Summit Alliance Port Limited, one of the country's leading inland container terminals and logistics operators, reported a 26% decline in export freight earnings in the July-March period of FY26, weighed down by weaker export container handling and a challenging global trade environment.

In its unaudited financial statement for the first nine months of the fiscal year, the company said export freight income fell to Tk310.64 crore. The downturn in exports dragged overall performance, with consolidated revenue – covering both export and import container freight and handling – falling 18% to Tk499.88 crore.

Net profit declined sharply by 31% to Tk38.27 crore, while consolidated earnings per share dropped to Tk1.62 at the end of March 2026, compared to Tk2.34 in the same period of the previous fiscal year.

The company attributed the weaker performance largely to its subsidiary Container Transportation Services Limited (CTSL), which faced lower cargo volumes, higher operating costs, and pressure from geopolitical tensions in the Middle East.

It also cited subdued export activity and heightened competition in the freight forwarding segment, which compressed margins despite efforts to expand services.

The trend aligns with broader export weakness, as Export Promotion Bureau data showed national export earnings fell nearly 5% to $35.39 billion in the same period.

CTSL remains the group's main revenue driver, leaving overall performance highly sensitive to export volumes and global trade conditions.

In January 2025, the company entered a strategic partnership with Germany's Hellmann Worldwide, which subscribed to 3.33 lakh CTSL shares at Tk66.50 each to strengthen regional logistics capacity. However, the benefits have yet to offset weaker demand and lower freight rates.

Yesterday, Summit Alliance Port shares fell 1.75% to Tk50.40 on the Dhaka Stock Exchange.

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.

The Bangladesh Bank (BB) has revised its prudential regulations on consumer financing, raising the ceiling for auto and personal loans and introducing incentives to promote electric and hybrid vehicles.

The central bank issued a circular in this regard yesterday, stating that banks will now be allowed to provide auto loans of up to Tk 80 lakh per individual, including insurance coverage, for purchasing electric and hybrid vehicles.

Previously, banks could provide auto loans of up to Tk60 lakh per individual for conventional vehicles, with no separate ceiling for electric and hybrid vehicles.

The BB said it set the new limit for purchasing electric and hybrid vehicles to encourage environmentally friendly transport.

The regulator also eased equity requirements for such vehicles. While conventional auto loans must maintain a maximum debt-equity ratio of 60:40, loans for electric and hybrid cars can now be extended at a more relaxed ratio of 80:20.

The BB said the changes were made in consideration of rising automobile prices and the growing demand for cleaner and more energy-efficient vehicles in the country.

The regulator also revised limits on personal loans, including those for consumer durables. Under the new rules, individuals can take out unsecured personal loans of up to Tk 10 lakh, up from the previous limit of Tk 5 lakh.

Banks may lend higher amounts if backed by proper securities, but the total loan in such cases cannot exceed Tk 40 lakh. Earlier, this limit was Tk 20 lakh.

Loans secured against liquid assets will remain outside this cap, as per the circular.

The regulator noted that Bangladesh’s consumer market has expanded significantly in recent years, driven by rising per capita income and steady economic growth.

As per the circular, the BB imposed a prudential safeguard, directing banks to ensure that growth in consumer loans does not exceed the overall loan growth of the respective bank.

The latest instructions supersede previous circulars issued in 2004, 2017, and 2024 on consumer financing. The directive, issued under the Bank Companies Act, 1991, took effect immediately.

The Asian Development Bank (ADB) has agreed to provide $1 billion in budget support to Bangladesh by June to tackle economic challenges stemming from soaring energy prices triggered by the Middle East war situation.

Finance Minister Amir Khosru Mahmud Chowdhury shared the development following a meeting with ADB President Masato Kanda at the 59th Annual Meeting of the ADB currently being held in Samarkand, Uzbekistan.

Khosru, Economic Relations Division Secretary Md Shahriar Kader Siddiky, and several senior officials are attending the four-day event that began on May 3.

“They have agreed to provide $1 billion by June this year. This could potentially increase if needed in the coming days,” he told The Daily Star in an interview after the meeting.

Bangladesh earlier sought $1 billion from the Manila-based lender to shield its economy from global shocks triggered by the US-Israel war on Iran, which led to a spiral in oil prices.

The South Asian country meets 95 percent of its fuel needs through imports, primarily from Gulf countries including Saudi Arabia, the United Arab Emirates, and Qatar.

The war affected supplies as Iran blocked the Strait of Hormuz, through which one-fifth of global oil and a good portion of gas passes.

On Monday, during a session of the Board of Governors at the ADB’s annual meeting, Khosru sought expanded support for Bangladesh from the ADB, as geopolitical tensions, inflation, and supply chain disruptions have increased the country’s energy-related expenditures by an estimated $3 billion.

Following his meeting with President Kanda, the finance minister said Bangladesh had asked for counter-cyclical support if the war continues. While the issue did not come up in yesterday’s discussion, he noted, “It is in our proposal.”

Apart from budget support, both sides discussed issues ranging from the BNP-led government’s election manifesto and digital transformation to the ADB’s support for achieving the target of 10,000 megawatts of clean energy by the 2030s.

They also discussed the North-West Dhaka South-East Economic Corridor, involving about $79 billion proposed by the ADB to Bangladesh under a 20-year development plan, as well as a visit by the ADB president to Dhaka and technical assistance for the development of the capital market.

The finance minister said the ADB has a commitment to provide $1.4 billion for the fiscal year 2025-26.

“And the necessity of the fund can be discussed in the coming days and increased if needed,” he said.

Khosru stated that the ADB is “fully aligned” with the current government’s election manifesto, ensuring that all future programmes and projects will be consistent with national priorities.

“This is the biggest thing. I mean, when working with any multilateral body, this issue often arises where they want one thing, and the government wants another. This will not happen in this case,” he said. “Therefore, all programmes, support, and projects will be in accordance with our manifesto in Bangladesh. This is a very important thing.”

Khosru noted that discussions took place regarding Bangladesh’s renewable energy target, stating that the ADB’s interest in this area is very high.

“They will assist, and some countries, like Germany, have also shown interest, and there is a possibility of them joining this project too. Therefore, we are hoping for a large portfolio here in the coming days.”

“Germany is very interested in renewables because of current climate issues. They have many climate-friendly projects in their own country in various ways, among which renewable energy -- the issue of electricity -- is of great interest to them, and we might get major cooperation in this area,” he added.

On the capital market, the finance minister said ADB’s technical support is needed to improve Bangladesh’s market, provide protection to investors, and support listed companies.

“And the deregulation we have been talking about for so long-- serious deregulation is needed. When we talk about taking it from a frontier market to an emerging market, their support will mainly come in this area.”

“The rest of the work has to be done by our government. So, we will move forward in this matter. And digitalisation is a big issue here; we will work with them on that too,” the minister added.

Khosru mentioned the North-West Dhaka South-East Economic Corridor, describing it as a project running from the northern region to Chattogram, integrating growth centres -- such as the potential for light engineering in Bogura or agricultural processing opportunities in other regions -- that are in our minds and also in theirs.

“So, keeping in mind the facilities of each region, we, along with the ADB, have sat together and brought this whole project to a certain point. I hope this will be finalised once we return to Dhaka and the ADB president visits,” he said, expecting the visit by the end of this month.

Responding to a question on the progress of discussions regarding the release of two instalments of the $5.5 billion loan from the International Monetary Fund (IMF), Khosru said discussions have been ongoing with the Washington-based lender.

“We are an elected government, and we must take decisions very thoughtfully,” he said. “Ending a discussion is very easy, but I cannot take any decision outside of my country’s interest or the interest of our people.”

Governments in Asia, the top oil importing region, are scrambling to find alternatives and insulate their economies from the worst of the energy crisis triggered by the Iran war, but the pain is getting increasingly costly.

The disruption spurred the Asian Development Bank to cut its growth forecast for developing Asia and the Pacific to 4.7% this year and 4.8% in 2027, down from 5.1% for both years previously, and lifted its inflation outlook to 5.2% for this year.

Overall oil imports to Asia, which takes 85% of Gulf crude shipments, plunged 30% in April on the year, to their lowest since October 2015, Kpler data shows, after two months of the near-closure of the Strait of Hormuz, a key chokepoint for a fifth of global oil and gas supplies.

Fiscal strains are mounting across the region, particularly South Asia, as governments spend billions of dollars on subsidies and import duty waivers to compensate.

"The first line of defence ... is that the governments decided to absorb the initial shock by either providing subsidies or cutting excise duties on fuel products," said Hanna Luchnikava-Schorsch of S&P Global Market Intelligence.

India's state-dominated refining sector has kept fuel prices steady despite surging crude costs, losing about 100 rupees ($1.06) a litre on diesel and 20 rupees on petrol, but some analysts forecast price hikes after state polls ended in April.

Many regional governments have moved to limit fuel use or clamp down on hoarding, while several have curbed exports and many, including Australia, have espoused diplomatic efforts to ensure access.

China, the world's biggest oil importer, has shielded itself with sizeable reserves, a diverse energy supply chain and export curbs on fuel and fertiliser, although Beijing is making exceptions for some regional buyers, from Australia to Myanmar.

Even as governments tap fiscal resources, forex reserves and oil inventories, the war's economic impact on Asia has not been as bad as feared, Goldman Sachs said.

Nevertheless, it trimmed 2026 growth forecasts for Japan and some Southeast Asian countries and slightly lifted inflation expectations, while warning of a key unresolved question.

"How much of the resilience thus far reflects structural factors versus unsustainable declines in buffer stocks?" its analysts said in a note.

First lines of defence

Asia's emerging market currencies have fallen furthest and to lower lows against the dollar, compared with global peers and the region's bigger currencies, with the peso, rupee and rupiah all making record lows.

Since the war started at the end of February, the Philippine peso has dropped more than 5%, the Thai baht and rupee more than 3% each and the rupiah more than 2.5%.

By contrast China's yuan is the region's top performer, up 0.8% against the dollar, while Japan has intervened to push up the yen, to stand 0.4% higher than pre-war levels. South Korea's won is down about 1.1%.

The South Asian economies of Pakistan, Bangladesh and Sri Lanka are the most vulnerable to the burdens triggered by the crunch, S&P Global Market Intelligence said.

Pakistan, for example, recently issued its first tenders since 2023 to buy liquefied natural gas.

It is looking to replace supply it is unable to source from Qatar, paying $18.88 per million British thermal unit for one cargo, or roughly $30 million more than market prices before the war, according to Reuters calculations.

"These countries use more of their resources on subsidising domestic public energy enterprises and basically shielding the final consumers from the energy price shock," added Luchnikava-Schorsch, the S&P unit's head of Asia-Pacific Economics.

"These are also the countries which have the slimmest fiscal buffers."

Still, regional economies are better positioned than when the start of the Ukraine war in 2022 triggered the last energy shock, she said.

Coping mechanisms

Responses across Asia are shaped by the circumstances of individual nations.

For example, energy producer Indonesia has told operators to prioritise the domestic market over exports and is halting LNG shipments that were not under contract.

Southeast Asia's biggest economy is also looking to Africa and Latin America to replace Middle Eastern oil, and plans to buy 150 million barrels from Russia by year-end.

In Thailand, a source at a state-owned refiner said the firm had paused crude purchases as national stocks of refined products rose after refineries stepped up output and a government ban closed off exports.

At the same time, curbs on energy use and high prices have led to falling demand, he added.

Japan, which buys 95% of its oil from the Middle East, has stepped up purchases of US oil, paying spot market prices that soared after the start of the war, plus the cost of shipping from the US, which takes twice as long as from the Gulf.

On Friday, Japan began releasing 36 million barrels of crude from stockpiles, its second release since the start of the war.

Oil prices fell for a second day on Wednesday on expectations bottled up supply from the key Middle East producing region could resume flowing after US President Donald Trump indicated a possible peace deal may be reached to end the war with Iran.

Brent crude futures for July fell $1.52, or 1.38%, to $108.35 per barrel as of 0103 GMT, after dropping 4% in the previous session. US benchmark West Texas Intermediate futures for June declined $1.50, or 1.47%, to $100.77, after closing down 3.9% the day before.

On Tuesday, Trump unexpectedly said he would briefly pause an operation to help escort ships through the Strait of Hormuz, citing progress towards a comprehensive agreement with Iran, without giving details on the agreement.

There was no immediate reaction from Tehran, where it was very early on Wednesday morning.

Still, Trump said the US Navy would continue its blockade of Iranian ports. The Strait of Hormuz, which typically carries cargoes equal to about one-fifth of the world's oil and natural gas supply, has been most cut off since the US-Israeli war against Iran began on 28 February.

The supply loss to the global market has pushed prices higher with Brent trading last week at its highest since March 2022.

"We have mutually agreed that, while the Blockade will remain in full force and effect, Project Freedom ... will be paused for a short period of time to see whether or not the Agreement can be finalised and signed," Trump wrote on social media.

Trump's announcement came only hours after US Secretary of State Marco Rubio briefed reporters on the effort, announced on Sunday, to escort stranded tankers through the strait. On Monday, the US military said it had destroyed several Iranian small boats, as well as cruise missiles and drones, while guiding two vessels out of the Gulf through the strait.

The Strait of Hormuz closure has drawn down global inventories as refineries try to make up the shortfall.

US crude oil inventories fell for a third week, while petrol and distillate stocks also declined, market sources said on Tuesday, citing American Petroleum Institute figures.

Crude stocks fell by 8.1 million barrels in the week ended 1 May, the sources said. Petrol inventories fell by 6.1 million barrels, while distillate inventories fell by 4.6 million barrels compared to a week earlier, the sources said.

Bangladesh Bank (BB) has instructed all scheduled banks to set and disburse specific credit targets for raw hide traders to ensure smooth collection, preservation, and marketing of hides during the upcoming Eid-ul-Azha.

The directive was issued today through BRPD Circular, highlighting the leather sector as a vital labour-intensive and export-oriented industry, reports BSS.

The central bank noted that the sector plays a significant role in generating national income and foreign exchange, largely depending on domestically sourced raw materials.

According to the circular, nearly 50 percent of the industry’s annual raw material supply comes from animals sacrificed during Eid-ul-Azha, making timely and adequate financing crucial for maintaining economic stability in the sector.

To ensure sufficient liquidity, the central bank directed that the credit target for raw hide purchases in 2026 must not be lower than the target set for 2025.

It also stressed that financing facilities must reach the grassroots level, enabling seasonal traders and small-scale merchants to actively participate in the procurement process. Loans are to be disbursed based on established bank-client relationships.

In a move to facilitate fresh financing, the central bank has allowed the rescheduling and relaxation of existing loans, including those of defaulted borrowers in the leather sector. Globaltrade insights

Banks have been instructed to complete the rescheduling process—along with compromised amount arrangements—by June 30, 2026. This measure is intended to help borrowers clear outstanding obligations and access new funds for the current season.

For monitoring and compliance, all scheduled banks are required to submit detailed reports on their credit targets and actual disbursements, following the prescribed format, to the Director of the Banking Regulation and Policy Department-1 by July 31, 2026.

The directive was issued under Section 45 of the Bank Company Act, 1991.

The government is advancing discussions with UAE-based port operator DP World on the long-term leasing of Chattogram Port’s largest functional New Mooring Container Terminal (NCT).

The company has also proposed operating the adjoining Chittagong Container Terminal (CCT) along with NCT as a single integrated terminal.

The last interim government was close to finalising a deal with DP World to operate NCT. But in the wake of a wildcat strike enforced by port employees and workers, it has to suspend the move just before the parliamentary election in February. The new government, however, is continuing the talks.

At the fourth joint public-private partnership platform meeting of the Bangladesh-Dubai government-to-government platform held in Dubai on April 8, it was agreed that negotiations should be concluded within the validity period of the request for proposal for NCT.

According to meeting minutes obtained by The Daily Star, the session was convened to review the progress of four projects currently placed on the platform and to discuss next steps.

NCT topped the list of projects, which also included Bay Container Terminal, Dhirasram Inland Container Depot (ICD), and a digital platform with a single window system.

The agenda also featured three other projects, including modernisation of the CCT, the port’s oldest container terminal with two jetties.

According to the minutes, the UAE firm expressed interest in modernising and operating CCT, adjoining NCT, to develop them as one integrated terminal.

The Bangladesh government agreed to consider placing CCT on the Bangladesh-Dubai Joint Platform and to discuss it as a separate project in future meetings.

The CCT has the capacity to handle 6 lakh twenty-foot equivalent units of containers every year.

At the meeting, DP World requested greater transparency on the revenue, cost, and manpower structure of the Chittagong Port Authority with respect to NCT’s operation.

The firm also stressed the need to reconsider the proposed 15-year concession tenure and the additional expenditure required for modernising the terminal.

It was decided that DP World, as the bidder for the NCT project, should submit all comments, suggestions, concerns, negotiation milestones, and a revised bid, if necessary, at the earliest.

Regarding Dhirasram ICD, to be built by Bangladesh Railway, DP World as the intended operator, is set to submit a refreshed formal technical recommendation. The firm also expressed interest in considering capital investments in locomotives, rolling stock, and other rail freight infrastructure.

Discussions were also held on three other projects, including a free trade zone adjoining Chattogram Port, CCT, and Nimtala ICD.

Ashik Chowdhury, chairman of the Bangladesh Investment Development Authority and executive director of the Public Private Partnership Authority, led the four-member Bangladesh delegation.

It included the then shipping ministry secretary, Dr Nurun Nahar Chowdhury, and Bangladeshi ambassador to the UAE, Tareq Ahmed.

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.

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."

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.

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.

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."

State-owned Eastern Refinery Limited is set to resume operations on 8 May as a vessel carrying 1 lakh tonnes of crude oil is scheduled to reach the outer anchorage of Chattogram Port today (6 May).

Located in Patenga near the port, it is Bangladesh's sole refinery and has remained shut for over three weeks due to crude shortages.

Mohammad Mostafizur Rahman, deputy general manager (planning and shipping), said preparations were in place to resume operations from the morning of 8 May.

He said up to three lighter vessels can unload crude oil each day, each carrying around 4,000 tonnes. Operations will begin once at least 8,000 tonnes are received.

The crude shipment is being transported by MT Ninemea, which departed on 21 April from Yanbu Port, a vital Saudi Arabian energy hub located on the Red Sea coast. The vessel is due to arrive at around 11am.

Captain Mohammad Mujibur Rahman, general manager (chartering and tramping) at Bangladesh Shipping Corporation, said the arrival time may vary slightly but unloading will begin immediately using lighterage vessels.

According to the Bangladesh Petroleum Corporation, refining operations at the plant were suspended on 14 April due to a lack of crude supply.

The last shipment arrived on 18 February. Subsequent imports were disrupted by the Iran war, which led to the closure of the Strait of Hormuz, a key route for crude shipments from the Middle East to Asia.

A planned 1 lakh tonnes cargo from Ras Tanura in Saudi Arabia on 3 March was cancelled, along with another shipment from Abu Dhabi, worsening the supply crisis.

Officials at the refinery said they had continued limited operations using around 5,000 tonnes of crude left in the Single Point Mooring pipeline at Maheshkhali, along with residual stock from five storage tanks.

Typically, about 1.5 metres of crude remains as dead stock at the bottom of tanks, becoming unusable below one metre. As reserves fell below usable levels, operations were halted from 14 April.

Another 1 lakh tonne due this month

After months of supply disruption, a second 1 lakh tonne of crude shipment has been scheduled. The cargo will be imported from Abu Dhabi National Oil Company and will consist of Murban crude.

The vessel is expected to be loaded at Fujairah Port on 10-11 May before sailing for Chattogram port. Chartering firm Bangladesh Shipping Corporation has already dispatched a tanker for the operation.

Captain Mujibur Rahman said the vessel is scheduled to arrive in Bangladesh on 22-23 May.

According to Bangladesh Petroleum Corporation, the country imports 65-68 lakh tonnes of fuel annually, with diesel and crude accounting for the largest share.

Around 15 lakh tonnes of crude are imported from the Middle East each year and processed at Eastern Refinery, which produces 16 types of products, including LPG, petrol, octane, kerosene, diesel and furnace oil.

In addition to crude, Bangladesh imports about 45 lakh tonnes of refined fuel annually from India and China. The refinery typically processes around 4,500 tonnes of crude per day. However, output was reduced to about 3,500 tonnes daily last month due to supply shortages.

By 4 March, usable crude stocks at the refinery had fallen below 2,000 tonnes. The plant mainly processes Arabian Light crude from Saudi Arabia and Murban crude from the UAE, with limited capacity to handle other grades.

Amid the supply crisis, the government approved a proposal in March to purchase 1 lakh tonnes of crude from Malaysia-based Abir Trade and Global Markets, but the deal was not finalised due to uncertainty over supply assurance.

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.

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.

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.