Asia’s biggest liquefied petroleum gas (LPG) importers, including India and China, are racing to replace disrupted Middle East supplies with cargoes from the ​Americas, driving spot premiums to record highs, analysts and traders said.

LPG exports from the Middle East, Asia’s top supplier of the ‌fuel used for cooking and feedstock for petrochemical plants, have plunged since the US-Israeli war with Iran started in late February.

The supply shock is squeezing Asian petrochemical producers’ margins, forcing them to cut output, and raising costs for millions of Asian households, analysts and traders said. India and China are the biggest importers of LPG from the Middle East.

Middle Eastern ​LPG exports tumbled 73 percent to 419,000 barrels per day (bpd) in March from the previous month, data from analytics firm Kpler showed,

The supply shock ​drove spot premiums for propane and butane loading in April from the Gulf to record highs of $250 per metric ton to March Saudi contract price swaps on March 30, according to pricing agency Argus.

Saudi Aramco sharply raised its April official selling prices amid the supply crunch. The ​April propane price rose by $205 per ton to $750, while butane increased by $260 per ton to $800.

“Key importers such as India are actively diversifying their sourcing strategies, increasing ​procurement from the United States, Norway, Canada, and other regions alongside remaining Gulf supplies,” said Vasudev Balagopal, global head of petrochemical trading at financial services platform Marex.

ALTERNATIVE SUPPLY

To meet Asia’s shortfall, US LPG exports are expected to surge to a record 2.7 million bpd in April, with about 1.8 million bpd headed to Asia, 14 percent higher than March, preliminary Kpler ​data showed. That drove US Gulf spot terminal fees for propane and butane to a record $273.525 and $240.09 per ton, respectively, on March 19, Argus data ​showed.

“We saw some additional propane still being offered to Asia for May arrivals,” said Marex’s Vasudev.

However, Greg Bower, a broker at New Stone, said the US cannot replace the ‌Middle East fully, adding that export terminals were already operating close to capacity before the conflict.

According to US Energy Information Administration data, the country had 48.4 million barrels of ready-for-sale propane as of March 27.

Moreover, transit times from the US Gulf Coast to Asia take more than 30 days, significantly longer than a two-week voyage from the Middle East, traders said, adding to supply strains amid uncertainty over when Iran will allow the strategic Strait of Hormuz to reopen as part of a fragile ​ceasefire deal.

Last year, the Middle East ​accounted for about 48 percent of total Asian LPG imports at 1.54 million bpd, while the US sent about 39 percent or 1.26 million bpd, Kpler data showed.

LOSS IN DEMAND

Insufficient LPG supply led to demand destruction in March, analysts said.

Consultancy Rystad Energy estimated LPG demand loss from ​regional steam crackers at about 135,000 barrels per day in March from February levels, with a further 35,000 ​bpd decline expected in April and 11,000 bpd in May.

In China, propane dehydrogenation (PDH) plants, already operating at around 60 percent to 65 percent before the conflict because of poor margins, are expected to trim runs by a further five percentage points in April due to feedstock shortages, according to Rystad. Such plants product propylene, a key building block for plastics and other chemicals.

For ​cooking gas, India’s demand dropped around 205,000 bpd in March.

“The supply situation in India is ​gradually improving but shortages persist even as long-haul cargoes arrive in India from as far as Argentina and the US,” Rystad analyst Manish Sejwal said.

Rystad expects Indian LPG demand to recover from April, ​with losses narrowing by about 70,000 bpd.

Wall Street stocks rose sharply over the week and oil prices fell as a fragile truce was struck between the United States and Iran, with ceasefire talks due to start in Islamabad on Saturday.

For the week, all three major US indices advanced by more than three percent. Oil prices retreated once again on Friday. For the week, they tumbled by approximately 13 percent.

The New York Stock Exchange closed mixed for the day Friday -- the Dow Jones shed 0.6 percent, the Nasdaq gained 0.4 percent, and the broader S&P 500 index was flat, slipping 0.1 percent.

"Markets are trading on a cautious tone ahead of the US-Iran ceasefire talks," Elias Haddad of Brown Brothers Harriman (BBH) said in a note.

"For financial markets, the key issue is whether peak shipping security fear is now behind us."

Official sources say the talks in Islamabad will cover Iran's nuclear enrichment and the free flow of oil through the Strait of Hormuz.

Since the ceasefire took effect, US President Donald Trump has voiced displeasure at Iran's handling of the strategic strait, which was meant to be reopened.

"The key issue for the oil market is whether ship traffic through the Strait of Hormuz will resume," Carsten Fritsch of Commerzbank said in a note. "So far, there are no signs of this happening."

Inflation in the United States rose sharply in March, government data showed Friday, as higher energy prices due to the war hit Americans hard. Prices rose 3.3 percent from a year earlier.

White House spokesperson Kush Desai responded by saying the US economy "remains on a solid trajectory."

In Europe, London and Frankfurt closed virtually flat as Paris added 0.2 percent.

Renewed geopolitical tensions in the Middle East unsettled Bangladesh's stock market today, as the sudden collapse of the Iran–US ceasefire erased investor optimism and triggered broad-based selling across sectors.

The Dhaka Stock Exchange (DSE) witnessed a broad-based decline, with the DSEX shedding 60 points to close at 5,257. Of the 390 traded securities, 306 issues declined, 70 advanced, and 14 remained unchanged, reflecting heightened investor caution.

According to EBL Securities, the market opened sharply lower as panic selling gripped investors early in the session.

Although a brief wave of bargain hunting provided temporary support, selling pressure intensified as the session progressed, driven by fading confidence and persistent uncertainty surrounding the evolving Iran–US conflict.

Turnover also took a hit, dropping 22% to Tk776 crore from Tk991 crore in the previous session, indicating reduced participation as cautious investors refrained from taking fresh exposure.

Sector-wise, engineering stocks dominated turnover, accounting for 15.9% of the total, followed by pharmaceuticals at 12.7% and textiles at 9.3%. Despite relatively high activity in these sectors, most ended in negative territory.

Mutual funds, travel, and life insurance stocks recorded the steepest corrections, reflecting the broader risk-off sentiment. A handful of sectors, including services and tannery, managed to post marginal gains, but these advances were insufficient to offset the overall market decline.

Among individual stocks, Khan Brothers PP Woven Bag topped the turnover chart, followed by Acme Pesticides, Lovello Ice-Cream, and Dominage Steel.

On the gainers' side, Bengal Windsor Thermoplastic led the rally, while Prime Finance, Familytex, Bangladesh Industrial Finance Company (BIFC), and Generation Next emerged as the worst performers of the day.

The bearish sentiment extended to the Chittagong Stock Exchange (CSE), where both key indices closed lower. The CSCX declined by 20 points, while the CASPI fell by 44.2 points, mirroring the cautious stance of investors across the country's equity markets.

As part of efforts to stabilise the market, the government is considering retaining existing taxes and duties on fuel imports even if retail fuel prices are raised.

For instance, the government currently earns around Tk38 per litre of petrol priced at Tk120. Under the proposed approach, the tax component would not be changed even if the retail price is adjusted to Tk140, instead of rising proportionately to about Tk45.

This would effectively prevent a Tk7 increase in consumer prices. Although the move would reduce government revenue, the authorities are pursuing a strategy of keeping fuel prices slightly lower in May and June to help contain inflation.

Officials said any upward adjustment in fuel prices would add to inflationary pressure, given its wide impact on overall costs. However, keeping taxes unchanged would help limit the extent of that pressure.

Finance Minister Amir Khosru Mahmud Chowdhury has asked the National Board of Revenue (NBR) to submit an urgent report analysing the potential impact of such a move on state revenue collection.

The directive was issued yesterday at the second meeting of the Fiscal, Monetary and Exchange Rate Coordination Council for the 2025-26 fiscal year. Several senior officials told TBS that the council also discussed broader measures aimed at easing inflationary pressure in the economy.

These include instructions to reduce additional costs faced by importers at ports, measures to lower cost build-up in pricing calculations across various commodities through directives to the commerce ministry.

The council further decided to explore the creation of a large fund to revive sick and closed industrial units. The proposed fund would be formed through a combination of loans from development partners and resources from the central bank's own financing mechanisms.

The virtual meeting, chaired by the finance minister, was attended by the governor, finance secretary, secretary of the Financial Institutions Division, NBR chairman, Economic Relations Division secretary, commerce secretary, and senior finance division officials, along with other ministry representatives.

Speaking to TBS after the meeting, Commerce Secretary Mahbubur Rahman said the coordination council had decided to reduce value-added tax and import duties on essential commodities.

"No country in the world imposes such high levels of duties and taxes on essential goods. These duties and VAT rates will be gradually reduced." he said. He added that discussions also focused on preventing traders from engaging in unjustified price hikes.

No need for fuel price hike if duties unchanged

Finance officials said that more than 32% in various duties, taxes and VAT are currently imposed on imported fuel oil. The NBR collects around Tk15,000 crore annually from this sector.

Due to the conflict in the Middle East, the government is now importing fuel at nearly double the previous prices, which has also doubled the volume of revenue collection.

"The BPC and Petrobangla sell fuel and gas at prices lower than their import cost. The Energy Division has long argued that the duties, taxes and VAT imposed by the NBR on fuel imports are unjustified. However, the NBR has not moved due to concerns over revenue loss," said one finance division official.

He also mentioned that the IMF has been pressing Bangladesh to reduce subsidies. In that scenario, fuel prices would need to be raised, which would significantly increase inflation. Against this backdrop, he said keeping existing duties, taxes and VAT on fuel imports could help the public.

"Fuel prices are adjusted by the government at the end of each month. Therefore, the finance ministry has asked the NBR to submit an analysis report before the end of May, ahead of the next price adjustment, on the likely impact of such keeping taxes unchanged," said another finance official.

Fund to revive sick industries

Finance ministry officials said a large fund will be created in the next fiscal year's budget to revive closed and sick industries, a commitment reflected in the BNP's election manifesto.

To this end, the council has instructed the Economic Relations Division to seek loan assistance from the Asian Development Bank, the Asian Infrastructure Investment Bank, and the World Bank.

"The fund will be formed by combining resources from development partners with financing from Bangladesh Bank," said a ministry official.

However, amid the ongoing conflict in the Middle East, the government has not taken any decision to increase incentives to boost remittance inflows. Instead, the focus will be on simplifying remittance transfer processes and ensuring that banks can disburse funds to recipients' families as quickly as possible.

The Bangladesh Bank has been tasked with taking necessary measures in this regard.

Tk9.2 lakh crore FY27 budget

Finance officials said the ministry at the Coordination Council meeting proposed a large budget of over Tk9.20 lakh crore for FY27, as the government moves to contain inflation and create jobs.

They said higher spending will be driven mainly by global economic risks, rising subsidies and increased allocations for social protection. Additional interest payments and a planned partial salary adjustment for government employees are also contributing to the expansion of the budget.

Officials noted that total revenue mobilisation for the next fiscal year may be set at around Tk6.90 lakh crore. Of this, more than Tk6 lakh crore is expected to come from the NBR.

In the current fiscal year's original budget, the NBR was tasked with collecting nearly Tk5 lakh crore. The Centre for Policy Dialogue (CPD) has warned that the shortfall could reach Tk1 lakh crore by year-end. Despite this, the revised budget has already raised the revenue target by an additional Tk20,000 crore.

Rising subsidy burden, economic outlook

Higher global fuel prices are expected to raise subsidy requirements by Tk36,000 crore, the finance minister said on Thursday. The original allocation for gas and electricity subsidies stood at Tk42,000 crore.

Officials said the additional pressure has pushed the government to increase revenue targets.

Inflation for the next fiscal year is being targeted at 7.5%. Finance officials said easing geopolitical tensions in the Middle East and stabilising fuel prices could help bring inflation closer to the target.

The GDP growth estimate has not yet been finalised, with officials considering a range of 6.2% to 6.5%. International agencies, however, have projected Bangladesh's growth at around 3.9% for the current fiscal.

The finance minister, finance secretary and ERD secretary travelled to Washington on Friday night to attend IMF meetings. An official present at the Coordination Council meeting said discussions were concluded early due to the visit. Budget deliberations are expected to resume after their return.

In a statement to parliament on 10 April, the finance minister said budget preparations are underway amid multiple economic pressures. He said the objective is not only growth, but also a sustainable, transparent and inclusive economy, while acknowledging public expectations and inherited constraints.

Fiscal framework and financing mix

The FY26 budget was set at Tk7.90 lakh crore, later revised to Tk7.88 lakh crore following cuts in development spending and higher allocations for subsidies and operating costs.

Officials said the FY27 budget deficit is projected at around Tk2.70 lakh crore, within 5% of GDP. Of this, around Tk1.50 lakh crore is expected from domestic borrowing, while Tk1.20 lakh crore will come from external sources, largely as budget support.

The finance minister has directed the NBR to prepare a plan to raise the tax-to-GDP ratio to 10% by FY28. Measures to reduce the cost of doing business and revive closed industries were also discussed at the coordination meeting.

Spending priorities, welfare programmes

Around 67% of expenditure in the next budget is expected to go towards operating costs, while 33% will be allocated to development spending. Officials said large-scale new development projects are unlikely in the near term.

The government also plans to introduce a "Family Card" programme covering 50 lakh families, along with separate cards for farmers, fishermen and livestock producers. A youth sports initiative will provide scholarships for talented athletes aged 12 to 14.

Salary increases for public sector employees and expanded job creation commitments are expected to cost nearly Tk1 lakh crore in the next fiscal year.

The latest amendment to the labour law has sparked concern among experts and labour leaders, who warn that key provisions introduced during the interim government have been rolled back, potentially depriving many employees of benefits and protections.

The Labour (Amendment) Bill 2026, passed in the parliament on Thursday, has removed provisions that had brought officials and employees under the definition of workers, raising concerns that many will now be excluded from benefits such as gratuity, provident fund and other service entitlements.

The bill was passed in parliament by voice vote after being placed by State Minister for Expatriates' Welfare and Overseas Employment Md Nurul Haque on behalf of Labour and Employment Minister Ariful Haque Chowdhury.

The earlier amendment had been introduced through an ordinance issued on 17 November 2025 by the interim government.

Experts said the removal of officials and employees from the worker definition would leave many without access to benefits guaranteed under the labour law. They also noted that the new amendment modifies a previous provision that stated workers could not be blacklisted, replacing it with a clause that workers cannot be "unfairly blacklisted."

In addition, several fundamental rights of trade unions and collective bargaining agents have been curtailed, including their ability to file cases in court or represent workers in certain forums. Provisions related to the formation of provident funds have also been made stricter, according to experts.

Syed Sultan Uddin Ahmed, chairman of the Labour Reform Committee during the interim government, told TBS that the changes do not align with earlier commitments. "Several agreed provisions from the tripartite committee have not been included in the new amendment," he said.

He added that the committee had recommended including officials and employees under the labour law framework so they could access service benefits similar to workers. "Now these people will be deprived," he said.

Criticising the changes, Nazma Akhter, general secretary of Bangladesh Labour Congress, said the decision to exclude officials and employees is not justified. "After working for 10 to 15 years or more, they receive no benefits beyond salary. The previous inclusion should not have been withdrawn," she said, urging reconsideration.

She also opposed the revised clause on blacklisting, arguing that the issue concerns workers' rights rather than questions of fairness. "Blacklisting itself deprives workers of their rights," she said.

Nazma further warned that limiting the authority of collective bargaining agents undermines workers' representation and violates Bangladesh's commitments under international labour standards. "This is a violation of Bangladesh's commitments to the ILO Convention."

TBS attempted to contact M Humayun Kabir, additional secretary at the Ministry of Labour and Employment, for comment. However, he did not answer the call, and there was no response to a text message detailing the enquiries by the time of publication.

BKMEA hails the move

The amendment comes after the Bangladesh Knitwear Manufacturers and Exporters Association called for the removal of officials and employees from the worker definition, among other demands.

The organisation welcomed the passage of the bill, stating that earlier changes introduced ambiguity and could have created unrest in the industrial sector. It also warned that such provisions risked sending negative signals to foreign buyers.

The Dhaka Stock Exchange (DSE), the primary regulator of listed companies, has approved the transfer of 8.10 lakh shares of Shahjalal Islami Bank PLC sponsor-director Anwer Hossain Khan to Bangladesh Finance.

The DSE approved the share transfer outside of a gift transaction under Listing Regulation 47(1) (d) and other applicable laws, according to a disclosure published today (9 April).

Under this regulation, share transfers are allowed in cases of confiscation or loan default.

Based on the latest closing share price of Tk17.90 per share, the market value of the transferred shares amounts to Tk1.45crore.

The shares are to be transferred within the next 30 working days.

Anwer Hossain Khan is one of the sponsors and a former chairman of Shahjalal Islami Bank PLC.

According to the bank's 2024 annual report, he is also the chairman and managing director of Anwer Khan Modern Medical College & Hospital Limited, Modern Diagnostic Centre Limited, Anwer Khan Modern Nursing College, and Hazi Sakawat Anwara Modern Eye Hospital Limited, among others.

According to the shareholding report as of December 2025, Anwer Hossain Khan owns 3.02 crore shares, or a 2.71% stake, in the company.

In October last year, the DSE approved the transfer of 30.62 lakh shares of Shahjalal Islami Bank held by Anwer Hossain Khan to LankaBangla Finance.

In 2025, Shahjalal Islami Bank reported a sharp rise in profitability, driven by strong growth in investment income and improved operational performance, while announcing a higher cash dividend for shareholders.

According to the bank's latest financials, its consolidated net profit surged 118% year-on-year to Tk368 crore in 2025, up from Tk169 crore in the previous year.

On the back of this improved performance, the board of directors recommended a 13% cash dividend for the year, up from 10% in 2024.

The bank attributed the strong profit growth mainly to higher net investment income, increased earnings from shares and securities, and a rise in other operating income.

Improved cash flow was supported by higher investment income and increased placements with banks and financial institutions.

K&Q Bangladesh Limited has entered into a direct operator billing agreement with Robi Axiata Limited to facilitate voucher sales for digital services such as Netflix, Google Pay and other platforms, a move expected to strengthen its revenue base and accelerate growth in the digital services segment.

According to disclosures from the Dhaka Stock Exchange, the partnership will allow the company to tap into Robi's extensive subscriber network, significantly enhancing its reach in the rapidly expanding digital payments and content ecosystem.

In addition to the latest agreement, the company has been actively expanding its footprint in the digital and technology space.

Earlier this year, K&Q Bangladesh signed an agreement with Bangladesh Satellite Company Limited to act as an authorised partner and sales agent for Starlink satellite-based internet services in Bangladesh. Under this arrangement, the company will handle nationwide marketing, sales, implementation, and operational activities for the service.

Separately, the company has also entered into an Application-to-Person (A2P) aggregator agreement with Robi Axiata, enabling it to provide SMS and notification delivery services for various applications and digital platforms. These services will be offered under a license issued by the Bangladesh Telecommunication Regulatory Commission.

In the first half of the 2025-26 fiscal year, the company reported earnings per share (EPS) of Tk5.83, marking a sharp increase from Tk1.67 in the same period a year earlier. Its net asset value per share (NAVPS) stood at Tk107.55 as of 31 December 2025.

For the FY2024-25, the company posted EPS of Tk9.49, a significant jump from Tk0.67 in the previous year, reflecting a notable turnaround in profitability. The board declared a 4% cash dividend for shareholders, while NAV per share rose to Tk101.72 at the end of June 2025.

Khalilur Rahman, Bangladesh's foreign minister, said the country is pursuing a "slowly but surely" approach to strengthening bilateral relations with India, emphasising patience and incremental confidence-building following the formation of a new government.

In an interview, Rahman described the future of ties through the prism of a "slowly but surely" concept, signalling a preference for gradual progress over rapid diplomatic breakthroughs. He characterised the current atmosphere in New Delhi as one of convergence, noting that both neighbours are "willing to engage, talk and take initiatives" after Tarique Rahman assumed office, says NDTV.

He said Dhaka's strategy centres on gradual normalisation rather than accelerating negotiations, stressing the importance of "patient confidence-building" to rebuild trust and sustain long-term cooperation.

Energy cooperation has emerged as a key indicator of improving ties, Rahman said, pointing to India's support during global energy disruptions. "We have a pipeline and India is supplying diesel to Bangladesh," he said, referring to ongoing supplies during the Middle East crisis.

Water sharing and climate resilience are also expected to play a central role in future engagement. With the Ganga Water Treaty due for renegotiation later this year, Rahman described equitable water management as a "civilizational bond". "Water is finite. Ganga means life," he said, underscoring the importance of the river system.

He also highlighted shared environmental challenges, saying, "People are people. Whether it is in India or Bangladesh, we are facing exactly the same type of climate crisis," and called for a climate-resilient framework that could underpin bilateral relations for decades.

On broader strategic and economic relations, Rahman said Bangladesh's foreign policy is not a "zero-sum game". "Our relationship with other countries is not a problem," he said, referring to ties with partners such as China, which he said are driven by market forces rather than strategic alignment against India. He characterised India as a "structural presence" in Bangladesh's development, particularly in regional infrastructure and economic integration.

Rahman also highlighted the importance of people-to-people connections, citing shared cultural and geographic links, including borders and rivers. He said improving visa systems would be key to facilitating greater mobility and delivering tangible benefits for citizens in both countries.

An amendment to the Bank Resolution Ordinance has created a legal pathway for former owners to reclaim control of distressed banks currently under resolution.

The amendment specifically impacts the ongoing merger of five distressed institutions – First Security Islamic Bank, Social Islamic Bank, Union Bank, Global Islamic Bank, and Exim Bank – which were being consolidated into Sammilito Islami Bank under the previous interim government's reforms.

Under the new provision passed in the parliament on Friday, former owners can apply to the Bangladesh Bank to reacquire their shares, assets, and liabilities, potentially leading to the dissolution of the newly merged entity.

Of the five banks, four were controlled by the S Alam Group chairman and controversial businessman Saiful Alam, while Exim Bank was under the control of Nassa Group Chairman Nazrul Islam Mazumder.

Experts have criticised the amendment, warning that it undermines the credibility of banking sector reforms and effectively allows those responsible for financial distress to regain control.

Conditions for ownership recovery

The government amended the ordinance by introducing Section 18A. Under the new regulations, applicants seeking to regain control must submit a formal undertaking. This includes a pledge to repay all funds as determined by the government or the central bank, provide fresh capital, and restore financial solvency.

They are also required to settle all liabilities to depositors and creditors, pay outstanding taxes, and reconstruct risk management and compliance frameworks.

Financial terms for the recovery include an initial pay-order of at least 7.5% of the total determined amount within three months of approval. The remaining 92.5% must be paid over two years with a 10% simple interest rate.

Following approval, the Bangladesh Bank will supervise the institution for two years before a special committee conducts a final investigation into compliance, with the option to revoke approval in case of failure.

Government defends 'market solution'

Finance Minister Amir Khosru Mahmud Chowdhury described the move as a "market solution" aimed at ensuring fairness, equity, and investment protection.

He explained that the government has already invested approximately Tk80,000 crore into weak banks and may need another Tk1 lakh crore – a financial burden he described as unsustainable in the current global economic climate.

"This new arrangement places the obligation of recapitalisation and liability settlement on the applicants, reducing the pressure on the government and the Deposit Insurance Fund," the minister stated.

He added that the option remains open to any suitable party deemed fit by the central bank, not just former shareholders, and argued that keeping banks operational preserves asset value and protects employment.

Experts warn of 'credibility destruction'

The move has drawn sharp criticism from experts who were involved in drafting the original resolution framework.

Zahid Hussain, former lead economist of the World Bank's Dhaka office and a member of the interim government's banking reform task force, warned that the amendment destroys the credibility of the reform process.

"A clear roadmap has been provided for former owners to re-occupy banks that were distressed due to their own mismanagement and the siphoning of funds," he told The Business Standard.

The economist estimated that for the five merged banks, the total required payment would be roughly Tk35,000 crore. He expressed concern that the terms are so lenient that former owners could easily pay the initial 7.5% and borrow the remainder from the banking sector itself.

Uncertain future for Sammilito Islami Bank

According to Zahid, the future of Sammilito Islami Bank now rests entirely on the discretion of the returning owners. "If they choose to operate the five banks as separate entities once again, the merged institution will cease to exist."

He noted that the move sends a signal to the market that individuals responsible for financial irregularities can still return to positions of ownership.

India has further ​raised a windfall tax on exports of ‌diesel and aviation turbine fuel it imposed last month to ensure adequate domestic supply.

In a government notification on ​Saturday, India's finance ministry increased the tax ​on diesel exports to 55.5 rupees per ⁠litre from 21.5 rupees per litre, and on ​exports of aviation turbine fuel to 42 rupees ​per litre from 29.5 rupees per litre, effective immediately.

India also last month cut excise duty on petrol and diesel by ​10 rupees ($0.11).

Separately, to control a rise in airfares, ​it has also capped a monthly increase in aviation turbine ‌fuel ⁠prices for domestic airlines at 25% in April. Jet fuel accounts for up to 40% of an airline's expenses.

Global oil prices have surged past $100 ​per barrel ​as the ⁠flow of oil through the Strait of Hormuz, which serves as a conduit ​for 40% of India's crude oil ​imports, ⁠remains heavily restricted due to the US-Iran war.

India, which ranks among the top five refining nations globally and ⁠is ​also the world's third-biggest oil ​importer and consumer, relies heavily on overseas supplies.

Eastern Bank PLC (EBL) has signed a memorandum of understanding (MoU) with the Mongla Port Authority (MPA) to introduce advanced digital banking services at Mongla port.

Md Jabedul Alam, head of transaction banking at the bank’s corporate banking division, and AKM Anisur Rahman, member (engineering and development) of MPA, signed the MoU recently at Mongla port in Bagerhat, according to a press release.

The partnership aims to improve the efficiency of financial transactions at the port by implementing secure, modern and seamless digital payment and collection solutions.

Under the initiative, EBL and MPA will jointly develop a comprehensive digital ecosystem, enabling port users to carry out transactions smoothly through the bank’s digital banking platform.

Among others, Captain Mohammad Shafiqul Islam, harbour master of the MPA; Md Kamal Hossain, deputy secretary (director, traffic); Md Mahfuzur Rahman, deputy chief finance and accounting officer; Md Fazle Alam, chief audit officer; Lt Col Md Arif Billah, chief engineer (mechanical and electrical); and Mohammad Arif Chowdhury, head of cash management at EBL’s transaction banking division, were also present at the event.

Solar power is often discussed as a policy ambition in Bangladesh, one which has become more pertinent given the ongoing global energy uncertainty and price volatility.

Bangladesh’s energy security depends on how quickly renewable ambitions translate into real projects -- spearheaded by solar.

Developing around 5,000 Megawatt peak (MWp) of solar could require over Tk 35,000 crore in generation investment, excluding land and supporting infrastructure -- making bankable projects and investor confidence essential.

In Bangladesh, 1 MWp of solar capacity can generate roughly 1.4 million kilowatt-hour (kWh) annually, highlighting solar’s potential contribution to the national power supply.

International experience shows that countries can scale solar from negligible levels to 20–30 per cent of installed capacity within a decade or even faster when supported by clear policy frameworks, bankable procurement structures and coordinated infrastructure planning.

Despite repeated policy commitments and long-term energy planning, solar deployment in Bangladesh has remained limited -- and this is solely because of an incomplete implementation framework.

In several cases, projects were awarded without confirmed land access, grid interconnection or developers demonstrating the financial and technical capability required to deliver utility-scale projects.

As a result, many projects lacked the capacity to achieve financial closure or progress to construction within expected timeframes.

Solar prices are influenced by technology costs but, in Bangladesh, are primarily driven by financing conditions, land constraints, infrastructure requirements and project risks.

While concessional financing is available, the challenge is deploying it at scale. Lower financing costs require reducing project risk through bankable power purchase agreements (PPAs), strong payment security and credible project pipelines.

Institutions such as Infrastructure Development Company can play a role through blended finance and credit enhancement structures, particularly if scaled and aligned with utility-scale project requirements, while foreign exchange risk mitigation can help unlock international capital.

The transition toward competitive solar tenders represents an important step forward.

Competitive tariff auctions can deliver transparent price discovery, but only when projects are genuinely ready to build.

Poorly structured tenders can encourage aggressive bids that later prove unviable, leading to delays or cancellations.

Procurement frameworks must ensure that winning bidders have credible projects, secured sites and the capability to deliver.

Many of the challenges observed in past projects reflect gaps in readiness at the time of award.

Successful projects require key fundamentals from the outset. Developers should demonstrate secure land rights, confirm sites are dispute-free and obtain preliminary grid interconnection approval.

Financial capability should be supported by credible commitments from experienced institutions, with bid bonds and performance guarantees discouraging speculative participation.

Once a project is awarded, clear and enforceable timelines should govern each stage of development.

Power purchase and implementation agreements should be executed within three months of award, followed by financial closure withinsix months of PPA signing.

Construction should then be completed within 12–18 months, depending on project size and site conditions.

Delays at any stage should trigger defined penalties, including encashment of performance guarantees.

Without disciplined timelines, projects risk remaining in prolonged development phases without progressing to construction.

Establishing and enforcing such timelines ensures that projects move predictably from award to operation.

Land and grid access remain two of the biggest barriers to scaling solar in Bangladesh.

Utility-scale solar is inherently land intensive: every 1,000 MWp of ground-mounted capacity typically requires roughly 2,200–2,300 acres. In a densely populated country, securing suitable sites becomes a major challenge. The ‘solar park’ model offers a practical solution.

Under this approach, government agencies prepare land and supporting infrastructure such as roads, drainage and substations before leasing plots to private developers.

By addressing land and grid constraints upfront, solar parks can significantly reduce development risk, lower costs and accelerate project timelines.

Such models need not rely on upfront public funding; infrastructure costs can be recovered through land leases, developer charges or structured public–private partnerships.

In the absence of a coordinated solar park framework, transmission connectivity remains a major challenge.

Developers must construct transmission lines connecting the plant to the nearest substation at their own cost, often across considerable distances and through complex right-of-way approvals.

Once completed, these lines are transferred to the national grid operator during commissioning. This requirement can significantly increase costs and delay projects.

Targeted fiscal incentives can help accelerate investment during the early stages of solar expansion.

Policies such as tax holidays, reduced or zero import duties on solar modules, inverters and key balance-of-system components and accelerated depreciation for renewable energy assets can significantly lower capital costs.

Because much solar equipment is imported, such measures can materially improve project economics and support more competitive tariffs.

Solar expansion can also stimulate domestic industrial development and job creation.

Growing deployment creates opportunities for local manufacturing and engineering firms to participate in the renewable energy supply chain, particularly in mounting structures, electrical systems and installation services.

Over time, solar module assembly could also emerge as a viable domestic industry if deployment scales sufficiently.

Rooftop solar offers a fast-track pathway for expansion. Approximately 6,000 square metres of roof space can support around 1 MWp of solar capacity.

Large factory rooftops provide suitable space for distributed generation, while net metering and third-party PPAs can enable deployment without upfront investment.

As solar capacity grows, complementary technologies such as battery storage will help manage intermittency and support grid stability.

Bangladesh has both the demand and the opportunity to scale solar power rapidly. The challenge now is execution.

With the right implementation framework in place, Bangladesh can transform solar ambition into delivered capacity -- strengthening energy security, enabling domestic industry and high-skilled job creation and driving long-term economic growth.

The US-Israel war on Iran, before reaching a ceasefire agreement just yesterday, highlighted a longstanding vulnerability of Bangladesh – Bangladesh's only refinery, Eastern Refinery Limited (ERL), has not been significantly modernised or expanded in more than five decades.

This issue had also surfaced during the Russia-Ukraine war in 2022, when attempts to process Russian crude failed due to the refinery's outdated configuration. Despite that experience, little progress was made in upgrading its capacity.

As the Iran war disrupted supplies from the Middle East — the country's primary source of oil and gas imports, the state-run Bangladesh Petroleum Corporation (BPC) has started exploring crude options beyond Middle Eastern countries, while also seeking technical recommendations from Eastern Refinery on suitable crude specifications.

Since ERL cannot process all types of crude oil, the BPC is carefully assessing transport costs, compatibility and by-product impacts before moving ahead with imports from new sources.

Former caretaker government adviser and energy expert M Tamim said the Middle East remains the most cost-effective source due to proximity, but stressed that the planned second unit of ERL must include modern facilities capable of refining a wider range of crude types to ensure energy security during crises.

Search for alternatives intensifies

Apart from closing the Strait of Hormuz, the Middle East war also caused output cuts in the region's major energy facilities, resulting in force majeure by key suppliers for Bangladesh.

In March, shipments of crude oil from Saudi Arabia and Abu Dhabi – each carrying around 1 lakh tonnes – were cancelled. As a result, Bangladesh did not receive any crude consignments during the month. Authorities have since secured a replacement shipment from Saudi Arabia's Yanbu port for next month, though at a slightly higher cost of about $0.25 per barrel.

According to ERL officials, the refinery was originally designed to process Arabian Light crude from Saudi Arabia and Murban crude from the UAE. Heavier crude types, such as those from Russia, cannot be refined using the existing setup. With no blending facility in place, the refinery lacks flexibility to adapt to alternative sources.

To address this, ERL has analysed crude specifications from several countries – including Nigeria, Azerbaijan, Norway, Angola, and the UK – and submitted its findings to BPC. The corporation is now reviewing these options, considering both economic and technical feasibility.

BPC General Manager (Commercial and Operations) Muhammad Morshed Hossain Azad said work on alternative sourcing is ongoing, adding that maintaining a diversified supply line will be important even if the geopolitical situation stabilises.

Capacity constraints remain a major concern

Bangladesh imports between 65 lakh and 68 lakh tonnes of fuel annually, with crude oil accounting for about 15 lakh tonnes — all refined at ERL. The country also imports around 45 lakh tonnes of refined fuel, mainly diesel, from countries like India and China.

Despite rising demand, refining capacity has remained stagnant since independence. This has forced Bangladesh to rely heavily on costly refined fuel imports, increasing pressure on foreign currency reserves.

A long-delayed project to build ERL's second unit – which would double refining capacity to 30 lakh tonnes annually – has faced repeated setbacks. Although the project was first proposed in 2010 and approved in various forms over the years, it took more than a decade and a half to receive final approval.

The project, now estimated to cost around Tk31,000 crore, was approved by the Executive Committee of the National Economic Council (Ecnec) in December last year. Authorities are exploring financing options, including potential loans from external sources such as the Islamic Development Bank.

Officials say the new unit will be designed with greater flexibility to process a wider range of crude oil, addressing one of the key weaknesses of the current refinery.

Until then, Bangladesh remains exposed to global supply shocks — with limited capacity to adapt quickly when its primary fuel sources are disrupted.

A ceasefire in the Iran war will deliver badly-needed relief to economies battered by the world's worst ever energy crisis, but hopes the truce will quickly restore normal oil and gas flows from the Middle East are almost certainly misplaced.

US President Donald Trump on Tuesday agreed to a two-week ceasefire, conditional on Iran pausing its blockade ​of oil and gas shipments through the Strait of Hormuz, the narrow waterway that typically handles about one-fifth of global oil trade. Iran's foreign minister Abbas Araqchi said Tehran ‌would halt counter-attacks and guarantee safe passage for vessels transiting the strait.

How quickly the ceasefire will take full effect, however, remains unclear. Iran launched further attacks on Israel and Gulf countries shortly after Trump's announcement, underscoring the fragility of the deal. The war, now in its sixth week, has claimed more than 5,000 lives across nearly a dozen countries and badly damaged vital regional infrastructure, including oil and gas facilities.

Financial markets nonetheless welcomed the news. Japan's benchmark Nikkei jumped 5% to a one‑month high, while ​Brent crude prices tumbled roughly 13% to around $95 a barrel by 0300 GMT, as traders priced in a near-term easing of supply risks.

QUICK RELIEF VALVE

A temporary halt in fighting and the reopening of ​Hormuz would allow Middle Eastern exporters to ship significant volumes of oil that have been trapped inside the Gulf since hostilities began, offering global energy markets some ⁠immediate relief.

Around 130 million barrels of crude oil and 46 million barrels of refined fuels are currently floating on roughly 200 tankers in the region, according to data from analytics firm Kpler. Another 1.3 million tonnes ​of liquefied natural gas are also stuck on vessels awaiting safe passage.

For Asia, which relies on the Middle East for 60% of its oil and 80% of gas imports, the disruption has been particularly severe. Several countries ​have been forced to curb industrial output and ration fuel supplies following the abrupt cut in deliveries. The release of these trapped volumes would therefore ease the most acute pressure on Asian economies and energy systems.

But clearing the backlog of cargoes is only part of the problem. Getting tankers out of the Gulf is one thing; persuading shipowners and charterers to send vessels back in is quite another.

The unprecedented blockade of Hormuz has caused severe disruption to global shipping markets by sharply reducing ​tanker availability, pushing freight rates to record highs. Many shipowners are likely to remain extremely cautious about re-entering the region during what is, at best, a shaky and time-limited ceasefire, fearing their vessels and crews could ​once again become trapped if hostilities resume.

That caution would in turn constrain any attempt to revive normal export flows.

OIL PRODUCTION TO LAG

Middle East oil exports via Hormuz collapsed by around 13 million barrels per day (bpd) in March, equivalent to ‌roughly 13% of ⁠global consumption, according to Kpler. While Saudi Arabia and the United Arab Emirates managed to divert some shipments through alternative routes, the disruption forced regional producers to shut in an estimated 7.5 million bpd of output in March, including 2.8 million bpd in Iraq and 1.9 million bpd in Saudi Arabia, the world's largest exporter, according to US Energy Information Administration estimates.

As matters stand, much of that production is unlikely to come back quickly.

Restarting oilfields, especially at the scale found in the Middle East, is a complex, time-consuming process that can take weeks at best. National oil companies such as Saudi Aramco and the UAE's Adnoc are likely to hesitate before ​restoring output without greater clarity on the durability of ​the ceasefire.

Moreover, refineries, fields and export terminals damaged ⁠by missile and drone strikes will require months, and in some cases years, to repair. The region also faces a shortage of specialised equipment and skilled labour, which could further slow restoration efforts.

Crucially, without confidence that sufficient tankers will be available to load crude oil, diesel and jet fuel, producers will be reluctant to risk ​restarting fields and refineries only to find they cannot move the output.

LASTING SCARS

Were Washington and Tehran to agree on a permanent cessation of hostilities that ​led to the full reopening ⁠of Hormuz, oil and gas trade could eventually return to more normal operations. But even under that more optimistic scenario, the war is likely to leave lasting scars on global supply.

In the medium term, the oil market could remain 3 to 5 million bpd tighter over the next few years than pre-war expectations, due to damage to export infrastructure and the need to rebuild depleted inventories, according to Saul Kavonic, head of energy research at MST Marquee.

Unless the warring ⁠sides strike a ​firmer peace deal, the two‑week ceasefire now taking shape risks being little more than a short-term patch in what has become ​an unprecedented global energy crisis.

An important objective of income tax policy is to strengthen long-term savings, enhance future financial security, and advance the social protection of taxpayers. In line with this objective, investments and donations in fourteen (14) specified sectors have been made eligible for tax rebate, subject to Section 78 of the Income Tax Act, 2023 and Part III of the Sixth Schedule.

Under the prevailing provisions, a resident normal person taxpayer and a non-resident Bangladeshi (NRB) normal person taxpayer may claim a tax rebate of up to 3% of total income against the tax payable in a tax year, provided the investment or donation meets the prescribed conditions, subject to an overall maximum eligible amount of Tk 1,000,000.

While this incentive is positive in principle, certain inconsistencies and implementation risks warrant a review of both the eligible investment limits and the investment-eligible sectors in the forthcoming national budget.

The tax rebate facility is intended to encourage responsible savings and long-term financial resilience. However, this objective can be undermined if the incentive structure does not sufficiently account for risk management and investor protection.

At present, there are explicit caps on investments in comparatively safer instruments such as government securities, DPS, and life insurance. For instance, investments up to Tk 500,000 in government securities, Tk 120,000 in DPS accounts, and up to 10% of the sum assured in life insurance are treated as eligible for tax rebate. These caps reflect an intent to direct incentives toward safer savings instruments, thereby keeping risk relatively controlled.

In contrast, there is no clearly defined tax-related cap for investment in the stock market under the tax rebate facility. This creates an evident policy imbalance: stricter limits apply to safer instruments, while comparatively higher-risk market participation may be incentivized without equivalent safeguards.

In practice, a segment of ordinary taxpayers enters the stock market primarily to maximize tax rebate benefits. Yet the knowledge, analytical capacity, access to timely information, and risk tolerance required for equity market participation vary significantly across taxpayers.

Consequently, uninformed or inadequately assessed investments increase the likelihood of capital loss, which may directly conflict with the stated objective of strengthening future security.

This contradiction is material. The tax rebate is not merely a mechanism of tax reduction; it is a policy instrument that influences taxpayer financial behavior. If the incentive structure unintentionally encourages participation in higher-risk instruments without appropriate protection measures, it may lead to adverse outcomes, reduced household savings, heightened financial stress, and weakened long-term security.

Recent market-related events have further affected investor confidence. Developments such as restructuring decisions in the financial sector, uncertainty regarding shareholder outcomes in certain institutional changes, and the closure of some finance companies have heightened perceived risk among general investors.

In an environment of reduced trust, ordinary investors are more likely to be influenced by short-term signals and informal information channels, and they often lack effective institutional protection during periods of market volatility.

Most importantly, taxpayers who invest in the stock market for the purpose of tax rebate currently lack a visible and effective risk mitigation or protection framework. A tax rebate does not safeguard invested capital if an issuer becomes insolvent or if the market experiences significant decline.

Therefore, a policy designed to promote future security may inadvertently expose ordinary taxpayers to capital loss, raising concerns regarding both the practicality and fairness of the incentive design.

In view of the above, it is submitted that the National Board of Revenue (NBR) may consider redefining the eligible investment limits and the scope and conditions of eligible sectors under the tax rebate facility in the forthcoming budget 2026-27.

Proposed policy measures:

Increase the investment tax rebate ceiling
Raising the ceiling from Tk 10 lakh to Tk 20 lakh signals a forward-looking, investor-friendly policy shift, encouraging greater participation in formal savings and long-term financial planning.

Rational enhancement of limits for safer savings instruments
Existing caps for safer instruments may be reviewed and rationally increased. For example, the maximum eligible investment limit may be raised to Tk 2,000,000 for government securities and Tk 360,000 for DPS accounts. Such adjustments would encourage secure savings behavior and reduce the incentive-driven shift toward higher-risk instruments.

Establish a protection framework for tax-rebate-eligible stock market investments
A defined protection mechanism should be introduced for the rebate-eligible portion of stock market investments. Coverage or compensation in qualifying events such as issuer insolvency may be considered. Without such a framework, encouraging ordinary taxpayers into higher-risk instruments raises concerns of equity and fairness.

Adopt a risk-adjusted incentive structure
A balanced policy is required so that taxpayers are not compelled to concentrate on risk-prone instruments to maximize rebate benefits. Incentives should reflect both risk and protective safeguards to align with broader objectives of social protection and long-term security.

Treat dividend withholding as final tax
To enhance compliance simplicity and transparency, tax deducted at source (TDS) on dividends may be considered as final tax settlement, subject to legislative alignment. This would reduce administrative complexity and provide certainty to taxpayers.

Implement an annual investment awareness campaign (January–March)
A structured national campaign should be undertaken annually to improve taxpayer understanding of investment options, risks, and informed decision-making. Improved awareness would support planned participation and contribute to meeting short-term financing needs through stable instruments.

The tax rebate facility is an important policy tool to promote savings, strengthen future security, and advance social protection. Accordingly, the design of eligible limits and sectors should incorporate risk awareness, protection measures, and a pragmatic incentive balance.

The proposed measures would support safer long-term savings among ordinary taxpayers, reduce undue risk-taking in equity markets driven primarily by tax incentives, and improve alignment between the incentive framework and its intended policy objectives.

Bangladesh’s foreign exchange (forex) market remains stable and there is no immediate pressure to devalue the Taka, according to a recent assessment by Bangladesh Bank.

The central bank said despite some media reports suggesting a possible devaluation, the supply and demand for foreign currency are currently balanced.

As of April 6, 2026, the banking sector holds around $3.9 billion in foreign currency liquidity, up from $2.3 billion at the end of February 2026.

Cash holdings of foreign currency in banks also rose slightly, from $47.6 million on February 26 to $49 million by April 6.

Bangladesh’s foreign exchange reserves currently stand at approximately $34.35 billion.

Central bank officials noted that reserves could have approached $36 billion if Bangladesh Bank had actively purchased dollars to maintain market liquidity.

Notably, the central bank has not bought any dollars from the market over the past month, even though banks’ Net Open Position (NOP) reached about $1 billion—well above the usual $600–700 million threshold that typically prompts such purchases.

The market stability is supported by a surge in remittance inflows.

In March 2026, Bangladesh received $3.775 billion in remittances—the highest for any single month to date. This trend has continued into April, with $660 million received in the first six days, a 20.5 percent increase compared to the same period last year.

Foreign payments continue to be regular and well-managed.

In the past month, Bangladesh settled $1.37 billion in Asian Clearing Union (ACU) bills. Additionally, around $180 million in government foreign debt has been repaid recently.

The central bank stated that the forex market is operating under normal mechanisms, without significant value-based pressure on the dollar. Strong remittance flows and disciplined market behavior continue to ensure a secure foreign exchange environment.

The Real Estate and Housing Association of Bangladesh (Rehab) has requested the opportunity to invest undisclosed money (black money) into the country's housing sector at a lower tax rate and without any questioning of the source.

The proposal was presented today (8 April) during a pre-budget discussion held at Agargaon in the capital.

Md Wahiduzzaman, president of Rehab, and Liakat Ali Bhuiyan, vice president of Rehab, highlighted the current state of the sector during the session.

In a written statement, the organisation urged "reintroducing the previous provision in the Income Tax Ordinance stating that no authority shall raise any questions regarding the source of funds for general buyers when purchasing flats."

Liakat Ali Bhuiyan, vice president of the organisation, stated, "Expatriates often do not provide a declaration after sending money, which then becomes undeclared or 'black money.' If they are not allowed to buy flats with this money, the capital is being siphoned abroad."

In response, NBR Chairman Abdur Rahman Khan said, "We have been in this culture for 55 years; we will not remain in it anymore."

Highlighting that it is now very easy to send money from abroad and that the government even provides incentives for using formal channels, he added, "Therefore, expatriates will whiten their money by paying taxes at the regular rate. It cannot be addressed in any other way."

In the 2020-21 fiscal year, the government introduced a provision allowing the investment of undisclosed money in the housing sector without any questions from authorities.

At that time, while general buyers paid up to 30% tax, the tax for investing black money was only 10%.

This provision faced widespread criticism, leading the government to gradually move away from this path.

Currently, there is no opportunity for a reduced 10% tax rate in the housing sector. Investors must pay the regular tax rate plus a penalty on that tax.

Additionally, the Anti-Corruption Commission (ACC) or any other government agency retains the right to question the source of the invested funds.

In addition to the demand regarding undisclosed money, Rehab's proposal included reducing existing registration costs for flat or apartment sales as well as providing special incentives to develop a secondary market for housing.

The World Bank projects lower economic growth for Bangladesh in the current fiscal year, stating that 12 lakh poor people will remain below the poverty line mainly due to the impact of the US-Israel war on Iran.

Today, the multilateral lender published its Bangladesh Development Update for April, a bi-annual publication of the World Bank.

Poverty and welfare outcomes deteriorated over 2022–25, driven by limited creation of productive jobs, weak labour income growth, and elevated inflation that reduced the poverty-reducing impact of growth, the lender said in its report.

Bangladesh’s national poverty rate is projected to have risen for a third consecutive year, increasing from 18.7 percent in 2022 to 21.4 percent in 2025.

Prior to the conflict in Middle East, about 1.7 million people were projected to get out of poverty this year, but due to conflict, now only 0.5 million people can exit poverty.

At the $3 international poverty line, an additional 1.4 million people are projected to have fallen into poverty over the same period, it added.

“A recovery projected for 2026 is now at risk — the Middle East conflict is expected to push an additional 1.2 million people below the poverty line, offsetting much of the projected improvement.”

The conflict is likely to materially affect Bangladesh’s economy, compounding existing vulnerabilities such as elevated inflation, financial sector struggles, constrained policy space, and weakened confidence.

Higher import costs, weaker exports, and falling remittances would add pressure to the current account balance, while rising energy prices and exchange rate pressures would further fuel inflation. Higher energy subsidies would also squeeze fiscal space.

Addressing these risks demands a coherent stabilisation strategy — backed by structural reforms — to build buffers, restore confidence, revive investment, and put growth on a sustainable footing.

The World Bank has downgraded Bangladesh’s near-term outlook, revising real GDP growth for FY26 down to 3.9 percent from the previous projection of 4.6 percent in January 2026.

The downward adjustment reflects the combined impact of the ongoing Middle East conflict and persistent domestic macroeconomic challenges, including elevated inflation, weak investment, and financial sector vulnerabilities.

Inflation is expected to moderate compared to FY25 but remain elevated due to higher import and energy costs linked to the conflict.

The United Kingdom’s visiting trade envoy, Baroness Rosie Winterton of Doncaster, has called on Bangladesh to increase exports to her country utilising the Developing Countries Trading Scheme (DCTS), which offers duty-free access.

During a meeting with Commerce Minister Amir Khosru Mahmud Chowdhury at the Secretariat yesterday, she pointed to scope for increasing exports beyond ready-made garments, including processed foods, seafood, light engineering and leather goods.

She also encouraged Bangladesh to make use of approximately £2 billion in export credit facilities available under UK Export Finance for increased infrastructure and other investments, according to a commerce ministry press statement.

During the meeting, both sides agreed to reactivate the Bangladesh–UK Trade and Investment Dialogue, the statement adds.

The DCTS, which replaced the UK’s Generalised Scheme of Preferences, came into force on 19 June 2023. Under the scheme, the UK cuts tariffs, removes conditions and simplifies trading rules for 65 developing countries.

The scheme heavily benefits UK businesses and consumers by reducing the import cost of thousands of products from around the world. Importers enjoy zero percent import tariff on 99.8 percent of products from 47 eligible least developed countries (LDCs), including Bangladesh, under the scheme’s Comprehensive Preferences tier.

The UK has confirmed it will maintain duty-free access for Bangladeshi goods under DCTS even after Bangladesh graduates from LDC status.

During the meeting with the UK envoy, Minister Chowdhury said the government has been working to improve the investment climate, cut logistics costs and ease doing business.

He said Bangladesh is pursuing free trade agreements and economic partnership agreements with several countries and intends to deepen trade ties with the UK.

The UK is Bangladesh’s third-largest export destination after the United States and Germany.

In the last fiscal year 2024-25, Bangladesh exported $4.62 billion worth of goods to the European country, accounting for 9.57 percent of total exports, according to data from the Bangladesh High Commission in London.

The major exportable items include ready-made garments, frozen food, IT engineering, leather and jute goods, and bicycles, with knitwear and woven garments accounting for 90 percent of total exports.

Gold prices climbed ‌to a nearly three-week high on Wednesday as markets reassessed near-term risks after US President Donald Trump agreed to suspend bombings and attacks on Iran for two weeks, easing fears of energy-driven inflation.

Spot gold ​was up 2.5 percent at $4,819.52 per ounce, as of 0726 GMT. Earlier in the session, ​bullion rose more than 3 percent to its highest level since March 19. US gold futures for June delivery gained 3.4 percent to $4,845.30.

Trump said Washington had agreed to a two-week ​pause in attacks and received what he described as a “workable” 10-point proposal from Iran as a basis for negotiations.

His comments ​followed earlier warnings that Tehran must reopen the Strait of Hormuz or risk US retaliation on its civilian infrastructure.

“People went into this session thinking that escalation was very likely, but the announcement of a two-week ​truce kind of upended that expectation and that was gold positive,” said Nicholas Frappell, ​global head of institutional markets at ABC Refinery.

Iran’s Supreme Security Council said negotiations with the United States would begin ‌on ⁠April 10 in Islamabad after it submitted its proposal via Pakistan, adding that talks did not signal an end to the war.

Meanwhile, rising energy prices could fuel inflation and complicate central banks’ interest rates decision.

While gold is often seen as a hedge against inflation and uncertainty, its appeal tends to weaken ​in a high-interest-rate environment ​as it offers ⁠no yield.

Markets are now awaiting minutes of the Federal Reserve’s March meeting later in the day.

Gold, which began the year on a strong note, ​has fallen more than 8 percent since the Iran war erupted on ​February 28.

“This ⁠is a knee-jerk relief rally and it remains to be seen if Iran complies. For gold, the 200 day-moving-average at $4,930 and then $5,000 will be key hurdles. Similarly, $80-$81 is a important level for ⁠silver,” ​independent metals trader Tai Wong said.