Power Grid Bangladesh PLC is set to see a significant rise in revenue following a decision by the Bangladesh Energy Regulatory Commission (BERC) to increase electricity transmission tariffs, widely known as wheeling charges.

In a price-sensitive disclosure filed with the Dhaka Stock Exchange (DSE) today (4 June), the state-run transmission company said the revised tariff will come into effect from the billing month of June 2026.

The new rates reflect an increase of nearly 23–24% across all voltage levels, marking a substantial upward revision in transmission income. Following the disclosure, its share price rose 1.45% to close at Tk35.10.

Power Grid Bangladesh estimates that the tariff revision could increase its annual transmission revenue by around Tk700 crore, although the final impact will depend on overall electricity generation and demand conditions, the disclosure said.

The company generates the bulk of its revenue by transmitting electricity through the national grid to distribution companies. The revised wheeling charges will therefore have a direct impact on its earnings, as these tariffs are paid by distribution utilities for using the transmission network.

Under the new structure, the wheeling charge for 230 kV lines has been raised from Tk0.3057 per kilowatt-hour to Tk0.3789, while the rate for 132 kV has risen to Tk0.3825 from Tk0.3086. Similarly, the 33 kV rate has been increased to Tk0.3897 from Tk0.3184.

Market observers view the development as a positive signal for the company's financial health, as higher wheeling charges are expected to strengthen cash flows and improve earnings stability.

In the first nine months of the current fiscal year, Power Grid reported revenue of Tk2,386 crore - a slight increase - along with a profit of Tk570 crore.

During the same period of the previous fiscal year, its revenue stood at Tk2,218 crore, and the company incurred a loss of Tk31 crore due to foreign currency fluctuations, as it services its foreign loans in foreign currency.

Government high-ups and newly appointed commissioners of the securities regulator have vowed a complete overhaul of the secondary market by addressing key concerns that are hampering market growth.

"Our goal is not just to fix the market but to build it into a regional powerhouse, a goal that is mathematically feasible," said the Prime Minister's special assistant Tanvir Ghani while speaking at a press conference on Thursday.

Alongside him, Nazma Mobarek, secretary of the Financial Institutions Division, also spoke at the briefing held at the office of the Bangladesh Securities and Exchange Commission (BSEC).

Newly appointed BSEC Chairman Masud Khan and three commissioners - Md. Nafeez Al Tarik, Tanvir Habib Rahman and Nahid Mahtab - were also present.

Achieving the target requires resolution of issues regarding mutual funds and issuers, as well as fostering trust among intermediaries.

"We intend to implement self-regulation, which is a standard system in capital markets globally, as much as possible," said Mr Ghani.

He said an economy could not grow by being solely dependent on the banking sector. "The capital market is the only way forward for Bangladesh, and we must introduce a wide variety of financial products."

Mr Ghani also said foreign investors prioritise two things: liquidity and documentation. "They must be able to trust the data they read and compare it with neighbouring countries' using international standards."

FID Secretary Mobarek said the capital market is very important for the economy to be productive.

While the country's capital market has remained constrained for many reasons, long-term financing through banks has dragged them into trouble. At the same time, savings of ordinary people are not being channelled into productive sectors.

"We are all optimistic that the country's capital market will gain momentum," through restoration of discipline by the new commission, Ms Mobarek added.

Newly appointed BSEC Commissioner Nafeez Al Tarik said they took up the responsibility at a time when the market was facing an acute crisis of investor trust.

"We must ask ourselves what kind of capital market new generations would want.

"They are unlikely to want the market of the past; instead, they will seek a technology-dependent, free and fair capital market," said Mr Tarik, adding that the new commission would work toward building that market and seek everyone's cooperation.

Commissioner Nahid Mahtab said one of their most important responsibilities as a regulatory body was to ensure that existing laws and regulations were properly implemented and enforced.

Commissioner Tanvir Habib Rahman said he expected Bangladesh to adopt the best practices of London-based stock markets. "We seek the cooperation of all stakeholders."

The country's premier stock market extended its post-Eid rally last week, with the benchmark DSEX index soaring 210 points to close at a three-month high of 5,475 amid growing investor optimism over planned reforms in the capital market.

The sustained upward trend added Tk11,156 crore to the market capitalisation of the Dhaka Stock Exchange (DSE) in just five trading sessions, driven largely by bargain hunting in undervalued stocks and expectations of regulatory restructuring.

According to the weekly market review by EBL Securities, the market maintained strong momentum throughout the week, with the benchmark index gaining more than 30 points in each trading session.

Despite concerns over recent hikes in fuel and electricity prices, investors remained focused on repeated political commitments to strengthening and developing the capital market, the brokerage said.

Investor sentiment received a further boost in the week's final session following reports of long-awaited reforms to the securities commission. The prospect of appointing experienced and professional individuals to the regulator was viewed as a positive step towards improving market oversight, transparency and integrity, according to EBL Securities.

Trading activity also picked up significantly during the week. Average daily turnover surged 45% to Tk1,156 crore, reflecting renewed investor participation.

The bullish sentiment was mirrored across other market indices. The blue-chip DS30 index advanced 73 points to close at 2,068, while the SME index gained 83 points.

Market breadth remained overwhelmingly positive, with 328 issues advancing against only 49 decliners.

Among sectors, engineering, pharmaceuticals and textiles dominated turnover. Meanwhile, services, paper and cement stocks posted the highest returns, while the jute sector was the only laggard during the week.

On the gainers' list, Sonargaon Textile and Regent Textile led the market with price appreciations of 45% and 35%, respectively.

In terms of turnover, NCC Bank, BRAC Bank and Jamuna Bank emerged as the most actively traded stocks, reflecting strong investor interest in the banking sector.

A slew of business-friendly measures, including tariff cuts on nearly 350 items, may be stipulated in the upcoming national budget in a taxation remodelling by the new government.

In a move to rationalise trade taxes, the National Board of Revenue (NBR) lately plans to reduce customs duty on around 70 items, regulatory duty on 210 items, and supplementary duty on 60 items.

The National Tariff Policy and Trade Facilitation Agreement (TFA) has been followed to rationalise the tariffs, officials say.

Revenue officials say the proposed changes are carefully designed to ensure that local manufacturers do not face undue pressure.

The items under consideration include consumer goods, spices, a wide range of ICT products, such as finished computers, monitors and laptops, as well as solar equipment, fish, meat, and raw materials for electric vehicles (EVs).

Officials say the government aims to bring the import tariffs on ICT products below 10 per cent in the upcoming budget.

A new tariff slab and HS codes are also set to be introduced to facilitate the import of electric vehicles, they add.

Dr. Masrur Reaz, founding chairman of Policy Exchange Bangladesh, says tariff rationalisation has long been a demand of industries dependent on imported raw materials.

"It is a welcome move as high import tariffs have significantly increased production costs for industries," he says.

On EVs, Dr. Reaz notes that facilitating their use would help Bangladesh meet environmental -compliance requirements.

He also points out that many ICT products subject to high import duties are not manufactured in Bangladesh.

"As we move towards a digital economy, the ICT sector should receive policy support to flourish," he adds.

A major change in VAT compliance is also expected, offering relief to businesses from the requirement of filing monthly VAT returns. From the upcoming fiscal year, businesses may be allowed to submit VAT returns on a quarterly basis instead.

In addition, source tax on the local procurement of raw materials is likely to be reduced by one-percentage point.

However, the entire amount of source tax paid would either be adjustable against tax liabilities or refundable for corporate taxpayers.

Businesses would also be allowed to claim refunds for excess taxes paid if they are unable to adjust them over three consecutive tax years. Officials say the shift towards a more business-friendly tax regime follows instructions from the Prime Minister, issued last week.

A senior tax official says a major reshuffle has been made to the NBR's budget proposals following a meeting with the Prime Minister.

"We are moving towards a more predictable tax regime by fixing tax rates for individual and corporate taxpayers for the next five years," he said.

"The government's priority is now trade facilitation rather than revenue collection through aggressive taxation measures," he adds.

Small traders welcome the proposal to introduce quarterly VAT returns as they feel it would reduce compliance burdens.

"Large companies can afford dedicated officials to maintain compliance and submit VAT returns, but that is difficult for small businesses like ours," says Solaiman Parsee, proprietor of Faial and Brothers in Old Dhaka.

The trader, who mainly imports and sells hardware products, says business hubs such as Old Dhaka are still dominated by traders who are more comfortable with manual record-keeping systems.

Speaking to The Financial Express, Metropolitan Chamber of Commerce and Industry (MCCI) President Kamran T. Chowdhury welcomed the move to simplify VAT-return submissions but called for the withdrawal of turnover tax on businesses.

"It is unjust to impose tax on turnover. It goes against the fundamental principles of taxation," he argues.

He also recommends allowing businesses to adjust or claim refunds for excess taxes paid on an annual basis, instead of waiting for three years.

The country's fruit exports have reached a record high in the first 11 months of fiscal year 2025-26, driven by rising demand from expatriate Bangladeshis for mangoes, guavas, jackfruits and other tropical fruits, according to Export Promotion Bureau (EPB) data.

The country earned $123.02 million from fruit exports between July and May of FY26, surpassing the total $67.51 million recorded in the whole of FY25. The figure marks an increase of more than 82% and the highest earnings from fruit exports in recent years.

The sector has recorded rapid growth over the past three fiscal years, with earnings of $29.24 million in FY24 and just $1.06 million in FY23.

Abdul Wahed, president of the Chapainawabganj Chamber of Commerce and Industry, said Bangladeshi fruits are currently exported mainly to the Middle East and European countries with large Bangladeshi expatriate populations.
"Most of our exports cater to expatriate communities. We have yet to penetrate the mainstream international fruit market because our compliance standards, packaging and branding are still not at the level required by global buyers," he said.

Industry stakeholders also attributed the growth to improved compliance with international food safety standards, expansion of export-oriented cultivation, and wider access to overseas markets.

EPB data show that exports under the category "other nuts, fresh or dried" accounted for the bulk of earnings, bringing in $122.18 million during the July-May period, compared to $66.05 million in FY25.

Exports of frozen fruits and nuts also rose to $439,821, while fresh fruit shipments contributed to overall growth.

Exporters said mangoes remain the country's main fruit export during the summer season, particularly in markets among expatriate communities in the United Arab Emirates, Saudi Arabia, Qatar, Oman, Kuwait, the United Kingdom and parts of Europe.

Fresh guavas and jackfruits have also gained popularity due to improved quality and competitive pricing. Demand for pineapples, litchis, bananas and other seasonal fruits has steadily increased.

Bangladeshi fruits are currently exported to destinations including the UAE, Saudi Arabia, Qatar, Oman, Kuwait, Malaysia, Singapore, the United Kingdom and several European Union countries.

EPB Director Kumkum Sultana said fruit cultivation in Bangladesh, particularly in the hill districts, has undergone a significant transformation.

"A fruit revolution is taking place in the hill regions. The scale of cultivation of fruits such as dragon fruit, cashew nuts and coffee is impressive," she said.

She added that targeted infrastructure support could further boost exports.

"If packing sheds, post-harvest treatment facilities and other basic infrastructure are expanded, exporters will be able to take greater advantage of international markets," she said.

EPB Vice Chairman Mohammad Hasan Arif said fruit exports generate high economic value as they rely largely on local raw materials.

"Unlike many other sectors, fruit production does not depend heavily on imported inputs," he said, adding that the EPB is working to encourage more farmers and entrepreneurs to enter export markets.

Industry stakeholders said investments in cold-chain systems, modern packaging facilities and improved post-harvest handling have strengthened product quality and shelf life.

They also pointed to the growing role of private agro-processing firms and contract farming in ensuring a steady supply of export-grade produce.

Logistics remains a challenge

The adoption of vapour heat treatment, pesticide residue monitoring and traceability systems has also improved buyer confidence in strict international markets.

However, exporters said logistics remain a key constraint. High air freight costs, limited cargo space during peak seasons, inadequate refrigerated transport and slow customs clearance continue to hinder growth.

Abdul Wahed said the district exported around 10,000 tonnes of mangoes last year and expects higher volumes this season, but rising freight costs remain a concern.

"Most export-related services, including quarantine certification and packaging facilities, are concentrated in Dhaka. If such facilities were available at the divisional level, it would make exports much easier and more cost-effective," he said.

He added that if freight costs can be reduced and export procedures simplified, fruit exports could grow substantially,

Industry participants expect export earnings to rise further before the end of the fiscal year as the peak mango export season continues.

Most business leaders in Bangladesh are optimistic about their medium-term revenue prospects and domestic economic growth, a survey says.

Half of the Bangladesh CEOs surveyed say they are very or extremely confident about their company's revenue growth over the next three years. The confidence is close to the global average and higher than the responses from Southeast Asia, according to the Bangladesh edition of PricewaterhouseCoopers' (PwC) 29th CEO Survey.

At the same time, nearly three in ten CEOs describe themselves as only moderately confident.

The survey suggests that Artificial intelligence (AI) is increasingly becoming a driver of business growth in Bangladesh, with one in five chief executives saying the technology has boosted company revenues and one in four reporting lower costs.

However, enterprise-wide adoption of AI remains limited.

About 40% of CEOs said their organisations have a clear AI roadmap, while fewer than one in five believe their AI tools have access to all relevant company data.

A lack of formal governance, limited investment and shortages of technical talent continue to hinder wider adoption.

AK Khan and Company Ltd Group CEO Asif Bhuiyan said, "AI at enterprise scale is no longer a side experiment; it is the backbone of how we plan to grow across sectors.

"But to move beyond pilots, Bangladeshi companies like ours must first get the basics right: a clear AI roadmap, the right data infrastructure and governance that works in our context."

PwC surveyed 45 CEOs in Bangladesh between 30 September and 10 November last year.

Impact on jobs

The survey said some junior and mid-level roles are expected to shrink as AI adoption expands, while senior positions are more likely to be augmented rather than replaced.

It highlighted the need for targeted reskilling and workforce transition strategies.

Alongside the growth of AI, Bangladeshi businesses are showing a strong appetite for diversification.

Nearly three-quarters of CEOs said their companies had entered new sectors over the past five years, almost double the global average.

The survey said the trend reflects efforts to reduce concentration risk and tap emerging opportunities in a rapidly changing economic environment.

However, the financial returns from diversification remain modest. Only 15% of CEOs said more than one-fifth of their revenue comes from new sectors, suggesting many companies are still in the early stages of expansion.

The report noted that successful reinvention requires a clear understanding of the capabilities needed to compete in new sectors and careful decisions on whether those capabilities should be developed internally, acquired or accessed through partnerships.

Despite the challenges, the survey found that Bangladeshi CEOs remain optimistic.

Many reported increasing market share and expressed confidence in domestic economic growth despite global uncertainty and inflationary pressures.

Global oil inventories are running dangerously low as a deal to re-open tanker traffic through the Strait of Hormuz has proven elusive, and industry executives and analysts warn there could be another oil price shock in the coming weeks, severe enough to upset broader financial markets.

Some fear the next move higher for oil prices would pose a risk to economic growth, bond yields and the bull market for stocks.

"We're approaching unheard of inventory levels. I mean, really, really low levels. You can debate whether that's going to hit those really low levels in two weeks or three weeks. But once you get to that point, you'll see prices shoot up," Neil Chapman, Exxon Mobil senior vice president, said at the Bernstein conference in New York on 28 May.

Chapman said that if inventory levels get much lower, dated Brent, which is used to price more than 60% of globally traded crude, could rise to $150 or $160 a barrel.

Crude inventories and strategic reserve releases have kept oil prices somewhat under control in the four months that the war with Iran has kept supplies from reaching much of the world. Crude futures have been trading below $100 a barrel despite the strait remaining effectively closed.

For days, US President Donald Trump has said a deal to reopen the strait is imminent. But so far it has been elusive, and warnings from the oil industry have gotten sharper.

If stock draws continue at their current pace, sinking global oil inventories could hit critically low levels just as summer fuel demand hits its peak, the head of the International Energy Agency's oil industry and markets division, Toril Bosoni, said on Tuesday.

"Once they (cushions) thin out, prices have to do more of the adjustment work. That means either consumers pay more or demand gets destroyed," said Mehmet Beceren, vice president and senior market strategist at Rosenberg Research, who said a tipping point could be reached by the end of June.

"Once we move into the back half of June it is likely that we see oil prices rapidly appreciate" unless the Strait of Hormuz throughput normalises to pre-conflict levels, JPMorgan's Data Assets and Alpha group predicted, citing the bank's research.

In the US, the world's largest crude producer, crude inventories including the Strategic Petroleum Reserve fell to 791 million barrels in the week to 29 May, their lowest since February 2024, the Energy Information Administration said on Wednesday.

US crude stocks are down almost 64 million barrels since the start of the war, and have fallen for eight straight weeks.

The US is in the process of releasing 172 million barrels from the SPR, part of a coordinated effort by the IEA to release a record 400 million barrels of oil to combat rising prices.

Those stock releases alongside a drop in Chinese seaborne crude imports, which in May hit the lowest level in nearly 10 years, have helped quell some of the supply shock.

"I think the risk of a second price shock is real, but the key point is that it may come from the exhaustion of buffers rather than from the initial Hormuz closure itself," Shohruh Zukhritdinov, a Dubai-based oil trader, said.

Drawdowns in US strategic petroleum reserves, fuel substitution and other factors that have limited the price spike may not be enough if the disruption drags on, analysts in JPMorgan's Data Assets and Alpha group said.

The White House did not respond to a request for comment.

Knock-on effects

Investors said that the conflict has embedded a lasting risk premium in crude, with knock-on effects for inflation, bond yields and consumer spending.

Recent events suggest a lasting structural change in energy markets, said Joseph Tanious, chief investment strategist at Northern Trust Asset Management.

"The Strait of Hormuz is now firmly established as a persistent geopolitical chokepoint," Tanious said, adding that a return to pre-war oil prices below $70 looked unlikely even if tensions eased.

As a result, he sees an uneven global impact, with Europe and Asia remaining more vulnerable to sustained energy inflation, while the US, a net exporter, is relatively better insulated.

Higher oil prices are "a modest headwind" for the US economy, said Adam Schickling, senior economist at Vanguard, thanks to domestic oil production and strong investments in artificial intelligence which have offset pressure on consumers.

Yet in a scenario where crude rises to around $120 per barrel and remains there for a year, US economic growth could slow by about 0.4 percentage points, according to Vanguard's estimates.

For households, the impact depends less on the precise level of oil prices and more on how long they stay elevated. Consumers retain some buffer, with fuel costs accounting for a smaller share of income than in previous oil shocks. But that cushion diminishes over time.

If prices remained high through the next three months as the summer driving season begins, consumer spending could slow further, said Phil Blancato, chief market strategist at Osaic.

"Consumer sentiment is already at all-time lows, but if oil prices stay here for another three months, or move meaningfully higher in the short term, start to look for a real economic impact," Blancato said, urging portfolio diversification, including looking outside of equities.

SpaceX’s record-smashing IPO plan shows investors are eager to keep pouring money into all things AI, even as alarm bells ring for the wider economy.

And that has analysts wondering: Where will the cash come from if soaring inflation dents growth? Or if the artificial intelligence rollout proves less profitable than hoped?

HISTORIC INFLUX

Investment by AI labs is at historically “unprecedented” levels, with expected outlays by the 11 top American players over the next 12 months representing nearly three percent of US GDP, said Raphael Gallardo, chief economist at asset management group Carmignac in Paris.

At the beginning of this year confidence in that spending surge wobbled, with chipmakers and other tech hardware firms taking a hit on stock markets worldwide. But despite the outbreak of an ongoing war in the Middle East, “for now, those concerns largely have been dismissed by the markets” after reassuring profit reports, said Adam Sarhan of 50 Park Investments in New York.

“If you look at the actual earnings, those fears did not come to pass and in fact a lot of companies” committed to spend more on AI, Sarhan told AFP. Google for example announced this week that it would raise up to $80 billion for a major expansion of its AI infrastructure.

It said it was “compute constrained in the near term” -- jargon meaning it cannot build necessary infrastructure fast enough to meet demand. SpaceX meanwhile aims to raise $75 billion in an initial public offering expected next week, by far the largest IPO ever.

Its rivals OpenAI and Anthropic, behind ChatGPT and Claude respectively, are set to follow suit in the coming months, valuing the companies around a whopping $1 trillion.

GOBBLING UP CHIPS

Beyond US-based chatbot makers, companies worldwide have profited from the AI rush, especially chipmakers providing their computing power.

South Korea’s benchmark Kospi stock index for example has nearly doubled its value since January this year, propelled by chipmakers Samsung Electronics and SK hynix -- both also now trillion-dollar companies.

Those two companies alone account for half the Kospi’s market capitalisation.

“The fact that two companies make up such a large portion of the market highlights just how concentrated that dependence is, and that is the biggest risk factor,” said Kim Dae-jong, a professor at Sejong University.

In Taiwan, TSMC, a supplier to AI chip specialist Nvidia, represents on its own 40 percent of the Taipei stock market, while technology investor SoftBank in Japan this week surpassed Toyota as the country’s most valuable company.

In the United States, red-hot demand for Micron and Intel chips have seen their share prices more than double so far this year, while European equity benchmarks have soared thanks in large part to Infineon and STMicroelectronics.

TOO HOT FOR COMFORT

There are signs however that market expectations have outstripped the ability of companies to meet them.

This week the US chip specialist Broadcom saw its shares plunge despite its second-quarter profit having nearly doubled to $9.3 billion as its forecast for third-quarter chip revenue growth of over 200 percent failed to meet expectations.

“The support provided by huge capital inflows to AI and chip stocks is fading, exposing the often extreme overpricing in these sectors,” said Andreas Lipkow, analyst at CMC Markets.

“In a best case, investors will take profits ahead of the summer pause, and markets would have time to consolidate,” he said, especially if they sell tech holdings to buy the new SpaceX shares.

“If not, the likelihood of a major short-term correction on international equity markets remains high,” he said.

“These companies are cash cows and we’re in one of the biggest investment cycles in history”, said Frederik Ducrozet, head of macroeconomic research at Pictet Wealth Management in Switzerland.

But so far none of the three AI powerhouses -- SpaceX, Anthropic and OpenAI -- are turning profits, he noted, “which argues for more caution”, he said.

AI VS STAGLFATION?

Analysts and policymakers are worried that AI enthusiasm cannot escape the gravitational pull of soaring energy costs -- data centres suck huge amounts of electricity -- and slowing growth overall.

In the US alone, AI investments currently account for nearly nine-tenths of GDP growth overall -- overshadowing weak consumer demand and rising costs for small and midsize firms, said Gallardo at Carmignac.

“AI-related spending has become a huge part of the US growth story... the same handful of firms raising money, buying chips, leasing compute and booking revenues off one another,” added James Smith, an economist at ING.

“But the fact remains that if you strip out AI, the rest of US private non-residential investment has been falling year-on-year for six straight quarters,” he said.

And the situation could worsen if the US Federal Reserve, the European Central Bank and other central banks raise rates to contain energy-fuelled inflation, something many analysts consider inevitable.

A motorcycle helmet declared at just $3, or about Tk 370, during import is being sold in the local market for as much as Tk 4,500.

The wide price difference between import values and retail rates has prompted local manufacturers and large importers to accuse customs authorities of failing to properly assess imports of the essential protective headgear for riding.

They allege that the failure encourages under-invoicing, deprives the government of revenue and undermines both local production and rider safety.

Meanwhile, a senior revenue official acknowledged that under-invoicing, where importers declare goods at lower-than-actual values to reduce taxes, remains a “major challenge” in helmet imports.

According to customs data, Bangladesh imported 8.75 lakh motorcycle helmets in 2025. The total declared value stood at $2.45 million. As per this estimate, the average import value per unit helmet is less than $3, or about Tk 370 at an exchange rate of Tk 123 to the dollar.

Last year, India supplied the majority of imports, accounting for 633,384 helmets, followed by China with 223,293 units. Smaller quantities arrived from Vietnam, Taiwan, Singapore, Indonesia and Japan.

Customs records show helmets imported from India were declared at an average value of $3.02 per unit, while those from China were valued at just $1.96.

But visits to markets in Dhaka, as well as in Chattogram, found many of the same brands selling for between Tk 1,200 and Tk 6,000, depending on model and quality.

Import data show that several Indian brands, including Vega, Steelbird, Gliders, Axor, Telish and Aerostar, were declared at prices ranging from $2.50 to $3 per unit. Many of those helmets are retailing in the local market for between Tk 1,100 and Tk 4,500.

In May this year, Narayanganj-based New Nation Automobiles imported 7,236 Gliders helmets from India, declaring a unit value of $2.52. Customs assessed the shipment at $3 per unit for duty purposes.

Even after adding duties, taxes and value-added tax (VAT), which together amount to 59 percent, the estimated landed cost would remain below Tk 600 per helmet, according to import documents. But the same brand is selling in the local market for between Tk 1,200 and Tk 4,500.

Contacted, Nurul Haque, proprietor of New Nation Automobiles, said the declared import value did not reflect the total cost of bringing a product to market.

“After adding LC commissions, shipping costs, customs duties and VAT, our cost exceeds Tk 800 per helmet. We sell to wholesalers at Tk 900-Tk 950. By the time the product reaches retailers through multiple distribution layers, the price increases further,” Haque told The Daily Star.

He said helmets priced between Tk 800 and Tk 1,200 account for nearly 80 percent of market demand.

Industry players, however, say the practice remains widespread and is hurting compliant businesses.

Rokon Sarkar, deputy director of ACI Motors, which imports helmet brands including SMK and Studds, said compliant importers are facing mounting pressure as some traders allegedly understate helmet values to reduce taxes.

“Some importers are declaring a helmet at only $2.5, while we declare the actual price, around $15, and pay taxes and VAT accordingly,” he told The Daily Star.

He said the practice allows some importers to avoid a substantial portion of the roughly 62 percent duty and tax on helmet imports, making it increasingly difficult for compliant businesses to compete.

According to Sarkar, under-declaration is also contributing to the spread of lower-quality helmets while reducing government revenue.

ACI Motors previously imported premium Italian brands Nolan and X-Lite, which sold for between Tk 25,000 and Tk 60,000.

Motorcycles have become increasingly popular in major cities as a fast and affordable means of transport. According to Bangladesh Road Transport Authority (BRTA) data, the number of registered motorcycles stood at 45.8 lakh at the end of 2024, up from 31.25 lakh four years ago.

At the same time, motorcycle crashes have emerged as the leading cause of road fatalities. According to the Road Safety Foundation, motorcycles were involved in around 40 percent of all fatal road crashes in 2025.

The organisation recorded 3,029 motorcycle-related accidents that year, killing 2,671 riders and passengers.

The World Health Organization (WHO) says quality helmets can reduce the risk of death in a road crash by more than six times and lower the risk of brain injury by up to 74 percent.

While most Vega, Steelbird and Gliders helmets were declared at around $3 per unit, premium brands such as Studds, SMK and Graphic were declared at values ranging from $8.50 to $30.80. These products usually retail for between Tk 2,200 and Tk 6,000 in Bangladesh.

An NBR official, speaking on condition of anonymity, said under-invoicing in helmet import remains a major problem.

According to an analysis by the NBR’s valuation committee, around 95 percent of helmets imported in 2025 were declared at $3 or less per unit. Another 4 percent were declared at values between $3.50 and $15, while only about 1 percent were declared within the $15-$31 range.

“Whenever importers declare values of $3 or less, we usually apply a loading of $0.20 to $0.50 cents during assessment. This helps recover part of the revenue loss, although we know the actual value is often much higher,” the official said on condition of anonymity.

Industry representatives argue that the consequences extend beyond lost revenue and are also affecting road safety and domestic manufacturing.

RN Paul, managing director of RFL, which manufactures Safemet helmets, said local manufacturers could expand production if imported helmets were assessed at their proper value during customs clearance.

“Increasing capacity is not difficult for us,” he said. “But if the existing duty structure continues, there is little point in expanding because consumers will not buy our products.”

Shah Muhammad Ashequr Rahman, chief marketing officer of Bangladesh Honda Private Limited, which imports Honda helmets, said quality-certified helmets are becoming less competitive because of lower import value declarations by non-compliant traders.

He said the practice allows cheaper and lower-quality helmets to dominate the market, discouraging imports of internationally certified products.

Rahman also said the BSTI approval process requires multiple sample units for each size and model, along with testing and certification fees, increasing costs for compliant importers.

“If regulatory costs, approval time and import duties are reduced while maintaining proper quality standards, internationally certified helmets will become more accessible and affordable,” Rahman said.

Britain floated the idea of striking a tech deal with the EU to boost ties in AI and other innovative sectors on Friday, as part of a push to rebuild post-Brexit relations.

UK business and trade secretary Peter Kyle said he discussed the possibility with EU trade chief Maros Sefcovic during a Brussels meeting focused on other bilateral issues.

“There are enormous opportunities out there for us to partner,” Kyle told a conference in the Belgian capital. “A tech partnership, for example.”

With its vast capital markets London could play a key role in helping scale-up tech firms to rival American and Asian giants, he said.

“We are the spin-out capital of Europe. We are the unicorn capital of Europe,” Kyle later told reporters, referring to the creation of new companies and start-ups valued at more than $1 billion.

“But I want to go much further, and we are much more likely to go global by working with European countries and the European Union.”

Britain signed a similar -- later-suspended -- deal to align on innovation and spur private-sector investment with the United States in September.

The idea of a repeat with the EU comes as London and Brussels painstakingly negotiate other matters under a “reset” in relations vowed by British Prime Minister Keir Starmer to fire up Britain’s insipid economy.

Kyle met Sefcovic as the EU and UK are due to hold a summit at a yet-to-be confirmed date, likely in July.

Both parties are hoping to present several deals, namely on food and animal safety standards, a youth mobility scheme, and the linking of their emissions trading systems, at the event.

But discussions have hit a series of roadblocks.

Britain is said to be wanting a cap on the number of visas granted under the mobility scheme and to be unwilling to pay into some EU funds as requested by Brussels.

The EU on the other hand has been demanding greater access to British universities for its 18- to 30-year-olds -- and for them to be allowed to pay the same tuition fees forked out by their local peers.

Kyle said he had “hope and optimism” concerning the summit, after what he described as a “positive” and “vigorous” conversation with Sefcovic.

The government is considering a package of incentives in the upcoming budget to boost investment in renewable energy, aiming to reduce pressure from energy supply uncertainty and continuously rising energy prices.

At the same time, it may announce new incentives or extend existing benefits for another three to four years to encourage investment in local industries, particularly home appliances, computers, laptops and electric vehicles (EVs).

Currently, locally manufactured computers and laptops enjoy VAT exemption, which is set to expire on 30 June next year. The government may extend this benefit until 2030.

Similarly, the reduced-rate import duty facility on machinery and components used to manufacture home appliances such as blenders and juicers is due to expire this year, but could also be extended until 2030.

Meanwhile, the total tax burden on imported electric vehicles currently stands at around 90%, which may be significantly reduced. Sources also said that VAT and income tax concessions, along with duty benefits on imported raw materials, may be offered to support local EV manufacturing.

These developments have emerged from budget-related discussions within the finance ministry and the National Board of Revenue (NBR).

At present, import taxes on various rooftop solar equipment and components range between 36% and 63%. The proposed budget may reduce these rates to 15%.

In addition, tax exemption facilities for companies investing in commercial renewable energy projects may be extended from 2030 to 2035.

An NBR income tax official involved in budget preparations said investors making investments during this period would enjoy a full tax holiday for the first five years, followed by a 50% exemption for the next three years and a 25% exemption for the subsequent two years.

Speaking to TBS on condition of anonymity, the official said the government is preparing to take whatever measures are necessary in the upcoming budget to stimulate business and investment.

He added that renewable energy is one of the government's priority sectors, which is why the highest levels of tax, VAT and income tax incentives are being considered to attract more investment.

Investors already supplying energy through renewable energy, particularly solar power, have welcomed the move.

Saleudh Zaman Khan, managing director of NZ Tex Group, one of Bangladesh's leading textile manufacturers with an installed solar capacity of around 10MW, told TBS, "Import taxes on some solar equipment currently exceed 90%. If these taxes are reduced, entrepreneurs will be much more interested in investing in the sector."

He explained that installing one megawatt of solar capacity currently costs between Tk3 crore and Tk3.25 crore, including the cost of imported equipment and related taxes. If import taxes are reduced to 15%, installation costs could fall by around Tk50 lakh per megawatt.

"Even then, the cost will remain higher than in India," he added.

Industrial solar power generation in Bangladesh currently exceeds 500MW. However, industry insiders say solar installations are expanding rapidly and total generation capacity could more than double by the end of this year.

Golam Baki Masud, general secretary of the Bangladesh Solar Module Manufacturers Association and managing director of Greenfinity Energy Limited, noted that local investors already have the capacity to supply many solar sector components domestically.

"If local industries are not given adequate protection in these equipment categories, existing manufacturers will disappear," he warned.

"The government must also take this into account. Due to unequal competition, nine out of 11 local solar equipment manufacturing companies have already disappeared."

Push for local home appliance and computer industries

The government last year announced VAT rates for several local industries up to 2030. However, VAT exemptions for computer and laptop manufacturing are scheduled to expire in June 2027 and may now be extended for another three years.

Likewise, the reduced-rate import duty facility on raw materials used in manufacturing home appliances such as blenders and juicers is due to expire this year, but may also be extended until 2030.

Kamruzzaman Kamal, director of Pran-RFL Group, one of the country's leading home appliance manufacturers, told TBS, "If government policy support for local industries continues, dependence on imports will decline."

Experts have also supported continuing policy assistance for import-substitution industries.

Snehasish Barua, managing director of SMAC Advisory Limited, told TBS, "As local industries are gradually building their capabilities, extending support for some more time is a positive decision."

However, he added that policymakers should assess whether these incentives are achieving their intended objectives, particularly whether import dependence is actually declining and how much benefit is ultimately reaching consumers.

Fifteen of the country’s 61 banks accounted for as much as 85 percent of defaulted loans as of March, according to central bank data, highlighting how loan irregularities, fraud and financial scams have become concentrated in a small group of commercial lenders.

Combined non-performing loans (NPLs) in these banks stood at more than Tk 4.99 lakh crore, out of total classified loans of around Tk 5.88 lakh crore across the banking sector, according to Bangladesh Bank (BB) data.

The stressed lenders are Agrani Bank, Janata Bank, Rupali Bank, Sonali Bank, AB Bank, Exim Bank, First Security Islami Bank, Global Islami Bank, Social Islami Bank, Union Bank, Islami Bank Bangladesh, IFIC Bank, National Bank, Padma Bank and Bangladesh Krishi Bank.

They were selected based on both the volume and ratio of defaulted loans.

In terms of volume, Islami Bank Bangladesh has the highest NPLs at Tk 95,629 crore, equivalent to 50.88 percent of its total loans.

The bank was taken over by the S Alam Group in 2017. The controversial conglomerate later extended around 80 percent of the bank’s total loans to its own companies and associated firms, violating banking rules and regulations.

After the fall of the Awami League-led government in August 2024, the bank was freed from the group’s control and is now running under the supervision of BB through a board of independent directors.

The country’s largest shariah-based bank is now facing fresh uncertainty over the appointment of a new chairman.

“A large share of its defaulted loans is linked to the S Alam Group, with recovery remaining minimal,” said Md Altaf Hossain, acting managing director of the bank.

He told The Daily Star that the bank is trying to recover loans from other borrowers, but progress has been limited as even regular customers have become reluctant to repay.

“Under the current circumstances, the bank is prioritising the prevention of deposit withdrawals, while loan recovery efforts have received less attention,” he added.

At Exim Bank, bad loans stood at Tk 36,724 crore in March, representing 68.58 percent of total loans.

The bank was largely influenced by Nazrul Islam Mazumder, chairman of Nassa Group and former chairman of the Bangladesh Association of Banks (BAB). Loan irregularities and weak corporate governance have pushed the lender into a merger process with four other troubled banks.

Among lenders linked to the S Alam Group, First Security Islami Bank reported NPLs of Tk 60,843 crore, or 97.39 percent of total loans.

Global Islami Bank’s NPLs stood at Tk 14,243 crore, or 97.47 percent, while Social Islami Bank reported NPLs of Tk 30,439 crore, or 80 percent. Union Bank recorded NPLs of Tk 27,102 crore, or 97 percent of its loan portfolio.

These banks were heavily influenced by the S Alam Group, which secured a large portion of loans from them.

AB Bank’s NPLs stood at Tk 19,506.79 crore, accounting for 54 percent of total loans, while National Bank reported Tk 24,305 crore, or 57 percent.

Both lenders faced loan irregularities, governance failures and financial scandals during the Awami League government.

IFIC Bank was dominated by Salman F Rahman, vice-chairman of Beximco Group and an influential adviser to ousted prime minister Sheikh Hasina. Its bad loans stood at Tk 28,174 crore in March, equivalent to 63.36 percent of total loans.

Md Mehmood Husain, independent director and current chairman of the bank, said the volume of defaulted loans has not increased significantly, although the ratio has risen.

“We are trying to bring it down. The increase in the ratio of bad loans is mainly due to the lack of loan growth; in fact, the overall loan portfolio is shrinking, which has pushed up the proportion of non-performing loans,” he said.

He added that the ratio is expected to ease somewhat by the end of June, with efforts focused on reducing losses.

At crisis-hit Padma Bank, bad loans stood at Tk 5,026 crore, representing 91 percent of total loans.

Among state-owned lenders, Janata Bank reported the highest volume of bad loans at Tk 74,996 crore, or 67.4 percent of its portfolio. Agrani Bank’s NPLs stood at Tk 28,899 crore, or 40 percent, while Rupali Bank reported Tk 20,319 crore, or 43.37 percent. Sonali Bank recorded Tk 16,242 crore, equivalent to 17.85 percent.

NPLs at Bangladesh Krishi Bank stood at Tk 17,102 crore, or 47 percent of total loans.

Dhaka's stock market surged to its highest turnover of 2026 today (4 June) as the capital market regulator Bangladesh Securities and Exchange Commission (BSEC) saw its outgoing chairman resign and a new one appointed on the same day.

Trading on the Dhaka Stock Exchange (DSE) hit Tk1,351 crore by the close of the session — the highest single-day turnover this year — buoyed by renewed investor confidence following the leadership transition at the top securities regulator.

Markets began climbing in the morning after news broke of the resignation of BSEC Chairman Khondoker Rashed Maqsood and four commissioners.

Turnover crossed Tk1,000 crore before noon. Sentiment strengthened further when Masud Khan was appointed the new BSEC chairman during the session, pushing activity higher through the closing bell.

The previous year-high had been set just a day earlier, when DSE turnover stood at Tk1,279 crore on Wednesday.

Positive momentum had, in fact, defined the entire week. All four trading sessions since markets reopened on Monday following the Eid-ul-Adha holiday recorded gains, with the benchmark index rising each day.

There was no exception today. The flagship DSEX index gained 33 points, the Shariah-based DSES rose 9 points, and the blue-chip DS30 added 11 points.

Advancers outpaced decliners, with 242 companies posting gains against 104 losers, while 45 others closed unchanged.

Genex Infosys PLC led the gainers with a 10% jump, while Jamuna Bank PLC was the top loser, shedding nearly 10%.

The Chittagong Stock Exchange (CSE) also closed in the green. The all-share CASPI index advanced 83 points, with 152 companies gaining against 74 declining and 29 unchanged. Total turnover at the CSE stood The newly appointed chairman of the Bangladesh Securities and Exchange Commission (BSEC), Masud Khan, has vowed to strengthen market surveillance and enforcement while placing a strong emphasis on attracting foreign investment, as the regulator undergoes a major leadership overhaul.

Speaking at his first press conference after assuming office today (4 June), Masud outlined an ambitious roadmap aimed at restoring investor confidence, enhancing transparency, and building a more resilient capital market.

The Financial Institutions Division (FID) appointed Masud Khan as BSEC chairman for a four-year term through a notification this afternoon, just hours after the previous chairman and four commissioners resigned.
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Alongside him, three new commissioners have also been appointed for the same tenure. The ministry also asked them to resign from their current positions for taking charge in the BSEC.

Masud Khan brings over 45 years of experience in multinational and local corporations. He currently serves as the group Chief Executive Officer of Crown Cement and Chairman of Unilever Consumer Care Limited. Previously, he was the chief financial officer of LafargeHolcim Bangladesh for 18 years and spent two decades with British American Tobacco in finance and related roles both at home and abroad.

He also holds key independent directorships, including chairman of the Audit Committee at Singer Bangladesh and Community Bank Bangladesh, and chairman of the Nomination and Remuneration Committee at British American Tobacco. A seasoned academic, Masud has been a lecturer at the Institute of Chartered Accountants of Bangladesh for 45 years.

Other newly appointed commissioners include Advocate Nahid Mahtab, a former deputy attorney general; Tanwir Habib Rahman, finance director of Asa International; and Md Nafeez Al Tarik, managing director of Dhaka Bank Securities Limited.

'BSEC to develop integrated surveillance system'

At the press conference, Masud said the regulator would develop a modern, integrated surveillance system by coordinating with the Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE), and Central Depository Bangladesh Limited (CDBL). The system will enable real-time monitoring across the market, significantly enhancing oversight capabilities.

He noted that particular attention would be given to "Z" category securities, where governance weaknesses, disclosure gaps, and investor protection risks are relatively higher.

The new chairman stressed that market manipulation – including insider trading, circular trading, wash trades, pump-and-dump schemes, and front running – would be identified more swiftly, with real-time enforcement actions replacing the traditional delayed response.

"In future, we will not wait seven or 14 days for explanations. With real-time monitoring, we will move towards immediate action," he said.

He added that in cases where there are suspicions of market manipulation, insider trading, or failure to disclose information, stock exchanges would be empowered under BSEC supervision to take immediate steps, including temporary suspension of trading if necessary.

Clarifying the regulator's stance, Masud said the BSEC's objective is not to control prices or interfere with natural market movements.

"Our goal is not to prevent market fluctuations. Our objective is fair price discovery and ensuring equal access to information," he said. "Prices will be determined by the market, not by manipulation."

He warned that those who abuse investor trust, engage in manipulation, or violate securities laws would face stricter enforcement actions than in the past.

The new chairman also highlighted a long-term vision for capital market development, noting that a sustainable and successful market evolves through a structured progression.

This includes smarter regulation, digitalisation, an increase in quality listed companies, stronger institutional investor participation, higher foreign investment, and robust enforcement and governance frameworks.

"Confidence cannot be built through artificial market support or administrative intervention. It comes from trust, and trust comes from fairness, transparency, consistency, and accountability," he said.

He further pledged greater engagement with market intermediaries, stock exchanges, professional bodies, and policymakers, adding that the regulator would welcome constructive criticism and ensure accountability within its own operations.

Leadership transition

The leadership transition follows the resignation of former BSEC chairman Khondoker Rashed Maqsood, who had been appointed on 18 August 2024. In a statement earlier on Thursday, Maqsood said he stepped down after 21 months in office to focus on personal pursuits.

Reflecting on his tenure, Maqsood said his team took charge during a turbulent period and initiated a comprehensive overhaul of the regulatory framework. During this time, five key rules—including those related to margin, initial public offerings (IPOs), mutual funds, debt securities, and whistleblower protection – were finalised and gazetted.

Additionally, three draft rules on corporate governance, auditing, and corporate restructuring were published for public consultation, while two major laws – the Bangladesh Securities and Exchange Commission Act and the Capital Market Stabilisation Fund Act – were prepared for enactment.at Tk27.46 crore.

Bangladesh is expected to learn by September whether it will get additional time before graduating from Least- Developed Country (LDC) status, with United Nations bodies currently reviewing its request for a deferral amid economic challenges and ongoing reform efforts.Economics

The United Nations General Assembly (UNGA) is expected to take the final decision in this regard in September this year, officials said on Thursday.

The country may receive an additional two to two-and-a-half years to prepare for its transition to developing-country status from its current LDC classification, they said.

Officials at the Economic Relations Division (ERD) said the executive body of the United Nations Committee for Development Policy (UNCDP) -- the Economic and Social Council (ECOSOC) -- would determine the deferral request and specify the length of the extended preparatory period.

The decision would then be submitted to the UNGA for final approval, likely at its session in September this year, they added.

"An ECOSOC meeting will be held on 12 June. Bangladesh's issue may not be placed at the immediate next meeting. It could instead be discussed at a meeting in late July. We will then know the specific duration of the LDC graduation deferral," a senior ERD official said.

He said that although the proposed extension period was likely to become clear following the ECOSOC meeting in July, the final decision would require approval by the UN General Assembly.

Bangladesh's fellow graduating LDC, Nepal, has also applied for a two-and-a-half-year deferral of its graduation.

"Since Nepal has requested a two-and-a-half-year extension, the UN may adopt a common approach for both countries. The deferral period could therefore be between two and two-and-a-half years," another ERD official said.

In response to Bangladesh's request for a three-year extension of the preparatory period, the UNCDP, in a letter sent to the ERD Secretary on June 1, expressed a positive view of the request but did not specify any timeframe.

Bangladesh is currently scheduled to graduate from LDC status in November 2026.

Amid global economic shocks, energy supply constraints, domestic political transition and other external challenges, Bangladesh submitted its request to the United Nations more than two months ago, seeking additional time before graduation.

Meanwhile, the UNCDP has attached several conditions to its consideration of Bangladesh's request.Politics

The Committee underscored the importance of domestic reforms, including measures to stabilise the financial sector, strengthen domestic resource mobilisation through higher tax revenue collection, and prioritise expenditures that enhance resilience and support economic transformation.

"Without significantly advancing on such reforms, it is difficult to see how an extension of the preparatory period requested by Bangladesh would contribute to a more sustainable graduation and a smooth transition. Hence, the extension should not be viewed as a pause or justification for delaying reforms," the Committee said.

The Committee advised that any extension should serve as a catalyst for accelerating reforms and implementing smooth transition measures, particularly those aimed at strengthening productive capacities, promoting economic diversification and preparing the private sector for graduation.

It noted that these measures require careful sequencing and sustained attention throughout both the preparatory and post-graduation transition periods.

In its letter to the ERD Secretary dated June 1, the CDP also indicated that a shorter extension of the preparatory period would appear more conducive to ensuring a sustainable graduation process.

Earlier, on Tuesday, the ERD said in a statement that the UNCDP had expressed a "positive position regarding Bangladesh's request to extend its preparatory period for graduation from the LDC category until November 24, 2029".

In its assessment report, however, the CDP noted that Bangladesh's request for a three-year extension was consistent with the approach taken in all five previous cases where graduating countries had received extensions to their preparatory periods.

The Committee acknowledged the heightened uncertainty arising from external shocks and recognised the need for additional time to adjust policies and establish priorities under the Smooth Transition Strategy (STS).

At the same time, it highlighted the risk that, for a country that had met the graduation criteria by a comfortable margin, prolonging its stay in the LDC category could delay the benefits associated with graduation.

The UNCDP has already recommended three countries for graduation from LDC status in 2026 -- Bangladesh, Nepal and Lao PDR.

NCC Bank PLC is targeting diversification, digital transformation and stronger risk management to drive its next phase of growth, said Managing Director and CEO M Shamsul Arefin.

In an interview with The Daily Star on the bank’s 33rd anniversary, he outlined a roadmap centred on expanding SME and retail lending, accelerating digital banking services, strengthening asset quality, embracing artificial intelligence and increasing support for sustainable financing.

The bank began its journey as an investment company in 1985 and operated through 16 branches until 1992. It became a full-fledged private commercial bank in 1993 with a paid-up capital of Tk 39 crore. Today, that figure stands at Tk 1,154 crore. Arefin said the lender’s transformation from a merchant bank into a commercial bank, coupled with its strategic move into larger corporate clients and trade finance, has been instrumental in shaping its growth trajectory.

GROWTH PRIORITIES

“In its early years, the bank focused primarily on SME financing and mid-sized corporate clients, which helped build a loyal customer base and establish a strong customer-centric culture. However, over the last seven to eight years, NCC Bank has strategically repositioned itself by venturing into large-scale corporate clients, export-oriented industries, trade finance, and a broader range of business segments,” he said.

While maintaining its presence in corporate and export-oriented sectors, NCC Bank plans to place greater emphasis on SMEs, retail banking and agriculture to achieve more balanced growth and deepen financial inclusion, he said.

The lender also plans to expand its Islamic banking footprint as demand for shariah-compliant financial services continues to rise.

“The long-term goal is a modern, resilient, customer-focused bank built on strong governance, financial discipline, and sustainable growth,” he said.

DIGITAL TRANSFORMATION

Digitalisation remains central to the bank’s strategy.

“Going forward, NCC Bank will keep investing in digital infrastructure, cybersecurity, data analytics, automation, and customer-facing tech -- enhancing mobile banking, QR payments, virtual services, digital lending, and fintech integrations,” he said.

Artificial intelligence is expected to play a growing role in the bank’s operations.

“As part of its digital roadmap, the bank is exploring gradual integration of AI into areas like customer behaviour analysis, fraud detection, chatbots, predictive analytics, and credit risk monitoring,” he said.

“AI will also strengthen early warning systems and portfolio analysis.”

Meanwhile, the bank is also increasing its focus on green financing, with greater attention to renewable energy projects, energy-efficient industries and environmentally sustainable investments, he said.

STRENGTHENING ASSET QUALITY

Reflecting on the previous year, Arefin said broader economic pressures had affected asset quality across the banking industry.

“In 2024, NCC Bank faced asset quality pressure like the broader industry, with its NPL ratio rising to 7.32 per cent. This was driven mainly by external factors like inflation, energy crisis, forex volatility, liquidity stress, and slower business cash flows,” he said.

“By 2025, however, the bank significantly reduced its NPL to 4.12 percent through stronger recovery drives, improved monitoring, tighter credit underwriting, and better portfolio supervision.”

“The goal is not just to lower the NPL ratio but to build a healthier, more sustainable, and diversified loan portfolio over the medium to long term,” he said.

The lender’s performance remained resilient despite a challenging banking environment. Deposits rose by nearly 17 percent, advances increased by around 10 percent and operating profit grew by almost 18 percent in 2025. Net profit climbed to Tk 476 crore from Tk 437 crore a year earlier.

“Overall, NCC Bank’s 2024-2025 performance underscores strong governance, a customer-centric model, portfolio diversification, and disciplined risk management,” he said.

To keep bad loans under control, the lender is pursuing stricter credit appraisal, enhanced early warning systems, expanded recovery teams and greater use of technology and analytics.

NAVIGATING ECONOMIC HEADWINDS

He noted that many businesses remain cautious amid high inflation, rising interest rates, foreign-exchange volatility, elevated import costs and liquidity pressures.

“Many businesses remain cautious due to some ongoing pressures: high inflation, energy crisis, rising interest rates, forex volatility, import costs, liquidity stress, slower demand, and lower cash flow,” he said. “As a result, business houses are prioritising liquidity and balance sheet stability over expansion.”

Demand has shifted from long-term investment loans towards working-capital and trade-finance facilities, although export-oriented sectors continue to show relatively stable borrowing demand.

On governance, Arefin said the board maintains strategic oversight while management independently handles day-to-day operations.

“The board provides strategic oversight, while management independently handles day-to-day operations within approved risk and compliance frameworks. No undue pressure is exerted on lending or operational decisions -- all credit proposals undergo a rigorous evaluation and multi-level approval process,” he said.

Asked what differentiates NCC Bank from its peers, Arefin highlighted its governance standards, risk management and customer-focused culture.

“NCC Bank stands out for its stability, disciplined banking, customer-centric culture, and over three decades of credibility,” he said.

“It maintains strong governance, compliance, and prudent risk management -- even during sector challenges -- prioritising transparency and accountability over short-term gains.”

Business relief will take center stage in the upcoming national budget, which is expected to introduce a series of measures aimed at removing barriers to doing business, with a strong focus on trade facilitation rather than imposing new taxes.

Proposed reforms on the table include shifting to quarterly VAT return filings instead of monthly, implementing a fully automated VAT registration system, and easier access to fast-track port clearance schemes, according to National Board of Revenue sources involved in the preparations.

Sources said businesses may be allowed to submit VAT returns every three months instead of monthly, while continuing to pay VAT on a monthly basis. This would reduce filing requirements from 12 returns a year to four for around 500,000 businesses that file VAT returns every month.
Infograph: TBS
Infograph: TBS

The budget may also introduce provisions allowing companies using NBR-approved Enterprise Resource Planning (ERP) software to avoid submitting hard copies of VAT returns and audit-related documents.

In addition, online VAT registration could be made fully automated, removing the requirement for approval from VAT officials.

Another major proposal aims to drastically cut customs clearance times at ports. Currently, imported products and chemical samples can only be tested by the Bangladesh Standards and Testing Institution (BSTI) and the Bangladesh Atomic Energy Commission – a bottleneck that routinely drags the process out for two weeks.

Under the proposed changes, testing could also be conducted by any institution accredited by the International Organization for Standardization (ISO) and the Bangladesh Accreditation Board, which officials believe would significantly reduce delays.

The NBR is also considering relaxing the conditions for obtaining Authorised Economic Operator (AEO) licences, allowing more businesses to qualify as trusted traders and enjoy faster customs clearance. Physical examination requirements for AEO licence holders may also be reduced further.

Existing requirements related to declarations and approvals for input-output coefficients – which determine the amount of raw materials used to produce finished goods – may also be eased.

An NBR senior official, speaking on condition of anonymity, said, "There are plans in this budget to simplify areas where trade currently faces obstacles…This will be a budget of 'no imposition, fewer exemptions – only trade facilitation'."

NBR Chairman Abdur Rahman Khan had also assured business leaders in meetings in March and April that the upcoming budget would prioritise removing barriers to business activity.

The NBR is also expected to move away from the widely criticised minimum tax regime. Budget proposals may include provisions allowing refunds of advance taxes or tax deducted at source once taxpayers become eligible for repayment after a specified period.

The finance minister's budget speech may also include a commitment to a more predictable tax regime, with newly announced tax rates for both individual and corporate taxpayers potentially fixed for the next five years.

Business leaders and economists have welcomed the proposed reforms.

Debabrata Roy Chowdhury, director of Nestlé Bangladesh PLC, told The Business Standard, "What we are hearing regarding VAT and customs reforms will genuinely support trade facilitation if implemented.

"It is becoming clear that the government is trying to understand the challenges faced by businesses."

He noted that while monthly VAT return submission may not be a major burden for large companies, it creates difficulties for smaller firms.

"Businesses also have to visit VAT offices with documents, which often involves additional costs. Effective implementation of a paperless system would benefit both businesses and the NBR," he added.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), described the proposals as a positive step. "If such measures are announced in the budget, we will welcome them," he said.

"The government has spoken about trade facilitation since taking office. If these proposals are included, it will demonstrate that commitment in practice."

He argued that the current tax collection system puts excessive pressure on businesses. "Businesses will not survive under the present system of tax collection. Investment will not come either," he said.

Former NBR chairman Muhammad Abdul Mazid also backed the proposed reforms. He previously led a committee formed during the interim government's tenure to recommend reforms for the NBR.

"Trade facilitation is essential. There is no alternative," he told TBS. "If ease of doing business cannot be ensured, the economy will not function properly. And if the economy does not function, revenue collection will also suffer."

He said both his committee and subsequent reform bodies had consistently emphasised improving the business environment.

"If these issues receive importance in the budget, it will be positive for both the economy and revenue collection," he said. "Revenue cannot be increased through fear."

Business leaders say the current requirement to submit VAT returns every month forces companies of all sizes to prepare and file large volumes of documentation.

Many believe reducing submissions from 12 to four per year would be a significant improvement, though some, including Mohammad Hatem, argue returns should ultimately be filed annually, similar to income tax.

The NBR-approved ERP system is a business management software solution that centralises data, reduces duplication and improves operational efficiency. Officials say companies using it would no longer need to submit hard-copy documents with VAT returns, supporting the government's paperless administration drive.

At present, even after online submission, businesses are often required to submit physical documents to VAT offices. Officials acknowledge this can create opportunities for harassment and procedural delays due to in-person visits.

Businesses have also long raised concerns over approval processes for input-output coefficients. The budget may simplify both the approval mechanism and conditions for exemption from such declarations.

Faster testing, customs clearance

Under current rules, disputes over classification of imported goods or chemicals often require laboratory testing, which is limited to BSTI and the Bangladesh Atomic Energy Commission.

This frequently results in shipments being sent to Dhaka for testing, causing delays while consignments remain stuck at ports and importers incur demurrage charges.

The proposed reforms would allow testing by any ISO-certified and Bangladesh Accreditation Board (BAB)-accredited institution. Officials expect this to reduce testing time, speed up customs clearance and lower business costs.

The Authorised Economic Operator (AEO) programme, introduced in 2019, allows trusted importers and exporters to move goods directly from ports to warehouses without immediate inspection.

However, despite its intended benefits, only 20 companies have obtained AEO licences in more than six years.

Businesses say eligibility requirements remain too strict, limiting participation. The budget may therefore relax these conditions and reduce the frequency of physical inspections for certified firms.

Businesses call for faster release of consignments

While expanded testing options are welcomed, business leaders argue a more effective solution would be to allow consignments to be released from ports while testing is carried out.

Debabrata Roy Chowdhury said, "When consignments remain at the port while samples are tested, it can take around 15 days to receive the report. Demurrage charges begin after four days."

"Our company alone pays around Tk10 crore in demurrage annually because of such delays."

"If the NBR allows consignments to be cleared while samples are being tested, importers would not have to bear additional demurrage costs. That would be a more effective system."

Mohammad Hatem echoed the view, saying faster release of consignments would significantly reduce costs and improve trade efficiency.

The government is planning to exempt individual content creators and freelancers from the existing 7.5 percent source tax in the 2026–27 budget, in a move aimed at supporting the country’s growing digital economy and encouraging online entrepreneurship.

Under the proposal, income earned through digital platforms such as YouTube, Facebook, TikTok and other online channels will no longer be subject to the source tax currently applied to remittances received from abroad, according to officials involved in budget preparations.

“A provision will be incorporated into the Finance Bill 2026 to provide this exemption under the existing source tax framework,” said a finance ministry official, requesting anonymity.

The National Board of Revenue may define a “content creator” as a person who produces content independently, meaning only individuals will qualify under this category. According to an official, media houses or other institutional entities will not be included within this definition.

At present, a 7.5 percent source tax is deducted from income remitted from abroad for services, revenue-sharing arrangements and similar activities under the Income Tax Act 2023.

Finance Minister Amir Khosru Mahmud Chowdhury is expected to formally propose the measure while presenting the national budget in parliament on June 11.

Officials said the proposal has already received in-principle approval from Prime Minister Tarique Rahman at a high-level meeting.

The initiative is part of the government’s wider efforts to promote the information technology and digital services sectors, which have become key sources of jobs, entrepreneurship and foreign exchange earnings.

Officials added that the tax relief is expected to encourage young entrepreneurs, freelancers and digital content creators to expand their activities, while also helping to formalise the country’s fast-growing creator economy.

The move gained momentum after the prime minister recently met content creator Zuel Rana, owner of “Citto Media,” who produces nature-related content on social media. Following the meeting, the creator said the government had assured steps to withdraw the source tax on freelance and content-creation income.

Meanwhile, Dutch-Bangla Bank has formally suspended the deduction of withholding tax on freelance earnings. It also said it has started the process of refunding taxes previously deducted from freelancers’ accounts.

Bangladesh currently has around 500,000 freelancers working in digital services and content creation, making it one of the largest freelance talent pools in the region.

METRO RAIL VAT EXEMPTION LIKELY TO CONTINUE

The government is likely to extend the existing value-added tax (VAT) exemption on fares of the Dhaka metro rail for another year, as the service continues to gain strong popularity since its launch.

The finance minister is expected to include the proposal in the upcoming budget. The current exemption is set to expire in June this year.

Dhaka metro rail began commercial operations in late December 2022 and quickly became popular among commuters, especially office workers and students seeking relief from crowded and congested bus travel.

Since its launch, the government has maintained tax exemptions on metro rail fares. Around 3.5 lakh passengers now use the service daily.

Global oil inventories are running dangerously low as a deal to re-open tanker traffic through the Strait of Hormuz has proven elusive, and industry executives and analysts warn there could be another oil price shock in the ​coming weeks, severe enough to upset broader financial markets.

Some fear the next move higher for oil prices would pose a risk to economic growth, bond yields and the bull market ‌for stocks. “We’re approaching unheard of inventory levels. I mean, really, really low levels. You can debate whether that’s going to hit those really low levels in two weeks or three weeks. But once you get to that point, you’ll see prices shoot up,” Neil Chapman, Exxon Mobil senior vice president, said at the Bernstein conference in New York on May 28.

Chapman said that if inventory levels get much lower, dated Brent, which is used to price more than 60 percent of globally traded crude, could rise to $150 ​or $160 a barrel.

Crude inventories and strategic reserve releases have kept oil prices somewhat under control in the four months that the war with Iran has kept supplies from reaching much of the world. ​Crude futures have been trading below $100 a barrel despite the strait remaining effectively closed.

For days, US President Donald Trump has said a deal to reopen the strait is imminent. But so far it has been elusive, and warnings from the oil industry have gotten sharper.

If stock draws continue at their current pace, sinking global oil inventories could hit critically low levels just as summer fuel demand hits ​its peak, the head of the International Energy Agency’s oil industry and markets division, Toril Bosoni, said on Tuesday.

“Once they (cushions) thin out, prices have to do more of the adjustment work. That means either consumers pay more or ​demand gets destroyed,” said Mehmet Beceren, vice president and senior market strategist at Rosenberg Research, who said a tipping point could be reached by the end of June.

If stock draws continue at their current pace, sinking global oil inventories could hit critically low levels just as summer fuel demand hits ​its peak, the head of the International Energy Agency’s oil industry and markets division, Toril Bosoni, said on Tuesday.

“Once they (cushions) thin out, prices have to do more of the adjustment work. That means either consumers pay more or ​demand gets destroyed,” said Mehmet Beceren, vice president and senior market strategist at Rosenberg Research, who said a tipping point could be reached by the end of June.

US crude stocks are down almost 64 million barrels since the start of the war, and have fallen ​for eight straight weeks.

The US is in the process of releasing 172 million barrels from the SPR, part of a coordinated effort by the IEA to release a record 400 million barrels of oil to combat rising prices.

Those stock releases alongside a ‌drop in Chinese seaborne crude imports, which in May hit the lowest level in nearly 10 years, have helped quell some of the supply shock.

“I think the risk of a second price shock is real, but the key point is that it may come from the exhaustion of buffers rather than from the initial Hormuz closure itself,” Shohruh Zukhritdinov, a Dubai-based oil trader, said.

Drawdowns in US strategic petroleum reserves, fuel substitution and other factors that have limited the price spike may not be enough if the disruption drags on, analysts in JPMorgan’s Data Assets and Alpha group said.

The White House did not respond to a request for comment.

KNOCK-ON EFFECTS

Investors said that the conflict has embedded a ​lasting risk premium in crude, with knock-on effects for ​inflation, bond yields and consumer spending.

Recent events suggest a lasting structural change in energy markets, said Joseph Tanious, chief investment strategist at Northern Trust Asset Management.

“The Strait of Hormuz is now firmly established as a persistent geopolitical chokepoint,” Tanious said, adding that a return to pre-war oil prices below $70 looked unlikely even if tensions eased.

As a result, he sees an uneven global impact, ​with Europe and Asia remaining more vulnerable to sustained energy inflation, while the US, a net exporter, is relatively better insulated.

Higher oil prices are “a modest headwind” ​for the US economy, said Adam ⁠Schickling, senior economist at Vanguard, thanks to domestic oil production and strong investments in artificial intelligence which have offset pressure on consumers.

Yet in a scenario where crude rises to around $120 per barrel and remains there for a year, US economic growth could slow by about 0.4 percentage points, according to Vanguard’s estimates.

For households, the impact depends less on the precise level of oil prices and more on how long they stay elevated. Consumers retain some buffer, with fuel costs ⁠accounting for a ​smaller share of income than in previous oil shocks. But that cushion diminishes over time.

If prices remained high through the next three ​months as the summer driving season begins, consumer spending could slow further, said Phil Blancato, chief market strategist at Osaic.

“Consumer sentiment is already at all-time lows, but if oil prices stay here for another three months, or move meaningfully higher in the short-term, start to ​look for a real economic impact,” Blancato said, urging portfolio diversification, including looking outside of equities.

Agricultural products must be transformed into value-added agro-industrial products in order to transition from an agriculture-based economy to an industrial one, Information and Broadcasting Minister Zahir Uddin Swapan said yesterday. “Achieving this transformation requires the effective integration of technology, innovation, and knowledge,” the minister said at the award ceremony of the Bangladesh Agro-Industry Media Award 2025, organised by Pran-RFL Group, at the MCCI Conference Hall of Police Plaza Concord in Dhaka.

“It will strengthen domestic markets, enhance export competitiveness, and contribute significantly to economic growth,” he also said, adding that investigative journalism can play a crucial role in promoting the development of the agriculture and agro-processing sectors.

“I believe that journalists’ investigative reports will not only inspire entrepreneurs to explore new opportunities but also help the government formulate more effective agriculture- and industry-friendly policies,” he said.

Referring to the government’s development agenda, the minister said, “Our government was elected through a credible electoral process. Before assuming office, Prime Minister Tarique Rahman declared, ‘I have a plan.’ Today, that vision has evolved into ‘We have a plan,’ with agriculture occupying a central place in our national development strategy.”

He also highlighted the government’s decision to waive interest on agricultural loans of up to Tk 10,000 shortly after taking office.

“At a time when the country faces substantial domestic and external debt obligations, along with nearly Tk 600,000 crore in non-performing loans, this initiative carries considerable strategic importance,” he said.

Calling on the media to focus greater attention on the sector, Swapan urged journalists to produce more in-depth reports on the opportunities and challenges facing the agriculture and agro-processing industries.

“Such reporting can contribute to more informed policymaking. As the information minister, I will make every effort to compile these reports and ensure they reach the relevant policymakers,” he added.

Speaking at the event, Pran Group Managing Director Ilias Mridha described agro-processing as one of Bangladesh’s most promising industries.

“In a country where agriculture remains a key pillar of the economy, the agro-processing sector can make an even greater contribution to economic development if supported by the right policies and direction,” he said.

“It also has the potential to emerge as one of the country’s leading export sectors after the ready-made garment industry,” he added.

Mridha said the award aims to encourage journalists to explore and highlight both the opportunities and challenges within Bangladesh’s agro-processing industry.

Among others present at the event were Hasan Hafiz, president of the National Press Club and editor of the Bangla daily Kaler Kantho, and Kamruzzaman Kamal, marketing director of Pran-RFL Group.

In the print media category, awards were given to Sukanta Halder, staff reporter at The Daily Star, and Rafikul Islam and M Munir Hossain of The Daily Sun.

In the television category, the winners were Delowar Hossain Dolon of Channel 24 and Rakib Hossain of Ekattor TV.

In the online media category, the award winners were Nazmul Hossain of Jagonews24.com and Shariful Rukon of Ekusheypatrika.com.

The winners were selected by a three-member jury board based on special reports focusing on the agro-processing sector.

The jury board members were Professor Robaet Ferdous of the Department of Mass Communication and Journalism at the University of Dhaka; Khurshid Ahmad Farhad, general manager of Bombay Sweets & Co Ltd; and Mohammad Touhidul Islam, director of outreach and communication at Transparency International Bangladesh.

Introduced for the first time by Pran Group, the Bangladesh Agro-Industry Media Award aims to recognise journalists whose reporting contributes to greater awareness, innovation, and development within Bangladesh’s agriculture and agro-processing industries.

The government has formed a Tk20,000 crore pre-financing scheme to revive closed industrial and service sector enterprises, aimed at bringing idle units back into operation through liquidity support from banks' surplus funds.

The fund is part of the government's earlier-announced Tk60,000 crore "production and employment revival" stimulus package, designed to restart shuttered factories, revive stalled exports, and generate jobs for unemployed youth through targeted credit support.

A central bank circular yesterday said the pre-financing scheme will run for three years. Borrowers involved in loan default, money laundering, fraud, or misuse of earlier credit facilities will not be eligible.

Banks will pay interest at a rate of 4%, while borrowers will be charged up to 7%. Interests will be waived for the first six months, after which regular repayment will begin.

The maximum loan ceiling under the scheme is Tk200 crore per entity or group. Each loan will have a tenure of up to one year, with renewal possible depending on fund availability and satisfactory repayment performance.

Who can participate

All scheduled banks may participate, but must sign agreements with Bangladesh Bank.

Eligible borrowers include large-scale industrial and service sector entities that are partially or fully shut, or operating below capacity due to working capital shortages.

Export-oriented firms and those with high export potential will receive priority. Investors taking over or leasing closed units to restart operations will also be prioritised.

Before approving loans, banks must assess the actual condition of the enterprise, production capacity, capital needs, and repayment ability. Support is intended only to address working capital gaps, not structural failures caused by mismanagement, or technical inefficiency.

Certification from relevant trade bodies such as the FBCCI, BGMEA, and BKMEA will be required to verify operational capacity. However, banks may also approve loans based on their own due diligence and investigation.

Loan proceeds cannot be used to adjust or repay existing loans. Instead, funds may be used for wages and salaries, utility bills, raw material procurement, execution of export orders, and other production-related costs.

Wage payments must be made through bank accounts or mobile financial services, not in cash. Verification of national identity cards for workers is mandatory. Salary support will be limited to a maximum of four months.

The circular said borrowers identified as loan defaulters, or individuals and entities involved in money laundering, fraud, embezzlement, or misuse of loan funds, will not be eligible.

Recovery, supervision

On recovery and supervision, the circular states that interest or profit on the borrowed funds must be paid quarterly to Bangladesh Bank.

In case of default, funds may be recovered directly from banks' current accounts held with the central bank, along with an additional 2% penalty interest.

Banks will bear full credit risk and remain solely responsible for loan recovery. The central bank will not be linked to recovery from customers under any circumstances. Defaulting borrowers will be treated under existing classification and provisioning rules.

To ensure proper use of funds, banks must submit weekly reports on beneficiary enterprises and conduct quarterly factory inspections. Bangladesh Bank may also carry out on-site inspections at any time.

Any misuse detected during inspection or audit will result in direct recovery from the bank's account, including interest and an additional 2% penalty.

Banks must follow their internal policies for borrower selection, approval, disbursement, documentation, and monitoring. They may take collateral against working capital loans, subject to existing single borrower exposure limits.

Even previously written-off loans may be considered for rescheduling or policy support under specific conditions. Such borrowers will not be classified as defaulters initially but will be recorded as SMA accounts. However, failure to repay six consecutive monthly or two quarterly instalments will result in reclassification as substandard or bad loans.

If fraud, false information, irregularities, or misuse is detected, the borrower's details may be shared with relevant government agencies for legal and punitive action. Disciplinary measures will also be taken against any bank officials found involved.