Finance Minister Amir Khosru Mahmud Chowdhury has unveiled a comprehensive roadmap to revitalise Bangladesh's capital market, underscoring the government's firm commitment to building a vibrant, dynamic and sustainable financial ecosystem to support long-term economic growth.

Speaking in parliament today in response to a query from Noakhali-5 lawmaker Mohammad Fakhrul Islam, the minister said the government has already incorporated specific commitments for capital market development in its election manifesto.

He underscored that a strong and efficient capital market is critical for economic expansion and long-term financing, adding that coordinated reforms led by the Bangladesh Securities and Exchange Commission are underway to achieve these objectives.

Restoring investor confidence remains central to the reform strategy, he said, with measures focused on strengthening governance, ensuring transparency and accountability, diversifying financial products, and expanding market depth. Measures are also being taken to scale up investment education nationwide.

A key priority is positioning the capital market as a major source of long-term financing. This includes efforts to develop a robust bond market, encourage fundamentally strong companies to get listed, and bring state-owned enterprises into the stock market.

The government is also planning to introduce modern financial instruments such as exchange-traded funds, sukuk (Islamic bonds), and green bonds, while improving governance in mutual funds to attract broader investor participation. Initiatives to launch commodity and financial derivatives are also in the pipeline to enhance market sophistication.

To improve market discipline, the minister said, authorities are stepping up efforts to curb irregularities and manipulation by strengthening investigation and enforcement, accelerating digital transformation, and easing market access for both local and foreign investors. Measures to protect whistleblowers and reinforce corporate governance across listed firms are also being prioritised. Strengthening corporate governance across listed companies is another key pillar of the reform agenda.

Legal reforms are progressing alongside these initiatives. The government is reviewing a draft Bangladesh Securities and Exchange Commission Act, 2025, aimed at consolidating existing laws to boost regulatory efficiency and investor protection.

A draft Capital Market Stabilisation Fund Act, 2026 is also under consideration to ensure proper management of unclaimed dividends, rights shares and IPO proceeds. New whistleblower protection rules and an updated corporate governance framework are in the works to replace the 2018 code and strengthen accountability.

Planned amendments to debt securities rules will incorporate sustainable instruments such as green, blue, orange and social bonds, reflecting a growing focus on environmentally and socially responsible financing.

The minister also highlighted efforts to expand investment education, including integrating it into school, college and university curricula, and organising nationwide training programmes for young entrepreneurs. Awareness campaigns are being rolled out at district and upazila levels, supported by digital platforms and a dedicated programme on Bangladesh Television to enhance public understanding of the capital market.

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.

The government is facing growing uncertainty over how to mobilise funds to meet mounting expenditure pressures as a surge in global fuel prices threatens to widen the fiscal gap in the upcoming budget.

Officials at the finance division say the cost of subsidies in the power and energy sectors alone could approach Tk1 lakh crore annually, driven by nearly doubled oil and gas prices in international markets amid the Middle East war.

Additional pressure is seen from increased subsidies in agriculture and fertiliser alongside spending commitments linked to the government's election pledges.

However, revenue mobilisation prospects remain weak due to sluggish economic activity, raising concerns over how the government will bridge the widening gap between income and cost.

Against this backdrop, the government's coordination council is set to meet tomorrow to review the overall situation, identify risks and outline strategies for the next fiscal year's budget.

Finance ministry officials said they had initially begun work on a budget of around Tk8.8 lakh crore to Tk9 lakh crore for FY2026, expecting a post-election rebound in investment and employment.

But the overall global situation has forced a reassessment as rising energy costs squeeze fiscal space while revenue growth remains constrained.

Officials are now considering a contractionary budget, with the size likely to be between Tk8.5 lakh crore and Tk8.6 lakh crore.

The government is expected to set a revenue target of around Tk6 lakh crore for the next FY, including approximately Tk5.3 lakh crore from the National Board of Revenue. However, concerns persist over the feasibility of this target.

The Centre for Policy Dialogue has already warned that NBR collections in the current FY may fall short of the target by about Tk1 lakh crore.

"Global economic uncertainty and structural weaknesses in revenue mobilisation have made it increasingly difficult to balance income and expenditure while delivering on election promises," a senior finance ministry official said.

He also said that the final budget size could be revised upward, potentially reaching Tk9 lakh crore, depending on the government's decisions.

The government has set a target of raising GDP growth from a provisional 3.5% this FY to 5% in the next, alongside efforts to contain inflation and boost domestic demand.

However, officials remain sceptical about achieving these targets given global perspectives.

Currently, the government has been managing subsidy pressures through spending cuts and alternative financing measures. These include reducing allocations in various sectors, issuing bonds to borrow from the private sector and utilising funds earmarked for "unforeseen expenditures."

Recent austerity measures include a ban on government vehicle purchases and restrictions on foreign travel funded by the state. While such steps have helped manage additional costs for a few months, officials warn that sustaining them over a longer period will be challenging.

"If the situation persists, adjustments in fuel and power prices may become necessary," the finance ministry official said, cautioning that such moves could further fuel inflation. This, in turn, may require higher allocations for social safety net programmes to protect low-income groups.

While initiatives like the "family card" programme have already been introduced, officials say there is limited scope to expand new schemes in the next budget. Instead, the focus will be on improving efficiency and preventing duplication in existing programmes.

Budget support from development partners is feared to decline sharply, from around $3.5 billion in FY2025 to about $1.2 billion in the current FY. Inflows may remain just above $1 billion next FY, although an additional $1.8 billion could come from the IMF under ongoing programmes.

Finance Minister Amir Khosru Mahmud Chowdhury has said the government is working towards achieving a $1 trillion economy by 2034, outlining a broad set of measures to raise income and sustain economic growth.

He made the statement today (6 April) in response to a written question from SM Jahangir Hossain, member of parliament for Dhaka-18, on the ninth day of the first session of the 13th National Parliament, with Deputy Speaker Kayser Kamal presiding.

The minister also informed parliament that the country's per capita income for the 2024–25 fiscal year stands at $2,769.

"One of the primary goals of the current government is to achieve the trillion-dollar economy milestone by 2034. To this end, the government is creating an action plan taking into consideration investment, employment, economic democratisation, creative economy, sports economy, etc," he said.

He added that the government is not focusing on a single sector to raise per capita income, but is taking a comprehensive approach that includes employment, investment, production, exports, remittance, skill development, social safety and macroeconomic stability.

The minister outlined several key steps initiated by the government to support this goal:

Employment generation and reducing unemployment: The government is giving priority to creating new employment opportunities across production, construction, services, information technology, agro-processing and small entrepreneurship sectors. Increased employment is expected to raise household income and gradually increase per capita income.
Increasing private investment and industrialisation: Measures are being taken to simplify the process of starting and expanding businesses, create an investment-friendly environment, encourage industrial establishment and increase the flow of finance into productive sectors. This is expected to generate jobs and income.
Support for small and medium enterprises: Small and medium enterprises are a major source of employment. Initiatives include simplifying access to finance, supporting new entrepreneurs, encouraging women and youth entrepreneurs and expanding market access. This is expected to strengthen local economic activity.
Increasing exports and market expansion: Efforts are underway to boost foreign income by supporting export-oriented industries, diversifying exports, exploring new markets and retaining existing ones. Higher export income is expected to increase production and employment.
Increasing remittance: Steps have been taken to enhance the skills of workers going abroad, expand overseas employment opportunities, encourage remittance through legal channels and simplify related services. This is expected to strengthen household income and the country's foreign exchange position.
Skill development and training: Technical and practical training is being expanded in line with labour market demands at home and abroad. A skilled workforce is expected to secure better employment and improve productivity.
Strengthening agriculture and rural economy: Initiatives are being taken to strengthen agricultural production, rural infrastructure, irrigation, food supply and agro-based small businesses. Increased rural income is expected to contribute significantly to overall national income.
Implementation timeline: Some of these measures are already being implemented in the current 2025-26 fiscal year, while others will be carried out in phases over the short, medium and long term, particularly in areas such as employment, investment, skill development, exports and remittance growth.

"With the goal of increasing per capita income, the government is taking steps that will increase people's income, reduce unemployment, boost production and investment, strengthen remittance and exports, and simultaneously protect the purchasing power of the common people," the finance minister said.

The country’s economic growth slowed in the second quarter of fiscal year 2025-26 as a sharp fall in industrial activity dragged down overall output, according to provisional data from the Bangladesh Bureau of Statistics (BBS).

The economy expanded 3.03 percent in the October-December quarter, down from 3.53 percent a year earlier, with industrial growth slipping to just 1.27 percent from 5.78 percent in the same period last year.

It was the slowest second-quarter expansion since FY21, when growth fell to 1.28 percent during the Covid-19 disruption.

Earlier in the fiscal year, the revised growth figure for the first quarter stood at 4.96 percent, compared with 3.91 percent in the corresponding quarter of FY25, showing that the slowdown has gathered pace as the year progressed.

At current prices, the size of the economy reached Tk 15,17,615 crore in the October-December quarter of FY26, up from Tk 13,90,147 crore in the same period a year earlier.

Zahid Hussain, former lead economist at the World Bank’s Dhaka office, said weak exports, energy constraints and political uncertainty weighed on production.

Besides, reciprocal tariffs imposed by the Trump administration affected global trade flows, hurting export-oriented manufacturing.

According to the economist, domestic disruptions like frequent street protests and demonstrations further dented output, especially in energy-intensive sectors such as ceramics.

“Manufacturing investment and production are usually slow in periods of political uncertainty,” Hussain added.

In the October-December quarter, agriculture grew 3.68 percent, up from 1.90 percent in the corresponding quarter a year earlier.

Favourable weather supported Aman rice production this year, compared to last year when flooding in parts of Noakhali region disrupted output, he said.

The services sector expanded 4.45 percent, compared with 3.48 percent in the same quarter of the previous fiscal year.

Although higher year-on-year, Hussain said that growth in the service sector usually remains above 5 percent.

According to the economist, poor law and order conditions weighed on service activities.

Mustafa K Mujeri, executive director of the Institute for Inclusive Finance and Development (InM) and former chief economist of the Bangladesh Bank, said growth has remained weak since the economic fallout from the Russia-Ukraine war.

He said the slowdown deepened in the latest quarter as both public and private spending tightened ahead of national elections in February.

Usually, the government scales back annual development programme (ADP) spending before elections, while private investors adopt a wait-and-see approach, he said.

Remittance earnings rose about 20 percent year-on-year to $8.67 billion in the second quarter, according to Bangladesh Bank data.

However, economists said the inflows have yet to translate into stronger overall growth.

Mujeri said the current quarter shows little sign of a strong rebound, citing the ongoing war in the Middle East and the risk of higher fuel prices disrupting production across sectors.

Multilateral lenders, however, expect some recovery over the full fiscal year.

The World Bank has projected the economy will expand by 4.6 percent in this fiscal year ending June 2026, despite persistent inflation, falling exports and sluggish investment.

The International Monetary Fund (IMF) expects growth to reach 4.9 percent in FY2025-26.

Industrial production in Bangladesh is facing a severe cost-push crisis as the Middle East war drives up global fuel prices, shipping tariffs, and raw material costs.

A prolonged conflict could further drive up input costs, inevitably trickling down to consumers through higher commodity prices, warn industry leaders.

Exporters, particularly in the garment sector, are already facing financial strain as they are forced to absorb higher raw material costs for orders that have already been confirmed. With global demand weakening, their ability to pass on increased costs to buyers has diminished, eroding profit margins and raising the risk of losses.

Industry insiders say the uncertainty has also triggered panic buying among importers, who are placing larger orders to secure supplies, further fuelling price hikes. In some cases, buyers have even halted new orders amid volatility in global markets.

Interviews with more than a dozen entrepreneurs in both the export and domestic sectors indicate that import costs for various raw materials and chemicals have surged by 10% to 183%.

Key increases include prices of non-cotton fabric by around 19%, polyester filament yarn by 79%, cotton yarn by 18%, chemicals by 50% to 183%, steel raw materials by 17%, clinker by 34%, plastic resin by 67%, and pharmaceutical active ingredients by approximately 30%.

Despite no official increase in domestic fuel prices, transportation costs have already risen by nearly 30%, adding further pressure on production expenses.

Khorshed Alam, chairman of Little Star Spinning Mills Limited, said the price of lyocell fibre has increased from $1.60 per kilogram before the war to $1.90, marking a rise of about 19%. Polyester fibre prices have also risen by around 28%.

Chemical prices have seen some of the sharpest increases. Saleudh Zaman Khan, managing director of NZ Apparels, said prices have risen by 50% to 183% depending on the type, while dyeing chemicals alone have increased by 40% to 50% within a month.

He also highlighted a steep rise in sulphuric acid prices – from Tk55-60 per kilogram to Tk230 within days – warning that such increases could discourage proper use of effluent treatment plants, potentially leading to increased environmental pollution.

Shamim Ahmed, president of the Bangladesh Plastic Goods Manufacturers and Exporters Association, noted that plastic resin prices have surged to $1,600 from $900 in the global market, while Bangladesh remains almost entirely dependent on imports for this key raw material.

Similar trends are evident in the cement and steel sectors. Chanchal Kumar Roy, executive director of Bangladesh Cement Manufacturers Association, said clinker prices have risen from $43 to $58 per tonne, while steel importers report prices increasing from $600 to $700 per tonne. Some importers have delayed opening letters of credit due to the higher costs.

The pharmaceutical sector is also under pressure. DH Shamim, managing director of pharmaceutical raw material importer BBCON, said that prices of almost all raw materials have increased by an average of up to 30% due to global conditions, raising production costs and putting pressure on the industry.

He noted that gas shortages and rising costs of solvents and other basic intermediates have also increased the cost of producing APIs (active pharmaceutical ingredients), ultimately pushing up overall manufacturing costs.

Although domestic fuel prices remain unchanged, manufacturers claim that transportation costs have already begun to climb in several sectors.

Khorshed Alam pointed out that truck fares between Savar and Narsingdi's Madhabpur have climbed to Tk8,500, up from the previous rate of Tk6,500.

Acute instability in supply chains

Industry stakeholders report that price hikes are being compounded by acute instability in global supply chains and order processing. Kamruzzaman Kamal, marketing director of PRAN-RFL Group, said, "We are facing a shortage of plastic raw materials and are currently sustaining our operations solely on existing pipeline stocks."

He cautioned that a prolonged war could lead to production bottlenecks as early as next month.

Saleudh Zaman Khan noted, "The supply of certain chemicals has become unavailable. The agents who previously imported and supplied us from India are now unable to continue their imports."

He added, "Since we have some stock remaining, we can sustain operations for a few more days. However, smaller firms will face production disruptions very soon."

Losses for pre-existing orders

As prices continue to surge, exporters and manufacturers with pre-existing orders are bracing for significant losses.

ABM Shamsuddin, managing director of Hannan Group, said, "As we have already finalised our export orders, it will not be possible to pass the additional costs on to the buyers. We are forced to absorb these expenses, which may result in losses given our already thin profit margins."

He added, "We anticipate that fabric prices may climb further, as suppliers are now issuing proforma invoices with extremely short validity periods, often less than seven days."

Shamim Ahmed noted, "Due to the fresh hike in raw material prices, many plastic product manufacturers will face losses because they have already accepted purchase orders. It will not be possible to collect the additional costs from the buyers."

However, he added, for new orders, it might be possible to negotiate higher prices to account for the increased costs.

Garment industry stakeholders cautioned that the cooling global demand for apparel makes it difficult to pass on the full extent of increased production costs to international buyers. This scenario is expected to place significant fresh strain on the country's RMG exporters, who are already navigating a volatile market.

The government is set to borrow an additional Tk 5,000 crore from the banking sector through a special auction of 91-day treasury bills on April 8, according to Bangladesh Bank (BB) officials.

This will be the new government’s second such off-cycle borrowing in just over a week, which will effectively push the total bank borrowing for the fiscal year 2025-26 (FY26) well past the full-year target set in the budget.

The surge in borrowing comes as the government struggles to balance rising expenditure against weak revenue mobilisation.

Spending pressures have mounted from several fronts: emergency fuel oil purchases amid elevated global energy costs linked to the US-Israeli war on Iran, new welfare initiatives including the family card scheme and farm loan waivers, and broader expansion in public outlays, said officials familiar with the matter.

Election expenditure by the interim government had also drained state funds.

At the same time, the National Board of Revenue fell short of its eight-month collection target by 28 percent, leaving a gap of Tk 71,472 crore.

According to central bank data, the government had already raised Tk 5,000 crore through a similar special auction on April 1. Combined with regular borrowing, the two tranches will effectively breach the Tk 1,04,000 crore ceiling set for banking system borrowing in the FY26 budget.

Between July last year and April 1, the interim government and the new BNP-led government had together borrowed at least Tk 1,03,526 crore, or 99.54 percent of the annual target, with nearly three months of the fiscal year still remaining.

A year earlier, net borrowing over the same period stood at Tk 27,739 crore.

Of the amount borrowed so far this fiscal year, Tk 17,386 crore came from the central bank directly, Tk 71,575 crore from commercial banks, and Tk 9,564 crore from non-bank sources.

As per the FY26 budget, borrowing targets from non-banking systems and foreign sources were set at Tk 21,000 crore and Tk 96,000 crore respectively.

Analysts note that borrowing directly from the central bank carries particular inflation risks. However, a structural factor has enabled the current pace of commercial bank borrowing: anaemic private sector credit demand.

Private sector credit growth fell to a decade-low of 6.03 percent in January and remained unchanged in February, BB data show. With few private borrowers, commercial banks have been willing to lend to the government instead.

“The government generally borrows through special treasury bills when its demand for funds increases,” said Md Ezazul Islam, director general of the Bangladesh Institute of Bank Management. “Weak revenue collection could also be driving the special auction.”

The government finances budget deficits and public expenditure by issuing treasury bills – short-term instruments – and bonds for longer tenors. These are sold through the central bank to commercial banks, financial institutions, and individual investors, and are considered low-risk investments.

With banking system borrowing already at the annual ceiling and the fiscal year not yet done, economists warn the trajectory raises fresh concerns about inflation, crowding out of private investment, and longer-term fiscal sustainability.

Inflation eased to 8.71 percent in March, offering slight relief to consumers, but analysts warn that prices may remain sticky in the coming months as the US-Israel war on Iran drives up costs and disrupts supply chains.

Food price inflation fell to 8.24 percent from 9.3 percent the previous month, according to data released yesterday by the Bangladesh Bureau of Statistics. Non-food inflation, however, edged up to 9.09 percent from 9.01 percent in February.

The moderation follows a spike to 9.13 percent in February, a ten-month high, when higher food prices ahead of Ramadan and increased election-related spending fuelled demand, pushing the Consumer Price Index.

Md Deen Islam, professor of economics at Dhaka University, said, “Food prices carry a large weight in the consumer basket, and the decline in inflation might be driven mainly by a moderation in food prices.”

Three factors -- improved supply of food due to no major climate shock, the lagged effects of relatively tighter monetary policy, and subdued aggregate demand -- may have helped contain overall price increases, he added.

However, the persistence and slight increase in non-food inflation to 9.09 percent signal that underlying cost pressures in the economy remain strong, noted the professor.

“Non-food components such as energy, transport, and imported goods continue to be affected by exchange rate depreciation and elevated global prices,” he said.

Bangladesh has been grappling with stubborn inflation for more than three years, with the burden falling hardest on poor and low-income households, who spend a disproportionate share of their earnings on food.

In March, rural inflation was marginally higher at 8.72 percent compared to 8.68 percent in urban areas.

Zahid Hussain, former lead economist at the World Bank’s Dhaka office, said food inflation above 8 percent shows that price pressures persist.

“A slight easing in March is not unusual, but it does not mean inflationary pressure has disappeared,” he said.

Birupaksha Paul, professor of economics at the State University of New York, echoed the sentiment, saying the decline in inflation is not significant. “Expected inflation is on the rise and most part of it is fear driven.”

Ashikur Rahman, principal economist at the Policy Research Institute (PRI), said the March moderation should be read with caution.

“The spike observed in February was largely driven by a temporary surge in consumption, typically associated with heightened political and electoral activity.

“Such demand-side pressures tend to be short-lived, and the subsequent correction in March reflects the dissipation of this transient effect rather than a structural easing of inflationary pressures,” he said.

The economist pointed out that the broader inflation outlook remains fragile. Rising global fuel costs from the Middle East conflict could force adjustments in administered energy prices, with direct and second-round effects on transport, production, and food supply chains.

Besides, he added, “Supply chain disruptions stemming from the conflict could elevate import costs, particularly for essential commodities, thereby feeding into domestic inflation.”

Hussain, meanwhile, noted that government-set fuel prices remained unchanged, with even an expected April adjustment deferred. “If fuel prices had been adjusted at the pump level, the impact would have shown up in the CPI,” he said. “But the impact is inevitable.”

For instance, he pointed out that the exchange rate already saw an impact in March. In the interbank market, the rate increased by nearly one taka. But the effect of that on import prices will take time -- likely showing up in April -- because payments for March imports were largely made earlier.

Prof Islam said the divergence between declining food inflation and rising non-food inflation suggests the recent improvement is narrow and not yet indicative of a broad-based disinflation.

He expects inflation to remain relatively sticky in the near term, with the Middle East conflict posing a significant upside risk.

In this context, PRI’s Rahman said macroeconomic management must stay vigilant.

He backed Bangladesh Bank’s contractionary monetary policy stance as “necessary to contain demand-side pressures,” but added that monetary policy alone would not suffice.

“Complementary fiscal discipline and targeted supply-side interventions, particularly to stabilise food markets, will be critical in anchoring inflation expectations and safeguarding macroeconomic stability in the months ahead,” he said.

OPEC+ agreed ‌on Sunday to raise its oil output quotas by 206,000 barrels per day for May, a modest rise that will largely exist on paper as its key members are unable to raise production due to the US-Israeli war with Iran.

The war has effectively shut the Strait of Hormuz - the world's most important oil route - since the end of February and cut ​exports from OPEC+ members Saudi Arabia, the UAE, Kuwait and Iraq, the only countries in the group which were able to significantly raise ​production even before the conflict began.

Crude prices have surged to a four-year high close to $120 a barrel, translating into soaring ⁠prices for transport fuels which are pressuring consumers and businesses across the globe, and triggering government action to conserve supplies.

The OPEC+ quota increase of 206,000 bpd ​represents less than 2% of the supply disrupted by the Hormuz closure, but it signals readiness to raise output once the waterway reopens, OPEC+ sources have said. Consultancy ​Energy Aspects called the increase "academic" as long as disruptions in the strait persist.

"In reality it adds very few barrels to the market," said Jorge Leon, a former OPEC official who now works as head of geopolitical analysis at Rystad Energy.

"When the Strait of Hormuz is closed additional barrels from OPEC+ become largely irrelevant."

OPEC+ CONCERNED ABOUT ATTACKS ON ENERGY ASSETS

Eight members of ​OPEC+ agreed to the increase in May quotas at a virtual meeting on Sunday, OPEC+ said in a statement.

Besides the disruptions affecting Gulf members, others ​such as Russia are unable to increase output - in Moscow's case due to Western sanctions and damage to infrastructure inflicted during the war with Ukraine.

Inside the Gulf, damage to infrastructure from ‌missile and ⁠drone attacks has also been severe. Several Gulf officials have said it would take months to resume normal operations and reach production targets even if the war stopped and Hormuz reopened immediately.

A separate OPEC+ panel that also met on Sunday, called the Joint Ministerial Monitoring Committee, expressed concern about attacks on energy assets, saying they were expensive and time-consuming to repair and so have an impact on supply, OPEC+ said in a statement.

Two months into the Iran war, and the feds, still on the sidelines, are waiting—the riskiest strategy of all.

Iran said on Saturday Iraq was from any ​restrictions to transit Hormuz, and shipping ​data on Sunday showed a tanker ⁠loaded with Iraqi crude passing through the strait. Still, it remains to be seen if more vessels will take the risk involved, a source close to the issue said.

WAR CAUSES WORLD'S WORST OIL SUPPLY DISRUPTION

May's OPEC+ increase is the ​same as the eight members had agreed for April at their last meeting held on March 1, just as the ​war began to disrupt ⁠oil flows.

A month later, the largest oil supply disruption on record is estimated to have removed as many as 12 to 15 million bpd or up to 15% of global supply.

Oil prices could spike above $150 - an all-time high - if flows via Hormuz remain disrupted into mid-May, JPMorgan said on Thursday.

OPEC+ groups 22 members including Iran. In recent years ⁠only the ​eight countries meeting on Sunday have been involved in monthly production decisions, and they started in ​2025 to unwind previously agreed output cuts to regain market share.

The eight raised production quotas by about 2.9 million bpd from April 2025 through December 2025, before pausing increases for January to ​March 2026.

The eight hold their next meeting on May 3.

Crude oil prices opened higher on Monday, with US benchmark West Texas Intermediate up 1.86 percent to $113.62 a barrel, as the war in the Middle East continues to squeeze global energy supplies.

North Sea Brent crude was also higher at the week's market opening, climbing 1.16 percent to $110.30 a barrel.

President Donald Trump has set a Tuesday deadline for Iran to end the war and reopen shipping in the critical Strait of Hormuz waterway, threatening in an expletive-laden social media post Sunday to strike the country's power plants and bridges if it did not comply.

"Tuesday will be Power Plant Day, and Bridge Day, all wrapped up in one, in Iran. There will be nothing like it!!!" Trump wrote on his Truth Social platform, before later telling Fox News he thought there was a "good chance" Iran would agree to a deal on Monday.

The war, entering its sixth week since the US and Israel first attacked Iran on February 28, has engulfed the Middle East in conflict and upended the global economy.

Iran has virtually blocked the Strait of Hormuz, through which about 20 percent of the world's oil and gas transits, sending petroleum prices skyrocketing.

The country's private sector credit growth fell to a historic low of 6.03% in February, driven by prolonged political instability and a high interest rate regime. Bankers and business leaders say that due to the Iran war, a recovery in credit growth is unlikely in the near future.

According to the latest data from the Bangladesh Bank, credit growth edged down from 6.1% in December, continuing a sharp decline from 10.13% recorded in July 2024.

Although there was a brief spike to 6.58% in November, analysts attribute this to loan restructuring ahead of the 12 February national election, rather than genuine new investment in productive sectors.

In its monetary policy statement for January-June 2026, the central bank attributed the slowdown to tight monetary conditions, increased government borrowing to finance the budget deficit, and subdued loan demand amid ongoing uncertainty over new investment decisions.

Sohail RK Hussain, Managing Director of Bank Asia PLC, told TBS, "There was an election in early February. After the election, when the government began focusing on private sector growth, the unexpected challenge of the Iran war emerged."

He added, "Our investment outlook now largely depends on when the war ends. Even if the war stops now, credit growth will not recover for the next few months."

"The biggest challenge for businesses at the moment is energy. Importing fuel at competitive prices will raise costs, putting pressure on businesses. This may require further increases in interest rates to control inflation."

"Overall, the coming months will be quite challenging – particularly in terms of inflation, rising dollar exchange rates, and demand for export products."

Private credit growth dips to record low at 6%

The decline has been consistent in recent months, with growth recorded at 6.29% in September, 6.35% in August, 6.52% in July, 6.40% in June, 7.17% in May, and 7.5% in April. In contrast, private sector credit growth stood at 10.13% in July 2024 before dropping sharply following the political transition in August.

Newly appointed central bank Governor Md Mostaqur Rahman has indicated that policy support will be introduced to revive private sector lending and restore economic momentum.

On his first day in office, he said lending rates would be gradually reduced to encourage investment, and reopening closed factories and businesses would be essential to revitalise economic activity-signalling a possible shift away from the prolonged contractionary monetary stance.

However, despite the governor's assurance of lowering lending rates, the central bank has not yet taken steps to reduce policy rates due to new challenges such as the Iran war.

A deputy managing director of Sonali Bank, speaking anonymously, told TBS that investment had remained low due to prolonged political uncertainty. Although credit growth was expected to rise under an elected government, the war has introduced fresh uncertainty.

He said, "Businesses want to invest, but there is no assurance of energy supply. The government's current method of procuring fuel is also costly, which will increase investment costs. At the same time, banks' loan recovery situation is very weak. Many clients have rescheduled loans under policy support, creating pressure on cash flow and reducing the capacity to issue new loans."

Syed Mahbubur Rahman told TBS that banks are currently lending at around 11% interest while paying similar rates on deposits, leaving very thin margins.

He noted that although high lending rates are a constraint, investors prioritise reliable infrastructure – such as gas, electricity, and port facilities – over financing conditions.

Persistent energy shortages and infrastructure bottlenecks, he said, have prevented both expansion by existing businesses and entry by new investors.

Tight monetary policy strains banking sector, slows deposit and credit growth: Planning Commission report

A major factor behind the slowdown in credit growth has been increased government borrowing from banks. Between July and 19 March of the 2025-26 fiscal year, net credit to the government reached Tk98,000 crore, equivalent to 94.73% of the revised annual target of Tk1.18 lakh crore.

Banks are also struggling with rising non-performing loans, which climbed to a record Tk5.57 lakh crore by the end of December 2025 – about one-third of total outstanding loans.

High default levels have weakened bank capital positions, increased provisioning requirements, and made lenders more cautious in approving new loans.

Liquidity pressures and slow deposit growth have further constrained lending capacity. In an effort to curb inflation, the central bank earlier raised its policy rate to 10%, pushing commercial lending rates close to 13.5% and discouraging businesses – especially small and medium enterprises – from taking new loans.

The effects of weak credit growth are increasingly visible across the economy. Imports of capital machinery have declined, signalling slower industrial expansion, while reduced investment has dampened money circulation. Many factories are operating below capacity, consumer demand remains weak, and private sector job creation has slowed.

As Bangladesh moves towards its scheduled graduation from Least Developed Country (LDC) status on 24 November 2026, a new assessment highlights significant risks and structural vulnerabilities that could undermine a smooth transition.

While Bangladesh meets the graduation criteria, it is not fully prepared for a sustainable post-LDC phase due to long-standing issues such as loss of trade preferences, macroeconomic pressures, fiscal and financial vulnerabilities, and institutional and implementation weaknesses, the UN-sponsored assessment finds.

With significant readiness gaps remaining, the 2026 graduation could disrupt development gains, making the coming months crucial for policy action and decision-making, concludes the Bangladesh Graduation Readiness Assessment, conducted by the UN Office of the High Representative for LDCs.

The report was discussed at a stakeholders' meeting today (5 April) at the National Economic Council auditorium in Sher-e-Banglanagar, attended by ministers, trade diplomats, and representatives from the private sector and international agencies.

Speaking as chief guest, Finance and Planning Minister Amir Khosru Mahmud Chowdhury said the country is not yet fully prepared to achieve this goal. Key challenges include pressures from foreign and domestic debt, the high cost of borrowing, and weaknesses in overall financial management.

The minister added that the current global energy crisis and disruptions in international supply chains could place further strain on Bangladesh's economy. "The impact will extend beyond the energy sector, affecting markets for food and other goods and driving up inflation, which is already a global concern."

He further said that while fuel prices have surged worldwide, Bangladesh has so far kept them relatively under control, though the government cannot maintain this indefinitely.

"Being an elected government, we are trying to avoid placing sudden extra burdens on the people. Yet if financial pressures continue and government resources are drained, the ultimate cost will fall on citizens. Economic decisions must therefore be taken with extreme caution, balancing public welfare with long-term stability of the economy," he added.

Months before the Middle East conflict, Bangladesh formally requested a three-year extension of its preparatory period to November 2029 under the Enhanced Monitoring Mechanism.

It also sought an independent Graduation Readiness Assessment from the UN Office of the High Representative for LDCs, Landlocked Developing Countries, and Small Island Developing States, which commissioned the report.

'Past five years consumed by crisis management'

Economists Daniel Gay and MA Razzaque presented the report's key findings, highlighting the external and domestic crises Bangladesh faced during the five-year preparatory period from 2021.

These included the Rohingya refugee crisis, the Covid-19 pandemic, the Russia-Ukraine war, the July 2024 political transition, inflation, fiscal stress, falling investment, and rising debt.

Rather than a period of strategic preparation, the report notes, the past five years were dominated by crisis management, economic stabilisation, and political survival. It adds that the Middle East crisis has further disrupted supply chains, caused energy price volatility, and raised risks in remittance inflows.

The assessment identifies six critical vulnerabilities. Chief among them is potential loss of preferential access to the European Union market, which accounts for 44% of Bangladesh's exports.

An extension or postponement of graduation for around three years would allow time to strengthen key economic fundamentals.
Amir Khosru Mahmud Chowdhury, finance minister

Under the GSP+ scheme beyond 2029, apparel exports could face 12% tariffs, compared with zero-duty access now, leaving Bangladesh at a disadvantage versus competitors like Vietnam and India.

The report also flags a deepening banking sector crisis, with NPLs reaching 35% of total credit by September 2025, weakening the financial sector's ability to support investment.

Fiscal pressures are mounting, with government revenue at just 6.8% of GDP and debt servicing consuming about 31% of revenue. The IMF and World Bank have already classified Bangladesh's debt distress risk as "moderate," the report mentions.

Structural competitiveness challenges persist, including logistics costs around 16% of GDP, port congestion, customs inefficiencies, and energy shortages that raise production costs. Implementation capacity remains weak, with slow progress on the government's transition strategy due to limited coordination and administrative strain.

Social pressures are rising as well. Inflation has pushed an estimated 90 lakh people into poverty, raising the poverty rate to over 21.2% in 2025 from 18.7% in 2022. Employment fell by 19 lakh between 2023 and 2024, disproportionately affecting women and highlighting a fragile labour market.

Given these challenges, the UN Committee for Development Policy allows for possible deferral under exceptional circumstances, citing General Assembly resolution 67/221 (2012), which stresses that graduation "should not disrupt the development progress achieved" by a country.

Govt waiting for UN CDP's response

Earlier, the government formally requested a three-year extension, signalling that while Bangladesh meets the formal criteria for graduation, the challenge lies in managing the transition.

According to the Economic Relations Division (ERD), a clear process governs any decision on postponing graduation. First, the UN Committee for Development Policy (CDP) evaluates whether an extension is warranted. If so, the CDP submits its recommendation to the UN Economic and Social Council (ECOSOC). After review and approval by ECOSOC, the matter goes to the UN General Assembly for final endorsement.

ERD sources said the CDP has not yet issued a final assessment. While it was initially expected in March, the report has now been delayed to May. A key ECOSOC meeting on 10-11 June may discuss Bangladesh's request, where preliminary decisions or recommendations could emerge.

UN Under-Secretary-General and High Representative for LDCs Rabab Fatima said the request is under CDP review. "Once the technical assessment is complete, CDP will submit recommendations to ECOSOC, which will form the basis for a UN General Assembly decision."

ERD Secretary Shahriar Kader Siddiky said the extension request does not indicate a change in graduation ambition, but is a strategic measure to ensure a smooth, sustainable, and irreversible transition.

Govt 'firefighting' to manage daily crises: Khosru

Endorsing the identified vulnerabilities, Minister Amir Khosru said Bangladesh is currently navigating a complex economic situation, where the government is largely "firefighting" to manage daily crises.

He added that the government inherited an economy where all key macroeconomic indicators were in decline. "We are simply fighting to salvage the economy," he said.

The government views capacity building as the most critical factor for navigating this crisis, he said, claiming the policies outlined in the BNP manifesto have been explicitly aligned with this approach.

"If these policies are implemented effectively and on schedule, the economy can gradually be strengthened on a solid foundation, making it possible to prepare for LDC graduation," said the minister.

He also said that an extension or postponement of graduation – around three years – would allow time to strengthen key economic fundamentals.

"If necessary reforms, capacity building, and economic stabilisation can be achieved during this time, graduation will become a realistic and sustainable goal.

Commerce Minister Khandakar Abdul Muktadir highlighted prudent debt management and expanding the tax base as essential to regaining economic momentum.

Rashed Al Mahmud Titumir, finance and planning adviser to the prime minister, added that structural transformation, economic diversification, and productivity enhancement are crucial to achieving a "Trillion Dollar Economy" by 2034.

State Minister for Planning Zonayed Abdur Rahim Saki said the government will prioritise medium- and long-term development plans that explicitly address the challenges of LDC graduation.

The ongoing chaos over fuel has driven up truck and covered van fares by 20% to 30% on key routes, disrupting goods transportation across Chattogram, Benapole, Khulna and the northern region.

The increase has added pressure on both traders and consumers supplying essential commodities, with traders warning that higher transport costs could soon push up market prices.

In the Benapole, uncertainty in fuel supply is directly driving up transport expenses. Truck driver Abul Kasem said fares have jumped by Tk5,000 to Tk7,000 within a few days, warning that prolonged disruption could cripple their business.

Similar pressure is evident on the Khulna route, where rising transport costs for perishable goods are already feeding into the market. Watermelon trader Altaf Hossain said a 20-tonne truck that once cost Tk20,000 now requires at least Tk25,000, forcing buyers to pay more.

In the northern region, the fuel shortage has emerged as a major challenge during the peak season for transporting seasonal agricultural produce.

Muhammad Shahadat Hossain Saju, owner of a cold storage facility in Bogura, said it is now the peak potato transport season, yet vehicles cannot operate regularly. Even when they do, higher fares are unavoidable due to fuel scarcity.

The poultry sector is also beginning to feel the strain, with rising transport costs complicating market supply and demand.

Truck driver Israfil Alam, who supplies chickens to Dhaka from northern districts, said fares from Rangpur have increased from Tk18,000–19,000 to around Tk21,000.

Trader Suman Ali, who transports chillies from Bogura to Chattogram, reported a similar trend, with per-truck costs rising from Tk28,000 to between Tk35,000 and Tk37,000.

Fears of rise in essential prices

Rising transport costs amid the fuel shortage are feared to push up consumer prices, with traders warning of further increases in essential goods.

Benapole truck driver Abdus Sobhan said, "I transport one truckload at a time. I now pay Tk4,000 more than before. Owners will pass this cost onto the goods."

He added, "There is no real diesel shortage. Trucks are running with adequate fuel. Owners are using the fuel crisis to justify fare hikes."

Transport owners said irregular supply is driving costs. Azim Uddin Gazi, president of the Benapole Truck Owners' Association, said, "Petrol and octane face minor issues, but diesel is sufficient. Delays in timely supply are pushing up fares, as pumps provide only half the required fuel."

Business representatives blamed weak supply systems and hoarding. Ejaz Uddin Tipu, joint secretary of the Jashore Chamber, said, "There is no real market shortage. Some hoard fuel, straining pumps, and truck owners exploit this to raise fares."

Pumps continue rationing in Ctg

Even with scheduled depot deliveries, most Chattogram filling stations remain closed or ration fuel. Pump owners said rationing continues despite its official removal.

Bangladesh Petroleum Corporation (BPC) confirmed fuel arrives regularly, but pump owners said quantities are insufficient, and intermittent deliveries prevent consistent supply.

On Sunday, 13,000 litres of octane and 9,000 litres of diesel arrived at the city's QC pump, but surging demand strained stocks. At CMP Filling Station, 2,363 litres of diesel and 2,574 litres of octane were available in the afternoon, with sales ongoing.

Government vehicles at CMP received full allocation, while private motorcycles were limited to Tk500 and cars to Tk2,000. QC Filling Station followed the same rationing system. In contrast, Apollo Filling Station was fully closed, and Wasa Mor pumps operated at limited capacity.

One pump owner added, "We sell exactly what comes from the depot. We cannot turn customers away, so rationing is necessary."

Mohammad Mainuddin, member secretary of the Chattogram division of the Bangladesh Petroleum Dealers, Distributors, Agents and Petrol Pump Owners Association, told TBS, "Our stations have no fuel shortage. We sell only what dealers supply. Tag officers are deployed to maintain normal supply. The main issue is hoarding—many store excess fuel at home. Public awareness can restore normal operations."

The Bangladesh Securities and Exchange Commission (BSEC) has ordered a formal enquiry into Robi Axiata, the country's second-largest mobile network operator, over alleged financial irregularities, governance concerns and disclosure failures.

The decision was taken in the last week of March, when the Commission exercised its statutory authority to launch an investigation and appoint a dedicated enquiry team.

BSEC director and spokesman Abul Kalam told TBS that the investigation committee was formed based on specific complaints received by the regulator. He said the complaints involve possible financial irregularities and violations of laws and regulations.

The committee will closely examine financial records, compliance with securities rules, corporate governance practices, and whether any material information was concealed or misreported, Kalam said.

He added that the purpose of the investigation is to verify the facts and recommend appropriate actions based on the findings.

Shahed Alam, chief corporate and regulatory officer of Robi Axiata, said, "We are conducting all our activities in full compliance with applicable laws and regulations and will provide all necessary support to the relevant regulatory authority."

On Sunday, the company's share price fell 2.40% to Tk28.50 on the DSE.

Probe committee

In an official order, BSEC said the enquiry will focus on issues outlined in the Terms of Reference, including accounting treatment, related-party transactions, corporate governance practices, and compliance with disclosure requirements during the financial years 2021 and 2022.

The three-member enquiry committee, comprises Md Rafiqunnabi, deputy director of BSEC; Tanmoy Kumar Ghosh, assistant director of BSEC; and Gias Uddin, manager of the Dhaka Stock Exchange.

The committee has been instructed to complete the enquiry and submit its report within 60 working days from the date of the order.

Accounting and management review

One of the central areas of investigation involves alleged accounting irregularities, specifically claims of "masking", where operating expenditures were reportedly misclassified as capital expenditures in FY21 and FY22.

The regulator will examine the scale of such misclassifications, identify potential beneficiaries, and assess the overall financial impact on the company's reported performance.

The inquiry will also assess the involvement of senior management, including the chief executive officer, chief financial officer and the board audit committee, to determine whether these practices were approved, ignored or concealed.

Related-party transactions, governance

Another key focus area is conflicts of interest and related-party transactions. The BSEC will examine the dual role of Thayaparan S Sangarapillai, who served as chairman of Robi Axiata while also acting as an independent director of EDOTCO Group Sdn Bhd from 2016 to 2025.

All transactions between Robi Axiata and EDOTCO, including lease agreements, infrastructure-sharing arrangements and any share transfers, will be reviewed to determine whether they were conducted at arm's length or resulted in any value leakage to Axiata Group Berhad or its affiliates.

Corporate governance issues are also under scrutiny. The inquiry will investigate the resignations of independent directors Akhtar Sanjida Kasem and Kamran Bakr, who reportedly stepped down citing "undue interference" in board affairs.

The regulator will also review the fairness and independence of an internal inquiry process chaired by Sangarapillai, particularly in light of previous allegations against him.

The investigation will assess whether principles of natural justice, impartiality and shareholder protection were properly upheld.

Disclosure and shareholder concerns

In addition, the Commission will examine Robi Axiata's annual reports for 2021 and 2022 to determine whether there were any omissions of material information.

Compliance relating to the disclosure of material non-operating income and expenses, as well as transparency in related-party transactions, will also be reviewed.

Shareholder concerns raised at the company's last annual general meeting will be part of the enquiry, particularly issues related to expenses on legal proceedings and forensic audit costs, as well as the company's alleged lack of response to investor queries.

Financial performance

Robi Axiata posted a net profit of Tk937 crore in 2025, its first annual profit since listing on the stock exchange five years ago. The earnings represent a 33.3% year-on-year increase compared to 2024.

Riding on improved profitability, the board recommended a 17.5% cash dividend, or Tk1.75 per share, the highest since its market debut in 2020.

The proposed payout accounts for 97.8% of the company's total profit for the year. In 2024, Robi Axiata declared a 15% cash dividend.

Market stakeholders have urged the Bangladesh Securities and Exchange Commission (BSEC) to expedite the listing of profitable state-owned enterprises, calling on the regulator to present the issue to the newly elected government as a priority to help revive the struggling capital market.

The call came during a monthly coordination meeting held at the commission's headquarters today (5 April), where senior officials, including Chairman Khondoker Rashed Maqsood and other commissioners, met with representatives from various market institutions and stakeholder groups.

The meeting focused on a wide range of pressing issues affecting the country's capital market, with particular emphasis on increasing the supply of quality stocks.

Participants stressed that the prolonged absence of new listings has significantly weakened investor confidence and reduced market depth.

Although new initial public offering (IPO) regulations have already been introduced, they noted that the pipeline of fresh listings remains thin. In this context, the listing of profitable government-owned companies was identified as one of the most effective ways to inject momentum into the market.

Saiful Islam, president of the DSE Brokers Association of Bangladesh, told The Business Standard that the market has been in decline for an extended period and requires immediate intervention.

He said initiatives to list state-owned enterprises had been taken during the interim government's tenure, with some preparatory work already completed. With a new government now in place, he urged the regulator to act swiftly to move the process forward.

Highlighting a specific case, he pointed to Central Depository Bangladesh Limited as a profitable institution that continues to generate strong earnings from its core operations but remains unlisted.

He called for expedited steps to bring the company to the market, saying such a move would enhance transparency and offer investors access to a fundamentally strong entity.

Governance reforms, market development

Another key issue raised at the meeting was the long-pending review of the demutualisation scheme of the Dhaka Stock Exchange.

Stakeholders expressed concern over the lack of visible progress in revisiting the framework, which they said is essential for improving governance and operational efficiency at the bourse.

In response, the BSEC chairman assured participants that the commission would take necessary steps in this regard.

The discussion also covered broader reform initiatives, including efforts to upgrade the market from frontier to emerging status, implementation of electronic know-your-customer (e-KYC) systems, and plans to launch a commodity exchange.

Participants stressed the need for stronger coordination among market institutions, improved corporate governance, and stricter measures to prevent manipulation and irregularities.

They also discussed expanding investor education programmes, introducing new financial products, and ensuring the accuracy of price-sensitive information disclosures.

Addressing investor protection, stakeholders highlighted the importance of compensating affected investors through dedicated protection funds, as well as resolving issues related to negative equity and unrealised losses.

During the meeting, the BSEC Chairman Maqsood reiterated the commission's commitment to ongoing reforms, noting that major regulatory frameworks – including new margin rules, mutual fund regulations, and public offering rules – have already been introduced.

He added that corporate governance regulations are in the pipeline and will be finalised soon.

The chairman said bringing large public-interest companies into the capital market remains a top priority for the regulator, but achieving this would require strong government support and cooperation from all relevant stakeholders.

The Opec+ oil cartel agreed on Sunday to again increase oil production quotas, while warning that repairing energy facilities, such as those damaged in the Middle East war, is “costly and takes a long time”.

For the second month in a row, Opec+ countries -- which include key oil producers Russia and Saudi Arabia, as well as several Gulf countries that have been targets of Iranian airstrikes -- agreed to raise quotas by 206,000 barrels per day (bpd) from May.

But Opec+ warned that damage to energy infrastructure increases oil market volatility, potentially hitting global supplies well into the future.

Its statement also stressed “the critical importance of safeguarding international maritime routes to ensure the uninterrupted flow of energy”.

The text did not mention the Iran war directly, but the conflict -- which has roiled global energy markets and caused prices to surge -- clearly weighed on the decision.

The United States and Israel began striking Iran on February 28, and Tehran has retaliated by striking targets across the region.

In addition to hitting key energy facilities in a number of neighbouring countries, Iran has virtually halted ship traffic through the vital Strait of Hormuz by threatening to attack tankers passing without permission.

That has badly restricted exports from the Gulf region, and raised questions about whether oil can reach global markets even if Opec+ members in the region manage to ramp up production.

Before the war, about a fifth of global oil and liquefied natural gas (LNG) passed through the Strait.

Ukraine has also been striking Russian oil industry facilities as it seeks to fight back against Moscow’s ongoing invasion.

Last month, the eight-strong V8 (Voluntary Eight) group in the Opec+ cartel also raised production quotas by 206,000 bpd.

On Sunday, the V8 said in a statement that “any actions undermining energy supply security, whether through attacks on infrastructure or disruption of international maritime routes, increase market volatility” and make it more difficult for Opec+ to manage global prices.

The eight countries -- Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman -- praised members that managed to find alternate exports routes to deliver oil, “which have contributed to reducing market volatility”.

Prime Bank PLC has reached a major milestone by becoming the first bank in Bangladesh to offer a consumer loan secured against treasury bonds.

The initiative marks a significant development in the country's banking and financial services sector.

After receiving guidance from Bangladesh Bank on Thursday evening, 2 April 2026, the bank completed the first loan disbursement by the following morning. The swift turnaround, the bank said, reflects strong operational coordination and execution capacity across the institution.

The new product enables customers to unlock liquidity by borrowing against their treasury bond holdings, allowing them to meet financial needs without selling their investments. According to the bank, the offering reflects Prime Bank's commitment to delivering modern, customer-focused financial solutions in response to evolving market demand.

The rollout of the initiative was made possible through close collaboration among several teams, including Gulshan Branch, the Credit Administration Division, Credit Risk Management, and the Wealth Management unit. Their coordinated efforts ensured a smooth and rapid approval and disbursement process.

Additional Managing Director of Prime Bank PLC M Nazeem A Choudhury said, "This achievement reflects our capacity to innovate within regulatory frameworks while delivering meaningful value to our customers. We remain focused on introducing progressive financial solutions that enhance accessibility, flexibility and efficiency."

With this development, Prime Bank continues to strengthen its reputation as a forward-looking financial institution, setting new standards in innovation and contributing to the evolution of Bangladesh's banking landscape.

Bangladesh’s stock market fell to a nearly two-and-a-half-month low yesterday, with the benchmark index dropping more than 2 percent amid rising concerns over global energy prices following escalating tensions in the Middle East.

The DSEX, the prime index of the Dhaka Stock Exchange, declined by 107.46 points, or 2.06 percent, to close at 5,112.27. The index last hovered near this level on January 26.

Market participants attributed the downturn to growing uncertainty surrounding the conflict involving the United States, Israel and Iran, which has heightened fears of prolonged energy price volatility.

“As tensions escalated over the weekend, investors became concerned that energy prices could rise further or remain elevated for a longer period,” said Asif Khan, chairman of EDGE AMC (Asset Management Company) Limited.

The other two indices on the DSE also declined.

The shariah-based DSES fell 18.47 points, or 1.74 percent, to 1,041.10, while the blue-chip DS30 index dropped 35.02 points, or 1.77 percent, to 1,945.34.

Turnover stood at Tk 512 crore, down 18.21 percent from the previous trading session. The pharmaceuticals sector dominated trading, accounting for 17.1 percent of total turnover.

Block market transactions amounted to Tk 17.51 crore, representing 3.4 percent of the day’s turnover.

Among the major turnover leaders, Asiatic Laboratories Limited fell 4.52 percent, followed by ACME Pesticides Limited (3.81 percent), Summit Alliance Port Limited (0.99 percent), and Dominage Steel Building System Limited (1.35 percent).

Out of the traded issues, only 25 advanced, while 354 declined and the rest remained unchanged.

According to a daily market update by Shanta Securities, the downturn was driven by negative movements in travel and leisure, banking, and paper and printing stocks, despite gains in debentures, information technology and miscellaneous sectors.

No sector ended in positive territory, with mutual funds, ceramics and jute among the worst performers, said UCB Stock Brokerage Limited.

At the Chittagong Stock Exchange, the CASPI index also declined, shedding 228.40 points, or 1.55 percent, to close at 14,473.09.

Trust Bank PLC has launched its distribution finance facility for TAP distributors, dealers, and merchants at the bank's head office in Jahangir Gate.

The programme was attended by the Managing Director & CEO of Trust Bank PLC, Ahsan Zaman Chowdhury, in the presence of senior officials from both organisations.

The facility will provide working capital financing to TAP's distribution network, with the aim of promoting digital financial services and supporting the expansion of the SME sector across Bangladesh.

Inflow of remittances witnessed a year-on-year growth of 425.3 percent reaching US$339 million in the first four days of April, according to the latest data of Bangladesh Bank (BB) issued.

Last year, during the same period, the country’s remittance inflow was $65 million.

During the July to April 5, 2026 of the current fiscal year, expatriates sent remittances of $26,548 million, which was $21,850 million during the same period of the previous fiscal year.