Saudi Arabia, Russia and five other OPEC+ countries increased their oil production quota on Sunday in an expected move aimed at demonstrating continuity at the cartel after the shock withdrawal of the United Arab Emirates.

The seven major producers will add 188,000 barrels per day to their total production quota for June amid the price pressure unleashed by the Mideast war, as part of "their collective commitment to support oil market stability", according to a statement published by OPEC+.

The statement, following an online meeting of Algeria, Iraq, Kazakhstan, Kuwait, Oman, Russia and Saudi Arabia, made no mention of the United Arab Emirates, which quit the body on Friday, three days after announcing its withdrawal.

Rystad Energy analyst Jorge Leon told AFP that the silence on the UAE's departure was a sign of tense relations.

Oil market analysts had widely expected the increase of 188,000 barrels, similar to the 206,000-barrel daily increases OPEC+ announced in both March and April when the portion allotted to the UAE was subtracted.

"By sticking to the same production path -- just minus the UAE -- it's acting as if nothing has happened, deliberately downplaying internal fractures and projecting stability," Leon said.

Strait of Hormuz bottleneck remains

But raising the quota on paper may not have much impact on actual production, which is already short of the limit.

Untapped OPEC+ reserves are mainly located in the Gulf region, and exports there are trapped by the blockade of the vital Strait of Hormuz, imposed by Iran in response to the US-Israeli strikes that started the war on February 28.

Leon, the Rystad Energy analyst, told AFP on Sunday that the cartel was looking to send "a two-layer message" that the UAE's exit would not disrupt how OPEC+ operates and that the group still exerts control over global oil markets despite massive disruption to oil trade due to the war.

"While output is increasing on paper, the real impact on physical supply remains very limited given the Strait of Hormuz constraints," Leon told AFP. "This is less about adding barrels and more about signalling that OPEC+ still calls the shots."

The Strait of Hormuz blockade is hitting Iraq, Kuwait, Saudi Arabia and the UAE. The latter's production will no longer count towards OPEC quotas.

"Total OPEC+ output with quota fell to 27.68 million bpd in March, against a monthly quota of 36.73 million bpd, a shortfall of approximately 9 million bpd driven almost entirely by war-related disruption rather than voluntary restraint," said Priya Walia, another analyst at Rystad Energy, ahead of Sunday's meeting.

Iran, whose exports are now the target of a retaliatory US blockade, is an OPEC+ member but is not subject to quotas.

Russia, the group's second-biggest producer, has been the main beneficiary of the situation. But despite soaring energy prices, it appears to be struggling to produce at the level of its current quotas as its own war in Ukraine drags on and Ukrainian drones hit oil industry facilities.

'A big deal'

Amena Bakr, an analyst at Kpler, described the UAE's exist as "a big deal" for OPEC.

Previous withdrawals from the group by Qatar in 2019 and Angola in 2023 were less significant by comparison, Bakr told a video conference on the UAE withdrawal.

The UAE has invested massively in infrastructure in recent years, and state-owned oil company ADNOC plans to increase output by five million barrels a day by 2027 -- far above the country's last quota of around 3.5 million barrels.

ADNOC also pledged on Sunday to spend $55 billion on new projects over the next two years, confirming that the company is "accelerating growth and delivery of its strategy".

There is also the risk for OPEC+ that other countries will leave such as Iraq and Kazakhstan, which have faced repeated accusations of surpassing their quotas.

The government launches a broad-based drive to augment revenue receipts outside the NBR purview with a target of netting Tk 910 billion for the forthcoming fiscal year, as a bigger budget is imminent.
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Official count shows the amount for the fiscal 2026-27 is 39.5-percent higher from that of the outgoing fiscal year's target.

Of the total sum, the Finance Division is set to fix a non-tax revenue target of Tk 660 billion, up from Tk 460 billion in the current fiscal year, 2025-26, while the target for non-NBR taxes is expected to be raised to Tk 250 billion from Tk 190 billion.

Non-tax revenue is expected to rise by 43.48 per cent while Non-NBR tax collection is projected to increase by 31.58 per cent in the next fiscal year, reveals a proposal placed at the Budget Monitoring and Resource Committee meeting recently hosted by the Finance Division.

The just-in government is deemed under tremendous pressure to increase revenue collection to create requisite fiscal space for funding poor people's needs.

The International Monetary Fund (IMF) wants Bangladesh substantially enhances its tax-to-GDP ratio to 9.21 per cent by next fiscal year from the current rate of 6.9 per cent.

To achieve the targeted tax-to-GDP ratio of 9.21 the government is going to set total revenue-collection target at Tk 6.95 trillion for the upcoming fiscal year, up by 23.23 per cent from the original one for the current fiscal year.

A review of internal government data, however, shows actual non-tax revenue collection has consistently lagged behind budgetary targets, with performance deteriorating in recent years.

In FY2023-24, actual receipts came to just 55.63 per cent of the original target, down from 70.47 per cent in FY 2018-19.

Officials say the latest push focuses on modernising collection systems, rationalising fees, expanding revenue bases, and enforcing stricter process for recovery of government dues.

The non-NBR tax collection exceeded 80 per cent of the targets on average in FY2016-17 and FY2017-18, but in the subsequent years, receipts from this segment fell to nearly 40 per cent of the original budgetary targets.

The Finance Division has recommended that all ministries and divisions focus on modernised and automated revenue collection, mandatory use of A-challan, rationalisation of outdated fees, and expansion of revenue bases ahead of the national budget formulation.

In tripartite meetings held with various ministries during the budget-preparation process in last few weeks, the Finance Division also emphasised "stricter enforcement, improved asset management, and recovery of long-pending government dues, particularly in sectors such as transport, housing, and infrastructure where collection performance remains weak".

At the core of the recommendations is a push for ministry-specific accountability through realistic target setting, stronger governance, and data-driven reforms aimed at reducing revenue leakages and improving overall fiscal sustainability, according to an analysis of the minutes of 18 such meetings.

The minutes reveal that the Ministry of Food will be the largest contributor of non-tax revenues in the next fiscal year, with a recommended target of Tk 226.35 billion, largely driven by food-grain sales.

Major non-tax revenue sources include licence fees, fines and penalties, forfeiture of deposits, rent from non-residential buildings, government vehicle-usage fees, and proceeds from the sale of tender and other documents, though collection efficiency remains suboptimal.

The Finance Division has recommended reviewing these revenue streams, expanding their coverage, and rationally adjusting fees and charges, with the Finance Secretary noting that such reforms could "significantly improve overall revenue mobilisation".

Road Transport and Highways Division (RTHD) has been assigned to mobilise Tk 67.87 billion, but concerns persist over the weak collection by agencies like the Roads and Highways Department (RHD) and Bangladesh Road Transport Authority (BRTA).

The authorities have been advised to strengthen enforcement of vehicle registration and fitness certification and modernise toll-collection systems, claiming that a 25-percent hike in BRTA fees in December 2022 fails to ensure revenue growth.

The division has also been asked to recover Tk 12.85 billion in outstanding dues from Bangladesh Road Transport Corporation (BRTC).

The Ministry of Industries, with a target of Tk 10.42 billion, has been experiencing declining collection and has been advised to automate revenue processes and expand coverage. The Ministry of Housing and Public Works has been flagged for a sharp drop in rental income and asked to incorporate additional sources like transfer and mutation fees into its estimates.

In contrast, the Ministry of Foreign Affairs has seen its revenue target sharply revised upward to Tk 1.0 billion from Tk 181.8 million after recent collections exceeded earlier projections.

Smaller ministries, including Women and Children Affairs and Social Welfare, have been instructed to revise outmoded fee structures.

The review also has highlighted governance concerns, particularly in the Bridges Division, where outstanding government loans amounting to around Tk 8.0 billion remain unsettled, including some agreements dating back to 1994.

Officials note a structural shift in revenue composition, with non-tax revenue gaining prominence as non-NBR taxes continue to under-perform.

"Boosting government revenue requires equal emphasis on both tax and non-tax streams -- from within and beyond the National Board of Revenue as non-NBR sources should account for a quarter of total receipts," says Prof Mustafizur Rahman, Distinguished Fellow at the Centre for Policy Dialogue (CPD).

He told The Financial Express that significant inefficiencies persist in revenue collection, noting that in many cases tolls or rents due to the government are leased out to private parties at lower rates, leading to revenue losses. FinancialNews Subscription

"While discussions often focus on expanding the tax base or leveraging technology in tax administration, equal importance should be given to addressing leakages and structural weaknesses in non-tax revenue streams," he suggests.

Expressing concern over the performance of state-owned corporations and industrial enterprises, he says it is important to examine why many public entities have been incurring losses for decades.

Development cooperation, trade and regional security issues besides Prime Minister Tarique Rahman's possible China visit may come up prominently during discussion between foreign minister Khalilur Rahman and top Chinese officials.
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The foreign minister starts for Beijing today (Tuesday) for talks with his Chinese counterpart Wang Yi, as both countries seek to recalibrate relations amid shifting geopolitical and domestic dynamics.

Scheduled for May 5-7, the visit at the invitation of China's foreign ministry is expected to cover a wide-ranging agenda inclusive of possible future visit to China by Prime Minister Tarique Rahman.

There are speculations in the diplomatic circles that such a top-level visit may take place by July this year.

The Chinese government has extended invitation to Tarique Rahman for a visit to China, soon after he became prime minister in February this year.

However, regarding the trip of the foreign minister to Beijing, officials say this visit could serve as an important avenue for positive engagement.

"In light of the new context and evolving global realities, both sides will have to define the contours of their relationship in the coming days," one of the diplomatic sources notes.

Although Beijing has maintained strong interest in Bangladesh, it had limited engagement with the previous interim administration. With an elected government now in place, Chinese officials are expected to pursue deeper cooperation, building on past experience with the current leadership.

At the same time, the ruling Bangladesh Nationalist Party (BNP) may need to reassess its approach to China after a prolonged period out of power.

Officials in Dhaka and Beijing have outlined key priorities for the talks. Bangladesh is expected to push for progress on the modernisation of Mongla Port, the expansion of agricultural exports such as jackfruit, and the launch of direct flights on Guangzhou-Chattogram and Shanghai-Chattogram routes. City& Local Guides

Other issues likely to feature talks include the relocation of Chinese industries, development of Chinese-backed economic zones, and renewed efforts to address the Rohingya crisis.

Dhaka is also expected to seek Beijing's support for its candidacy for the presidency of the 81st session of the United Nations General Assembly.

China, one of Bangladesh's largest development partners, is likely to emphasise cooperation on the proposed Teesta megaproject, alongside broader engagement under the Belt and Road Initiative (BRI).

Beijing may also seek to expand its strategic influence through initiatives such as the Global Development Initiative, in the changing global paradigm.

Regional issues are also expected to be on the agenda, including the situation in Myanmar and the wider implications of instability in the Middle East.

Diplomatic sources in Dhaka say Bangladesh could seek about US$2.0 billion in financial assistance from China to address urgent energy needs and support economic stability. The issue may be raised during the visit.

A planned meeting between the two countries' foreign secretaries in Dhaka last month was postponed at Beijing's request, officials have said, with preparation for the ministerial visit continuing.

In a statement Monday, China's foreign ministry described the two countries as "traditional friendly neighbours and comprehensive strategic partners", noting that relations have developed steadily over more than five decades on the basis of mutual respect and equality.

"China attaches great importance to China-Bangladesh relations and is willing to take this visit as an opportunity to work with the new Bangladeshi government to enhance political mutual trust and deepen exchanges and cooperation in various fields," a spokesperson says, adding that Beijing aims to promote high-quality Belt and Road cooperation and further advance the comprehensive strategic partnership.

At dawn in a small village in Bhuapur, Tangail, Alamgir Hossain used to open his poultry sheds to the clamor of thousands of chickens; now the silence inside now says more than the noise ever did.

Alamgir, who once oversaw a thriving operation producing 10,000 eggs daily, has been forced to shutter half of his sheds – the quiet has come to reflect a business he can no longer sustain. After more than two decades in poultry farming, he says the numbers no longer add up.

"It costs me around Tk10 to produce an egg, but I often have to sell it at Tk8. I can't survive with losses month after month. Many around me have already quit. I may have to shut down too."

His experience mirrors a broader strain across Bangladesh's poultry sector, where small and medium farmers are struggling to stay afloat amid rising costs and limited returns.

Industry insiders say production costs have more than doubled over the past five years: what once cost Tk100 now costs Tk210 or more. Meanwhile, Bangladesh Poultry Industries Association (BPIA) data states that growth in the sector has slowed from 4.5% to about 3.2% during the same period.

Feed has become the dominant expense, accounting for 80–85% of total production costs, according to farmers. At the same time, higher corporate taxes, advance income tax (AIT), and turnover tax have added further pressure in the current fiscal year.

Shafiqul Islam, a farmer from Bhaluka in Mymensingh, closed his 15,000-bird farm last year. "I used to buy a sack of feed for Tk2,100. Now it costs over Tk3,500. With loan instalments and electricity bills, I couldn't continue," he said. "I had to sell land to repay debts."

Rubina Akter from Monohardi in Narsingdi described a similar struggle. "I started this farm to support my daughters' education. Now I can barely run the household," she said.

Feed prices outpace market returns

Farmers say the sharp rise in feed prices has not been matched by increases in egg and chicken prices, leaving them squeezed between input costs and market rates.

Feed prices have risen by 60-65% over five years, from around Tk2,000-2,200 per sack in 2020 to Tk3,500-3,600 in 2025. In contrast, wholesale egg prices have increased by only 20-25%, from Tk6-7 to Tk8-9 per piece.

Broiler prices show a similar pattern. Wholesale prices rose from Tk120-130 per kg in 2020 to Tk140-150 in 2025 – an increase of just 15-20%, far below the rise in production costs.

"This gap is killing us," said Abdul Kader, a farmer from Chandina in Cumilla. "Feed costs have nearly doubled, but chicken prices haven't. Sometimes we can't even recover costs. Small farmers will disappear if this continues."

Tax changes deepen the strain

Farmers and industry leaders say recent tax hikes have worsened the situation.

According to the National Board of Revenue (NBR), corporate tax for poultry-related companies has been raised from 15% to 27.5% this fiscal year. AIT has increased from 1% to 5%, while turnover tax has gone up from 0.6% to 1%.

Mosharraf Hossain Chowdhury, president of the BPIA, said the effects of the tax changes have been immediate. "The tax hike has a chain effect. Feed companies have increased prices, pushing up production costs," he said.

Farmers estimate that producing one kilogram of broiler now costs around Tk146, while wholesale prices hover between Tk145 and Tk148, leaving little or no margin.

The concerns were raised before NBR Chairman Abdur Rahman Khan last month at a pre-budget meeting at the revenue board. Responding to the industry's claims, he said the tax adjustments were part of broader reform measures.

"Our goal was to rationalise the tax structure and increase revenue collection. Many sectors had long enjoyed tax benefits, which needed review," he said.

He added that the government is aware of the sector's difficulties and may consider adjustments in the next budget.

Higher taxes than regional peers

Industry leaders argue that Bangladesh's poultry sector faces a heavier tax burden than competitors in the region.

BPIA President Mosharraf said Thailand offers five to eight years of full tax exemption for feed industries, Malaysia waives sales tax on feed raw materials, India imposes no advance income tax on imports, and Nepal provides tax relief on key feed inputs.

Dr Ripon Kumar Mondal, a professor of agricultural economics at Sher-e-Bangla Agricultural University, stressed the urgency of reducing feed costs. "Without reducing feed prices, the poultry sector cannot survive. Taxes and duties on imported raw materials must be lowered," he said.

Experts have also suggested cutting corporate tax to 10% and aligning turnover tax with actual profits to help revive the sector.

According to industry leaders, an estimated 60-70 lakh people are directly and indirectly employed in the poultry sector, underlining the wider economic stakes.

Safir Rahman, secretary general of the BPIA, warned of deeper consequences if policy support does not follow. "Without policy support in the next budget, new investment will stop. Existing farmers will leave. Eggs and chicken will become unaffordable for ordinary people," he said.

For Alamgir, the crisis has already moved beyond statistics. "If we cannot survive, there will be no eggs in the market," he said. "Then what will people eat?"

On a single factory floor in Araihazar, around 200 workers – most of them women – sit in a structured production line, placing individual hair strands, sewing, and assembling frames. The finished products, high-quality customised wigs, are shipped to Japan and Singapore.

This is Artnature Bangladesh Limited, one of three companies already in production at the Bangladesh Special Economic Zone (BSEZ), a 1,000-acre industrial development jointly backed by the governments of Bangladesh and Japan, located in Narayanganj's Araihazar.

The scene on the factory floor is modest in scale but significant in signal. BSEZ, also known as the Japanese economic zone, is no longer just a plan on paper.

At least 12 local and foreign companies have secured land in the zone, with combined proposed investments of around $353.4 million. Three are already in production, while around 30 more firms from various countries are in the pipeline.

Active development work was observed during a visit to the site on 9 April. In areas where production has begun, well-constructed internal roads are in place. In plots yet to be built on, wide roads and drainage systems have already been laid.

The Bangladesh Economic Zones Authority (Beza) has handed over around 230 acres to BSEZ so far, with another 220 acres due for transfer within the year.

"The entire area has already been filled and prepared for industrial use," a Beza official said.

Investors span a broad range of industries – home appliances, textile chemicals, FMCG, food processing, hair accessories, and packaging – suggesting BSEZ is developing as a diversified industrial hub rather than a single-sector cluster.

Who are already operating

Singer Bangladesh Limited, acquired by Turkey-based Koç Group in 2019, leads in both scale and investment. Allocated 33.4 acres, the company has proposed an investment of $78 million, of which $56.3 million has already been realised.

Starting operations from 2024, it operates in the home appliances segment and represents the zone's largest single operational presence.

Japan-based Lion Kallol Limited has begun production in the FMCG sector on 8.4 acres, with $7.6 million invested out of a planned $19.4 million. Its initial product lineup includes Mama Lemon Liquid Dish Wash and Systema Toothbrush, with plans to gradually expand its household and personal care range. It began factory operations in March this year.

Artnature rounds out the trio, having realised $9 million of a planned $20 million investment on 4.9 acres. Beyond its production floor, the factory also houses research and development operations, with staff working on customised product design. Artnature began its operations in November 2025.

"We are currently operating as a 100% export-oriented company," said factory General Manager Md Tanvir Rahman. "We plan to expand into raw fiber processing in the future."

He added that while a domestic market for ready-made wigs exists in Bangladesh, Artnature targets the customised segment, an area not yet well established locally.

Who are next

Germany's Rudolf Bangladesh Limited and Japan's Nicca Bangladesh are entering the textile chemicals sector. Rudolf has invested $2.5 million of a planned $20 million, while Nicca has committed $5 million of a planned $7 million.

In food processing, UK-Bangladesh joint venture Pladis ACI Bangladesh Limited is preparing to begin construction on 7.2 acres, with $3 million invested out of a proposed $27 million.

Chinese investors are making a particularly significant push. BSN (Bangladesh) Packaging Company is planning an $80 million project on 9.3 acres, the largest single proposed investment in the zone, with $6.5 million already committed. Leaders Label Material (Bangladesh) has invested $3 million of a planned $25 million.

Sweden's Nilorn Bangladesh (U-2) Limited. has committed $15 million on 2.47 acres. Japan's Bengal Iris Takumi., specialising in textile accessories, has invested $2 million of a planned $7 million. A local Bangladeshi company has secured 5 acres, planning a $25 million investment.

The infrastructure question

For manufacturing investors, infrastructure readiness is often the difference between a signed agreement and an operational factory. On this front, BSEZ is making progress though not everything is in place yet.

Electricity supply is connected to the national grid, and a dedicated 230-kilovolt substation is under development to improve power quality and reliability. Water supply and treatment facilities are fully operational. Natural gas, critical for energy-intensive industries, is the remaining piece.

BSEZ Managing Director Chiharu Tagawa said a government-installed gas supply station has been prepared and that supply is expected to reach the zone by mid-2026.

"Once supply becomes available, it will significantly improve efficiency for energy-intensive industries," he added. Until then, the gas connection remains a limiting factor and one that investors in heavy manufacturing will be watching closely.

Post-election momentum

Tagawa said investor interest picked up significantly following Bangladesh's national election, with inquiries now coming from more than 30 companies.

"We cannot count exactly, but 30 companies from different countries – including US, China, Japan, and Korea – are now interested in BSEZ. Day by day, it is increasing," he said.

Key areas of interest include home appliances, motorcycle parts, batteries, FMCG, and consumer goods. Tagawa attributed the interest to Bangladesh's large domestic market, export potential, and the operational advantages of a dedicated economic zone.

Bangladesh Investment Development Authority (Bida) and Beza Executive Chairman Ashik Chowdhury echoed that assessment, noting that large-scale commitments tend to generate further interest.

"Such large-scale investments create a positive signalling effect. We already have several major investment proposals in the pipeline, which are under discussion. We expect significant progress in investment inflows this year," he said.

The bigger picture

BSEZ has created around 3,000 jobs to date. The long-term target is to accommodate 90-100 companies across the full 1,000 acres within the next six to seven years, with total investment expected to reach $1-2 billion.

Around 268 acres remain available for allocation. Beza Deputy Secretary Mohammad Zakaria Mithu said the focus is now on converting interest into implementation.

The ground-level reality at BSEZ today – operational factories, roads laid through empty plots, gas infrastructure nearly ready – reflects a zone that has moved past its early stage but still has most of its story left to write.

Whether the 30-plus companies in the pipeline translate into the next wave of operational companies will determine whether BSEZ becomes the industrial landmark both governments envisioned.

Bangladesh has sought expanded support from the Asian Development Bank (ADB) as geopolitical tensions, inflation, and supply chain disruptions have increased the country’s energy-related expenditures by an estimated $3 billion.

Finance Minister Amir Khosru Mahmud Chowdhury made the plea at a session of the Board of Governors at the 59th annual meeting of ADB in Samarkand, Uzbekistan.

Some 47 countries, including Bangladesh, made their presentations at the session.

The finance minister reminded participants that they are meeting at a time of heightened global uncertainty.

“Geopolitical tensions, inflation, tighter financial conditions, and supply chain disruptions are reshaping development trajectories,” he said.

For Bangladesh, a highly energy-deficient country that relies on imports, the conflict in the Middle East has further intensified energy and trade pressures.

Chowdhury said this has resulted in an estimated additional $3 billion in energy-related expenditures, raising external financing needs for the South Asian country.

“We appreciate ADB’s timely budget support for macroeconomic stability and request that countercyclical financing instruments remain available should global risks escalate,” he said.

He noted Bangladesh’s high vulnerability to climate change and urged the ADB to expand concessional climate financing as floods, cyclones, salinity intrusion, and sea-level rise continue to threaten livelihoods and infrastructure.

“We seek expanded concessional climate finance for adaptation and mitigation, including resilient infrastructure, climate-smart agriculture, disaster risk reduction, and nature-based solutions.”

As Bangladesh aims to generate 20 percent of its energy from renewable sources by 2030, he also requested ADB’s leadership in the Bangladesh Climate Development Partnership to advance renewable energy, ecosystem restoration, and river and canal rehabilitation.

He said Bangladesh remains firmly committed to reform-driven development. “Our priorities include energy and food security, financial resilience, revenue modernisation, connectivity, export diversification, digital transformation, skills, jobs, social protection, and balanced regional development.”

“We also welcome support for regional connectivity through SASEC (South Asia Subregional Economic Cooperation) and wider links among SAARC and with ASEAN countries to strengthen supply chains and expand trade and investment opportunities,” he said.

He stressed the mobilisation of private capital and blended finance, renewable energy, urban development, and digital development for stronger regional crisis response capacity and deeper energy cooperation.

Bangladesh also emphasised enhanced support for AI readiness and future skills, and greater focus on job creation in emerging sectors.

Chowdhury also cited Bangladesh’s challenges in hosting a significant population of forcibly displaced Myanmar nationals on humanitarian grounds and sought ADB’s enhanced support for both displaced populations and host communities.

The finance minister sought ADB’s continued support for timely project delivery and capacity building.

He said Bangladesh encourages ADB to support transformative investments that deepen the country’s regional connectivity, modernise infrastructure, ensure energy security, and strengthen digital and logistics capacity.

“This can boost productivity, unlock the potential of our north-south corridors, create jobs in emerging industries, and reduce poverty and regional disparities.”

The 59th annual meeting of the Board of Governors of the Asian Development Bank (ADB) opened today, with its President Masato Kanda urging countries in Asia and the Pacific to “act together to develop together” through stronger cross-border connections to secure the next generation’s future.

“The decisions we make at this new crossroads will secure the future for the next generation,” he told the opening session in Samarkand, Uzbekistan.

“In this fragmented world, traditional and isolated development responses will fail. To survive and thrive in this new era, we must build deeply connected and resilient systems,” he said.

More than 4,000 participants, including policymakers, private sector leaders, development partners, and innovators from over 100 countries, are attending the meeting under the theme “Crossroads of Progress: Advancing the Region’s Connected Future.”

From Bangladesh, Finance Minister Amir Khosru Mahmud Chowdhury, Economic Relations Division Secretary Md Shahriar Kader Siddiky, and senior officials are attending the event.

Kanda highlighted how shocks now travel rapidly across borders—through energy markets, supply chains, and digital networks—hitting communities least able to absorb them. Addressing these challenges requires coordinated regional solutions that go beyond national boundaries, he said.

The ADB is responding by scaling up investments and accelerating reforms to help countries integrate infrastructure, markets, and institutions across the region, he added.

Kanda noted that the ADB has moved decisively to provide crisis-response support to its members during the ongoing Middle East conflict, becoming the first development partner to offer financial assistance to affected countries, which are expected to face heightened economic pressures.

Last year, the ADB provided $29.3 billion in financial support to the region while implementing reforms to deliver assistance more quickly and at scale.

The ADB president cited the launch of a $70 billion initiative to build regional systems, including $50 billion for a pan-Asian power grid to integrate renewable energy across borders, enhance energy security, and lower emissions.

Another $20 billion initiative aims to expand cross-border digital connectivity and narrow the region’s digital divide.

Kanda described the ADB as “an anchor of stability,” uniquely positioned to help steer the region through geopolitical fragmentation, conflict, economic disruptions, and escalating environmental stress.

“ADB is the main bank for the region. We have an unmatched regional mandate,” he said.

However, the ADB’s work is far from finished, Kanda added, noting that the bank will leverage its operational capabilities as a financier, advisor, and mobiliser to address challenges such as mobilising private sector funds for development and reversing environmental degradation.

“The work ahead is immense, but our purpose is clear. We have the strategy. We have the resources. We have the collective will to execute,” he said.

Founded in 1966, the ADB is a multilateral development bank supporting inclusive, resilient, and sustainable growth across Asia and the Pacific. It is owned by 69 members, including 50 from the region.

Bangladesh joined the ADB in 1973. As of December 31, 2025, the ADB had committed 758 public sector loans, grants, and technical assistance totalling $35.6 billion to Bangladesh. Its current public sector portfolio in the country includes 57 loans and 4 grants worth $9.5 billion, according to the ADB.

A delegation of US trade representatives, led by Assistant US Trade Representative for South and Central Asia Brendan Lynch, will travel to Dhaka from May 5-7 to discuss ways to strengthen bilateral relations on trade and investment.

The United States looks forward to partnering on the implementation of the US-Bangladesh Agreement on Reciprocal Trade, which aims to enhance economic growth in both countries by improving market access, removing barriers to investment, and boosting commercial opportunities, according to a statement from the US embassy in Dhaka today.

The country’s remittance inflow has reached $315 million in the first three days of May, reflecting sustained strong inflows from expatriate Bangladeshis, according to data released by the Bangladesh Bank (BB) on Monday.
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During this period, remittance receipts reached $315 million, marking a 260.1 percent increase year-on-year compared to $88 million in the same period last year.

On a cumulative basis, expatriate Bangladeshis sent $29,648 million in remittances from July to May 3, of the current fiscal year, significantly higher than $24,625 million recorded in the corresponding period of the previous fiscal year.

The continued rise in remittance inflow is playing a vital role in supporting external sector stability, strengthening foreign exchange reserves, and contributing to overall macroeconomic resilience.

Farmer Suman Tarfadar cultivated boro paddy on nearly 10 acres of land this year in the haor region. Continuous rainfall submerged and destroyed paddy on around seven acres of his land.

Of the crop he managed to harvest, half could not be dried due to a lack of sunshine and has already started sprouting. Altogether, he now expects to boil and store paddy from only one to one-and-a-half acres.

The farmer from Kadirpur Haor in Khaliajuri Upazila told TBS that despite farming on his own land, he spent nearly Tk3 lakh this season. Most of the crop went under water, while much of the harvested grain has sprouted. "No one will buy this paddy. Only a small amount can be saved. I have never suffered such losses before," he said.

He added that no one wants to buy wet paddy. Some grain from the field was sold for Tk500-Tk600 per maund. Those who managed to harvest and dry before the rain were getting slightly better prices. In previous years, raw paddy from the field sold for Tk800-Tk900 per maund.

This is not just Suman Tarfadar's story, but the reality for farmers across the haor belt. Heavy rain that began in the last week of April submerged paddy on more than 47,000 hectares across seven haor districts — Sunamganj, Sylhet, Habiganj, Moulvibazar, Netrokona, Kishoreganj and Brahmanbaria.

In the four districts of Sylhet division alone, nearly 34,000 hectares have gone under water.

According to the Department of Agricultural Extension, around 25% of paddy still remains in the fields. Farmers and locals, however, say the actual losses are much higher.

Most of Bangladesh's rice is produced during the boro season, with around 10% coming from haor areas. Sources at the agricultural extension department said boro paddy was cultivated on 9,63,000 hectares in the seven haor districts this year. Of that, 4,55,000 hectares were in haor areas and 5,08,000 hectares in non-haor areas.

Farmer Babulal Das from Kalnigar said he cultivated boro on 10 bighas of land. Harvesting is nearly complete, but drying the grain is impossible. "The yard and roads are wet from rain, and the fields are under water. I have nowhere to dry the paddy. It is now sprouting and will be useless," he said.

Farmer Mahbub Alam from Naluar Haor said he harvested paddy standing in water during rainfall, but without sunshine it cannot be dried. "The paddy is rotting, the straw is being ruined. We are in great distress," he said.

Woman farmer Sabana Begum from Shanir Haor said boiled paddy from 36 decimals of land could not be dried because of nonstop rain. "The paddy is rotting and giving off a smell. I cry when I look at it," she said.

Sources at the Department of Agricultural Extension said 57% of boro harvesting has been completed in Sylhet division this season. This includes 75% in haor areas and 33% in non-haor areas.

Additional director of the department in Sylhet division, Dr Md Mosharraf Hossain, said the remaining 25% of submerged paddy in haor areas could be completely lost. More grain is also likely to be damaged because it cannot be dried.

"There is no artificial arrangement to dry so much paddy at once. We have to depend on nature," he said. He added that the government began rice and paddy procurement from Sunday, which could reduce farmers' losses somewhat. Losses could fall further if mill owners began buying paddy, but they have not yet started purchases.

Meanwhile, the Flood Forecasting and Warning Centre under the Bangladesh Water Development Board said water in several rivers of the north-eastern haor basin is already flowing above pre-monsoon danger levels.

These include points on the Naljur River, Baulai River, Bhugai-Kangsha River, Someshwari River, Mogra River, Kalni-Kushiyara River and Sutang River.

Over the past 24 hours, moderate to heavy rainfall occurred upstream and across haor areas, and rain may continue for the next three days. As a result, water levels in the Surma River and Kushiyara River may rise further, crossing danger levels at some points by the second day and creating flooding in low-lying areas of Sylhet and Sunamganj.

Water levels in the Bhugai-Kangsha River, Someshwari River and Dhanu-Baulai Basin may remain stable over the next three days, though flooding in adjacent lowlands may continue.

In Moulvibazar and Habiganj, water in the Manu River, Khowai River and Juri River may stay stable for two days before rising on the third day, with the Juri River nearing warning level.

Overall, the agency said continuous rainfall is likely to prolong ongoing flooding in low-lying haor areas of the north-east, while creating fresh flood risks in some locations.

The price of a 12kg cylinder of liquefied petroleum gas (LPG) remains unchanged at Tk 1,940 for May.Business Policy Updates
FE

The Bangladesh Energy Regulatory Commission (BERC) announced the decision on Sunday, which would take effect from 6 pm. Bangladeshmarket report

The LPG prices were adjusted twice last month.

On April 2, the price of the 12kg cylinder was raised by Tk 387 to Tk 1,728. Later, on April 19, BERC hiked the price by Tk 212, setting it at Tk 1,940.

The private sector can sell LPG in various cylinder sizes-5.5kg, 12.5kg, 15kg, 16kg, 18kg, 20kg, 22kg, 25kg, 30kg, 35kg and 45kg-to consumers at proportional price in May.

The price of LPG supplied through a reticulated system or centralised storage system also remains unchanged at Tk 351 per cubic metre for May.

Meanwhile, the consumer-level price of autogas has been slightly increased by 2 paisa for May, setting the new price at Tk 89.52 per liter, including value added tax (VAT).

Autogas prices were also adjusted twice last month.

On April 2, the price was raised by Tk 17.94 to Tk 79.77 per liter. On April 19, BERC increased the price by Tk 9.73, fixing it at Tk 89.50 per liter.

Bashundhara Paper Mills, a concern of Bashundhara Group, has incurred a loss of Tk422 crore in the first nine months of the current fiscal year, mainly due to a shortage of raw materials and a rise in utility costs.

During the July-March period of FY26, the company's loss widened significantly from Tk184 crore in the same period a year earlier, according to its financial statement ended in March.

Its year-on-year revenue also plunged by 56% to Tk223.22 crore, down from Tk507.67 crore in the corresponding period of the previous fiscal year.

Despite the sharp decline in revenue, the cost of sales stood at Tk420.59 crore at the end of March 2026, compared to Tk482.11 crore in the same period a year ago.

The company reported an operating loss of Tk523.43 crore, up from Tk230 crore in the July-March period of the previous fiscal year.

Explaining the losses, company officials said operating profitability declined due to the unavailability of raw materials, increased utility costs, a sharp rise in input prices, and higher borrowing costs following interest rate hikes.

As a result, the company's earnings per share (EPS) deteriorated significantly, with per-share loss rising to Tk24.27 from Tk10.60 in the previous period.

However, net operating cash flow per share rose slightly to Tk8.95 during the July-March period of FY26, compared to Tk8.75 in the same period a year earlier. The net asset value per share declined to Tk33.60 as of 31 March.

The company said the improvement in cash flow was mainly due to reduced payments to suppliers and other operating creditors, which strengthened its overall operating cash position.

In FY25, Bashundhara Paper Mills incurred a loss of Tk329.91 crore, with a per-share loss of Tk18.98. Due to continued losses, the company did not declare any dividend for its shareholders for FY24.

The company's shares closed on Sunday at Tk26.30 on the Dhaka Stock Exchange, down 1.87% from the previous trading session.

The Cabinet has approved a set of tax measures for the import of completely new electric vehicles, including buses and trucks.

The decision was taken at a Cabinet meeting - chaired by Prime Minister Tarique Rahman - held in the Cabinet Room of the National Parliament at 6:45pm on Sunday (3 May), according to a statement from the Cabinet Division.

Under the decision, a notification will be issued to maintain the Value Added Tax (VAT) at 15% for electric buses with a minimum of 17 seats, for use in sectors other than student transportation.

At the same time, these imports will be exempted from customs duty (CD), regulatory duty (RD), supplementary duty (SD), advance tax (AT) and advance income tax (AIT), subject to certain conditions.

According to Cabinet Division sources, the National Board of Revenue will soon issue a notification in this regard. The facility will remain in effect till 30 June 2026 - i.e. the end of the current fiscal year of 2025-26.

It follows an earlier decision to allow the duty-free import of electric buses for educational institutions to promote safe and environmentally friendly transportation for students.

A similar notification will also be issued for the import of trucks with a capacity of five tonnes or more, the statement added.

The initiative was proposed by the Internal Resources Division, the statement said.

The United Arab Emirates has left the Organization of Arab Petroleum Exporting Countries (OAPEC), an alliance that does not set production policies for its members, a statement from the intergovernmental organisation showed on Sunday.

The statement follows UAE's surprise announcement on 28 April of its departure from the OPEC and OPEC+ producer groups, to prioritise boosting its own output.

OAPEC was formed in 1968 with the aim of boosting cooperation among Arab oil exporters.

The Asian Development Bank (ADB) will back $70 billion in new energy and digital infrastructure initiatives by 2035, aiming to connect power grids, expand cross-border electricity trade, and improve broadband access across Asia and the Pacific.

The Pan-Asia Power Grid Initiative will connect national and subregional power systems so renewable energy can flow across borders, while the Asia-Pacific Digital Highway will help close the digital infrastructure gap and enable the region to benefit from AI-driven growth, reads a press release.

Under the Pan-Asia Power Grid Initiative, ADB will work with governments, utilities, the private sector, and development partners to mobilise $50 billion by 2035 for cross-border power infrastructure that can unlock renewable energy at scale.

The initiative will focus on transmission and grid integration, including cross-border lines, substations, storage, and grid digitalisation.

It will also support power generation linked to electricity trade, including renewable energy export projects, regional renewable hubs, and hybrid generation-storage facilities.

By 2035, ADB aims to integrate about 20 gigawatts of renewable energy across borders, connect 22,000 circuit-kilometers of transmission lines, improve energy access for 200 million people, create 840,000 jobs, and cut regional power sector emissions by 15%.

ADB expects to finance about half of the $50 billion initiative from its own resources and raise the rest through cofinancing, including from the private sector.

Up to $10 million in technical assistance will support efforts to align regulations, adopt common technical standards, prepare feasibility studies and advance other work needed for major projects.

The Pan-Asia Power Grid Initiative marks a shift from country-to-country energy links to a regional approach to power trade.

It builds on existing subregional cooperation initiatives, including the South Asia Subregional Economic Cooperation program, the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation grid interconnection planning, the ASEAN Power Grid, and the Central Asia Regional Economic Cooperation Energy Strategy 2030.

The Asia-Pacific Digital Highway will mobilise $20 billion by 2035 to finance digital corridors, data infrastructure, and AI-ready economies.

Investments will focus on connected infrastructure, including terrestrial and subsea fiber networks, satellite links and regional data centres.

ADB will also provide policy and regulatory support, including on cybersecurity risk management, and invest in skills programs to strengthen digital and AI readiness.

By 2035, the initiative aims to provide first-time broadband access to 200 million people and faster, more reliable digital connectivity for another 450 million people across the region.

It is expected to cut connectivity costs in remote and landlocked areas by about 40% and help create 4 million jobs.

ADB expects to finance $15 billion of the $20 billion initiative from its own resources and raise $5 billion through cofinancing, including from the private sector.

The Centre for AI Innovation and Development will be established in Seoul to support the initiative. Backed by a $20 million contribution from the Government of the Republic of Korea, the centre will promote responsible and inclusive AI adoption and help train about 3 million people in digital and AI-related skills by 2035.

ADB President Masato Kanda said that Energy and digital access will define the region's future.

"These two initiatives build the systems Asia and the Pacific need to grow, compete, and connect. By linking power grids and digital networks across borders, we can lower costs, expand opportunity, and bring reliable power and digital access to hundreds of millions of people."

The telecom regulator has decided to allocate 10 MHz from the highly valuable 700 MHz band to state-owned Teletalk, despite the operator owing around Tk 5,500 crore in spectrum fees and already holding significant unused or underused spectrum.

The decision was taken at a recent Bangladesh Telecommunication Regulatory Commission (BTRC) meeting, according to documents.

The 700 MHz band is considered globally valuable for wide coverage, strong indoor signal, low rollout cost, and suitability for rural-urban networks, including 5G. In Bangladesh, 45 MHz of the band is allocated for mobile use, while 20 MHz remains unused due to a legal dispute.

TIMELINE OF GOVT, REGULATORY ACTIONS

On February 8, just before the national election, the interim government, through the telecom ministry, sent a letter to BTRC instructing it to allocate 10 MHz of spectrum to Teletalk.

A day later, Teletalk applied for the spectrum.

On February 16, the ministry informed the regulator that Teletalk had proposed converting its unpaid dues -- including licence and spectrum fees -- into government equity, now under finance division review.

On April 9, BTRC sought guidance from the ministry on how Teletalk would pay for the allocation. On April 24, the ministry directed the regulator to proceed with the allocation, citing the need to reduce customer inconvenience in line with the government’s election manifesto.

The price was set at Tk 237 crore per MHz, matching the rate paid by Grameenphone for 10 MHz in January as the sole bidder in the auction.

The move means the government may forgo at least Tk 2,000 crore in revenue in the near term.

Only 5 MHz of available spectrum in this band will remain for Banglalink and Robi, both of which have large customer bases. The two operators did not join the latest auction, saying prices were too high.

Spectrum is a limited and valuable resource that countries manage carefully, as it is important for improving telecom services and generating government revenue. In Bangladesh, there have been concerns about spectrum management, particularly regarding Teletalk.

LARGE DUES AND UNUTILISED SPECTRUM

Teletalk holds 55.2 MHz across the 900, 1800, 2100, and 2300 MHz bands and serves around 68 lakh subscribers, giving it about 0.81 MHz per lakh users.

By comparison, Grameenphone has 137.4 MHz for 8.44 crore subscribers (0.16 MHz per lakh), Robi has 124 MHz for 5.74 crore users (0.22 MHz per lakh), and Banglalink has 80 MHz for 3.74 crore users (0.21 MHz per lakh).

Despite higher spectrum per subscriber, Teletalk’s voice and data service quality has been weaker than peers in BTRC quality tests over the years, and it has added only about 1 lakh subscribers in five years.

The operator has also not used 30 MHz in the 2300 MHz band acquired in the 2022 auction, despite rollout obligations, which is considered a breach of spectrum utilisation rules.

Teletalk’s total liabilities include Tk 120 crore in licence fees, Tk 102 crore in revenue sharing, Tk 5,506 crore in spectrum fees, and around Tk 62 crore in other charges.

EXPERT CRITICISM

“Private operators are required to follow strict rules, but public companies often do not face the same obligations, which creates a market imbalance,” said Khondaker Golam Moazzem, research director at the Centre for Policy Dialogue.

He added that large unpaid dues raise doubts about such firms’ ability to survive in a competitive market, noting they often rely on government support rather than efficiency.

TIM Nurul Kabir, a telecom expert, said, “Spectrum is a valuable resource and allocating it to an operator that cannot ensure good service or generate revenue is a poor regulatory decision.”

“The government needs a different approach to revive Teletalk rather than using up valuable resources. Such decisions are also anti-competitive,” he added.

Md Emdad ul Bari, chairman of BTRC, said the allocation was approved on the condition that spectrum charges would be converted into government equity.

He said this would not cause revenue loss, as funds would shift between state entities as equity investments.

Top 11 banks held Tk 52,034 crore of non-performing loans (NPLs), accounting for about 71.67 per cent of total default loans in the CMSME sector, highlighting a high concentration of credit risk in a handful of lenders.

According to Bangladesh Bank data as of December 31, 2025, total loan disbursement by 60 scheduled banks in the cottage, micro, small and medium enterprise (CMSME) sector stood at Tk 3,01,397 crore, representing 16.58 per cent of overall outstanding loans of Tk 18,17,736 crore. Countryspecific content

However, recovery from the sector is better compared with the other industries. Banks’ total NPL ratio stood at 30 per cent in December, 2025.

Default loans in the segment were Tk 72,600 crore, or 24 per cent of total CMSME lending.

CMSME refers to small-scale business activities ranging from cottage industries and micro enterprises to small and medium-sized firms.

The CMSME sector is widely regarded as the backbone of Bangladesh’s economy, contributing around 25 per cent to GDP and supporting millions of entrepreneurs, traders and small manufacturers.

These businesses typically operate with limited capital but play a central role in job creation, rural industrialisation and income distribution.

Despite its importance, the sector remains vulnerable due to limited access to finance, weak financial literacy and dependence on informal networks.

Banks are expected to fill this gap.

Due to poor lending by several state-run banks and weak shariah-based banks, NPL in the sector surged.

Among the major defaulters, Islami Bank Bangladesh PLC alone had Tk 9,761 crore in bad loans against Tk 29,759 crore disbursed, with an NPL ratio of 33 per cent in the CMSME sector.

BASIC Bank showed one of the worst asset qualities, with Tk 6,168 crore in defaults out of Tk 8,839 crore disbursements, translating into a 70 per cent NPL ratio.

State-owned Janata Bank and Sonali Bank reported Tk 5,947 crore and Tk 4,948 crore in default loans respectively, while Agrani Bank had Tk 4,474 crore in NPLs.

Among private banks, First Security Islami Bank recorded an alarming 96 per cent NPL ratio with Tk 4,884 crore in defaults against Tk 5,107 crore in loans in CMSME, while Padma Bank showed a similar trend with a 95 per cent NPL ratio in the CMSME sector.

Other banks with significant exposure include Al-Arafah Islami Bank (Tk 3,891 crore NPL), Social Islami Bank (Tk 3,241 crore), EXIM Bank (Tk 3,058 crore) and United Commercial Bank with Tk 2,449 crore.

In contrast, several banks maintained relatively strong asset quality.

BRAC Bank, the largest CMSME lender with Tk 30,570 crore in disbursement, reported only Tk 670 crore in defaults.

Pubali Bank and City Bank also kept NPLs low at Tk 484 crore and Tk 322 crore respectively.

As a result high NPL, credit flow to small businesses slows down, affecting expansion, employment and production.

Persistent defaults also raise borrowing costs. Banks tend to charge higher interest rates to offset risks, making financing less affordable for genuine entrepreneurs.

In a sector already constrained by limited resources, this can discourage new investments and weaken overall economic momentum.

At Tejturi Bazar in the capital’s Tejgaon area, ridge gourd was selling at Tk 70–80 per kg and tomatoes at Tk 50–60 per kg yesterday, Thursday. Just a week earlier, both vegetables were Tk 10–15 cheaper per kg. The rise in prices has been driven by rainfall and higher transport costs.

Over the past week, prices have also increased for onions, cucumbers, aubergines, chillies and green papaya. Broiler chicken and eggs have also become more expensive. Among grocery items, the prices of sugar, coarse lentils and polao rice have gone up. Although the price of bottled soybean oil has been raised, supply in the market has yet to return to normal.

Traders said rainfall over the past few days has disrupted the regular supply of vegetables. Higher fuel prices have also pushed up transport costs. Together, these factors have driven up vegetable prices. These details emerged from visits yesterday to Mohammadpur Krishi Market, Town Hall Market and Tejturi Bazar, as well as conversations with buyers and sellers.

A market survey found that the prices of at least nine vegetables have increased over the past week. Cucumber recorded the sharpest rise. Hybrid cucumber prices jumped by Tk 30 per kg and were selling yesterday at Tk 80–100 per kg. Locally grown cucumber was priced slightly higher. Prices of aubergine, sponge gourd, snake gourd, ridge gourd and tomatoes also rose by Tk 10–15 per kg. Green papaya and chillies increased by Tk 20, reaching Tk 80–100 per kg.

According to the Department of Agricultural Marketing, compared with last month, cucumber prices have risen by 111 per cent, green papaya by 87 per cent, local tomatoes by 25 per cent and aubergines by 7 per cent.

Onion prices have also gone up by Tk 5 per kg over the past week, with local onions now selling at Tk 40–45 per kg. However, onions had remained unusually cheap for a long period this year, limiting farmers’ profits. The recent price rise may improve their returns.
Also Read

What is driving the price hike

Heavy rainfall hit the country last Sunday. After a two-day pause rain resumed on Tuesday night. Although the capital remained dry throughout yesterday, the meteorological office has forecast intermittent rainfall across the country for the next three days.

Aminul Haque, a vegetable trader at Karwan Bazar, told Prothom Alo that fewer vegetable trucks had arrived at the market over the past two days. In many areas, heavy rain has caused waterlogging in vegetable fields, preventing farmers from harvesting produce. This has pushed up prices for some vegetables. He added that buyer numbers were also lower as it was the month-end.

Meanwhile, the government has increased retail prices of all types of fuel in response to rising global oil prices. Diesel prices have risen by Tk 15 per litre, kerosene by Tk 18, octane by Tk 20 and petrol by Tk 19. This has also affected commodity prices.

Imran Master, president of the Bangladesh Kachamal Arot Malik Samity, told Prothom Alo that truck fares for transporting vegetables from Dhaka, Chattogram and Sylhet have risen by Tk 5,000–7,000 since fuel prices increased. Combined with lower supply caused by rain over the past three days, this has pushed vegetable prices higher.

Traders said rainfall over the past few days has disrupted the regular supply of vegetables. Higher fuel prices have also pushed up transport costs. Together, these factors have driven up vegetable prices.

Broiler chicken and eggs remain expensive

Farm eggs were selling yesterday at Tk 120–130 per dozen. Prices have remained at this level for more than two weeks. Earlier, eggs sold for Tk 100–110 per dozen. Higher transport costs have also contributed to the rise in egg prices. There is also some supply shortage, according to Mohammad Amanat Ullah, former president of the Tejgaon Egg Traders’ Association.

Broiler chicken prices also remain elevated. Broiler chicken is selling at Tk 190–200 per kg, compared with Tk 150–160 around six weeks ago.

Sonali chicken prices, however, have eased slightly. Yesterday, Sonali chicken was sold at Tk 350–360 per kg in three markets of the capital. Colourbird, or hybrid Sonali chicken, sold at Tk 320–330 per kg. Two weeks ago, Sonali chicken was Tk 30 higher per kg, while prices exceeded Tk 400 after Eid-ul-Fitr.

The price of packaged polao rice has increased by another Tk 15 per kg, taking the new retail price to Tk 190 per kg. Traders, however, are selling it at Tk 180–185, while older stock remains available at Tk 165–170. Loose polao rice is priced at Tk 150–160 per kg.

Two weeks ago, loose sugar prices rose by Tk 5 per kg to Tk 105–110, which remained stable there yesterday. Coarse lentils have also increased by Tk 5, now selling at Tk 90–95 per kg.

Soybean oil supply still disrupted

On Wednesday, the government increased prices of bottled and loose soybean oil by Tk 4 per litre. The price of one litre of bottled soybean oil was raised from Tk 195 to Tk 199, while loose soybean oil rose from Tk 176 to Tk 180. As a result, the maximum retail price of a five-litre bottle now stands at Tk 975.

The market has been facing a shortage of bottled soybean oil for nearly three months. During this period, companies had been demanding a price increase, citing rising global edible oil prices, while supply of bottled soybean oil remained low. Although the government had resisted the move for some time, the Ministry of Commerce approved the price hike on Wednesday.

However, a market visit one day after the increase showed that the supply shortage remains unchanged. Humayun Kabir, a grocer at Mohammadpur Krishi Market, said the supply of bottled soybean oil could improve within the next two to three days following the price increase. Dealers of three edible oil companies had informed them of this, he added.

Bangladesh received $3.12 billion in remittances in April, a 13.5% increase from the same month a year earlier, according to data released by Bangladesh Bank today (3 May).

In April last year, expatriates sent $2.75 billion in remittances.

However, inflows retreated from March's record high of $3.75 billion, with bankers attributing the surge largely to a seasonal spike in transfers ahead of Ramadan and Eid-ul-Fitr.

Despite the monthly decline, remittances have remained above the $3 billion mark for five consecutive months. Bankers see this as a positive sign for the economy, pointing to greater use of formal channels and stronger earnings by migrant workers.

In the current fiscal year 2025-26, remittances have maintained robust growth, helping to bolster foreign exchange reserves. Between July and April, total inflows reached $29.33 billion, up 19.5% from $24.54 billion in the same period a year earlier.

Economists say the rising inflows could help ease pressure on the external sector, support exchange rate stability and strengthen overall macroeconomic conditions if the trend holds in the coming months.

They expect remittances to increase further in May, driven by the upcoming Eid-ul-Adha at the end of the month.

Bankers noted that a narrowing gap between exchange rates in the informal market and official banking channels has encouraged expatriates to send money through formal means.

Bangladesh Bank has been purchasing US dollars from commercial banks through auctions, buying more than $4 billion so far in the 2025-26 fiscal year as of early February, in a bid to stabilise the foreign exchange market and build reserves.

The exchange rate has recently hovered between Tk122.75 and Tk122.90, as authorities seek to prevent excessive appreciation of the taka while supporting remittances and export earnings.

Earlier, despite a decline in exports, rising imports and the onset of war, the exchange rate remained stable at Tk122.75 per US dollar.

Foreign exchange reserves currently stand at $35.10 billion, or $30.47 billion under the IMF's BPM6 method.

Following a payment of $1.37 billion to the Asian Clearing Union (ACU) on 9 March, reserves had fallen to $34.10 billion, with the BPM6 measure at $29.38 billion.

Bangladesh's reserves had reached a historic high of more than $48 billion in August 2021.

They later dropped to $20.48 billion under the BPM6 method and $25.92 billion in gross terms by the time of the fall of the Awami League government. During the 18-month tenure of the interim government, reserves have increased by $10 billion.

OPEC+ agreed on ‌Sunday a modest oil output hike for June, an increase that will remain largely on paper as long as the Iran war continues to disrupt Gulf oil supplies through the Strait of Hormuz.

Seven OPEC+ countries will raise oil output targets by 188,000 barrels per day in June, the third consecutive ​monthly increase, OPEC+ said in a statement after an online meeting. The increase is the same as that agreed ​for May minus the share of the United Arab Emirates, which on May 1.

The ⁠move is designed to show the group is ready to raise supplies once the war stops and signals that OPEC+ is ​pressing on with a business-as-usual approach despite the departure of the UAE from OPEC+, OPEC+ sources and analysts said.

"OPEC+ is sending a ​two-layer message to the market: continuity despite the UAE's exit, and control despite limited physical impact," said Jorge Leon, an analyst at Rystad and former OPEC official.

"While output is increasing on paper, the real impact on physical supply remains very limited given the Strait of Hormuz constraints. This is ​less about adding barrels and more about signaling that OPEC+ still calls the shots."

Top OPEC+ producer Saudi Arabia's quota will rise ​to 10.291 million bpd in June under the agreement, far above actual production. The kingdom reported actual production of 7.76 million bpd to ‌OPEC in ⁠March.

The seven members who met on Sunday were Saudi Arabia, Iraq, Kuwait, Algeria, Kazakhstan, Russia, and Oman. With the UAE leaving, OPEC+ includes 21 members including Iran. But in recent years only the seven nations plus the UAE have been involved in monthly production decisions.

HIKE REMAINS LARGELY SYMBOLIC UNTIL HORMUZ RE-OPENS

The Iran war, which began on February 28, and the resulting closure of the ​Hormuz strait have throttled exports from ​OPEC+ members Saudi Arabia, ⁠Iraq and Kuwait, as well as from the UAE. Before the conflict, these producers were the only countries in the group able to raise production.

Even when shipping through the Strait of Hormuz ​reopens, it will take several weeks if not months for flows to normalise, oil executives from ​the Gulf and ⁠global oil traders have said.

The supply disruption has propelled oil prices to a four-year high above $125 per barrel as analysts begin to predict widespread jet fuel shortages in one to two months and a spike in global inflation.

Crude oil output from all OPEC+ members ⁠averaged 35.06 ​million bpd in March, down 7.70 million bpd from February, OPEC said in ​a report last month, with Iraq and Saudi Arabia making the biggest cuts due to constrained exports.

The seven OPEC+ members will meet again on June 7, ​the statement said.