Gold prices ticked down on Wednesday, as investors weighed the ‌risk of a more hawkish US Federal Reserve policy stance, with high oil prices increasing concerns over renewed inflation pressures.

Spot gold fell 0.4 percent at $4,986.79 per ounce as of 0915 GMT. US ​gold futures for April delivery fell 0.3 percent to $4,990.70.

“Investors are worried about rates ​staying ‘higher-for-longer’ due to elevated energy prices ... the longer the Iran conflict goes on, the more likely that scenario,” making non-yielding gold less attractive, ​said Jamie Dutta, market analyst at Nemo.money.

The Middle East conflict is in its ​third week, as Iran targeted Tel Aviv with missiles in what it said was retaliation for Israel’s assassination of Iran’s security chief Ali Larijani, Iranian state television reported on Wednesday.

Brent crude oil ​prices eased slightly, but held above $100 per barrel, as escalation in the Iran conflict ​and the ongoing closure of the Strait of Hormuz offset some relief to supply concerns.

Elevated oil prices ‌add to inflationary pressures by pushing up transport costs. While gold is viewed as a hedge against inflation and uncertainty, high interest rates curb its appeal by raising the cost of holding bullion and boosting returns on yield-bearing assets.

The Fed is widely ​expected to hold ​rates steady for ⁠a second straight meeting when it announces its policy decision later in the day.

Investors are also awaiting remarks from Fed chair Jerome ​Powell to assess the central bank’s policy view for the ​rest of ⁠2026, with futures markets seeing only one quarter-percentage-point rate cut this year, in September, and another cut in late 2027.

“Long-term drivers like central bank buying, stagflation risks and ⁠diversification ​demand still remain. That should mean higher (gold) prices ​by end of 2026,” Dutta added.

The US Treasury on Friday temporarily lifted sanctions on Iranian oil already loaded onto vessels, in Washington's latest step to stem a supply crisis over the Middle East war.

The authorization allows for the delivery and sale of Iranian crude oil and other petroleum products loaded onto ships before March 20, and will last through April 19, the Treasury said in a statement.

The move by the Office of Foreign Assets Control, which Treasury Secretary Scott Bessent had said Thursday was under consideration, follows a similar lifting of sanctions on Russian oil at sea.

Iran's de facto blockade of the Strait of Hormuz, through which 20 percent of the world's oil and gas normally flows, and the numerous attacks on energy infrastructure in the Middle East, have sent crude oil prices soaring.

Bessent described the move in a statement Friday as a narrowly tailored, short-term authorization that follows President Donald Trump's intention to "maximize the flow of energy to the world" and ensure market stability.

"At present, sanctioned Iranian oil is being hoarded by China on the cheap," Bessent said in a statement.

"By temporarily unlocking this existing supply for the world, the United States will quickly bring approximately 140 million barrels of oil to global markets, expanding the amount of worldwide energy and helping to relieve the temporary pressures on supply caused by Iran."

Tehran, however, said Friday it had no surplus crude oil to offer to international markets.

"Currently, Iran basically has no surplus crude oil left on the water or for supply in other international markets, and the US treasury secretary's statement is solely aimed at giving hope to buyers," Iranian oil ministry spokesman Saman Ghoddoosi wrote on X.

The Treasury's authorization on Friday does not apply to deliveries of oil to Cuba, North Korea or Russian-occupied areas of Ukraine.

Oil markets ended higher Friday, although they remained below the $120-per-barrel threshold which has been approached multiple times since the conflict began three weeks ago.

A barrel of North Sea Brent crude gained 3.26 percent to $112.19. Its US counterpart, the traditionally cheaper West Texas Intermediate (WTI), rose 2.27 percent to $98.32.

Oil prices fell by 7% today (23 March) after US President Donald Trump said he would postpone any military strikes against Iranian power plants for five days after constructive talks, hours ahead of a deadline that threatened further escalation in the conflict now in its fourth week.

Brent crude futures were down 9.72% at $101.28 a barrel at 1254 GMT after sliding as much as 14.5% to a session low of $96. US West Texas Intermediate was down almost 8.9% at $89.49 after losing 14.2% to a session low of $84.37.

Prices gradually pared some losses after the steep initial slide after Iran's Tasnim ⁠news agency reported that no talks were under way between the US and Iran.

The US President had warned on Saturday that Iranian power plants would be destroyed if Tehran failed to "fully open" the Strait of Hormuz to all shipping within 48 hours, setting a deadline of around 7:44 p.m. EDT (2344 GMT) on Monday.

His comments sparked threats of retaliation from Iran's Revolutionary Guards, which said they would attack Israel's power plants and those supplying US bases across the Gulf region if Trump followed through with his threat to "obliterate" Iran's power network.

The war has damaged major energy facilities in the Gulf and nearly halted shipping through the Strait of Hormuz, which handles about 20% of global oil and liquefied natural gas flows.

Analysts have estimated a loss of 7 million to 10 million barrels per day of Middle East oil production.

The crisis in the Middle East is worse than ‌the two ⁠oil shocks of the 1970s put together, Fatih Birol, executive director of the International Energy Agency, said on Monday.

"Oil sentiment may lurch on threats and rhetoric in the near term, but its more durable direction will continue to be shaped by the state of Middle East oil flows," said Vandana Hari, founder of oil market analysis provider Vanda Insights.

Iraq has declared force majeure on all oilfields developed by foreign oil companies, three energy officials said, while oil production at ⁠Basra Oil Company has been cut to 900,000 bpd from 3.3 million bpd, Iraqi Oil Minister Hayan Abdel-Ghani said in a ministry statement.

The supply crunch has led to a temporary waiving of US sanctions on Russian and Iranian oil already at sea. Indian refiners plan to resume buying Iranian oil while refiners elsewhere in ⁠Asia are examining such a move, traders told Reuters.

Meanwhile, Russia's Baltic Sea port of Ust-Luga resumed oil loadings after a drone attack alert was lifted, industry sources said, while neighbouring Primorsk remained shut after air strikes, adding to global shortages.

Libya's El Feel oilfield has been in shutdown since ⁠Thursday after state oil company National Oil Corporation (NOC) used its pipeline to transport crude from the Sharara field after its pipeline was damaged by fire, two El Feel engineers said.

Production is expected to resume in a week to 10 days, one of the engineers said.

The war in the Middle East could see the world face its worst energy crisis in decades, International Energy Agency chief Fatih Birol warned on Monday (23 March), describing the situation as "very severe".

"Many of us remember the two consecutive oil crises in the 1970s... at that time, in each of the crises, the world has lost about five million barrels per day, both of them together, 10 million barrels per day," Birol told the National Press Club in Australia's capital.

"As of today, we lost 11 million barrels per day, so more than two major oil shocks put together," he said.

The Bangladesh Securities and Exchange Commission (BSEC) has launched investigations into four capital market intermediaries over allegations of serious irregularities, in a move aimed at protecting investors and ensuring market stability.

Through separate orders, the regulator has initiated formal enquiries into NRBC Bank Securities Limited, Premier Leasing Securities Limited, Green Delta Securities Limited, and LankaBangla Investments Limited, operating as a merchant bank.

Four enquiry committees were formed on 11 March to conduct the investigations.

BSEC director and spokesperson Abul Kalam told TBS that the Commission had identified multiple inconsistencies in the operations of these firms, particularly relating to negative equity, margin lending practices, financial reporting, and corporate governance.

He said such irregularities could increase market risks and harm general investors, prompting the regulator to take action. The Commission will take legal measures after reviewing the enquiry findings, he added.

Separate officials have been assigned to each investigation. The probe into NRBC Bank Securities will be led by Deputy Director Md Rafiqunnabi and Assistant Director Muhammad Sadequr Rahman Bhuiyan.

Additional Director Md Ohidul Islam and Assistant Director Md Maruf Hassan will investigate Premier Leasing Securities, while Additional Director (Legal) Muhammad Ziaur Rahman and Assistant Director Amit Kumar Saha will examine LankaBangla Investments.

Additional Director Umme Salma and Assistant Director Md Motiur Rahman have been tasked with investigating Green Delta Securities.

The commission has directed that all enquiry reports be submitted within 60 working days.

The allegations

One of the key focus areas of the investigations is whether any of the firms declared or facilitated cash dividends despite having negative equity or unrealised losses.

Under market rules, such actions may mislead investors and conceal a company's true financial condition.

In particular, NRBC Bank Securities and LankaBangla Investments will be examined to determine whether they made or supported such dividend decisions.

The BSEC has also raised concerns that some firms may have misreported or concealed negative equity data in regulatory filings. In the case of NRBC Bank Securities, allegations of systematic misreporting and data manipulation are under scrutiny.

Premier Leasing Securities is accused of classifying receivables from clients as assets without maintaining adequate provisioning, potentially understating financial risks in its disclosures.

A common allegation against all four firms is the failure to maintain sufficient provisions against negative equity and unrealised losses within prescribed timelines, raising concerns over their financial stability.

In the case of Green Delta Securities, the Commission will closely examine the methodology used in calculating negative equity. Issues include capitalising prior-year interest into principal, mismatches between principal and interest figures, and the absence of necessary provisions.

Wafi Shafique Menhaz Khan, CEO of Green Delta Securities, said the matter is a routine issue from the regulator.

"We have received the letter and are cooperating with the Bangladesh Securities and Exchange Commission in the investigation," he told The Business Standard. "The violations identified by the Commission regarding negative equity are very minor in nature. The Commission has also conducted a similar enquiry earlier," he added.

The investigations will also examine margin lending practices across the firms, including whether loans exceeded permissible exposure limits and whether margin discipline was bypassed.

There are allegations that cash accounts were converted into margin or negative equity accounts without proper authorisation. In some cases, margin accounts may have been opened without client consent or formal agreements.

The BSEC has further alleged that certain firms conducted transactions involving highly speculative shares through negative equity accounts, as well as illegal block and bulk transactions in violation of regulatory rules.

Such activities – particularly in NRBC Bank Securities and Premier Leasing Securities – will be examined to determine whether they were used to create artificial demand or manipulate share prices.

In LankaBangla's case, it faces additional scrutiny over specific financial reporting issues, including the use of "interest suspense" accounting and whether such figures were properly reflected in its financial statements.

The firm is also accused of failing to recognise around Tk109.73 crore in interest payable to LankaBangla Finance Limited, which may have led to an overstatement of profits and retained earnings.

Iftekhar Alam, CEO of LankaBangla Investments, did not respond to phone calls and messages regarding the matter.

Another key aspect of the investigations will be to assess the role and intent of senior management, including chief executives, managing directors, and board members, in relation to the alleged irregularities.

According to the BSEC, weaknesses in corporate governance may have allowed such practices to persist.

Market insiders said the investigations could play an important role in restoring discipline in the capital market, where concerns over negative equity, margin lending practices, and weak enforcement have persisted.

The move is widely seen as a strong signal from the regulator against non-compliance and governance failures in the market.

Mamun Agro Industries, currently listed on the SME platform on the Dhaka Stock Exchange, has formally sought enlistment on the main board of the bourse, citing compliance with regulatory criteria, including paid-up capital exceeding Tk50 crore and more than three years of trading history.

Confirming the development, Company Secretary Muhammad Imdadul Haque told TBS that the firm had completed all necessary requirements before submitting its application to the bourse recently.

The company's move follows an earlier decision by its management and board in April last year to pursue an upgrade. Subsequently, shareholders approved the plan at an extraordinary general meeting held in mid-June, in line with regulatory provisions.

A DSE official said the exchange would now review the company's application and supporting documents, adding that a final decision on the transfer to the main board would be taken by its board upon completion of the evaluation.

Under the Qualified Investor Offer rules for small-cap firms, companies must apply for main board listing once their paid-up capital reaches at least Tk50 crore and they have been listed on the SME platform for a minimum of three years. Mamun Agro meets these conditions, with its paid-up capital standing at Tk52.50 crore against an authorised capital of Tk100 crore.

Operating in the pharmaceutical and chemical segment, the company manufactures and imports agro-products, including insecticides, fungicides, herbicides, fertilisers, pesticides and seeds for the domestic market. It raised Tk10 crore from the capital market before its SME listing in 2022.

According to its latest financial report up to June 2025, the company's total assets stood at Tk111.17 crore, largely comprising current assets such as trade receivables of Tk28 crore, inventories and advances. Non-current assets amounted to Tk38 crore, including Tk36 crore in property, plant and equipment.

Its current liabilities totalled Tk25.57 crore, of which Tk16.96 crore were short-term loans.

In the 2024-25 fiscal year, Mamun Agro reported a modest rise in revenue to Tk57.35 crore and a profit of Tk6.05 crore. Revenue from seeds increased to Tk26.69 crore from Tk25.04 crore a year earlier, while pesticide sales declined to Tk30.65 crore from Tk31.88 crore.

The company's board recommended a 10% dividend for general shareholders – comprising 5% cash and 5% stock – alongside a 5% bonus share for sponsor-directors for FY25. However, the stock dividend remains subject to approval from the Bangladesh Securities and Exchange Commission.

The company was supposed to pay Tk1.75 crore as a dividend to its general shareholders.

The BSEC allowed the issuance of the stock dividend, but due to the non-holding of the annual general meeting, the dividend has yet to be disbursed.

Firstly, it declared AGM for 31 December last year, later, it fixed AGM for 25 February.

On 25 February, through a disclosure, it postponed the AGM as it had not received permission yet from the High Court for non-compliance of Companies Act, 1994.

The firm said it is in the process of obtaining the necessary court approval and will announce a revised AGM date once clearance is received.

Remittance inflows to Bangladesh reached $2.2 billion in the first two weeks of March 2026, according to data from Bangladesh Bank.

The total includes inflows through state-owned, specialised, private and foreign commercial banks.

State-owned commercial banks brought in $372.49 million, with Agrani Bank leading the group at $164.52 million. Janata Bank followed with $129.92 million, while Sonali Bank contributed $63.08 million.

Specialised banks received $272.88 million, entirely through Bangladesh Krishi Bank.

Private commercial banks accounted for the largest share, bringing in $1.55 billion. Islami Bank Bangladesh topped the list with $395.29 million, followed by BRAC Bank with $228.24 million and Trust Bank with $162.53 million.

Foreign commercial banks contributed the least, with a total of $4.54 million. Standard Chartered Bank led this category, bringing in $3.37 million.

The UN Committee for Development Policy (UN CDP) is preparing a "crisis assessment" report, evaluating Bangladesh's request to delay graduation from the Least Developed Country category by three years, which is expected to be released within March, according to officials from the Economic Relations Division (ERD).

The officials said the committee will examine whether Bangladesh is facing an actual economic or structural crisis. If the CDP finds evidence of such a crisis, it may recommend extending the country's LDC graduation by three years. The recommendation would then be forwarded to the UN Economic and Social Council for consideration.

Proposals of this nature are usually approved through consensus within the economic council. However, if any member state vetoes, the matter could be put to a vote. Officials in the economic relations said the government has already asked the foreign ministry to begin diplomatic outreach and lobbying efforts to secure support from UN member states for the proposed delay.

A CDP delegation may visit Bangladesh in April and they are expected to present the findings of a readiness study conducted earlier at Bangladesh's request. However, officials said the visit will not directly influence the final decision, as the crisis assessment report will be the main factor.

The final decision could come in September during the UN General Assembly session. If the proposal is approved at that stage, Bangladesh will get three more years before formally graduating from the LDC.

For now, policymakers keep an eye on the upcoming assessment report, as its recommendations will determine the next steps.

However, a high-level meeting of the government on LDCs is scheduled to be held on 5 April, with the finance minister in the chair, where the "Crisis Assessment" report will be evaluated.

Under the current schedule, Bangladesh is set to graduate from the LDC group on 24 November this year. The third and final review process ahead of graduation is already underway.

Soon after taking power, on 18 February, the government sent a letter to CDP Chair José Antonio Ocampo seeking a three-year deferral of the graduation until November 24, 2029.

In the letter, Bangladesh noted that although it continues to meet the three graduation criteria – gross national income per capita, the Human Assets Index, and the Economic and Environmental Vulnerability Index — the five-year preparatory period has been severely disrupted by a series of global and domestic shocks.

The government cited the lingering impacts of the COVID-19 pandemic, the Russia-Ukraine war, tensions in the Middle East, tight global financial conditions, and the slow recovery of international trade.

On the domestic front, it highlighted irregularities in the financial sector, the change in government following the July 2024 uprising, and the ongoing pressure of hosting displaced Myanmar nationals.

According to the letter, these shocks have led to macroeconomic instability, slower GDP growth, high inflation, and a decline in both public and private investment. It also pointed to mounting pressure on foreign exchange reserves, reduced imports of capital machinery and raw materials, and slower job creation due to weakened investment.

Against this backdrop, the government said its policy focus had shifted toward short-term stabilisation and crisis management, preventing effective utilisation of the preparatory period.

The letter also raised concerns about post-graduation trade risks, including the potential loss of preferential market access for ready-made garment exports to the European Union and the risk of possible countervailing duties from the United States.

Considering the crisis, Bangladesh has requested a three-year extension to stabilise the economy and complete priority actions under its Smooth Transition Strategy.

Officials added that beyond the issues mentioned in the letter, the ongoing conflict across the Middle East could pose additional risks for Bangladesh. Rising military tensions involving the United States, Israel, and Iran have heightened instability in the region.

A prolonged conflict could fuel inflation and disrupt macroeconomic stability, further strengthening the case for deferring LDC graduation by three years.

Stakeholders warn that extended tensions among the US, Israel, and Iran could exert multidimensional pressure on Bangladesh's economy. There are concerns over rising energy import costs, given the country's heavy reliance on oil and gas imports from the Middle East. Escalating conflict could drive up global energy prices, increasing electricity generation and transportation costs.

Additionally, a large number of Bangladeshi workers are employed in countries such as Saudi Arabia, Qatar, Oman, and the United Arab Emirates. Heightened regional instability could shrink labour markets and create income uncertainty.

There are also fears of increased transportation costs for exports. Rising tensions in the Red Sea or the Strait of Hormuz could push up marine insurance and shipping costs, affecting key export sectors, including ready-made garments. Higher energy and import costs would also increase demand for US dollars, putting further pressure on foreign exchange reserves, experts say.

The Cabinet today (17 March) approved Bangladesh's proposal to join the 'Investment Facilitation for Development Agreement (IFDA)' under the plurilateral Joint Statement Initiative of the World Trade Organization (WTO).

The decision was made at a Cabinet meeting held at the Secretariat, chaired by Prime Minister Tarique Rahman.

Cabinet Secretary Nasimul Ghani told reporters that the agreement aims to facilitate foreign direct investment (FDI) in Bangladesh.

He said the pact does not impose any new obligations regarding market access or investor-state dispute settlement. Instead, it seeks to enhance transparency in investment procedures, simplify registration and approvals, reduce unnecessary multiple applications, and maintain a database of domestic investors.

The government expects that joining the agreement will further boost Bangladesh's international reputation as an attractive destination for foreign investment.

Bangladesh’s energy security is under fresh pressure as war in the Middle East disrupts the flow of liquefied natural gas (LNG), a fuel that has become indispensable to the country’s power sector.

In an effort to maintain supply, the government has confirmed the purchase of seven LNG cargoes from the spot market since the outbreak of the US-Israel war on Iran, at prices more than double those paid just months ago.

Since March 4, state-run Rupantarita Prakritik Gas Co Ltd (RPGCL) has floated three tenders to buy LNG cargoes from the spot market amid ongoing uncertainty over timely shipments from Qatar, as Iran continues to halt nearly all shipping through the Strait of Hormuz.

Qatar is a long-term LNG supplier to Bangladesh. It ships a significant proportion of its exports through the Strait, which accounts for roughly a fifth of global LNG flows.

Bangladesh meets almost 30 percent of its gas demand through imported LNG, while domestic production continues to fall short of the total requirement of about 2,650 million cubic feet per day (mmcfd), according to the energy ministry.

A senior RPGCL official said the country usually receives eight to nine LNG cargoes each month, with five to six passing through the Strait of Hormuz.

The US-Israel war on Iran has disrupted supplies of oil, LNG, fertiliser and sulphur through the shipping channel, driving up prices and sparking a global scramble for energy and crop nutrients.

LNG prices have almost doubled from pre-war levels of around $10-$12 per MMBtu.

On March 2, QatarEnergy suspended LNG production following an Iranian drone attack, placing additional strain on the global market. Qatar supplies around 20 percent of the world’s LNG, according to Al Jazeera.

On March 17, the cabinet committee on government purchase approved the acquisition of two spot LNG cargoes from Aramco Trading Singapore.

The first cargo will cost $20.96 per MMBtu, and the second $20.92 per MMBtu. Shipments are expected to arrive between April 15 and 22.

Last week, the government decided to purchase three more cargoes from South Korean and UK-based companies, at more than double December prices.

These shipments are expected between April 5 and 13. UK-based TotalEnergies Gas & Power Ltd will supply one cargo at $21.58 per MMBtu, while South Korea-based Posco International Corporation will provide two cargoes at $20.76 per MMBtu.

Earlier, state-run Petrobangla secured two emergency LNG cargoes for March deliveries at nearly three times December prices. One cargo was purchased from US-based Gunvor at $28.28 per MMBtu, while a second from Vitol cost $23.08 per MMBtu.

By comparison, LNG purchased in December cost just $9.99 per MMBtu.

Bangladesh’s power sector has transformed rapidly over the past decade. Domestic gas production, long the backbone of electricity generation, has stagnated as major gas fields mature.

To bridge the supply gap, the government began importing LNG in 2018 via floating storage and regasification units (FSRUs) at Moheshkhali. Since then, LNG has become a structurally vital component of the energy mix.

In 2025, Bangladesh spent roughly $3.88 billion to import 109 LNG cargoes, compared with $3.02 billion for 86 cargoes in 2024, reflecting rising demand and higher prices, according to data from Dhaka-based management consulting firm LightCastle Partners.

Qatar remains the country’s dominant supplier. In 2025, QatarEnergy received around $1.2 billion, the largest single supplier payment, for delivering 40 contracted cargoes.

Oman’s OQ Trading supplied a further 16 under long-term agreements, while the remaining 48 cargoes were bought from the spot market, according to LightCastle data.

Because Qatar’s LNG exports originate in the Persian Gulf, most shipments to Bangladesh must transit the Strait of Hormuz.

As a result, the country’s energy supply chain remains structurally vulnerable to disruptions in Gulf shipping routes.

Bangladesh is seeking billions in external financing to secure fuel and liquefied natural gas imports, as the new government led by Prime Minister Tarique Rahman moves to stabilise the economy amid a worsening global energy outlook due to the Iran war.

The nation of 175 million relies on imports for about 95% of its energy needs, and state-run agencies have increasingly turned to the volatile market to plug the gap. The government has been rationing fuel, though the restrictions were eased for the Eid al-Fitr festival.

Rashed Al Mahmud Titumir, the prime minister's adviser on finance and planning, said on Friday that Dhaka was in talks with major development lenders — including the Asian Development Bank, the World Bank, the International Islamic Trade Finance Corporation and Asian Infrastructure Investment Bank — to mobilise fresh funding.

"There are positive indications that we'll receive funds from the multilateral agencies to support oil and energy, which will help accelerate economic growth," Titumir told Reuters.

He said he expected about $1.3 billion from the International Monetary Fund under an existing programme, along with an additional $250 million to $500 million on top of roughly $500 million in budgetary support from the ADB.

"An IMF team is visiting... they were waiting for an elected government. We will request them to release the funds now, instead of July, so we receive them within the current fiscal year," he said.

The urgency has grown amid an escalating conflict in the Middle East that has roiled global energy markets, pushed up prices and increased concerns about supply routes.

"Our financing flow for oil and energy must not be disrupted under any circumstances," Titumir said. "We will ensure financing is available and diversify our sources of oil and energy."

He said Bangladesh was exploring procuring additional supply from the United States, Southeast Asia, Nigeria and producers in the Middle East, to avoid over‑reliance on a single source.

Despite rising global prices, Dhaka does not plan to pass the burden on to consumers, he said.

"We are not increasing fuel prices. We will provide the necessary financing so there is no contraction in the economy," Titumir said, stressing that the government aims to rely on multilateral support rather than private‑sector borrowing.

Bangladesh adjusts government‑set fuel prices each month, based on a global pricing formula.

Bangladesh Bank Governor Md Mostaqur Rahman has invited the World Bank to expand its engagement in supporting Bangladesh's financial sector development and broader economic growth.

The call came during a meeting with a high-level World Bank delegation at the central bank's head office on Sunday (15 March).

The delegation was led by John Zutt, regional vice president of the World Bank, and included Jean Pesme, division director for Bangladesh and Bhutan; Imad Najib Ayed Fakhoury, director at the International Finance Corporation; Gayle H Martin, operations manager for Bangladesh and Bhutan; Wilfred Tamegon, manager at the International Finance Corporation; and Mehrin A Mahbub, senior external affairs officer.

Deputy governors Md Habibur Rahman and Md Kabir Ahmed, along with other senior officials of Bangladesh Bank, were also present at the meeting.

During the meeting, both sides discussed ongoing projects supported by the World Bank in Bangladesh and explored opportunities to strengthen future cooperation, particularly in the financial sector.

Governor Mostaqur Rahman reaffirmed the central bank's commitment to ensuring the successful implementation of the projects. He also appreciated the World Bank's continued support for Bangladesh's development initiatives.

The World Bank delegation expressed strong interest in maintaining close cooperation with Bangladesh and highlighted the importance of a constructive partnership in supporting the country's development priorities.

The meeting also included discussions on Bangladesh's overall economic outlook and future development prospects.

Remittance inflows have increased by 35.7% in the first half of March, ahead of Eid, with expatriate Bangladeshis sending $2.20 billion in the first 14 days of the month.

During the same period in 2025, remittances stood at $1.62 billion, confirmed the central bank's spokesperson and Executive Director Arief Hossain Khan today (15 March).

A senior official of a private bank told The Business Standard that the rise in remittances is mainly due to the upcoming Eid festival, as expatriates typically send more money home during this period.

However, he noted that the flow may slow down after Eid, which is a usual trend.

He also warned that the ongoing Iran-Israel conflict could affect remittance inflows from the Middle East after Eid. If migrant workers in the region face disruptions in their jobs due to the conflict, remittance sent through banking channels may decline.

A deputy managing director of another private bank said expatriates were receiving between Tk121.70 and Tk121.75 per dollar today, while LC settlements were made at Tk121.20 per dollar.

The Middle East conflict escalated on 28 February this year when Israel and the United States jointly attacked Iran. In response, Iran has launched a series of missile strikes targeting Israel and countries in the Arab region that host US military bases.

Iran has also restricted vessel movements through the Strait of Hormuz without its approval, contributing to a rise in global fuel prices.

Meanwhile, economists recently held a meeting with newly appointed Bangladesh Bank governor last week. According to sources at the meeting, the central bank signalled that it would try to maintain foreign exchange reserves.

This has created a market signal that prompted banks to buy remittance dollars at higher rates.

A senior official of a private bank said that if new investments increase in the coming months, demand for opening letters of credit (LCs) will rise, which would in turn push up demand for dollars in the banking sector. As a result, banks are currently purchasing remittance dollars at higher rates.

Oil prices could extend gains at Monday's open as the US-Israeli war against Iran entered a third week, putting oil infrastructure at risk and keeping the Strait of Hormuz shut in the world's largest supply disruption.

US President Donald Trump threatened further ​strikes on Iran's Kharg Island oil export hub, drawing a defiant response of further retaliation ​from Tehran.

Brent and US West Texas Intermediate crude futures have already spiked sharply and ⁠rattled global financial markets. Both contracts have surged more than 40% so far this month to their ​highest levels since 2022 after the US-Israeli attacks on Iran prompted Tehran to halt shipping through the Strait ​of Hormuz - a key chokepoint for a fifth of global oil supply.

Trump has urged China, France, Japan, South Korea, Britain and others to deploy warships to secure the strategic gateway.

The United States struck military targets on Kharg Island on Saturday, which was swiftly ​followed by Iranian drone attacks on a key oil terminal in the United Arab Emirates.

"This marks an escalation ​in the conflict," JP Morgan analysts led by Natasha Kaneva said.

"Until now, the region's oil infrastructure has largely been spared."

Besides ‌UAE's ⁠Fujairah, Saudi Arabia's Ras Tanura export terminal and Abqaiq oil processing facilities have been listed as critical and highly vulnerable energy nodes in the Gulf, the analysts said.

However, oil loading operations at Fujairah have resumed, a Fujairah-based industry source told Reuters on Sunday.

Fujairah, outside the Strait of Hormuz, is the outlet for about 1 ​million barrels per day ​of the UAE's flagship ⁠Murban crude oil - a volume equal to about 1% of world demand.

Global oil supply is expected to fall by 8 million bpd in March due to disruptions ​to shipping while Middle Eastern producers have cut output by at least ​10 million bpd, ⁠according to the International Energy Agency.

Last week, the IEA agreed to release a record 400 million barrels of oil from strategic stockpiles held by member nations to combat price spikes. Japan plans to start releasing its oil on ⁠Monday.

Meanwhile, the ​Trump administration has rebuffed efforts by Middle Eastern allies to start ​diplomatic negotiations, according to three sources familiar with the efforts, while Iran has rejected the possibility of any ceasefire until U.S. and ​Israeli strikes end, dimming hopes of a quick end to the conflict.

The Bangladesh Securities and Exchange Commission (BSEC) and the Asian Development Bank (ADB) have charted a transformative course to quadruple the size of the national capital market, aiming to elevate its contribution from the current 10 percent of GDP to at least 40 percent within the next three years.Bangladesh Investment Guide

In a high-level meeting held on March 9, at the BSEC office in Agargaon, both organizations deliberated on strategic reforms, digitalization, and market diversification to ensure long-term sustainable growth for the country’s financial ecosystem, BSS reports citing a press release on Sunday.

To provide a data-driven foundation for this massive expansion, BSEC announced plans to conduct a comprehensive "Capital Market Diagnostic."

This initiative is designed to identify structural bottlenecks and formulate evidence-based policies for long-term development.

The meeting underscored a clear mandate: to transition the capital market from its current state to a dominant pillar of the economy, setting an ambitious target of reaching a market-to-GDP ratio of 40 percent by 2029.

The meeting emphasized the urgent need to align national market governance with the International Organization of Securities Commissions (IOSCO) standards to attract global institutional investors.

BSEC highlighted its commitment to using its full legal authority under existing frameworks to create robust incentives for listing.

In the short term, the Commission is prioritizing the digitalization and automation of market processes to eliminate opacity and ensure absolute accountability.

This modernization drive, coupled with a focus on human resource development, is intended to rebuild and strengthen investor confidence in the regulatory environment.

A central theme of the discussion was the necessity of shifting the burden of long-term industrial financing away from the banking sector and toward the capital market.

To facilitate this, BSEC and Bangladesh Bank (BB) are developing a joint framework to encourage large borrowers to raise capital through the stock exchange rather than relying on bank loans.

Under this initiative, BSEC is exploring specific incentives to encourage companies with significant market share to list their shares.

Furthermore, the introduction of a "Bond Guarantee Fund" was discussed as a vital security mechanism to mitigate risk and attract a broader spectrum of investors to the fixed-income market.

The ADB delegation expressed strong interest in providing technical assistance to drive these priority reforms.

Specifically, the ADB has committed to supporting feasibility studies for the proposed "Bond Guarantee Fund" and assisting BSEC in identifying the most appropriate government agency to manage and implement the fund.

The ADB representatives expressed optimism that this joint partnership would successfully build a more transparent, robust, and investor-friendly market.

BSEC Chairman Khondoker Rashed Maqsood presided over the meeting.

The high-level representation included Farzana Lalarukh, Commissioner; Md. Abul Kalam, Director; and Syed Muhammad Golam Mowla, Joint Director.

The Bangladesh Securities and Exchange Commission (BSEC) has imposed financial penalties on Index Agro Industries Limited and brokerage firm Prudential Capital Limited for violating securities laws and regulatory requirements.

According to the regulator's monthly enforcement action report for March, the market watchdog fined several officials of Index Agro Industries after identifying irregularities involving undisclosed related-party transactions and lapses in internal governance practices.

Index Agro Industries Managing Director Mahin Bin Mazher was fined Tk5 lakh, while Chief Financial Officer Iqbal Ahmed and Company Secretary Abu Jafar Ali were each fined Tk1 lakh.

According to the BSEC report, an inspection team conducted an on-site review of the company's operations, visiting four factory premises as well as the company's head office. The inspectors also examined documents and records submitted by the company at different times to verify compliance with regulatory and accounting standards.

During the inspection, the committee found a related-party transaction worth Tk2 crore between Index Agro Industries and Index Construction Limited.

The inspection found that both the chairman and the managing director of Index Agro Industries also hold positions on the board of Index Construction, making the transaction subject to disclosure requirements under International Accounting Standard.

However, the BSEC found that the Tk2 crore transaction was not disclosed in the company's audited financial statements for the year ended 30 June 2022. The omission was deemed a violation of the accounting standard, which requires companies to disclose transactions with related entities so that stakeholders can assess their financial impact and governance implications.

The regulator also raised concerns over the role of the company's auditor. According to the enforcement report, the statutory auditor, G Kibria and Co, stated in the audit report that the company had no related-party transactions in the normal course of business during the financial year ending June 2022.

This statement conflicted with the inspection findings, raising questions about the accuracy of the audit assessment and compliance with the responsibilities of external auditors.

The inspection further uncovered irregularities in the authorisation of work orders related to construction, civil works and associated activities carried out by the company. Investigators found that some inspection orders that were supposed to be signed by authorised officials of Index Agro Industries were instead signed by representatives of Index Construction.

The inspection team also reported that it had identified alternative quotations for certain works that were higher than those provided by Index Construction, prompting questions about whether procurement processes were conducted in line with standard competitive practices.

In a separate enforcement action, the BSEC also fined brokerage firm Prudential Capital Tk10 lakh for violations related to discrepancies in share records and irregularities involving beneficiary owner (BO) accounts.

The company's Managing Director Rezaul Islam was fined Tk5 lakh, while its former compliance officer AY Zobaer was fined Tk1 lakh.

According to the enforcement report, the irregularities came to light following a letter from ICB Securities Trading Company dated 26 February 2025, which highlighted a mismatch involving 1 lakh shares of Robi Axiata between depository participant accounts and the brokerage firm's back-office system during share reconciliation.

Further investigation revealed that the shares were purchased on behalf of an investor, Ava Dutta, through Prudential Capital Limited on 2 February 2023. The brokerage later transferred the shares to a BO account under the depository participant of ICB Securities Trading Company Limited.

However, scrutiny of Central Depository Bangladesh Limited records by the Dhaka Stock Exchange's monitoring team found that the BO account in the name of Ava Dutta under Prudential Capital was opened on 27 March 2023, nearly two months after the shares were reportedly purchased on her behalf on 31 January 2023.

The regulator said this sequence indicates that the shares were bought before the account was formally opened, raising questions about compliance with operational procedures and investor account management rules.

Such discrepancies between depository records and brokerage back-office systems were termed as serious compliance concerns because they may undermine the integrity of settlement processes and investor protection mechanisms.

Meanwhile, the BSEC also issued a warning to Navana CNG Limited and certain officials of the company for breaching securities rules, though no financial penalty was imposed in that case.

Stocks at the Dhaka bourse staged a notable rebound last week as improving investor sentiment and bargain hunting drove the key indices sharply higher amid easing concerns surrounding the ongoing Middle East war and its potential impact on the domestic economy.

The benchmark DSEX index of the Dhaka Stock Exchange surged 127 points, or 2.43%, to close the week at 5,368.

The blue-chip DS30 index also posted a strong gain, advancing 54 points, or 2.72%, to finish at 2,066.

Market breadth remained strongly positive during the week, with 324 issues advancing, 38 declining and 27 remaining unchanged.

Despite the broad-based price appreciation, market activity remained relatively subdued as investors adopted a cautious stance.

Average daily turnover fell by 24% week-on-week to Tk531 crore, reflecting a wait-and-see approach among market participants who preferred to monitor whether the upward momentum would be sustained before making fresh investment decisions.

However, the overall market capitalisation of the Dhaka bourse increased by approximately Tk9,000 crore during the week, indicating a steady return of confidence among investors after the previous week's sharp downturn.

EBL Securities, in its weekly market review, said the capital market experienced a sustained recovery throughout the week, bouncing back from the steepest single-day fall recorded in the past six years during the opening session. The brokerage house noted that the sharp correction at the start of the week created attractive entry points for investors, prompting bargain hunters to accumulate fundamentally strong stocks.

Although the week began under persistent bearish pressure, sentiment gradually improved as signals emerged of a possible de-escalation in the Middle East war.

At the same time, concerns regarding immediate disruptions to the country's fuel supply began to subside, which helped restore confidence among market participants.

A managing director of a leading brokerage firm said the government appeared capable of overcoming any potential fuel shortages stemming from the Middle East tensions.

Bangladesh secured a significant quantity of fuel supplies during the past week, which helped ease investor concerns and contributed to renewed optimism in the stock market.

He also noted that the central bank's recent decision to ease capital repatriation rules for foreign investors was a positive development for the capital market. The move is expected to improve the investment climate and may encourage greater participation from foreign portfolio investors in the coming months.

Additionally, speculation surrounding a possible change in the leadership of the stock market regulator also played a role in drawing investors back to the market, he added.

Sector-wise participation showed that investors were most active in the banking sector, which accounted for 21.3% of total market turnover. The pharmaceutical sector followed with 15.2%, while the textile sector captured 9.5% of the week's trading activity.

Among individual stocks, Islami Bank Bangladesh, LafargeHolcim Cement, City Bank, Square Pharmaceuticals and Beximco Pharmaceuticals were the major contributors to the upward movement of the benchmark index during the week.

In terms of turnover, Orion Infusion emerged as the most traded stock, followed by City Bank, Olympic Industries, BRAC Bank and Robi.

All major sectors posted positive returns during the week. The cement sector led the gains with a 7.6% increase, followed by the information technology sector with 5.3% and life insurance with 4.6%.

Interestingly, many Z-category stocks and loss-making non-bank financial institutions dominated the gainers' list. International Leasing, Peoples Leasing, FAS Finance and Fareast Finance each soared 50%, while Premier Leasing advanced 42.31%.

On the other hand, Saif Powertec was the worst-performing stock of the week, declining 6.94%. It was followed by Green Delta Insurance, Ring Shine Textile, Dula Mia Cotton and Hami Industries, which also posted notable losses.

Beximco Limited paid monthly profits to bond investors from the capital it had raised by offering high returns, rather than from business income, company officials have said.

With most of the raised funds used to repay loans and cover profit payouts, the company is now struggling to continue payments as the money has run out.

The company had assured investors a 15% return under the slogan "At the highest rate, above all", promising Tk1,250 per month for every Tk1 lakh invested. Investors were told that profits would be transferred to their bank accounts at the end of each month.

According to company sources, Beximco requires around Tk6 crore per month to pay interest against the bond capital.

However, since October last year, profit payments have become irregular. The profit for November was paid one week before the February national election, but payments for December and January are overdue.

In May 2024, the Bangladesh Securities and Exchange Commission (BSEC) approved Beximco Limited's issuance of bonds worth Tk1,500 crore to repay its own loans and to provide Tk1,000 crore in loans to Sreepur Township Company, a Beximco Group entity, for investment in real estate projects.

Sandhani Life Insurance Company Limited acted as trustee of the "Beximco 1st Unsecured Zero Coupon Bond".

However, according to Md Mizanur Rahman, company secretary of Sandhani Life Insurance, Beximco was able to raise only Tk541 crore out of the approved Tk1,500 crore. Of that amount, Tk500 crore was used to repay loans.

Beximco's Chief Financial Officer Md Luthfor Rahman said the remaining funds were kept in the company's account and used to pay monthly profits to investors.

He said as the factories are closed and bank accounts were frozen during the interim government, the company currently has no income of its own. As a result, a crisis has emerged in paying profits.

Mizanur Rahman said a meeting was held with Beximco before the election where the issuer assured that all outstanding profits would be paid.

He said that, to his knowledge, profits have been paid up to December and that the company has assured payment for January or the current month of February.

Individual investors have expressed concern.

Shipra Rani, an investor from Narsingdi, invested Tk60 lakh in the bond after selling land. She initially received profits regularly but is no longer receiving payments on time.

Her family told TBS that they depended on the monthly profit and are now facing uncertainty.

Another investor who invested Tk50 lakh said he is anxious about whether he will recover his principal investment at maturity.

Following the fall of the Awami League government, subscription to the bond declined sharply.

Institutional investors who had earlier expressed interest reportedly withdrew.

An official of Beximco, speaking on condition of anonymity, said the company had previously paid more than Tk100 crore per month in salaries and allowances but is now unable to pay investors' profits.

He said several thousand workers have been laid off and that many senior officials have not received salaries and allowances for over a year.

Although there were plans to provide Tk1,000 crore in loans to Sreepur Township, it is learnt that the loan was not provided from this bond. Sreepur Township had earlier undertaken the Mayanagar housing project in Gazipur.

Kaisar Ahmed, company secretary of Sreepur Township, said that after the change of government in August 2024, vandalism took place in the project area and work has not resumed fully.

He said machinery and equipment security remain a concern, although project activities are continuing.

He added that interest payments on the Tk1,000 crore bond raised earlier for the project are ongoing and there are no arrears.

Between 2021 and 2023, Beximco Group raised nearly Tk4,000 crore through two other bonds, including a Tk3,000 crore Sukuk bond in 2021 to finance solar power plants and expand its textile division.

The Bangladesh Bank has raised the maximum credit card limit from Tk25 lakh to Tk40 lakh in a move aimed at strengthening the country's digital payment ecosystem and meeting the growing demand of consumers.

The central bank issued a comprehensive set of guidelines in this regard today (15 March), which will take immediate effect for all scheduled banks and authorised card issuers.

According to the directive, the decision comes amid rapid growth in credit card usage, driven by technological advancement and increasing consumer preference for convenient digital transactions.

Exercising powers under Section 45 of the Bank Company Act, 1991, the central bank introduced the updated framework to ensure a more transparent and secure cashless payment ecosystem while safeguarding consumer rights.

Under the new guidelines, banks will be required to follow stricter risk assessment protocols to encourage responsible lending and prevent potential financial instability.

The framework also introduces revised mechanisms for handling customer complaints, card-related irregularities, and transaction disputes in order to ensure a safer digital environment.

In addition, all card issuers must comply with enhanced security measures for electronic Point of Sale (POS) systems and online transactions.

The central bank said that the expansion of electronic payment infrastructure and various incentive programmes has made it necessary to establish a more robust regulatory mechanism.

"To ensure that this growth contributes positively to financial stability and consumer confidence, it is imperative to establish a comprehensive and updated regulatory framework," the central bank said in its directive.

The policy is expected to boost consumer confidence and streamline the national payment system by making credit card services more fair, compliant and customer-centric, it added.

Loan limits against cards

The central bank has also raised the limits on loans against credit cards. Unsecured loans can now reach Tk20 lakh, up from Tk10 lakh, while secured loans have been increased to Tk40 lakh from Tk25 lakh.

Loan limits are based on the bank deposit linked to the card, providing secure collateral. Cardholders can also withdraw up to 50% of their total credit limit in cash.

Interest rates and charges

The policy sets the maximum interest rate on credit card loans at 25%, applied only to the outstanding balance, not the total billed amount. While interest-free facilities are available for purchases, cash withdrawals will not benefit from such concessions.

Late payment fees can only be applied once, and any changes in interest rates or other charges must be communicated to cardholders at least 30 days in advance, either in writing or electronically.

Consumer protection

Applicants must be at least 18 years old to obtain a credit card. Students aged 16 and above who are dependent on a primary cardholder may use supplementary cards.

Applicants must also provide a valid e-TIN certificate and a clear CIB report.

To prevent harassment and protect consumers, the policy specifies that banks and recovery agents cannot subject cardholders to mental or physical intimidation. The privacy of cardholders' families, friends, or references must also be respected.

Collection calls or in-person contacts are restricted to office hours. A 24-hour helpline must be available to promptly block lost or stolen cards.

The National Board of Revenue is set to remove restrictions preventing non-bonded exporters from sourcing raw materials locally through back-to-back letters of credit (LCs), a move expected to ease exports and improve access to inputs for hundreds of garment factories.

NBR Chairman Abdur Rahman Khan confirmed to The Business Standard that the board is actively working to remove these barriers.

"We are working to remove existing barriers preventing non-bonded exporters from sourcing raw materials from deemed exporters operating under bonded facilities," he said.

Officials at the revenue authority say an order on the matter may be issued soon after the necessary legal changes are completed.

Infograph: TBS
Infograph: TBS

A senior official of the NBR's VAT division, speaking on condition of anonymity, said a summary seeking approval from the finance ministry has already been prepared as part of the legal amendment process.

Once approved, the VAT Policy Division will issue a formal order, based on which the Customs Bond Wing will publish a separate order outlining the conditions under which the facility will operate.

If implemented, the measure is expected to benefit more than 1,100 ready-made garment exporters that currently operate without bonded licences but rely on locally sourced inputs for exports.

According to the Bangladesh Garment Manufacturers and Exporters Association, these factories export garments worth around $6.5 billion annually and employ nearly seven lakh workers.

Responding to concerns about possible irregularities once the facility is allowed, the NBR chairman said automation and integration of data systems would help reduce misuse.

"We are moving towards automation. With integration among relevant institutions, it will be possible to collect information and monitor activities, which will reduce the scope for irregularities," he said.

A long-standing bottleneck

Garment industry leaders have been lobbying the NBR for several years to resolve the issue.

When asked why these complexities had not been resolved sooner, a senior official from the NBR Customs Wing said, "It is relatively straightforward to identify irregularities when bond-licensed firms trade raw materials amongst themselves without exporting or by committing other breaches.

However, he said, detecting such issues when they supply raw materials to non-bonded institutions is difficult under the current system.

The official added, "This arrangement has persisted primarily due to a lack of capacity within Customs to detect these specific irregularities."

After the ouster of the government led by Sheikh Hasina in August 2024, the BGMEA raised the matter again. In a letter sent to the NBR on 30 November 2024, the association warned that more than a hundred factories had already shut down due to their inability to open back-to-back LCs or procure raw materials and accessories from bonded companies.

"The remaining factories are also losing capacity and are on the verge of closure," the letter read.

Exporters believe that the proposed decision will mark a significant step towards improving the ease of doing business in Bangladesh.

Md Shehab Udduza Chowdhury, vice president of BGMEA – who has been liaising with the NBR on behalf of the association for the past year to resolve this issue – welcomed the new initiative.

He said, "Discussions on this matter began back in 2021. Multiple committees were formed to solve the problem, yet no progress was made. Although the NBR took action after our letter 11 months ago, the process eventually stalled.

"It was only during a meeting two weeks ago that a final decision was reached."

Shehab added, "The question remains: if this could be resolved now, why did it take so long? Action should also be taken against those responsible for obstructing the process for so long."

Obstacles faced by non-bonded exporters

Under existing regulations, exporters holding bonded licences can collect yarn, fabrics or accessories from other bonded companies through back-to-back LCs against their master LCs. However, factories without bonded licences are not allowed to use this facility.

Exporters say banks often hesitate to open such LCs for non-bonded companies due to concerns over potential legal complications with the NBR.

As a result, many small exporters are forced to purchase raw materials and accessories in cash from the local market, often at higher prices.

During export procedures, customs authorities frequently ask for proof that VAT has been paid on those inputs. In addition, factories face further complications during annual VAT audits.

Consequently, non-bonded exporters often incur additional costs both in sourcing materials and in dealing with customs and VAT procedures, leaving them at a competitive disadvantage.

RL Apparels Limited, a knitwear exporter based in Badda in the capital, is one such company struggling under the current system.

Its Managing Director Md Rokonuzzaman told this newspaper that banks refuse to open back-to-back LCs due to the lack of permission under existing rules.

"As a result, we have to purchase raw materials and accessories from the open market in cash at higher prices," he said. "This increases our costs, and we also face difficulties during export clearance at ports and during VAT inspections."

According to him, the factory's workforce has already fallen from 160 to about 100 workers due to these challenges.

Rokonuzzaman noted that exporters of sweaters and woven garments without bonded licences face the most difficulties.

However, he said the removal of the restriction would significantly ease business operations for such factories.

Why exporters avoid bonded licences

Entrepreneurs say obtaining a bonded warehouse licence is often difficult for small and medium-scale exporters.

According to Rokonuzzaman, applicants must meet several strict conditions, including maintaining a specific warehouse size, having wide access roads nearby and holding paid-up capital of at least Tk1 crore.

"Even if these conditions are met, applicants often have to wait months or even years after submitting their application," he said.

Beyond these requirements, entrepreneurs have also alleged corruption in the process.

One garment exporter, requesting anonymity, said he had once planned to apply for a bonded warehouse licence but later learned that obtaining it would require paying around Tk30 lakh in bribes at different stages.

"If the bribe is paid, whether the conditions are actually met becomes less of a concern," he alleged.

According to NBR data, around 6,000 factories across sectors, including garments and plastics, currently enjoy duty-free raw material sourcing under the bonded warehouse facility.

Data from the Export Promotion Bureau shows that Bangladesh exports around 87 types of manufactured goods. In the 2024-25 fiscal year, total exports of manufactured goods amounted to about $48 billion, with more than 80% coming from the ready-made garment sector.

Tackling irregularities through automation

Officials said one of the key reasons the government had previously been reluctant to extend this facility was the risk that duty-free raw materials might be diverted to the domestic market instead of being used for exports, which could result in revenue losses and create unfair competition for regular importers.

However, NBR officials now believe the risk can be mitigated through digital monitoring systems.

A senior official said several government processes have already moved online, including the e-VAT system and the Customs Bond Management System.

These systems will be integrated enabling data sharing among customs, VAT authorities, banks and other relevant institutions.

"With online data sharing among the relevant institutions, it will become easier to track whether non-bonded companies are purchasing raw materials from bonded companies and whether those inputs are ultimately used for exports," the official said.

He added that such integration would significantly reduce the chances of false export declarations or misuse of duty-free inputs.