting robust growth and improved operational efficiency.

The board of directors approved the audited financial statements at a meeting held today (5 April) and recommended a total dividend comprising 25% cash and 5% stock.

The latest payout marks a significant increase from the previous year's 20% dividend, which included 17.5% cash and 2.5% stock, according to the press release.

The bank's net profit after tax rose by 24% year-on-year, up from Tk732 crore in 2024. Earnings per share also improved to Tk7.84 in 2025, compared to Tk6.31 in the previous year, indicating enhanced profitability and better returns for investors.

Prime Bank's financial position remained solid, with key performance indicators showing steady growth. Net asset value per share stood at Tk40, while net operating cash flow per share reached Tk58.07, highlighting strong liquidity and operational strength.

The bank's total assets expanded to Tk64,890 crore by the end of December 2025, underscoring its continued business expansion. Its capital adequacy position also remained strong, with a Capital to Risk Weighted Assets Ratio of 18.07%, one of the highest in the country's banking sector.

The bank has scheduled its annual general meeting for 21 May 2026, with the record date set for 28 April to determine eligible shareholders for dividend entitlement.

Market observers view the improved earnings and higher dividend declaration as a positive signal for investors, especially at a time when the broader financial sector is navigating economic challenges. The bank's consistent growth trajectory and prudent risk management have helped it maintain stability and deliver value to shareholders.

Shares of Prime Bank closed at Tk29.40 today at the Dhaka Stock Exchange, reflecting steady investor interest in the stock.

The Bangladesh Investment Development Authority (Bida) has retreated from an earlier announcement that the government had set up a formal Private Sector Advisory Council.

Late last night, Bida issued a clarification, hours after a widely shared statement named nine prominent business leaders as the inaugural members of the body.

The Daily Star had reported on the basis of Bida’s original press release, circulated yesterday afternoon.

In the revised message posted on its Facebook page, the authority said the meeting with Prime Minister Tarique Rahman was convened to hear observations and recommendations from selected entrepreneurs and to help set priorities for private sector-led growth.

But the authority in the revised message said it was not a formal advisory council of the government or the prime minister.

“The meeting had no organisational or legal basis. However, similar engagements would continue in the future,” said Bida.

In its initial announcement, Bida Executive Chairman Ashik Chowdhury described the council as “one of the key reforms proposed by Bida”.

The first statement said the nine business leaders who attended yesterday’s meeting had been personally selected by the prime minister to serve on the council.

They were Arif Dowla, managing director of ACI; Syed Nasim Manzur, managing director of Apex Footwear; Hafizur Rahman Khan, chairman of Runner Group; Ahsan Khan Chowdhury, chairman of PRAN-RFL Group; Ziaur Rahman, managing director of Bay Group; Abdul Muktadir, chairman of Incepta Group; Md Abdul Jabbar, managing director of DBL Group; Sohana Rouf Chowdhury, managing director of Rangs Group; and Syed Mohammad Tanvir, managing director of Pacific Jeans Group.

In its clarification, the authority attributed the confusion to “misleading information circulating on social media” but did not acknowledge that its own press release had announced the council’s formation and named its members.

Nor did it explain why it had made those assertions in the first place, or what had changed in the space of a few hours.

Contacted, Ashik Chowdhury said the original purpose was to create a platform where the prime minister would hear directly from businesses. The prime minister heard from local businesses, especially those in manufacturing.

He said no notification was issued regarding the formation of the advisory council.

“So there is no legal or organisational basis.”

The government seeks to procure another 200,000 tonnes of urea amid supply concerns centring on the unrest in the Middle East. US-Israel’s war on Iran has significantly disrupted the shipment of the major crop nutrient through the Strait of Hormuz, which handles nearly one-third of global fertiliser trade.

State-run Bangladesh Chemical Industries Corporation (BCIC) floated two separate tenders on April 2, seeking quotations from international suppliers on or before April 16 to supply the input through Chittagong and Mongla ports.

The latest move comes less than a week after the corporation, which runs six urea factories and two non-urea fertiliser factories, issued revised tenders to buy 200,000 tonnes of urea from a wide range of suppliers to build stocks before the start of the major rice crop season, rain-fed Aman.

“We are opening all the windows so that we get the fertiliser wherever possible and in whatever quantity we get,” said BCIC Chairman Md Fazlur Rahman. “But we are preferring government-to-government contracts to tenders to get supplies,”

Except for the state-to-state contract, there is no plan to float any more tenders to procure urea now.

Bangladesh requires over 26 lakh tonnes of the nitrogen-based fertiliser, and three-fourths of urea demand is met through imports as local factories can not operate fully amid gas diversion to other sectors.

The government, early last month, shut five out of six urea factories in the country after the closure of the Hormuz Strait fuelled price hikes due to supply fears from the Gulf, especially Qatar, one of the world’s largest exporters of liquefied natural gas.

As of last week, the Bangladesh government had a stock of 373,100 tonnes of urea, according to the Ministry of Agriculture.

While there is no supply shortage until June, the country requires a reserve of around 600,000 tonnes of urea ahead of the July-September Aman sowing period, the BCIC chairman said.

Bangladesh imports urea mainly from Saudi Arabia, the United Arab Emirates (UAE), and Qatar, all of which ship fertiliser, gas, and oil through the Strait of Hormuz.

As supply through the shipping chokepoint has shrunk, fertiliser prices have gone up, raising concern over crop yield in the coming seasons. For example, urea surged to $725.6 per tonne in March, up by 54 percent from the pre-war period of $472 a tonne, according to World Bank Commodities Price Data (the Pink Sheet).

The BCIC chief said Saudi Arabia can ship 100,000 tonnes of urea, and his office informed the Foreign Affairs Ministry so that it can receive clearance from Iran regarding shipment through the Strait.

The UAE has informed that it could supply nearly 30,000 tonnes through other routes, he said, adding, “We have kept close communication with Russia and China.”

Officials at the agriculture ministry said the government is exploring all sources to procure both urea and non-urea fertiliser to ensure that crop production is not hampered due to a shortage.

Dhaka Bank PLC has signed a corporate health agreement with Ascent Health Limited, a diagnostic centre in Dhaka, to offer benefits on medical services.

Under the agreement, the bank’s cardholders and employees will receive up to a 30 percent discount on pathological tests, with sample collection available from home or at doctors’ chambers through Ascent Health Limited.

Md Mostaque Ahmed, deputy managing director and chief emerging market officer of the bank, and Anwarul Iqbal, chief executive officer of the diagnostic centre, signed the agreement at the bank’s head office in Dhaka recently, according to a press release.

The agreement also includes access to consultations with experienced doctors across multiple specialties, including internal medicine, respiratory medicine, rheumatology, dermatology, nephrology, neurology, gynaecology and paediatrics.

Bangladesh has moved to buy three additional liquefied natural gas (LNG) cargoes from the spot market for May delivery in its rush to secure supply amid fears of supply cuts from the Gulf region, especially Qatar, one of the world’s largest exporters of gas.

With the initiative, the government has floated tenders to buy 12 LNG cargoes from the spot market since the start of the US-Israel war on Iran on February 28.

The delivery of nine cargoes for April has been confirmed, though at much higher prices, said a senior official of Rupantarita Prakritik Gas Company Ltd (RPGCL), a state-run entity.

Bangladesh has to pay around $20 per million British thermal units (mmbtu) to buy LNG as prices have surged amid strained supply after the war on Iran began, and the conflict has inflicted damage on production sites and export hubs in the Gulf countries, including the Ras Laffan Industrial City complex in Qatar, which is home to processing units for LNG, according to reports.

Average prices of LNG cargoes were $10–11 per mmbtu during normal market conditions, said the official on condition of anonymity.

The RPGCL invited price proposals in a notice published on its website on April 1, seeking delivery between May 2 and May 9.

Bangladesh currently meets nearly 30 percent of its gas demand through imported LNG, as domestic production falls short of the daily requirement of around 2,650 million cubic feet.

The ongoing war on Iran has disrupted shipments of energy and fertiliser through the Strait of Hormuz, which handles about 25 to 30 percent of global oil and 20 percent of LNG trade.

This has pushed up global energy prices and intensified competition for supplies among key importing countries.

The dollar ​rose sharply from two straight sessions of losses on Thursday after US President Donald Trump’s speech on Iran ‌undermined market expectations of a swift end to the conflict, renewing a bid for safe-haven assets.

Trump vowed more aggressive strikes on Iran in the next two to three weeks during his televised speech on Wednesday, offering no concrete timeline to open the Strait of Hormuz or end a war that has rattled ​investors and roiled markets.

Iran’s military responded with a warning for the US and Israel of “more crushing, broader and more destructive” ​attacks in store.

The US dollar rose, even against other safe-haven currencies including the Swiss franc and the Japanese yen.

The dollar strengthened 0.6 percent to 0.799 against the Swiss franc .

Against the Japanese yen , the dollar was up 0.5 percent at ​159.57, nearing the psychologically important 160 level that sparks investor worries of intervention by Japanese authorities.

“In the last couple of days there was ​a bit of optimism that the war was going to end soon and President Trump’s address to the nation yesterday sort of undermined that hope,” said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York.

“There’s nothing new that he said; it’s just that he didn’t provide any ​kind of morsels to feed the hope. I think this is the only fundamental right now that matters. If you think ​the war is going to end soon, you buy risk. If you think that it’s not going to end soon, you sell risk.”

The euro fell ‌0.45 percent to $1.1536 while sterling slid 0.63 percent to $1.3222 , with both giving up some recent gains.

The dollar index , which measures the greenback against a basket of currencies, climbed 0.46 percent to 100.02.

Just as when oil spills, a shortage seeps slowly. Fallout from a blocked Strait of Hormuz, which typically carries 20 percent of ​the world’s supply, will spread steadily across the planet.

The directional part is simple. Because days in transit ‌cost money, ships prioritize geographically closer markets. Some 80 percent of oil flowing through the Strait goes to Asia, according to the International Energy Agency. About 95 percent of Japan’s oil imports come from the Middle East. Tankers that left the Gulf on February 27, the day before the ​United States and Israel attacked Iran, reached those ports.

Pain radiates from there. Exports to Europe are smaller, with ​even less destined to the Americas. Once these shipments stop, however, price signals will brighten. A gallon of US diesel retails for $5.49, the American Automobile Association says. Although it’s 46 percent higher than a month ago, ​it pales next to places like Singapore, where it’s now more than $15 a gallon. Coastal US producers are already exporting higher ​quantities, causing local prices to rise.

Jet fuel is getting hit hard and other refined products are next in line. Gulf countries have been adding facilities to convert crude into feedstocks, lubricants and more. Many can no longer ship overseas. The Middle East, for example, exported more ​than $10 billion of kerosene tailored for aircraft engines last year. Much of it is now inaccessible, leaving big importers like ​Europe critically short of supplies. Prices have more than doubled, even faster than Brent crude. For unhedged airlines, their expenses will rise 25 percent, ‌based on IEA figures and current prices.

Furthermore, Mideast crude tends to be denser and contains more impurities, making it cheaper. Asian plants are generally equipped to refine it. They must now pay up for pricier light, sweet oil, and probably generate less output.

The goods that can be made also will vary. While refineries have some wiggle room, a barrel of WTI, the US oil ​benchmark, generates significantly more heavy ​naphtha, the main precursor to gasoline, than Arabian Heavy. And heavy oil can be turned into more asphalt and ship fuel. US producers are being signaled to drill more, which will translate into proportionally extra ​gasoline, leaving other customers wanting.

US truckers are bound to feel the pinch more severely than ​car drivers. Removing so much crude from the system, however, will push up prices far and wide. Whether it’s transportation, manufacturing or farming, big users of oil and its byproducts will all suffer. The impact is just a matter of how much and when.

US and ​Israeli attacks on Iran that started on February 28 have led to ​the closure of the Strait of Hormuz, which normally carries about 20 percent of the world’s oil and refined products, to nearly all shipping traffic.

Gold fell sharply from two-week highs on Thursday after US ‌President Donald Trump said that Washington would continue its military campaign in Iran in the coming weeks, driving oil prices higher and dampening hopes of interest rate cuts.

Spot gold declined over 2.8 percent at $4,622.59 per ounce, as of 0719 ​GMT, after falling over 4 percent earlier and snapping a four-day winning streak. US gold futures slid ​3.4 percent to $4,649.

The pullback followed bullion’s climb to its highest level since March 19, before Trump’s remarks.

In a prime-time address, Trump said the US would carry out aggressive strikes on Iran ​and was nearing “completion of its main strategic objectives” in the conflict. It disappointed investors who had hoped ​for clearer signals of an end to hostilities.

Prilink Securities, a brokerage firm at the Dhaka Stock Exchange, plans to sell 7 lakh shares of SME-listed Craftsman Footwear and Accessories, a shoe manufacturer and exporter, worth Tk2.35 crore.

In a disclosure, Prilink Securities, which is a placement shareholder of Craftsman and acquired its shares during the company's listing through a Qualified Investor Offer, expressed its intention to sell the shares.

Last month, the brokerage also announced plans to sell 10 lakh shares. Today, Craftsman Footwear shares rose 2.74% to close at Tk33.70 on the DSE.

Craftsman Footwear raised Tk5 crore in 2024 by issuing shares at Tk10 each for expansion, working capital, and loan repayment. The disclosure also said Md Zahirul Islam and Md Abu Syed Titu are directors of the company and also chairman and managing director of Prilink Securities.

The export-oriented company has two production units for local and export markets. In the 2024-25 fiscal year, it reported revenue of Tk76.76 crore, with 97% from exports worth Tk74.36 crore.

The company made a profit of Tk4.32 crore, down from Tk5.44 crore a year earlier, and declared a 10.50% cash dividend. As of December 2025, sponsor-directors held 45.22% of its 2.8 crore shares, institutional investors 32%, and the general public 22.78%, according to DSE data.

The Dhaka Stock Exchange (DSE) has announced a reduction in its daily trading hours by 30 minutes in response to the ongoing fuel crisis, aligning its operational schedule with a government directive aimed at conserving energy.

In a notice issued today (4 April), the premier bourse said the revised trading and office hours will come into effect from today and will remain in force until further notice. The move reflects broader efforts by authorities to manage energy consumption amid concerns over fuel supply constraints and rising global energy prices.

Under the new schedule, DSE office hours will run from 9:00am to 4:00pm. The trading session will now begin at 10:00am and continue until 2:00pm, shortened from the previous closing time at 2:30 pm. The continuous trading session will take place between 10:00am and 1:55pm, followed by a five-minute post-closing session from 1:55pm to 2:00pm.

The decision comes at a time when the country is grappling with energy-related challenges, prompting the government to adopt a series of measures to optimise fuel usage across sectors. Financial markets, like other institutions, are being brought under these measures to ensure coordinated efforts in addressing the crisis.

Officials at the DSE said the adjustment is part of a compliance effort and aims to support national initiatives without disrupting market operations significantly. They added that the revised schedule has been carefully structured to maintain an efficient trading environment while contributing to energy-saving goals.

Investors and brokerage houses have been advised to take note of the new timings and plan their activities accordingly. The DSE also assured stakeholders that any further changes to the schedule would be communicated promptly, depending on the evolving situation.

The National Board of Revenue (NBR) is planning to raise the exemption limit for excise duty on annual bank deposits to Tk5 lakh from the existing Tk3 lakh, a move aimed at easing the tax burden on small depositors.

Currently, deposits between Tk3 lakh and Tk5 lakh are subject to a nominal excise duty of Tk150.

According to Bangladesh Bank data, approximately 40 lakh account holders maintain deposits in the Tk3-5 lakh range. If the exemption is implemented, these depositors would benefit from the new relief, though the government could face a revenue shortfall of around Tk200 crore, NBR sources said.

Experts argue that imposing excise duty on bank deposits is unjustified. Interest earned on deposits is already subject to income tax, and banks levy VAT on service charges, raising questions about the rationale for an additional excise duty.

During pre-budget discussions last Wednesday, NBR Chairman Abdur Rahman Khan confirmed plans to propose excise duty relief for bank deposits but did not provide further details.

Speaking to The Business Standard, he said, "We intend to provide relief on excise duty. However, no final decision has been made yet."

NBR officials reportedly discussed the proposal with the finance minister last week, and if the government approves, it could be presented in the budget slated for June.

A senior NBR officer, speaking on condition of anonymity, explained that deposits up to Tk3 lakh are already exempt and that the plan is to extend the benefit to deposits up to Tk5 lakh.

The officer added, "If implemented, the measure would result in a potential revenue reduction of around Tk200 crore. Our long-term plan is to gradually phase out excise duty on bank deposits altogether."

Md Luftor Rahman, a former NBR member of the Customs Policy wing, criticised the excise duty, calling it unnecessary. "Interest on the same accounts is taxed under income tax, and banks collect VAT on service charges. Collecting excise duty in addition makes little sense," he said.

Syed Mahbubur Rahman, managing director and CEO of Mutual Trust Bank, said that excise duty is collected for convenience, as banks remit it on behalf of the NBR. He argued that the levy leads to duplication since the same amount can be subject to excise multiple times throughout the year and discourages low-income earners from keeping deposits in banks.

Current excise duty structure

The government has set a target to collect approximately Tk2,000 crore from excise duties this year. Under the prevailing rules, the duty is calculated based on the highest balance reached in an account at any time during the year.

Currently, bank deposits up to Tk3 lakh are exempt from excise duty. Deposits between Tk3,01,000 and Tk5 lakh are subject to a duty of Tk150, while those from Tk5,01,000 to Tk10 lakh incur Tk500.

Deposits ranging from Tk10,01,000 to Tk50 lakh are charged Tk3,000, and those between Tk50,01,000 and Tk1 crore carry Tk5,000. For deposits from Tk1,01,00,000 to Tk2 crore, the duty is Tk10,000, and for deposits between Tk2,01,00,000 and Tk5 crore, it rises to Tk20,000. Any deposit above Tk5 crore is liable for an excise duty of Tk50,000.

The Bangladesh Bank has started allowing a gradual depreciation of the taka against the US dollar to manage pressure from rising global energy prices, with analysts indicating there is further room for the currency to weaken.

The exchange rate has already started to depreciate gradually since 8 March, as the dollar rose close to Tk123 after remaining stable at Tk122.30 for months.

Real Effective Exchange Rate (REER), measured based on 17 currencies and incorporating both inflation and exchange rate data of major trade partners, stood at Tk126 on 29 March, indicating that the central bank has room to devalue the taka by Tk3.24 to remain export competitive.

Moreover, the exchange rate band prepared daily by the central bank, based on currency movements of trading partners, shows an upper band of Tk130 and a lower band of Tk125. The upper band suggests that the Bangladesh Bank can still allow a 5.6% depreciation until the dollar reaches Tk130.

The exchange rate band, prepared following a formula recommended by the IMF, also suggests that the current exchange rate is below the lower band.

The band was introduced in December 2024 when the Bangladesh Bank implemented greater exchange rate flexibility in line with a staff-level agreement with the IMF. This band is not publicly disclosed and is used internally to monitor the foreign exchange market.

Under the IMF formula, the Bangladesh Bank is supposed to buy dollars when the exchange rate falls below the lower band and sell dollars when it exceeds the upper band.

However, the central bank stopped buying dollars through auctions in March due to the global oil price shock, while still allowing a slower-than-expected depreciation through price guidance.

It will also refrain from selling dollars from reserves unless the exchange rate exceeds the upper band, according to a senior central bank executive.

Indian refiners have purchased Iranian oil amid the middle east conflict that has disrupted supplies through ‌the Strait of Hormuz, the oil ministry said yesterday (4 April).

The world's third-biggest oil importer and consumer, India has not ​received a cargo from Tehran since May ​2019, following US pressure not to buy Iranian ⁠crude, but supply disruptions from the US-Israel war have ​hit the South Asian nation hard.

"Amid Middle East ​supply disruptions, Indian refiners have secured their crude oil requirements, including from Iran; and there is no payment hurdle for ​Iranian crude imports," the oil ministry said on ​X.

Last month, the United States temporarily removed sanctions on Iranian oil ‌and ⁠refined products to ease supply shortages.

India has secured its full requirements of crude oil for the coming months, the ministry added.

"India imports crude oil from ​40-plus countries, ​with companies ⁠having full flexibility to source oil from different sources and geographies based on ​commercial considerations."

India has also bought 44,000 metric ​tons ⁠of Iranian liquefied petroleum gas loaded on a sanctioned vessel. The ministry said the vessel, which berthed at ⁠the ​western port of Mangalore on ​Wednesday, is discharging the fuel.

The government has taken initiatives to set up nine new factories with the aim of creating employment, Khandaker Abdul Muktadir, minister for Commerce, Industries, Textiles, and Jute ministry said today (2 April).

Speaking in parliament, the minister stated that the ministry has planned to establish new industrial enterprises to eliminate unemployment.

The factories are listed below.

Urea Formaldehyde-85 (UF-85) Plant: A detailed techno-economic feasibility study is currently underway to establish a UF-85 factory on the vacant land of Ghorashal Polash Fertilizer Public Limited Company (GPFPLC), under the Bangladesh Chemical Industries Corporation (BCIC).
New TSP Fertilizer Factory: Efforts are ongoing to appoint an international consulting firm to conduct a detailed techno-economic feasibility study for a new fertilizer factory with an annual production capacity of 400,000 tonnes at TSP Complex Ltd. (TSPCL).
Starch and API Complex: Initiatives have been taken to implement a project titled "Starch Factory and Active Pharmaceutical Ingredients (API) Complex" on the premises of Khulna Newsprint Mills Ltd. (KNML) and Khulna Hardboard Mills Ltd. (KHBML). The techno-economic feasibility study and the Development Project Proposal (DPP) for this project have been completed.
Karnaphuli Paper Mills Ltd. (KPML) Expansion: Initiatives have been taken to set up a full-fledged paper mill including afforestation, a Soda Ash and Baking Soda plant, a Sodium Sulfate plant, an Activated Bleaching Earth plant, a Titanium Dioxide plant, a Sulfuric Acid plant, and a Synthetic or Polyester Fiber plant on the KPML premises. The techno-economic feasibility study is complete, and the drafting of the DPP is in progress.
Basic Chemical Factory: An initiative has been taken to establish a Chloro-Alkali and chlorine-related basic chemicals factory on the premises of Chittagong Chemical Complex (CCC).
Insulator and Sanitaryware Plant: Plans are in place to set up an eco-friendly, energy-efficient modern insulator and sanitaryware plant at the Bangladesh Insulator and Sanitaryware Factory Ltd. (BISFL).
WPP Bag Manufacturing: A pre-feasibility study has been completed to establish a WPP bag manufacturing factory as a backward linkage industry at the GPFPLC premises, utilizing existing management, land, and utilities.
New Urea Factory in Bhola: There is an initiative to set up a new urea fertilizer factory in Bhola district. Site selection activities are ongoing following the completion of a pre-feasibility study.
Modern Glass Factory: A pre-feasibility study has been completed for a modern glass factory using advanced technology on 197 acres of unused land adjacent to the Ashuganj Fertilizer Factory.

The minister further mentioned that while the Bangladesh Small and Cottage Industries Corporation (BSCIC) does not directly establish industrial enterprises, it creates industrial estates or parks where entrepreneurs set up their own factories.

Currently, there are 83 BSCIC industrial estates or parks across the country, housing 6,223 industrial units.

To eradicate unemployment, the BSCIC will take initiatives to establish more industrial estates/parks based on specific proposals, raw material availability, entrepreneur demand, and the availability of uncultivated, unused, or abandoned land through the district administration, subject to feasibility studies.

Entrepreneurs will be able to establish various industrial units in those locations.

Political uncertainty and liquidity stress have emerged as the biggest challenges facing Bangladesh's capital market in 2026, according to a comprehensive sentiment survey conducted by LankaBangla Securities, highlighting a cautious yet hopeful outlook among investors and market participants.

The survey was conducted from 1 January 2026 to 25 February 2026, with 101 respondents from diverse backgrounds participating.

The survey found that nearly 40% of respondents identified political instability as the most pressing concern for the year ahead, while liquidity crunch ranked as the second major challenge, cited by 22.8% of participants.
Concerns over weak corporate governance, declining foreign participation, and a lack of innovative financial products also featured prominently, though to a lesser extent.

Despite these concerns, the survey suggests that market participants are not entirely pessimistic. A significant portion of respondents acknowledged the effectiveness of regulatory policies in 2025, with 45.5% rating them as effective and nearly 10% considering them highly effective.

However, a sizeable group remained critical, indicating that confidence in regulatory oversight is still evolving.

The policy, regulatory, and tax environment was identified as the most influential factor shaping the market in 2025, followed closely by financial sector health and liquidity conditions. This underscores the central role of policy direction and macroeconomic stability in determining market performance, particularly in a period marked by global uncertainty and domestic economic pressures.
Political developments continue to dominate expectations for the future. More than half of the respondents believe political stability will be the single most important driver of market performance in 2026.

Foreign investor participation remains a key concern, with political risks identified as the primary deterrent. Weak governance in listed companies and fears of currency depreciation were also cited as significant barriers, indicating that structural reforms are needed to attract international capital.

In terms of market outlook, investors appear moderately optimistic. Most respondents expect the benchmark index to close between 5,500 and 6,500 by the end of 2026, while daily turnover is projected to remain within a modest range, suggesting a gradual recovery rather than a sharp rebound.

The banking sector is expected to lead market growth, followed by pharmaceuticals and insurance, the survey finds.

Investment strategies are also shifting, with more than half of participants favouring medium-term investments, reflecting a balanced approach amid ongoing volatility. Equities are expected to outperform other asset classes, though gold remains a strong alternative for risk-averse investors.

The survey also highlights persistent structural challenges, particularly in the bond market, where nearly half of the respondents expressed dissatisfaction with its development. At the same time, most participants emphasised the need to eliminate double taxation on dividends and reduce capital gains taxes to stimulate investment.

Encouragingly, over 60% of respondents believe that the integrity of Bangladesh's financial markets will improve in 2026, although concerns over fraud, manipulation, and weak enforcement remain significant. Calls for enhanced transparency, stricter regulatory enforcement, and better corporate governance practices were identified as critical to restoring trust.