Economists have attributed the decline to overall political instability and uncertainty surrounding the elections.

Former World Bank Dhaka office lead economist Zahid Hossain said there was no conducive environment for investment at the time.

“There was uncertainty over the direction of political consensus, making it unrealistic to expect foreign funds to flow into the country. Although the interim government took some initiatives to attract investment, those efforts faced obstacles,” he said.

He added that foreign investors were hesitant as they knew the interim government would not be permanent and there was no clear roadmap regarding the elections.

Reinvested earnings also saw a sharp decline during the period. Bangladesh Bank data showed a 35.31 percent drop, with reinvested earnings standing at $217.4 million at the end of the October–December quarter, compared to $325.75 million a year earlier.

Reinvested earnings refer to profits generated by foreign companies from local operations that are reinvested in the country instead of being repatriated. While this indicates some level of investment activity, overall FDI growth depends largely on new equity investments, which remain weak.

Distinguished Fellow of the Centre for Policy Dialogue (CPD) Mustafizur Rahman said foreign firms reduced reinvested earnings considering the overall economic and political environment.

“There was uncertainty over whether elections would take place, which discouraged reinvestment. Although elections were held in February, concerns persisted during that quarter,” he said.

Apart from political factors, economists pointed to several structural challenges hindering FDI inflows, including policy complexities, high business costs, and infrastructural limitations.

Bangladesh also lags behind other South Asian countries in port management, transport, and logistics facilities, as well as cargo and container handling capacity.

Mustafizur Rahman said issues such as the absence of an effective single-window system and high costs of doing business are discouraging foreign investors.

“Even if the political environment improves, investment will not increase unless these structural problems are addressed. The arrival of an elected government alone will not automatically boost FDI, as investors evaluate overall opportunities and conditions,” he added.

A senior Bangladesh Bank official said private sector investment has also declined, indicating that both local and foreign investors are reluctant to undertake new investments.

According to Bangladesh Bank, total foreign investment—including equity, reinvested earnings, and intra-company loans—stood at $363.82 million during the period, down from $494 million in the same quarter of 2024.

Oil prices rebounded more than 6% today (20 April) after tumbling more than 9% on Friday on news the Strait of Hormuz is closed again after both the US and Iran said the other party had violated their ceasefire deal by attacking ships over the weekend.

Brent crude futures jumped $6.11, or 6.76%, to $96.49 a barrel by 2327 GMT and US West Texas Intermediate was at $90.38 a barrel, ⁠up $6.53, or 7.79%.

The US military had seized an Iranian cargo ship that tried to run its blockade, US President Donald Trump said yesterday, while Iran said it would not participate in a second round of peace talks despite Trump's threat of renewed airstrikes.

The United States has maintained a blockade of Iranian ports, while Iran has lifted and then reimposed its own blockade of the Strait, which handled roughly one-fifth of the world's oil supply before the war began almost two months ago.

"Oil markets continue to gyrate in response to ⁠oscillating social media posts by the US and Iran, rather than the realities on the ground which remain challenging for oil flows to resume in a rapid fashion," Saul Kavonic, MST Marquee's head of research, said.

Both contracts posted on Friday their largest daily declines since April 18 after ⁠Iran said passage for all commercial vessels through the Strait of Hormuz was open for the remaining ceasefire period and Trump said Iran had agreed to never close the strait again.

"The announcement of ⁠the Strait opening proved premature," Kavonic said.

"Ship owners will be twice shy about heading towards the Strait again without receiving much more confidence that any announced passage is ⁠real."

More than 20 ships passed the strait on Saturday carrying oil, liquefied petroleum gas, metals and fertilizers, Kpler data showed, the highest number of vessels crossing the waterway since 1 March.

Finance Minister Amir Khosru Mahmud Chowdhury has said that the government will not accept all the conditions of the International Monetary Fund (IMF) in order to take loans.

"Decisions will be taken after safeguarding the interests of the country's people and businesses," he said while speaking with journalists at his office in the Secretariat today (19 April), after returning from the IMF-World Bank Spring Meetings.

Khosru stressed that the relationship with the IMF is not charitable but commercial.

He further said, "There are many ongoing discussions between the government of Bangladesh and the IMF and World Bank, and the issue is not only about the amount of money involved, which many people fail to understand."

He added that loan discussions with the IMF are ongoing and may continue for another 15 to 20 days, or even up to a month.

"We have not fully agreed with the IMF in the discussions. We are reviewing what the IMF is asking for, and we also have our own expectations. We are an elected government, and we will not accept everything just because someone asks us to," Khosru said.

The current government will not take any decision that creates pressure on the people or businesses, he added.

Khosru said discussions with the World Bank, Asian Development Bank (ADB), and Infrastructure Bank have already been completed.

He said the current IMF loan programme is not tied to the months of June or July.

"Many people do not understand this. The current IMF programme was taken under the previous Awami League government and includes many conditions. Its tenure is only seven months. Some of those conditions may not be acceptable to the current government."

"We will decide whether we will proceed with the next programme," Khosru added.

Responding to a journalist's comment that the introduction of the Family Card may have caused the IMF to step back or impose new conditions, the finance minister said there is no connection between the Family Card and IMF loans.

"On the contrary, the Family Card has been widely appreciated. It will help deliver the benefits of the economy to poor people."

When asked whether the increase in fuel prices was made to meet IMF conditions, he said fuel prices have increased globally.

"We are not the only ones who have increased prices. Everyone has asked why we are not increasing fuel prices. In Sri Lanka, fuel prices were increased by up to 25%."

He added, "If we do not increase fuel prices, pressure on the treasury increases, and with the upcoming budget, it is not easy to manage. So, we have increased it only as much as necessary. This has no relation with the IMF."

Asked whether inflation will rise, he said it may or may not increase. "The recent increase in fuel prices is temporary and not significant. Fuel has a small share in the inflation basket."

He further said representatives from the IMF, World Bank, ADB, Infrastructure Bank, and IDB will visit Bangladesh. "All of them want to work with the current government."

He added that their policies align with the government's election manifesto, so they are interested and supportive of cooperation.

Khosru also said that the presidents of the World Bank and the Asian Development Bank will visit Bangladesh.

The World Bank on Friday unveiled a new strategy aimed at helping small island states and other ​small countries better address unique challenges such as remoteness, exposure to shocks and a narrow economic base by ‌focusing firmly on jobs.

World Bank President Ajay Banga discussed the initiative at a closed-door gathering of ministers and central bank governors from 50 small countries held during the spring meetings of the International Monetary Fund and World Bank.

He said the concept was aimed at using differentiated tools to help small ​states attract more private investment, carry out policy and regulatory reforms to make it easier for businesses to operate ​and grow, and ultimately create more jobs.

It will focus on areas such as health, affordable energy, resilient ⁠infrastructure and micro- and small businesses where Bank officials see the greatest opportunities to boost growth, strengthen businesses, and create more and better jobs.

The World Bank Group last year approved a record $3.3 billion in new commitments and guarantees for small states, which face unique economic challenges and are disproportionately affected by shocks, as seen during the war in the Middle East.

"For small businesses, a single hurricane, a sudden surge in imported fuel prices, or a downturn in tourism can undo months of investment and income in a matter of days," the bank said in a blog released with the new strategy.

Banga said the Bank will take a differentiated approach to shape the regional projects it pursues in such countries, and partnerships would be a big component.

"This is not a one-size-fits-all approach. Small states are diverse, and our support will ‌reflect that," ⁠Banga told the finance officials. "We also know the economics are different."

He noted that working in small states costs up to four times more than in larger countries, so the Bank planned to streamline delivery of its services, use more flexible financing and scale solutions to make the most of each dollar.

Some projects are already underway.

In Tonga, for example, the bank will co-finance an urban resilience project with the Asian Development Bank under a mutual reliance ⁠framework agreement, a first-of-its-kind agreement between multilateral development banks.

Banga said more such agreements were planned, including one with the Inter-American Development Bank to expand the approach to the Caribbean. The World Bank was also expanding the tools available to countries, he said.

Better diagnostics were also important, the bank said. ⁠Deeper reports studying the constraints to private-sector–led hiring were underway for Barbados, Guinea-Bissau, Lesotho, Mauritius, Samoa, and Seychelles.

The World Bank could also leverage its power to help drive investments, the blog noted.

For instance, the International Finance Corp, the bank's investment arm, helped fund ⁠development of Botswana's first utility-scale solar project, while the World Bank worked on a parallel project on battery storage to enable the integration of solar projects into the grid.

"The result is not only a solar plant, but a replicable model for how unlocking private finance can open markets and create jobs," the bank said in its blog.

Bangladesh's bond investors are caught in a prolonged limbo, facing stalled coupon payments and expired tenures without redemption, while recovery efforts often drag on for years, typically starting only after the issuers collapse.

The crisis has exposed weak enforcement, delayed legal action and regulatory blind spots, eroding confidence in what was once promoted as a safer investment alternative.

Corporate bonds were marketed as a middle ground between volatile equities and low-yield bank deposits – offering predictable coupons, fixed maturities and asset-backed security. Mutual funds, banks, state-owned institutions and other institutional investors poured money into these instruments on the assumption that risks were limited and well regulated.

That assumption has increasingly proved misplaced.

One of the most telling cases is Regent Spinning Mills, a concern of the now-defunct Chattogram-based Habib Group. In 2015, Regent raised Tk200 crore through a five-year corporate bond to finance expansion. The bond matured in 2020, but investors, including RACE Asset Management and trustee Investment Corporation of Bangladesh (ICB), are still struggling to recover their funds.

Although Regent was formally declared in default in June 2020, legal action to recover the money was initiated only in August 2024. By then, the Habib Group had unravelled: factories were shuttered, Regent Airways grounded and key directors had fled the country amid multiple cases and arrest warrants.

A similar pattern is emerging in Beximco's Green Sukuk Al Istisna'a, where 94% of the five-year sukuk remains unpaid even as its maturity approaches in December 2026. The trustee has proposed extending the tenure by another five years, effectively locking investors in for a decade.

Earlier, a senior Beximco official, requesting anonymity, said that in light of the group's setbacks after 5 August 2024, repaying the principal by 2026 is "not possible", although a five-year extension could make full repayment feasible.

Beximco's owner, Salman F Rahman, remains in jail facing multiple cases, but the company is still paying profit instalments to Sukuk investors.

ICB is also yet to recover Tk325 crore invested in Sea Pearl Beach Resort & Spa's convertible bond, despite collateral backing and an eight-year tenure that is nearing its end.

While corporate bond failures highlight issuer weakness and sluggish trustee action, a separate – and potentially more systemic – risk has surfaced in bank-issued subordinated bonds. These instruments, though governed by similar regulations, are fundamentally different: they are designed to absorb losses in times of stress.

In practice, however, prolonged non-payment and regulatory ambiguity following bank mergers have frozen more than Tk4,000 crore of institutional funds.

Abu Ahmed, chairman of ICB and a former economics professor at Dhaka University, said bonds often appear risk-free because they are backed by collateral. "However, private corporate bonds are not always risk-free, and investors should keep this in mind," he told The Business Standard.

Failure to repay interest or principal, he added, primarily hurts institutional investors and weakens their balance sheets. "Regulators should take measures against defaulters to protect investors' interests."

Market participants said weak enforcement has prevented the bond market from maturing. Shahidul Islam, CEO of VIPB Asset Management, said delayed coupon payments and non-repayment of principal are the main reasons the market has failed to gain depth or credibility.

"The regulator approved bonds despite knowing the issuer's weak financial condition. Approving Beximco's Tk3,000 crore bond despite its default history is a regulatory failure," he said, recalling that Beximco's debentures in the 1990s had also defaulted.

Shahidul argued that poor financial disclosure is another major constraint. "Without credible financial reporting, it is impossible to assess an institution's real condition. Regulators must be stricter so reports reflect reality," he said, adding that only financially transparent institutions should be allowed to issue bonds.

Market growth, hidden risks

According to the Bangladesh Securities and Exchange Commission (BSEC), the current commission – reformed after the change of government in August 2024 – has allowed 24 firms, including banks, to raise Tk14,000 crore to meet regulatory capital requirements and for business expansion.

Before that, the previous commission had approved around Tk41,000 crore in bond fundraising. At present, 16 bonds are listed on the stock exchange, with a combined market capitalisation of Tk3,334 crore as of June 2025.

Of the Tk41,000 crore approved, the banking sector accounted for the largest share at Tk27,350 crore, followed by manufacturing with Tk6,600 crore. Financial institutions were approved to raise Tk2,100 crore, while NGOs received approval for Tk2,000 crore, with Green Sukuk bonds alone amounting to Tk3,000 crore.

BSEC data also show that City Sugar Mill, Akij Food and Beverage, CDIP, Sajida Foundation, Mir Akhter Hossain Limited, Runner Auto, Pran Agro and Envoy Textile have raised funds from the capital market through bonds.

Yet despite widespread defaults in coupon and principal repayments, there is currently no comprehensive database of defaulters at the regulator's end.

Ahsan H Mansur, the previous governor of Bangladesh Bank, at a seminar on 28 January said lack of investor confidence remains the biggest obstacle to developing Bangladesh's corporate bond market, and restoring trust requires strict regulatory action against issuers who fail to honour coupon payments.

Without restoring investor trust, any attempt to deepen the bond market would be futile, he said, pointing out that weak enforcement of rules has badly damaged confidence, particularly in cases where issuers have failed to pay bond coupons without facing consequences.

In developed markets, he said, even a single missed coupon payment is treated as a serious default that triggers regulatory action and reputational damage. "But in our country, there is hardly any consequence if a company fails to pay bond coupons. No one seems to care."

Regulator shifts responsibility to trustees

BSEC spokesperson Abul Kalam told TBS that if any bond issuer defaults, meaning it fails to make coupon payments or repay the principal, the trustee must inform the commission.

"The trustee is responsible for overseeing whether coupon payments and principal redemptions are being made properly. If any legal proceedings or liquidation become necessary, the trustee will notify the commission, and the commission will then take necessary actions," he said.

Asked specifically about the Regent Spinning Mills default, Abul Kalam said, "It is the trustee's responsibility to take initiative. If any assistance is required, the commission will take action and provide support in accordance with the law."

He added, "At present, the commission has taken an initiative to create a database of bond defaulters, similar to the CIB database."

Regent Spinning fallout

Regent Spinning floated a Tk200 crore corporate bond in 2015, approved by the BSEC in May that year. ICB was appointed as trustee. Several institutional investors, including ICB itself and RACE, invested.

RACE allocated Tk150 crore, or 75% of the total bond amount. In June 2020, the trustee identified Regent as a defaulter. Investors stopped receiving coupons, and RACE was required to make accounting provisions against the investment.

In a written comment to TBS, Regent said it was a core subsidiary of Habib Group, which once ranked among Bangladesh's most influential conglomerates.

"In the initial years following the bond issuance, the group maintained its financial obligations and paid out coupons to investors regularly. However, the conglomerate eventually suffered a historic financial collapse that extended far beyond a single bond default," the company said.

The fallout was severe, with Regent Airways grounded, factories shut and top directors fleeing the country to avoid legal cases and arrest warrants.

"Today, many of the remaining assets of the Habib Group are subject to court-ordered liquidation processes as part of the effort to settle outstanding debts with various creditors and bondholders," the company said.

Despite being declared in default in June 2020, ICB only filed a recovery suit in August 2024, four years later. By then, the issuer's financial position had deteriorated sharply.

Seeking anonymity, an ICB trustee division official said, "To protect the investors' funds poured into the bond, ICB initiated legal proceedings and filed a suit, which is pending in court."

Sea Pearl convertible bond

In 2017, Sea Pearl raised Tk325 crore through a 20% convertible bond, fully subscribed by ICB. The bond was backed by mortgages on hotel properties and equipment and was issued to repay debts and complete the Sea Pearl Beach Resort & Spa in Cox's Bazar.

It had an eight-year tenure, including a two-year moratorium, and carried a 10% coupon. Green Delta Insurance was the trustee.

After the moratorium, repayments were to begin in April 2020. But citing the pandemic's impact, the company failed to pay and repeatedly sought waivers.

Managing Director Md Aminul Islam did not respond to calls.

Subordinated bonds: Money stuck

In the banking sector, Tk4,010 crore in subordinated bonds issued by four Shariah-based banks – Exim Bank, Social Islami Bank, Union Bank and First Security Islami Bank – remain effectively frozen following mergers and restructuring.

Exim Bank alone accounts for Tk1,890 crore.

Bangladesh Bank spokesperson Arif Hossain Khan said investors would "eventually" receive their principal, though he acknowledged it could take time – offering little clarity on timelines or interim compensation.

The country's capital market began the week on a sluggish note today (19 April), as investors remained cautious following the recent adjustment in domestic fuel prices and ongoing uncertainty regarding the Middle East conflict.

The benchmark DSEX index of the Dhaka Stock Exchange (DSE) edged down by approximately 9 points to settle at 5,247.

Market participants remained cautious, refraining from taking fresh positions and instead adopting a wait-and-see stance amid lingering geopolitical and macroeconomic uncertainties that continued to weigh on market momentum.

Despite a relatively steady performance during the mid-session, the early optimism failed to hold as mounting selling pressure in major large-cap scrips eventually eroded the initial gains.

EBL Securities, in its daily market review, noted that the recent hike in domestic fuel prices further reinstated investor caution.

While the benchmark index fell, the blue-chip DS30 index saw a marginal uptick, closing at 1,990. However, the overall market breadth remained bearish, with 223 issues declining against 125 advancing, while 56 remained unchanged.

Trading activity on the premier bourse saw a slight upward trend compared to previous sessions, with total turnover rising to Tk819 crore.

On the sectoral front, the engineering sector dominated market participation, accounting for 18.9% of the total turnover, followed by the textile and general insurance sectors.

However, the majority of sectors recorded negative returns. The paper and printing sector faced the steepest correction, dropping by 1.7%, while the travel and leisure and jute sectors declined by 1.5% and 1.1%, respectively.

In contrast, the general insurance sector emerged as a rare bright spot, posting a 2.2% gain, while the textile and tannery sectors also managed to end the day with marginal positive returns.

Several high-cap stocks acted as significant index draggers during the session, including Islami Bank, Walton Hi-Tech Industries, National Bank, ACI, and Beacon Pharmaceuticals.

On the other hand, turnover leaders included City Bank, Paramount Textile, Khan Brothers PP Woven Bag, Runner Auto, and Acme Pesticides.

Among individual stocks, Runner Auto and Janata Insurance emerged as the top gainers, both surging by 9.94%, while Sonar Bangla Insurance and Prime Textile also posted significant gains.

Conversely, Popular Life First Mutual Fund and Meghna Cement were among the top losers of the session, facing notable price corrections.

The bearish sentiment was mirrored at the Chittagong Stock Exchange (CSE), where the key indices both closed in negative territory.

The CSCX ended 5 points lower at 9,035, while the CASPI shed 9 points to settle at 14,751. Turnover at the port city bourse, however, saw an increase, reaching Tk41 crore

Bangladesh Lamps, widely known as BD Lamps, posted more than 11% year-on-year revenue growth in the first nine months of the current fiscal year, driven by higher sales of energy-saving LED tube lights and electrical accessories, according to its quarterly financials as of March.

Despite the rise in revenue, the company reported a loss of Tk87 lakh for the July-March period, with a loss per share of Tk0.83 – a sharp improvement from the same period a year earlier, when it incurred a loss of Tk5.74 crore and a loss per share of Tk5.46.

The company said its earnings position improved significantly compared with the corresponding period of the previous year, "primarily driven by an 11.3% growth in revenue and an 8.9% reduction in operating expenses".

The financial statements were approved at a board meeting held on Thursday and published on the stock exchange website today (19 April).

BD Lamps reported a revenue growth of Tk153.81 crore for the nine-month period, up from Tk138.23 crore a year earlier.

According to the report, most of the revenue came from the sale of energy-saving LED bulbs, which contributed Tk56.25 crore, slightly down from Tk56.67 crore in the same period last year.

Electrical accessories generated Tk47.78 crore, marking a 40% year-on-year increase, while sales of energy-saving tube lights rose 18% to Tk43.58 crore. In contrast, revenue from electric bulbs fell to Tk6.20 crore.

Jan-Mar financials

In the January-March quarter, BD Lamps reported revenue of Tk51 crore, a 6% increase from Tk48.32 crore in the same quarter of the previous fiscal year.

The company posted a profit of Tk27 lakh for the quarter, with earnings per share of Tk0.26, up from a profit of Tk11 lakh and EPS of Tk0.11 a year earlier.

For the full fiscal year 2024-25, BD Lamps recorded revenue of Tk188.47 crore, compared with Tk173.29 crore in the previous year, reflecting an 8.76% growth.

However, the company said it suffered a significant loss of Tk5.88 crore in the first quarter of FY25, mainly due to the July uprising in 2024. "As a result, we could not achieve our targeted sales, which affected overall profitability," it said in its annual report.

For the year, BD Lamps posted a net loss of Tk6.55 crore, narrowing from Tk13.43 crore in the previous year.

The company also noted that a new statutory regulatory order (SRO) issued in the national budget in May 2025 increased duties from an average of 10% to 28%, further affecting profitability.

To comply with the new requirements, BD Lamps has committed to investing nearly Tk10 crore in moulds and machinery to set up in-house production facilities for plastic and metal components used in switch sockets and lighting products.

The company expects this move to reduce duties back to an average of 10%, supporting profitability in the coming years.

BD Lamps declared a 10% cash dividend for its shareholders for FY25.

Inflow of remittances witnessed a year-on-year growth of 16.2 percent reaching US$1,968 million in the first 18 days of April, according to the latest data of Bangladesh Bank (BB) issued today (Sunday).

Last year, during the same period, the country's remittance inflow was $1,694 million, BSS reports.

During the July to April 18, 2026 of the current fiscal year, expatriates sent remittances of $28,177 million, which was $23,479 million during the same period of the previous fiscal year.

The safe-haven US dollar dropped ​to multi-week lows on Friday as risk appetite soared after Iran said the Strait of Hormuz is open, boosting optimism that the Middle East ‌conflict is winding down.

In afternoon trading, the dollar index , which measures the greenback against a basket of six currencies, fell 0.3 percent to 97.96 after earlier ​dropping to 97.632, its lowest in seven weeks.The index was down 0.6 percent on the week, set for a second straight weekly decline. Over the past two weeks, ​it has fallen about 2.1 percent, its largest two-week drop since late January.

“The dollar’s weakness is mainly about the market unwinding the geopolitical risk premium,” said George Vessey, lead FX and macro strategist at Convera in London. “I don’t think we are pricing in a fundamentally weaker US dollar because there are question marks around the Federal Reserve, what’s the Fed’s next move ​is going to be after inflation came out hotter than expected.

So the economy is still somewhat resilient so it’s not going to be the start ​of a full structural dollar decline.”

BOJ LIKELY TO HOLD RATES THROUGH JUNE

Against the Japanese yen , the dollar slid 0.6 percent to 158.22 after earlier climbing to 159.86. It was on track ‌to post ⁠its largest weekly drop in nine weeks.

It will take about two years to recover the energy ​output lost in the Middle East from the ‌conflict there, Fatih Birol, the head of the International Energy Agency, was quoted as saying on Friday in an interview with ​the Neue Zuercher Zeitung newspaper.

"That will vary ​from country to country. In Iraq, for example, ⁠it will take much longer than in Saudi Arabia. ​However, we estimate it will take approximately two years ​overall to reach pre-war levels again," Birol told the Swiss newspaper.

Birol added that the market was underestimating the consequences of a ​prolonged closure of the Strait of Hormuz.

Shipments of oil ​and gas that were already en route to their destinations before ‌the ⁠war in Iran began have now arrived, mitigating the impact of shortages, he said.

"But no new tankers were loaded in March. There were no new deliveries of ​oil, gas ​or fuels to ⁠Asian markets. This gap is now becoming apparent. If the Strait of Hormuz ​is not reopened, we must prepare for ​significantly higher ⁠energy prices."

Asked whether the IEA could carry out another release of emergency oil reserves after its March move, ⁠Birol ​said the agency was ready to ​act immediately and decisively.

"We're not there yet, but it's definitely under ​consideration," Birol said.

The Metropolitan Chamber of Commerce and Industry (MCCI) today urged the government to cut turnover tax on gross receipts to 0.3 percent from 1 percent, saying the existing regime burdens businesses and distorts the tax framework.

The chamber pointed to mismatches between tax deducted at source (TDS), taxes on gross receipts and final corporate tax liabilities, which it said raise compliance costs, strain cash flow and risk double taxation.

“To remove these distortions, tax rates across different stages need to be rationalised and aligned with business realities,” MCCI said.

The proposal was placed at a pre-budget seminar in Dhaka for fiscal year 2026-27, jointly organised by MCCI and the Economic Reporters Forum.

It also proposed setting TDS on export proceeds at 0.50 percent to improve competitiveness amid uncertain global trade conditions, adding that advance deductions erode exporters’ working capital.

At the import stage, MCCI recommended reducing tax collection at source to 3 percent from 5 percent to ease costs for raw materials and capital machinery, supporting industrial production and investment.

For domestic transactions, it suggested a flexible TDS range of 1–3 percent on supply, depending on transaction type and risk profile, and fixing TDS on packing materials at 3 percent for clarity.

The chamber also called for resolving refund complications by issuing “No TDS” certificates until refundable amounts are fully adjusted to ease cash flow and cut delays.

At the event, Kamran T Rahman, president of MCCI, said businesses face mounting pressure from high inflation, elevated interest rates and foreign exchange constraints, with small and medium enterprises hit hardest.

He urged a supportive budget to lower business costs, encourage investment and restore private sector confidence, stressing the need for coordinated policy action to stabilise the economy and sustain growth.

IMF economists warned Thursday that the war in Iran could have “very, certainly severe” consequences far outside the region – especially for energy-importing countries.

Countries in East Asia and Sub-Saharan Africa are among the countries most affected now -- and who could suffer the most -- outside the region, as the conflict stretches on.

Ironically, the ongoing virtual closure of the Strait of Hormuz -- through which about one-fifth of the world's oil and gas passes -- has been a windfall for some petroleum-exporting nations, like Nigeria or Algeria.

But for those that rely on imports for food, fertilizer, and energy, the elevated prices are proving worrisome.

"Oil impacted importers, particularly non-resource-rich and fragile states, face deteriorating trade balances, rising living costs and limited buffers" to absorb future shocks," warned Abebe Selassie, the International Monetary Fund (IMF) Director for Africa, at a press conference Thursday.

"The human consequences are almost certain to be severe," he added.

IMF economists are briefing government officials and media on their latest economic analysis as they hold their spring meetings alongside the World Bank this week in Washington.

HITTING THE MOST VULNERABLE

Sub-Saharan Africa -- which for IMF statistical purposes does not include Sudan and parts of the Horn of Africa -- could see 20 million people pushed towards hunger, an IMF report said.

For Sahel countries, where poverty is widespread, factors that are expected to drive up the cost of food include scarce, expensive fertilizer and rising transportation costs.

"Already transportation costs are very high for people in urban areas, rural areas even more so," Selassie explained. "We are already seeing quite a bit of a pinch from the crisis on people, impoverishing people -- it's making life difficult for people."

The economic effects of the crisis hit at a time when international aid is in steep decline, another source of concern for the IMF.

The aid declines aren't a temporary ebb, but are "more structural," Selassie said. "It is falling hardest on the region's most vulnerable countries -- fragile states and low-income economies -- that depend on aid, not as a supplement but as a critical source of budget financing for healthcare and food assistance."

HEAVY OIL RELIANCE

Further afield, small Pacific islands are of great concern, said the IMF's Asia-Pacific Director Krishna Srinivasan, due to their heavy reliance energy imports and the amount of time it takes ships to reach them -- even when shipping disruptions are minimal.

Zooming out, the entire region -- not just small islands -- faces unique risks because it spends almost double what Europe does on oil and gas, as a percent of GDP.

Some countries, such as Malaysia and Thailand spend around 10 percent of their GDP on oil and gas -- a sign of how reliant they are on energy imports.

DOWNGRADES LIKE 2008

None of this is to downplay the effects in the Middle East, where the IMF's regional director, Jihad Azour, told reporters that their updated estimates of economic activity are "among the largest six-month downgrades to regional growth projections we have made since the global financial crisis."

Markets are now demanding higher interest rates across the board, further driving up the cost of borrowing for countries in the region that were already facing difficulties.

Here again, food is a pressure issue, especially in the region's poorest.

"Food items already account for 45 to 50 percent of total imports in Yemen, Sudan, Somalia and more than half of their population are already experiencing food insecurity," Azour said.

So what's to be done?

IMF officials have repeated the same mantra all week: governments should adopt only temporary, limited measures to avoid further stretching already thin budgets.

Food production, trade and transportation costs may increase further on fuel-price hike by Tk 15-20 per litre in Bangladesh amid an exigent global crunch.
Bangladesh uses about 4.35 million tonnes of diesel annually, and around 24 per cent of it is used in agriculture. About 80 per cent of irrigation depends on this fuel oil. It is also needed for land preparation, harvesting, threshing, and transporting crops.
On Saturday, the government increased diesel price from Tk 100 to Tk 115 per litre, octane Tk 140, up from Tk 120, petrol Tk 135, up from Tk 116, and kerosene Tk 130 in a rise from Tk 112.
Economists, agriculturists and businesspeople are concerned about domino effect of the fuel-price rises across a spectrum of economic activities, price indices and trade and transport.
Agro economists say farmers may have to spend around Tk 18 billion more per year on diesel for farming.
"This will create pressure in two ways. First, higher production costs will make it harder for farmers to get fair prices. Second, food prices on the market may go up, increasing the cost of living, especially for low-income people," says former Bangladesh Agricultural Research Council (BARC) executive chairman Dr Wais Kabir.
He says Boro is now being harvested, so irrigation needs are lower. "However, costs for harvesting, threshing, and transport will increase due to higher fuel prices."
He notes that fuel-price hikes affect all sectors and will increase farmers' costs significantly, which may lead to higher rice prices.
Agricultural economist Prof Dr Rashidul Hasan says farmers are worried about reduced profits. Paddy prices are already low due to imports from India, and farmers are unsure about getting good prices for Boro.
"The fuel-price hike has made the situation worse."
Data show about 55 per cent of the country's rice comes from Boro cropping which depends fully on irrigation.
There are around 1.9 million agricultural machines in the country in the process of mechanization of agriculture, about 75 per cent of which run on diesel.
Prof Hasan feels ensuring diesel supply and providing subsidies are important to support farmers.
Group Director of TK Group Mohammad Mostafa Haider says the impact of fuel-price hikes on product prices cannot be measured immediately.Bangladesh market report
He notes that global oil-and raw-material prices have already increased, along with transport costs.
As such, the businessman says, many product prices have already been adjusted. However, he believes transport fares should not increase again if fuel supply improves, as fares already went up earlier due to shortages.
And, in the meantime, transporters and the government authority concerned were in a meeting on Sunday night with a proposal on the table for bus-fare hike, too.
Recent data from the Trading Corporation of Bangladesh and the Department of Agricultural Marketing show prices of vegetables, edible oils, fish, and poultry on an upturn over the past two weeks.
Traders say truck and pickup-van fares for goods have already increased 15-20 per cent due to fuel shortages in many places.
Meanwhile, the fuel price hike has affected the transport sector as a whole.
The Fare Adjustment Committee under the Bangladesh Road Transport Authority met to discuss new bus fares for city and long routes on Sunday evening. The meeting ended inconclusively. The meeting discussed an increase of Tk 0.22 in fare per kilometre. However, the meeting resumes today.
Although buses charged regular fares on the first day, operators demanded fare increases to make up for higher fuel costs and earlier losses during the fuel crisis.
Some ride-sharing services also charged up to 50-percent higher fares on Sunday, citing fuel shortages and higher costs.
However, the Passenger Welfare Association of Bangladesh opposes fare hikes without fair representation of commuters in the decision-making process. They say fare decisions were previously "influenced by interest groups".
Water-transport operators have also demanded a 36-42-percent increase in launch fares, saying that their operating costs have risen sharply.
Currently, bus fares are Tk 2.12 per km for long-haul run and Tk 2.42 for city routes. Launch fares may also increase if the proposals get through.
Commuters have expressed concern about possible fare hikes, though many say they paid normal fares on the first day after the fuel-price increase.
Transport owners' leaders say fare adjustment is necessary after the fuel-price hike, while commuters argue that fares were not properly reduced when fuel prices fell in 2024.
Leaders of the country's apparel sector Sunday demanded uninterrupted supply of fuels amid the price hike and adjustment of the rate on a regular basis.
Economists term the decision 'good', suggesting regular price adjustment in line with global price indices.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Mahmud Hasan Khan, in an immediate reaction, says, "So far I know, the government has raised the fuel prices in line the understanding with the IMF."
He says the price must be adjusted on a regular monthly basis according to the global price indices, adding that 'adjustment means not only to raise the price but also reduce when global prices fall."
He, however, stresses that factories should get the fuel uninterruptedly as price hike will surely increase the production cost which for many reasons is on the rise.
Citing a rise in global market rates, the government Saturday increased fuel-oil prices at the retail level by Tk 15 to Tk 20 per litre.
Under the new pricing structure, diesel has been fixed at Tk 115 per litre, octane at Tk 140, petrol at Tk 135, and kerosene at Tk 130 per litre.
Talking to The Financial Express, Khan Monirul Alam, Managing Director of Fashion.Com, says his factory located at Ashulia faces five to six hours of load shedding daily.
To run two factories-medium in size--he needs 1200-litre diesel daily to operate generators during the electricity outage.
Due to the 15-percent hike in diesel prices, he will have to bear an additional financial cost of Tk 0.4 million to Tk 0.5 million monthly.
"As the generators are for backup supports and they also have a limited capacity, the machines are overheated, posing risk of possible accident," he says explaining the current situation.
Mr Alam says majority of the factories in the export industry have generators as alternative supports.
Echoing the BGMEA leader, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) president Mohammad Hatem says there is no denying the fact that production cost will increase. "But the main problem is that we are not getting fuel."
"Last government increased prices of gas several times but we did not get the adequate supply of gas," he laments.
Talking to the FE, Bangladesh Institute of Bank Management (BIBM) director-general Dr Md Ezazul Islam says the latest fuel-price hike will fuel the inflation rate which has been on the higher side.
If the government does not raise the prices of fuel, it has to subsidize, which will put a negative impact on revenue policy, he says about a double bind.
Terming the raise 'good', he says the government also needs to adjust the fuel prices every month with the international market trends-reducing the rate when prices go down globally.
Distinguished fellow of CPD Prof Mustafizur Rahman says the price hike is made at a time when the government has to buy fuels at high rates amid uncertainties.
"It would affect most the direct users like transport, manufacturing and consumers," he says, adding that the government has to monitor the market strictly so that bus fare and other transportation price do not rise disproportionately but reasonably.
He also suggests strengthening the social-safety net to help low-and fixed-income groups who are already under pressure due to higher inflation.
Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood and State Minister Aninda Islam Amit met Prime Minister Tarique Rahman at the Secretariat on Sunday and briefed him on the country's fuel situation.
"They met the Prime Minister at his office at the Secretariat and informed him of the latest fuel situation," said Prime Minister's Additional Press Secretary Atikur Rahman Rumon.
After the meeting, the Energy Minister told waiting journalists that the government had no alternative but to hike the prices as fuel imports require foreign currency, and the adjustment was necessary to keep the situation at a tolerable level.

Metropolitan Chamber of Commerce and Industry (MCCI) President Kamran T Rahman today (19 April) called for a "supportive and growth-oriented" national budget for fiscal year 2026-27, warning that businesses, particularly small and medium enterprises, are under severe strain from high inflation, sluggish investment, elevated interest rates and foreign exchange pressure.

Speaking at a seminar of MCCI and the Economic Reporters' Forum (ERF) on budget priorities, he said the upcoming budget must be balanced and realistic, arguing that a sensible tax policy can simultaneously boost revenue, encourage investment and generate employment rather than punish businesses further.

Kamran proposed full integration of the National Identity (NID) and Tax Identification Number (TIN) databases to expand the tax net, noting that though over one crore taxpayers hold TINs, fewer than half file returns.

He also recommended introducing a symbolic minimum tax to bring new taxpayers into the fold and simplifying return filing through mobile applications.

The MCCI chief urged the government to reconsider conditions tied to corporate tax benefits, especially restrictions on cash transactions.

He further suggested cutting tax rates for both listed and non-listed companies by an additional 2.5% to stimulate investment.

Kamran proposed a unified taxpayer profile covering income tax, VAT and customs to reduce administrative complexity and harassment, along with online hearings and digital notices to cut time and cost for businesses.

On VAT and customs, he urged simpler procedures, transaction-based valuation, stronger automation, and allowing quantity disclosure instead of value in some VAT forms to protect confidentiality.

The MCCI President called for special policy support for SMEs, including separate tax treatment, input tax credit facilities and reduced duty and VAT on raw materials.

Comprehensive reform roadmap presented

Md Shahadat Hossain, former President of the Institute of Chartered Accountants of Bangladesh, presented policy recommendations in a paper titled "National Budget 2026–2027: Private Sector Priorities & Perspectives," outlining reforms in corporate tax, VAT, customs and capital markets.

He said the budget should go beyond revenue and spending to serve as a broader policy framework for growth, investment, jobs and inflation control.

Shahadat flagged Bangladesh's tax-to-GDP ratio hovering between 6.5% and 7.3% in FY2024-25 as among the lowest globally, well below the 15% threshold considered necessary for sustainable development.

Despite repeated notices and a High Court directive, People's Leasing and Financial Services has failed to recover any dues from four former directors who collectively owe Tk1,785 crore.

The non-bank financial institution is now moving towards legal action to recover the long-overdue loans.

"We sent multiple letters to the permanent addresses of the four directors requesting repayment but have not received any response," managing director Md Sagir Hossain Khan told The Business Standard. The court gave them six months to repay, but the January deadline passed without compliance.

"Action is being taken under prevailing laws. Legal notices have already been served, but no response has been received. It has been decided to file cases, which are also in process," he added. "The company has also filed a fresh petition seeking further directions from the court."

The four directors

Recovery efforts have been complicated by the status of the accused directors. Former chairman Motiur Rahman and former director Khabir Uddin have died. Another director, Bishawjit Kumar Roy, remains absconding and his whereabouts remain unknown. Arafin Samsul Alamin remains active in business as a director of Shamsul Alamin Real Estate and managing director of SA Spinning Mills.

A special forensic audit, ordered by the court in 2021, revealed that the four sponsor-directors alone accounted for Tk1,413 crore of the Tk2,800 crore outstanding to major defaulters as of 2022.

The audit, conducted by MABS & J Partners covering 2009-2022, was submitted in January last year. Based on its findings, the High Court's company bench in January 2022 directed the defaulters to clear their dues within six months. The order was later published on the company's website in September.

According to the audit, outstanding loans as of 2022 were Tk565.47 crore for Motiur, Tk404.38 crore for Khabir, Tk415.66 crore for Arafin, and Tk28.47 crore for Bishawjit. By March 2026, the total outstanding to these four had risen to Tk1,785 crore.

The report detailed the nature of borrowing: Arafin and Bishawjit took direct loans, Motiur availed both loans and margin loans for share trading, while Khabir Uddin borrowed solely for share trading.

Motiur was chairman of MK Group, a major importer of fertilisers and commodities, while Khabir was engaged in jewellery and real estate development, according to the company's 2014 annual report.

Attempts to reach Arafin were unsuccessful. A woman who answered his phone denied that the number belonged to him and disconnected the call after the reporter identified himself.

Managing Director Sagir said the audit exposed deep-rooted governance failures. "The company's directors colluded among themselves to take loans and diverted funds from People's Leasing," he said.

"Some loans had collateral, while others had none. Even where collateral exists, it is negligible compared to the loan amount. We also found that for 65% of the loans, the required collateral was not provided, which has severely damaged the institution," he added.

Struggles of People's Leasing

People's Leasing has been struggling for years under the weight of non-performing loans, negative interest margins, operating losses, and mounting obligations to depositors. Since 2015, it has not paid dividends due to continuous losses.

Following a petition by Bangladesh Bank under the Financial Institutions Act, the High Court in July 2019 placed the company under liquidation. That order was later recalled in July 2021, when the court formed a new board, which has since been restructured to manage the institution.

The company's 2024 annual report, citing the forensic audit, pointed to widespread financial irregularities, systemic governance failures, and gross mismanagement. These included irregular loan approvals and disbursements, inaccurate interest calculations, unapproved waivers, dubious loan adjustments, regulatory non-compliance, and unreliable financial statements.

It also highlighted the involvement of former directors, board-level oversight failures, and negligence by officials, noting that repeated warning signals from external auditors since 2014 had been ignored.

In response to a query from the Dhaka Stock Exchange, People's Leasing said the current board and management have been working to stabilise the institution.

Since July 2021, around Tk200 crore has been recovered from default borrowers, while Tk85-90 crore has been repaid to depositors in phases. The third phase of repayment has also begun.

The company said its financial distress stemmed largely from irregularities, weak governance, and non-performing loans disbursed before 2019, with the forensic audit identifying significant liabilities linked to former directors.

As part of revival efforts, the company has sought around Tk750 crore in government support following court directives involving Bangladesh Bank and the Ministry of Finance. It has also resumed limited lending on a fully secured basis, disbursing approximately Tk25 crore in new loans so far.

Bangladesh’s mobile operators have warned of an imminent nationwide telecom disruption as a deepening electricity and fuel crisis pushes networks to the brink, raising serious concerns over the vulnerability of data centres and the wider digital economy.

In an urgent letter to the Bangladesh Telecommunication Regulatory Commission, they said the situation has “reached a point where continued telecom operations can no longer be sustained without immediate government intervention.”

The warning, issued by the Association of Mobile Telecom Operators of Bangladesh (AMTOB), comes as prolonged outages -- often lasting 5-8 hours daily during storms -- force operators to run critical infrastructure on diesel generators.

According to the letter, seen by The Daily Star, base transceiver stations (BTS) alone are now consuming over 52,000 litres of diesel and nearly 20,000 litres of octane daily across operators.

A shutdown would “critically disrupt emergency services, disaster response, law enforcement coordination, financial transactions, digital governance, and economic activity.”
Providing a breakdown, it stated that the country’s largest telecom operator Grameenphone consumes 28,079 litres of diesel and 9,254 litres of octane, Robi Axiata uses 13,140 litres of diesel and 5,610 litres of octane, and Banglalink requires 11,206 litres of diesel and 4,995 litres of octane daily to keep towers operational.

The most acute vulnerability, however, lies in data centres and switching facilities – the core of the country’s digital infrastructure.

“Core telecom infrastructure including data centres, switching facilities, and transmission hubs are frequently operating without grid power, posing serious risk to network stability,” the AMTOB said.

Each data centre consumes an estimated 500-600 litres of diesel per hour, translating to around 4,000 litres per day per facility, according to the letter.

Combined daily consumption for data centres and switching hubs has already surged to 27,196 litres, with Grameenphone, Robi and Banglalink accounting for 11,184, 9,732 and 8,200 litres respectively.

Industry insiders say this level of dependence on backup power is unsustainable.

Unlike BTS towers, data centres host critical systems such as call routing and internet traffic management. Any disruption at this level can trigger cascading failures across networks.

“If fuel can’t be managed and data centres go offline, it would cause widespread call drops, internet outages, and service blackouts,” said an official of an operator on condition of anonymity.

Tanveer Mohammad, chief corporate affairs officer of Grameenphone, echoed the concern.

Noting that operators are experiencing challenges in electricity and fuel availability, he said, “The evolving situation calls for timely and targeted measures to sustain uninterrupted telecom services nationwide.”

He said in order to “proactively avoid disruptions to essential services for millions”, they need further support from the government for priority electricity access to critical infrastructure, streamlined fuel supply, and facilitation of fuel transportation for emergency operations.

The consequences could extend far beyond communication breakdowns. The AMTOB cautioned that a shutdown would “critically disrupt emergency services, disaster response, law enforcement coordination, financial transactions, digital governance, and economic activity.”

Bangladesh’s fast-growing digital economy -- heavily reliant on mobile connectivity -- would be particularly exposed. Mobile financial services, e-commerce platforms, ride-sharing apps, and cloud-based enterprise systems depend on uninterrupted network availability. A prolonged outage could halt transactions, delay salary disbursements, and paralyse logistics chains.

The crisis is being compounded by fuel supply constraints. Local stations cannot provide volumes at this scale, the letter noted, and law enforcement barriers during inter-district transport have further disrupted supply lines.

“Multiple strategically vital telecom facilities are currently running on dangerously low fuel reserves,” it warned.

The operators’ association called for immediate government intervention, including uninterrupted electricity supply to key telecom facilities, priority power status for mobile towers, and direct fuel allocation from depots.

They also urged authorities to ensure smooth fuel transportation.

“Issue immediate written directives to LEAs (law enforcement agency) to ensure uninterrupted fuel transportation for emergency telecom operations,” they said in the letter.

“The telecom network is the backbone of national communications, public safety, governance, and emergency response. Any prolonged disruption will have severe and potentially irreversible consequences for the country,” they added.

They proposed that authorities hold an urgent high-level coordination meeting involving the power and energy divisions, fuel authorities, regulators, and operators.

There are 46,567 telecom towers in Bangladesh, operated by tower infrastructure companies and mobile operators, providing network coverage to over 18.58 crore customers. Operators have around 27 data centres across the country.

The heads of Multilateral Development Banks (MDBs) yesterday underscored the importance of close cooperation to support stability and safeguard development progress amid heightened global uncertainty and mounting pressures on member economies.

Meeting on the sidelines of the World Bank Group–International Monetary Fund Spring Meetings, the heads noted that the impacts of current global developments, including the evolving situation in the Middle East, are being felt through higher energy costs, supply chain disruptions, and tighter financial conditions.

“MDBs are working more closely than ever to support our members and clients through a complex and evolving global environment,” said Masato Kanda, president of the Asian Development Bank (ADB) and current chair of the MDB Heads Group, according to a press release.

The MDB Heads Group includes the African Development Bank, ADB, AIIB, European Investment Bank, and the World Bank Group, among others.

The institutions will combine financial strength and partnerships to help countries manage immediate pressures and build long-term resilience, he added.

Reaffirming a shared commitment to deep collaboration, the group focused on private sector development, job creation, and infrastructure.

To facilitate this, the heads agreed to establish a working group to mobilise private finance and expand financing capacity through originate-to-distribute approaches.

The leaders also recognised the importance of increasing credit risk transparency in emerging markets through the Global Emerging Markets (GEMs) consortium.

They pledged to scale up local currency financing and develop domestic financial markets to mitigate exchange rate risks.

For sector-specific resilience, the MDBs are strengthening collaboration on critical minerals to support responsible supply chains. They also launched Water Forward, a global initiative to advance investable water systems to drive food security and prosperity.

The heads agreed on a common Value for Money procurement framework to ensure the sustainability of financed projects.

Uttara Bank PLC has decided to bolster the financial standing of its brokerage subsidiary, Uttara Bank Securities Limited, by investing Tk192 crore through a rights share subscription.

The decision, aimed at expanding the firm's capital and ensuring smoother operations, comes at a time when the subsidiary is grappling with financial losses and a relatively small capital footprint.

According to a price-sensitive statement issued by the bank, the investment will be made by subscribing to a rights offer recently approved by the subsidiary's shareholders.

The rights offer was formally sanctioned during an Extraordinary General Meeting (EGM) of Uttara Bank Securities on 16 April. Under the approved terms, the brokerage firm will issue four rights shares for every one existing share held by its investors. Each of these rights shares is valued at its face value of Tk10, with the total initiative set to raise Tk200 crore in fresh paid-up capital.

The capital injection is structured to reflect the current shareholding pattern of the brokerage firm. While Uttara Bank will provide the lion's share of the funds, amounting to Tk192 crore, the remaining Tk8 crore will be subscribed by six individual investors who hold a minor stake in the company.

According to the bank's statement, the entire subscription process must be completed within 30 days of the EGM approval date.

Speaking to The Business Standard regarding the move, Muhammad Golam Farukh, chief executive officer of Uttara Bank Securities, said the firm's existing paid-up capital of Tk50 crore was insufficient for its growing operational needs.

He added that the primary objective behind increasing the capital is to strengthen the firm's capital base, which is essential for maintaining stability and ensuring the brokerage house can function efficiently in a competitive market.

This move toward capital fortification is also aligned with the evolving regulatory landscape. The Bangladesh Securities and Exchange Commission (BSEC) enacted risk-based capital rules on 29 May 2019, setting minimum capital requirements ranging between Tk5 crore and Tk15 crore for stockbrokers, depending on the nature of their operations. These rules were formulated based on the bitter experience of the 2010-11 stock market crash, where lenders were largely blamed for disbursing margin loans far beyond their risk-management capacities.

Furthermore, the conditions of the Asian Development Bank (ADB) and the best practices of developed financial markets were taken into account while formulating these risk-based supervision rules. By raising its capital, Uttara Bank Securities is moving to ensure it remains well above regulatory cushions and is prepared for more complex market activities.

Uttara Bank Securities was incorporated in 2013 as a fully-fledged subsidiary of Uttara Bank and holds a Trading Right Entitlement Certificate (TREC) at the Dhaka Stock Exchange (DSE). Despite its decade-long presence, the firm has faced a challenging financial period recently.

In the first nine months of 2025, the firm incurred a net loss of Tk4.94 crore. Furthermore, its financial statements for 2024 revealed negative retained earnings of Tk1.80 crore, although the firm maintained a significant asset base valued at Tk369.70 crore during the same period.

In contrast to the subsidiary's struggles, the parent organisation remains financially robust. Uttara Bank reported a consolidated net profit of Tk335 crore for the January–September period of 2025, with a consolidated earnings per share (EPS) of Tk3.46. This strong performance by the parent bank provides the necessary fiscal cushion to support its subsidiary through this capital expansion.

Currently, Uttara Bank maintains 99.994% ownership in the securities firm, with the remaining portion held by the six individual investors. This strategic move is expected to transform the subsidiary's balance sheet and provide the necessary liquidity to navigate the volatility of the capital market, said the bank.

Claim settlement in Bangladesh's life insurance sector improved significantly in the final quarter of 2025, yet many policyholders remain unpaid, deepening the sector's persistent crisis of confidence.

According to unaudited data from the Insurance Development and Regulatory Authority (Idra), total claims in the life insurance sector stood at Tk13,158 crore by the end of the October-December quarter.

Of this, companies managed to settle Tk8,755 crore, leaving Tk4,403 crore in unpaid claims. In percentage terms, the settlement rate rose to 67%, a sharp increase from just 35% in the previous quarter.

A similar trend is visible in terms of policy numbers. Out of a total of 28.43 lakh matured policies, claims for 16.58 lakh have been settled. However, around 11.85 lakh policyholders are still waiting for payments.

Industry insiders said increased regulatory pressure and closer monitoring by the authorities played a key role to the higher settlement rate in the final quarter. As companies approached the year-end, the need for licence renewal also pushed them to settle claims. Besides, higher business volumes during this period improved liquidity, enabling insurers to pay more claims.

Despite this progress, structural weaknesses in the sector remain evident. Stakeholders said that while a handful of well-performing companies are committed to timely claim settlements, many others continue to show little urgency. As a result, delays persist, leaving policyholders in uncertainty. In many cases, customers wait years, even after policy maturity, to receive their dues.

Insurance expert and UNDP consultant SM Zialul Haque explained that typically 40% to 45% of life insurance business is conducted in the final quarter, compared to 20% to 25% during other periods.

"This increases cash flow for companies, allowing them to settle more claims," he told TBS, pointing out that regulatory pressure related to licence renewal further compels companies to act.

He added that nearly one-third of insurers show a strong reluctance to settle claims. However, a segment of companies remains proactive, especially when they have sufficient funds. "The good companies always try to pay customers on time. But the reluctance of some players is affecting the entire sector."

Top insurers pay over 95%

Data shows that MetLife Bangladesh settled 98.3% of its claims during the period. Its Chief Executive Officer Ala Ahmad said, "The true value of insurance is proven at the moment a claim is made. In 2025, we are proud to have settled Tk2,853 crore in claims, the highest in the industry."

He added that MetLife operates through disciplined financial management and significant technology investments. "We have ensured the largest life fund and a digital process that delivers claim payments in just three to five days."

Pragati Life Insurance also set a positive example by settling 98.5% of its claims. Managing Director and CEO Md Jalalul Azim said that around seven to eight companies are consistently working to improve settlement rates. However, others are moving in the opposite direction, showing little commitment to paying customer claims, which is harming the sector as a whole.

Sheikh Rakibul Karim, Chief Executive Officer of Guardian Life Insurance, said, "Every settlement reflects our commitment to keeping our promises. By ensuring transparency and prompt support, we strive to stand beside our customers and their families when it matters most." The company settled 97.5% of its claims within the stipulated period.

Regulatory interventions

Idra spokesperson Saifunnahar Sumi told TBS that the recent improvements are the result of a series of regulatory interventions. The authority is working to maintain a non-corrupt and unbiased regulatory environment while implementing reforms. These include introducing a grading system for insurers, placing lower-ranked companies under special audits, and rewarding better-performing firms.

The regulator has also strengthened accountability through governance review meetings, where board chairmen and senior management are required to attend. In addition, an interview system has been introduced for the appointment and reappointment of CEOs and advisers to ensure compliance.

The Idra spokesperson said efforts were under way to introduce the proposed Insurers' Resolution Act, which would allow authorities to place non-performing companies under resolution if they fail to improve.

"Amendments to the Insurance Act are also being finalised, including provisions for strict penalties if claims are not settled within the stipulated time," Sumi said. "The regulator is regularly monitoring and following up on unresolved claims to ensure faster settlements."

IMF chief Kristalina Georgieva warned Wednesday of difficult times ahead for the global economy if war in the Middle East is unresolved and oil prices stay high, adding that inflation risks could seep into food prices.

“We must brace for tough times ahead” if the conflict persists, she told reporters at a press briefing during the International Monetary Fund and World Bank’s spring meetings in Washington.

The gathering brings government and financial leaders to the US capital this week, with policymakers looking to limit economic fallout from the war.

US-Israeli strikes launched against Iran on February 28 sparked Tehran’s retaliation, virtually closing the Strait of Hormuz, a key shipping route for oil and fertilizers.

Energy prices have since surged, squeezing countries -- especially vulnerable economies and those dependent on oil imports from the region.

“We are concerned about risks for inflation moving into food prices should the delivery of fertilizers at a reasonable price (not be) restarted soon,” Georgieva said.

But as countries move to limit price shocks on their citizens, Georgieva urged central banks to “wait and see” before adjusting interest rates if they can do so.

She said this was particularly the case where the public has a “well-anchored” expectation of inflation being kept under control.

“If we are to move faster out of the war, it may not be necessary to take action,” she said.

But she conceded that countries where central banks lack such credibility might need to send stronger signals.

For now, “we are still at a time when a faster resolution of hostilities is possible,” she said.

Noting that fallout is “highly asymmetric,” Georgieva urged IMF member countries to come forward to the Washington-based lender if they need financial assistance during the conflict.

Low-income countries spend around 36 percent of their consumption on food, while emerging markets spend about 20 percent, said the IMF’s director of strategy Christian Mumssen in press remarks.

Advanced economies spend about nine percent, he added.

The IMF estimates for now that near-term demand for new fund financing would be in the range of $20 billion to $50 billion.

“Currently, we have 39 programs, and prospective demand for new programs from at least a dozen countries, a number of them in sub-Saharan Africa,” Georgieva said of the fund’s financial aid.

“The sooner we act, the more we would protect the economy and the people,” she added.

She stressed the need to protect fiscal sustainability as countries move to help their populations, cautioning that “untargeted measures, export controls or broad-based tax cuts” could serve to “prolong the pain of high prices.”