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

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

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

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

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

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

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

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

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 The previous inclusion should not have been withdrawn," she said, urging reconsideration.

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

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

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

BKMEA hails the move

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Conditions for ownership recovery

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

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

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

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

Government defends 'market solution'

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

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

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

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

Experts warn of 'credibility destruction'

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

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

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

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

Uncertain future for Sammilito Islami Bank

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

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

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

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

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

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

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

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

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

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

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

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

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

The Asian Development Bank (ADB) has cut Bangladesh’s economic growth further to 4 percent for the current fiscal year 2025–26 from its previous projection of 4.7 percent amid a fuel price spike and disruption in global supply chains due to the war in the Middle East.

The ADB said the economy might pick up and grow by 4.7 percent in the next fiscal year 2026–27, according to the latest Asian Development Outlook (ADO) April 2026 released today.

This is the third time the ADB has revised down its Gross Domestic Product (GDP) growth forecast for Bangladesh.

The Manila-based lender in December forecast 4.7 percent GDP growth in the current fiscal year, down from its September forecast of 5 percent. In April last year, the ADB had projected 5.1 percent growth for the same year.

The current growth outlook reflects a recovery in consumption and investment as political uncertainty eases after the general election. Temporary supply chain disruptions linked to conflict in the Middle East affected activity in the last quarter, but their impact is expected to fade, the ADB said in a press release.

“Bangladesh is facing a difficult economic environment, shaped by global uncertainties, domestic structural constraints, and pressures on the external and financial sectors,” said ADB Country Director in Bangladesh Hoe Yun Jeong.

Inflation is projected to remain elevated at 9 percent in FY26, despite some easing, reflecting persistently high global energy prices and ongoing supply disruptions. It is expected to moderate to 8.5 percent in FY27 as external shocks subside and domestic supply conditions improve.

“Downside risks to the outlook remain substantial, particularly if the conflict prolongs,” it said.

Disruptions to global energy markets, shipping routes, and supply chains could drive sustained increases in oil and gas prices, intensifying domestic inflationary pressures and complicating ongoing disinflation efforts, thereby constraining macroeconomic policy flexibility, it said.

“Higher energy prices could also widen the fiscal deficit, especially if energy-related subsidies increase or the pass-through to consumers is delayed.”

The ADO report said external sector pressures may rise as exports and remittances soften amid slower economic activity in key Persian Gulf economies, while elevated import costs and freight rates would further strain the current account amid already tight external liquidity.

Overall, the balance of risks is firmly tilted to the downside, underscoring Bangladesh’s vulnerability to external shocks in a context of still-fragile macroeconomic conditions. Climate-related shocks remain an additional, persistent risk.

The ADB said the current account deficit, the record of a country's international transactions with the rest of the world, is anticipated to be 0.5 percent of Gross Domestic Product in FY26, widening slightly to 0.6 percent in FY27, driven by stronger import demand and a broader trade deficit.

The dollar slipped on Friday, putting it on track for its largest weekly drop ​since January, as investors sold safe-haven assets on the assumption that oil shipping will resume if a ceasefire holds in the ‌Gulf.

The dollar had towered in March as one of the few bastions of safety as the Iran war sent oil prices surging and hit stocks and gold, while inflation worries pressured bonds.

But since a fragile ceasefire was reached on Tuesday, those positions are being unwound.

The euro has rallied 1.8 percent this week to trade at $1.173, while sterling ​has gained 2 percent since Monday to $1.347.

The risk-sensitive Australian and New Zealand dollars are set for weekly rises of nearly 3 percent on ​the dollar, with the Aussie trading just above 70 cents.

MARKETS ARE OPTIMISTIC EVEN THOUGH CEASEFIRE IS FRAGILE

“The market still seems generally optimistic, despite some of the ceasefire fraying,” said Marc Chandler, chief market strategist at Bannockburn Global Forex.

Data on Friday showed ​that US consumer prices rose by the most in nearly four years in March as the Iran war boosted oil prices and the pass-through from tariffs ​persisted.

The increase was largely in line with expectations and the markets’ direction is more likely to hinge on the outcome of weekend peace talks between the US and Iran in Islamabad, analysts said.

“People were buying the US dollar when the war was at its most intense moment and now they’re selling as the tail risk ​of a really bad outcome has faded quite a bit,” said Jason Wong, senior strategist at BNZ in Wellington.

“Even though it still looks ​a bit shaky, the ceasefire removing that tail risk is important from a sentiment point of view,” he said, adding that the mood could turn very quickly ‌if the ⁠anticipated weekend peace talks fail to deliver progress.

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

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

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

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

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

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

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

ALTERNATIVE SUPPLY

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

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

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

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

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

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

LOSS IN DEMAND

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Foreign payments continue to be regular and well-managed.

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

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

Bangladesh’s economy may have expanded at a slower pace in March, primarily driven by the manufacturing sector’s first contraction after 18 consecutive months of growth, according to the latest Purchasing Managers’ Index (PMI).

Bangladesh’s PMI declined by 2.2 points to 52.5 in March compared to the previous month, according to the report issued yesterday by the Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI) and Policy Exchange Bangladesh (PEB).

The PMI is a forward-looking indicator used globally to gauge economic direction. A reading above 50 indicates expansion, while a reading below 50 indicates contraction.

“The March PMI readings point to moderate economic growth, largely driven by a manufacturing sector slowdown due to extended holidays and global demand uncertainties stemming from the Middle East crisis,” said M Masrur Reaz, chairman and CEO of PEB.

He added that the US-Israeli war on Iran has weakened economic momentum through heightened inflationary pressures and risks of supply disruptions, increasing the economy’s vulnerability.

A decline in new orders, exports, finished goods, imports, and employment fuelled the downturn in the manufacturing sector. However, factory output and input purchases continued to expand, and order backlogs returned to growth.

The construction sector remained in the downtrend for the second consecutive month, while the agriculture sector saw its seventh month of expansion, albeit at a slower pace.

Agriculture reported slower expansion in business activity and input costs. While order backlogs grew, the sector faced tightening in new business and employment.

Construction continued its decline, with new business and activity levels falling. While employment and order backlogs in the sector rebounded, input costs rose at a faster pace.

The services sector continued its momentum, recording its 18th consecutive month of expansion with slightly accelerated growth across new business, employment, and business activity.

Looking ahead, the future business index signals continued expansion across all key sectors, agriculture, manufacturing, construction, and services, reflecting sustained business optimism, the report said.

The MCCI and PEB began publishing the PMI in January last year. Initiated by the UK government, the index covers over 500 private sector firms.

Linde Bangladesh has announced a 100% cash dividend for the year 2025, maintaining a strong payout for shareholders despite a significant decline in profit compared to the previous year.

The decision was taken at a board meeting held on Wednesday (8 April) of the multinational industrial and medical gas producer, according to a price sensitive disclosure. The company has scheduled its annual general meeting for 10 June, while the record date has been fixed for 29 April.

For the year ended 2025, the company reported a net profit of Tk34 crore, with earnings per share (EPS) standing at Tk22.60. This marks a sharp drop from the previous year's EPS of Tk421.9, which had been exceptionally high due to a one-off gain.

The company clarified that its 2024 earnings were significantly boosted by income generated from the divestment of its hard goods business.

The Reserve Bank of India (RBI) today (8 April) kept its key interest rate unchanged, citing inflationary pressures driven by higher import costs following the recent West Asia conflict.

Announcing the first bi-monthly monetary policy of the fiscal year, RBI Governor Sanjay Malhotra said the Monetary Policy Committee (MPC) unanimously decided to retain the repo rate at 5.3% while maintaining a neutral stance.

The decision comes after the six-week-long Middle East war disrupted global energy supplies, pushed up crude oil prices and triggered inflationary and fiscal pressures for import-dependent economies such as India, the world's third-largest energy consumer.

This is the first monetary policy review after the Indian government announced a fresh retail inflation target of 4% with a margin of 2% on either side for another five years ending March 2031.

The central bank's pause follows easing inflation, with the consumer price index (CPI)-based headline inflation falling to 3.2% in February, closer to its medium-term target.

Meanwhile, the Indian rupee has depreciated by more than 4% since the conflict began on 28 February.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The robust earnings performance lifted consolidated earnings per share (EPS) to Tk3.31, compared with Tk1.52 a year earlier.

The bank also reported improved financial strength, with consolidated net asset value per share rising to Tk23.07 from Tk21.09 in 2024. Meanwhile, consolidated net operating cash flow per share increased to Tk12.28 from Tk8.03, reflecting stronger cash generation from core operations.

On the back of this improved performance, the board of directors recommended a 13% cash dividend for the year, up from 10% cash dividend declared in 2024. The decision was taken at a board meeting held today (8 April).

The bank attributed the strong profit growth mainly to higher net investment income, increased earnings from shares and securities, and a rise in other operating income. Improved cash flow was supported by higher investment income and increased placements with banks and financial institutions.

To approve the audited financial statements and dividend, the bank has scheduled its annual general meeting for 24 May, with the record date set for 30 April.

Market analysts view the strong earnings growth and higher dividend as positive signals for investors, particularly at a time when the banking sector is navigating various economic challenges.

The bank's shares responded positively on the Dhaka Stock Exchange, rising 2.29% today to close at Tk17.90.

As of March, sponsor-directors held 43.08% of the bank's shares, while institutional investors owned 24.25%. General investors accounted for the remaining 32.67%, indicating a balanced ownership structure.

Bangladesh’s national flag carrier, MV Banglar Joyjatra, sailed towards the Strait of Hormuz this noon—after being stranded in the Persian Gulf for 39 days—aiming to cross the route during the two-week ceasefire agreed between the US and Iran.

Bangladesh Shipping Corporation (BSC) Managing Director Commodore Mahmudul Malek confirmed the development at a press conference in Chattogram today.

A total of 31 Bangladeshi crew members are on board the vessel, which had been stranded in the Persian Gulf since the war began on February 28.

Malek said the ship went to Saudi port Ras Al-Khair three days ago and, after loading fertiliser, remained anchored at the outer anchorage of Dammam Port.

As Iran announced it would guarantee safe passage for maritime traffic through the Strait of Hormuz for two weeks following the ceasefire, the vessel left the anchorage and is now heading towards the Strait, he said.

The ship will first reach a safe location and will cross the Strait once BSC gives further instructions after monitoring the situation, Malek added.

The vessel is carrying 37,000 tonnes of fertiliser.

When contacted via WhatsApp, the ship’s chief engineer, Rashedul Hasan, told The Daily Star that they lifted anchor around 9:00am local time (12:00pm Bangladesh time) after receiving instructions from BSC.

“We are now heading towards the Strait of Hormuz at a speed of 12 nautical miles per hour,” he said.

The chief engineer added that the vessel is about 420 nautical miles away from the Strait and, at the current speed, it will take around 40 hours to reach and cross it.

The BSC managing director said the ship’s charterer has initially set three possible destinations: South Africa, Mozambique, and Brazil. Once the destination is finalised, the vessel will proceed accordingly, he said.

The bulk carrier arrived at the United Arab Emirates port of Jebel Ali on February 27 from Mesaieed, Qatar, carrying 38,800 tonnes of steel coils before becoming stranded.

The National Board of Revenue (NBR) is considering linking VAT registration – known as a Business Identification Number (BIN) – to bank accounts, aiming to bring businesses with trade licences but without VAT registration under the tax net.

Under the proposed measure, businesses may be required to provide a BIN when opening or continuing current accounts in banks. According to NBR sources familiar with the budget, a provision in this regard may be included in the upcoming national budget.

If fully implemented, the policy could compel tens of thousands of small and large businesses to register for VAT, with the primary goal of expanding VAT coverage.

However, business owners and bankers have expressed concerns that mandatory BIN verification for bank accounts could discourage businesses from opening accounts or depositing funds. Many business owners are reportedly reluctant to register for VAT due to bureaucratic complexity and potential harassment.

A senior NBR official, speaking on condition of anonymity, told The Business Standard, "A large number of businesses, which are legally supposed to be under VAT, remain unregistered. To bring them under the tax net, making registration mandatory for opening a current account is being considered."

He added, "If approved by the finance minister, this could be included in the next budget and implemented from the next fiscal year."

Another official noted that even existing account holders may be required to undergo BIN verification.

According to NBR data, there are currently 7,92,000 VAT-registered entities in the country, of which about 5,00,000 file returns.

Estimates from the Bangladesh Shop Owners Association show that nearly 70 lakh shops hold trade licences, while many other businesses and service providers remain outside the VAT net. Moreover, not all of these businesses maintain current accounts.

According to estimates by the Bangladesh Shop Owners Association, nearly 70 lakh shops hold trade licenses, while there are many businesses and service providers that are still outside the VAT net. Not all of these businesses maintain current accounts.

Another NBR official said, "Small-scale businesses with low-value transactions are not our target. This initiative is aimed at businesses with current accounts and significant transaction volumes, to track turnover and ensure applicable VAT is collected."

Regarding concerns that businesses might sidestep monitoring through alternative accounts, the official noted, "Savings accounts have transaction limits. If fully implemented, these loopholes can also be addressed."

Business owners, however, voiced opposition to the plan. Arifur Rahman Tipu, general secretary of the Bangladesh Shop Owners Association, told The Business Standard, "If BIN becomes mandatory for opening or managing bank accounts indiscriminately, businesses may be discouraged from using banks, depositing money, or conducting transactions."

He added, "Forcing small businesses to register for VAT will increase their costs and could potentially drive them out of business. The complexity of the system and harassment discourage registration."

Bankers echoed these concerns. Syed Mahbubur Rahman, managing director and CEO of Mutual Trust Bank Limited, said, "Customers are already hesitant to deposit money due to bank charges and excise duties. Making BIN mandatory for businesses could further discourage account openings, prompting them to keep money elsewhere."

He suggested that the government focus on increasing direct taxes rather than imposing mandatory BIN requirements on bank accounts.

The dollar fell around one percent against the euro and the pound in early European trading Wednesday as investors sold the greenback on relief over a temporary ceasefire between the United States and Iran.

At around 8:10 am (0610 GMT) the dollar, usually a safe investment haven in times of market turmoil, was trading at 1.17 euros, down around 1.1 percent. Against the pound, the dollar fell around 0.9 percent to $1.34.