Two listed non-life insurance companies – Bangladesh National Insurance Company and Central Insurance Company have declared cash dividends for the year ended 31 December 2025, as both firms posted earnings growth alongside contrasting cash flow performances.

Bangladesh National Insurance Company has recommended a 22% cash dividend for the period. The insurer will hold its annual general meeting (AGM) on 23 June 2026 through a digital platform, while the record date has been set for 13 May 2026.

The company's share price on the Dhaka Stock Exchange (DSE) declined 1.66% to Tk70.90 on Thursday.

Despite the market dip, the insurer posted stronger financial results in 2025. Its earnings per share (EPS) rose to Tk4.81 from Tk4.19 a year earlier, while net asset value (NAV) per share increased to Tk31.26 from Tk28.45, indicating improved profitability and asset growth.

However, net operating cash flow per share (NOCFPS) fell sharply to Tk4.10 from Tk6.71 in 2024, signalling weaker cash generation from core operations.

The company provides general insurance services across fire, motor, marine, engineering, personal accident, contractor all risk, industrial all risk and health insurance segments.

Meanwhile, Central Insurance Company has recommended a 12% cash dividend for the same financial year. Its AGM will be held on 18 June 2026 via a digital platform, with the record date fixed for 20 May 2026.

The company's share price slipped slightly by 0.25% to Tk40.40 on Thursday's trading session at the DSE.

Central Insurance recorded modest financial growth in 2025, with EPS rising to Tk1.87 from Tk1.85 and NAV per share improving to Tk50.69 from Tk50.17, reflecting stable performance.

Unlike Bangladesh National Insurance, the company saw a slight improvement in cash flow, with NOCFPS increasing to Tk1.64 from Tk1.50 a year earlier.

Its insurance portfolio includes fire, marine cargo, marine hull, engineering, motor, liability, aviation, overseas mediclaim and other miscellaneous products.

Analysts said both insurers maintained operational stability through steady EPS and NAV growth. However, they cautioned that diverging cash flow trends highlight the need for closer scrutiny of liquidity conditions, particularly for Bangladesh National Insurance.

They added that while earnings remain positive, sustained cash generation will be key to assessing long-term financial strength.

The ongoing US-Israel war on Iran has disrupted global trade and weighed on economic growth, but some sectors are benefiting from heightened volatility and shifting policy priorities.

The International Monetary Fund has cut its 2026 global growth forecast to 3.1%, citing supply disruptions linked in part to the shutdown of the Strait of Hormuz and damage to Gulf energy infrastructure, says Al Jazeera.

Here are five sectors that analysts say are seeing gains:

Why are Wall Street banks benefiting?

Major US investment banks have reported higher profits as market volatility drives trading activity and portfolio shifts.

Morgan Stanley posted a 29% rise in profit to $5.57 billion, while Goldman Sachs reported a 19% increase to $5.63 billion. JPMorgan Chase recorded a 13% gain to $16.49 billion.

Banks cited "robust client engagement" to explain the results. Analysts say frequent repositioning by investors—sometimes referred to by traders as the "TACO trade," short for "Trump Always Chickens Out"—has boosted commissions and trading revenues.

"Clients want to reposition, so they trade frequently. Spreads tend to increase, which increases the profitability for trade intermediaries like banks," said Sean Dunlap, director of equity research at Morningstar Research Services.

What is driving growth in prediction markets?

Crypto-based prediction platforms are drawing increased attention as users speculate on geopolitical outcomes.

Polymarket has expanded rapidly, revising its fee structure in March 2026 and generating more than $21 million in fees in early April alone.

Regulators are examining the sector over concerns about potential insider trading linked to event-based betting, while data suggests the majority of gains accrue to a small share of users.

How is the defense sector performing?

Global military spending has risen amid conflicts in Iran, Ukraine and Gaza, supporting defense contractors.

Members of NATO have pledged to increase defense spending to 5% of GDP by 2035, particularly in Europe.

The MSCI World Aerospace and Defense Index has delivered net returns of about 32% year-on-year, outperforming broader equity benchmarks.

Why is artificial intelligence holding up?

The AI sector has remained resilient despite wider economic uncertainty, supported by strong demand for computing infrastructure.

Taiwan Semiconductor Manufacturing Company reported first-quarter net income of $18.1 billion, up 58% from a year earlier, reflecting continued demand for advanced semiconductors.

Companies such as OpenAI and Anthropic are also pursuing plans to go public, signaling investor interest in the sector.

"Despite the shocks from the Iran war, we're still seeing resilience in a lot of sectors like artificial intelligence and renewable energy," said Nick Marro, lead analyst for global trade at the Economist Intelligence Unit.

How is the war affecting renewable energy?

Energy supply disruptions have accelerated investment in alternatives to fossil fuels.

Countries in Asia, many of which rely heavily on shipments through the Strait of Hormuz, are increasing support for solar, wind and nuclear power as part of energy security strategies.

"Boosted" renewable energy "given the urgency to switch away from fossil fuels and diversify towards renewable sources," said Nick Marro.

A report from the International Energy Agency said: "150 countries have active policies to advance renewable and nuclear deployment, 130 have energy efficiency and electrification policies, and 32 have policies to incentivise supply chain resilience and diversification across critical minerals and clean energy technologies."

The S&P Global Clean Energy Transition Index has risen nearly 71% year-on-year, reflecting increased policy backing and investor demand.

What is the broader outlook?

While these sectors are benefiting, economists warn that prolonged conflict and supply disruptions could continue to weigh on global growth, trade and energy markets, underscoring uneven economic effects from the war.

Bangladesh is unlikely to get US$1.3 billion, due in two tranches, within this fiscal year from the $5.5-billion credit programme with the International Monetary Fund (IMF), finance officials say.

The uncertainty has been created as the IMF is showing less interest in sending a review team now since many of the conditions binding the loan package remained unmet now, they add.

"Unless the finance minister and his team, who are now in Washington to attend spring meetings of the IMF and World Bank, can convince the IMF bosses to send a review mission now, the possibility to get the two installments of the loan is very bleak," a senior finance division official told the FE Wednesday.Investment Advisory Service

Sensing the IMF's stance regarding the loan disbursement, sources say, the finance division officials have suggested finance minister Amir Khosru Mahmud Chowdhury seek an additional $2.0 billion as emergency assistance from the IMF and the World Bank to offset the deficit created due to the crisis in the Middle East.

Mr Chowdhury on April 13 had separate meetings with IMF Executive Director Urjit Patel and World Bank Vice-President for South Asia John Jutt where he reportedly secured commitment from them for additional financing under the IMF's existing lending recipe.

However, after the meeting, the minister did not say any word to waiting journalists as to whether the due tranches under the credit programme will be available in time or not.

According to the finance officials, a number of conditions under the original $4.7-billion loan programme, which was later extended to $5.5 billion, remained unfulfilled, which forced the IMF to take decision to delay the release.

The IMF this January, after conclusion of Article IV Consultation with Bangladesh, said: "Weak revenue mobilisation, banking-sector vulnerabilities, incomplete implementation of the new exchange-rate framework, and elevated inflation are weighing on macroeconomic stability and growth prospects."Financial Daily Subscription

The IMF board of directors also observed an uneven programme performance and emphasised that decisive and sustained policy actions and bold reforms were needed to restore macroeconomic and financial stability and support the country's long-term development goals.

"The performance criterion on government revenue collection was missed by a wide margin. The authorities have yet to adopt a high-level reform strategy for restoring banking-sector stability, as was agreed at the 3rd and 4th combined review," it said.

Also, the IMF said Bangladesh Bank would need to adjust its forex-intervention practices to meet conditionality on the exchange-rate arrangement. "While the primary deficit target was met, this was achieved through significant cuts in capital and social spending."

Oil prices were little changed on Wednesday ​as investors assessed prospects for renewed US–Iran talks and the potential for supply to be released from the ‌Middle East, where exports remain constrained by the closure of the Strait of Hormuz.

Brent crude futures were up 43 cents, or 0.5 percent, to $95.22 a barrel at 0821 GMT, after falling 4.6 percent in the previous session. US West Texas Intermediate crude was down 17 cents, or 0.2 percent, to $91.11. The contract dropped 7.9 percent the ​session before.

The war has mostly shut the Strait of Hormuz, a key waterway for crude and refined product flows out ​of the Gulf to global buyers, particularly in Asia and Europe.

US President Donald Trump said talks with Tehran on ending the war could resume this week after ending over the weekend without any agreement.

But the US has also ​enacted a blockade of shipping leaving Iranian ports that its military said on Wednesday has completely halted trade going in and out of the ​country by sea.

Despite a two-week ceasefire, transit through the strait remains uncertain, with traffic at only a fraction of the 130-plus daily crossings that moved through the waterway before the war, sources said on Tuesday.

“The trajectory of oil prices will likely hinge less on battlefield developments and more on diplomatic momentum. Markets are ​increasingly reacting to headlines around negotiations rather than troop deployments,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.

“Each signal of renewed ​dialogue has been met with price declines, suggesting that traders are systematically unwinding the ‘war premium’ embedded into crude earlier this month.”

Refiners are desperately seeking alternative ‌crude supply, ⁠pushing up the premiums they are willing to pay for oil from areas such as the US Gulf Coast and North Sea. A cargo of WTI Midland for delivery to Rotterdam traded at a record premium of $22.80 a barrel above benchmark European prices on Tuesday.

A US destroyer stopped two oil tankers from leaving Iran on Tuesday, a US official said.

“The Strait of Hormuz is not Trump’s alone to reopen,” said SEB analyst ​Ole Hvalbye. “Iran has its own calculus, ​and the regime may find ⁠it strategically useful to keep flows restricted even after any peace deal, whether to extract reparations, guarantee security, or simply to inflict political pain ahead of the November US midterm elections.”

The market stands ​to lose some access to further supply after two US administration officials told Reuters on Tuesday the ​US will not renew ⁠a 30-day waiver of sanctions on Iranian oil at sea that expires this week, and quietly let a similar waiver on sanctions on Russian oil expire over the weekend.

Later in the day, markets will be watching for official US inventory data from the Energy Information Administration, due ⁠at 10:30 ​a.m. ET (1430 GMT).

US crude oil stockpiles were expected to have risen slightly last ​week, while distillate and gasoline inventories likely fell, a Reuters poll showed.

Market sources familiar with American Petroleum Institute figures said on Tuesday US crude oil inventories jumped for a third ​straight week.

President Donald Trump's administration plans to launch next Monday the system it will use for issuing refunds to American importers for $166 billion the companies paid in tariffs that ‌the U.S. Supreme Court struck down in February as unlawful.

U.S. Customs and Border Protection said in a court filing on Tuesday that it has completed the development of the initial phase of the refund system, known as CAPE. The system will consolidate refunds so importers will receive one electronic payment, with interest when applicable, rather than processing refunds on an entry-by-entry basis.

Agency official ⁠Brandon Lord made the declaration in the filing with the New York-based Court of International Trade. The agency disclosed the CAPE launch date in a separate announcement on Friday.

The Supreme Court ruled that Trump overstepped his authority in imposing sweeping global tariffs under the International Emergency Economic Powers Act, a 1977 law meant for use in national emergencies.

Tuesday's filing said that as of April 9 some 56,497 importers had completed the process to receive electronic refunds for tariffs affected by the court's ruling, an amount totaling $127 billion.

The agency has said it plans to roll out the refund system in ‌phases.

Lord ⁠said in his declaration that the agency is considering options for processing refunds on a subset of entries that were subject to $2.9 billion in tariffs. Lord said these normally would require manual processing, which would dramatically increase the workload and divert personnel from the agency's trade operations and enforcement.

After the Supreme Court's decision, ⁠importers sued for refunds in the Court of International Trade, which is monitoring the development of the refund system.

More than 330,000 importers paid the tariffs at issue on 53 million shipments of imported goods, according to court ⁠documents.

Customs and Border Protection has said the CAPE system will initially process refunds on recently imported goods and straightforward entries.

Many smaller importers feared the cost of the refund process would outweigh the ⁠benefits of trying to get reimbursed, forcing some companies to explore creative financing options related to refunds.

Trump denounced the Supreme Court after its ruling and imposed a new temporary global tariff under a different law, though that also has been challenged in court.

While the World Bank and Asian Development Bank had lowered Bangladesh’s GDP growth forecast due to the Persian Gulf crisis and domestic vulnerabilities, the International Monetary Fund has kept its earlier projection unchanged.

The IMF’s World Economic Outlook released on Tuesday projects Bangladesh’s GDP growth at 4.7 percent for FY2025-26, which was the same as its earlier projection from January.

However, IMF’s growth projection is set to dip further to 4.3 percent in the next fiscal.

The World Bank revised its projection down to 3.9 percent growth from 4.6, while the ADB revised its forecast down to 4 percent from its previous projection of 4.7 percent.

Former World Bank lead economist Zahid Hussain told The Daily Star that the IMF’s forecast “appears rather strange,” adding that “it is the same as projected in their Article IV report released in January 2026.”

The absence of any impact of the war in the current fiscal year is inconsistent with their own assumption that economies with vulnerabilities and limited buffers are likely to be hit hardest. Bangladesh is one such economy.

He also said individuals and firms in Bangladesh have been living with the growth and inflation impacts ever since the war started. There is no reason in fact or logic to believe Bangladesh will remain insulated from the impact of the war for four months.

Hussain noted that the IMF’s 4.3 percent growth projection for FY27 is more realistic if its reference scenario, in which the war shock fades by June, materialises.

The government, however, remains confident, insisting that GDP growth will reach 5 percent in 2026.

The ongoing Middle East conflict is severely disrupting production in the garment sector due to energy shortages, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Mahmud Hasan Khan said yesterday.

He made the statement at a meeting with Commerce Minister Khandakar Abdul Muktadir at the minister’s office in Dhaka, where he led a BGMEA business delegation.

Khan said the sector is facing a crisis due to global economic instability, the impact of the Middle East conflict, and severe gas and electricity shortages in the country, according to a BGMEA statement after the meeting.

He also said rising raw material prices and higher production costs have further worsened the situation.

In such a difficult time, strong policy support from the government and a business-friendly environment are essential to stay competitive in the international market, he added.

Khan also spoke about the RMG Sustainability Council (RSC), saying it was formed mainly to address future industry challenges, including monitoring building, fire, and electrical safety standards.

However, he said that social compliance issues such as wages and trade unions are not within its core responsibility.

Khan added that expanding its role into these areas would create extra administrative and financial burdens on the industry, which is not desirable.

He also stressed that any decision in this regard must be made in line with stakeholders’ views and national laws, the statement read.

During the meeting, the BGMEA chief called for an amendment to the current import policy to simplify the import of raw materials on a free of cost (FOC) basis.

He also requested a revision of relevant clauses in the Import Policy Order to remove the requirement for bond licences when supplying goods from bonded exporters to non-bonded direct exporters.

BGMEA leaders urged the withdrawal of the existing 10 percent income tax deduction on cash incentives to boost garment exports.

They also called for normalising trade relations with India and removing barriers to yarn imports and product exports through land ports.

To further speed up garment exports, they proposed amending relevant sections of the Import Policy 2024-2027 and automating the process for determining CIP (Commercially Important Person) status for industry entrepreneurs.

The minister acknowledged the importance of the sector as the country’s leading foreign currency earner in the current global context.

He assured that the government would provide necessary policy support to address challenges and maintain Bangladesh’s competitiveness in the global market, the statement added.

Prime Minister Tarique Rahman today sought a US$ 2 billion fund from development partners to meet Bangladesh’s immediate energy needs and safeguard economic stability amid the ongoing global energy crisis.

“The situation before us demands urgency, solidarity, and decisive action. Immediate support for the most vulnerable countries must be at the top of our collective agenda,” he said while addressing the Asia Zero Emission Community (AZEC) Plus Online Summit.

“We urge the international community to respond swiftly and positively to this call,” he added.

The prime minister said the energy crisis is a stark reminder of the shared vulnerability and interdependence of countries, regardless of size or strength.

He stressed that Asia requires a coordinated and forward-looking response to strengthen energy security, address immediate supply disruptions, and support the most vulnerable nations.

Tarique said the crisis has already disrupted Bangladesh’s economy. “In response, we have taken a range of short-term measures to contain the impact,” he said.

These measures include demand-side management through the rationing of government office and market hours; stabilising fuel supplies through emergency imports and diversified sourcing; and consumption controls, including fuel rationing and limits on retail sales to prevent hoarding and panic buying through initiatives such as the "Fuel App".

He warned that the scale and consequences of the crisis could exceed those of the 1970s oil shock, which triggered a decade of stalled development in the 1980s.

Since independence in 1971, he said, Bangladesh has worked relentlessly to drive economic growth, lift millions out of poverty, and improve living standards.

“Today, these hard-earned gains are in danger of being reversed,” he added.

Tarique Rahman said Bangladesh is not alone in facing this risk, nor can it overcome the challenge through national efforts alone.

“This moment calls for decisive and coordinated global action to contain the impact of the ongoing energy crisis, particularly to protect vulnerable countries, including the Least Developed Countries (LDCs), from severe economic and social consequences,” he said.

He also thanked Japanese Prime Minister Sanae Takaichi, who delivered the concluding remarks, for convening the timely summit.

Leaders from Malaysia, the Philippines, Singapore, Thailand, Vietnam, Timor-Leste, Japan, and other countries took part in the online meeting.

The prime minister delivered his speech from his Sangsad Bhaban office. Foreign Minister Khalilur Rahman and Foreign Affairs Adviser M Humayun Kabir were also present.

Bangladesh Bank (BB) has resumed purchasing US dollars from the market after one and a half months, driven by higher inflows than outflows amid strong remittance earnings.

Yesterday, the central bank bought $70 million from Islami Bank Bangladesh at a cut-off rate of Tk 122.75 per US dollar.

Earlier, on March 2, BB purchased $25 million from two commercial banks through multiple auction methods.

During the 2025-26 fiscal year, total US dollar purchases stood at $5.56 billion, according to BB data.

Remittance inflows reached an all-time high of $3.75 billion in March, as Bangladeshis working abroad sent increased amounts to their families ahead of Eid-ul-Fitr.

In addition, remittance inflows stood at $1.60 billion between April 1 and April 14 this year, up 25.2 percent year-on-year, data showed.

The banking regulator began purchasing dollars at the start of the current fiscal year as supply increased, supported by higher export earnings and remittance inflows.

However, between FY21 and FY25, Bangladesh Bank sold more than $25 billion from its foreign exchange reserves to meet import payments for fuel, fertiliser, and food.

Due to BB’s recent dollar purchases, gross foreign exchange reserves rose to $34.87 billion yesterday, up from $34.60 billion two days earlier.

Demand for crude oil will likely decline this year for the first time since the Covid pandemic slammed the global economy six years ago, weighed down by Mideast war disruptions, the IEA warned Tuesday.

Surging prices caused by the Strait of Hormuz’s closure and damage to production facilities will force countries and industries to curtail oil use, and “demand destruction will spread as scarcity and higher prices persist”, the International Energy Agency said in its monthly report.

It noted that its forecasts assume a “base case” of oil shipments resuming in May through Hormuz, which Tehran has effectively closed since the US and Israel began bombing Iran on February 28.

This would lead to a decline in demand of 1.5 million barrels per day (bpd) in the second quarter, “the sharpest since Covid-19 slashed fuel consumption”, the agency said.

Overall demand is forecast to have contracted by 800,000 bpd in March and is seen dropping by 2.3 million bpd in April.

Surging prices caused by the Strait of Hormuz’s closure and damage to production facilities will force countries and industries to curtail oil use
But a “protracted case” if the Strait of Hormuz remains closed would lead to persistently high prices that crimp demand by an even higher average of five million bpd through the rest of this year.

“In this case, energy markets and economies around the world need to brace for significant disruptions in the months to come,” the agency warned.

Global oil use is expected to fall over 2026 as a whole as a result of the Hormuz closure and the destruction of energy infrastructure across the Gulf from retaliatory Iranian attacks.

The IEA now sees a demand drop of 80,000 bpd this year, compared with its previous forecast of growth of 730,000 bpd.

It called it “the largest disruption in history” to the market and cautioned that with “the prospects for a lasting negotiated settlement to the conflict still unclear”, the economic pain could be worse.

Already the supply cuts took more than 360 million barrels off the market in March, a figure expected to rise to 440 million barrels for April.

Oil supplies overall plunged to 97 million bpd in March, down by 10.1 million bpd as the Mideast fighting rocked the market.

Oil prices have nearly doubled since the Mideast war began and remain near $100 a barrel, with prices of refined products like petrol and jet fuel rising even higher.

Many governments have already imposed measures to conserve use, but if the fighting continues “energy markets and economies around the world need to brace for significant disruptions in the months to come”.

Countries are also tapping into crude stock reserves to soften the blow from lost Gulf exports, and inventories fell by 85 million barrels overall in March.

IEA executive director Fatih Birol has repeatedly said the agency stands ready to approve the release of more reserves if needed.

But some analysts say energy traders are increasingly betting that neither Iran nor the United States want the war to continue, and are banking on talks producing a ceasefire.

Kathleen Brooks, research director at the investing platform XTB, said that even though tensions are high, “the market is comfortable that this war has entered a new stage, one that will lead to the end of fighting and a pathway to reopening the waterway”.

Bangladesh-based agri-tech startup iFarmer has secured $1.5 million in foreign funding as it aims to strengthen the country’s agricultural value chain.

The funding comes from Symbiotics, a Switzerland-based market access platform for impact investing, according to a statement.

The investment will support iFarmer’s working capital requirements, enabling it to expand agricultural input distribution and strengthen market linkages for farmers across Bangladesh.

iFarmer said the investment marks another important milestone, as international investors continue to back technology-driven agricultural platforms that improve efficiency, transparency, and access to financing in emerging markets.

Bangladesh’s agriculture sector employs nearly 40 percent of the workforce and contributes significantly to the national economy, supporting around 25 million farmers across 17 million farms and accounting for about 12 percent of the country’s gross domestic product (GDP). However, farmers continue to face challenges related to financing, input quality, and market access.

iFarmer is addressing these challenges by building an integrated agricultural platform that connects farmers, retailers, suppliers, and institutional buyers through financing, digital advisory, input supply, and output market linkages.

With this new financing from Symbiotics, iFarmer will expand its agri-input distribution platform, KriShop, and strengthen its supply chain operations to ensure farmers have access to quality inputs and reliable market access for their produce, according to the statement.

The funding will also support iFarmer’s broader platform operations that connect farmers directly with large buyers, improving efficiency across the agricultural value chain.

Founded in 2019, iFarmer has grown into one of Bangladesh’s leading agri-fintech platforms, currently working with over 300,000 farmers and 24,000 agricultural retailers across the country.

The company combines embedded finance, digital advisory, input supply, and market linkage services into a single platform designed to increase farmers’ income and improve agricultural productivity.

Fahad Ifaz, co-founder and CEO of iFarmer, said, “This partnership with Symbiotics is an important step in our journey to build the digital and financial infrastructure for agriculture in Bangladesh.”

“Access to working capital is critical for scaling agricultural supply chains. With this investment, we will be able to expand our operations, reach more farmers and retailers, and strengthen market linkages across the agricultural ecosystem.”

“We believe this is just the beginning, and we look forward to working with more global partners who want to invest in building the future of agriculture in emerging markets.”

Aldric Luyt, head of fintech at Symbiotics, said, “This investment reflects our commitment to supporting underserved agricultural communities in Bangladesh. iFarmer’s innovative model improves supply chain efficiency and expands economic opportunities. Our investment will help scale their impact, contributing to more resilient and sustainable food systems.”

The International Monetary Fund (IMF) has advised Bangladesh to withdraw all forms of tax exemptions, covering income tax, value-added tax (VAT), and customs duties, starting from the next national budget (FY2026-27).

Alongside ending tax exemptions, the IMF has also pressed for the reduction of supplementary duties imposed at the import stage.

The recommendation was raised during discussions at the Annual and Spring Meetings of the International Monetary Fund and the World Bank Group held in Washington, DC, sources at the National Board of Revenue (NBR) said.

A senior NBR official, speaking on condition of anonymity, told The Business Standard, "At the ongoing meetings, the IMF asked that all types of tax expenditure be withdrawn."

Another Bangladeshi representative in Washington said the IMF was urging the government to withdraw a large share of tax exemptions in the upcoming budget.

An official from the Bangladeshi delegation attending the IMF board meetings told TBS, requesting anonymity, that the lender had taken a positive stance on Bangladesh's request for additional budget support to help meet rising fuel import costs.

However, the size of the potential new loan and its conditions have yet to be finalised.

The official said the Bangladeshi delegation, led by Finance Minister Amir Khosru Mahmud Chowdhury, held separate meetings with IMF officials seeking the release of about $1.53 billion by June, including overdue instalments under the existing loan programme as well as fresh financing.

"During the discussions, the IMF maintained a firm position on implementing two key conditions of the main loan agreement," the official said.

"The conditions include cancelling all tax exemptions alongside tariff rationalisation, and withdrawing energy subsidies for gas and electricity while bringing low-income groups under social safety net programmes. If these conditions are implemented, the IMF is ready to release the funds within the current fiscal year," the official added.

The official added that the IMF also reiterated its call for Bangladesh to move towards a fully market-based exchange rate.

Officials from the Bangladesh Bank told the IMF that the country intends to gradually move towards a fully market-driven exchange rate in order to maintain economic stability.

The meetings, which began on 13 April, are scheduled to conclude on 18 April. Senior officials from the finance ministry are attending alongside NBR chairman Abdur Rahman Khan.

Wide range of exemptions currently in place

The government currently provides VAT, tax and import duty exemptions on most agricultural and food products. Some goods also enjoy partial exemptions.

Essential services such as education and healthcare also benefit from tax relief. Exemptions are also available for certain essential sectors, including fuel and electricity.

In addition, to encourage investment and job creation, the government offers income tax, VAT and customs duty exemptions for investors in export processing zones, economic zones and hi-tech parks. Export-oriented industries also receive tax incentives.

Remittances are fully exempt from tax to encourage overseas earnings. Bangladesh received more than $30 billion in remittances in the 2024-25 fiscal year, while export earnings stood at nearly $50 billion.

Tax exemptions – defined as the difference between standard tax or VAT rates and the amount actually collected due to concessions – represent a large fiscal cost.

According to the latest data from the NBR, tax exemptions in income tax, VAT, and customs duties amounted to about Tk2.66 lakh crore in the 2022-23 fiscal year. In comparison, total government revenue collection in that year stood at Tk3.25 lakh crore.

In 2022, during the tenure of the Awami League government, Bangladesh secured a $4.7 billion loan programme from the IMF. Of this amount, roughly $3 billion has already been disbursed in instalments.

However, the lender later suspended further disbursements toward the end of the interim government's tenure, citing slow progress in implementing reform measures under the programme.

Negotiations over the release of remaining funds resumed after a new government led by the BNP took office.

Experts warn against abrupt withdrawal

Economists say that while reducing tax exemptions is necessary, eliminating them entirely may not be feasible in the short term.

They warn that withdrawing exemptions across the board in line with IMF recommendations could increase tax burdens in several sectors. This could affect both wealthy and low-income groups directly and indirectly, potentially fuelling inflation.

Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue (CPD), said removing all exemptions within a year would not be reasonable.

He warned that such a move could undermine the confidence of both local and foreign investors in government policy.

"The government should plan to withdraw these benefits through sunset clauses, which the NBR has already begun implementing," he said. "However, the entire exemption framework should first be reviewed before decisions are made."

Mustafizur noted that some sectors have enjoyed tax exemptions and incentives for more than 50 years.

"In some cases, individuals or groups have obtained exemptions through influence. These should not continue indefinitely," he said, adding that exemptions should be streamlined by lowering tax or VAT rates.

Towfiqul Islam Khan, an additional director at CPD, said the government needs stronger fiscal discipline and should align incentives with the country's graduation plan from the UN's least developed country status.

"Tax exemptions should be reduced gradually and according to a clear plan, particularly in sectors such as poultry, fisheries, agriculture and remittances," he said. "The principle should be simple – those who earn should pay tax."

Risks of abrupt policy shifts

Snehasish Barua, managing director of SMAC Advisory Limited, warned that an abrupt withdrawal of tax exemptions could trigger economic shocks.

"The sudden withdrawal of tax exemptions risks triggering an acute macroeconomic shock. Such an abrupt policy shift could destabilise capital markets, cripple RMG export competitiveness and fuel immediate cost-push inflation," he told The Business Standard.

"Moreover, it threatens to deter foreign direct investment, stifle the burgeoning digital economy and spark widespread corporate compliance crises."

He added that investors allocate capital based on established statutory frameworks and that removing incentives without a transition period could erode trust in fiscal policy.

"To navigate this necessary reform, a phased and predictable transition is vital. The government must rigorously audit all active tax exemptions to guarantee they deliver tangible strategic value," he said. "Moving forward, every tax expenditure must be tied to specific, measurable criteria, undergo stringent annual reviews and be bound by a mandatory sunset clause."

Govt signals shift in approach

While indicating a move away from the blanket tax exemptions granted by previous governments, the new administration has said it plans to introduce performance-based incentives.

Speaking to reporters after a meeting at the NBR on 29 March, the prime minister's adviser on finance and planning, Rashed Al Mahmud Titumir, said, "The target would be met by accelerating economic activity through higher investment and employment, alongside structural and policy reforms; curbing tax evasion and fraud; and shifting from blanket tax exemptions and rebates to performance-based incentives."

According to NBR data, VAT exemptions currently apply to several products and raw materials under 53 different categories, most of which involve agricultural and food items.

Nine essential services related to basic needs – including social welfare, cultural activities, financial services, transport services and certain personal services – are also fully exempt from VAT.

The standard VAT rate currently stands at 15%.

Under the third schedule of the VAT law, reduced VAT rates are applied at different stages of production and supply for several goods.

At the import stage, many goods and services face substantial supplementary duties, in some cases reaching as high as 500%.

Experts say such high supplementary duties create uneven competition in the market and increase costs for consumers. The IMF has also urged Bangladesh to reduce these duties and make the tariff structure more rational.

The government does not want to dictate the Bangladesh Bank’s actions under any circumstances, said Rashed Al Mahmud Titumir, the prime minister’s adviser on finance and planning.

“We do not want to dictate the central bank’s actions in any way. Our approach is to ensure coordination between fiscal and monetary policy,” he said.

“The central bank will listen to stakeholders, including you (businesses), and take appropriate actions independently.”

Titumir made the remarks yesterday at a discussion on synergising the banking sector from the lender and borrower perspectives, organised by the Dhaka Chamber of Commerce and Industry (DCCI) in the capital.

He stressed that reviving closed industries and expanding existing ones would be key to restoring economic momentum.

“Reviving closed factories is fundamental. This is how we bring dynamism back into the economy and generate employment,” he said.

Regarding efforts to tame inflation, Titumir said that the government is prioritising the people’s interests.

During the Ukraine war, despite fluctuations in global gas prices, the previous (Awami League) government repeatedly raised fuel prices, he said, shifting the burden onto citizens amid what he described as economic mismanagement and capital flight.

However, with a strong public mandate, the present government is prioritising easing pressure on people’s livelihoods, Titumir claimed, which is why fuel prices have not been increased despite external pressures.

Speaking on the upcoming national budget, he said the government is preparing a set of measures aimed at supporting micro, small, and medium enterprises (SMEs), which remain central to employment generation.

“These measures may include stimulus support, tax reforms, and the creation of joint financing funds,” he said.

DCCI President Taskeen Ahmed said the country’s industrial sector is going through a highly challenging period due to the prolonged absence of a business-friendly environment.

“There are several reasons for this, including declining production, rising outstanding loans in the industrial sector, a high rate of non-performing loans, reduced credit flow to the private sector despite no liquidity shortage, and increased government borrowing from the banking sector,” he said.

To address the situation, he stressed the need for structural reforms in the banking sector to ensure stability and good governance, as well as strengthening coordination between the banking and private sectors.

Ahmed said that the public sector credit growth has surged to an unprecedented 26.15 percent. Meanwhile, government borrowing from the banking system reached Tk 73,035 crore during the July-January period, a 673 percent increase compared to the same period last year, indicating that banks are increasingly prioritising risk-free lending.

“This trend has created a severe ‘credit crowding out’ effect, leaving the private sector deprived of adequate access to credit.”

He noted that many businessmen and SMEs are suffering because of a small number of wilful defaulters.

Nawshad Mustafa, director of the SME and Special Programmes Department of Bangladesh Bank, said a key challenge in the financial sector is the shortage of authentic and accurate data, which hampers effective decision-making.

He stressed the need for stronger AI-based connectivity among financial institutions and government agencies to improve data flow and policy formulation.

Abdul Hai Sarker, chairman of Bangladesh Association of Banks (BAB), said there is no alternative to simplifying SME financing, noting that private banks are now increasingly stepping in to fund the sector.

He also pointed to a lack of coordination between policymakers and stakeholders, which he said needs to be addressed.

Prime Minister Tarique Rahman said today (15 April) Bangladesh is seeking a $2 billion fund from development partners to help overcome the energy crisis and stabilise the economy

"The situation before us demands urgency, solidarity and decisive action," he said while addressing the Asia Zero Emission Community (AZEC) Plus Online Summit.

The prime minister said immediate support for the most vulnerable countries must be at the top of the collective agenda of the summit.

"In this regard, Bangladesh is seeking to mobilise $2 billion from development partners to meet our immediate energy needs and safeguard our economic stability. We urge the international community to respond swiftly and positively to this call," he said.

The prime minister said the current global energy crisis is a stark reminder of global communities' shared vulnerability and interdependence.

No nation – regardless of its size or strength – can overcome this challenge in isolation, he said, adding that it demands a coordinated and forward-looking Asian response to strengthen regional energy security, address immediate supply disruptions, and support the most vulnerable countries.

"The energy crisis has already disrupted Bangladesh's economy. In response, we have taken a range of short-term measures to contain the impact," Tarique said.

He said the measures include demand-side management through the rationing of government office and market hours; stabilisation of fuel supplies through emergency imports and diversification of sourcing; and consumption controls, including fuel rationing and limits on retail sales to prevent hoarding and panic buying through initiatives such as 'Fuel App'.

The prime minister said Bangladesh is concerned that the scale and consequences of this crisis could exceed those of the 1970's oil shock, which triggered a decade of stalled development in the 1980s.

Since gaining independence in 1971, he said Bangladesh has worked relentlessly to drive economic growth, lift millions out of poverty, and improve the quality of life for its people. "Today, these hard-earned gains are in danger, facing the real threat of reversal."

The prime minister said Bangladesh is not alone in facing this risk, nor can the country overcome it through national effort alone.

"This moment calls for a decisive and coordinated global action, to contain the impact of the ongoing energy crisis, particularly to protect vulnerable countries, including the Least Developed Countries (LDCs), from its severe economic and social impact," he said.

Tarique Rahman appreciated Japanese Prime Minister Sanae Takaichi for convening this timely and important Summit.

Tarique Rahman addressed the AZEC Plus Online Summit from his Bangladesh Parliament Secretariat office.

Bangladesh Foreign Minister Khalilur Rahman and PM's Foreign Affairs Adviser Humayun Kabir were present.

Heads of state and governments of various countries, including Prime Minister of Japan Sanae Takaichi, also virtually spoke on the occasion.

Heads of the government and the representatives of different countries, including India, Sri Lanka, the Philippines, Malaysia, Singapore, Thailand, Vietnam, Timor-Leste, the Republic of Korea (ROK), Australia, Brunei, Cambodia and Indonesia, participated in the online summit.

The organisations from which representatives joined the session are International Energy Agency (IEA) and Asian Development Bank (ADB).

Uber has committed more than $10 billion to buying thousands of autonomous vehicles and taking stakes in their developers, breaking from its asset-light "gig economy" business model to avoid disruption from robotaxis, the Financial Times reported on Wednesday.

Reuters could not immediately verify the report. Uber did not immediately respond to a Reuters request for comment.

Uber is positioning itself as a marketplace for multiple robotaxi operators, and has partnered across much of the autonomous vehicle industry, including with Baidu, Rivian and Lucid, and has outlined plans to launch robotaxi services in at least 28 cities by 2028.

These deals put Uber on track to invest more than $2.5 billion in equity stakes and spend over $7.5 billion on robotaxi fleets in the next few years, FT reported, citing its calculations based on analyst estimates and people familiar with Uber's deals. The agreements are contingent on its partners hitting certain deployment milestones.

Interest in driverless taxis has surged in recent months after years of missed promises, with artificial intelligence and tech partnerships offering hopes of solving complex traffic scenarios faster and mitigating high costs.

Japanese Prime Minister Sanae Takaichi, after holding a video conference with leaders from Southeast Asia, told reporters that the assistance, dubbed "Power Asia," is aimed at providing loans needed to secure crude oil, petroleum products, and to maintain the supply chain in an emergency response to help hard-hit nations.

The fund also aims to expand an oil reserve system within Asia, diversify energy, and promote energy conservation and industrial advancement, Takaichi said.

Japan, which imports petroleum-related products such as medical supplies from Southeast Asia, is increasingly worried that the region's oil supply shortages would affect the Japanese economy.

The fund is one year's worth of oil imports for the Association of Southeast Asian Nations member countries, or about 1.2 billion barrels, Takaichi said. The assistance is not meant to just provide oil, but for Asian nations to support each other.

The capital bourse returned to positive territory today as opportunistic investors stepped in for bargain hunting, seeking undervalued stocks after the previous session's decline.

The benchmark DSEX index of the Dhaka Stock Exchange (DSE) rose by 24 points to close at 5,254, signalling a cautious recovery amidst an evolving global geopolitical landscape.

Market insiders said while the market displayed resilience, participants remained intently focused on the ongoing developments regarding ceasefire negotiations in the Middle East conflict, which continues to influence broader investor sentiment.

The day's trading session was characterised by range-bound movement, with active participation on both the buying and selling sides. However, buying momentum ultimately prevailed, leading to a broad-based price appreciation across the majority of the traded scripts, they continued.

According to the daily market review by EBL Securities, the market's upward trajectory was tempered by cautious selling in certain large-cap stocks, which prevented a more significant rally.

The blue-chip DS30 index followed the benchmark's lead, inching up by 3 points to settle the day at 1,984.

Market participation showed signs of improvement as total turnover at the DSE surged by 5% to reach Tk836 crore, compared to the previous session.

The market breadth also remained strongly positive, with 239 issues advancing, 90 declining, and 64 remaining unchanged out of the 393 securities traded.

Key index pullers that contributed to the day's gains included Beximco Pharmaceuticals, BRAC Bank, Beacon Pharmaceuticals, Best Holdings, and Asiatic Laboratories.

On the sectoral front, the engineering sector continued to dominate market activity, accounting for 21.2% of the total turnover. This was followed by the pharmaceutical sector with an 11.0% share and the general insurance sector at 10.7%.

In terms of returns, the ceramic sector led the gainers with a 3.4% increase, followed by the travel and information technology sectors, which exhibited returns of 2.9% and 1.6%, respectively.

On the other hand, the banking sector saw a marginal correction of 0.3%, while the cement and food sectors also experienced slight declines.

Individual stock performance saw Coppertech Industries Limited topping the gainers' list with a 10% price hike, followed closely by Mir Akhter Hossain Ltd at 9.90%. Other notable gainers included Meghna Pet, National Polymer, and Prime Finance First Mutual Fund.

Conversely, SEML IBBL Shariah Fund emerged as the top loser, shedding 3.22% of its value, followed by Bank Asia and CAPM BDBL Mutual Fund.

In terms of liquidity, Khan Brothers PP Woven Bag emerged as the turnover leader, with City Bank, Acme Pesticides, Lovello Ice-cream, and Mir Akhter Hossain Ltd also seeing significant trading volume.

The bullish sentiment was mirrored at the Chittagong Stock Exchange where the key indices also posted gains. The CSCX inched up by 12 points to reach 9,038, while the CASPI rose by 23 points to close at 14,756.

However, unlike the premier bourse, the port city exchange witnessed a significant 41% drop in turnover, which stood at Tk24 crore.

Eastern Bank PLC (EBL) has reached a significant milestone in its financial journey, posting a record standalone profit after tax of Tk901 crore for the year 2025.

This achievement represents a robust 20% year-on-year growth, underscoring the bank's consistent earnings momentum and a resilient business model that has successfully navigated an increasingly challenging operating environment, according to a press release.

The bank's board of directors, in a meeting held today (15 April), approved the annual audited financial statements and recommended a generous payout for its shareholders.

The board proposed a 25% cash dividend and a 3% stock dividend for the year ending December 2025, a shift from the previous year's distribution of 17.5% cash and 17.5% stock.

On a consolidated basis, which includes the performance of its subsidiaries, the bank's net profit after tax reached Tk834 crore, marking an even more impressive growth of 26% compared to the previous year.

To finalise these recommendations and review the year's performance, the bank has scheduled its Annual General Meeting (AGM) for 11 June, with 6 May set as the record date for determining shareholder eligibility.

The record-breaking profitability is the culmination of a half-decade of steady growth; EBL's consolidated profit has climbed consistently from Tk480 crore in 2021 to the current Tk834 crore, reflecting a clear trajectory of sustainable value creation.

The bank's strong bottom line was driven by prudent balance sheet management and disciplined risk practices, said the bank in its statement.

Throughout 2025, EBL continued to deliver robust growth across all its key financial indicators. Total deposits rose by 21.6% to reach Tk55,645 crore, while loans and advances increased by 16.1% to settle at Tk47,704 crore by the end of the year.

Perhaps the most striking growth was observed in the bank's investment portfolio, which recorded a significant surge of 47.8%, reaching Tk21,147 crore. This surge highlights the bank's strategic move to optimise its asset allocation in a fluctuating market.

Asset quality remains the strongest pillar of EBL's operational success. While the broader banking industry in Bangladesh has struggled with high levels of defaulted loans – averaging around 30.60% – EBL has managed to bring its non-performing loan (NPL) ratio down to just 2.24%. This figure reflects a level of credit discipline and risk management that is rare in the local market, according to the press release.

Furthermore, the bank maintained full compliance with all regulatory requirements, including BASEL III liquidity standards, ensuring it remained well-capitalised and resilient against potential economic shocks.

This financial stability is reflected in the bank's solo earnings per share (EPS), which rose to Tk5.65 from a restated Tk4.70 in 2024, and its solo net asset value (NAV) per share, which increased to Tk31.86 from Tk27.16.

The bank's profitability indicators also showed sustained strength, with the return on equity (ROE) improving to 19.13% from 18.57% in the previous year. Efficiency remained a priority, as evidenced by a cost-to-income ratio of 40.36%, which is among the lowest in the industry.

To further support future growth and institutional resilience, the bank enhanced its capital base, with the solo capital to risk-weighted assets ratio (CRAR) increasing to 15.49% from 15.11% in the prior year.

As EBL heads into 2026, its record performance reaffirms its position as a market leader, well-equipped to advance its strategic priorities while maintaining a focus on sustainable growth and long-term value for its stakeholders, read the press release.

The Bangladesh Export Processing Zones Authority (Bepza) wants to establish two new export processing zones in Rangpur and Sirajganj to increase industrialisation in the north and encourage the use of solar energy, officials announced yesterday as they celebrated the organisation's 46th anniversary.

Since its inception under the Prime Minister's Office, the organisation has made a substantial contribution to the nation's economic development, and analysts have noted its ongoing influence on social and economic advancement.

Bepza Executive Chairman Major General Mohammad Moazzem Hossain said, "Currently, besides eight operational EPZs and two economic zones, new EPZs are being implemented in Jashore and Patuakhali, and EPZs in Rangpur and Sirajganj are in the planning stage. Once implemented, the geographical spread of the country's industrialisation will increase further."

Sources said 450 acres of land under Rangpur Sugar Mill in the Sahebganj area of Gobindaganj have been already handed over to Bepza for EPZ. It is anticipated that the establishment of an EPZ will provide jobs for more than a lakh people.

The Bepza Act was passed in 1980, and the organisation formally began operations on 15 April 1981 through a gazette notification, marking a new phase of planned industrialisation.

Beyond readymade garments, EPZs now produce car parts, electronics, camera lenses, wigs, shoes and bicycles. Only 32% of factories produce garments, while 68% represent diversified industries.

ASM Anwar Parvez, executive director (public relations), told TBS, "By attracting domestic and foreign investment, increasing exports through diversification of export products, and creating employment, the zones under Bepza's management are making unique contributions to the country's industrial sector.

"The total area of the eight EPZs and Bepza Economic Zone is only 3,550.33 acres or 14.37 sq-km, which is less than 0.001% of the country's total area. From this small land, Bepza contributes about 15-20% of total exports every year. In the fiscal 2024-25, the contribution was 17.03%."

He added, "In the last 45 years, Bepza has attracted $7.29 billion in investment and exported goods worth over $125 billion. Currently, around 5.5 lakh people are employed, a large portion of whom are women. This employment drives economic growth and supports social change and women's empowerment."

Following the success of eight EPZs, Bepza began establishing the Bepza Economic Zone in 2018 at Mirsharai in Chattogram, where exports have already started. The zone has drawn strong interest from investors and become a key industrial hub.

Eight companies are in production there, five are in trial production, and 34 are under implementation. Bepza has also started developing EPZs in Jashore and Patuakhali, with plot allocation expected within this year.

At an event marking "Bepza Day 2026" yesterday, Moazzem Hossain said, "Bepza has been making important contributions to the country's economic development for the last 45 years. This contribution is not limited to attracting investment and exports, but has also brought marginal communities into the mainstream through employment creation and made them self-reliant."

"Besides, Bepza is playing a pioneering role in worker welfare by establishing modern hospitals and schools in Bepza zones," he added.

The government has begun drafting a five-year strategic framework that targets economic growth of 6.2% in the 2026-27 fiscal year, up from a projected 5% in FY26, as it seeks to stabilise the economy and shift towards investment-led growth.

The proposed framework, presented at the first meeting of an advisory committee chaired by former planning adviser Wahiduddin Mahmud, sets out a gradual rise in growth over the following years, with targets of 7.1% in FY28, 7.5% in FY29 and 8% in FY30.

The plan also aims to increase total investment to 36.7% of gross domestic product by FY30, while reducing inflation to 5% by the period.

A projection presented at the first meeting of an advisory committee chaired by former planning adviser Wahiduddin Mahmud forecast a gradual depreciation of the taka against the US dollar over the current fiscal year and the following four years.

According to the General Economics Division, the exchange rate could rise to Tk126.3 per dollar in the current 2025-26 fiscal year, followed by Tk131 in FY27, Tk134.9 in FY28, Tk138 in FY29 and Tk140 in FY30.

The government plans to introduce a 180-day action plan covering exchange rate rationalisation, stabilisation of energy supply and fast-track reforms to business licensing.

A one-year programme will include restructuring of the financial sector, creation of an integrated social protection platform and expansion of financing for small and medium-sized enterprises.

Over the five-year period, the government intends to pursue industrial diversification, universal social protection and regional economic transformation.

Speaking yesterday (15 April), Prime Minister's Adviser on Finance and Planning Rashed Al Mahmud Titumir said the initial measures under the plan would be implemented up to FY30 and would focus on economic recovery and stability.

"The rehabilitation process is also expected to be completed within the next year," he said.

Documents presented at the meeting showed that the framework seeks to raise capital productivity, create nearly one crore jobs across different sectors and increase revenue collection to 10% of GDP.

The first five-year plan of the BNP government will include proposals to develop Chattogram as the country's commercial capital, establish a pension fund for the private sector, introduce unemployment benefits and provide interest-free loans to small enterprises and cottage industries.

The plan also proposes waiving agricultural loans of up to Tk10,000 taken from non-governmental organisations.

The government has set a longer-term target of building a $1 trillion economy by 2034 and increasing foreign investment to 2.5% of GDP.

The framework identifies information and communication technology, the blue economy and renewable energy as the main drivers of future growth.

It aims to ensure that at least 20% of total electricity generation comes from renewable sources by FY30.

The plan also includes a target of creating around one crore jobs and recruiting five lakh people into government service through merit-based appointments.

In the social sector, the government plans to introduce a "Family Card" programme for around four crore vulnerable households.

It also intends to raise public spending on health and education gradually to 5% of GDP.

The proposed framework includes a number of governance reforms, including a 10-year limit on the tenure of a prime minister, the introduction of a bicameral parliament with an upper chamber of 100 members and the restoration of a neutral caretaker government system.

The plan targets an increase in nominal GDP to $742.57 billion by FY30 from $495.17 billion at present, as part of the government's election pledge to build a $1 trillion economy by 2034.

After the meeting, Titumir said the new framework would move away from what he described as earlier "detached and number-focused" plans and would instead emphasise practical strategies aligned with current economic conditions and future challenges.

He said accountability and a clear implementation roadmap would be among the defining features of the new strategy.

State Minister for Planning Zonayed Saki said the country is facing a fragile economic situation and that the government had inherited a weak macroeconomic structure. "The goal is to move from recovery to long-term prosperity."

He added that there had been shortcomings in the implementation of earlier development plans and that the government had already begun assessing the current situation, reviewing past outcomes and reassessing ongoing projects.

GED member Monjur Ahmed said the government had initially considered adopting a two-year recovery programme but later expanded the initiative into a comprehensive five-year strategy after the formation of the elected government.

He said a draft would be prepared within two months, followed by consultations with stakeholders.

The final document is expected to be completed within the following two to three months before the implementation phase begins.