Remittance hit $3.75 billion in March, the highest on record, giving a respite amid deepening worries over the ripple effect on Bangladesh’s struggling economy due to the US-Israel war on Iran.

The inflow in March was 14 percent higher than $3.29 billion in March 2025 as Bangladeshis working abroad sent increased amounts to their loved ones ahead of the Eid-ul-Fitr festival on March 21.

Overall remittance, which acts as a major source for Bangladesh to clear its external payments, rose 20 percent to $26.20 billion in the July-March period compared to a year ago, according to Bangladesh Bank (BB) data released yesterday.

The surge comes against the backdrop of heightening concern over the possible impact of the war on remittances in the coming months as the conflict spreads across the Gulf -- key employment destinations for Bangladeshi migrant workers.

Nearly 800 Middle East-bound flights from Bangladesh have been cancelled since the war with Iran on February 28, mostly affecting migrant workers.

Last week, the Asian Development Bank (ADB), in a report, said Bangladesh and other South Asian countries could face lower remittances from the Middle East as the ongoing conflict in the region weakens labour demand and squeezes migrant worker incomes.

Nearly half of Bangladesh’s more than $30 billion in annual remittances comes from the Middle East. Saudi Arabia, Oman, Qatar, the UAE, and Kuwait together accounted for 86 percent of Bangladeshi migrant workers who secured jobs abroad in FY25, according to the Bangladesh Economic Review 2025.

Bankers and analysts said the spike in the inflow was largely because of the Eid festival, political stability and an increased rate of the US dollar following a slight depreciation of the taka.

Md Shaheen Iqbal, additional managing director & head of wholesale banking at BRAC Bank, said another factor is that migrants try to send home more during any crisis period. “We have seen this trend during the initial days of the Russia-Ukraine war. A similar thing may happen this time.”

He said the inflow may fall this month but recover in the next month ahead of Eid-ul-Azha. However, the remittance inflows in the later months will depend on the war, he said.

Deen Islam, professor of economics at Dhaka University, said the recent surge in remittance inflows provides meaningful short-term relief to Bangladesh’s external sector, but its sustainability remains uncertain in the current global context.

“Much of Bangladesh’s remittance originates from migrant workers in Gulf Cooperation Council (GCC) economies, making flows sensitive to oil price cycles, fiscal conditions in host countries, and evolving labour nationalisation policies,” he said.

“Additionally, tighter immigration regimes in advanced economies and global economic slowdown risks could constrain future migration and earnings growth.”

During the July-February period of the fiscal year 2025-26, over 10 lakh migrant workers left for jobs abroad, up 15 percent YoY, according to official data.

Birupaksha Paul, a professor of economics at the State University of New York, USA, said imports may increase following the return of political stability in the country after the election.

“There is a concern that pressure is likely to build on Bangladesh’s foreign exchange reserves to pay higher import bills,” he said. “Foreign exchange reserves will not increase in that case.”

In this context, he said, the foreign exchange rate should be re-evaluated. “Some people doubt that it is not yet fully market-based and not reflecting the market price,” he said, adding that any depreciation will fuel import-induced inflation.

“But reserve management is a crucial thing,” said Paul, former chief economist at the BB.

Prof Islam said while the increase in remittance strengthens the balance of payments, supports exchange rate stability, and boosts domestic consumption, it also reinforces a structural dependence on external labour income rather than productivity-driven export growth.

“Therefore, although remittances will likely remain a vital pillar of macroeconomic stability in the near term, their long-run sustainability and developmental impact depend on diversification of migration destinations, skill upgrading of workers, and complementary policies to channel inflows into productive investment rather than predominantly consumption.”

Bangladesh’s first large-scale venture capital firm, an investment management company supported by 39 banks, will begin operations next month to address the long-standing funding gap for local startups.

Named Bangladesh Startup Investment Company (BSIC), the firm has raised nearly Tk 600 crore in initial capital. It plans to begin operations on April 30 and invest in at least three startups by June 30.

Guided by the Bangladesh Bank (BB), the BSIC will provide equity financing, strategic support, and opportunities for international co-investment to help promising startups scale, officials said.

“BSIC will serve as a full-service institution for young entrepreneurs,” BSIC Chairman Mashrur Arefin, and managing director of City Bank Plc, told The Daily Star.

“It will provide not only funding but also ongoing monitoring and strategic guidance to help businesses grow. We know 90-95 percent of startups fail, but if even a few succeed and one or two reach global markets, that will be a significant achievement. Such successful firms will also generate many new jobs,” he added.

The country’s startup growth, strong a decade ago, has slowed over the past two to three years due to tighter global venture capital flows and cautious investors.

Early successes like Pathao and Chaldal attracted foreign funding, but limited profitable exits, regulatory hurdles, low internet penetration, shifting capital to AI, weak local AI startups, macroeconomic pressures, and political uncertainty have all dampened investor confidence.

BSIC will invest only after a startup demonstrates market demand, has a basic operational setup, and shows growth potential, rather than funding ideas at the concept stage.

Officials said the company will initially focus on ventures in health, agriculture, education, transport, retail, and logistics, offering funding in exchange for equity stakes.

If the selected startups perform well, BSIC will also bring in foreign venture capital to co-invest, helping local entrepreneurs scale and access global technology and expertise.

Between 2027 and 2028, BSIC plans to invest in 8 to 12 startups, and from 2029 onward, it aims to exit successful ventures through stock market listings or direct stake sales.

Arefin, also chairman of the Association of Bankers, Bangladesh, said that although the process began under the interim government, new BB Governor Md Mostaqur Rahman has actively overseen its progress. “The governor asked us to focus on developing the rural economy. We will give that high priority,” he added.

The long-term goal, Arefin said, is to build globally competitive startups in Bangladesh that could one day rival Uber, Instagram, Facebook, Spotify, or Airbnb, creating large-scale employment.

Local startups such as 10 Minute School and Shikho have already demonstrated how technology can expand access to education, while digital health ventures could similarly benefit rural communities, he added.

EQUITY-BASED SUPPORT AND BANK CONTRIBUTIONS

Arefin highlighted that the fund will grow each year as participating banks contribute from annual profits. “Unlike loans, the support will be equity-based, meaning BSIC will take ownership stakes in startups instead of charging interest,” he said.

Under a BB directive, participating banks are contributing 1 percent of their profits earned between 2020 and 2024 to build the fund.

Bankers said this reflects an understanding that startups need risk capital rather than traditional loans, which commercial banks are not designed to provide.

According to BSIC sources, BRAC Bank holds the largest share at 7.71 percent, followed by City Bank at 6.74 percent, Dutch-Bangla Bank at 6.67 percent, Pubali Bank at 6.5 percent, Sonali Bank at 5.73 percent, Eastern Bank at 5.58 percent, and Prime Bank at 4.98 percent.

Going forward, banks will contribute around Tk 200 crore annually from new profits, allowing the fund to expand and support more startups.

BSIC’s nine-member board includes managing directors from City Bank, Prime Bank, Mutual Trust Bank, Sonali Bank, and Pubali Bank, along with four independent directors, with Light Castle Partners as strategic consultant.

Nazeem A Choudhury, additional managing director of Prime Bank, is interim chief executive officer (CEO) while BSIC searches for a professional with multinational startup investment experience to appoint a permanent CEO and head of investment by May.

BSIC was registered with the Registrar of Joint Stock Companies and Firms on December 7 last year.

In a comprehensive move to reinvigorate the country's sluggish capital market, key stakeholders have proposed a series of ambitious reforms ahead of the 2026-27 national budget, including mandatory listing for large corporations and sweeping tax adjustments.

The proposals, placed during a pre-budget discussion at the National Board of Revenue (NBR) headquarters today (1 April), aim to boost investor confidence, attract foreign participation and deepen market liquidity.

Representatives from the Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE), DSE Brokers Association (DBA), Central Depository Bangladesh Limited (CDBL), and the merchant bankers' association presented a unified set of recommendations. The session was chaired by NBR Chairman Abdur Rahman Khan, alongside senior tax officials.

Market intermediaries stressed that the capital market must be treated as a central driver of economic growth rather than a peripheral sector.

Saiful Islam, president of the DSE Brokers Association, said the proposals are aligned with global standards and designed to create a more competitive and inclusive investment environment.
Infographic: TBS
Infographic: TBS

He emphasised that the current economic climate requires the government to treat the capital market as a primary engine for growth rather than a secondary thought.

A major focus of the recommendations is tax reform. The DSE proposed that tax deducted at source on interest income from listed bonds be treated as a final tax liability, simplifying compliance for investors. To further develop the bond market, it suggested a five-year tax exemption on interest income from Treasury bills, Sukuk, asset-backed bonds, and green bonds.

Stakeholders argue that a stronger bond market would reduce the government's reliance on bank borrowing and lower overall financing costs.

To address persistently low foreign participation, currently below 2%, the DSE recommended a five-year exemption on capital gains tax for non-resident investors. Market leaders believe such incentives could attract foreign portfolio investment, strengthen foreign currency reserves, and increase market activity.

The exchange also proposed a five-year tax holiday for companies listed on the SME board, including startups and greenfield ventures, to encourage smaller firms to raise funds from the capital market instead of relying on high-interest bank loans.

For individual investors, the DSE suggested reducing the capital gains tax rate from 15% to 5% on gains exceeding Tk50 lakh, while keeping gains below that threshold tax-free. According to the exchange, high tax rates have discouraged participation from high-net-worth individuals, contributing to declining turnover.

DSE Chairman Mominul Islam said, "We are now in the frontier market; from there, we want to go to the 'emerging market.' The number of investors in the capital market is now 16 lakh; we want to increase it to 50 lakh. We want to increase the daily transaction from Tk500 crore to Tk5,000 crore. As a result, the government's revenue will increase at least 10 times what comes from the capital market."

Stressing the need for cooperation for this transformation, he said they do not want anything that will reduce the government's revenue, but rather want restructuring.

One of the most significant proposals came from the DSE Brokers Association, which introduced a "Deemed-to-Be Listed Company" framework. Under this concept, companies meeting specific thresholds—such as Tk500 crore in paid-up capital, Tk1,000 crore in annual turnover, or Tk500 crore in bank loans—would be required to list on the stock market after a grace period of 15 to 20 years.

The DBA argued that many large corporations benefit from substantial state incentives without offering public ownership opportunities. Mandatory listing, they said, would enhance transparency and broaden investment access.

The association also called for action against inactive or "shell" companies. It proposed that firms failing to hold annual general meetings or declare dividends for three consecutive years should lose tax benefits and be taxed as non-listed entities. This, they believe, would improve accountability and remove underperforming companies from the market.

Additionally, the DBA reiterated its demand to eliminate double taxation on dividend income, noting that the current effective tax rate for individuals exceeds 40%, discouraging long-term investment.

In the credit market, the association proposed allowing listed bonds to be used as collateral for large bank loans, particularly those exceeding Tk500 crore with maturities of more than three years. This measure is expected to promote capital market-based financing.

Meanwhile, CDBL recommended increasing the minimum public shareholding requirement from 10% to 20% for companies seeking tax benefits. A higher public float, it said, would improve price discovery and reduce the risk of manipulation in thinly traded stocks.

The Chittagong Stock Exchange, for its part, emphasised the need for modern market infrastructure. It sought policy support and tax incentives for launching Bangladesh's first commodity exchange and derivatives trading platform. It also requested tax exemptions on specialised software imports required to establish these systems.

Approximately US$234 billion was illicitly transferred out of Bangladesh during 2009-2023, Prime Minister Tarique Rahman told parliament Wednesday on a question about money laundering during the Awami League rule.Bangladesh economic report

He quoted from the findings laid down by the White Paper Preparation Committee formed during the interim government's period.

Thus, an average of $16 billion (about Tk 1.8 trillion) siphoned off the country every year.

The Prime Minister, who became Member of Parliament for the first time, mentioned the data while responding to the question put up during his maiden PM's question hour in the 13th Jatiya Sangsad (JS).

The prime minister said his government is giving the highest priority to recovering assets smuggled abroad as a key part of its "broader strategy to combat corruption, money laundering, and financial crimes".

According to the head of government, legal proceedings are ongoing to recover laundered money in 11 cases identified and prioritised by an inter-agency taskforce. These cases involve 11 individuals and organisations, including family members and related entities linked to former prime minister Sheikh Hasina.

Those named include Sheikh Hasina, former land minister Saifuzzaman Chowdhury, S Alam Group, Beximco Group, Sikder Group, Bashundhara Group, Nassa Group, Orion Group, Nabil Group, HBM Iqbal, and Summit Group, along with their associated family members and affiliated entities.

Responding to a question from ruling-party MP Md Abul Kalam, the prime minister added that the government's election manifesto emphasised publishing a comprehensive white paper on corruption and money laundering during the previous "fascist Awami League era" and taking legal action against those identified.

Since the laundered funds are alleged to have been transferred to multiple countries, the government is strengthening information exchange, asset identification, and mutual legal assistance with relevant countries. To this end, it is working closely with the Ministry of Foreign Affairs and other agencies to conclude Mutual Legal Assistance Treaties (MLATs).

The prime minister mentioned 10 countries initially identified as major destinations for illicit funds: the, United States, the United Kingdom, Canada, Switzerland, Australia, Thailand, the United Arab Emirates, Singapore, Malaysia, and Hong Kong. Among them, Malaysia, Hong Kong and the UAE have agreed to sign such agreements, while discussions with the remaining seven countries are ongoing.

He also presented updates on the 11 priority cases, noting that 11 joint investigation teams have been formed under the leadership of the Anti-Corruption Commission, with participation from the Criminal Investigation Department (CID), the National Board of Revenue's Central Intelligence Cell, and the Customs Intelligence and Investigation Directorate.

Tarique Rahman said as of 25 March 2026, courts had frozen assets worth Tk 704.46 billion, including Tk 571.68 billion domestically and Tk 132.78 billion abroad. A total of 141 cases have been filed, 15 of which have seen charge sheets submitted, and six cases have reached verdicts.

In response to a supplementary question from Jamaat-e-Islami MP Mujibur Rahman about repatriation of the laundered money, the prime minister said the current government being an elected one is committed to upholding the rule of law. He criticised past practices where individuals were allegedly coerced or forced into compliance.

He emphasised that the government would proceed strictly through legal means to ensure justice for all. "The law will take its own course," he said, adding that those who laundered public money would be punished under existing laws.

Responding to another question, he said: "In simple terms, this is people's money. Since we are elected by the people, we are accountable to them and to the country. Naturally, recovering this money and spending it for the benefit of the people is one of the government's key responsibilities."

To a question from NCP MP Akhtar Hossain regarding the financial impact of social-support schemes such as family card and farmer card, the prime minister said the budget allocation would be disclosed gradually and the programme would be implemented in phases, with the number of beneficiaries increasing on monthly basis.Wealth management services

He made it clear that the assistance is not being financed by printing money so it would not trigger inflation. Instead, the funds would be spent within the local economy, boosting economic activity, employment, and living standards for marginalised groups.

Regarding the family-card recipe, in response to a question from ruling-party MP ABM Mosharraf Hossain, the prime minister said it was launched on 10 March in 15 wards across select districts and corporations. Initially, 37,814 women-led households have received benefits, with an additional 30,000 families to be included within the current fiscal year. The annuity programme aims to cover 40 million families over the next four years.

He said issuing the card in the name of the female head of the household would ensure that support is spent on food, nutrition, healthcare, and education, while also increasing women's control over family resources and strengthening their role and dignity in decision-making within the family and society.

The Association of Bankers Bangladesh Limited (ABB) has proposed a series of tax relief measures and policy reforms, including removing the investment cap on government securities for individuals and exempting capital gains from treasury bills and bonds.

In its pre-budget recommendations for the 2026-27 fiscal year, the association presented a 14-point proposal to the National Board of Revenue (NBR) during a meeting in Dhaka today (1 April).

The pre-budget discussion was attended by NBR Chairman Md Abdur Rahman Khan and senior officials of the revenue authority.

ABB Chairman and Managing Director of City Bank Mashrur Arefin urged authorities to introduce measures aimed at strengthening the financial sector and encouraging investment.

Among its key proposals, the ABB called for the withdrawal of the existing Tk5,00,000 ceiling on individual investment in government securities for tax rebate purposes, arguing that the restriction limits investors from fully utilising available tax benefits and discourages participation in a traditionally safe investment segment.

The association noted that instruments such as treasury bills, bonds, savings certificates, debt securities and Shariah-based sukuk remain highly attractive to investors, but the cap has reduced incentives, adversely affecting government cash flow.

The ABB also proposed that capital gains earned from treasury bills and bonds be made tax-free, instead of being taxed at the current rate of 15%. It argued that such a move would help develop a vibrant bond market and attract foreign investors, thereby supporting foreign exchange reserves.

In addition, the bankers' body recommended recognising provisions against non-performing loans as allowable expenses for tax purposes, reducing corporate tax rates to 30% or below, and removing limits on corporate social responsibility (CSR) expenditure.

Under current rules, CSR spending is capped at 10% of total income or Tk8 crore, whichever is lower, with only 10% tax rebate. The ABB suggested treating such expenditure as fully tax-deductible and lifting the ceiling altogether, stating that increased CSR spending would contribute to broader socio-economic development, including in education, healthcare, disaster management and environmental protection.

The association further called for the withdrawal of the requirement to submit proof of submission of income tax return for accessing banking services such as loans and fixed deposits, and reinstating the previous system of electronic Taxpayer Identification Number (e-TIN) submission.

At present, individuals without taxable income must submit proof of submission of income tax return to obtain loans exceeding Tk20 lakh or to open and maintain fixed deposits above Tk10 lakh.

The ABB argued that this requirement has negatively affected retail and CMSME (cottage, micro, small and medium enterprise) clients, pushing many towards informal lenders due to fewer documentation requirements.

It warned that such a trend could drive CMSMEs outside the tax net, whereas facilitating easier access to formal banking could boost future tax revenues, including income tax, VAT and excise duties, while also generating employment.

'Super tax' on stock dividends

The ABB also sought the withdrawal of the 10% "super tax" on stock dividends and retained earnings transfers by listed companies. Currently, companies face additional tax if stock dividends exceed cash dividends or if retained earnings transferred exceed 70% of post-tax net income.

The association argued that such taxes hinder banks' ability to strengthen their capital base, noting that scheduled banks are required to maintain a minimum capital adequacy ratio of 12.5% of risk-weighted assets.

The ABB also urged the NBR to allow provisions against classified and unclassified loans to be treated as tax-deductible expenses, recalling that such provisions were recognised as allowable expenses under earlier tax regulations before the 2006-07 fiscal year.

The Annual Development Programme (ADP) implementation rate in February, while remaining at a low level, has almost doubled compared to the last fiscal when the interim government led by Professor Muhammad Yunus was in power.

According to the latest progress report released by the Implementation Monitoring and Evaluation Division (IMED) under the Ministry of Planning, in February Tk 12771.23 crore has been disbursed which is 6.11 percent of the total amount while it was only Tk 7676.33 crore in the last year that represented 3.39 percent only.

It also stated that the pace of spending and execution has slightly improved for the first eight months of the running 2025-26 fiscal than the previous year.

The implementation progress during the July–February period showed spending reached Tk 63,327.53, representing 30.31 percent of the annual allocation. During the same period of FY2024–25, implementation stood at Tk 67,553.21 crore or 29.87 percent.

In FY2023–24, the implementation rate for the July–February period was 33.65 percent with expenditure amounting to Tk 85,602.59 crore. The rate was 34.74 percent in FY2022–23 with spending of Tk 823,169.96 crore, while FY2021–22 recorded 38.60 percent implementation, with Tk 84,765.07 crore spent.

However, for the current fiscal year 2025–26, the total ADP allocation stands at Tk 208935.53 crore. In comparison, allocations in recent years were Tk 226166.88 crore in 2024–25, Tk 254391.64 crore in 2023–24, Tk 236560.67 crore in 2022–23 and Tk 219601.91 crore in 2021–22.

Officials said the current year’s rate of implementation indicates a continued slowdown in project execution.

The persistent slowdown has been attributed to multiple factors, including administrative adjustments, cautious expenditure management and slower approval processes during the interim administration period.

Project officials have also pointed to delays in procurement, land acquisition and fund release as key reasons behind the lower execution rate.

As per the economists, the ADP plays a critical role in driving economic activity, employment and infrastructure development.Economic forecast publication

A sustained slowdown in implementation may affect overall growth momentum, especially in sectors reliant on public investment.

Despite the lower execution rate, planning ministry officials expressed hope that spending would accelerate in the remaining months of the fiscal year as ministries and agencies traditionally speed up project implementation towards the end of the budget cycle.

The ADP is the government’s primary development budget, financing major infrastructure, social sector and regional development projects.

A higher implementation rate is generally seen as a sign of strong administrative capacity and efficient project management, while slower spending often signals bottlenecks in execution.

With less than half the fiscal year remaining, the pace of implementation in the coming months will be crucial in determining whether the government can narrow the gap with previous years or whether FY2025–26 will end with the lowest execution rate in recent times.

The Cabinet Committee on Government Purchase (CCGP) yesterday approved the import of another 2.6 lakh tonnes of fuel oil, as the government moves to safeguard national energy reserves against the backdrop of the US-Israel war on Iran.

The committee authorised the direct purchase of 1 lakh tonnes of crude oil from Abeer Trade & Global Markets. The government opted for a direct procurement route, bypassing the standard competitive tender process, citing urgent domestic energy requirements amid the continuing US-Israel war on Iran.

The conflict has introduced significant uncertainty into global oil shipping corridors, particularly through the Strait of Hormuz, through which a substantial share of Asia-bound crude transits.

To mitigate supply chain risks, the government is also diversifying fuel imports as traditional shipping routes face disruption and fears of nationwide shortages grow amid escalating geopolitical tensions in the Middle East.

The CCGP yesterday approved the import of one lakh tonnes of EN590-10 PPM ultra-low sulphur diesel from ExxonMobil Kazakhstan Inc (EMKI) via direct purchase.

A further 60,000 tonnes of 0.5 percent sulphur gasoil (diesel) will be imported from Indonesia’s state-linked PT Bumi Siak Pusako Zapin (BSP Zapin) under a government-to-government (G2G) framework.

Earlier on March 26, the government authorised the emergency purchase of 3 lakh tonnes of diesel following two proposals from the Energy and Mineral Resources Division.

Before that, on March 22, the government wrote to the United States, requesting permission to import up to 6 lakh tonnes of refined fuel from Russia or, alternatively, to obtain a waiver for at least two months, according to the Ministry of Power, Energy and Mineral Resources.

Since the war started, Bangladesh has also received some 17,000 tonnes of diesel from India under an existing arrangement. Two additional shipments, each estimated at around 6,000 tonnes, are expected from Indonesia.

For the agriculture sector, the CCGP yesterday approved the import of 35,000 tonnes of MOP fertiliser from Russia’s JSC Foreign Economic Corporation (Prodintorg).

The procurement, to be implemented by the Bangladesh Agricultural Development Corporation (BADC), is valued at Tk 154.89 crore, with each tonne priced at $360.53.

While 10 proposals were placed before the committee, several, including the procurement of pulses and telecom equipment for the Rooppur Nuclear Power Plant, were withdrawn.

Meghna Bank PLC has moved to auction a mortgaged property owned by PFI Securities Limited to recover defaulted loans totaling Tk49.18 crore.

In a public notice, the bank said the auction will involve a commercial property in Dilkusha, a prime business area in Dhaka under Motijheel police station.

The asset includes around 6.60 decimals of land and a nine-storey building, which also houses the PFI Securities office.

Interested buyers have been invited to submit bids by 15 April, along with required documents and earnest money deposits. The highest bidder, subject to meeting all conditions, will secure the purchase.

The bank said the auction is part of its effort to recover non-performing loans, highlighting growing pressure on financial institutions to maintain asset quality. Auctions of mortgaged assets have become a common mechanism amid rising defaults in the sector.

Attempts to reach Kazi Fariduddin Ahmed, managing director of PFI Securities, for comment were unsuccessful.

Established in 1997, PFI Securities operates as a stock dealer and brokerage firm, and is a member of both the Dhaka and Chattogram stock exchanges.

It is also an associate of Prime Finance and Investment, which holds a 46.15% stake in the company.

The firm has faced regulatory issues in recent years. In November 2023, the Central Depository Bangladesh Limited temporarily suspended its depository participant operations over unpaid fees, though the matter was resolved shortly after. In 2018, the Bangladesh Securities and Exchange

Commission fined the company Tk25 lakh over irregularities related to consolidated customer accounts and stock market investments.

The Bangladesh Securities and Exchange Commission has approved the issuance of an Orange bond, the first of its kind in the country, by SAJIDA Foundation to raise Tk 158.5 crore to finance women’s economic empowerment and accelerate progress towards gender equality.

The zero-coupon bond, a debt instrument that pays no interest but is sold at a deep discount, marks a major milestone in Bangladesh’s capital market evolution, said a press release from BRAC EPL Investments Ltd.

SAJIDA Foundation partnered with BRAC EPL Investments Ltd and Impact Investment Exchange (IIX), the Singapore-based global impact investing platform, to issue the Orange bond, a specialised investment tool designed to raise money specifically for empowering women, girls, and gender minorities while tackling climate change.

Some 48 percent of the proceeds will be allocated to food security and agriculture, 32 percent to women-led SMEs, and 20 percent will be used for climate-resilient housing across 36 districts
“The pioneering bond supports the transition toward more inclusive, resilient, and capital market-driven development finance solutions, and contributes to broader efforts to develop the impact investment ecosystem in Bangladesh,” said the press release.

BRAC EPL Investments Ltd said Bangladesh’s bond market has long been dominated by government securities and bank subordinated debt.

This transaction breaks that mould by introducing thematic, impact-linked fixed income as a new asset class.

The bond offers investors tax-exempt financial returns while enabling measurable social impact, particularly in supporting women and women-led businesses.

Some 48 percent of the proceeds will be allocated to food security and agriculture, 32 percent to women-led SMEs, and 20 percent will be used for climate-resilient housing across 36 districts.

“Impact will be tracked through independently verified annual reports aligned with international standards, ensuring transparency and tangible benefits for women’s economic empowerment.”

Major blue-chip stocks, typically seen as market anchors, led March's decline, with BRAC Bank and British American Tobacco Bangladesh among the hardest hit as global uncertainty weighed on Bangladesh's market.

According to "Monthly Market Wrap: March 2026", published by Sheltech Brokerage Limited, both blue-chip and mid-cap stocks dominated the list of top decliners. BRAC Bank posted the steepest fall, dropping 23.43% month-on-month to close at Tk67, while BAT Bangladesh lost 19.35% to Tk221.30.

Other major laggards included Rahima Food Corporation, Pragati Life Insurance, Saiham Textile Mills, IFIC Bank, Sonargaon Textiles, Dulamia Cotton Spinning Mills, Islami Bank Bangladesh PLC, and Beximco Pharmaceuticals – each recording double-digit losses over the period.

The report attributed the broad downturn to escalating geopolitical tensions in the Middle East, which triggered widespread selling. Investor sentiment weakened sharply on fears of energy supply disruptions and rising inflation – key concerns for Bangladesh's import-dependent economy.

The benchmark DSEX index fell 7.53% during the month, shedding 421.95 points to close at 5,178.31. Market activity also declined significantly, with average daily turnover dropping 24.12% month-on-month to around Tk 600 crore, reflecting heightened risk aversion.

Volatility remained high throughout March. Early sessions were marked by panic selling, dragging the index down by more than 591 points cumulatively. One of the sharpest declines came in a single session, when the index plunged 208.98 points – the steepest one-day fall since 2020 – following an escalation in the Middle East conflict.

Although the market saw a brief mid-month rebound driven by bargain hunting, the recovery proved short-lived. Analysts said the absence of any clear de-escalation signals in global tensions discouraged sustained buying, leading to renewed selling pressure in the latter half.

Sectoral performance indicated widespread weakness, with most major industries posting negative returns. Food and allied, banking, and financial institutions were among the worst performers, reflecting both macroeconomic stress and eroding investor confidence.

Analysts warned that the sharp decline in blue-chip stocks is particularly concerning, as these are typically viewed as stable investments. Their fall signals deeper market uncertainty and growing investor caution, even toward fundamentally strong companies.

They added that the market's near-term trajectory will depend largely on global developments, especially in energy markets, as well as domestic economic stability. Until clearer signals emerge, trading is likely to remain subdued, with volatility elevated

Weak, Z-category companies dominated the top gainers' list on the Dhaka Stock Exchange throughout March, according to a monthly report by Sheltech Brokerage Limited, raising fresh concerns about market trends.

Analysis of the report shows that share prices of these companies surged sharply without any corresponding improvement in fundamentals, earnings, or price-sensitive disclosures – indicating that the rally was largely driven by speculative demand rather than actual financial performance.

Analysts warn that such trends can distort the market's natural price discovery mechanism and pose risks to long-term stability.

Market insiders said the surge was mainly fuelled by short-term investors seeking quick gains. They channelled funds into low-priced, high-risk stocks, artificially boosting demand and pushing up prices.

The trend was further amplified by speculative trading, where investment decisions were driven by rumours, market trends, and herd behaviour instead of company fundamentals.

Despite ongoing global economic uncertainty linked to the Middle East conflict, a segment of investors shifted toward riskier stocks. Weak, closed, and Z-category companies, in particular, attracted heightened interest, as their low prices create the perception of higher return potential with limited capital – appealing especially to retail investors.

ILFSL topped the gainers' list, with its share price doubling by 100% to Tk3.20 during the month. Premier Leasing rose 83.33%, while PLFSL and Fareast Finance gained 76.47% each. FAS Finance advanced 70.59%, and HFL climbed 67.57%.

Other notable performers included Familytex, which rose 54.55%, IFIC First Mutual Fund, which gained 40%, Atlas Bangladesh, up 37.39%, and Peoples Leasing, which increased 34.09%.

Alongside the price surge, trading activity in these stocks also increased significantly. Familytex recorded a 611.99% jump in average turnover, while HFL and Atlas Bangladesh saw increases of 555.51% and 363.23%, respectively – reflecting strong speculative interest in low-priced shares.

Experts have urged regulators to strengthen market surveillance and advised investors to remain cautious. Instead of chasing short-term gains, they recommend focusing on company fundamentals, earnings quality, and long-term prospects when making investment decisions

Indonesia’s leader visited Tokyo this week in Asia’s latest flurry of fuel bartering efforts to offset crippling shortages caused by conflict in the Middle ​East, a key source of regional energy supplies.

The race for alternatives has hotted up as China, the world’s second largest economy, imposed fuel export bans, while nations such as ‌South Korea and Thailand try to exploit the lifting of US sanctions on Russian energy as a stopgap move.

Matters are getting desperate for poorer nations as the Philippines became the first to declare a national energy emergency, Sri Lanka cut its work week to four days and rationed fuel, and Myanmar limited car drivers to alternate days.

Southeast Asia’s biggest economy and the world’s fourth most populous country, Indonesia is also expected to announce curbs in coming days.

“To maintain rational economic ​relationships is of vital importance,” President Prabowo Subianto told Japanese business leaders in Tokyo after pacts signed on Monday covering long-term oil and gas and geothermal power projects.

“The geopolitical situation in ​the Middle East gives strategic uncertainty for the security of our energy.”

More immediately, Jakarta could strike a deal to beef up supplies of liquefied natural gas to Tokyo in exchange for liquefied petroleum gas, an essential cooking fuel, Djoko Siswanto, the head of oil and gas regulator SKK Migas, told Reuters on Monday.

While Prabowo and Japan’s Sanae Takaichi agreed ​to boost ties on energy security at a meeting on Tuesday, neither leader confirmed such a swap agreement.

Japan’s government-backed oil and gas producer Inpex is discussing a similar barter deal with India to swap LPG for ​naphtha and crude oil, according to an internal Japanese government document seen by Reuters.

Vietnam has also sought Japan’s help for energy supplies, it showed, while the Philippines said on Monday it had received diesel from Tokyo.

Japan’s trade minister stressed the importance of keeping up fuel supplies to Southeast Asian nations where it has supply chains, but declined to comment on specific deals.

Resource-poor Japan relies on the Middle East for about 95 percent of its oil and 11 of its imports ​of liquefied natural gas, though its energy stockpiles are among the world’s largest.

Australia’s position as a major energy producer and exporter should give it clout in talks with Asian partners for ​supplies of jet fuels that could soon run short, energy analysts said.

The government was engaging with major suppliers such as China, Singapore and South Korea, Foreign Minister Penny Wong said this month.

However, China has banned exports of refined ‌fuel, including jet fuel, to safeguard its economy from energy disruption.

That ban, and another by Thailand, have hit Vietnam especially hard, as the neighbours fill more than 60 percent of its jet fuel needs.

Vietnam’s aviation regulator urged authorities this month to seek additional jet fuel supplies from Brunei, India, Japan and South Korea.

Two-way deals with alternative suppliers should help ease shortages, but a longer war would require concerted efforts, said Hiroshi Hashimoto, senior fellow at Japan’s Institute of Energy Economics.

“If the crisis continues for a prolonged period, Asian countries may need to develop multilateral frameworks to help each other and talk to alternative supply sources.”

Russia could prove to be an unlikely supplier ​for some Asian countries, after the United States issued a temporary waiver of sanctions for its attack on Ukraine.

For the first time in years, South Korea imported Russian naphtha this week, a feedstock critical for making plastics used in everything from automobiles to electronics, and also seeks to secure crude oil, its energy ministry said.

India has stepped up purchases of oil ​from Russia, with which Bangladesh, Thailand and Sri Lanka are also in talks.

It could be challenging to finalise arrangements with Russian oil companies before ​the April 11 expiry of the US sanctions waiver, however, said Janaka Rajakaruna, chairman of Sri Lanka’s state-run Ceylon Petroleum Corp.

Small countries such as New Zealand are keenly aware they could be vulnerable amid a scramble for fuel set to get more frenetic in the next few months.

Prime Minister Christopher Luxon has spoken by telephone in recent weeks with the leaders of Singapore, Malaysia and South Korea, New Zealand’s three largest suppliers of refined products, as well as with ⁠the head ​of the European Commission.

Associate Energy Minister Shane Jones told Reuters he had also contacted big commodity traders, among others, in the ​effort to shore up fuel supplies.

“Unless you build options, we’re too small to get noticed in a maddening, frenzied search for fuel in another two or three months,” Jones added.

The dollar headed for its biggest monthly gain since July on Tuesday and stands out as the strongest so-called ​safe asset, as war in the Middle East has set oil prices surging, nearly everything else sinking and raised the risk ‌of global recession.

Developed market currencies were broadly steady on the day, with the Japanese yen unchanged at 159.62 per dollar, the euro flat at $1.1472 and the pound 0.14 percent higher at $1.3202 .

But still all three were set for March falls of more than 2 percent. For the euro and pound, that is the largest drop since July, and since October for ​the yen.

The dollar has been supported by the US status as an energy exporter and by investors’ flight to cash over the past ​month of conflict.

The latest news from the war, including a Wall Street Journal report that US President Donald Trump was ⁠willing to end attacks on Iran without forcing open the Strait of Hormuz, did little for currencies on Tuesday, but did underscore their monthly moves.

“The ​lack of a clear plan to reopen the Strait continues to pose upside risks to global energy prices,” said Lee Hardman, senior currency analyst at MUFG.

“The ​potential for a bigger hit to growth outside of the US continues to encourage a stronger US dollar,” he said.

Asian currencies have suffered some of the largest losses and, on Tuesday, the dollar pushed 1 percent higher against South Korea’s won , to 1,534 won, levels touched only in the wake of the global financial crisis in 2009 and the Asian ​financial crisis in 1997 and 1998.

The dollar index, which tracks the unit against six main peers, touched its highest since last May at 100.64 and, ​last sitting at 100.47, is up 2.8 percent through March.

Bangladesh Bank has decided to introduce an Islamic interbank money market within the current fiscal year to provide Shariah-compliant banks with a structured platform for managing short-term liquidity.

At present, Islamic banks are unable to borrow through the conventional call money market due to Shariah restrictions, often leaving them under pressure during liquidity shortages.

The proposed market is set to create an alternative funding mechanism, making liquidity management more efficient. It will be open not only to full-fledged Islamic banks but also to conventional banks operating Islamic branches and windows.

To develop the framework, the Bangladesh Bank has reviewed international practices, particularly in countries such as Indonesia, Malaysia, and Bahrain, where Islamic interbank money markets are well-established. The central bank has also engaged with its counterparts in these jurisdictions.

Under the proposed system, transactions will be allowed for tenors of 1, 7, 14, 28, 90 and 180 days. Both collateralised and uncollateralised borrowing options will be available. The central bank has already circulated a policy outline among commercial banks.

An earlier attempt to introduce a similar interbank arrangement for Islamic banks in 2011 failed to gain traction. The renewed initiative is part of broader efforts to strengthen liquidity conditions in the sector.

Conventional banks can easily manage liquidity shortages by borrowing from the call money market. The initial plan to establish a similar interbank market for Islamic banks was conceived during the tenure of former governor Ahsan H Mansur.

A positive sign for the sector

Arfan Ali, former managing director of Bank Asia, noted that the absence of an interbank mechanism had often forced Islamic banks to seek funds outside Shariah-compliant frameworks.

"Once introduced, Islamic banks will be able to transfer funds among themselves, which is a positive development," he said.

He added that banks with surplus funds would be able to lend to those facing shortages, easing temporary liquidity constraints. "Currently, some Islamic banks rely on borrowing from other banks or receive special support from the central bank due to the lack of suitable financial instruments."

A senior official at a Shariah-based bank said, "Islamic institutions cannot borrow from conventional banks or access central bank liquidity through repo operations. While they can raise funds through Islamic sukuk, the volume remains insufficient compared to demand."

What Islamic banks do now

At present, Islamic banks rely on several mechanisms to manage liquidity. These include the Islamic Bank Liquidity Facility, where sukuk must be provided as collateral to obtain support from the central bank.

They also use the Bangladesh Government Islamic Investment Bond, where banks with surplus funds place deposits for three- and six-month tenors. However, this fund is currently inactive due to a lack of available resources.

In addition, Islamic banks manage liquidity through interbank deposits based on mudaraba principles, offering profit-sharing returns. In times of cash shortfall, banks often rely on deposits from peer institutions to bridge gaps.

According to a senior Bangladesh Bank official, the proposed interbank market will provide a more organised platform for liquidity management without direct intervention from the central bank, although it will remain under regulatory monitoring.

The platform will also help the central bank better assess liquidity demand and supply within the Islamic banking segment, an area that is currently difficult to track accurately.

What the new system will offer

Industry insiders believe the new system will increase flexibility in fund management. Banks facing short-term deficits, such as overnight imbalances in current accounts, will be able to borrow from other Islamic banks instead of depending solely on the central bank.

However, concerns remain regarding newly formed or financially weak banks. A senior official noted that such institutions may initially struggle to attract funds from the interbank market due to concerns over repayment capacity and limited income streams.

The managing director of a bank said the implementation of this system would enhance flexibility in fund transfers among Islamic banks. Rather than relying solely on the central bank for short-term fund management, banks would be able to source liquidity from their peers, he said.

"If a bank's current account suddenly turns negative, it could borrow overnight from another bank to return to a positive balance, thereby significantly expanding the options available to these institutions," said the banker.

However, a senior Bangladesh Bank official noted that it will be challenging for Sammilito Islami Bank to secure interbank loans immediately following its formation. There is an underlying concern regarding whether funds lent to this newly established institution would be recoverable, he said.

Not a long-term solution

Experts have cautioned that the initiative should not be viewed as a long-term solution. A former managing director of a private Islamic bank said that while the interbank market can help manage short-term liquidity pressures, it cannot resolve deeper structural issues, including those arising from financial irregularities.

"If mismanaged, using interbank funds to address long-term crises could backfire," he warned, emphasising the need for strong central bank oversight to ensure proper utilisation of borrowed funds.

Islami Bank Bangladesh Limited has sought the recovery of nearly Tk10,000 crore owed by five Shariah-based banks, raising the issue during a meeting with Bangladesh Bank Governor Mostaqur Rahman on Tuesday (31 March).

The meeting was held at the central bank's headquarters at 11:30am, where the governor met the bank's board. It was attended by the bank's chairman, board members, the managing director and other senior officials.

According to sources, Islami Bank Bangladesh Chairman M Zubaidur Rahman urged the prompt recovery of outstanding dues during the discussion.

Sources said Islami Bank also has dues pending from state-owned Janata Bank Limited. In addition, the bank informed the central bank that around Tk1,000 crore in remittance incentives remains pending and requested the release of the funds from Bangladesh Bank.

The lender also sought regulatory support in recovering large loans, relaxation in provisioning requirements under special circumstances, and guidance on maintaining relations with major industrial groups.

In response, Moshtaqur assured the board that the issues would be examined seriously and that decisions on support would be communicated soon, while also pledging full support for smooth operations.

A senior Bangladesh Bank official told The Business Standard that the governor also asked about the bank's operational challenges and instructed relevant departments to review the matters.

The discussion comes as Islami Bank continues efforts to recover from a prolonged governance crisis.

On 17 February, Bangladesh Bank removed board member Md Abdul Jalil and appointed accountant SM Abdul Hamid in his place.

From 2017 until August 2024, before the fall of the Awami League government, the bank was effectively controlled by the S Alam Group.

During that period, nearly Tk1.2 lakh crore was withdrawn under various names and roughly 10,000 officials were irregularly appointed, pushing the bank into a deep crisis.

After the interim government assumed office in 2024, the bank's board was restructured, with several senior officials leaving the country. Md Abdul Jalil was later appointed to the reconstituted board.

Tuesday's meeting marked Governor Moshtaqur's second discussion with the board.

During the first meeting, he noted that Islami Bank had once been a strong institution but had suffered governance lapses in recent years. He also assured full support from the central bank to restore stability, stressing that the bank must not serve the interests of any single group, political party or family.

Meanwhile, A report submitted by Bangladesh Bank to the Anti-Corruption Commission alleged that the S Alam Group had taken nearly Tk1.9 lakh crore in loans from four of the eight banks it controlled.

Of that amount, Islami Bank alone accounted for about Tk1.05 lakh crore.

The Bangladesh Financial Intelligence Unit reported that more than Tk93,000 crore was laundered through fraudulent companies.

According to the findings, Saiful Alam Masud, head of the S Alam Group, and related entities used their influence to secure the loans either directly or through intermediaries.

The government on Tuesday (31 March) approved the procurement of 1 lakh tonnes of refined diesel from Kazakhstan at a competitive rate of $76.41 per barrel to safeguard domestic supply against a volatile global market triggered by the Iran war.

The procurement from ExxonMobil Kazakhstan INC comes as Bangladesh secures a strategic diplomatic opening with the United States.

During a high-level meeting on 11 March at the Secretariat, Finance Minister Amir Khosru Mahmud Chowdhury urged US Ambassador Brent T Christensen to grant Bangladesh temporary waivers for Russian oil imports, similar to the exemptions currently enjoyed by India.

Following the meeting, the finance minister confirmed that the request to support the national economy and ensure steady fuel supplies had been forwarded to the relevant authorities in Washington.

The decision to procure diesel from Kazakhstan was made at a meeting of the Cabinet Committee on Government Purchase, chaired by the finance minister, as Bangladesh moves to secure fuel supplies amid mounting geopolitical uncertainty and supply disruptions.

Case-by-case implementation

A senior Energy Division official told TBS that the US government has responded positively to the proposal by Bangladesh to purchase oil from Kazakhstan.

Washington is now providing feedback on a "case-by-case" basis, allowing Bangladesh to import from specific suppliers and ports that may have Russian associations without breaching international sanctions, he said.

ExxonMobil Kazakhstan, while operating in the Caspian region, often involves projects with Russian links; however, the firm currently adheres to US-mandated compliance standards.

This cooperative stance from Washington enabled the government to approve the $76.41 per barrel deal, which is significantly lower than other market offers.

The government remains cautious regarding new suppliers. Officials noted that while some firms have offered diesel even at lower rates, those deals were not pursued after the US authorities expressed concerns via the Bangladesh Embassy in Washington.

Bangladesh Petroleum Corporation Chairman Md Rezanur Rahman told this newspaper that ExxonMobil expressed confidence in the Bangladeshi market through its own internal reviews.

A "Notification of Award" is set to be issued today (1 April), with the high-quality, low-sulphur diesel expected to reach the country within 15 days of the contract signing and Letter of Credit (LC) opening, he said.

Two more fuel import proposals

In addition to the Exxon Mobil Kazakhstan deal, the committee approved two more fuel import proposals. One involves the purchase of 60,000 tonnes of refined diesel at $221.08 per barrel (including a $5.33 premium) from Indonesia's PT Bumi Siak Pusako Zapin under a government-to-government arrangement.

The other allows for the import of 1,00,000 tonnes of crude oil at $137.14 per barrel (including a $15 premium) from Malaysia-based Abeer Trade and Global Markets via the direct procurement method.

Meanwhile, three additional fuel import proposals were withdrawn at the meeting due to various inconsistencies.

Not guaranteed yet

However, officials cautioned that not all approved deals materialise, as some suppliers fail to meet conditions such as providing performance guarantees. The government has maintained a strict stance against opening letters of credit without such guarantees.

An official from the Energy Division said, "Several companies have yet to deliver fuel, despite receiving approval from the Cabinet Committee on Government Purchase."

BPC to invite tenders for new fuel suppliers

To enhance supply security and ensure competitive pricing, BPC plans to expand its pool of suppliers by inviting new participants, with several international firms already expressing interest in entering the Bangladeshi market.

The BPC is set to publish a notice within this week to enlist new suppliers. This initiative aims to diversify BPC's sourcing of fuel oils and secure more competitive pricing.

According to the BPC chairman, at least 20 international companies have already expressed interest in supplying fuel to Bangladesh. Consequently, BPC has decided to expand its pool of enlisted suppliers, a move expected to make the procurement of both refined and crude oil more efficient, transparent, and competitive.

Currently, Saudi Arabian Oil Company (Saudi Aramco) and Abu Dhabi National Oil Company are the only listed suppliers of crude oil. For refined fuel, nine companies are currently registered.

No fuel price hike for April

Meanwhile, the government on Tuesday decided to keep fuel prices unchanged for April, despite a recent uptick in international oil markets, prioritising public relief over immediate price adjustments.

Officials said the decision not to raise fuel prices was taken after considering multiple factors, particularly the inflationary pressure across sectors that would heavily impact consumers.

Another key concern is the uncertainty in the global energy market.

Officials said the government thinks any increase in diesel prices would have an immediate and widespread impact on daily life.

"If transport costs were to surge, that would trigger fare hikes and commuter frustration. The ripple effects would quickly spread to kitchen markets and grocery stores, fuelling a broader price spiral," said an official.

Bangladesh’s remittance inflows have reached a historic high, recording US $3.62 billion in the first 30 days of March 2026.Bangladesh economic report

This surge, fueled by expatriates’ increasing transfers ahead of the Eid-ul-Fitr celebrations, has pushed the foreign exchange reserves to a robust $34.05 billion.

The March figure marks a significant 10.7 percent growth compared to the $3.27 billion received during the same period in 2025. This record-breaking performance in March 2026 contributes to an exceptional trajectory for the current fiscal year (FY 2025-26).

Cumulative remittance from July 2025 to March 28, 2026, has reached $26.07 billion, a staggering 19.8 percent increase over the $21.76 billion recorded during the corresponding period of FY 2024-25. Central bank officials attribute this record-breaking trend to the government’s 2.5 percent cash incentive on formal banking channels, which has effectively discouraged the informal “hundi” system.

Bolstered by the influx of foreign currency, Bangladesh’s gross foreign exchange reserves rose to $34.05 billion as of March 30, 2026. Under the IMF’s BPM6 manual, the reserves stood at $29.35 billion. This is a slight adjustment from mid-month figures, where gross reserves peaked at $34.22 billion on March 16.

The surge was most concentrated in the first half of the month, with expatriates sending home $2.20 billion in just the first 14 days—a 35.7 percent jump compared to the previous year. Industry insiders noted that Non-resident Bangladeshis (NRBs) traditionally ramp up transfers during Ramadan to support family festival expenses, providing a vital seasonal boost to the national economy.

Economists suggest that if this momentum continues, total remittance for FY 2025-26 will likely surpass all previous annual records. Such a milestone would further stabilize the exchange rate of the Taka and ease pressure on the country’s balance of payments amidst ongoing global economic volatility.

The US national average retail ​price of gasoline crossed $4 a gallon for the first time in more than three years on Monday, data ‌from price tracking services GasBuddy showed, as the US-Israeli war with Iran continued to roil global energy markets.

The $4 per gallon milestone was last reached in August 2022 following Russia's invasion of Ukraine and represents what some analysts have called a psychological barrier for consumers. Prices for many goods are climbing, including oil ​used to make gasoline, following Iran's essential closure of the Strait of Hormuz, a key trade chokepoint.

Surging fuel prices ​have started to weigh on US household finances, which were already grappling with rising costs. They have ⁠also become a political headache for President Donald Trump and his Republican Party ahead of the November midterm elections, as they campaign ​to hold onto thin majorities in the US Congress.

Trump had vowed to lower energy prices and ramp up US oil and gas ​production. But so far, much of his second term has been marked by volatile markets, geopolitical turmoil and shifting policies on issues such as tariffs.

US national average retail gasoline prices have climbed about $1.06 a gallon, or 36 percent, since the US and Israel attacked Iran at the end of February.

“A sudden outbreak of ​war leads to a spike in US gasoline to $4.00 per gallon. That describes the current Iran conflict - and also Russia’s invasion ​of Ukraine in 2022. Then, as now, oil prices soared around the world, and emergency oil stockpiles were tapped. But we envision this crisis being ‌shorter: ⁠whereas gas stayed above $4.00 for 23 weeks in 2022, we expect prices starting to cool in the next few weeks,” said Raymond James analyst Pavel Molchanov.

Still, pump prices could climb further if crude oil prices continue to surge. US oil futures have surged since the war began, settling at $102.88 a barrel on Monday, up $3.24. They jumped over $3 in Asian trading after Kuwait said an oil tanker was attacked ​at a Dubai port.

The Trump ​administration has taken steps to ⁠assuage the rise in energy prices as the war has dragged on, including a waiver of the Jones Act shipping law. The waiver temporarily allows foreign-flagged vessels to move fuel, fertilizer and other ​goods between US ports. Industry insiders expect it to have only a marginal impact on price ​increases.

The war in Iran has knocked the global economy off the path to growth, according to the OECD.

High gasoline prices ⁠are already squeezing US household finances. Some 55 percent of respondents in a Reuters/Ipsos poll said their household finances had taken at least "somewhat" of a toll from the increases in gas prices. Among those seeing an impact, 21 percent said their finances were affected "a great deal."

“The key issue is ⁠not simply crude oil itself. It is gasoline, the most visible price in the economy for consumers, and when that price jumps it hits psychology immediately,” Jeremy Siegel, economist at WisdomTree, said in a note.

“That matters, even if the broader economic effect is more balanced than the headlines.”

The government is set to keep fuel prices unchanged for April, despite a recent uptick in international oil markets, prioritising public relief over immediate price adjustments, according to the Energy and Mineral Resources Division (EMRD).

In recent days, authorities concerned had been considering a partial alignment of domestic fuel prices with global trends, which would have led to a price increase.

However, the move has now been shelved in view of mounting public hardship, officials said.

Fuel stock remains stable as nationwide drives intensify against illegal hoarding

Sources at the energy division confirmed that, even with a significant subsidy burden, the government is leaning towards maintaining existing prices for the month of April.

A circular has been issued this evening, to this end, stating that based on the "Fuel Pricing Guidelines", the government has determined and approved the consumer-level retail prices for fuel.

The price of diesel remains at Tk100 per litre, octane at Tk120 per litre, petrol at Tk116 per litre, and kerosene at Tk112 per litre.

The circular further states that these prices remain unchanged and will continue to be effective from 1 April.

The notification was signed by Enamul Huq, senior assistant secretary of the EMRD, and was addressed to the chairman of the Bangladesh Petroleum Corporation.

Yesterday, the EMRD had said the government was reviewing proposals from state-owned distributors to adjust fuel prices, while simultaneously assessing the subsidy implications under multiple pricing scenarios.

"We have received the proposal from distributors regarding a fuel price adjustment. We are now examining it carefully," EMRD Joint Secretary Monir Hossain Chowdhury told a press conference at the Ministry of Power, Energy and Mineral Resources.

The discussion on hiking fuel prices comes in the face of a global crisis stemming from the Middle East war. In order to cope with energy shortages, prices have increased in many neighbouring countries, and some countries have even shut down educational institutions due to energy shortages.

Earlier, Home Minister Salahuddin Ahmed said keeping fuel prices unchanged in the country, despite their rise in international markets following the Middle East war, was a major success of the government.

The government has reiterated that Bangladesh faces no actual fuel shortage, even as the ongoing conflict in the Middle East disrupts global energy markets, maintaining that supply remains stable and manageable with plans underway to build longer-term reserves, including a 90-day fuel stock.

Officials stressed that recent supply pressures are largely the result of hoarding by a section of traders, creating artificial scarcity rather than reflecting real deficits.

Energy Minister Iqbal Hasan Mahmud said that supply constraints at times were due to logistical delays rather than a lack of fuel. "There is enough fuel… people will get it, but they should not buy more than necessary," he said, urging consumers to avoid panic purchases.

State Minister for Power, Energy, and Mineral Resources Anindha Islam Amit said that long queues at filling stations were caused by a sudden spike in demand.

He urged consumers to avoid stockpiling, reassuring them that both fuel and electricity remain stable.

The state minister said around Tk167 crore is being spent daily to stabilise fuel prices and ease public suffering, as any price hike would immediately increase electricity tariffs, transport fares and food prices.

Recent fuel arrivals

Early today (31 March), a Panama-flagged vessel, PVT Solana, carrying 30,000 tonnes of diesel from Malaysia, berthed at Chattogram Port, marking the eighth fuel shipment to arrive this month.

The Bangladesh Petroleum Corporation (BPC) confirmed that the diesel may be unloaded either via lightering or directly at the dolphin jetty, with final arrangements pending.

Another vessel carrying a similar quantity is expected on 3 April, while a ship transporting around 70,000 tonnes of LNG is due on 4 April. Over the past month, 33 vessels have docked, including 15 carrying fuel oil, eight with LNG, and nine transporting LPG.

Officials said that Bangladesh Petroleum Corporation plans to boost diesel imports from India's Numaligarh Refinery, while Petrobangla has secured nine LNG cargoes for April.

Govt plans strategy to battle crisis

State Minister for Foreign Affairs Shama Obead Islam outlined the government's multi-pronged strategy to secure an uninterrupted fuel supply and strengthen reserves.

Bangladesh is actively engaging with multiple countries – including Saudi Arabia, India, Malaysia, Indonesia, the United States, and Russia – to ensure continued imports.

Several consignments are expected in April under existing agreements and memorandums of understanding.

On fuel imports from Russia, the state minister said the issue of sanctions requires procedural considerations, including engagement with the United States, adding that the relevant ministries are in discussions to resolve such matters.

"There is no fuel crisis at the moment. We have sufficient reserves, and efforts are underway to strengthen our stock further," she said, emphasising that traders creating artificial pressure must be addressed strictly.