Solar power is often discussed as a policy ambition in Bangladesh, one which has become more pertinent given the ongoing global energy uncertainty and price volatility.

Bangladesh’s energy security depends on how quickly renewable ambitions translate into real projects -- spearheaded by solar.

Developing around 5,000 Megawatt peak (MWp) of solar could require over Tk 35,000 crore in generation investment, excluding land and supporting infrastructure -- making bankable projects and investor confidence essential.

In Bangladesh, 1 MWp of solar capacity can generate roughly 1.4 million kilowatt-hour (kWh) annually, highlighting solar’s potential contribution to the national power supply.

International experience shows that countries can scale solar from negligible levels to 20–30 per cent of installed capacity within a decade or even faster when supported by clear policy frameworks, bankable procurement structures and coordinated infrastructure planning.

Despite repeated policy commitments and long-term energy planning, solar deployment in Bangladesh has remained limited -- and this is solely because of an incomplete implementation framework.

In several cases, projects were awarded without confirmed land access, grid interconnection or developers demonstrating the financial and technical capability required to deliver utility-scale projects.

As a result, many projects lacked the capacity to achieve financial closure or progress to construction within expected timeframes.

Solar prices are influenced by technology costs but, in Bangladesh, are primarily driven by financing conditions, land constraints, infrastructure requirements and project risks.

While concessional financing is available, the challenge is deploying it at scale. Lower financing costs require reducing project risk through bankable power purchase agreements (PPAs), strong payment security and credible project pipelines.

Institutions such as Infrastructure Development Company can play a role through blended finance and credit enhancement structures, particularly if scaled and aligned with utility-scale project requirements, while foreign exchange risk mitigation can help unlock international capital.

The transition toward competitive solar tenders represents an important step forward.

Competitive tariff auctions can deliver transparent price discovery, but only when projects are genuinely ready to build.

Poorly structured tenders can encourage aggressive bids that later prove unviable, leading to delays or cancellations.

Procurement frameworks must ensure that winning bidders have credible projects, secured sites and the capability to deliver.

Many of the challenges observed in past projects reflect gaps in readiness at the time of award.

Successful projects require key fundamentals from the outset. Developers should demonstrate secure land rights, confirm sites are dispute-free and obtain preliminary grid interconnection approval.

Financial capability should be supported by credible commitments from experienced institutions, with bid bonds and performance guarantees discouraging speculative participation.

Once a project is awarded, clear and enforceable timelines should govern each stage of development.

Power purchase and implementation agreements should be executed within three months of award, followed by financial closure withinsix months of PPA signing.

Construction should then be completed within 12–18 months, depending on project size and site conditions.

Delays at any stage should trigger defined penalties, including encashment of performance guarantees.

Without disciplined timelines, projects risk remaining in prolonged development phases without progressing to construction.

Establishing and enforcing such timelines ensures that projects move predictably from award to operation.

Land and grid access remain two of the biggest barriers to scaling solar in Bangladesh.

Utility-scale solar is inherently land intensive: every 1,000 MWp of ground-mounted capacity typically requires roughly 2,200–2,300 acres. In a densely populated country, securing suitable sites becomes a major challenge. The ‘solar park’ model offers a practical solution.

Under this approach, government agencies prepare land and supporting infrastructure such as roads, drainage and substations before leasing plots to private developers.

By addressing land and grid constraints upfront, solar parks can significantly reduce development risk, lower costs and accelerate project timelines.

Such models need not rely on upfront public funding; infrastructure costs can be recovered through land leases, developer charges or structured public–private partnerships.

In the absence of a coordinated solar park framework, transmission connectivity remains a major challenge.

Developers must construct transmission lines connecting the plant to the nearest substation at their own cost, often across considerable distances and through complex right-of-way approvals.

Once completed, these lines are transferred to the national grid operator during commissioning. This requirement can significantly increase costs and delay projects.

Targeted fiscal incentives can help accelerate investment during the early stages of solar expansion.

Policies such as tax holidays, reduced or zero import duties on solar modules, inverters and key balance-of-system components and accelerated depreciation for renewable energy assets can significantly lower capital costs.

Because much solar equipment is imported, such measures can materially improve project economics and support more competitive tariffs.

Solar expansion can also stimulate domestic industrial development and job creation.

Growing deployment creates opportunities for local manufacturing and engineering firms to participate in the renewable energy supply chain, particularly in mounting structures, electrical systems and installation services.

Over time, solar module assembly could also emerge as a viable domestic industry if deployment scales sufficiently.

Rooftop solar offers a fast-track pathway for expansion. Approximately 6,000 square metres of roof space can support around 1 MWp of solar capacity.

Large factory rooftops provide suitable space for distributed generation, while net metering and third-party PPAs can enable deployment without upfront investment.

As solar capacity grows, complementary technologies such as battery storage will help manage intermittency and support grid stability.

Bangladesh has both the demand and the opportunity to scale solar power rapidly. The challenge now is execution.

With the right implementation framework in place, Bangladesh can transform solar ambition into delivered capacity -- strengthening energy security, enabling domestic industry and high-skilled job creation and driving long-term economic growth.

An important objective of income tax policy is to strengthen long-term savings, enhance future financial security, and advance the social protection of taxpayers. In line with this objective, investments and donations in fourteen (14) specified sectors have been made eligible for tax rebate, subject to Section 78 of the Income Tax Act, 2023 and Part III of the Sixth Schedule.

Under the prevailing provisions, a resident normal person taxpayer and a non-resident Bangladeshi (NRB) normal person taxpayer may claim a tax rebate of up to 3% of total income against the tax payable in a tax year, provided the investment or donation meets the prescribed conditions, subject to an overall maximum eligible amount of Tk 1,000,000.

While this incentive is positive in principle, certain inconsistencies and implementation risks warrant a review of both the eligible investment limits and the investment-eligible sectors in the forthcoming national budget.

The tax rebate facility is intended to encourage responsible savings and long-term financial resilience. However, this objective can be undermined if the incentive structure does not sufficiently account for risk management and investor protection.

At present, there are explicit caps on investments in comparatively safer instruments such as government securities, DPS, and life insurance. For instance, investments up to Tk 500,000 in government securities, Tk 120,000 in DPS accounts, and up to 10% of the sum assured in life insurance are treated as eligible for tax rebate. These caps reflect an intent to direct incentives toward safer savings instruments, thereby keeping risk relatively controlled.

In contrast, there is no clearly defined tax-related cap for investment in the stock market under the tax rebate facility. This creates an evident policy imbalance: stricter limits apply to safer instruments, while comparatively higher-risk market participation may be incentivized without equivalent safeguards.

In practice, a segment of ordinary taxpayers enters the stock market primarily to maximize tax rebate benefits. Yet the knowledge, analytical capacity, access to timely information, and risk tolerance required for equity market participation vary significantly across taxpayers.

Consequently, uninformed or inadequately assessed investments increase the likelihood of capital loss, which may directly conflict with the stated objective of strengthening future security.

This contradiction is material. The tax rebate is not merely a mechanism of tax reduction; it is a policy instrument that influences taxpayer financial behavior. If the incentive structure unintentionally encourages participation in higher-risk instruments without appropriate protection measures, it may lead to adverse outcomes, reduced household savings, heightened financial stress, and weakened long-term security.

Recent market-related events have further affected investor confidence. Developments such as restructuring decisions in the financial sector, uncertainty regarding shareholder outcomes in certain institutional changes, and the closure of some finance companies have heightened perceived risk among general investors.

In an environment of reduced trust, ordinary investors are more likely to be influenced by short-term signals and informal information channels, and they often lack effective institutional protection during periods of market volatility.

Most importantly, taxpayers who invest in the stock market for the purpose of tax rebate currently lack a visible and effective risk mitigation or protection framework. A tax rebate does not safeguard invested capital if an issuer becomes insolvent or if the market experiences significant decline.

Therefore, a policy designed to promote future security may inadvertently expose ordinary taxpayers to capital loss, raising concerns regarding both the practicality and fairness of the incentive design.

In view of the above, it is submitted that the National Board of Revenue (NBR) may consider redefining the eligible investment limits and the scope and conditions of eligible sectors under the tax rebate facility in the forthcoming budget 2026-27.

Proposed policy measures:

Increase the investment tax rebate ceiling
Raising the ceiling from Tk 10 lakh to Tk 20 lakh signals a forward-looking, investor-friendly policy shift, encouraging greater participation in formal savings and long-term financial planning.

Rational enhancement of limits for safer savings instruments
Existing caps for safer instruments may be reviewed and rationally increased. For example, the maximum eligible investment limit may be raised to Tk 2,000,000 for government securities and Tk 360,000 for DPS accounts. Such adjustments would encourage secure savings behavior and reduce the incentive-driven shift toward higher-risk instruments.

Establish a protection framework for tax-rebate-eligible stock market investments
A defined protection mechanism should be introduced for the rebate-eligible portion of stock market investments. Coverage or compensation in qualifying events such as issuer insolvency may be considered. Without such a framework, encouraging ordinary taxpayers into higher-risk instruments raises concerns of equity and fairness.

Adopt a risk-adjusted incentive structure
A balanced policy is required so that taxpayers are not compelled to concentrate on risk-prone instruments to maximize rebate benefits. Incentives should reflect both risk and protective safeguards to align with broader objectives of social protection and long-term security.

Treat dividend withholding as final tax
To enhance compliance simplicity and transparency, tax deducted at source (TDS) on dividends may be considered as final tax settlement, subject to legislative alignment. This would reduce administrative complexity and provide certainty to taxpayers.

Implement an annual investment awareness campaign (January–March)
A structured national campaign should be undertaken annually to improve taxpayer understanding of investment options, risks, and informed decision-making. Improved awareness would support planned participation and contribute to meeting short-term financing needs through stable instruments.

The tax rebate facility is an important policy tool to promote savings, strengthen future security, and advance social protection. Accordingly, the design of eligible limits and sectors should incorporate risk awareness, protection measures, and a pragmatic incentive balance.

The proposed measures would support safer long-term savings among ordinary taxpayers, reduce undue risk-taking in equity markets driven primarily by tax incentives, and improve alignment between the incentive framework and its intended policy objectives.

In a rare step in September last year, the Dhaka bourse published a list of 30 companies that had long been out of production. The move was meant to inject transparency into the market, check rumour-driven trading and warn investors chasing whispers rather than market fundamentals.

Instead, it had the opposite effect.

After the disclosure, share prices of 29 of those zombie firms, whose factories are padlocked, machines are gathering dust, and workers have long since left, surged. Some doubled. Others tripled.

Market analysts say allowing companies with no operational heartbeat to trade freely undermines confidence. For the sake of ordinary investors and the long-term health of the market, the regulator should move quickly to clean house.

The Dhaka Stock Exchange (DSE) says it is now preparing to delist companies with no realistic prospect of revival in phases.

But the obvious question is, why did the shares race ahead even though production has been halted for years?

Saiful Islam, president of the DSE Brokers Association of Bangladesh (DBA), said the answer lies in speculation. “Globally, there are always some investors who prefer to invest in penny stocks,” he said, referring to low-priced and highly speculative shares of small companies.

“There is a class of traders who are heavy risk takers and essentially enjoy gambling,” said Islam.

“They believe that if prices start to rise for any reason, the relatively low number of shares in these companies makes it easier to play in their favour,” he added.

DISCLOSURE TRIGGERS SURGE

After the disclosure by the DSE, shares of Familytex BD, Appollo Ispat and Tung Hai Knitting have more than tripled in the past three months, even though operations have been shut for years.

Other dormant firms have also seen sharp gains.

Hamid Fabrics, New Line Clothing, Nurani Dyeing and Shurwid Industries have more than doubled. Prime Textile rose 83 percent, while Meghna Pet Industries and Northern Jute climbed 69 percent each.

Meghna Pet Industries has been out of operation for 24 years. Its rally has left many analysts baffled.

“Why did this company’s stock rise to that extent?” asked Al Amin, an accounting professor at Dhaka University and a market analyst.

“Why did the company remain in the stock market for two decades despite having no operation, no dividend, nothing?” he questioned.

“These are surging absolutely due to manipulation and rumours by a vested interest group,” he added.

“By allowing trading of closed companies, the DSE and the BSEC [Bangladesh Securities and Exchange Commission] are basically allowing investors to burn their hands,” he further said.

Among the 30 companies, only GBB Power reported positive news, announcing that it had signed a power purchase contract with the Bangladesh Power Development Board (BPDB) for the installation of an 18 MW solar power plant.

Of the other dormant firms, Zaheen Spinning Mills rose 63 percent, Emerald Oil gained 55 percent and Regent Textile advanced 52 percent.

Prof Al Amin said the DSE cannot avoid its responsibility simply by publishing the status of the companies, especially when the securities regulator operates surveillance software.

In his view, both DSE and the Bangladesh Securities and Exchange Commission (BSEC) should dig deeper and suspend trading in such shares.

When asked whether suspension would hurt small investors, he said those who bought the shares should have had supporting information.

DBA President Islam also advocated for stronger action. The DSE’s responsibility, he said, does not end with labelling companies as non-operational.

He said investor protection is a core duty of the market regulator. If firms have remained dormant for years, the DSE could have suspended trading, summoned management, explored mergers or restructuring and engaged merchant banks to assess options.

AXE FINALLY LOOMS OVER THEM

Abul Kalam, spokesperson of the BSEC, said the regulator has placed the companies under surveillance. If it finds manipulation, insider dealing or regulatory breaches, it will act.

On whether the companies will continue trading despite years of closure, he said listing and delisting are fully in the hands of the stock exchange.

“Stock exchange can delist the companies complying with listing regulations; it is their task,” he added.

Mominul Islam, chairman of the DSE, said the exchange has asked the non-operational companies about plans to resume operations. Some have replied, others have not.

“A few cited political disruptions over the past decade as the reason for closure and said they are trying to reopen factories. The DSE will allow them time,” he told The Daily Star.

For the rest, the exchange will assess whether operations can realistically resume. If not, it will review assets and liabilities before making a decision. Some companies will be delisted gradually if there is no prospect of revival, he said.

The taka edged up against the US dollar yesterday, buoyed by a two-week ceasefire between the United States and Iran that eased pressure on the foreign exchange market.

The weighted average exchange rate stood at Tk 122.75 per dollar, down from Tk 122.84 the previous day, according to Bangladesh Bank (BB) data.

A senior treasury official at a private commercial bank said the market turned volatile in recent weeks as importers rushed to buy dollars amid fears of a prolonged war. That anxiety appears to have subsided following the ceasefire.

When importers scramble for forward buying, rates tend to climb. As tensions cool, demand for forward trading of US dollars is expected to ease, he said.

Forward buying means agreeing today to purchase dollars at a fixed rate on a future date. Forward trading refers to buying or selling dollars now at a pre-agreed rate for delivery later, usually to hedge against exchange rate swings.

In its Bangladesh Bank Quarterly published yesterday, the central bank, however, cautioned that the economy remains exposed to external oil price shocks and currency depreciation.

“A sharp increase in global oil prices, particularly when combined with exchange rate depreciation, could exert significant upward pressure on inflation and lead to a decline in foreign exchange reserves,” it said.

The BB report said that allowing some exchange rate flexibility could help ease pressure on reserves. At the same time, balancing fiscal costs and inflationary pressures may require a partial adjustment to global oil prices.

“Rising geopolitical tensions -- particularly the Iran-Israel-USA conflict -- have already disrupted global energy and food supply chains and may exert additional pressure on both the external balance and domestic inflation. These developments pose near-term risks to price stability, export demand, and import costs,” said the report.

Mirza Elias Uddin Ahmed, managing director of Jamuna Bank, told The Daily Star that Bangladesh’s external position has not fundamentally weakened, although panic driven demand had unsettled the market.

The country’s gross foreign exchange reserves stand at about $34.35 billion, which the central bank described as a strong buffer for external trade payments. Usable reserves were $29.81 billion on April 2, enough to cover more than five months of imports.

The BB report said the central bank has maintained monetary tightening in response to stubbornly high inflation.

“However, inflation remains above the comfort threshold, disproportionately affecting low- and middle-income households,” it said, adding that the government and the central bank have taken several steps to rein in price pressures.

The BB has withdrawn LC margin requirements for imports of essential commodities, including rice, onions, dates, sugar, pulses and edible oil, it added.

Alongside truck sales by the Trading Corporation of Bangladesh (TCB), relevant agencies are working to curb hoarding, syndication and other illegal practices to ease supply bottlenecks.

On money and credit markets, the report said the near-term outlook depends on striking a balance between maintaining adequate liquidity, containing inflation and reviving private sector credit growth.

It said that public sector credit is likely to remain the main driver of overall credit expansion in the short term, potentially crowding out private investment and complicating efforts to sustain growth.

“A recovery in private-sector credit will depend on further moderation of lending rates, improved investor confidence, and greater political stability,” said the BB.

Breaking a prolonged bearish spell since the onset of the Middle East conflict, Dhaka stocks rallied strongly today (8 April), with turnover and indices surging as investor sentiment rebounded after the United States and Iran agreed to a conditional two-week ceasefire.

US President Donald Trump said late on Tuesday that he had agreed to suspend attacks on Iran for two weeks after holding discussions with Pakistan, easing fears of an extended conflict.

The benchmark DSEX index of the Dhaka Stock Exchange jumped 3.12%, or 161 points, marking its highest single-day gain since 15 February.

Dhaka stocks extend rally as turnover jumps 27%

According to DSE data, stocks had rallied sharply on 15 February, the first trading session after the BNP's landslide victory in the 13th national election, when DSEX climbed 200 points, or 3.71%, amid a surge in investor participation.

Today, turnover – a key market indicator – surged 66% to Tk991 crore, the highest in seven weeks. Market breadth was overwhelmingly positive, with 93% or 367 of listed stocks advancing and 21 hitting the upper price limit.

The Shariah-based DSES index rose 2.88%, or 30 points, to 1,075, while the blue-chip DS30 index gained 2.77%, or 55 points, to close at 2,026.

Market data showed stocks opened sharply higher, with the DSEX rising 140 points within the first three minutes of trading. The upward momentum persisted throughout the session, closing at 5,317 points with a strong gain.

Following the outbreak of the US-Israel war on Iran on 28 February, the country's stock market entered a bearish phase, with most trading sessions ending in declines as persistent sell-offs eroded equity values amid fears of a prolonged conflict and its adverse economic impact.

Market insiders said investors had largely stayed on the sidelines in recent weeks due to prolonged uncertainty. The ceasefire announcement prompted a return of confidence, encouraging fresh inflows into equities.

They added that amid heavy sell-offs, many fundamentally strong stocks experienced significant value erosion. However, as the ceasefire reduced uncertainty, investor confidence improved, prompting a renewed flow of funds into the market.

EBL Securities, in its daily market commentary, said the capital bourse witnessed a strong resurgence as the announcement of a two-week ceasefire deal between Iran and the USA sparked optimism across the trading floor, triggering renewed accumulation of the beaten-down scrips in anticipation of improved market momentum amid easing geopolitical concerns.

"Market indices tracked a firm upward trajectory from the outset of the session with predominant buying interest, while investor participation strengthened steadily as the session progressed, driving broad-based price appreciation across most of the scrips," it added.

First Finance topped the gainers' list, with its shares rising 10% to close at Tk5.5 each – the maximum daily price increase – followed by ICB Islami Bank, which also gained 10% to Tk3.3, Bangas Limited up 10% to Tk134.2, BD Lamps up 9.96% to Tk157.8, and Khan Brothers PP Woven Bag Industries up 9.93% to Tk54.2.

Meanwhile, only 11 stocks declined. Techno Drugs led the losers, slipping 1.07% to Tk36.9 per share, followed by Apex Spinning Mills, Meghna PET Industries, Janata Insurance, and Summit Alliance Port.

On the sectoral front, pharmaceuticals and chemicals stocks accounted for the largest share of turnover at 15.6%, followed by engineering at 12.7% and banking at 12.6%. All sectors posted gains, with jute stocks exhibiting the most positive returns on the bourse.

The Chittagong Stock Exchange (CSE) also ended higher, with its Selective Categories Index (CSCX) and All Share Price Index (CASPI) rising by 192.5 points and 328.3 points, respectively.

Foreign investors significantly reduced their exposure to Bangladesh's capital market in March, offloading shares in leading blue-chip companies including Olympic Industries, BRAC Bank and Grameenphone, reflecting a sharp shift in sentiment driven by global uncertainties and lingering domestic concerns.

Data from the Dhaka Stock Exchange (DSE) showed that foreign investors remained heavily skewed towards selling throughout the month, with overall participation declining significantly.

Foreign turnover stood at Tk272 crore, down 59% from February, signalling reduced activity. Of this, total sales reached Tk215 crore, far exceeding purchases of Tk50 crore, highlighting a clear net outflow of foreign funds.

Among the worst-hit stocks, Olympic Industries saw the largest sell-off, with foreign investors offloading shares worth Tk76 crore. As a result, foreign shareholding in the company fell to 27.62% in March, from 30.26% a month earlier.

BRAC Bank followed, with Tk34 crore worth of shares sold, bringing foreign ownership down slightly to 36.48%. Similarly, Square Pharmaceuticals recorded Tk32 crore in sales, while Grameenphone saw Tk29 crore worth of divestment, reducing its already low foreign holding to 0.51%.

Other large companies also came under selling pressure, though in smaller volumes. Renata Limited saw Tk11.50 crore in sales, followed by City Bank with Tk10 crore and BAT Bangladesh with Tk4.60 crore.

Foreign investors also trimmed positions in a range of firms, including BSRM Limited, LafargeHolcim Bangladesh, Marico Bangladesh, Prime Bank, Beximco Pharmaceuticals, IDLC Finance and Linde Bangladesh, pointing to a broad-based retreat across sectors.

In contrast, a handful of smaller-cap stocks saw modest inflows. Daffodil Computers attracted the highest foreign purchases at Tk2.38 crore, lifting its foreign shareholding to 0.59%. Ring Shine Textile and Paramount Textile also recorded limited gains.

Overall, foreign investors reduced holdings in 25 listed companies in March, while increasing stakes in just eight. Holdings remained unchanged in 81 firms, underscoring a cautious and selective approach.

As of 6 April, the number of non-resident beneficiary owner (BO) accounts stood at 43,230, according to DSE data. 

Global tensions, domestic concerns weigh on sentiment

Market experts attributed the sharp decline in foreign investment to a mix of global geopolitical tensions and domestic structural weaknesses.

Salim Afzal Shawon, head of research at BRAC EPL Stock Brokerage Limited, told The Business Standard, "It's not just the Middle East war. There are many reasons for the decline in foreign investment. However, in the month following the election, we thought that foreign investment would increase. But that didn't happen. Rather, it decreased in an unexpected way."

Analysts said initial optimism following the formation of a new government after the national elections had raised expectations of improved market conditions. However, rising tensions in the Middle East due to the US and Israel's war on Iran disrupted global energy markets and increased economic uncertainty.

For Bangladesh, which depends heavily on imported energy, these developments have fuelled concerns over energy security, inflation and broader economic stability.

Such external pressures have compounded existing domestic issues, leading foreign investors to adopt a risk-averse stance.

Structural issues persist

Market participants noted that overseas investors tend to concentrate their portfolios in a limited number of fundamentally strong companies, given the scarcity of high-quality listed firms in Bangladesh.

As a result, even minor shifts in sentiment can trigger significant sell-offs in these stocks.

The presence of weak or poorly governed companies – often described as "junk stocks" – has further deterred foreign participation.

Analysts emphasised that concerns over corporate governance, transparency, and financial reporting continue to undermine investor confidence, limiting the market's attractiveness to global institutional investors.

Structural barriers, including complex capital gains taxation, inconsistent regulations and difficulties in repatriating funds, have also been cited as long-standing deterrents. Although recent policy measures aim to address some of these issues, their impact has yet to be fully felt.

In response to the declining trend, policymakers have reiterated their commitment to improving market conditions.

Finance Minister Amir Khosru Mahmud Chowdhury recently told parliament that authorities are stepping up efforts to curb market irregularities and manipulation.

He pointed to initiatives to strengthen investigation and enforcement mechanisms, accelerate digital transformation and improve accessibility for both domestic and foreign investors.

Bangladesh’s net foreign direct investment witnessed a sharp 39 percent increase in 2025, reaching $1.77 billion, according to central bank data.

The growth, however, was driven almost entirely by existing foreign firms, not new investors entering the market.

Bangladesh Bank (BB) data shows that net FDI stood at $1.27 billion in 2024.

Meanwhile, net equity inflows, the most direct measure of new investment, stood at $554.63 million last year, barely changing from $544.63 million a year earlier.

The increase in overall FDI instead came from reinvested earnings, which rose to $781.67 million from $621.96 million, and from intra-company loans, which surged more than fourfold to $434.11 million. Both reflect existing companies financing their local operations rather than fresh capital coming in.

Economists say despite the growth in 2025, the net FDI inflow remains insignificant relative to the size of the economy, particularly in terms of fresh investment. Data indicates that the country is struggling to attract new investors or major expansion projects. In a healthy FDI environment, rising net inflows are typically accompanied by strong equity growth, signalling new projects, job creation, and technology transfer.

Mohammad Abdur Razzaque, chairman of the Research and Policy Integration for Development, said equity inflows have been persistently low for some time.

“Equity investment is very low, which suggests that new investors are not coming. What we are seeing is largely expansion by existing investors,” he said, attributing the weak equity inflows to broader macroeconomic vulnerabilities and an unfavourable investment climate.

The economist also questioned the gap between official claims and actual outcomes, saying that while the Bangladesh Investment Development Authority (Bida) continues to highlight investment prospects, the ground reality does not reflect strong or meaningful inflows.

Rupali Chowdhury, president of the Foreign Investors’ Chamber of Commerce & Industry, pointed to several factors behind the weak inflows.

According to her, the shift to an interim administration, from mid-2024 till February this year, has created uncertainty around long-term investment decisions. In addition, delays in government-backed projects have raised concerns about policy continuity and contract enforcement.

Furthermore, she said episodes of social unrest and “mob culture” have damaged Bangladesh’s image among foreign investors.

A broader global slowdown has also made investors more cautious, with capital flowing to more stable and predictable destinations.

To attract fresh FDI, she stressed the need for consistent policies, respect for contracts, improved infrastructure, and above all, political and social stability.

Khondker Golam Moazzem, research director at the Centre for Policy Dialogue, meanwhile, pointed out that Bangladesh’s FDI inflows remain subdued, with limited signs of strong growth compared with regional peers such as India.

He said a major concern is the composition of inflows. “Intra-company loans have risen sharply, but these largely reflect financing by parent companies to existing operations, not fresh investment.”

He added, “Greenfield investors continue to face hurdles, including complex licensing requirements, delays in opening bank accounts, land acquisition difficulties, and slow approvals.”

FDI also remains concentrated in traditional sectors, he said, while weak intellectual property enforcement and regulatory gaps have kept investment out of non-traditional, export-oriented industries.

In a similar tone, M Masrur Reaz, chairman and CEO of the Policy Exchange of Bangladesh, noted that equity accounts for only around a third of total FDI. “This composition is not encouraging for job creation or economic diversification, even though net FDI recorded strong growth in 2025.”

Oil ​prices extended gains on Tuesday as a US-imposed deadline loomed for Iran to open the Strait of Hormuz or be “taken ‌out”, with US President Donald Trump threatening to order attacks on Iranian bridges and power plants.

Brent crude futures rose $1.44, or 1.3 percent, to $111.21 a barrel by 0700 GMT, while US West Texas Intermediate crude futures were up $2.32, or 2.1 percent, at $114.73.

Trump has threatened to rain “hell” on Tehran if it fails to comply with his deadline of 8 p.m. ​EDT on Tuesday (0000 GMT Wednesday) to reopen the strait, through which about a fifth of global oil supply is normally shipped, if a ​deal is not reached.

Responding to a US proposal through mediator Pakistan, Tehran rejected a ceasefire and said a permanent end to the war was necessary, and pushed back against pressure to reopen the strait.

Iran’s rejection of the US ceasefire proposal has kept tensions ​elevated and left diplomacy hanging by a thread, said Priyanka Sachdeva, senior market analyst at Phillip Nova.

“Oil is holding its gains because the ​battlefield risk is no longer theoretical. Attacks on energy and shipping assets continue, and traders fear that even if the war ends, damage to infrastructure could sideline barrels for months, not days,” she said.

Exports from several Gulf producers have already collapsed due to restricted flows through the Strait of Hormuz.

Iranian forces effectively shut the ​strait after US and Israeli attacks began on February 28.

“Clock-watching is now playing almost as big a role in oil markets as the ​fundamentals themselves in the run-up to Trump’s ultimatum deadline,” said Tim Waterer, chief market analyst at KCM Trade.

“The potential for a ceasefire deal offers some counterweight ‌and could ⁠spark a relief move lower if it gains traction, but persistent supply worries from the Hormuz chokepoint and damaged energy facilities are keeping the floor under prices.”

The U.N. Security Council is expected to vote on Tuesday on a resolution to protect commercial shipping in the Strait of Hormuz, but in significantly watered-down form after veto-wielding China opposed authorizing force, diplomats said.

Attacks in the region continued with explosions heard in the Syrian capital, ​Damascus, and surrounding countryside on Tuesday ​that were caused by the ⁠Israeli interception of Iranian missiles, Syrian state TV reported.

Saudi Arabia said on Tuesday it intercepted and destroyed seven ballistic missiles launched towards its Eastern Region, with debris falling near energy facilities.

The conflict has squeezed global crude supply, ​sending spot premiums for US WTI crude surging to record highs as Asian and European refiners scramble to ​secure replacement supplies amid ⁠disrupted Middle Eastern flows.

Saudi Arabia’s state oil company Aramco raised the official selling price of its Arab Light crude to Asia for May delivery, setting a record premium of $19.50 a barrel above the Oman/Dubai average.

Adding to supply concerns, Russia on Monday said Ukrainian drones attacked the Caspian Pipeline Consortium’s terminal on ⁠the Black ​Sea, which handles 1.5 percent of global oil supply. Russia reported damage to loading infrastructure ​and storage tanks.

Opec+ agreed on Sunday to lift oil output quotas by 206,000 bpd in May, though the increase will be largely notional as key members cannot boost production because ​strait closures are curbing exports.

In a move to lower financing costs and enhance global competitiveness, the Bangladesh Bank is set to introduce offshore dollar loans for exporters at a significantly lower interest rate.

Under the proposed scheme, exporters will be able to borrow at an interest rate of 8%, substantially lower than the prevailing 14% to 16% charged on local currency loans. The central bank is expected to issue a circular shortly outlining the operational framework, officials said.

Exporters would be permitted to use the funds for day-to-day business expenses, including utility payments, wages, and other working capital needs. The loans will be repaid from export proceeds in foreign currency, reducing pressure on the domestic banking system.

The facility will also allow exporters to convert the borrowed dollars into the taka through currency swaps with their banks if needed, without incurring additional interest costs.

Providing exporters with such facilities will enhance their financial capacity. Consequently, this is expected to bolster their competitiveness in the international market while easing the pressure on the country's foreign exchange reserves.

According to central bank officials, the loan amount will be linked to export orders. "For instance, if an exporter secures an order worth $100 and opens a letter of credit (LC) for $60 to import raw materials, they may borrow up to $40 under the offshore facility to meet remaining operational expenses," an official told The Business Standard.

Banks will be allowed to extend these loans based on their relationships with clients, with maturities ranging from three months to one year, he said, adding that no strict cap on lending has been imposed, giving banks flexibility to assess client needs.

"Currently, there is an opportunity to take this type of loan from the banking system, but it must be taken in the taka and the interest rate is 14% or more. The main objective of providing the facility to take loans from offshore banking at 8% interest is to increase the competitiveness of exporters and support them," the official said.

The Bangladesh Bank will instruct banks to provide short-term foreign currency loans to exporters from offshore banking units, based on established banker-customer relationships.

No further credit limits or additional conditions will be imposed on the banks. Depending on the specific requirements of the customer, banks may extend these loans for a tenure of three months to a maximum of one year.

The initiative follows a reduction in the Export Development Fund from $7 billion to $2.2 billion, a move necessitated by conditions under the International Monetary Fund programme. This reduction has significantly curtailed exporters' access to existing low-cost foreign currency financing.

What experts say

Speaking to TBS, economists and business leaders have welcomed the move, noting that exporters are facing increasing pressure due to declining global demand and rising production costs. They believe the new facility will help improve liquidity, reduce financing costs, and encourage investment.

However, experts have also highlighted risks. If export earnings are not repatriated, loan recovery could become difficult. In addition, exchange rate fluctuations could increase the repayment burden in local currency terms if the taka depreciates.

Mahmud Hassan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association, said at a time when the country's export earnings are consistently declining, such an initiative to bolster export capacity and support exporters is a highly positive step. However, he noted that the interest rate for these loans should be lower than 8%.

"Currently, when borrowing in dollars from the Bill Transformation Fund and the Technological Development Fund, the interest rate is 5%. Therefore, it is only logical that the interest rate for loans from offshore banking be set at 6% or 7%," he argued.

Syed Mahbubur Rahman, managing director and CEO of Mutual Trust Bank, said exporters would naturally benefit if working capital credit facilities were provided through offshore banking. He noted that as businesses are currently facing a crisis, the Bangladesh Bank is introducing this facility to compensate for the reduction in credit available from the Export Development Fund.

"Once this offshore banking facility is launched, instead of borrowing for back-to-back LCs, exporters will opt for these lower-interest loans. However, the significant risk here is that the exports must be executed against the orders, and the export proceeds must be repatriated to the country," he added.

While welcoming the move, Fahmida Khatun, executive director of the Centre for Policy Dialogue, advocated for a rigorous vetting process to select eligible borrowers and ensure that these loans are not misused.

"Bangladesh's foreign exchange reserves stand at approximately $30 billion. If monthly import costs average $5 billion, it is possible to cover six months of import expenses. Therefore, it is crucial to safeguard our foreign currency and ensure it is not squandered under any circumstances," she said.

Zahid Hussain, former lead economist at the World Bank's Dhaka office, also viewed the decision to lift existing restrictions on loan disbursements from offshore banking as a positive move. He added that allowing loan distribution and currency swap facilities based on banker-customer relationships is also a logical step.

"However, if there is a significant depreciation of the taka due to exchange rate fluctuations, borrowers will have to repay a higher amount in local currency terms. The resulting additional liability must be borne by the borrowers themselves. It is crucial to ensure that they do not seek incentives or assistance from the Bangladesh Bank when such situations arise," he added.

Bangladesh saw a significant decline in foreign investment in the last quarter of 2025, with net foreign direct investment (FDI) falling by 18.42% compared to the same period last year.

According to Bangladesh Bank data, net FDI inflows for the October-December 2025 quarter amounted to $108 million, down from $132.81 million in the October-December 2024 quarter.

Economists attribute the slowdown to multiple factors, particularly the overall political situation and election-related uncertainty.

Zahid Hussain, former lead economist at the World Bank's Dhaka office, said, "There was no conducive environment for investment because there was uncertainty over the political settlement. At that time, it was unrealistic to expect foreign capital to flow into the country."

He noted that interim government initiatives to attract foreign investment faced resistance, further discouraging potential investors. "At that time, investors knew the interim government would not last, and there was no clear roadmap for elections. This uncertainty naturally reduced investment."

Decline in reinvested earnings

Bangladesh Bank data also shows that reinvested earnings, a key component of FDI, have decreased sharply. Over the past year, reinvested earnings dropped by 35.31%, falling to $210.74 million in the October-December 2025 quarter from $325.75 million in the same period of 2024.

Reinvested earnings refer to profits generated by foreign subsidiaries or associates that are retained and reinvested in the host country rather than repatriated as dividends. While reinvested profits create the appearance of rising investment, true FDI growth depends on new equity investment, which has remained weak.

Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue (CPD), said, "Considering the state of the economy and political environment, foreign firms have reduced reinvested earnings. At the time, there was uncertainty over whether elections would be held. Although elections were held in February, concerns remained during this quarter."

Policy and infrastructural hurdles

Economists say that, beyond political uncertainty, structural and policy-related factors have significantly hindered foreign investment in Bangladesh. Policy inconsistencies, inefficiencies in transport and logistics, and limited port cargo and container-handling capacity discourage investors, leaving the country behind its South Asian peers.

Mustafizur Rahman of the Centre for Policy Dialogue noted, "Challenges such as the single window system and high cost of doing business continue to block FDI inflows. Even if the political environment improves, investment will remain difficult unless these barriers are addressed. Investors evaluate facilities and opportunities, not just which government is in power."

A senior Bangladesh Bank official observed that private-sector investment has also slowed, signalling hesitation among local entrepreneurs alongside foreign investors. "Unless policy challenges are resolved, attracting foreign investment will remain extremely difficult," he said.

According to Bangladesh Bank data, total foreign investment – including equity, reinvested earnings, and intra-company loans – stood at $363.82 million in October-December 2025, down from $490.40 million a year earlier, underscoring persistent structural and political constraints.

The Bangladesh Securities and Exchange Commission has fined asset management company Bangladesh RACE Management PCL Tk55 lakh for failing to comply with regulatory requirements on investments in listed bonds and government treasury bonds.

The penalty follows findings of irregularities in 11 out of the 12 mutual funds managed by the company, with Tk5 lakh imposed on each non-compliant fund, according to a recent order issued by the BSEC and published on its website.

The regulator also directed the firm to deposit the fine within 30 days of the order, warning that failure to do so would trigger further action under securities laws.

The commission, in its order, noted that the penalty was imposed mainly for failing to invest at least 3% of fund portfolios in listed debt securities and at least 1% in government treasury bonds, as required by regulations.

According to the order, "as per the Commission's directive dated 23 May 2021, a mutual fund shall invest at least 3% of its portfolio value in listed debt securities within 30 June 2022 and shall at all times maintain such investment ratio in the listed debt securities."

The deadline was later extended to 30 June 2023. However, the commission found that, as of 30 June 2025, 11 of the 12 funds under RACE had less than the required 3% exposure to listed debt securities.

In a separate directive issued on 19 February 2023, the regulator mandated that market intermediaries – including asset managers, merchant bankers, portfolio managers, stock dealers and mutual funds – must invest at least 1% of their own portfolios in listed treasury bonds by 30 June 2023 to diversify risk.

The commission found that funds managed by RACE had no investment in listed treasury bonds as of 30 June 2025.

Trustees flagged repeated non-compliance

The Investment Corporation of Bangladesh, trustee of six mutual funds, repeatedly instructed RACE during trustee committee meetings in the 2024-25 financial year to comply with the 3% investment requirement in listed debt securities.

Similarly, Bangladesh General Insurance Company Limited, trustee of four other funds, flagged the issue as non-compliance on several occasions.

The regulator noted that RACE did not act on these instructions.

It is also worth noting that, following observations from the ICB, the Commission sent a letter to RACE on 28 May 2025, seeking an explanation on the matter.

As all the funds had similar observations, the Commission's relevant department issued the letter only in the name of "Exim Bank First Mutual Fund". However, RACE has yet to respond to the Commission's letter.

RACE disputes findings

In a statement issued today (6 April) on the enforcement action, RACE said it had never made any investment in Agni Systems, for which the penalties were imposed.

It added that RACE-managed funds had neither invested in nor traded shares of the company, terming the BSEC order illegal and saying it had immediately informed the regulator.

RACE also addressed the requirement to invest 3% in listed debt securities and 1% in listed treasury bonds, stating that during the relevant period its mutual funds were subject to trading restrictions, bank account freezes, and BO account suspensions, creating what it described as an "impossibility of performance".

It said, as a result, the funds were unable to execute trades, settle transactions, or rebalance portfolios, and therefore could not comply with the investment requirements.

"During this period, the Funds, being incapacitated from executing any trades, settling transactions, or undertaking portfolio rebalancing, were unable to maintain the newly introduced requirement of investing 3% in listed debt securities and 1% in listed treasury bonds," the company said in the statement.

"Accordingly, the alleged non-compliance, if any, concerning investment in debt securities and treasury bonds arises solely from regulatory actions, and not from any negligence or failure on the part of RACE or the mutual funds," it added.

The company further alleged that the regulator had repeatedly targeted RACE by imposing operational suspensions that led to such constraints.

RACE said, "It further appears from the record that BSEC has continuously been targeting RACE and imposing suspensions on its operations, which in turn created an 'impossibility of performance' situation. Thereafter, BSEC's highlighting of such non-performance and imposing penalties as justification for alleged violations of securities laws is tainted with malafide and shares arbitrariness on the part of the regulator."

At an earlier hearing on the matter, before the fines were imposed, RACE highlighted similar points to defend its position.

The company said certain measures – including restrictions and directives – had harmed both the company and the funds it manages. "We have found instances where the restrictive actions are not taken directly by BSEC, but rather BSEC instructs trustee/custodian to take the restrictive action," the company said.

RACE further argued that such continual actions were "against fundamental principles of equity and constitutional fairness in Bangladesh" and detrimental to unitholders. "These unlawful and restrictive actions, arbitrarily imposed, are exacting a heavy price on the wellbeing of the funds, especially eroding their asset value."

The company added that restrictions under trust deeds, particularly sectoral exposure limits, had affected its ability to comply with the investment requirements.

"The Trust Deed as approved by BSEC restriction had a direct and material impact on the ability to comply with the 3% listed debt and treasury bond securities requirement," it said, noting that most such securities in Bangladesh are issued by banks.

"As long as sectoral exposure remained above the 25% limit, the trust deeds prevented the funds from purchasing many of the listed debt and treasury bond securities that would have counted toward satisfying the Commission's requirement."

RACE noted it could only move towards compliance by first reducing bank-sector holdings and rebalancing portfolios within the allowed timeframe.

Listed company MK Footwear has signed a finished shoes OEM manufacturing deal with Hong Kong-based Fundrich Global Co, Limited and a separate export agreement with China's Jinjiang Akia Sports Co Ltd, marking a strong push into global markets.

According to stock exchange disclosures, the board approved the OEM deal on 6 April, though it was signed earlier on 25 March.

Trial production under the Fundrich deal will begin on 3 May, with a target of 200,000 pairs during the April–June phase as the company prepares for full-scale operations. Subject to successful completion, both parties plan to sign a five-year agreement by 1 July to secure a steady export pipeline.

For 2026-27, MK Footwear targets sales of 2.7 million pairs and export earnings of $21.6 million – up 343% from 2024-25. It aims to raise annual capacity to 5 million pairs by March 2029, with projected export turnover of $40 million, or about Tk500 crore.

The board said the partnerships would improve capacity utilisation, strengthen exports, and create shareholder value, subject to execution and compliance with contract terms. The Dhaka Stock Exchange has sought a copy of the Fundrich agreement, which the company has yet to submit, drawing investor attention.

Separately, MK Footwear signed an export deal on 24 March with Jinjiang Akia Sports, which will place a minimum annual order of 1 million pairs, subject to agreed designs and specifications, with expected export revenue of $8-10 million a year. Dedicated production capacity will be allocated, with standard terms on quality, delivery, and payment.

The expansion comes amid improved financials. In FY2024-25, revenue stood at Tk78.79 crore, while net profit rose 116% to Tk8.76 crore, partly driven by Tk6.37 crore in gains from selling shares of Legacy Footwear acquired at a lower cost.

The company earlier declared a 12% cash dividend for shareholders other than sponsors and directors for the year ended 30 June 2025.

The Dhaka stock market continued its upward momentum today, buoyed by a sharp rise in turnover and improving investor sentiment.

The benchmark index of the Dhaka Stock Exchange, DSEX, advanced by 34 points to close at 5,156, extending gains from the previous session. The blue-chip DS30 index also rose, adding 16 points to settle at 1,971, reflecting strong buying interest in fundamentally sound stocks.

Market activity saw a significant boost, with turnover surging by 27% to Tk597 crore, signalling a return of liquidity and growing investor confidence. The majority of listed securities posted gains, with 275 issues closing higher, compared to 70 decliners and 48 remaining unchanged, underscoring the strength of the rally.

According to EBL Securities, the market maintained its upward trajectory as investors showed renewed interest in beaten-down stocks, taking advantage of attractive valuations following recent corrections.

The brokerage noted that sentiment was further supported by ongoing ceasefire discussions related to the Middle East war, which helped ease global uncertainties and encouraged investors to re-enter the market.

The session began on a cautious note, with investors engaging in selective buying amid lingering concerns. However, as the trading day progressed, buying interest intensified, driven by supportive domestic cues and improving confidence. This shift in sentiment led to more decisive accumulation of stocks, ultimately pushing the indices higher by the close of trading.

Sector-wise, the pharmaceutical sector dominated trading activity, accounting for 16.8% of the total turnover, followed by the engineering sector with 13.9% and the general insurance sector with 10.8%. The strong participation across sectors suggests that the rally was broad-based rather than concentrated in a few stocks.

Among the most actively traded stocks were Lovello Ice-cream, Acme Pesticides, Khan Brothers PP Woven Bag, Techno Drugs, and Asiatic Laboratories, reflecting heightened investor interest in both large and mid-cap companies.

Most sectors ended the day in positive territory, with notable gains seen in ceramic, paper, and textile stocks, which rose 2.7%, 2.1%, and 1.8%, respectively. The food sector was the only segment to close in negative territory, albeit marginally, indicating limited profit-taking in an otherwise bullish market.

Top-performing stocks of the day included Regent Textile and Familytex, both of which gained the maximum allowable limit, followed by Lovello Ice-cream, Atlas Bangladesh, and BD Autocars, all posting strong price appreciation. On the losing side, Al-Arafah Islami Bank led the declines, followed by Uttara Finance, Sunlife Insurance, Asiatic Laboratories, and Unilever Consumer Care.

Meanwhile, the port city bourse also ended the session in positive territory, although with minor adjustments. The Selective Categories' Index and the All Share Price Index of the Chittagong Stock Exchange saw slight declines, suggesting a mixed but stable performance outside the main Dhaka market.

The Bangladesh Securities and Exchange Commission (BSEC) has approved City Bank’s subordinated bond worth Tk 1,200 crore.

In a press release yesterday, the regulator said the unsecured, non-convertible, fully paid-up, fully redeemable, and coupon-bearing bond had received the green light.

Subordinated debt is an unsecured loan or bond that ranks below senior loans or securities for claims on assets or earnings, according to Investopedia.

The bond’s coupon rate will be the reference rate plus a 3 percent margin. The reference rate is the average of the upper limit of six-month fixed deposits at private conventional banks, excluding shariah banks, foreign banks, and banks licensed after 2012.

City Bank will raise funds by issuing bonds to mutual funds, individual investors, corporates, banks, and other institutional investors through private placement. Each bond has a face value of Tk 10 lakh. The proceeds will be used to provide SME, corporate, and retail loans.

EBL Investments will act as the bond’s trustee, while City Bank Capital Resources and IDLC Investments will serve as arrangers.

The BSEC said the bond will be listed on the alternative trading board of the stock exchange.

In addition, the regulator approved the extension of approval letters for Jamuna Bank’s Tk 800 crore bond and Trust Bank’s Tk 500 crore bond. Both bonds are non-convertible, unsecured, fully redeemable, and carry a floating rate.

Following the banks’ applications, their tenures have been extended until September 30, 2026.

A conditional two-week ceasefire between the United States and Iran has led to the reopening of the Strait of Hormuz, easing concerns over global energy supplies and pushing oil prices lower.

Brent crude fell 15.9% to $92.30 a barrel, while US-traded oil dropped 16.5% to $93.80 after the announcement. Prices remain above the roughly $70 per barrel level seen before the conflict began on 28 February, says the BBC.

Under the agreement, President Donald Trump said, "I agree to suspend the bombing and attack of Iran for a period of two weeks... subject to the Islamic Republic of Iran agreeing to the COMPLETE, IMMEDIATE, and SAFE OPENING of the Strait of Hormuz."

Iran signalled conditional acceptance of the truce. Foreign Minister Abbas Araghchi said Tehran would agree to a ceasefire "if attacks against Iran are halted," adding that safe passage through the waterway "will be possible."

Asian financial markets rose following the development, with Japan's Nikkei 225 gaining 4.5% and South Korea's Kospi jumping 5.5%.

The ceasefire follows weeks of disruption to global energy markets. The Philippines declared a national energy emergency on March 24 after petrol prices doubled, while migrant workers in India were forced to leave cities due to shortages of cooking gas.

Analysts said economic considerations may have played a role in the agreement. Xavier Smith of AlphaSense said Trump was likely wary of allowing energy prices to "skyrocket," risking a "self-inflicted economic wound."

Trump's rhetoric during the conflict also drew criticism. He had threatened that "a whole civilisation will die tonight" if a deal was not reached by his deadline, prompting concern from the United Nations. The UN chief was reported to be "deeply troubled" by the remarks.

While the reopening of the Strait of Hormuz has provided short-term relief to markets, analysts said the events surrounding the ceasefire could have longer-term implications for perceptions of the United States globally.

Bangladesh Bank Governor Md Mostaqur Rahman has promised full protection to the members of the country’s shariah boards and urged them to work independently.

Recently, the BB governor met members of the newly formed Bangladesh Bank Shariah Advisory Board, representatives from almost all Islamic banks, prominent scholars, and academics to discuss the current state, challenges, and future reforms of Islamic banking in Bangladesh.

“You, the members of shariah boards, shall work independently; the central bank will provide you with full protection,” he said, referring to members of the shariah boards of Islamic banks of the country.

Rahman chaired the meeting at the central bank’s headquarters, which was also attended by the deputy governor responsible for Islamic banking regulation, executive directors, directors, and senior officials.

At the event, the governor acknowledged past money laundering incidents in Islamic banking, attributing them to weak oversight. He emphasised that Islamic banking, being asset-backed, should prevent such losses if shariah principles are properly applied.

Scholars at the meeting proposed several measures to strengthen shariah governance
He underscored that Islamic banks must operate free from political influence and focus solely on service.

Scholars at the meeting proposed several measures to strengthen shariah governance, including empowering shariah supervisory committees and secretariats to operate independently of banks’ boards.

Major investments would require approval from at least a three-member shariah subcommittee. They also recommended enacting a dedicated Islamic Banking Act, appointing a deputy governor and executive director for Islamic banking supervision, and setting mandatory shariah knowledge standards for bank executives.

To enhance transparency, proposals included annual external shariah audits, separate Core Banking Systems (CBS) for shariah-compliant operations, and a shariah governance framework with a compliance rating system modelled on Malaysia.

Scholars also suggested establishing a research centre and library on Islamic economics to position Bangladesh as a regional hub for Islamic finance studies.

Additional measures included providing liquidity support, introducing shariah-compliant money market instruments, and treating major money laundering and corruption cases as acts of treason with strict penalties.

Notable attendees included Prof Abu Bakr Rafique, Mufti Shahed Rahmani, Mohammad Manjure Elahi, and shariah representatives from Islami Bank Bangladesh, Al-Arafah Islami Bank, Standard Islami Bank, UCB, ICB Islamic Bank, Jamuna Bank, and ONE Bank.

Oil prices dived, bonds rallied and stocks surged on Wednesday after a two-week ceasefire in the Middle East spurred a relief rally as investors cheered the possible resumption of oil and gas flowing through the Strait of Hormuz.

US President Donald Trump said he agreed to suspend bombing and attacks on Iran for two weeks and that a long-term peace agreement was in progress.

Global markets have been rattled since the US and Israel attacked Iran at the end of February, leading Tehran to effectively close the Strait of Hormuz, a key waterway used to transit one-fifth of the world's oil and gas.

US crude futures CLc1 fell around 16.5% to $94 a barrel, S&P 500 futures ESc1 leapt over 2% and the dollar fell broadly, having been the haven of choice for investors during the tumult.

"Markets have been predicting that Trump was looking for an off-ramp in Iran," said Jamie Cox, managing partner at Harris Financial Group. "Today, he got one and took it."

Futures pointed to broad gains for Asia's stock markets, which have been beaten down by war and soaring energy prices, and 10-year US Treasury futures jumped about 15 ticks.

The risk-sensitive Australian dollar AUD= rose 1.3% to above $0.7070 and the euro EUR=gained 0.76% to $1.1683. Cryptocurrencies also rose.

Trump had set a late Tuesday deadline for a deal with Iran to be reached, threatening to destroy every bridge and power plant in the country if Iran did not reopen the Strait of Hormuz. Iran had said it would retaliate against US allies in the Gulf.

The six-week conflict has sent oil prices surging, stoked worries of inflation and upended the global rates outlook with countries and companies scrambling to adjust to the energy shock.

In commodities, gold prices XAU= rose over 2% to $4,812 per ounce. GOL/

The Bangladesh Energy Regulatory Commission (BERC) has once again raised the price of jet fuel used in aircraft operations, marking the third increase in less than a month.

The new rates were announced today (7 April) and is set to take effect from midnight tonight, reads a BERC notification.

Under the latest revision, the price of jet fuel for domestic flights has been increased to Tk227.08 per litre from Tk202.29 per litre, a rise of 12.26%.

For international flights, the fuel price has been raised to $1.4806 per litre from $1.3216 per litre, exempt from duties and VAT.

Earlier, on 24 March, BERC increased jet fuel prices by around 80% for domestic routes and nearly 79% for international routes in a single adjustment.

Prior to that, on 8 March, the price for domestic routes was revised from Tk95.12 per litre to Tk112.41, while international prices were raised from $0.62 to $0.7384 per litre.

Reacting to the latest hike, Novoair Managing Director Mofizur Rahman told The Business Standard that the 12% increase may appear modest in isolation, but the cumulative rise since February has been significant.

"Jet fuel prices for domestic routes were around Tk95 per litre in early February, later surging to over Tk200 – an increase of more than 100% in a short period. With the latest adjustment, the overall rise now stands at roughly 115%-116%. In that context, a 12% hike alone may not seem very significant, but the cumulative impact is substantial," he said.

He added that rising fuel costs are compounded by higher taxes. "In February, the tax component was around Tk18 per litre. Now it has increased to over Tk40 due to the higher base price," he said, noting the added pressure on airlines.

Referring to international practices, he said several countries have cut fuel taxes to cushion the impact of rising prices.

"India has significantly reduced fuel taxes, while Australia has cut them by around 50%. Such measures help airlines manage costs," he noted.

He stressed that without similar adjustments in Bangladesh, the rising cost structure could become unsustainable and would continue to push up airfares.

A decision to increase fuel prices from next month may be made following discussions at a cabinet meeting, the energy minister told parliament Tuesday, reassuring that Bangladesh holds adequate stock of fuels despite global crisis.Bangladesh stock alerts

Minister for Power, Energy and Mineral Resources Iqbal Hasan Mahmud Tuku made the statement in the House during question hour on the tenth day of the first session of the 13th National Parliament.

The session was chaired by Speaker Hafiz Uddin Ahmad.

The minister explains that there is a structured mechanism for adjusting fuel prices, which is reviewed on a monthly basis. "The final decision for the coming month will be determined at the cabinet level."

Economists and energy experts are of the view that a hike in fuel prices would have domino effect on people's living and the economy at large.

Highlighting global challenges, Tuku pointed to geopolitical instability over the Middle East and restrictions imposed by Iran on shipping through the Strait of Hormuz, which have disrupted global energy-supply chains.

"Despite these challenges," he emphasizes, "the government has ensured a steady supply of fuel from multiple sources."

Providing an update on current reserves, the minister said Bangladesh has 164,644 metric tonnes of diesel in stock, with an additional 138,000 tonnes expected to arrive by April 30. The country also holds 10,500 tons of octane and 16,000 tons of petrol, with further large shipments expected within this month.

Comparing regional trends, he notes that Pakistan has increased fuel prices by 50 percent, while Sri Lanka has introduced fuel rationing. India, Afghanistan and Nepal have also raised fuel prices. "In contrast, Bangladesh has so far kept prices stable to reduce the burden on citizens."

To support farmers during the irrigation season, the government has instructed district administrators to issue "agriculture cards" to ensure uninterrupted diesel supply.

On enforcement, the minister reaffirms government's 'zero-tolerance' policy against illegal hoarding and smuggling of fuels.

Between March 3 and April 4, authorities had conducted 342 operations nationwide, filing 2,456 cases. These drives resulted in 31 jail sentences, fines totaling Tk 12.539 million, and the recovery of approximately 4.048 million litres of fuels.

The minister also assures parliament that monitoring has been strengthened through the appointment of "tag officers" at filling stations and regular virtual meetings with district administrations.

Economists are, however, divided over the government plan to raise fuel prices from next month, arguing about a difficult tradeoff between fiscal constraints and the cost of living.

One group says the increase will disproportionately hit low- and lower-middle-income households, as higher fuel costs are likely to feed through into the prices of essential goods and services.

Rising transport and production costs could amplify inflationary pressures already felt by consumers, they alert.

Dr M. Masrur Reaz, chairman and chief executive Officer of Policy Exchange Bangladesh, says the impact would be broad-based.Bangladesh stock alerts

Higher fuel prices would raise labour and freight costs, feeding into the wider economy.

"Power and electricity costs will increase as a result of the adjustment, with multiple knock-on effects," he told The Financial Express.

He adds that irrigation and transport costs would rise sharply, placing an additional pressure on lower-income groups. Others argue that an adjustment is unavoidable, as such.

The taka edged lower against the dollar yesterday, with the weighted average interbank rate marginally rising to Tk 122.85 from Tk 122.75, at which the dollar had held steady since late March, Bangladesh Bank data showed.

The dollar rate stood at Tk 122.55 on March 9.

Trading in the interbank foreign exchange market was also thin at the start of the week, suggesting importers are not rushing to buy dollars in large quantities. Just three transactions were recorded on Sunday, totalling $4.03 million, down from $62.50 million on April 2.

The devaluation of the taka comes against a volatile global backdrop. The US-Israeli war on Iran has kept oil prices elevated above $110 a barrel, stoking inflation concerns across import-dependent economies, according to a Reuters report.

The dollar softened slightly yesterday, down 0.2 percent on the DXY index, as investors watched for any signs of progress toward a ceasefire.

Even so, the dollar remains broadly strong, underpinned by expectations that the US Federal Reserve will hold rates high through the year, according to the CME FedWatch tool cited by Reuters.

Bankers say the main concern is behaviour driven by panic.

Mirza Elias Uddin Ahmed, managing director of Jamuna Bank, said the immediate risk is panic-driven demand amid the uncertainty caused by the US-Israel war on Iran rather than any fundamental deterioration in Bangladesh’s external position.

“Fuel prices and food prices are increasing,” he noted, pointing to the potential for cost-push inflation to ripple through the economy.

“A rise in fuel prices will eventually lead to an increase in food prices.”

But he stressed that Bangladesh’s underlying trade fundamentals remain sound. While the country has recorded a dip in exports to the United States recently, the broader trajectory of remittances and export growth over the last fiscal year offered a degree of cushion.

Remittance inflows for fiscal year 2024-25 (FY25) reached $30.32 billion, up 26.81 percent year-on-year, and exports grew by 8.58 percent, reaching $48.28 billion.

Ahmed flagged a particular concern around import behaviour during periods of uncertainty. Past episodes have shown that importers tend to accelerate letter of credit (LC) payments, booking early to lock in rates, which amplifies pressure on the dollar at precisely the wrong moment.

On the structural dynamics of the exchange rate, Ahmed also said the forex reserves are under slight pressure, driven in large part by the need to import oil at elevated prices.

“The volatility is mainly stemming from the war. We have to be patient to avoid panicking. This will not last long,” he added.

Bangladesh Bank has so far maintained a buffer. Gross foreign exchange reserves stood at $34.43 billion in the latest available figures, while usable reserves under the IMF’s BPM6 methodology were $29.81 billion. Since the start of FY26, the central bank has purchased over $5 billion from the interbank market to rebuild reserves, reversing a years-long trend of dollar sales.