SpaceX jumped 23% in its Nasdaq debut on Friday, as investors piled in to the world's largest ​IPO and bet on Elon Musk's sprawling empire spanning rockets, internet service and AI.

The stock was last trading at $166 a share after opening for trading at $150, making SpaceX ‌the sixth-largest US company, with a market value above $2 trillion.

The company's debut is widely viewed as a dress rehearsal for a new generation of mega-listings, with market participants watching for signals on investor appetite ahead of forthcoming IPOs for AI heavyweights Anthropic and OpenAI.

SpaceX's stock performance was being closely scrutinized in part because some bankers said the IPO market could face difficulties if SpaceX shares close below Thursday's pricing level of $135 a share.

The landmark listing cemented Musk's status as ​the first trillionaire ever - even though the firm posted a loss of nearly $5 billion last year and generated only a fraction of the revenue brought in by similarly valued tech ​giants.

"Elon deserves an extreme premium because of his track record and his vision for calling technology trends early," said Shaun Maguire, a Sequoia Capital partner ⁠who led the firm's investment in SpaceX. At the IPO price its $2 billion investment would be worth over $20 billion, a person familiar with the matter told Reuters.

SpaceX President Gwynne Shotwell and Chief ​Financial Officer Bret Johnsen rang the Nasdaq opening bell earlier on Friday.

World's largest IPO

The IPO is a culmination of Musk's long-held ambitions in space and technology, and has stood out for rewriting Wall Street's IPO ​playbook and drawing legions of retail investors into the market.

At $75 billion, the deal's proceeds were more than double those of Saudi Aramco's record-setting 2019 IPO.

The valuation could rise further should underwriters exercise their right to sell additional shares, a decision typically made within 30 days after the offering.

Although SpaceX may have to wait for entry into the S&P 500, its expected fast-track inclusion in the Nasdaq 100 will soon make it a major holding for passive funds ​and ETFs that track the index, creating a fresh source of demand for its shares.

"We have to go back 100 years to get comparable entrepreneurs. He's a visionary unlike others, and he executes ​extremely well," said Joel Shulman, CEO of ERShares, which manages an ETF that has an exposure to SpaceX.

It will take about a month before it gets added to that index under Nasdaq's new fast-entry rules, as ‌opposed to a ⁠typical wait of as much as a year.

Some analysts expect SpaceX's debut to trigger a reshuffling of investor portfolios, creating selling pressure on other technology heavyweights as funds rotate into the stock. On Friday, shares of other space firms and satellite companies declined sharply, reversing gains spurred by SpaceX's April IPO filing, with Planet Labs down 8% and EchoStar down 14%.

A $28.5 trillion market opportunity

For all the excitement surrounding the IPO, determining what SpaceX is actually worth remains a difficult valuation exercise.

SpaceX said its market opportunity spans $28.5 trillion, a figure it called the largest in human history. With its leading position in space - ​the firm says its operation is responsible for ​more than four-fifths of the mass launched into ⁠orbit over the past three years - and revenues from Starlink, some investors said it has a strong foundation upon which to build.

John Belton, portfolio manager at Gabelli Funds, said the best comparable to SpaceX is Musk's electric vehicle company Tesla, as each has an established business and "a moonshot opportunity on ​the other side."

"For Tesla, that's things like humanoid robotics and other future applications. For SpaceX, it's the AI business," he said.

With revenue of $18.7 ​billion in 2025, the company's ⁠market cap puts its price-to-revenue ratio at a lofty 94. Some analysts have already issued positive ratings on the company. Morningstar analysts this month said it is more fairly valued at around $780 billion, and CFRA on Friday started coverage with a sell rating.

"This is not a name you're buying based on fundamentals. For me, the analogy is Amazon. This was a company that changed the way we live," said Nancy Tengler, CEO ⁠and CIO ​of Laffer Tengler Investments. "If the stock drops to $100, that's not ideal, but it wouldn't change our long-term view. We want ​to participate."

Bangladesh may need two years to take off from the present miasma and make the economy get full stability and prosperity, says Finance Minister Amir Khosru Mahmud Chowdhury.

"The country's economy will need two years from where it stands now. After that, the economy will stabilise and fully turn around in the fourth and fifth years."

He came up with the optimism a day after presenting in parliament an upscale Tk 9.38-trillion national budget replete in projected upgraded macroeconomic parameters and a wide recipe of reforms to get to the goal.

At a post-budget press conference held Friday in Dhaka, the finance and planning minister highlighted government intent to reform the country's public-finance architecture and explore alternative sources of funding to lower borrowing from banking sector.

"This year we have reduced bank borrowing by Tk 60 billion, and once the new public finance is fully designed, alterative sources will have significant contributions to the funding," he told journalists.

The minister in his budget speech Thursday said that Tk 1.12 trillion (net) will be borrowed from the banking system, down by Tk 60 billion from the revised budget of the current year (2025-26)Regional business directory

He notes that the proposed budget for fiscal year 2026-27 has been designed as an inclusive one aimed at bringing all sections of society into the economic mainstream.

"No class, profession, religion or caste is outside the scope of the budget this time," he told the press about the maiden budget of the Tarique Rahman-headed government that assumed office amid uprising-spurred popular aspirations for sociopolitical and economic recast.

Mr. Khosru says preparing the budget has been particularly challenging because of severe time constraints and resource constrains.

"Normally, the budget-preparation process takes at least six months. We had only one and a half to two months. Despite that, we completed the task with the cooperation of all concerned, including the journalists."

He notes that this budget has been prepared in a fundamentally different political and economic environment. "By budget, we basically mean a reflection of the will of the people."

The minister says the new government's objective is to build a more people-oriented economy rather than one benefiting only a limited group of individuals or businesses.Global economy podcast

He claims the budget includes targeted allocations, programmes and implementation plans for different social and professional groups despite resource constraints.

Mr Khosru also highlights shifts in the global economic landscape, saying that the world is gradually moving away from a rules-based system towards greater protectionism. "This year's budget has been formulated keeping those global changes in mind."

Responding to questions on inflation, the finance minister said effective policies, improved management and lower business costs would be more effective than administrative crackdowns in controlling prices.

"There is no alternative to strengthening the supply system, reducing inefficiencies and implementing reforms."

He links the recent inflationary pressures to a combination of international and domestic factors, including global conflicts, higher import prices, shortages of capital in the banking sector and money laundering which have increased the cost of funds.

"High borrowing costs, port inefficiencies and logistical expenses continue to raise the cost of doing business," he told the journalistsPersonal finance e-book

"It can take six months to a year to establish a company or obtain the necessary approvals. Businesses ultimately pass those costs on to consumers," he further explains the price hikers.

The government has already initiated regulatory reforms aimed at lowering business costs and improving efficiency.

Mr Khosru stresses the importance of maintaining an efficient supply chain and building strategic reserves of key commodities.

Long-term planning and stronger buffer stocks for fuel, food and fertiliser are underscored and that Bangladesh should maintain at least three months' energy reserves to strengthen energy security.

In the past, he says, excessive reliance on spot purchases often left the country exposed to volatile prices.

"With long-term planning, adequate storage facilities and strategic stocks, costs can be reduced substantially."

The minister announces plans for deregulation, overseen by a high-powered taskforce.Politics

"A dedicated online platform will allow businesses and citizens to report licensing and regulatory obstacles, enabling authorities to respond quickly."

The custodian of exchequer had a word on corruption, an incendiary issue in all quarters. He thinks implementing new pay scale for the government officials and employees could help reduce incentives for corrupt practices.

"When people face shortages, there is naturally a tendency to resort to corruption. There is no point in denying this reality."

The finance minister says pressure on living standards, particularly among low-income households, has prompted the government to allocate the largest-ever amount for social protection and welfare programmes.

Significant resources have been earmarked for family-support schemes, agriculture, universal healthcare and primary healthcare services.

He mentions that employment generation and skills development remain central priorities of the budget.Entrepreneurship resources

Major investments are being planned in education, technical training and vocational programmes to help workers secure higher-paying jobs both at home and abroad.

To support the rural economy, the government plans to provide financing, training, design support, and market access to traditional occupations under a new "Creative Economy" initiative.

This administration places greater emphasis on employment creation and quality-of-life improvements rather than pursuing large-scale megaprojects.

"Value for money and employment generation are being considered in every project," he says.

A major component of the government's strategy involves developing Bangladesh's creative economy as a new growth driver.

Mr. Khosru mentions plans for an integrated creative centre on 160 acres in Purbachal, bringing together theatre, arts, design, entertainment and cultural activities.

The project aims to create jobs, attract visitors and transform culture into an economically productive sector.Regional business directory

"We have to monetise creativity."

The government is launching an investment programme worth around Tk 8.0 billion to support the initiative.

The minister argues that Bangladesh possesses significant cultural assets, including music, folk traditions and performing arts, but has yet to commercialise them effectively.

He points to the global success of Korean music and drama industries as examples of how cultural products can generate export earnings and international influence.

Thousands of artists, musicians, actors and other creative professionals currently lack sufficient income opportunities, he says, adding that the new programme would help create sustainable livelihoods.

Responding to questions about tourism, Mr. Khosru said domestic tourism offers substantial untapped potential.

While foreign tourist arrivals remain limited, he argues that stronger entertainment and tourism infrastructure could stimulate economic activity and improve quality of life.Personal finance e-book

"Bangladesh is also lagging behind in soft power," he says. "Our goal is to create opportunities through culture and entertainment that generate employment, support growth and strengthen the country's global presence."

Present at the news conference were Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmud Tuku, Information and Broadcasting Minister Zahir Uddin Swapan, Education Minister Dr. ANM Ehsanul Haque Milon, Agriculture, Fisheries and Water Resources Minister Mohammad Amin Ur Rashid, Health Minister Sardar Mohammad Sakhawat Hossain and State Minister for Finance and Planning Jonayed Saki.

Also present were Prime Minister's Adviser Mahdi Amin, Posts, Telecommunications and Information Technology Adviser Rehan Asif Asad, Cabinet Secretary Dr. Nasimul Ghani, Bangladesh Bank Governor Md. Mostaqur Rahman, National Board of Revenue (NBR) Chairman Md. Abdur Rahman Khan and Prime Minister's Special Assistant on Investment and Capital Market Tanvir Ghani.

The proposed budget introduces a sweeping set of changes to how taxes are collected, filed, and enforced -- which chartered accountants say are largely business-friendly but will only work if officials on the ground do not use them to harass taxpayers.

They made the comments at an event where the Institute of Chartered Accountants of Bangladesh (ICAB) laid out its assessment of the proposed budget for fiscal year 2026-27 at CA Bhaban in Dhaka yesterday.

The government has proposed a national budget of Tk 9,38,000 crore, equivalent to 13.7 percent of GDP, with a revenue collection target of Tk 6,95,000 crore, ICAB President NKA Mobin stated.

Mobin said the proposed budget reflects the government’s commitment to maintaining macroeconomic stability, enhancing revenue mobilisation, generating employment, expanding investment, and fostering private-sector growth.

“ICAB believes that raising the tax-to-GDP ratio while ensuring greater transparency and accountability in tax administration is essential for sustaining long-term economic growth,” he said.

Other ICAB members described that to hit the budget target, the government needs more people and businesses paying taxes, and it needs them to pay correctly. The budget takes two routes to get there. The first is making compliance easier and cheaper for businesses that already pay taxes. The second is pulling more people and sectors into the tax net for the first time.

EASIER FOR BUSINESSES

Speaking at the event, CA Sarker Nahidul Islam, director of Tax and Advisory Services at Rahman Rahman Huq, said several income tax changes reduce the burden on businesses.

The minimum tax — a levy businesses had to pay even when making losses -- has been removed. Rules around what companies can claim as expenses have been relaxed, including on staff benefits and marketing costs.

The budget also relaxes limits on perquisites and promotional expenses, allows interest expenses without strict conditions, and removes the penalty for withholding tax failures. Startups pay zero turnover tax in their early years.

Significant changes have also been made to VAT – the tax added at each stage of production and sale.

Businesses can now claim VAT credit on labour and transport costs, which they previously could not, Islam said.

The process for filing VAT returns has been simplified, and a mechanism called the reverse charge – which required importers to self-assess and pay VAT on certain transactions – has been removed, cutting a layer of paperwork, he said.

VAT audits, which could previously drag on indefinitely, must now be completed within one year, he added.

Meanwhile, mandatory filing requirements have been tightened, tax audits will be more frequent, and penalties for late filing have been increased. Businesses must now submit proof that they have withheld and deposited tax on payments to suppliers and employees – a requirement that previously existed but was not strictly enforced.

“These changes are expected to reduce the cost of doing business and improve cash flow,” Islam said.

DISPUTING A TAX DEMAND JUST GOT CHEAPER

Nahidul also noted that appeals against tax decisions have been made simpler, payment requirements in certain cases have been reduced, and there has been an overall shift toward faster and more structured VAT compliance.

Under the current system, a business disputing an income tax assessment must deposit 10 percent of the disputed amount just to file a first appeal, 10 percent to go to the Tax Appeal Tribunal, and 25 percent to approach the High Court -- money that is locked up for the duration of the legal process regardless of whether the business ultimately wins.

In the proposed budget, the government has sought to cut these rates to 1 percent at the first appeal stage, 3 percent at the Tax Appeal Tribunal, and 10 percent at the High Court.

WIDENING THE TAX NET

At the same time, the budget is widening the tax net. Islam noted that VAT registration is now mandatory for mobile financial services providers, as well as businesses that provide electricity connections and vehicle registration services.

Retailers, who have largely operated outside the VAT system, are being brought in at a reduced rate of 0.2 percent. Warehouses have also been brought under VAT for the first time.

“These measures are expected to broaden VAT collection without significantly increasing tax rates,” Islam said.

However, he cautioned that some regulatory burdens remain, including no reduction in dividend tax rates, reduced rebates for individuals, and stricter record-keeping requirements of up to 12 years for companies. Increased scrutiny on expatriate employment and certain transactions may also raise compliance costs for businesses.

IMPLEMENTATION IS THE REAL TEST

CA Snehasish Barua, partner at Snehasish Mahmud and Co, said the government’s primary objective with the budget is to control inflation, and that duty reductions at the import stage were introduced with that goal in mind.

“These measures aim to provide relief to consumers, particularly as electricity and utility costs continue to rise,” he said.

But he said the main concern among practitioners is what happens at the field level. “The NBR must take practical steps to address this issue. Otherwise, revenue collection pressure will continue to fall on existing taxpayers rather than through an expansion of the tax base and the inclusion of new taxpayers in the system,” Snehasish said.

ICAB members also described the Document Verification System (DVS) -- a joint initiative between NBR and ICAB that allows tax authorities to verify the authenticity of financial documents submitted by taxpayers -- as a significant tool that has already helped curb evasion and should be expanded further.

ICAB members also noted that achieving the revenue collection target of Tk 6,95,000 crore will require comprehensive reforms and coordinated implementation efforts.

The budget projects a fiscal deficit of Tk 2,43,000 crore, of which Tk 1,12,000 crore is to be financed through domestic borrowing from the banking sector.

The institute cautioned that such reliance on bank financing could constrain credit availability for the private sector and potentially discourage private investment at a time when the government is simultaneously trying to encourage it.

Landowners will soon have to pay a 15% capital gains tax on the value of apartments or any other financial benefits received from developers beyond the initial signing money, according to changes proposed in the new Finance Bill.

The proposed measure, included in the income tax provisions of the bill presented by Finance Minister Amir Khosru Mahmud Chowdhury, seeks to broaden the capital gains tax base by treating apartments and other non-cash benefits received from developers as taxable gains.

Under the existing system, the signing money received by landowners when entering into a development agreement is subject to a 15% capital gains tax. However, apartments allocated to landowners as part of the development arrangement are currently exempt from such taxation.

The new proposal would change that. Apartments received in place of land will be valued at the current official government valuation for the specific area, known as the mouza value. The acquisition cost of the land will then be deducted, and the remaining amount will be treated as capital gains subject to a 15% tax.

How it would work

Speaking to TBS, a senior official from the National Board of Revenue explained that if a landowner, who purchased a 10-katha plot for Tk50 lakh two decades ago and later handed it over to a developer, could face a substantial tax liability.

In the example cited by the official, the landowner receives Tk50 lakh as signing money and is allocated 10 apartments out of a 20-unit project. If each apartment carries a mouza value of Tk50 lakh, the total value of the apartments would amount to Tk5 crore.

Including the signing money, the landowner's total proceeds would reach Tk5.5 crore. After deducting the original acquisition cost of Tk50 lakh, the taxable gains would stand at Tk5 crore, resulting in a capital gains tax liability of Tk75 lakh.

Tax liabilities would vary depending on location, land valuation and acquisition history. In cases where land was inherited or acquired many years ago at relatively low values, the taxable gain could be significantly higher because the acquisition cost would be comparatively small.

Government-assessed mouza values for both land and apartments are periodically updated by the relevant valuation committee.

Sector insiders estimate that more than 10,000 flats are sold annually in Bangladesh, with the market value exceeding Tk10,000 crore.

Industry raises concerns

Developers and tax specialists have expressed concerns that the proposed measure could encourage under-reporting of property values and increase tax evasion.

MA Awal, former vice-president of the Real Estate and Housing Association of Bangladesh, told TBS, "If such a tax is imposed, there will be a greater tendency to conceal the actual value of transactions. For that reason, it would be more reasonable not to increase taxation in this area."

Snehasish Barua, tax expert and managing partner of Snehasish Mahmud and Company, said taxpayers already tend to understate actual property values.

"If additional taxes are imposed on landowners, the tendency to conceal values may increase further because higher declared income would result in higher tax liabilities," he said.

Industry participants warned that if compliance is effectively enforced and opportunities for concealment are limited, the additional tax burden could ultimately be reflected in higher apartment prices, affecting buyers rather than sellers.

'Substantial revenue generation likely'

NBR officials said the measures could generate substantial revenue. Syed Md Aminul Karim, a former member of the NBR, said, "Even when based on official government valuation, this measure is highly likely to generate substantial revenue."

He thinks transitioning to actual market valuation would yield far greater returns. "Regardless, this remains a commendable step towards boosting state revenue."

Karim further noted that the policy would not place an additional financial burden on ordinary or low-income citizens, as the tax is effectively levied indirectly on substantial wealth and assets.

Remittances sent by Bangladeshi expatriates have continue to surged in the wake of Eid-ul-Azha, with the crucial economic indicator crossing $34 billion with 20 days left in the current fiscal year.

Bangladesh Bank officials estimate that it will exceed $36 billion by the end of the 2025-26 fiscal year on Jun 30.

Bangladesh Bank spokesperson and Executive Director Arief Hossain Khan gave an update on the remittance situation on Friday, stating that expatriates from different countries across the world sent in $1.20 billion in the first 10 days of June, the last month of the outgoing fiscal year.

This figure is about a 26 percent year-on-year jump from the same period last year.

In total, expatriates sent approximately $34 billion in the 11 months and 10 days of the outgoing fiscal year (Jul 1, 2025 to Jun 10, 2025). This is 19.31 percent higher than in the same period in the previous fiscal year and a 12 percent increase from total remittances throughout the entire fiscal year (Jul 1, 2024 to Jun 30, 2025).

If remittances keep pace for the remaining 20 days of June, the total for the month could exceed $3.6 billion, the second highest in a single month. Accordingly, at the end of the fiscal year (Jul 1, 2025 to Jun 30, 2026), the amount will exceed $36 billion.

In the first 10 days of June last year, $956.2 million in remittances came in. The total for the month was $2.82 billion.

Previously, the highest incoming remittances in a single month was in March, with $3.75 billion. Last May saw an inflow of $3.42 billion.

Currently, remittances have crossed the $3 billion threshold for six consecutive months. If that level is passed in June, it will be seven.

Bangladesh celebrated Eid-ul-Azha on May 28. Bangladesh Bank spokesman Arief said that more remittances came in during the month of May as expatriates sent their families additional funds to meet their needs ahead of and during the festival.Regional business directory

The $3.75 billion that came in last March was due to the Eid-ul-Fitr holiday, he said.

Arief told bdnews24.com, “We have seen in the past that remittance flow usually decreases quite a bit after Eid. But this time, even after two Eid holidays, the positive trend in expatriate income transfers has continued.”

“So, all in all, we have calculated that remittances will exceed $36 billion by the end of this fiscal year.”

The Bangladesh Bank official noted there had been fears remittance flows would decrease due to the Iran war. But so far, there has been no impact, he said.

Banks are currently paying Tk 123 per dollar on remittances. Accordingly, expatriates sent Tk 147.98 billion to the country in the first 10 days of June. The daily average was $120.3 million per day, which is Tk 14.78 billion.

Of the economy’s major indicators, remittances are performing the best, helping to keep the gears of the economy turning in the face of adversity.

More than $3 billion in remittances came to Bangladesh each month from December to May.

The number was $3.17 billion in April, $3.22 billion in December, $3.17 billion in January, and #3.02 billion in February.Newspapers

In July, the first month of the outgoing fiscal year, remittance inflow was $2.48 billion. The second month – August – saw $2.42 billion.

September, October and November recorded inflows of $2.68 billion, $2.56 billion and $2.89 billion respectively.

Even in the face of the Iran war and global economic headwinds, remittances have propped up the Bangladesh government’s foreign currency reserves, a significant relief following an extended dollar crunch under the Awami League regime.

On Thursday, the last day of the week, Bangladesh had $30.07 billion in reserves, according to the BPM-6 measure. The gross amount was $34.73 billion.

The government has announced a wide-ranging deregulation programme aimed at cutting red tape, lowering compliance costs and improving Bangladesh’s business climate as the country prepares for graduation from least-developed country (LDC) status.

The reform package, unveiled in the budget speech of Finance Minister Amir Khosru Mahmud Chowdhury on Thursday, covers investment approvals, company registration, taxation, customs, banking, capital markets and construction permits.

Businesses have long complained about lengthy approval processes, overlapping regulations and cumbersome compliance requirements that delay investment decisions and raise operating costs.

SEVEN-DAY DEADLINE FOR APPROVALS

A key feature of the reform package is the introduction of strict timelines for government approvals and licences.

The government plans to make the online Single Window platform mandatory for business approvals and licensing. From application submission to licence issuance, all procedures will have to be completed within seven days.

If a government agency fails to provide a required opinion, clearance or no-objection certificate within the stipulated period, the application may be processed on the assumption that consent has been granted, where applicable.

Authorities also plan to introduce “plug-and-play” facilities in selected industrial and economic zones, allowing investors to set up factories and begin production more quickly.

FASTER BUSINESS START-UP SERVICES

The government intends to simplify company registration by moving name clearance, application submission, fee payments and certificate issuance online. Company registration is expected to be completed within 48 hours.

Small and new businesses may be allowed to start operations with provisional approvals and complete remaining compliance requirements within six to 12 months.

Work permits for foreign experts and skilled professionals are set to be issued within seven days, while investor visas will be processed within 10 days. The government is also considering five-year multiple-entry visas for eligible investors and project personnel.

To facilitate large investments, agencies such as Bida, Beza, Bepza and BSCIC will assign dedicated support teams and case managers. A grievance redress mechanism and a 24-hour investor help desk are also planned.

TAX ADMINISTRATION GOES DIGITAL

The deregulation drive includes measures to simplify tax and VAT compliance. From the next fiscal year, corporate taxpayers will be able to file returns online, while excess tax deducted at source will be refunded directly to bank accounts through an automated system.

Tax and VAT audit selection will be automated using risk-based software, while tax residency certificates for foreign investors will be issued online through the National Single Window.

For VAT, online filing will become mandatory, simplified returns will be introduced for small businesses, and the government is considering quarterly instead of monthly VAT submissions.

CUSTOMS PROCEDURES TO BE SIMPLIFIED

Several reforms target customs administration and bonded warehouse facilities.

The government plans to extend bond facilities beyond the readymade garments sector to other export-oriented industries. Annual bond audits for compliant garment exporters may be withdrawn, while bond validity periods in some sectors will be extended.

Ten sectors, including motorcycles, speedboats, fish processing, handicrafts, diversified jute products and sanitary products, may be allowed to import raw materials against bank guarantees without obtaining bond licences.

Authorities also plan to reduce customs paperwork, expand self-assessment facilities and allow accredited private laboratories to conduct product testing alongside government facilities to reduce port congestion and delays.

EASIER PROFIT REPATRIATION

To improve investor confidence, the government intends to simplify rules governing profit repatriation and capital transfers.

Applications related to the repatriation of profits from foreign investments will be processed within 30 days. Requirements for share transfers and capital repatriation in unlisted companies will be eased, while certain transactions will no longer require prior approval from Bangladesh Bank.

The reform package also proposes simplifying foreign trade payments, expanding digital lending and cashless transactions, and easing regulatory requirements for banking services.

CAPITAL MARKET AND CONSTRUCTION APPROVALS

The government plans to streamline IPO approvals through digital platforms, reduce documentation requirements and review the possibility of direct listing for eligible companies.

Measures are also proposed to expand the corporate bond market and strengthen participation by institutional investors.

Construction, environmental and fire-safety approvals will be integrated into a single online platform. A risk-based approval system will be introduced so that low-risk projects receive faster clearances while higher-risk projects continue to undergo detailed scrutiny.

HIGH-LEVEL TASK FORCE

The government says a high-level task force will oversee implementation of the deregulation programme. A dedicated website will also be launched to track progress and allow businesses to report delays or irregularities in service delivery.

Commenting on the government’s deregulation initiatives, M Masrur Reaz, chairman and CEO of Policy Exchange Bangladesh, said the new government appears to be treating deregulation as a key reform tool for creating a more business-friendly environment.

He welcomed the approach, noting that Bangladesh’s business environment is burdened by unnecessary and outdated regulations, as well as red tape arising from weak regulatory enforcement.

Reaz said deregulation-driven reforms could involve removing redundant rules, simplifying existing regulations and allowing greater self-regulation by industry bodies such as the Bangladesh Garment Manufacturers and Exporters Association.

Such measures, he said, would reduce the time, cost and procedural burden of regulatory compliance for businesses, making government services faster, easier and more competitive.Bangladesh Chamber of Industries President Anwar-ul-Alam Chowdhury Parvez also welcomed several of the proposed measures, but questioned whether they could deliver results without deeper structural reforms.

Manufacturers remain more concerned about uninterrupted gas supply and a stable banking sector than fiscal incentives, he said.

Persistent energy shortages, rising non-performing loans, weak investor confidence and the absence of a clear roadmap for banking reforms continue to weigh on business sentiment, he noted, adding that success would ultimately depend on implementation capacity and institutional reforms.

The finance minister said in his budget speech that the government wants to make the capital market vibrant. But a number of proposed tax changes could push institutional and retail investors away from shares and into safer investments such as government securities.

Under the proposed budget for fiscal year 2026-27, corporate investors would lose the preferential 20 percent tax rate on dividend income from shares and instead pay tax at their regular corporate rates.

For banks, that could mean paying 37.5 percent tax on dividend income instead of 20 percent.

The second proposed change affects individual investors. Retail investors currently receive a 15 percent tax rebate on stock market investments, but the budget proposes reducing that to 10 percent.

The maximum investment eligible for the rebate would also be lowered to Tk 7.5 lakh from the current Tk 10 lakh.

Moreover, income or discounts earned from zero-coupon bonds, a type of debt instrument purchased at a discount and redeemed at full value at maturity, are currently exempt from income tax for all investors. The FY27 budget proposes scrapping that exemption.

According to market analysts and asset managers, these proposed tax measures could send the wrong signal to investors at a time when the government is trying to revive the capital market.

“Both of the proposed tax measures for corporates and retail investors are negative for the capital market,” said Ali Imam, managing director and chief executive officer of Edge Asset Management.

However, he said the proposed tax on corporate dividend income would have a greater impact because institutional investors are already limited in the market. The additional tax would further discourage them from investing.

CORPORATE TAX CHANGES ON DIVIDEND INCOME

At present, corporate investors pay a 20 percent tax on dividend income earned from stock market investments. If the provision is abolished, they will instead pay tax according to their respective corporate tax rates.

For example, if Bank A invests in a listed company, Company B, and receives Tk 100 in cash dividends, the bank currently pays Tk 20 in tax on that dividend income, even if its corporate tax rate is 37.5 percent.

If the provision is removed, the bank would have to pay tax at 37.5 percent on the same dividend income.

Banks currently make up the bulk of institutional investors in the stock market and are therefore likely to be the hardest hit by the measure.

Moreover, with treasury bond yields remaining attractive, banks and other institutions may choose risk-free government securities over stock market investments.

Edge Asset Management CEO Ali Imam said dividend income represented a distribution of profits paid from earnings that had already been taxed.

“Therefore, imposing an additional tax on dividend income is illogical in itself, as the underlying profits have already been taxed. Increasing the tax rate further amplifies the negative impact, effectively creating a double burden on investment returns,” he added.

Iftekhar Alam, president of Bangladesh Merchant Bankers Association (BMBA), said investors could shift their funds if returns on other securities are higher.

However, he said the country lacks sufficient investment vehicles.

Alam said there has been positive sentiment in the market since the new commission took office recently and expressed hope that investors would remain in the stock market.

Saiful Islam, president of the DSE Brokers Association (DBA), urged the authorities to retain the tax benefits currently available to stock market investors for at least another couple of years, as the market is undergoing a transformation and rebuilding.

BUDGET OTHERWISE WINS MARKET APPRECIATION

In his budget speech, Finance Minister Amir Khosru Mahmud Chowdhury said the government would work to reduce the private sector’s excessive dependence on bank financing and make the IPO process time-bound and digital.

According to a budget analysis by Sheltech Brokerage Ltd, these steps would strengthen the role of the capital market within the financial system, resulting in greater market depth and improved liquidity.

It says the digital IPO process would reduce approval times, lower compliance costs, increase the attractiveness of listing and potentially expand the IPO pipeline.

The budget also outlines plans to modernise market infrastructure by gradually shifting from the existing T+2 settlement cycle to T+0 settlements. Non-Resident Investors’ Taka Accounts (NITA) accounts would also be simplified.

Sheltech Brokerage said these measures could facilitate foreign investment inflows and improve liquidity, although they might also increase market volatility.

Meanwhile, the Dhaka Stock Exchange (DSE) welcomed the national budget, saying the measures would help develop the country’s capital market and create a more investment-friendly environment.

In a statement issued on budget day, DSE Chairman Mominul Islam expressed gratitude to the government for prioritising the restoration of investor confidence, strengthening market governance and addressing long-standing concerns of market stakeholders, saying these steps reflected a strong commitment to the sustainable development of the capital market.

He said the proposed measures to improve coordination among regulatory agencies and institutions linked to the capital market would enhance efficiency, transparency and accountability, helping build a stronger and more integrated market infrastructure.

The government aims to raise the creative economy’s contribution to the country’s gross domestic product (GDP) to 1.5 percent, viewing the largely untapped sector as a potential source of growth, jobs and export earnings, according to Finance Minister Amir Khosru Mahmud Chowdhury.

Speaking at an economic diplomacy conference in Dhaka yesterday, he said Bangladesh should invest more in culture, arts, entertainment and design to diversify its economy.

Drawing a comparison with the United Kingdom’s thriving creative industries, the minister said creative products and services generate significant economic value and serve as an important source of soft power.

According to UNCTAD estimates, the global creative economy accounts for about 3 percent of world GDP, or around $2.25 trillion. In India, the sector contributes around 1.5 percent of GDP.

“Bangladesh possesses strong creative talent but has yet to adequately protect, promote and commercialise it,” said Khosru at the conference, titled “Roadmap for Trade, Growth and Economic Diplomacy”, jointly organised by the foreign ministry and the Bangladesh Investment Development Authority (Bida) at Pan Pacific Sonargaon Dhaka.

In his proposed budget for fiscal year 2026-27, the finance minister outlined the 1.5 percent target, alongside a 10-year investment strategy and time-bound action plans aimed at creating 5 lakh new jobs in the creative economy.

Currently, there is little data available on how many activities such as performing arts, design, stand-up comedy and other creative pursuits contribute to the economy.

The finance minister said there are plans to establish a dedicated “theatre district” on 150 acres of land. Such a hub would create new opportunities for spending and economic activity while strengthening the country’s cultural influence.

He highlighted the budget’s focus on developing the creative economy by supporting artisans, designers, performers and cottage industry entrepreneurs through financing, skills development, branding support and access to digital marketplaces.

“We have to protect it, promote it and monetise it,” he said.

He also spoke about streamlining business approvals and deregulation. Khosru said deregulation is central to the government’s efforts to create a more business-friendly environment.

Responding to concerns from foreign investors about higher taxes on compliant businesses, Khosru said the government’s priority is to expand the tax net rather than increase the burden on existing taxpayers.

He added that reforms, including separating tax policy formulation from tax administration, are aimed at improving efficiency and making tax collection more predictable.

He called for a rethink of Bangladesh’s public finance architecture, citing rising borrowing costs and growing interest payments.

Khosru urged greater reliance on the capital market for large investments and said state-owned enterprises should raise funds independently.

He also pledged financial sector reforms and faster regulatory simplification to improve the business environment.

Foreign Minister Khalilur Rahman said Bangladesh must redesign its international economic engagement to cope with slowing global trade and growth, geopolitical tensions, climate risks, rising protectionism and supply chain disruptions.

He cautioned that weaker demand in major export markets, high borrowing costs, climate vulnerability and the global energy crisis pose significant challenges.

Developing countries, he noted, face much higher financing costs and remain vulnerable to volatility in global financial markets.

Rahman said the government’s strategy focuses on stabilisation, reforms and economic transformation, while assuring investors and development partners that Bangladesh remains open for business.

Bida Executive Chairman Ashik Chowdhury said Bangladesh’s biggest achievement over the past year was restoring democratic accountability through a free and fair election, which had strengthened policy stability and investor confidence.

He outlined reforms to support an investment-led growth strategy aimed at creating more than 1 crore jobs, including reducing factory permit approval times to 14 days, expanding digital services and streamlining regulatory procedures.

Acknowledging energy and logistics constraints, he said Bangladesh would accelerate solar power projects, diversify energy sources and fast-track LNG infrastructure development.

He also announced plans to privatise or develop partnerships for around 20 underperforming state-owned enterprises.

“The biggest challenge is execution,” he said.

LGRD and Cooperatives Minister Mirza Fakhrul Islam Alamgir said the government is committed to building a self-reliant and resilient industrial economy in which every citizen could share in prosperity and dignity.

He described the proposed budget as a roadmap towards that goal and said small and informal businesses would be promoted as important drivers of growth.

NBR Chairman Md Abdur Rahman Khan said Bangladesh must raise domestic revenue to support economic transformation, but cautioned against tax policies that could undermine business growth and employment.

He said reforms are focused on lowering compliance costs, simplifying procedures and helping businesses expand. Exporters would receive broader bonded warehouse facilities, while automation is being expanded across tax administration.

More than 45 lakh taxpayers filed returns online last year, while more than 12 lakh users obtained licences and permits through the National Single Window platform, he said.

Among others, Shama Obaed Islam, state minister for foreign affairs; Humayun Kabir, foreign affairs adviser to the prime minister; Mahadi Amin, adviser to the prime minister; Jahrat Adib Chowdhury, member of parliament; Asad Alam Siam, foreign secretary; and M Masrur Reaz, chairman and chief executive officer of Policy Exchange Bangladesh, spoke in separate sessions.

Senior government leaders, diplomats, development partners and private sector representatives attended the event.

Eminent economists have described the proposed national budget for fiscal year (FY) 2026-27 as 'highly ambitious', warning that financing constraints and weak implementation capacity could pose significant challenges for the newly formed government.

They cautioned that failure to mobilise adequate revenue and foreign financing could force excessive reliance on the banking sector, potentially squeezing private-sector credit and slowing job creation.

The economists stressed the need for deep institutional reforms and a stronger focus on value for money, rather than routine budget implementation.

Eminent economist Dr Mustafa K. Mujeri said the budget appears designed to "please everyone", reflecting the finance minister's earlier statement that it would cater to all sections of society.

However, he noted that this approach is typical in the early budgets of a new government.

"It can be said that attention has been given to everyone in terms of allocation," he said, adding that health, education, development, entrepreneurship, start-up capital and other areas have all been addressed.

However, he emphasised that the key issue lies in implementation.

"We can achieve the desired results only if the budget is implemented properly, keeping in mind the context in which it was formulated and the allocations were made," he said.

Dr Mujeri identified two major obstacles to implementation of the large budget -- financing and the efficient use of funds.

"The revenue target set by the finance minister is impossible," he said.

He recommended structural reforms to improve revenue collection and reduce dependence on bank borrowing to avoid crowding out private sector credit.

At the same time, he warned against excessive withdrawal of funds from the banking system, saying it could create liquidity pressures and restrict private investment.

Dr Selim Raihan, Professor at the Department of Economics, University of Dhaka, said the budget is ambitious in tone but cautious in macroeconomic design.Economics

He said it correctly identifies the economy's main challenges, including weak growth, high inflation, low revenue mobilisation, fragility in the banking sector, rising debt-servicing costs and external shocks.

He noted that the budget places emphasis on private investment, employment, social protection, education, health, energy security, deregulation and regional development, which is broadly appropriate.

Proposals on investment incentives, support for SMEs and startups, and improvements in logistics and export infrastructure indicate an intention to move beyond a narrow growth model.

However, he said the budget is stronger in diagnosis than in operational clarity.

Dr Raihan said the budget simultaneously promises stability and expansion -- lower inflation, higher investment, increased social spending, stronger revenue collection, bank recapitalisation and tax concessions -- without clearly explaining sequencing or trade-offs.

"The main challenge will be implementation," he said.
He noted that long-standing weaknesses in tax administration, public expenditure quality, procurement, project readiness, banking governance and local-level service delivery cannot be addressed through budget announcements alone.

He warned that revenue targets would be difficult to achieve without a transparent tax expenditure framework and strict performance conditions for exemptions and incentives.

Similarly, public spending in education, health and social protection would only deliver meaningful results if leakages are reduced and outcomes properly monitored.

Dr Raihan said the way forward should be disciplined and practical, with measurable reform milestones, regular progress reporting, protection of priority spending, time-bound and conditional investment incentives, stronger banking-sector governance before further recapitalisation, and safeguards against crowding out private credit.

"In short, this budget can become a useful first step, but only if it is followed by serious institutional reform rather than routine implementation," he added.

Dr M Masrur Reaz, Chairman and Founder of Policy Exchange Bangladesh, described the FY2026-27 budget as an ambitious attempt to build a welfare-oriented state and investment-led growth model, but warned that success depends on overcoming persistent weaknesses in revenue mobilisation, project implementation and governance.

In an instant reaction to The Financial Express, he said the budget outlines a broad reform agenda centred on social protection, investment promotion, deregulation and foreign direct investment, while seeking to shift the economy away from debt-driven growth.

Professor Muhammad Mahboob Ali of Bangladesh University of Business and Technology (BUBT) said the budget provides a strategic framework aimed at stabilising the economy and realigning priorities.

He said the Tk 9.38 trillion budget represents a major test for the new government, requiring a shift away from overly ambitious growth targets towards stabilisation, financial sector reform and easing inflationary pressures.

He noted that revised FY26 estimates place total revenue between Tk 5.93 trillion and Tk 7.01 trillion, while FY27 projections indicate an 18 per cent rise in income, including grants.

The Bangladesh Securities and Exchange Commission (BSEC) has entered a complex legal standoff with the judiciary after issuing a fresh directive requiring the conversion or liquidation of closed-end mutual funds, despite a standing High Court status quo order on the matter.

The regulator's latest move, issued yesterday (9 June), has unsettled the asset management industry and left fund trustees in a difficult position as they weigh the risks of regulatory non-compliance against the possibility of contempt of court.

The dispute stems from a regulatory framework introduced in May 2026, under which any closed-end mutual fund trading at a discount of 25% or more to its Net Asset Value (NAV) must either convert into an open-end fund or be liquidated.

On 7 May, the BSEC instructed trustees of non-compliant funds to begin preparations for the process after 12 May, citing the need to protect small investors from persistent inefficiencies and illiquidity in the sector.

The directive was subsequently challenged in the High Court by petitioner Rashidul Islam, who argued that the regulator was unlawfully altering the tenure of existing funds.

HC issues 2-month status quo

The High Court, on 24 May, issued a two-month status quo order on the conversion or liquidation of the affected funds. It also issued a Rule Nisi, asking the finance secretary, the BSEC chairman, the managing directors of the stock exchanges, the Investment Corporation of Bangladesh (ICB), and other respondents to explain why the regulatory order should not be declared illegal.

The court also questioned the BSEC's authority to enforce premature conversion or liquidation of funds whose tenures had already been extended under a 2018 government notification.

Despite the court order, the BSEC yesterday issued a new directive reiterating that trustees should proceed with the conversion process, placing market intermediaries in a difficult position.

A senior ICB official, speaking on condition of anonymity, said complying with the latest BSEC order could be interpreted as a direct violation of the High Court's status quo. To protect itself, the ICB sent a formal letter to the commission today (10 June) seeking urgent clarification and said it would not proceed until the legal uncertainty is resolved.

The commission's internal legal discussions also appear to be under scrutiny.

BSEC's emergency meeting tomorrow

According to a senior BSEC official, yesterday's directive was issued following advice from the commission's legal experts, who believed the order would not amount to contempt of court.

However, after receiving multiple letters from concerned trustees highlighting potential judicial consequences, the regulator has reportedly sought a second legal opinion.

The commission is expected to review the matter in an emergency meeting tomorrow (11 June) in an effort to avoid a direct confrontation with the High Court.

Currently, 22 of the 36 listed closed-end mutual funds are trading at discounts of 25% or more to their NAV, making them subject to the conversion mandate. The original deadline for initiating the process expires tomorrow.

Under the proposed framework, at least 75% approval from unit holders is required for either conversion or liquidation.

BSEC spokesperson Abul Kalam defended the reform, saying it is aimed at protecting investors. He argued that open-end funds offer greater liquidity, easier redemption and a more transparent exit mechanism for investors who have remained trapped in undervalued funds for years.

He emphasised that the reform is designed to address governance transparency and ensure that the market price of a fund's units more closely reflects its underlying assets.

According to market sources, out of around 34 listed closed-end mutual funds, at least 22 are now exposed to either liquidation or mandatory conversion into open-end funds under the new regulation.

As the deadline looms, the fate of billions of taka invested in these 22 mutual funds remains in limbo.

Facebook-parent Meta and Indian conglomerate Reliance Industries on Wednesday announced a deal to develop an AI-enabled data centre in the state of Gujarat, as the US tech giant scales its digital footprint globally.

The project, to be built in Jamnagar district, comes as technology giants race to expand computing capacity needed to support generative AI services in the world’s fastest-growing major economy.

Reliance will develop a 168-megawatt data centre to be delivered within two years, while Meta will lease capacity from the facility, the companies said in a joint statement.

The 168-megawatt facility will be developed by Reliance within two years, while Meta will lease computing capacity from it
The financial details of the agreement were not disclosed.

Meta chief Mark Zuckerberg said it was “proud” to partner with Reliance on its “first AI-enabled data centre in India”.

“This world-class facility in Jamnagar will help us scale our AI infrastructure globally while deepening our long-term investment in India’s economy,” Zuckerberg said.

Reliance chairman Mukesh Ambani described the announcement as India’s “first built-to-suit data centre for a global technology leader of Meta’s scale”.

India, home to more than a billion internet users, has seen a wave of investment announcements from global and domestic firms seeking to tap rising demand for cloud computing, artificial intelligence and data storage.

Google and Amazon have expanded their cloud infrastructure footprint in the country, while Indian conglomerates including Adani Group and Reliance have unveiled large-scale data centre plans.

Last week, Australian data centre operator AirTrunk said it would invest US$30 billion in India by 2030 to develop five gigawatts of data centre capacity.

Reliance is India’s biggest privately held conglomerate and its Jamnagar refinery is billed as the world’s largest.

Jamnagar is also home to what Reliance says is “one of the world’s largest wildlife rescue, care and conservation centres”.

Bangladesh’s economy is set to cross a historic milestone as the size of the Gross Domestic Product (GDP) is estimated to surpass the half-trillion-dollar mark in the current fiscal year (FY2025-26), according to provisional estimates released by the Bangladesh Bureau of Statistics.

The country’s nominal GDP is projected to rise to $501 billion in FY26, up from $456 billion in the previous fiscal year, marking a significant expansion in the size of the economy, according to the BBS report on Wednesday.

Alongside the higher economic output, per capita national income is estimated to increase sharply to $3,020, registering a rise of $251 or 9.06 per cent from $2,769 recorded in FY2024-25.

The latest estimates also indicate a moderate recovery in economic growth, while real GDP growth is estimated to grow by 4.14 per cent in FY26 from 3.49 per cent in FY25, although the pace remained below the pre-COVID trend.

Sector-wise performance showed mixed signals. The service sector continued to act as the main engine of growth, expanding by 4.59 per cent during the fiscal year, significantly increasing from the last fiscal year's growth of 4.35 per cent.

The agriculture sector also improved, posting 2.78 per cent growth compared with 2.42 per cent in the previous year, supported by stronger fisheries and livestock activities.

However, industrial growth slowed notably to 2.86 per cent from 3.71 per cent a year earlier, mainly due to weaker manufacturing performance and contraction in natural gas and crude petroleum extraction. 

The manufacturing sector is estimated to grow by 3.31 per cent, a significant drop from 5.83 per cent in the last fiscal. The large industry secured only 1.97 per cent of growth provisionally, with a massive fall from 5.94 per cent in the last fiscal.

The natural gas and crude petroleum sector contracted by 10.73 per cent in FY26, extending its negative growth streak for the fourth consecutive year.

Despite the expansion in GDP size, key macroeconomic indicators pointed to underlying pressure in investment and savings.

The overall investment-to-GDP ratio declined to 27.93 per cent in FY26 from 28.54 per cent in the previous fiscal year, indicating slower capital formation in the economy.

Private investment fell to 21.53 per cent of GDP, from 22.03 per cent, while public investment dropped to 6.40 per cent from 6.51 per cent in the last fiscal.

Savings indicators also weakened amid rising consumption pressure. Domestic savings dropped to 21.38 per cent of GDP from 21.98 per cent, while national savings declined to 26.93 per cent from 27.67 per cent in the last fiscal.

Consumption expenditure remained the dominant driver of economic activity, accounting for 78.62 per cent of GDP at current market prices, with private consumption alone representing nearly 73 per cent of the economy.

The government has disclosed a multi-year personal income tax roadmap outlining rates over two years during the interim government period and three subsequent years under a BNP-led government, according to budget proposals presented in the latest fiscal framework.

Under the plan, the highest personal income tax rate is set to rise to 35% for individuals earning above Tk3 crore from the 2028-29 tax year, up from the existing 30%.

The additional 5% tax will apply to the "super income group," while middle-income taxpayers will remain unaffected.

"We proposed an additional 5% tax on income exceeding Tk3 crore from tax year 2028-29 to 2030-31. This higher rate will apply only to a small number of wealthy and high-income taxpayers and not to middle-income taxpayers," a draft budget speech by Finance minister Amir Khosru Mahmud Chowdhury reportedly stated, according to finance ministry sources.

The revised rate is expected to take effect on income earned in the 2027-28 fiscal year.

The proposal also includes an adjustment to the tax-free income threshold. For the 2028-29 tax year, the exemption limit is set to rise to Tk4 lakh, up from Tk3.75 lakh under earlier interim government announcements for the 2026-27 fiscal year. The threshold is projected to increase further to Tk4.5 lakh by 2030-31.

Under the proposed slab structure, income up to Tk3 lakh will remain tax-free, followed by 10% tax on the next Tk3 lakh, 15% on the next Tk4 lakh, 20% on the next Tk5 lakh, 25% on the next Tk20 lakh, and 30% on income up to Tk2.64 crore. Income above Tk3 crore will be taxed at 35%.

For the 2030-31 tax year, the top rate is expected to remain unchanged, though adjustments are likely in lower tax brackets and exemption limits.

Bangladesh's top tax rate has fluctuated over time, standing at 30% for years before being reduced to 25% during the previous Awami League government and later restored to 30%.

Economists have long argued for higher taxation on high-income groups to reduce inequality, while some tax experts caution that higher rates could discourage compliance among existing taxpayers.

In the upcoming fiscal year, the government has set a target to utilise $13.27 billion, or Tk 1,62,000 crore, in foreign assistance through loans and grants -- an increase of 62 percent compared to the revised target for the current fiscal year.

According to the Ministry of Finance, $3.59 billion of this foreign assistance will be allocated as budget support, while the remaining amount will come in the form of project loans and grants.

The government is set to move away from its reliance on domestic borrowing to fund the budget deficit in the next fiscal year and opt for foreign borrowing in a bid to free up resources for the private sector and contain inflationary pressures, according to the finance ministry.

The overall deficit has been projected at Tk 2,43,000 crore, which is 3.6 percent of the GDP.

The outgoing fiscal year’s deficit target stands at Tk 2,00,000 crore. The government borrowed Tk 1,37,000 crore from domestic sources and Tk 58,000 crore from abroad, while about Tk 5,000 crore came in grants.

The budget plan for the next fiscal year says net domestic borrowing is expected to fall by 7.29 percent to Tk 1,27,000 crore, with bank borrowing cut by more than five percent to Tk 1,12,000 crore. Net foreign borrowing is projected to surge by over 89 percent to Tk 1,09,850 crore. The remaining Tk 6,150 crore will come from grants.

To reduce inflation and the cost of living, the government has taken an initiative to cut source tax on essential and agricultural products in the upcoming 2026–27 budget.

The new tax rate will come into effect after budget approval.

Finance and Planning Minister Amir Khosru Mahmud Chowdhury is set to table the national budget for FY2026-27 in the House tomorrow afternoon (11 June).

According to the proposal, the existing source tax rates of 5%, 2% and 1% will be reduced to a uniform 0.5%.

Sources at the National Board of Revenue (NBR) said nearly 60 essential agricultural and consumer goods will come under this benefit.

These include rice, paddy, wheat, potatoes, livestock, ducks and chickens, fish, onions, garlic, ginger, salt, sugar, edible oil, seeds, and other daily necessities.

NBR sources said in recent years, high inflation and rising commodity prices have significantly increased the cost of living for ordinary people.

The decision to reduce source tax has been made to keep supply chains stable and ease price pressure on consumers.

The government is set to propose value-added tax (VAT) exemptions on the import of 36 raw materials used in pesticide production, aiming to boost local manufacturing, reduce reliance on finished imports and strengthen the domestic agrochemical industry.

Finance Minister Amir Khosru Mahmud Chowdhury is scheduled to unveil the national budget for the fiscal 2026-27 in the parliament today.

At present, imported raw materials for local production face a combined tax burden of 30% to 58%, including up to 15% VAT, making domestic production less competitive.

National Board of Revenue sources said a proposal is also under consideration to offer tax rebates on raw material imports for fertiliser production.

Officials also said the government is moving to support self-sufficiency in zinc sulphate fertiliser, with a proposal to reduce import duty on its key raw material, zinc ash, to zero percent.

Tax rebates are also being expanded for veterinary medicines, with plans to extend zero-duty benefits to generic categories of imported veterinary drugs instead of limiting concessions to specific branded products.

Relief for fertiliser producers

A broader package of relief is also under consideration for fertiliser and pesticide inputs to reduce agricultural production costs.

A proposal seeks to fully exempt the existing 7.5% VAT at the business level on all types of fertilisers. Separately, there is also a proposal to withdraw the 7.5% advance tax currently imposed at the import stage on all pesticides used in agriculture.

Cashew import duties likely to rise

In a move to support local cultivation and processing, the government is planning significant increases in cashew import duties.

The tariff on raw cashew nuts (in shell) is proposed to rise from 1% to 25%, while duties on processed cashew nuts (shelled) may increase from 5% to 25%.

However, to support domestic processors, a special provision is likely to be introduced, allowing raw cashew imports for local processing industries at a concessional 15% duty.

Poultry, dairy machinery to get duty waiver

The budget also proposes full duty exemptions on machinery and equipment parts used in the poultry and dairy sectors to enhance domestic production capacity.

Several items are expected to be added to the relevant statutory regulatory order (SRO), bringing import duties on them down to zero percent.

In addition, duty concessions on raw materials for poultry, dairy and fish feed industries are set to be expanded, with three additional inputs likely to be included in the SRO and brought under zero-duty coverage.

The government has signed a loan and grant agreement with the World Bank to improve the country's health, nutrition and population services.

Under the agreement, the World Bank will provide $379 million in loan assistance, along with $25 million in grant support from the Global Financing Facility (GFF).

The financing will support two major projects under the Ministry of Health and Family Welfare, to be implemented between July 1, 2025 and June 30, 2029.

The first project, the Health and Nutrition Services Improvement and System Strengthening Project, will be implemented by the Directorate General of Health Services.

The project aims to improve the quality, accessibility and coverage of health and nutrition services across the country, with special emphasis on the Chattogram and Sylhet divisions, while strengthening the overall resilience and efficiency of the health system.

The second project, the Climate-Responsive Reproductive Health and Population Services Improvement and System Strengthening Project for Results, will be implemented by the Directorate General of Family Planning.

It aims to enhance the quality, equity and expansion of reproductive health and population services through climate-resilient systems and strengthened institutional frameworks.

The $379 million loan will be repayable over a period of 30 years, including a five-year grace period.

The financing carries a service charge of 0.75 percent per annum and an interest rate of 1.25 percent per annum on the disbursed amount.

A commitment fee of 0.50 percent per annum will apply to the undisbursed balance. However, the World Bank has refrained from collecting this fee in recent fiscal years.

Economic Relations Division (ERD) Secretary Md Shahriar Kader Siddiky and Jean Pesme, division director of the World Bank Group for Bangladesh and Bhutan, signed the agreement, according to a press release issued by the ERD.

Gold fell over 2 percent ‌to a more than two-month low on Wednesday as fresh fighting in the Middle East dimmed hopes of a resolution to the US-Israeli war with Iran, heightening concerns about inflation and interest rate hikes.

Spot gold was down 2.1 percent at $4,172.44 per ounce ​by 0849 GMT, its lowest level since March 23. US gold futures ​for August delivery shed 2.1 percent to $4,195.60.

“Gold remains a victim of growing inflation risks despite geopolitical tensions fuelling risk aversion. Renewed US-Iran hostilities have essentially sabotaged efforts to ​end the war,” said Lukman Otunuga, senior research analyst at FXTM.

Iran’s Revolutionary Guards said ​they had carried out missile and drone attacks on US military bases in Jordan, Kuwait and Bahrain in retaliation for American strikes on Iranian targets around the Strait of Hormuz.

The clashes mark one of ​the biggest exchanges in hostilities since the two countries agreed to a ceasefire in ​April.

Bullion has fallen more than 20 percent since the US-backed war with Iran began in late February. ‌The ⁠conflict has led to a surge in oil prices, stoking fears of inflation and higher interest rates.

While gold is seen as a hedge against inflation, higher rates typically weigh on the non-yielding metal.

Traders are currently pricing in a 68 percent chance of a US interest rate ​hike in December, according ​to the CME ⁠FedWatch tool.

Investors await May Consumer Price Index data later in the day and the Producer Price Index reading on Thursday, to gauge ​the Federal Reserve’s monetary policy stance after a strong jobs report ​last week ⁠raised rate hike bets.

“The incoming CPI report may heavily influence expectations around what actions the Fed takes in second half of 2026. On the technical front, gold’s decline below the ⁠200-day SMA (Simple ​Moving Average) is a bearish signal that may ​trigger additional selling pressure, aided by fundamentals,” Otunuga said.

The indices of the Dhaka stock exchange inched down today (10 June)as cautious investors booked their profit before the upcoming budget FY2026-27.

The benchmark DSEX index of the Dhaka Stock Exchange (DSE) decreased 3 points to settle at 5,517 today. The blue-chip DS30 index dropped 0.5 points to 2,080, while the DSES Shariah Index shed 3 points to 1,114.

Market turnover stood at approximately Tk1,210 crore, 18.43% lower than the previous trading session. Of the issues traded on the DSE, 149 advanced, 178 declined and 64 remained unchanged.

Market participants said the stock market was in a consolidation phase last week after experiencing a strong rally in recent weeks. Typically, following a significant rise, investors tend to book profits, leading to a temporary correction or stabilisation in the market.

However, the appointment of a new chairman and commissioners of the Bangladesh Securities and Exchange Commission (BSEC) on the last trading day of the week boosted investor sentiment. Expectations that the new leadership would strengthen market governance, enhance transparency, and restore investor confidence prompted fresh buying interest, preventing the anticipated correction and pushing the market higher.

As a result, many cautious and short-term investors opted to lock in gains toward the end of the week, particularly in stocks that had posted sharp price increases over a short period. The resulting selling pressure contributed to the downward trend observed in the market at the beginning of this week, analysts said.

Meanwhile, the government's recent initiative to introduce a Tk20,000 crore stimulus package aimed at reviving closed and financially distressed industrial enterprises has also influenced market activity.

The announcement has fuelled speculative interest in shares of several listed companies that are either non-operational or fundamentally weak. Investors are betting that some of these companies could benefit from government support and eventually resume operations, improving their future business prospects.

However, market analysts noted that there is still no clarity regarding how the stimulus fund will be distributed, which companies will qualify for assistance, what conditions will apply, or when the funds will actually be disbursed.

They cautioned that the recent surge in the share prices of closed and weak companies is largely driven by expectations rather than confirmed developments and may not be sustainable in the long run.

Investors should therefore focus on company fundamentals, financial health, and business viability before making investment decisions, they added.

In its daily market review, EBL Securities said the capital bourse witnessed a flat session as profit-booking sentiment in recently rallied scrips offset selective buying in perceived attractive stocks, reflecting investors' cautious sentiment ahead of the upcoming national budget declaration.

According to the brokerage, the broad index opened on a brief positive note as bargain hunters remained active until mid-session; however, selling pressure emerged thereafter, wiping out the earlier gains and ultimately leading the market to close in a marginally negative territory.

On the sectoral front, the General Insurance sector dominated market turnover, accounting for 19.4% of total transactions, followed by Engineering at 12.4% and Textile at 11.7%.

Sectoral performance was mixed during the session. The Ceramic sector posted the highest gain, rising 3.5%, followed by Services with a 2.7% increase and Mutual Funds with a 2.0% gain.

On the other hand, the Miscellaneous sector suffered the sharpest decline, falling 4.2%, while Paper and Printing and Financial Institutions lost 2.0% and 1.2%, respectively.

Meanwhile, the Chittagong Stock Exchange (CSE) also ended in negative territory. The Selective Categories Index (CSCX) fell by 44.6 points, while the All Share Price Index (CASPI) dropped by 73.5 points at the close of trading.

Bangladesh's economy has crossed a major milestone, with gross domestic product surpassing the $500 billion mark for the first time, according to provisional estimates released by the Bangladesh Bureau of Statistics today (10 June).

The latest data show that the country's GDP at current prices reached $501 billion in fiscal year 2025-26, placing the country in the half-trillion-dollar economy club. The economy was valued at $456 billion in FY25.

In local currency terms, the size of the total GDP stood at Tk61.2 trillion during the fiscal year.

The milestone comes after several years of economic challenges, including external shocks, elevated inflationary pressures and the continued depreciation of the taka against the US dollar.

Economists say the latest figures indicate that the economy is gradually regaining momentum despite lingering structural weaknesses.

According to the BBS, GDP growth rose to 4.14% in FY26 from 3.49% in the previous fiscal year. Per capita gross national income also crossed a significant threshold, rising by $251 to reach $3,020 for the first time.

Investment and savings indicators weakened during the year. The investment-to-GDP ratio declined to 27.93% from 28.54% a year earlier. Domestic savings fell to 21.38% of GDP, while national savings dropped to 26.93%.

Infographics: TBS
Infographics: TBS

Despite the increase in GDP growth, lower levels of investment and savings suggest that significant challenges remain for the economy.

Sector-wise performance showed that agriculture and services supported overall growth, while industry lost momentum.

The industrial sector recorded growth of 2.86%, down from 3.71% in FY25, largely due to a slowdown in manufacturing. Contributions from large, medium, small and cottage industries all declined.

Although the services sector expanded at a slightly faster pace, contributions from wholesale and retail trade, real estate, accommodation and food services, and financial and insurance activities weakened.

Dr AK Enamul Haque, director general of the Bangladesh Institute of Development Studies, said the 4.14% growth rate reflected a slowdown in economic activity.

He attributed the weaker momentum to post-election uncertainty, sluggish investment and broader economic pressures, noting that many entrepreneurs remain in a wait-and-see mode regarding new investments.

"The decline in industrial growth is a concern," he said, adding that prolonged Eid holidays and disruptions to production also contributed to the sector's weak performance.

Enamul noted that the final growth figure could change, as complete agricultural data, including major seasonal crops, have yet to be incorporated into the estimates.

He said despite the challenges the expansion of GDP to $501 billion signals continued economic growth and could support further job creation. Preliminary indicators suggest a gradual improvement in urban labour markets.

Looking ahead, he said the upcoming budget would be crucial in restoring economic momentum through investment-friendly policies.

Sayema Haque Bidisha, an economics teacher at Dhaka University, said, "An increase in the size of GDP and per capita income is certainly a positive development. It indicates that the economy is gradually recovering. However, we should not focus solely on the size of growth; we must also examine how widely the benefits of that growth are being distributed."

She added that political and economic stability play a crucial role in attracting investment, as investors generally seek environments that offer stability and predictability.

Sayema Haque noted that expecting very high growth in the agricultural sector is not realistic because the sector operates within natural constraints.

Expressing particular concern over the slowdown in industrial growth, especially in the manufacturing sector, she said, "For a country's structural economic transformation, the manufacturing sector is extremely important. A significant share of future growth is expected to come from this sector. Therefore, a slowdown in manufacturing growth should serve as a warning sign for us."

The economics teacher further noted that the sluggish pace of private-sector investment and the negative trend in manufacturing deserve serious attention from policymakers, as these sectors serve as the primary driving forces of the economy.

She said future policymaking should prioritise forms of growth that generate employment opportunities and help reduce income inequality.

Meanwhile, Dr M Masrur Reaz, chairman of Policy Exchange Bangladesh, described the country's entry into the half-trillion-dollar GDP club as a significant milestone achieved through decades of economic progress.

He said that governance weaknesses had prevented the economy from achieving even stronger growth.

While agriculture and services continue to contribute positively, the weakness in manufacturing remains a key risk for a labour-intensive economy, Masrur said.

To sustain the momentum and eventually move toward a trillion-dollar economy, he said Bangladesh would need to redefine its growth drivers and undertake major reforms in trade, investment and revenue administration.