Bangladesh is set to receive 40 megawatts of electricity from Nepal via India for five months, starting from 15 June to November, under a tripartite agreement signed between Bangladesh, Nepal and India on 3 October, 2024.

Though it is symbolic given the demands that Bangladesh has now, both sides see potential to increase in the future, officials told UNB.

Nepal's hydropower potential and the increasing energy needs of Bangladesh provide ample opportunities to enhance energy cooperation between the countries.In the first ten months of the current fiscal, Nepal exported electricity worth almost Rs21 billion (about Tk25.6 billion) to India and Bangladesh. Last year, the number stood at above Rs13 billion.

Bangladesh and Nepal signed a Memorandum of Understanding (MoU) on Cooperation in the Field of Power Sector on 10 August 2018.

Under this MoU, a Joint Steering Committee (JSC) at the energy/power secretary level and a Joint Working Group (JWG) at the joint secretary level were established to facilitate collaboration and advance initiatives in the power sector.

The 7th meetings of JSC and JWG on Nepal-Bangladesh Cooperation in Power Sector were held in Dhaka on 26-27 November 2025.A tripartite Power Sales Agreement (PSA) to export 40 MW of electricity from Nepal to Bangladesh was signed on 3 October 2024 between the Nepal Electricity Authority (NEA), the Bangladesh Power Development Board (BPDB), and NTPC Vidyut Vyapar Nigam Ltd. (NVVN) of India.

The agreement came into fruition with the commencement of the export of 40 MW of electricity from Nepal to Bangladesh on 15 November 2024.As per the Agreement, Nepal has been exporting 40 MW of electricity to Bangladesh each year from 15 June to 15 November.

Negotiations are also underway regarding the 683 MW Sunkoshi III hydropower project on a joint venture basis.Bangladesh highlighted its commitment to working on long-term plans to ensure strategic partnerships and said that increasing trade volume between the two countries would be mutually beneficial.

Bangladesh Bank has removed Islami Bank's entire board of directors, including the chairman.

Mohammad Shahriar Siddiqui, assistant spokesperson and director of the central bank, confirmed the development.

He said the decision was taken today (14 June) under the Bank Company Act, 1991.

In a statement, the central bank said the board, including the chairman, was dissolved in the interest of depositors and the public.

It also added that, under Section 47(3) of the Bank Company Act, 1991, Bangladesh Bank Executive Director Mohammad Zahir Hussain has been assigned to exercise all powers and perform the responsibilities of the board.

Economists and business leaders have said the proposed budget, while compassionate and business-friendly, faces implementation risks due to ambitious macroeconomic targets, policy uncertainty and limited execution capacity.Entrepreneurship resources

The observations were made at a discussion titled “The Finance Bill 2026 Unveiled” organised by SMAC Advisory Services Ltd at Gulshan Club in Dhaka on Sunday evening.

Policy Exchange Bangladesh founder and CEO Dr. Masrur Reaz said the budget reflects a “green signal” in the current economic context, indicating a broadly supportive and accommodative stance.

“This is a compassionate budget. It has tried to support people and businesses. No major new burdens have been imposed,” he said.

He noted that the budget has attempted to ease pressure on households and businesses through tax measures and policy adjustments, offering some relief amid prolonged economic stress.

Dr. Reaz also described the budget’s policy direction as a “yellow signal,” saying it sends positive messages to investors, although concerns remain over execution and realism of targets.

He said a budget typically performs three key functions—tax and rate adjustments, allocation of public expenditure, and policy signalling.

“We usually expect the budget to solve everything, but in reality, it can only perform these three roles,” he added.Personal finance e-book

Meanwhile, Foreign Investors' Chamber Of Commerce & Industry (FICCI) President Rupali Chowdhury said listed companies and most industries are already paying multiple layers of taxes and duties depending on their business structure.

She said, “If both revenue and expenditure keep rising, the budget ultimately becomes expenditure-driven.”

She stressed that policy consistency and predictability are essential for business confidence, warning that frequent changes in corporate taxation create uncertainty.

Highlighting investment challenges, she said Bangladesh is competing with countries such as Vietnam, Indonesia and Malaysia for foreign direct investment, making policy efficiency and implementation capacity critical.

She also pointed to long-standing structural bottlenecks, including the lack of an effective one-stop service for investors, bureaucratic procedures across ministries, and infrastructure constraints.

“Our goal should be higher FDI, more employment, and ultimately higher tax revenue. But that requires transparency, accountability and a level playing field,” she said.Bangladesh economic report

She warned that unless structural weaknesses are addressed, economic pressures could intensify, with the tax burden increasingly shifting to compliant taxpayers.

The event was moderated by SMAC Advisory Services Ltd partner Snehasish Barua.

Among others, NBR First Secretary (Customs Policy Wing) Md. Tarique Hassan, Second Secretary (VAT Policy) Bodruzzaman Munshi, and Joint Commissioner of Taxes Bapon Chandra Das also attended the discussion.

High oil and gasoline prices and energy supply problems will not be solved overnight, despite an agreement to end the Iran war and open the Strait of Hormuz announced Sunday (14 June).

It will likely take months before energy companies can resume operations to the point of meeting the world's demand, according to energy experts.

The slow pace of the process of shipping and refining crude oil and doubts about the security of travelling through the strait mean the effect will not be seen immediately, they said.

Ships loaded with crude oil have been stranded in the Persian Gulf for more than three months, unable to safely travel through the waterway, through which about a fifth of the world's oil and gasoline supplies typically travelled before the war began.

"It's going to take time for people to feel comfortable and for insurance to be in place... particularly to get people on the ground to restart some of these assets," said Daniel Evans, global head of fuels and refining research at S&P Global Energy.

First, ships that have been stranded will have to exit the strait and then new tankers will have to come in to be loaded, Evans said.

"To bring a ship in, you need to be confident that you've got a big enough window of safety to bring it in, load it and move it out," he added.

Oil tankers also move slowly, he explained. It takes months to travel from the strait to distant countries, deliver the crude oil to a refinery for processing and then arrive at its final destination.

Trading in Shyampur Sugar Mills resumed on the Dhaka Stock Exchange today (14 June) after a one-day suspension imposed over an unusual surge in the company's share price, with the stock falling 8.75% to Tk218 following the reopening.

The DSE had suspended trading in the company's shares on Thursday, citing its regulatory authority to intervene in cases of abnormal price movements or suspicious trading activity in order to protect investors and ensure fair price discovery.

The exchange said the suspension was necessary because the recent rally in Shyampur Sugar's share price was not aligned with the company's financial and operational condition and warranted further examination for possible market manipulation or undisclosed price-sensitive information.

Market participants also noted that the sharp increase in the share price was inconsistent with the company's underlying fundamentals. According to market data, Shyampur Sugar Mills has remained completely inactive in sugar production since fiscal 2020-21 because of prolonged losses and outdated machinery.

The DSE said its principal objective was to ensure equal access to information for all investors and maintain orderly market conditions.

Under stock exchange regulations, trading can be suspended if listed companies fail to comply with reporting requirements, violate corporate governance rules, or fail to disclose material information, including operational shutdowns, loan defaults, or significant legal issues.

Brokerage firms, however, argue that while monitoring unusual price movements is necessary, suspending an entire stock may not always be the most effective approach. They suggest that regulators should instead focus on identifying suspicious Beneficial Owner (BO) accounts involved in potential manipulation.

The DSE said the company has been asked to provide explanations and supporting documents for the unusual price movement. A final decision on future trading will be made based on the company's response and the outcome of the investigation.

Overall, the case highlights the regulator's efforts to maintain market transparency and protect investors, even as such actions temporarily affect trading sentiment.

Mohammed Nader Khan, a sponsor and former chairman of Prime Bank PLC, has announced plans to sell 1.02 crore shares of the bank through the block market, according to a disclosure published on the stock exchanges today (14 June).

The shares are valued at approximately Tk30.54 crore based on today's closing price of Tk30 per share.

Nader Khan currently holds 4.40 crore shares, representing a 3.61% stake in the bank.

The proposed sale accounts for around 23% of his existing holdings.

According to the disclosure, the shares will be sold through the block market of the Dhaka Stock Exchange within the next 30 working days.

A block trade refers to a large, privately negotiated transaction of securities.

Following the sale, he will retain 3.38 crore shares in the bank, maintaining a significant ownership position.

Meanwhile, Prime Bank reported strong financial results for 2025, posting a consolidated net profit of Tk910 crore, up 24% from Tk732 crore in the previous year.

The bank's earnings per share rose to Tk7.84 in 2025 from Tk6.31 a year earlier, reflecting improved profitability.

The bank also maintained a solid financial position during the year.

Its net asset value per share stood at Tk40, while net operating cash flow per share reached Tk58.07, indicating strong liquidity and operational performance.

Total assets increased to Tk64,890 crore as of December 2025, underscoring continued business expansion.

The bank's Capital to Risk Weighted Assets Ratio stood at 18.07%, among the highest in Bangladesh's banking sector.

The bank's board approved a 30% dividend for 2025, comprising 25% cash and 5% stock dividends.

Shareholders approved the payout at the annual general meeting held on 21 May.

Bangladesh's gross foreign exchange (forex) reserves climbed to US$35.63 billion on Sunday after the country received more than $1.0 billion in budget support from the Asian Development Bank (ADB).Regional business directory

The country's gross foreign exchange reserves rose to $35.63 billion on Sunday from $34.73 billion on June 10 following the disbursement of ADB budget support funds, officials said.

According to the latest data from the Bangladesh Bank (BB), reserves measured under the International Monetary Fund's (IMF) Balance of Payments and International Investment Position Manual, Sixth Edition (BPM6), increased to $31.07 billion from $30.08 billion during the same period.

"We are now capable of meeting around six months' worth of import payment obligations with the existing reserves," a senior Bangladesh Bank official told The Financial Express (FE).

Bangladesh's actual imports, measured by the settlement of letters of credit (LCs), declined by 4.14 per cent to $50.43 billion during the July-March period of fiscal year (FY) 2025-26, compared with $52.61 billion in the corresponding period of the previous fiscal year.

Meanwhile, the opening of fresh LCs, commonly known as import orders, rose marginally by 0.35 per cent to $53.94 billion during the period under review, up from $53.75 billion a year earlier.

The central bank official said the country's gross forex reserves could exceed $36 billion by the end of June if the government receives additional external financing.

Earlier, on May 10, the gross forex reserves fell to $34.14 billion after Bangladesh settled $1.51 billion in import payment liabilities to member countries of the Asian Clearing Union (ACU).Personal finance e-book

Bangladesh Bank officials said stronger remittance inflows and lower import payment obligations have also helped improve the country's reserve position in recent months.

The central bank's purchase of US dollars from commercial banks has further supported reserve growth, according to officials.

Bangladesh Bank has bought a total of $6.42 billion from commercial banks since July 13 last year under the prevailing market-based, free-floating exchange rate regime, BB data showed.

Britain’s economy contracted in April as the Middle East war hit growth, official data showed Friday, dealing a setback to Prime Minister Keir Starmer as he grapples with a political crisis.

Gross domestic product fell 0.1 percent in April following growth of 0.3 percent in March, the Office for National Statistics said in a statement.

The reading matched analysts’ expectations and followed a stronger-than-expected performance in the first quarter. Surging energy prices triggered by the war, which began with US-Israeli strikes on Iran on February 28, have reignited inflationary pressures and threatened to derail growth.

“Before the conflict in the Middle East, growth was higher than expected and inflation was falling,” finance minister Rachel Reeves said in response to the figures.

“This is not a war we wanted or joined, but one that will have an impact at home,” she said.

The weak economic showing dealt a fresh blow to Starmer, who is facing calls to step down.

Britain’s defence and armed forces ministers quit Thursday in a row over military spending, further weakening Starmer’s authority just a week before a by-election that could prompt a bid to replace him.

Defence Secretary John Healey resigned warning that Starmer’s long-awaited Defence Investment Plan for funding over the next decade -- which the leader has yet to publish -- risked making Britain “less safe”.

“The effects of the conflict in the Middle East are now well and truly showing up in the economic data, and it isn’t pretty reading for the UK,” said Stuart Clark, portfolio manager at Quilter.

“We expect the economy to continue to fade as the year goes on, and particularly for as long as there is no lasting peace deal in the Middle East,” he added.

The extreme ​volatility of global oil prices has drained liquidity from the market this year at the fastest pace ‌on record, as investors have become increasingly wary of committing cash to an asset that has become hostage to US President Donald Trump’s daily social media posts on the Iran war.

Liquidity, or how well matched the number of buyers is to the number of sellers, is the ​product of a number of factors, including traded volume and open interest.

Open interest, or the number of Brent ​crude futures contracts that investors own, has fallen by nearly 17 percent this year, the fastest rate since at least 2009, according to LSEG data .

Trump’s pattern of ratcheting up threats against Tehran, only to assert hours later ​that a peace deal is imminent, as well as the difficulty in tracking real-world oil fundamentals right now, has led ​to a degree of fatigue among investors, traders say.

“People are exhausted by this chaos. They want this to be over. You cannot trade futures without being constantly burned in an environment when the messaging changes every other hour,” a senior executive from a major trading desk said. ​The executive asked not to be named due to the sensitivity of the matter.

Oil prices fell nearly 3 percent to their lowest ​in nearly two months on Friday after Trump called off threatened new strikes on Iran on Thursday, saying a deal to end ‌the war was close.

The front-month August Brent futures contract registered the lowest open interest since last July when it became the most-actively traded at the start of this month, with 534,227 lots. Open interest peaks at the start of the month and gradually dwindles until expiry of the contract, at which point, it shifts to the next month in the ​chain.

When liquidity becomes thin, buyers and ​sellers must often accept far higher, or lower prices than they otherwise would, because of a dearth of willing counterparties, thereby creating larger price swings. This increases possible rewards, but also the risk of losses.

Former ​Goldman Sachs commodities chief Jeffrey Currie said this week the real reason the oil ​price had not returned meaningfully above $100 a barrel in the past few weeks was not a sign of supply - which has been severely constricted by the near-closure of the Strait of Hormuz - being plentiful, but rather of what he called “capital aversion”.

“Policy uncertainty has made oil too volatile to ​hold,” he said in a post on X on June 10.

“2026 year-to-date open interest ​decline is the worst on record. Unlike 2022, there’s no rates shock or sanctions forcing the exit. This is capital aversion,” Currie, who is a ​senior adviser to alternative asset manager Carlyle, said.

Business leaders have welcomed the proposed national budget for FY2026-27, describing it as a positive step for the private sector and evidence of a shift in the government's approach toward businesses and investors.

The observations were made at a seminar titled "The Finance Bill 2026 Unveiled", organised by SMAC Advisory Services Limited at Gulshan Club in Dhaka on Sunday (14 June).

Speaking at the event, Foreign Investors' Chamber of Commerce and Industry (FICCI) President Rupali Chowdhury said the budget had been well received by investors.

"The budget is really welcome. We have seen a change in the government's mindset," she said.

However, she noted that several longstanding issues affecting businesses and investors remain unresolved and require immediate attention.

"Time is running out. The issues that still exist need to be resolved quickly," she said.

Referring to the imposition of supplementary duties and other tax measures, she said certain sectors, including the beverage industry, continue to face a growing tax burden.

She also stressed that attracting foreign direct investment (FDI) would require more than competitive labour costs.

"The ground reality for companies is still challenging. FDI will not come simply because of cheap labour," she said.

Dr M Masrur Reaz, chairman of Policy Exchange Bangladesh, said, "The biggest positive aspect of the budget is that it sends a good signal to businesses and taxpayers."

He warned that containing inflation would remain one of the government's most pressing challenges.

During the seminar, Snehasish Barua, director of SMAC Advisory Services Limited, outlined key changes proposed in the Finance Bill relating to income tax, value-added tax (VAT) and customs duties.

Zareen Mahmud Hosein, Sukanta Bhattacharjee, director of SMAC Advisory Services Limited, and senior officials of the National Board of Revenue (NBR) also spoke at the event.

The dollar steadied on Friday but remained on track for a weekly loss, as markets monitored negotiations over a deal that could end the Middle East conflict. Traders were also digesting unprecedented demand for shares in SpaceX, which raised $75 billion in an initial public offering and jumped about 20 percent in its Nasdaq debut.

The euro was little changed at $1.15725, hovering near a one-week high and set for a weekly gain after the European Central Bank delivered its first interest rate hike in three years on Thursday.

Leaked terms of a proposed memorandum to end the war in the Gulf, outlined by Western, Pakistani and Iranian sources on Friday, appeared to favor Iran, drawing criticism from US President Donald Trump who called the reports inaccurate. Trump’s announcement on Thursday regarding a deal had prompted Wall Street shares to rally, oil prices to slip and the US dollar to fall.

Markets are pausing as they assess the prospects for peace and the impact of the SpaceX IPO, with investors watching whether funds will shift from equities or cash, said John Velis, FX and macro strategist at BNY.

“The hoped-for good news on the ceasefire in the Middle East had a big reaction overnight and I think we came in this morning and we have the SpaceX IPO and a bunch of central bank meetings next week,” Velis said.

The US dollar was up 0.18 percent against Japan’s currency at 160.225 yen, holding near a key level that often triggers concern about intervention from Tokyo.

The pound was steady at $1.34145. Data showing the UK economy contracted in April had little impact, with markets focused on Iran talks.

The US dollar index, which measures the greenback against a basket of six currencies, was flat at 99.75 after hitting a one-week low on Thursday. Investors have tended to buy the safe-haven dollar when tensions in the Iran war flare, and sell it in favor of riskier assets such as stocks when peace talks appear to make progress.

Bangladesh's foreign exchange reserves have risen to $31.08 billion after the Asian Development Bank (ADB) disbursed $1 billion in budget support, according to a statement from the central bank issued today (14 June).

The funds, released as part of ADB's budget assistance for Bangladesh, were added to the country's foreign currency holdings, pushing the reserves to just over the $31 billion mark.

According to updated data from the Bangladesh Bank, reserves stood at $30.07 billion on 10 June.

The latest inflow from the Asian Development Bank resulted in a sharp increase over the weekend.

Officials said additional disbursements from other development partners are expected in the coming months, which could further strengthen the reserve position.

The entire Board of Directors of embroiled Islami Bank Bangladesh PLC, led by its new chairman, stands dissolved in a latest regulatory move aimed at safeguarding interests of the bank, its depositors and the public.Regional business directory

According to a statement issued Sunday, the central bank exercised its authority under Sections 45 and 47(3) of the Bank Company Act 1991 to cancel the appointments of all directors of the country's largest Shariah-based bank.

"The decision has been taken in the interest of the bank, depositors and overall public interest," says the Bangladesh Bank (BB) statement.

Under the Act, Mohammad Zahir Hossain, an Executive Director of the central bank, has been entrusted with exercising "all powers and carrying out all responsibilities of the Board of Directors".

A senior BB official told The Financial Express (FE) that Mr. Hossain will perform all functions and responsibilities of the Board of Directors until a new board is formed.

Earlier in the day, the Bangladesh Bank injected Tk 25 billion into the cash-strapped Islami Bank in a special loan to help mitigate its severe liquidity crunch after the Eid vacation.

This sum happens to be the first tranche of Tk 100 billion the Islamic lender last week sought in liquidity assistance from the banking regulator for overcoming the liquidity starvation, Islami Bank officials have said.

The central bank disbursed the financial support to the country's largest Shariah-based bank on Sunday, according to BB spokesperson Arief Hossain Khan.Personal finance e-book

The unconventional bank plunged into a severe trouble in terms of managing liquidity following days of unrest that erupted after the Eid-ul-Azha holiday over the appointment of its new chairman Md. Khurshed Alam.

A group of people who claimed to be clients of the bank started the protest on June 01 under the banner of 'Islami Bank Sachetan Grahok Forum (Islami Bank Conscious Customers' Forum)'.

The continuous agitation triggered panic among many of the depositors who keep withdrawing funds from the beleaguered bank.

As a matter of fact, Islami Bank's liquidity position deteriorated sharply in recent days, resulting in a struggle to meet growing withdrawal demands.

In spillover effect, the bank also reportedly failed to maintain the requisite Cash Reserve Ratio (CRR) with the central bank.

Later in the day, a delegation from Islami Bank met BB governor Md. Mostaqur Rahman at the central bank headquarters briefing him on the bank's current liquidity situation.Investment guide

The delegation comprised Islami Bank's managing director (current charge), two additional managing directors, and six deputy managing directors.

Seeking anonymity, an Islami Bank official says they informed the central bank governor that the trend of cash withdrawal keeps intensifying, leading to the struggle.

Despite the crisis, they managed to settle the cash-withdrawing demand. "That's why we appealed for the central bank, the lender of the last resort."

About the cash withdrawals, the Islami bank official says they have observed the net volume of cash withdrawal having reached around Tk 12 billion a day in the last couple of days.

"And the governor, during the meeting, wanted to know how the bank is using the funds provided to the bank in the meeting and they informed him in detail."

The Chittagong Stock Exchange (CSE) is aiming to launch Bangladesh's first commodity exchange this year, with its Managing Director M Shaifur Rahman Mazumdar, saying the bourse could go live within three to four months once it receives the remaining regulatory approvals.

Speaking at a post-budget press conference held at the CSE conference hall today (14 June), Shafiqur said the exchange's technological infrastructure is fully ready and efforts to build market awareness are in their final stages.

"We could have launched the commodity exchange a year earlier had the government's thinking and the regulatory authorities' approach been aligned with our roadmap," he said.

Shafiqur added that the government's latest budget has explicitly mentioned the establishment of a commodity exchange alongside other infrastructure development initiatives, removing a major policy hurdle.

"We have already placed our proposals before the regulator. If the new regulatory authority approves the brokers and products we have proposed, we will be able to go live within three to four months," he said.

"We are hopeful that since government policy is now aligned with our programme, the commodity exchange will be launched within this year."

Commodity derivatives to be introduced first

Shafiqur clarified that the planned exchange would initially operate as a commodity derivatives platform rather than a spot market involving physical delivery of goods.

"There is a misconception that a commodity exchange means physically delivering commodities. In reality, there are two types of exchanges – spot exchanges, where physical delivery takes place, and derivatives exchanges, where futures and options contracts are traded," he said.

According to him, CSE plans to start by allowing the trading of commodity futures contracts, enabling investors, hedgers and participants across the commodity value chain to manage risks through a transparent marketplace.

Under futures trading, participants enter contracts by depositing margins, while the exchange's technology platform ensures real-time adjustment and risk management.

"Our objective is to provide a platform for price discovery, hedging and risk management," Shafiqur said.

What is commodity exchange

According to Shafiqur, a commodity exchange is a regulated marketplace where commodities or contracts linked to commodities are traded, much like shares are traded on a stock exchange.

These commodities can include precious metals such as gold and silver, agricultural products such as rice and wheat, and imported goods such as crude palm oil.

Commodity exchanges generally operate either as spot markets, where physical delivery of goods takes place, or as derivatives markets, where futures and options contracts are traded without the immediate exchange of the underlying commodity.

By enabling participants to discover fair prices, hedge against price volatility and manage risks, commodity exchanges help create more transparent and efficient markets.

They can also benefit producers, including farmers, by allowing them to secure prices for their products in advance, reducing uncertainty and distress sales.

Gold, silver and crude palm oil are proposed as initial products

CSE has proposed launching the platform with gold, silver and crude palm oil futures, considering them relatively straightforward products with internationally recognised pricing benchmarks.

"Gold and silver prices are globally available and well understood. Crude palm oil is an important product for Bangladesh. If we can successfully launch the platform with these products, we can gradually bring other essential commodities into the market," he said.

Shafiqur said agricultural products could eventually be incorporated into the exchange, creating opportunities for producers to secure prices for their goods months before harvest.

"If agricultural products are introduced, producers will be able to trade their future output in advance. Farmers would face less pressure to sell immediately after harvest and could better manage price risks," he said.

He added that any product introduced on the exchange would require approval from the regulator, ensuring appropriate checks and balances, particularly for sensitive commodities.

Farmers could benefit through guaranteed pricing

Shafiqur argued that commodity futures markets could strengthen farmers' bargaining power by allowing them to lock in prices before bringing products to market.

"If farmers can secure prices in advance, the pressure they currently face at the time of sale will reduce significantly," he said.

He cited rice as one of the agricultural products CSE may consider in the future if the initial phase proves successful.

Lessons from India's experience

Director Major (Retd) Emdadul Islam pointed to India's commodity exchange experience as an example of how organised markets can improve quality standards and pricing.

Referring to India's cotton sector, he said commodity exchanges helped organise producers, establish scientific storage facilities and ensure both quality assurance and fair prices.

"Farmers became assured of prices and quality, while users gained confidence that they would receive products of a certain standard," he said.

Emdadul noted that Bangladesh often experiences severe price volatility and post-harvest losses in agricultural products due to inadequate storage and fragmented markets.

"Many times farmers are forced to throw away products or sell at distress prices because they have no bargaining power," he said.

Emdadul added that a well-functioning commodity exchange could improve price transparency and reduce inefficiencies in markets ranging from agricultural goods to imported essentials such as edible oils.

"We are operating with an imperfect market serving 180 million people. A perfect market requires proper price discovery and advance certainty. Commodity exchanges can contribute to that process with the support of regulators and the government," he said.

The benchmark index of the Dhaka Stock Exchange climbed above the 5,600-point mark for the first time in more than nine months today (14 June), as investors responded positively to the post-budget policy environment and expectations of stronger economic conditions.

The DSEX gained 105 points, or 1.9%, to close at 5,625. The blue-chip DS30 index rose 47 points to 2,120, while the Shariah-based DSES advanced 14 points to 1,129.

Market turnover increased by 9.6% from the previous session to Tk1,358 crore. Of the issues traded, 246 advanced, 96 declined and 50 remained unchanged, reflecting broad-based buying interest across the market.

Analysts said investors welcomed a range of policy measures outlined in the budget, including support for private-sector growth, liquidity-enhancing initiatives and expectations of improving global economic conditions.

Demand strengthened across several major sectors, including banking, financial institutions, manufacturing and engineering, while rising turnover pointed to stronger participation from both institutional and retail investors.

However, market participants cautioned that sustaining the rally would depend on the effective implementation of policy measures, improved liquidity and continued structural reforms.

Akramul Alam, head of research at brokerage firm Royal Capital Ltd, said several positive factors contributed to the strong performance of the stock market on the day.

He said that although the budget did not offer direct incentives to investors, changes in taxation and measures viewed as unfavourable by dividend-focused investors had prompted a shift in investment strategies.

"As a result, many investors are reallocating their portfolios away from dividend-yielding stocks towards sectors with higher capital gain potential," he said, adding that this had increased buying pressure, particularly in banking, financial institutions and engineering stocks.

He also said the government's Tk60,000 crore rescue package for closed factories was expected to improve short-term liquidity in the market. "This injection is likely to increase the velocity of money, creating a more active trading environment and supporting overall market momentum," he said.

According to Akramul, plans to gradually shorten the settlement cycle from T+2 to T+0 have also strengthened investor confidence, as faster settlement is expected to attract more active traders and improve participation over time.

On the international front, he said easing tensions involving Iran and lower crude oil prices were positive developments for the global economy.

"If oil prices stabilise at normal levels, it would help control inflation in Bangladesh and ensure a more stable energy supply," he said.

Akramul added that buyers had outnumbered sellers for several weeks, indicating sustained accumulation and strong market momentum.

He also noted that the Tk2,500 crore liquidity support provided to Islami Bank had boosted the bank's share price, contributing to the rise in the benchmark index.

DSE Brokers Association President Saiful Islam said the health of the market should not be measured solely by movements in the index.

"The true strength of the stock market should not be judged only by the rise in the index, but by the level of investor confidence in the market," he said.

He said sustainable growth would depend on restoring and maintaining investor trust. If coordinated efforts by policymakers, regulators and market stakeholders continue, both turnover and the benchmark index could grow in a more stable and consistent manner.

Saiful also said several external economic indicators were turning favourable for Bangladesh, helping improve sentiment in the capital market.

He expressed hope that the domestic economy would strengthen gradually as broader macroeconomic conditions improved.

"If the underlying economic fundamentals continue to recover, the stock market will also benefit through higher participation, improved liquidity flow and reduced volatility," he said.

"Over time, this would help the market move towards greater stability and more balanced growth in both trading activity and index performance," he added.

In its daily market review, EBL Securities said the benchmark index of the capital bourse surpassed the 5,600-mark as favourable fiscal policy measures aimed at reviving private-sector growth and incentives for long-term capital market development bolstered investor confidence and fueled broad-based accumulation across the market.

The brokerage said the market remained firmly positive from the opening bell, with optimism driving sustained buying interest throughout the session and lifting share prices across most sectors.

General insurance stocks accounted for the largest share of turnover, contributing 15.4% of total market activity. The pharmaceutical and banking sectors followed, each accounting for 11.9%.

Most sectors finished higher. Financial institutions led the gains with a 4.4% rise, followed by banking stocks, which gained 3.3%, and information technology shares, which advanced 3.2%. The miscellaneous sector was the only major loser, declining by 3.5%.

Meanwhile, the rally extended beyond Dhaka, with the Chittagong Stock Exchange also ending higher. The Selective Categories' Index (CSCX) rose 91.1 points, while the All Share Price Index (CASPI) gained 147.6 points, reflecting broad-based optimism across the country's two stock exchanges.

Gold prices have fallen sharply in 2026 despite a major conflict involving the United States, Israel and Iran, challenging the precious metal's traditional reputation as a safe-haven asset during periods of geopolitical turmoil.

Prices have declined from a January peak of $5,303 per troy ounce to around $4,235, marking the lowest levels of the year even as tensions in the Middle East continue, says Al Jazeera.

Why is gold usually considered a safe-haven asset?

Investors often buy gold during periods of economic uncertainty, geopolitical conflict or inflation because it is viewed as a store of value that can preserve wealth when other assets come under pressure.

However, gold's performance can also be influenced by factors such as interest rates and the strength of the US dollar.

How has the conflict affected the economy?

The current economic environment has been shaped by the US-Israel war against Iran, which began in late February.

Iran's response has included blocking the Strait of Hormuz, a key route for global oil and gas shipments. The disruption has driven energy prices higher and pushed US inflation to a three-year high of 4.2%.

Why has higher inflation not helped gold?

Although gold is often used as a hedge against inflation, investors are increasingly focused on the possibility of higher interest rates.

Gold is a non-yielding asset, meaning it does not pay interest or dividends. Investors earn returns only if its price rises.

When interest rates increase, assets that generate income become more attractive relative to gold. As a result, demand for the metal can weaken even during periods of elevated inflation.

What has changed in interest rate expectations?

Earlier in 2026, financial markets expected interest rate cuts.

Those expectations have shifted as inflation has remained elevated and the labour market has stayed resilient. Investors now see a 50% probability that interest rates could be raised by December.

The prospect of tighter monetary policy has increased pressure on gold prices.

What role does the US dollar play?

The conflict has strengthened the US dollar, creating another headwind for gold.

Because gold is priced in dollars, a stronger US currency makes the metal more expensive for buyers using other currencies. This can reduce demand and weigh on prices.

Analysts describe the current dynamic as a balance between inflation, which would normally support gold, and rising interest-rate expectations, which are currently exerting greater influence on the market.

What is the outlook for gold?

Gold prices have recovered slightly following reports of a potential agreement between the United States and Iran.

Market participants say a ceasefire could help ease inflationary pressures by reducing disruptions to energy markets. However, gold may continue to face challenges in the coming months as central banks respond to the recent surge in inflation and investors assess the future path of interest rates.

The government's proposed budget for the 2026-27 financial year (FY27) has been built on outdated economic assumptions that completely ignore the ongoing Middle East conflict.

The oversight has resulted in artificially depressed allocations for subsidies and public debt servicing, leaving key macroeconomic projections detached from current global and domestic realities, according to budget documents, discussions with government officials and independent analysts.

Despite a sharp increase in subsidy requirements following the escalation of conflicts involving Iran, the United States, and Israel, the government has proposed slashing subsidy allocations for FY27 to Tk89,538 crore. This represents a drop of over Tk19,000 crore—nearly 18%—compared to actual spending in FY25.

Similarly, the proposed allocation for public debt interest payments has been cut to Tk127,500 crore—roughly Tk9,000 crore lower than the FY25 expenditure—even though total public debt stock is projected to surge to Tk26.33 lakh crore by FY27.
Formulated on pre-war assumptions

Ministry of Finance sources revealed that the revised FY26 budget and FY27 projections rely on data approved back in November last year by the interim government's Coordination Council on Fiscal, Monetary and Exchange Rate Matters, chaired by then Finance Adviser Salehuddin Ahmed.

Although the council met again in April after the BNP government took office in February, the projections were never updated to account for the Middle East crisis that erupted in late February.

The omission is explicitly acknowledged in a footnote within the Medium-Term Macroeconomic Policy Statement, released alongside the budget on 11 June:

"The projections presented are based on data covering July-November of FY2025-26 approved by the coordination council for the revised budget. As such, the effects of the Middle East conflict were not captured in the underlying data used for these estimates... As a result, some projections may, in retrospect, appear somewhat overstated when considered in more recent context and available information."

The conflict has severely disrupted regional energy markets, driving up global prices for oil, gas, coal, and fertiliser. Finance Minister Amir Khosru Mahmud Chowdhury recently admitted that these surging import costs have already saddled the current fiscal year with an additional subsidy burden exceeding Tk42,600 crore.The conflict has also contributed to a renewed rise in inflation and weakened momentum in both imports and exports after earlier signs of improvement.

Questions over macroeconomic

forecastsEconomists and policy analysts have heavily criticised the ministry's ambitious growth, inflation, and credit targets, pointing out that they defy current trends.

According to official data, inflation rose to 9.42% in May, while average inflation during the first 11 months of FY26 stood at 8.63%. Despite this, the finance ministry projects inflation will fall to 7% by the end of the fiscal year and has forecast average inflation of 7.5% for FY27.

Similarly, export earnings recorded negative growth of 2.55% during the first 11 months of FY26. Nevertheless, the government expects export growth to reach 9.02% by the end of the fiscal year and has projected growth of 7.94% for FY27.

Bangladesh Bank data show private sector credit growth slowed to 4.75% in April. However, the finance ministry expects credit growth to accelerate to 8% by June and further to 9.42% in FY27.

The Centre for Policy Dialogue (CPD) has openly questioned whether these targets are remotely achievable. CPD Executive Director Fahmida Khatun noted that the revised budget failed to ground itself in actual implementation progress.

"The projections and targets are unlikely to be achieved because they were formulated based on conditions that no longer exist," Dr Khatun told The Business Standard. "Many assumptions are entirely inconsistent with current realities."

Artificially compressed expenditure

Before the intensification of the Middle East conflict, softening global commodity prices and a weakening US dollar had kept Bangladesh's subsidy bill manageable. That window has closed, yet the budget reflects the opposite reality.

That situation has changed dramatically. Despite this, the proposed subsidy allocation for FY27 has been reduced compared with both actual spending in FY25 and revised estimates for FY26.

Government records show actual subsidy expenditure reached Tk108,673 crore in FY25. The revised allocation for FY26 has been estimated at Tk95,031 crore, while the proposed allocation for FY27 stands at Tk89,538 crore.

A similar pattern is evident in debt servicing.

The government spent Tk1,36,123 crore on interest payments in FY25, when total public debt stood at Tk21.44 lakh crore. Budget documents project public debt will increase to Tk26.33 lakh crore in FY27. Nevertheless, the proposed allocation for interest payments has been reduced to Tk127,500 crore.

Finance Division officials privately concede that if international commodity prices remain elevated or domestic energy tariffs are not hiked, actual subsidy requirements will wildly exceed the budget. They estimate that debt servicing alone will require an additional Tk15,000 crore over the current allocation.

Operating expenditure compressed

On paper, the government has managed to compress operating expenditure to 66.30% of total spending in FY27, down from 72.73% in the revised FY26 budget. Officials claim this reduction accommodates a 50% boost to the Annual Development Programme (ADP) and welfare initiatives, alongside a Tk33,812 crore block allocation for a new public sector pay scale.

Additional block allocations include Tk4,000 crore for unforeseen expenditure and Tk2,041 crore under other expenditure categories.

However, insiders suggest the numbers are a mathematical placeholder. One ministry official hinted that slow implementation of development projects and delays in the planned expansion of the 41-lakh Family Card welfare scheme will likely result in funds being quietly diverted later in the year to cover the inevitable overruns in subsidies and debt interest.

Neither the finance minister nor Finance Secretary Khairuzzaman Mozumder directly responded to questions from TBS at a post-budget press briefing regarding whether operating expenditure had been understated in the proposed budget.

The Dhaka bourse is set to shorten its trading settlement cycle from T+2 to T+1 by December this year, a move aimed at boosting trading volume.
FE

A committee comprising representatives of Bangladesh Bank (BB) and the Dhaka Stock Exchange (DSE) has already begun working to identify the changes needed for a smooth transition, said DSE Managing Director Nuzhat Anwar. The committee was formed after a DSE delegation met with the central bank's governor at his office.Bangladesh investment opportunities.Bangladesh economic report

The primary task in this transition will be to extend banking hours in alignment with the new settlement cycle.

"We are yet to declare any time to start the T+1 trading cycle. But we are optimistic that it will happen by December this year," Ms Nuzhat said, adding that things were moving positively with the cooperation of the central bank and that she did not see any major obstacle.

The securities regulator is also aware of the progress and will facilitate the introduction of the new settlement cycle by approving amendments to the trade settlement regulations, the DSE chief added.

At present, the DSE operates on a T+2 settlement cycle, which defines the time between when a trade is placed and when it is fully settled - that is, shares and cash transferred - through brokers, the exchange, banks and the depository authority, Central Depository Bangladesh Ltd (CDBL).

To illustrate, consider an investor who purchases shares on a Sunday through a broker under the T+2 cycle. The exchange receives the money from the buyer's broker on Monday through the banking system. The funds are then transferred to the seller's broker the following day, by which time CDBL transfers the shares into the buyer's beneficiary owner's (BO) account. Sunday trades are thus fully settled by Tuesday.

Under a T+1 cycle, the exchange would need to receive funds from the buyer's broker on the same day the shares are purchased. The funds would then be transferred to the seller's broker and the shares credited to the buyer the next day.

For this to work, extending banks' Real Time Gross Settlement (RTGS) hours is essential, as trades are not complete until funds are transferred by banks. Currently, banks settle funds until 4:00pm, a deadline that would need to be extended to accommodate the T+1 cycle - making the central bank's intervention crucial.

"One or two regulations might need changing too. That's not very difficult," Ms Nuzhat added.

Faster settlement will facilitate faster trade turnover. It is also one of the requirements Bangladesh must meet for its frontier market to be upgraded to emerging market status.Bangladesh investment opportunities

"If we consider competition for foreign investments, our competitors - bourses of other countries including those of India - have already made significant progress," Ms Nuzhat said.Market trend analysis

Ironing out risks in the T+1 settlement cycle

Executing trades within the T+1 cycle requires the exchange to receive funds from buyers' brokers on the day of purchase. However, there may be instances of delays in receiving cheques or in their encashment. In such cases, the buyer's broker will have to cover the funds, making capital adequacy a critical requirement for brokers to avoid any disruption in trade settlements.

Md. Ashequr Rahman, managing director of Midway Securities, emphasised the importance of broker capital adequacy for the smooth running of the T+1 cycle.

He also said the T+1 cycle should initially be applied only to stocks with high liquidity. Investors who typically put money into blue-chip stocks of the DS30 index tend to have sufficient funds and financial literacy.

"So, I think, the DSE should apply the T+1 cycle to the stocks in the DS30 index," Mr Rahman said, noting that India too had not introduced the T+1 cycle across all listed companies at once.

The finance minister, in his budget speech, stressed the need for capital market reforms, one of which would be a gradual shift in the settlement cycle from T+2 toward T+1 and eventually T+0.

A backlog of more than Tk5,000 crore in government reimbursements for remittance incentives has persisted for over nine months, putting pressure on commercial banks' liquidity and profitability.

Banks disburse a 2.5% cash incentive to expatriates on remittance inflows on behalf of the government and are later reimbursed through the central bank. However, bankers say the arrears continue to accumulate as these reimbursements remain unsettled.

According to available data, the outstanding amount stood at Tk4,000 crore in December 2025 and has since risen by a further Tk1,000 crore over the past six months. Ten banks alone account for Tk3,701 crore of the unpaid incentives as of June this year.

Liquidity strain and profit pressure

Bankers say they are funding the incentive payments from deposit mobilisations, which is restricting their ability to deploy funds in income-generating assets. As a result, a portion of deposits remains uninvested or is diverted from normal lending operations.

Speaking to TBS, they noted that banks typically use such funds in short-term government securities, where annual returns are estimated at around 10.20%. One private-sector banker said if Tk5,000 crore had been invested in one-year Treasury bills, banks could have earned about Tk383 crore in interest over nine months.

Instead, banks are reportedly financing costs, including deposit interest payments estimated at around Tk300 crore, without generating equivalent returns from the delayed reimbursement funds.

A senior policymaking official at a private bank said the mismatch between funding costs and delayed government payments is eroding profitability and may weaken banks' incentives to mobilise remittances in the coming months.

Rising burden on individual banks

A managing director of a private commercial bank said his institution alone is awaiting nearly Tk700 crore in reimbursement, which he said has significantly affected its liquidity planning and investment decisions. He added that timely payment would have reduced the need to fund incentives from deposits and could have allowed investment in Treasury bills at returns of around 10.20%.

Mohammad Ali, managing director of Pubali Bank, said the outstanding amount is currently recorded as an asset in accounting terms but does not generate income. He warned that prolonged delay could force banks to make provisions if repayment is not secured.

He estimated that full investment in Treasury bills could have generated over Tk500 crore annually in interest income for the banking sector.

Islami Bank Bangladesh, which channels the highest volume of remittance, holds an outstanding incentive claim of approximately Tk1,350 crore up to June.

System-wide concerns over remittance flows

Bankers said the rising volume of remittances has increased the government's incentive burden, while delays in reimbursement have worsened funding stress. They added that banks are increasingly reliant on deposit mobilisation to bridge the gap, putting pressure on balance sheets.

A senior treasury official said reimbursements were previously settled within a month, but are now being released roughly every three months, creating significant strain on liquidity management.

Another banker noted that earlier the scheme operated on an advance funding basis with quicker settlements, but delays have gradually increased over the past one and a half years.

Fiscal constraints and government borrowing

Bankers also linked the delays to broader fiscal pressures, noting that government revenue collection has weakened and borrowing from banks has increased. The government has set a borrowing target of Tk1,12,000 crore from the banking system in the upcoming fiscal year.

Central bank assurances

The issue was actively discussed at a recent bankers' meeting, where bank managing directors raised their concerns directly with central bank leadership.

Bangladesh Bank Governor Md Mostaqur Rahman assured the top executives that the central bank would liaise with the finance ministry to ensure the outstanding dues are cleared within the current fiscal year. Industry insiders expect fund releases to begin in earnest in July.

When contacted, Bangladesh Bank spokesperson and Executive Director Arief Hossain Khan clarified that the matter falls under the purview of the fiscal authority rather than the central bank.

"Since the government is providing the subsidy, the funds will definitely come. There may be a delay, but there is absolutely no chance of non-payment," he said.

Omega’s Constellation watch has been flashed in campaigns, movies and at the Met Gala by stars like George Clooney and Nicole Kidman, turning it into a symbol of luxury and glamour. But with gold prices near record highs struck in January, some such classic watches are being melted down as the value of their metal content outstrips their resale worth.

Used models by the likes of Omega and LVMH’s TAG Heuer are most hit by the trend, according to Reuters interviews with over a dozen traders, industry experts, and investment advisers.

British dealer Jon White of Gold Traders melted down an 18-carat late-1970s Constellation in excellent condition in May, one of dozens of mainstream luxury watches he has had scrapped this year as demand for investment gold has risen.

“Beautiful watch. But in reality, had the customer consigned that to auction, what would they have achieved?” White, who also manages an auction house, told Reuters. The gold content of the Constellation watch, one of many models produced by Swatch-owned Omega, was worth £5,750 ($7,749), 35 percent more than its estimated £4,000-4,500 auction value, White said.

James Lamdin, founder of Watches of Switzerland’s second-hand unit Analog Shift, said melting was “primarily happening with contemporary pre-owned and also with older vintage watches that are not already collectible.”

Spokespersons for Swatch and Rolex said they would not comment for this story. LVMH, Richemont, Patek Philippe and Audemars Piguet did not respond to requests for comment.

LIQUID GOLD

Gold prices surged to a record $5,600 an ounce in January as geopolitical concerns and trade worries pushed investors towards safe-haven precious metals. Gold now hovers around $4,200 per ounce, almost double its 2024 average. The market price for used watches has not moved in the same way, however.

“I find it very sad, because obviously once something has been melted, it’s gone forever,” said Adrian Hailwood, a specialist in horological history.

There are no official figures showing how many luxury watches are being melted. World Gold Council data shows overall gold recycling in the first quarter rose 5 percent to 366 tonnes, while gold jewellery demand rose 31 percent in value to $47 billion.

Watches can hold anything from a sliver of gold to more than 200 grams, meaning their scrap value can run into tens of thousands of dollars. In an Omega Constellation, the gold can be found in the case and the strap.

With gold expected to reach between $5,400 and $6,300 an ounce this year, the pressure to dismantle some watches will continue, especially as traders that resell them must cover costs and the expense of providing a warranty. New watches that are over-produced might also be melted down.

“I’ve seen a lot of totally mediocre watches get melted down,” said Lamdin. “There’s a lot of unsold overstock in the Swiss market. And those watches are basically brand new, unworn, and they’re just getting stripped down... they made too many of them.”

“But when you have something that’s vintage and rare and has some story or some patina, that’s where it becomes a short-sighted tragedy.”

THE RESALE TRAP

High-end brands that tightly manage new production like privately owned Patek Philippe and Rolex command the highest premiums over melt value, three industry experts said.

For some models “the wait lists are astronomical. You’re talking anything from two to eight years,” said Simon Lazarus, head of PR and content at online luxury watch platform Chrono Hunter.

Rolex accounted last year for 61 percent of the sales value of new Swiss watches priced above 3,000 Swiss francs ($3,770), up from 57 percent in 2023 despite lower volumes, according to Vontobel.

Less exclusive brands like TAG Heuer, Breitling and Omega struggle to command high new retail prices, however, as buyers can buy a second-hand timepiece for much less. Models like Omega’s Speedmaster often depreciate sharply once sold, exposing them to scrapping, three experts said.

Higher gold prices motivated retired New York engineer Mitchell Talisman to sell two gold watches and a chain containing a combined 35 grams of gold with 58 percent purity for $2,660 cash in December.

“I’d had a bunch of stuff sitting in a safety deposit box for over 10 years,” he told Reuters.

For some owners however, the idea of selling a watch only for it to be melted by a dealer is too much to bear. “It may be a family piece, it may be their first watch,” said Hailwood. “They don’t like the idea of it being destroyed, so they keep it.”