Oil prices eased ​1 percent on Tuesday after climbing by as much as 6 percent in the previous session on signs the US Navy ‌is loosening Iran's grip on the Strait of Hormuz, potentially opening up supply from the Middle East.

The US on Monday launched a new operation aimed at reopening the strait to shipping. Maersk later said the Alliance Fairfax, a US-flagged vehicle carrier, exited the Gulf via the strait accompanied by the US military, easing ​some supply disruption fears.

Brent oil futures for July fell 51 cents, or 0.5 percent, to $113.93 per barrel at 0622 GMT after ​settling up 5.8 percent on Monday. US West Texas Intermediate (WTI) crude fell $1.55, or 1.5 percent, to $104.87, after gaining 4.4 percent ⁠in the previous session.

"The successful escorted exit of the Maersk-operated vessel has helped ease some immediate supply disruption fears," said Tim Waterer, ​chief market analyst at KCM Trade.

"It shows that limited safe passage is possible under current conditions and helps chip away at some of ​the worst-case supply disruption fears. However, it's still very much a one-off event rather than a full reopening," he said in an email.

Still, Iran launched attacks in the Gulf on Monday to counter the US move as they wrestle for control over the Strait of Hormuz, which connects the Gulf to wider markets ​and typically carries oil and gas supply equal to about 20 percent of global demand every day.

Several commercial vessels were reportedly struck in ​the area, while a key oil port in the United Arab Emirates was set ablaze after an Iranian strike. Trump's attempt to use the US ‌Navy ⁠to free up shipping is the war's biggest escalation since a ceasefire was declared four weeks ago.

The US is pushing to open Hormuz to ease a massive disruption to global energy supplies since Iran mostly shut the strait after the US and Israel started the war on February 28.

Some analysts attributed the slight drop in oil prices on Tuesday to profit-taking moves.

"The recent dip does look like a bit ​of profit-taking after a strong ​run-up, rather than a structural ⁠shift in the backdrop," said Priyanka Sachdeva, a senior market analyst at Phillip Nova. "The geopolitical risk premium tied to the Strait of Hormuz remains firmly in place, so the downside is likely to stay ​limited."

"In the very near term, prices could see some consolidation or mild pullback as markets reassess ​positioning and react ⁠to mixed diplomatic signals."

On Monday, Chevron Chairman and CEO Mike Wirth said physical shortages in oil supply would begin appearing around the world because of the Hormuz closure.

Because of the disruptions, global oil stocks are approaching their lowest level in eight years, Goldman Sachs said on Monday, warning that ⁠the speed ​of depletion was becoming a concern as supplies remained restricted.

"With the world rapidly ​burning through commercial stockpiles, strategic reserves, and crude held in floating storage, the underlying supply squeeze remains a potent tailwind for oil prices," IG market analyst Tony Sycamore ​said in a note.

Bangladesh Bank Governor Md Mostaqur Rahman has called on commercial banks, mobile financial service (MFS) providers and payment service providers to accelerate efforts to build a more widespread cashless society in the country.

The call came during a meeting today (5 May) between the governor and heads of cashless units from the institutions.

Speaking to The Business Standard, central bank spokesperson and Executive Director Aref Hossain Khan said building a cashless society and introducing Bangla QR codes is now a "national agenda," no longer limited to the central bank alone.

"Everyone needs to come forward to implement this agenda," he added.

He noted that while MFS providers have made significant progress in onboarding small merchants, banks have lagged behind despite having broader networks. "The central bank now wants banks to increase their contribution in expanding digital transactions."

Arif Hossain Khan also said institutions have been urged to adopt Bangla QR codes universally after 30 June. "All companies will be required to have Bangla QR codes, and MFS providers will need to shift from their own separate QR systems to the unified standard."

He further said, "To support implementation, the central bank is considering forming a dedicated committee to oversee the transition to a cashless ecosystem."

A senior Bangladesh Bank official told TBS that wider adoption of Bangla QR codes would make transactions more accessible and interoperable, especially as many banks still lack their own apps. "Strengthening digital platforms alongside QR integration is expected to accelerate the shift toward a cashless economy."

Bangladesh Bank (BB) on Tuesday purchased $50 million from three commercial banks through multiple auction methods.

According to central bank data, it bought dollars at the rate of TK 122.75.

Accordingly, total purchases stood at $80 million in May 2026 and $5,753.50 million in FY 2025-26.

Sources said the BB purchased the dollars as part of its strategy to stabilize the TK against the US dollar and revitalize remittance and export inflows.

Stocks today (5 May) witnessed sell-offs, with prices declining for 58% of the scrips traded on the bourse, dragging down the DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), by 11 points.

A day after returning to positive territory on Monday snapping a two-session losing streak, stocks ended on the red.

According to data of EBL Securities, among the top ten index draggers, eight were banking stocks, with City Bank leading the decline by shaving off 5 points. It was followed by BRAC Bank, Al-Arafah Islami Bank, Islami Bank Bangladesh, Pubali Bank, Shahjalal Islami Bank, Square Pharmaceuticals, NCC Bank, Bank Asia, and Grameenphone.

On the upside, Beximco Pharmaceuticals emerged as the top index gainer, contributing 11 points, followed by Beacon Pharmaceuticals, United Commercial Bank, Dominage Steel Building Systems, and Uttara Bank, the EBL data showed.

With a decline of 11 points, DSEX closed at 5,267 points, while DSES, the shariah index, surged 6 points to 1,060, and DS30, the blue-chip index, fell 6 points to 2,017, the DSE data showed.

A total 393 stocks traded today, while 227 stocks or 58% saw price decline, 107 stocks price surges and 59 stocks price remained unchanged.

Turnover, one of the major indicator, posted a decline around 5% to Tk876.95 crore and market cap, the value of total shares of the listed companies downed by Tk732 crore to Tk6.80 lakh crore.

EBL Securities said the benchmark index of the Dhaka bourse resumed its downward trajectory as broad-based selling dominated the session, with banking stocks exerting a notable drag after post–record date adjustments.

"Although the indices remained afloat through mid-session, the market lost traction in the final hour as broad-based selling pressure eroded earlier momentum, ultimately dragging the indices into negative territory by the close," it said.

On the sectoral front, Pharmaceutical and Chemical sector accounted for the highest share by 15.9% of turnover, followed by Bank 13.8% and Engineering sector stocks by 12.4%.

Sectors mostly displayed mixed returns, out of which life insurance, tannery and services exerted the most corrections, while ceramic, paper and pharma exhibited some positive returns on the bourse today.

Monno Ceramics topped the gainer chart as its shares price surged by 9.95% to Tk95 each, followed by Beximco Pharmaceuticals by 7.69% to Tk126 each, Dominage Steel Building Systems by 7.32% to Tk70.3 each, Sikder Insurance by 4.98% to Tk29.5 each, and Monno Agro by 4.46% to Tk348.9 each.

While on the loser from, Apex Spinning was top loser as its shares price fell 8.59% to Tk330.6 each, followed by Premier Leasing by 8% to Tk2.3 each, GSP Finance by 6.97% to Tk4 each, Bay Leasing by 6.38% to Tk4.4 each, and Energypac Power Generation by 5.85% to Tk17.7 each.

The port city bourse, Chittagong Stock Exchange (CSE), also settled on a negative territory.

The Selective Categories' Index (CSCX) and All Share Price Index (CASPI) lost 16.9 points and 31.9 points, respectively.

European aircraft manufacturer Airbus today advocated for the inclusion of its aircraft in Biman Bangladesh Airlines’ fleet alongside Boeing, saying that a mixed fleet would benefit the national flag carrier.

Civil Aviation Minister Afroza Khanam, State Minister M Rashiduzzaman Millat, and Biman Managing Director and CEO Kaizer Sohel Ahmed were present at the meeting with Airbus Vice President Edward Delahaye at the Secretariat.

The meeting comes four days after Biman signed an agreement with Boeing to purchase 14 aircraft at a cost of $3.7 billion.

During the meeting, the Airbus official highlighted the advantages of a mixed fleet strategy.

In response to Airbus’s proposal, the minister and state minister expressed their commitment to working closely with the company regarding the future composition of Biman’s fleet.

According to sources at the civil aviation ministry, Airbus underscored how a mixed fleet strategy could offer greater flexibility and commercial benefits to Bangladesh’s aviation sector in the future.

Asked about Airbus' latest move to sell its aircraft in Bangladesh, Aviation Expert Kazi Wahidul Alam said, while partnerships with global manufacturers like Airbus are always welcome, fleet decisions must reflect Biman’s operational reality. A phased approach -- building scale first, then considering diversification -- may be more sustainable.

Both Boeing and Airbus have repeatedly submitted proposals to Biman to sell aircraft.

ImageAirbus Vice President Edward Delahaye paid a courtesy call on Civil Aviation and Tourism Minister Afroza Khanam at the Secretariat. Photo: Ministry
Airbus Vice President Edward Delahaye paid a courtesy call on Civil Aviation and Tourism Minister Afroza Khanam at the Secretariat. Photo: Ministry of Civil Aviation and Tourism, Bangladesh

The civil aviation ministry, during the interim government, approved the acquisition of 14 Boeing aircraft, with only the formal signing remaining at that time.

Biman’s deal with Boeing concludes more than three years of fierce competition between the US manufacturer and its European rival for the airline’s next major fleet order.

Airbus gained momentum in 2023 following high-level European engagement, including discussions linked to French President Emmanuel Macron’s visit and references in a Bangladesh-UK joint statement to a possible purchase of 10 Airbus aircraft, including freighters.

Under the previous Awami League government, a policy decision had been announced to procure 10 Airbus aircraft.

However, following the fall of Sheikh Hasina’s government in a student-led mass uprising in 2024 and amid pressure related to US reciprocal tariffs, the interim government shifted in favour of Boeing.

Sonali Bank, the country's largest state-owned commercial bank, reported a record net profit of Tk1,313 crore in 2025, marking a 33% increase from the previous year, according to its audited financial statements.

The strong performance was primarily driven by a surge in investment income, largely from government bond holdings, which rose 55% year-on-year to Tk9,799 crore.

However, the bank's net interest income declined sharply, falling 77% to Tk337 crore during the year.

The drop was attributed to reduced interest earnings from borrowers alongside higher interest payments to depositors.

Sonali Bank's earnings per share (EPS) improved to Tk28.99 in 2025, up from Tk21.82 in the previous year.

A significant portion of Bangladesh’s population continues to face unmet healthcare needs, driven largely by rising out-of-pocket expenditures, according to a study of Bangladesh Institute of Development Studies.Geographic Reference

Although unmet healthcare needs persist across all segments of society, the financial burden falls disproportionately on the poor, it showed.

The research by Abdur Razzaque Sarker of BIDS underscored that OOP spending remains the dominant mode of healthcare financing in the country, with its share reaching an alarming 79 per cent in 2024.

The study titled ‘Re-thinking unmet healthcare needs and dynamics of out-of-pocket expenditure in Bangladesh,’ was conducted under BIDS’ population studies division.

The study utilised data from the latest Household Income and Expenditure Survey 2022, comprising 14,400 households and 62,387 individuals where descriptive statistics were employed to analyses and summaries the percentage of unmet need, service utilisation across providers.

The distribution of benefits from public spending and progressivity/regressivity is assessed using benefit and financing incidence analysis.

The findings revealed that around 22 per cent of the population reported a need for healthcare services on a monthly basis. Among them, 15 per cent experienced unmet healthcare needs, accounting for 65 per cent of the total need.

Unmet needs were found to be significantly higher in rural areas compared to urban centres—68 per cent versus 59 per cent. Regionally, the highest levels of unmet need were recorded in Narail, 81 per cent, and Habiganj, 80 per cent, while the lowest was observed in Feni, 18 per cent.

On average, Bangladeshi households spend Tk 3,454 per month on healthcare, representing about 11 per cent of total household expenditure. Medicines and diagnostic services were identified as the primary cost drivers.

The study noted that while public healthcare services are relatively equitably utilised, private healthcare services remain disproportionately concentrated among wealthier groups.

Despite higher absolute spending among the rich, poorer households bear a significantly heavier financial burden.

Healthcare expenses account for about 35 per cent of total income for the poorest households, compared to just 5 per cent for the wealthiest, indicating a regressive healthcare financing system.

The heavy reliance on OOP payments often leads to catastrophic health expenditures, limiting access to necessary care and pushing vulnerable households further into poverty.

The study concluded that although unmet healthcare needs persist across all segments of society, the financial burden falls disproportionately on the poor.

To address these challenges, the researcher recommended urgent reforms in healthcare financing, particularly the development and implementation of risk-pooling mechanisms such as social health insurance.

Such measures, the study suggested, are essential for reducing inequality in healthcare access and achieving Universal Health Coverage in Bangladesh.

Brent crude futures retreated on ​Tuesday but held near $114 a barrel following fresh hostilities in the Middle East, while investors ‌monitored developments in the US-Israeli conflict with Iran.

The US and Iran launched new attacks in the Gulf on Monday as they wrestled for control over the Strait of Hormuz with duelling maritime blockades, shaking a fragile truce.

Brent crude futures eased 93 ​cents, or 0.8 percent, to $113.51 per barrel at 0719 GMT after settling up 5.8 percent on Monday. ​US West Texas Intermediate (WTI) crude fell $2.16, or 2 percent, to $104.26, after gaining 4.4 percent in the previous session.

“Prices continue to trade in a highly volatile range, driven largely by ongoing tensions in the ​Strait of Hormuz,” said Phillip Nova’s senior market analyst Priyanka Sachdeva.

“While prices have eased slightly in recent ​sessions, this is not due to any real improvement in fundamentals, but rather a temporary relief after the US launched ‘Project Freedom’,” she added.

The US on Monday launched a new operation aimed at reopening the strait to shipping. Maersk later said the ​Alliance Fairfax, a US-flagged vehicle carrier, exited the Gulf via the strait accompanied by the US military.

“It shows ​that limited safe passage is possible under current conditions and helps chip away at some of the worst-case supply disruption ‌fears,” said Tim Waterer, chief market analyst at KCM Trade in an email.

“However, it’s still very much a one-off event rather than a full reopening,” he added. Still, Iran launched attacks in the Gulf on Monday to counter US moves for control over the Strait of Hormuz, which connects the Gulf to wider markets and typically ​carries oil and gas ​supply equal to about 20 percent of global demand every day.

Several commercial vessels were reportedly struck in the area, while a key oil port in the United Arab Emirates was set ablaze ​after an Iranian strike. Trump’s attempt to use the US Navy to ​free up shipping is the war’s biggest escalation since a ceasefire was declared four weeks ago.

“Markets may find some relief today following President Trump’s overnight comments suggesting the conflict could continue for another two to three weeks,” said ING analysts in ​a client note.

However, there is considerable scepticism in the market ​on this view, given the recent escalation and the repeated extensions of projected timelines for ending hostilities since the conflict began, they ​added.

State-owned Janata Bank recorded a substantial loss of Tk3,931 crore in 2025, marking a 28% increase compared to the previous year, according to its audited financial statements.

The significant loss has pushed the bank's net asset value further into negative territory, standing at Tk108.51 per share.

The downturn was largely driven by a sharp deficit in net interest income, which reached a negative Tk5,903 crore, alongside a surge in classified loans totaling Tk72,800 crore.

By the end of 2025, the bank's loss per share rose to Tk169.90.

US President Donald Trump’s military forays in Venezuela and Iran have weakened Opec more than anyone thought possible just months ago. The White House may view this as a major win, but it may ultimately leave both the US and energy markets worse off.

For decades, the Organization of the Petroleum Exporting Countries, under its de facto leader Saudi Arabia, has exercised outsized influence over oil markets, dialling output up or ​down by tapping spare capacity to manage prices and defend market share.

That influence has long been eroding as the US and other non-Opec members have gained prominence in the past decades. The percentage of ‌global oil production Opec oversees fell from a peak of about 50 percent in the 1970s to roughly 35 percent last year - and down to around 26 percent in March in the wake of the closure of the Strait of Hormuz at the start of the Iran war.

The United Arab Emirates, the cartel’s fourth‑largest producer, quit the group last week after 60 years to pursue its energy strategy free of Opec production quotas, directly challenging Saudi Arabia and its Gulf neighbours.

Trump – a long-time critic of Opec – hailed the UAE’s departure as “great,” arguing it would help push oil prices lower.

That may prove true – ​and the US president’s muscular foreign policy may ultimately prove to be the producer group’s undoing. But a weaker Opec is not necessarily good news for consumers or producers – including the US.

Opec has long been a ​lightning rod for US lawmakers who accuse it of acting as a cartel. Trump has levelled blistering criticism at the group for years. In 2018, he accused Opec of being a monopoly that kept oil prices “artificially high.” After returning to office last year, he renewed pressure on the group to keep prices low.

This year, he went far beyond tough talk.

The lightning-fast US raid on Venezuela in January saw long-serving President Nicolas Maduro ​captured and replaced by a Washington‑friendly government. The Trump administration swiftly took control of Venezuela’s oil sector, redirecting most of its exports to the US and opening the country’s vast oil reserves to Western companies.

Venezuela, a founding Opec member in 1960, ​saw its production wither over recent decades to under 1 million barrels per day as a result of mismanagement, chronic underinvestment and US sanctions. That is less than 1 percent of global supplies.

But output is now expected to rebound as fresh capital flows in. While Trump has not objected to Venezuela remaining in Opec, it is hard to imagine Caracas agreeing to curb output under Opec quotas given Washington’s tight oversight of its energy sector.

The US-Israeli strikes on Iran on February 28 triggered a far more dramatic cascade, leaving Opec fractured and largely powerless.

Tehran sealed off the Strait ​of Hormuz within hours of the first strikes, trapping roughly a fifth of the world’s oil and gas supplies inside the Gulf.

During the 40-day active conflict, dozens of energy facilities were targeted across the Gulf, including tankers, oil and gas ​fields, refineries, pipelines and storage terminals.

The closure and the fighting forced producers to shut in around 10 million bpd, while Saudi Arabia and the UAE diverted some output to ports outside the Gulf.

Washington implemented its own blockade in mid-April while US efforts to break the Iranian blockade have ‌so far done little to revive traffic through the narrow waterway.

Opec’s traditional pillars - Saudi Arabia, the UAE, Kuwait and Iraq - found themselves bereft of their main export route, usable spare capacity and operational flexibility.

In short, they were essentially powerless in the face of the biggest oil shock in history.

This, in turn, created an opening for the vast US oil and gas industry - now the world’s largest in terms of production - to rapidly ramp up exports to Asia and Europe, further eroding Opec’s market share and influence.

America’s position is strengthened, but the US oil industry is driven by market forces. It has no equivalent of Opec’s spare capacity to balance the market.

In the absence of a strong Opec, Trump may find this new environment far less manageable than he bargained ​for.

CUSHIONING THE BLOW

Opec has long played a central role in stabilising oil ​markets, using large volumes of low-cost spare capacity, mostly concentrated ⁠in the Gulf, to cushion the impact of wars and weather events.

It also proved effective in times of oversupply, most notably during the onset of the COVID‑19 pandemic. Trump personally urged Saudi Crown Prince Mohammed bin Salman in April 2020 to slash output and ease pressure on US producers. Within days, Opec+ announced its largest-ever production cut.

Without effective market management by Opec, oil markets ​face higher volatility and fewer shock absorbers to deal with disruptions that are likely to become more frequent as geopolitical tensions rise.

For producing nations, including the US, this would likely ​translate into more frequent boom-and-bust cycles, ⁠higher operating costs for oil companies and, ultimately, higher and more volatile prices at the pump.

SHADOW OF ITS FORMER SELF

It is premature to declare Opec dead. Riyadh will almost certainly seek to steady the group in the coming months and lean more heavily on its alliance with Russia to reassert authority.

Politically, though, the Iran war has left Opec in tatters. Iran’s bombardment of critical energy infrastructure belonging to fellow Opec members, particularly Saudi Arabia, combined with its decision to close Hormuz - once unthinkable - has created deep rifts ⁠within the group ​that may take years to heal, if they ever do.

The most notable thing about Sunday’s Opec+ meeting - which includes Russia - was not the announcement of ​a theoretical quota increase. It was the absence of the UAE.

Opec, as the world has long known it, is gone. Trump and others may eventually regret that.

The Asian Development Bank (ADB) expects that there will be a “significant growth in demand” from the private sector for its investment services in Bangladesh, a senior official said.

The increased demand is likely as a new government has been in power since February, and things have started to stabilise, said Isabel Chatterton, director general of the Private Sector Operations Department at ADB.

She made the remarks in response to a query at a media briefing on Monday on the sidelines of the four-day ADB Annual Meeting taking place in Samarkand, Uzbekistan.

She said Asia and the Pacific face a multi-trillion-dollar infrastructure financing gap, with rising development needs that public finance alone cannot meet.

“Private capital is essential as development needs far exceed public resources,” she said. “Private finance can scale solutions, but policy uncertainty and unmanaged risks still deter investment.”

ADB officials said the multilateral bank helps transform high-potential sectors into investable markets. “We crowd in private capital.”

Under private sector operations, the total outstanding balances and undisbursed commitments of ADB’s private sector transactions in Bangladesh stood at $784.7 million as of 31 December 2024, representing 5.21 percent of ADB’s total private sector portfolio.

ADB’s cumulative public and private sector loan and grant disbursements to Bangladesh amount to $27.48 billion, according to the bank.

“We are very, very active in the Bangladesh market,” she said.

ADB’s private sector operations include financing trade and supply chains, the microfinance programme, and energy projects.

Under the microfinance programme, ADB works through financial entities in Bangladesh, which in turn support microfinance activities.

“So, what we do is we give them loans,” she said. “In our case, it depends on demand from the banks, and it could vary, but very often these credit lines get disbursed very quickly.”

But disbursement slows in the event of unexpected developments in an economy, in what she described as “a natural catastrophe or other unforeseen events.”

Chatterton said demand for loans from the private sector keeps growing, and banks and microfinance institutions know that their sectors are doing very, very well.

She said ADB’s microfinance programme has helped mobilise $800 million for microfinance institutions in Bangladesh.

The ADB, in October last year, signed a $30 million agreement with Envoy Textiles under its sustainability-linked loans programme. Such loans are performance-based instruments tied to measurable indicators, such as rooftop solar capacity and greenhouse gas emissions reductions.

Chatterton said such initiatives are going to incentivise emissions reductions in the textile sector.

“As many of you know, Bangladesh is well known for its thriving garment manufacturing industry. We were very pleased last year to support Envoy through our engagement.”

The National Board of Revenue is planning to expand the value-added tax (VAT) base to the grassroots, netting even small businesses at district, upazila, and village levels to boost overall revenues and raise the country's low tax-to-GDP ratio.

The plan includes introducing a "token" VAT between Tk500 and Tk1,000 on trial basis for small businesses and making Business Identification Number (BIN) mandatory for bank accounts and trade licences, according to officials familiar with the initiative.

The plan, if approved by the finance minister and the prime minister, may be included in the budget for the 2026-27 fiscal year (FY27), they said.

Revenue officials said they are looking to explore revenue potentials at the grassroots where a large portion of economic activity remains outside the formal tax system.

"We have plans to extend VAT coverage down to the rural level," a senior NBR official said on condition of anonymity. "Initially, a small fixed VAT could help smaller traders become accustomed to tax compliance," he added.

Making BIN mandatory for bank accounts and trade licences could be an effective way to bring more businesses into the net, the official said.

During pre-budget talks NBR Chairman Abdur Rahman Khan also hinted at such measures -- introducing a limited VAT for certain segments on a trial basis if necessary.

"To increase VAT collection, we need to both reduce exemptions and expand the base," another NBR official said, referring to IMF's condition for an ongoing loan package to raise tax-GDP ratio, which is among the lowest in the region.

Businesses and economists, while appreciating such initiatives to expand VAT network and include a vast untaxed economy into tax network, have warned that abrupt imposition of blanket VAT for all rural businesses could backfire.

Fahmida Khatun, executive director of the Centre for Policy Dialogue, welcomed the initiative to broaden the VAT base but cautioned against increasing complexity or compliance costs.

"Collecting small amounts of VAT from small businesses is possible, but the government must ensure that the revenue actually reaches the state treasury and does not lead to additional informal payments," she said.

Taskeen Ahmed, president of the Dhaka Chamber of Commerce and Industry, pointed out the regional imbalance in revenue collection. Dhaka and Chattogram together account for around 45% of the country's economic activity, yet generate nearly 85% of total revenue.

"This indicates that a large portion of economic activity outside these areas remains untaxed," he said. "However, expanding VAT coverage to the grassroots should be done gradually over four to five years to minimise risks and ensure sustainability."

The proposed "token" VAT system has drawn comparisons with the previously scrapped package VAT regime, under which businesses paid a fixed amount based on estimated turnover.

Former NBR member Md Farid Uddin warned that the earlier system was abandoned due to widespread irregularities and collusion between field officials and businesses.

"If similar methods are reintroduced without strong safeguards, the same problems may resurface," he said.

Revenue drastically fell short of target in March, driven by declines in import duties because of the Middle East war and slow economic activities. However, VAT and income tax revenues saw growth in March.

Nine months' data show overall revenues, though marked 11% growth year-on-year, remained about Tk98,000 crore behind the target for the period. This fiscal year's revenue target is Tk6.97 lakh crore and the NBR is set to face even a bigger target for the next year, prompting it to explore all possible ways to generate more revenues.

Rural economy expands, largely untaxed

The latest Economic Census 2024 by the Bangladesh Bureau of Statistics estimates the number of economic units in the country at 1.17 crore, up from 78 lakh in 2013. Over 99% of those units are cottage, micro and small businesses, with 74% operating in rural areas.

But the expansion of the rural economy is not reflected in the tax scene. According to NBR data, around 8 lakh businesses currently hold BINs, of which just over 5 lakh submit VAT returns. The NBR chairman believes that at least 1 crore businesses should ideally be brought under VAT registration.

Trade licences are issued by city corporations, municipalities, or union councils, but the revenue authority does not have any consolidated data about how much of those businesses are active. Similarly, while Bangladesh's banking sector holds over 17 crore accounts, there is no clear data on how many are business or current accounts.

The lack of data has prompted the NBR to venture on new initiatives to explore the revenue potentials in the grassroots economic and business activities, officials said.

Concerns over blanket enforcement

Business leaders and tax experts have cautioned against a blanket approach to VAT expansion, warning that it could backfire if not implemented carefully.

Abdul Wahed, former director of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and president of the Chapainawabganj Chamber of Commerce and Industry, said making BIN mandatory for all small businesses could discourage them from renewing trade licences.

"If a fixed VAT system is introduced without proper oversight, it could also increase corruption at the field level."

A former NBR member who worked on VAT policy echoed similar concerns, arguing that while expanding the VAT base is necessary, enforcement mechanisms must be realistic.

"Forcing all businesses to obtain VAT registration as a precondition for basic operations like banking or licensing could create unintended consequences," he said.

"Past experience shows that VAT collection has been growing faster than income tax and customs duties. The focus should also remain on strengthening income tax collection."

Listed private power producers are beginning to absorb a shock that is set to deepen as the government pivots away from costly rental and furnace oil-based plants toward LNG, coal, and renewable energy.

The companies-except for Shahjibazar Power Co and Energypac Power Generation-witnessed a fall in revenue in the third quarter to March of FY26, against the backdrop of the government's unwillingness to renew power purchase contracts upon expiry. This led to partial utilisation of the plants. Meanwhile, some of these companies saw their finance costs rise, further eroding profits.Despite the decline in revenue, however, many of the companies posted higher profits in the third quarter of FY26 compared to the same quarter of the previous year, as they received income from subsidiaries or associate companies. In some cases, the cost of goods sold and finance costs were shown to be lower without any explanation.

Overall, listed companies with older furnace oil-based plants are struggling more than non-listed ones operating efficient gas or LNG-based facilities, analysts said.

Sector leader United Power Generation & Distribution Company Ltd. posted a notable decline in earnings on the back of lower electricity sales and higher finance costs.

Industry insiders said gas price hikes without corresponding tariff adjustments, along with delayed payments from the Bangladesh Power Development Board (BPDB), further squeezed margins. Bangladesheconomic report

Summit Power Limited showed only marginal improvement from a weak base, as several of its plants remained shut following deal expiries. The company has increasingly been operating under a "no electricity, no payment" model, significantly reducing its capacity payment income.

Khulna Power Company Limited also faces structural challenges, as some of its major plants remain inactive following contract expiry, limiting its revenue base.

Smaller player GBB Power Ltd. also remains under pressure, mainly due to maintenance costs.

Energypac Power Generation, which belongs to the energy sector on the bourses but is no longer engaged in producing electricity, sank deeper into losses due to high borrowing costs and weak performance. It now provides power engineering solutions.

Sector insiders said the core challenge now lies in the transition from guaranteed returns in the form of capacity charge payments to performance-based earnings. The government's ongoing energy policy shift has accelerated this transition.

As a result, analysts expect continued divergence in earnings performance, with newer and more efficient plants gaining ground, while older, contract-dependent assets face declining profitability.

United Power Generation & Distribution Company

The leading listed private sector power producer reported a 35 per cent decline in profit in the January-March third quarter of FY26 to Tk 2.76 billion, compared to the corresponding period last year, due to lower production levels.

In the quarter, the company's revenue shrank nearly 30 per cent to Tk 6.74 billion, according to a disclosure.

Apart from dwindling profitability, the company's cash generation has also fallen due to collection delays caused by external macroeconomic factors.

Summit Power Limited

The power producer lost one-fifth of its revenue in the January-March quarter of FY26, falling to Tk 6.5 billion. Despite the reduction in revenue, Summit Power reported a more than 11 per cent jump in net profit, supported by a decline in the cost of production.

However, no explanation has been provided as to how the cost of production fell 9 per cent year-on-year in the third quarter to March this year.

Shahjibazar Power Co.

This power producer reported strong performance, mainly driven by income from sister concerns.

Khulna Power Company Limited

It earned no revenue in the quarter, yet reported profits by relying on income from its associate company.

GBB Power Ltd.

It had no revenue income but reported positive earnings in Q3 of FY26, though lower than in the same quarter of the previous year, based on non-operating income.

Energypac Power Generation

This private sector power company reported a larger loss this year as its finance costs increased threefold.

Doreen Power Generations and Systems Limited

Doreen Power Generations also sustained a decline in revenue but secured profit growth through reduced finance and production costs.

Baraka Patenga Power Limited and Baraka Power Limited

Most of the plants of the two companies have remained shut, but their associate companies, which are also power producers, generated moderate revenue.
Baraka Patenga's cost of goods sold was Tk 66 per Tk 100 of revenue in Q3 of FY25, which was drastically reduced to Tk 57 per Tk 100 of revenue in Q3, FY26. The company also reported lower general and administrative expenses year-on-year in the quarter.

Baraka Power also reported lower cost of goods sold and reduced finance costs, which helped increase net profit.

The government has moved to deepen energy cooperation with India by proposing a government-to-government (G2G) refining arrangement aimed at ensuring a stable supply of petroleum products as global markets remain volatile.

In a letter dated 16 April 2026 and marked urgent, the Energy and Mineral Resources Division under the power, energy and mineral resources ministry requested the foreign ministry to initiate diplomatic engagement with the Indian government.

The communication, addressed to the foreign secretary and copied to the director general of the South Asia wing, a source at the Bangladesh Petroleum Corporation told The Business Standard.

Foreign ministry officials said the request has already been conveyed to the Indian High Commission in Dhaka, although no response has yet been received.

The proposal comes amid growing concern over fuel supply security, particularly in light of geopolitical tensions in the Middle East.

Proposed tolling arrangement

At the centre of the initiative is a tolling model under which crude oil owned or financed by Bangladesh would be processed in Indian refineries, with Bangladesh paying refining fees and associated logistics costs.

The Bangladesh Petroleum Corporation (BPC) has been designated as the implementing agency and will lead technical and commercial negotiations once formal engagement begins. Officials said the proposal requires priority consideration given its importance to national energy security.

When contacted by TBS, an official from the South Asia wing of the foreign ministry declined to comment, saying the matter involves two countries and is subject to confidentiality.

Strategic rationale

Officials say the move reflects structural limitations in Bangladesh's domestic refining capacity. The country relies heavily on Eastern Refinery Limited, which remains constrained in both scale and technological capability.

With demand for petroleum products rising across power generation, transport, agriculture and industry, the gap between domestic refining capacity and consumption has widened.

The proposed arrangement with India is therefore being viewed as a strategic effort to diversify supply mechanisms without requiring immediate large-scale investment in domestic refining upgrades. India's extensive and technologically advanced refining infrastructure, capable of processing crude from diverse sources, makes it a natural partner.

Operational framework

Under the proposed model, designated Indian state-owned oil companies would procure crude oil, potentially in coordination with the Bangladesh Petroleum Corporation, and refine it on Bangladesh's behalf. The refined products would then be supplied back to Bangladesh.

The Bangladesh Petroleum Corporation would bear the full cost, including crude procurement, tolling charges and logistics. Officials said this approach would allow Bangladesh to access diversified crude supplies while utilising India's refining capacity.

The Energy and Mineral Resources Division has sought diplomatic facilitation to engage relevant Indian authorities and companies and to establish a platform for technical and commercial discussions.

Benefits and risks

Officials said the arrangement could enhance supply security by reducing exposure to spot market volatility and geopolitical disruptions, while also offering potential cost advantages through access to competitively priced refined fuels.

The model may also improve sourcing flexibility by leveraging India's broad crude procurement network and could be implemented more quickly than expanding domestic refining capacity, which requires substantial investment and long lead times.

However, concerns remain over increased dependence on external infrastructure, which could affect long-term energy sovereignty. Questions around pricing transparency and the need for robust negotiation of tolling fees have also been raised.

Officials noted that reliance on a single regional partner may carry geopolitical risks, particularly during periods of diplomatic strain. There are also concerns that the arrangement could delay investment in domestic refining facilities, including the expansion of Eastern Refinery Limited.

In addition, payments for refining services and logistics in foreign currency could place further pressure on Bangladesh's foreign exchange reserves.

Balancing immediate needs with long-term goals

Energy experts suggest the proposed arrangement could serve as a short- to medium-term solution but should not replace efforts to strengthen domestic refining capacity.

They argue that Bangladesh needs a balanced strategy that combines regional cooperation for immediate supply stability with accelerated investment in local infrastructure, warning that overreliance on external facilities could create long-term vulnerabilities.

The government has also been exploring plans to expand refining capacity and develop energy infrastructure, although progress has been slow due to financing constraints.

Job creation in Bangladesh is failing to keep pace with a rapidly expanding workforce, while nearly half of workers call for short-term technical training and more than half of young people report an urgent need for digital skills, according to the latest International Labour Organization report.Diaspora community forum

The findings also show that though 95.2 per cent of workers in Bangladesh rely on informal learning, the absence of its formal recognition left the vast majority of skills uncertified and undervalued.

The ILO on Tuesday launched its dedicated thematic publication, ‘The World of Work Report: Lifelong Learning and Skills for the Future,’ which painted an elaborate picture of the evolving labour market of Bangladesh.

It highlighted a growing imbalance between labour supply and demand, with new data pointing to significant gaps in job creation, skills development, and access to training.

While the country’s workforce continued to expand rapidly, investment in technical, digital, and work-based learning remained limited, raising concerns over long-term employability and economic resilience.

The report identified several priority areas that Bangladesh must address to future-proof its workforce amid structural shifts driven by digitalisation and the global transition towards greener economies.

Though, it noted, lifelong learning is widely recognised as essential, access to such opportunities remains highly unequal and restricted, particularly for vulnerable groups.

A detailed analysis of survey data revealed a substantial unmet demand for training.

Informal learning, primarily through hands-on experience, dominated the skills landscape, with participation reaching 95.2 per cent.

In contrast, only 12 per cent of the working-age population engaged in formal or non-formal education and training in 2025.

The report highlighted stark inequalities in access to training based on education levels.

Among adults with secondary education, 25.7 per cent participated in learning activities, compared with just 3.7 per cent of those without secondary education, it said.

Occupational differences are equally pronounced, with participation rates the highest among professionals at 36.9 per cent and technicians at 33.5 per cent, but falling sharply to only 3.5 per cent among workers in elementary occupations, the report said.

According to the report, formal sector workers are more than three times as likely to engage in structured learning, with participation at 37.2 per cent, compared with just 10.8 per cent among informal workers.

The survey findings also pointed to a clear demand for practical and future-oriented skills.

It mentioned that nearly 48.5 per cent of respondents identified short-term technical training as their most pressing need, reflecting a preference for targeted, job-relevant learning.

Digital literacy has emerged as a critical priority, particularly among younger workers, with more than half of those aged 15 to 24 expressing a need for training in digital and computer skills, it said.

According to the ILo report, non-formal training in Bangladesh at present is largely occupation-specific, accounting for 57 per cent of such programmes, followed by digital skills at 19.2 per cent and personal development at 15.5 per cent.Diaspora community forum

However, the report stressed that focusing solely on technical competencies was insufficient.

It said that employers were increasingly seeking ‘rounded’ skill profiles that combined technical expertise with cognitive abilities and socio-emotional skills such as communication, teamwork, and leadership.

Work-based learning, the report said, is a highly effective yet underutilised pathway for skills development, noting that around 72 per cent of respondents who had participated in apprenticeships or internships reported improved job performance as a direct result.

Despite this fact, it added, participation remained extremely low, with 93 per cent of respondents stating that they had not engaged in any work-based training over the past three years.

It further underscored the importance of recognising informal learning, given its near-universal prevalence, warning that without systems to validate skills acquired through experience, many workers, particularly those in the informal economy, remained excluded from better employment opportunities due to a lack of certification.

Drawing on worker surveys, online vacancy analysis, institutional data, and a review of 174 studies, the report warned that insufficient investment in inclusive learning systems could widen inequalities both within and between countries.

Aligning skills development with labour market demand, it argued, is essential to ensure that economic transformation benefits all segments of society.

‘Lifelong learning is the bridge between today’s jobs and tomorrow’s opportunities. It is not only about employability and productivity, but also about supporting decent work, driving true innovation, and building resilient societies,’ said ILO director general Gilbert F Houngbo.

The ILO findings also reflected global trends observed in Bangladesh, including increasing demand from employers for a combination of technical and soft skills.

ILO country director for Bangladesh Max Tuñón said that the report’s findings revealed several global trends that were also observed in Bangladesh, including employers’ demand for workers with a combination of technical and soft skills.

‘For that, we need to address the institutional fragmentation and work more closely with the private sector, to deliver quality training that meets the needs of a rapidly changing labour market,’ he said.

By addressing these gaps and aligning skills development systems with evolving labour market needs, the report recommended, Bangladesh could harness its demographic momentum to generate sustainable and decent employment while enhancing productivity and competitiveness across the economy.

High-speed travel across Dhaka seems no distant dream now as a multifaceted elevated expressway over the crammed capital gets the go-ahead after an updated feasibility study that estimates the cost at Tk 430 billion.
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The new government has in principle decided to construct the 39-kilometre Dhaka East-West Elevated Expressway (DEWEE) which is to connect three major national highways, including Dhaka-Chottagram with Dhaka-Aricha and Dhaka-Mawa through Narayanganj district, enabling traffic to pass through at a high speed.

Rail, Road Transport and Bridges and Shipping Minister Shaikh Rabiul Alam shared the BNP government's view on the megaproject at a stakeholder workshop organised Tuesday in the city to roll out the findings of the fresh feasibility study on the DEWEE.

State Minister for Road Transport and Bridges Razib Ahsan was also present as special guest.

The minister terms the project "highly necessary to bring positive transformation in the transport system" but lays importance on proper and timely implementation so the high-cost project does not become a burden on the country's economy. Globaleconomy insights

"The nearly 39-kilometre expressway is expected play role in improving regional connectivity by linking Chattogram, Sylhet, Barishal and Khulna divisions with northern regions without requiring traffic to pass through the main Dhaka city," he adds

The updated feasibility study proposes estimated cost of the DEWEE around Tk 430 billion which, however, suggests change in its original design to develop the elevated corridor with high-speed travel of up to 120km/h.

Civil-work part of the DEWEE project would require Tk 220 billion while Tk 140 billion would be needed for land acquisition and rehabilitation as 84 per cent of 804.61 acres of land along the route will be privately owned.

Bangladesh Bridges Authority (BBA) organised the stakeholder workshop at a city hotel after Infrastructure Investment Facilitation Company (IIFC) submitted the report as the transaction adviser to update previous study report.

After the first FS was completed in 2017, the DEWEE project was approved from the Cabinet Committee on Economic Affairs to develop the corridor under public- private partnership (PPP). Initiative to conduct the fresh study resumed in December 2024. GeographicReference

While presenting the key features of the DWEEE, BBA Chief Engineer Quazi Ferdous said corridor is proposed to be developed from Hemayetpur in Savar to Langalbandh in Narayanganj via Savar, Keraniganj, Fatullah, Siddhirganj and Bandar upazila.

The minister said, "The BNP is committed to developing various infrastructures necessary for the country without misuse of government funds centering causes like delay in land acquisition and implementation."

Chaired by Bridges Division Secretary Mohammad Abdur Rouf, the workshop was also addressed, among others, by Panel of Experts Prof M Shamim Z Bosunia, Roads and Highways Department Chief Engineer Syed Moinul Hasan and Managing Director of Mass Rapid Transit COmpay Ltd Md Shaugatul Alam.

Representatives from different government agencies and private sectors, including Bangladesh University of Engineering and Technology, shared their views on the feasibility-study findings, lying importance on integration with the 20-year Updating Revised Strategic Transport Plan.

Professor Mohammad Hadiuzzaman stresses setting a standard of the expressway, including elevated one, and suggests planning the expressway corridor in a way to have link with other expressways. Bangladeshbusiness directory

Other stakeholders point out the scope of limiting the inner and outer ring road as per the URSPT as the corridor is suggested over it.

Foreign investments in Bangladesh’s stock market plunged by 70 per cent over the past five years to $914.58 million at the end of December 2025, underscoring sustained capital outflows and a steady erosion of investor confidence.

Foreign equity holdings dropped sharply from $2,995 million in 2020 to $1,925 million in 2021, $1,263 million in 2022 and $1,085 million in 2023, before falling further to $865 million in 2024 and slightly recovering in 2025, according to Bangladesh Bank data.

The trend shows a continuous contraction, with the latest uptick failing to offset the steep losses accumulated over the period.

Data from Bangladesh Bank showed that total portfolio investment, combining equity and debt instruments, stood at $1.56 billion at the end of 2025, down from $4.731 billion in 2020.

The 8.5 per cent annual decline and a 25.1 per cent drop from 2023 indicate that foreign investors are reducing exposure not only to equities but also to fixed-income assets.

The contraction highlights a persistent retreat of foreign investors amid market volatility, macroeconomic pressure and governance concerns.

Equity securities, which dominate foreign portfolio holdings, accounted for $914.58 million, or 58.7 per cent of total portfolio investment.

While this segment posted a modest 5.7 per cent increase from 2024 levels, it remained significantly lower than 2020, indicating that the recovery is partial and fragile.

Transaction data further underscores the lack of investor confidence.

In 2025, foreign investors purchased $164.36 million worth of equities through non-resident investor accounts, while sales stood higher at $174.87 million.

This resulted in a net outflow of $10.51 million despite total transactions reaching $339.23 million.

The country’s stock market witnessed negative net investments for the last eight consecutive years.

The negative net investment signals that foreign investors are gradually exiting the market rather than expanding their positions.

Movements in non-resident investor’s taka accounts also reflect this trend.

Inflows dropped to $145.57 million in 2025, down 36.4 per cent from the previous year, while outflows remained significantly higher at $227.05 million.

The year-end balance in these accounts stood at only $22.44 million, indicating limited reinvestment.

Country-wise data shows a concentrated exposure, with the United States leading foreign equity investment at $391.85 million, accounting for 42.8 per cent of total holdings.

The United Kingdom followed with $187.35 million or 20.5 per cent, while the Cayman Islands held $114.92 million, representing 12.6 per cent.

The concentration suggests vulnerability to shifts in a few major investor bases.

Sector-wise, financial institutions, including banks, insurance and mutual funds, attracted the largest share of foreign investment at $429.54 million or 47 per cent.

Pharmaceuticals and chemicals accounted for $313.10 million or 34.2 per cent, while engineering and steel sectors held a much smaller portion at $54.31 million.

Experts said that the continued decline in portfolio investment reflects structural weaknesses in the capital market, including poor governance, limited depth and recurring instability.

Without reforms to improve transparency, strengthen regulation and restore investor confidence, foreign participation is unlikely to recover meaningfully.

Bangladesh's creative or orange economy is expanding at a pace that outperforms much of the broader economy, yet it remains almost invisible in policy.

New data show the sector has contributed over Tk9,000 crore to GDP in the previous fiscal year, raising a pressing question: why is one of the fastest-growing economic segments still treated as culture, not commerce?

The Economic Census 2024 by the Bangladesh Bureau of Statistics (BBS) found that employment in the Arts, Entertainment and Recreation sector jumped to 1,12,829 in 2024, a 237% increase from just 33,441 in 2013.

The surge comes despite the absence of any explicit policy push, suggesting that market demand, digital platforms and a growing freelance ecosystem are driving expansion on their own.

Rapid growth, limited share

The macroeconomic picture supports that trend. The sector contributed Tk9,193 crore to GDP in the fiscal 2024-25, a 15.4% increase from the previous fiscal year, significantly higher than the national nominal GDP growth rate of 10.2%.

In comparative terms, the creative economy is now growing faster than agriculture (12.8%), industry (10%) and services (11.8%), albeit from a much smaller base, according to BBS data.

Still, its footprint in the overall economy remains marginal. At just 0.17% of a Tk55 lakh crore economy, the sector's contribution is overshadowed by traditional growth engines. Economists say this contrast – rapid expansion alongside minimal policy recognition – points to a structural gap in how Bangladesh defines and supports emerging sources of economic value.

For decades, economic policy has prioritised manufacturing, remittances and agriculture, leaving creativity outside the formal development framework. But with a fast-growing workforce and growing output, the data suggest that the question is no longer whether the creative economy matters, but why it continues to operate without a clear policy anchor.

Sakib Bin Amin, a professor of economics at North South University, told The Business Standard that Bangladesh's creative industry remains largely informal. Even though the industry's growth looks positive on paper, practitioners often struggle to survive as they lack a safety net, no pensions, no retirement benefits, and no professional protection, he said.

The current state of the creative industry in Bangladesh is defined by profound job insecurity, said Prof Sakib.

"For example, perhaps only 5% of our musicians can afford to treat their craft as a full-time profession. For the rest, it becomes a 'second job' due to a lack of financial sustainability. We also see a 'seasonal' earning cycle, where even the most talented individuals are forced to migrate or leave the industry entirely in search of stability," he said.

To address these gaps, Prof Sakib said, "To transform this sector, the government must formally recognise it under a policy framework and integrate artists into national pension and benefit schemes.

He said policymakers must focus on inclusion and decentralisation, ensuring that rural talent and female artists receive the institutional support needed to professionalise their craft.

What is orange economy

The term "orange economy" coined by Felipe Buitrago and Iván Duque in their 2013 book "The Orange Economy: An Infinite Opportunity" captures a wide spectrum of creative industries, from art, crafts and films to fashion, music, cultural heritage and video games. Globally, it has turned creativity into a multi-trillion-dollar engine of growth.

In Bangladesh, however, that transformation remains incomplete. Artists, designers, freelancers, athletes and storytellers are still largely viewed as cultural contributors rather than economic actors, leaving a fast-emerging sector outside the country's core policy framework.

For generations, families have followed a familiar script: education, a conventional profession, and financial stability. Creativity rarely figured in that roadmap – not for lack of talent, but because economic policies offered little incentive to pursue it as a viable career.

Global evidence, however, points in a different direction. In its last Creative Economy Outlook 2024, UN Trade and Development revealed the growing role of creative industries in trade and economic expansion. Across countries, the sector contributes between 0.5% and 7.3% of GDP and accounts for 0.5% to 12.5% of total employment – underscoring its potential as both a growth driver and a source of jobs.

"The creative economy has the right forces pushing its sails. This is not just art. It is an economic powerhouse that we must harness together, leaving no one behind," said Rebeca Grynspan, secretary-general of UNCTAD, in the report.

Low public investment

A long view of Bangladesh's budgets tells a remarkably consistent story. Over a decade from FY12 to FY26, three ministries of recreation and culture development central to the orange economy – the cultural affairs ministry, the information and broadcasting ministry, and the youth and sports ministry – have received below 1% of the total development budget for nearly two decades.

For FY26 original budget, together, their combined development budget allocation stands at Tk1,982 crore – a figure that represents a mere 0.81% of the total development budget of Tk2,45,609 crore. Meanwhile, it was 0.72% in FY07.

The country saw nine basis points of movement in twenty years, while the creative workforce tripled.

At the same time, education has remained one of the top recipients of public expenditure, third only to public administration and interest payments, but it remains disconnected from the creative economy.

If the orange economy is to grow meaningfully, experts say, it should not come from recreation and culture ministries alone; it should come from classrooms. The issue is not spending more, but spending differently: aligning education with creativity, skills, and content production. That is where the real shift begins.

Regional comparison and policy gap

The regional contrast makes that habit harder to defend. India is strengthening the orange economy and positioning it as a global hub for content creation. Many initiatives have been launched.

In February 2026, in its Union Budget, India announced the establishment of AVGC – Animation, Visual Effects, Gaming and Comics – Content Creator Labs across 15,000 secondary schools and 500 colleges nationwide.

The Indian Institute of Creative Technologies, Mumbai, has been designated as the nodal agency for planning, coordination and phased rollout of the Content Creators' Labs.

The announcement did not arrive without preparation. India's AVGC Promotion Task Force, constituted in April 2022, spent years developing a comprehensive national strategy and policy.

Every economy chooses what it decides to grow. Bangladesh chose garments. That was rational in 1990. In 2026, with a $456 billion economy, that single choice still defines the country's economic identity – while the orange economy, an emerging sector with proven growth momentum, waits for a strong policy decision that has not come.

In search of its next engine of growth, Bangladesh does not have to look far for a model. A dedicated task force and a national orange or creative economy strategy could be the institutional turning point.

Five lakh jobs, 1.5% of GDP: A promise waiting for a plan

There are early signs that the newly elected government of Bangladesh is beginning to connect culture with economic possibilities.

The government has initiated the recruitment of sports and music teachers in primary schools and introduced incentive schemes for athletes.

A nationwide grassroots sports initiative, "Notun Kuri Sports," launched on 2 May, aiming to identify talented athletes from the grassroots across the country.

In its election manifesto, the ruling BNP committed to the development of the creative economy to 1.5% of GDP, generating five lakh jobs, establishing regional creative hubs, forming a long-term investment fund, and building a formal institutional framework.

It also emphasised sports, national culture, and creative talent development in primary and secondary education.

Meanwhile, the next national budget for FY27 knocks at a hopeful moment. For once, the numbers, the political will, and the sector's own momentum are pointing in the same direction.

The good news is that Finance Minister Amir Khosru Mahmud Chowdhury said at a pre-budget discussion with the leaders of the Economic Reporters' Forum on 25 April that the creative economy will be recognised in the upcoming budget.

He noted that the government is working to bring rural cottage industries, artisans and creative industries into the mainstream.

The finance minister also said sports, culture, theatre, cinema and music sectors are also being given importance as part of the economy, which were neglected until now.

Money launderers, scammers and wilful defaulters will not be eligible for a Tk 20,000 crore refinance fund being prepared by the central bank to restart fully or partially closed factories, according to Bangladesh Bank (BB) officials.

They said only genuine businesses whose factories have shut down due to unavoidable circumstances and which are willing to repay their loans will qualify for loans from the fund.

From the fund, affected factories will receive low-interest working capital loans. In some cases, term loans may also be provided.

BB officials, who are familiar with the matter, told The Daily Star yesterday that the interest rate could be set at 13 percent, with a possible 5 percent subsidy.

The central bank will finalise the policy after it receives approval from the finance ministry on the interest subsidy. The fund will then be launched once all procedures are completed.

On May 1, Prime Minister Tarique Rahman said the government had taken initiatives to gradually reopen closed factories across the country.

He said he had instructed relevant authorities to assess how quickly each factory could be brought back into operation to create employment.

Subsequently, the BB asked commercial banks to submit lists of closed factories to help identify those eligible for financing support.

So far, more than 1,000 fully and partially closed factories and industries have been listed by commercial lenders and submitted to the central bank, according to BB officials. Each of these entities has loans of more than Tk 100 crore.

Besides, a committee headed by BB Deputy Governor Md Kabir Ahmed has begun drafting a detailed policy for the fund.

Central bank officials said discussions are ongoing between the central bank and the government on the form of support needed to reopen closed factories. Once these discussions are completed, the fund will be formed and the policy issued.

Bankers, however, have sought a government or central bank guarantee in case loans extended to reopen factories turn into defaults or bad loans again.

They have also called for additional collateral from entrepreneurs, on top of existing security, for new lending.

In addition, they have proposed allowing banks to appoint consultants to monitor whether factories are operating properly and whether loan funds are being used as intended.

After the fall of the Awami League-led government in August 2024, the central bank under the interim government introduced an easier loan rescheduling policy for affected factories and industries.

Foreign direct investment (FDI) in Bangladesh has rebounded once again. In 2025, net FDI increased by 39.36% compared with the previous year.

Net FDI in the outgoing year stood at nearly $1.77 billion, up from $1.27 billion in 2024.

These figures were revealed in Bangladesh Bank's latest report published yesterday (5 May).

According to the report, FDI inflows to Bangladesh had declined over the past three years but rebounded in 2025. Total FDI inflows in 2025 were $4.69 billion, while FDI outflows stood at $2.92 billion.

"The inflows of FDI have contributed significantly to the economic development of Bangladesh. Due to political instability, the inflow of FDI had slowed during the middle two quarters in 2024."

Net FDI refers to the total inflow of foreign direct investment into a country minus the outflows of investment during a specific period.

According to Bangladesh Bank data, growth in new equity investment was comparatively slow. However, reinvested earnings increased and intra-company loan flows rose significantly, contributing to higher net FDI.

The report said equity capital within net FDI increased by only $10 million in 2025.

On the other hand, reinvested earnings rose by $159 million, or 25.68%.

Intra-company loans increased by $330 million, or three times higher than the previous year.

Reinvested earnings are profits retained and reinvested by a foreign-owned firm instead of being distributed as dividends, contributing to business expansion and counted as FDI.

Intra-company loans are financial transactions between a parent company and its foreign affiliate, used for funding operations or investments, and are also considered a component of FDI.

Net FDI inflows in Bangladesh stood at $1.77 billion in 2025.

The highest FDI-attracting sectors were power, food products, textile and clothing, banking, telecommunication, chemicals and pharmaceuticals, trading, agriculture and fishing, leather and leather products, and computer software and IT.

The major country-wise net FDI inflows, arranged in descending order, were the Netherlands, China, Singapore, Republic of Korea, and the United Kingdom.

Overall stock position of FDI

The stock position of FDI reached $20.6 billion at the end of December 2025, increasing by $17.6 billion, or 9.66%, compared with December 2024.

At the end of December 2025, the largest FDI stock holders were the United Kingdom, Singapore, China, Republic of Korea, and the Netherlands.