The finance ministry has identified revenue shortfall as the biggest domestic risk to Bangladesh economy, warning that persistent revenue gaps could push government debt up by more than Tk12 lakh crore over the next three fiscal years to Tk33.78 lakh crore.

Although the debt is expected to remain within 39% of GDP due to an expanding economy, the ministry said the situation could still pose risks considering the tax-to-GDP ratio.

In its Medium-Term Macroeconomic Policy Statement, the ministry said if the current trend of revenue shortfalls continues, development spending could decline by around Tk96,000 crore by 2029. Private investment could also fall short by about Tk85,700 crore.

Published with the budget documents, the policy statement said the government plans to introduce short-term Islamic Treasury Bills next fiscal year alongside Sukuk bonds to lengthen debt maturity and reduce refinancing risks.

However, the report acknowledged that implementing the strategy would be challenging due to liquidity shortages in the financial sector. It also suggested attracting foreign investment into the domestic debt market to address the issue.

The government on Thursday announced a budget based on a revenue target of Tk6.95 lakh crore for the next fiscal year, a figure that has drawn scepticism among economists.

Centre for Policy Dialogue (CPD) distinguished fellow Debapriya Bhattacharya described the target as "unrealistic" in comments to The Business Standard.

CPD fellow Mustafizur Rahman said mobilising such a large volume of revenue within a single year would be extremely challenging.

He warned that if revenue collection falls short while public expenditure remains unchanged, pressure on both domestic and foreign borrowing would increase.

"In particular, higher external borrowing targets and repayment obligations could have adverse macroeconomic implications," added Mustafizur.

Finance Minister Amir Khosru Mahmud Chowdhury at a post-budget press briefing yesterday said that reforms would be introduced in the National Board of Revenue, including its restructuring, staffing with competent officials, and digitisation.

He added that corruption would be curbed and businesses, including shops and restaurants across the country, would be brought under the tax network to boost revenue collection.

Finance Secretary Khairuzzaman Mozumder said the government would gradually move away from bank borrowing, with a focus on increasing public investment, which is expected to generate higher revenue over time.

Govt borrowing could drag down growth to 6.45%

The Fiscal Risk Assessment Statement chapter of policy statement said that in the past five years, revenue has fallen short of targets by an average of 16%. The gap has been widening and if this trend continues, the budget deficit could rise to nearly 5% of GDP.

The most concerning issue is that the government may need to rely more on borrowing to cover the revenue shortfall, which could in turn squeeze credit flow to the private sector.

According to the Finance Division, this could reduce private investment by around Tk85,700 crore by 2029, dragging down economic growth to 6.45% instead of the projected 7.5%.

To mitigate these risks, the report recommends expanding the tax net, rationalising tax exemptions, digitising tax administration, and strengthening accountability.

It also flags global energy price volatility, high inflation, financial weaknesses in state-owned enterprises, and climate-related disasters as key risks for the economy through 2029.

The economy may be able to absorb these risks individually, the chapter said. However, a combination of shocks could place pressure on growth, budget deficit, and debt situation.

The government plans to maintain its policy of keeping the budget deficit within around 5% of GDP in an effort to avoid excessive borrowing and preserve macroeconomic stability.

However, depreciation of the taka against the US dollar and rising global interest rates could increase the real cost of external debt, said the assessment.

Debt scenario

According to official data, external debt principal repayments stood at $2.61 billion in FY25 and are projected to rise to $3.20 billion in FY26. The finance ministry forecasts that this will further increase to $4.28 billion by FY29.

The repayment burden is expected to rise sharply as grace periods on loans expire, maturities are reached, and the impact of currency depreciation accumulates.

At present, around 91% of Bangladesh's external debt is denominated in US dollars, Special Drawing Rights (SDR), and Japanese yen, with dollar- and SDR-based borrowing is 71%.

As a result, any depreciation of the taka against the dollar could significantly increase debt servicing costs. To address this risk, the finance ministry has indicated plans to explore hedging or exchange rate protection mechanisms in the future.

By 2029, 55.7% of total debt is projected to come from domestic sources, while 44.3% will be external. Although Bangladesh's public debt remains within IMF-recommended safe thresholds, the low tax-to-GDP ratio is increasingly straining repayment capacity, prompting concerns among economists over potential debt vulnerability.

Government projections show the net fiscal deficit reaching Tk3.20 lakh crore by FY29, while remaining within 3.5%-3.7% of GDP.

A significant portion of this financing will come from domestic sources. Net domestic financing stood at Tk1.35 lakh crore in FY25 and is expected to rise to Tk1.84 lakh crore by FY29, though it is projected to remain near 2% of GDP.

Meanwhile, net external financing is projected to increase from Tk55,600 crore to Tk1.36 lakh crore over the same period, while remaining broadly stable at around 1.6% of GDP.

Welcoming the proposed budget, the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) said it will help restore economic stability and boost investment and the private sector, as the government has prioritised improving the business environment and strengthening energy security.

In its reaction to the Tk 9.38 lakh crore budget, the FBCCI said the targets of 6.5 percent GDP growth and reducing inflation to 7.5 percent can be achieved if sustainable discipline is maintained in the economy.

However, it said achieving the revenue target of Tk 6.95 lakh crore, including Tk 6.04 lakh crore assigned to the National Board of Revenue (NBR), will be challenging due to current domestic and global economic conditions.

The apex trade body said reforms in the NBR are necessary to meet the revenue target while ensuring economic stability, better revenue management and a more investment-friendly environment that supports growth.

It also warned that heavy borrowing from the banking sector could reduce the flow of loans to the private sector, potentially affecting job creation.

The FBCCI added that the government should, as far as possible, rely on low-cost foreign funding to meet its expenditure needs.

It noted that the government will face challenges in raising funds to pay Tk 1.05 lakh crore in bank loan interest and Tk 22,500 crore in interest on foreign borrowing.

High inflation, a low tax-to-GDP ratio, a large volume of defaulted loans, pressure from external debt and an unstable geopolitical situation could also make budget implementation difficult.

To address these challenges, the FBCCI suggested prioritising the operationalisation of investment-friendly economic zones, diversifying exports and markets, developing human resources in the IT sector, reducing the cost of doing business, strengthening the capital market, and ensuring quality and accountability in implementing the Annual Development Programme.

The FBCCI said the government’s plan to sign trade agreements with major trading partners and introduce necessary customs rules is positive, as Bangladesh is set to graduate from the least developed countries (LDC) category to a developing nation in November this year.

It also welcomed the proposal for zero duty on imports for the renewable energy sector and the introduction of a Tk 60,000 crore stimulus package for the private sector.

The trade body said simplifying online VAT return submission, shifting to quarterly returns, enabling online income tax filing and payments, and introducing a national single window will help attract both domestic and foreign investment.

The FBCCI welcomed the proposal to set the corporate tax rate for five years, but said it would have been better if it could be reduced further to 2.5 percent.

It also appreciated treating source tax as advance income tax, but said the minimum tax should be reduced to 0.5 percent from 1 percent.

The trade body further welcomed the proposal to reduce source tax on imports of 60 essential commodities, including rice, wheat, potato, onion, garlic, salt, sugar and edible oil, from 5 percent to 4 percent.

Garment exporters have welcomed the proposed national budget for the fiscal year 2026-27, describing it as a balanced and reform-oriented roadmap aimed at strengthening macroeconomic stability, improving the business climate and supporting long-term economic transformation.

In its reaction to the proposed budgetary measures, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) praised the finance minister for pursuing policy continuity and maintaining economic discipline amid persistent global uncertainties and domestic challenges.

BGMEA, the main trade body representing the country’s largest export earning sector, said proposed budget reflects a shift from a purely growth-driven strategy toward a broader development agenda that places greater emphasis on education, healthcare and social protection.

It said the government sets economic growth target of 6.5 percent for the next year and has outlined 10 strategic priorities, including investment-led employment generation, promotion of a production-oriented economy, deregulation, financial sector stability and energy security.

These priorities are expected to play an important role in supporting industrial expansion, export growth and Bangladesh’s smooth transition from least developed country status, said the BGMEA.

The proposal to maintain tax policy consistency for at least five years and gradually reduce reliance on statutory regulatory orders through the introduction of a risk-based audit system is expected to strengthen investor confidence and encourage fresh investment, it added.

BGMEA appreciated several measures aimed at improving revenue administration and reducing compliance burdens.

These include the introduction of an automated and faceless tax refund system, treatment of withholding tax as advance tax rather than minimum tax, and simplified tax procedures. Such reforms are likely to improve transparency and ease cash-flow pressures for businesses.

It said mandatory online-based single-window services, issuance of licenses within seven days and company registration within 48 hours are expected to reduce bureaucratic hurdles and lower the cost of doing business.

The association also welcomed initiatives to facilitate profit repatriation and expedite work permits for foreign professionals.

The trade body further welcomed the reduction of tax on recycled products from three percent to one percent and the continuation of duty exemptions on effluent treatment plant chemicals, measures that are expected to encourage environmentally responsible manufacturing.

It also urged the government to withdraw the proposed 5 percent import duty on polyester staple fibre, along with additional duties on PVC resin and PET resin, citing the growing export potential of man-made fibre-based garments.

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

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

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

SEVEN-DAY DEADLINE FOR APPROVALS

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

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

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

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

FASTER BUSINESS START-UP SERVICES

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

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

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

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

TAX ADMINISTRATION GOES DIGITAL

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

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

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

CUSTOMS PROCEDURES TO BE SIMPLIFIED

Several reforms target customs administration and bonded warehouse facilities.

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

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

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

EASIER PROFIT REPATRIATION

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

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

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

CAPITAL MARKET AND CONSTRUCTION APPROVALS

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

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

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

HIGH-LEVEL TASK FORCE

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

CORPORATE TAX CHANGES ON DIVIDEND INCOME

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

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

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

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

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

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

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

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

However, he said the country lacks sufficient investment vehicles.

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

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

BUDGET OTHERWISE WINS MARKET APPRECIATION

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

“The biggest challenge is execution,” he said.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

World's largest IPO

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

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

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

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

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

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

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

A $28.5 trillion market opportunity

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

"We have to monetise creativity."

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

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

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

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

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

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

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

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

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

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

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

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

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

How it would work

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

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

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

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

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

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

Industry raises concerns

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

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

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

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

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

'Substantial revenue generation likely'

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The government has proposed the introduction of a fully digital e-loan that will allow individuals to obtain up to Tk 50,000 through an online process, aiming to improve access to finance and expand financial inclusion.

Finance Minister Amir Khosru Mahmud Chowdhury unveiled the proposal while presenting the national budget for fiscal year 2026-27 in parliament on Thursday.Personal finance e-book

According to the budget proposal, loans of up to Tk 50,000 may be provided for a period of 12 months through a fully digital process to simplify the receipt and disbursement of small loans.

"The introduction of e-loan has been allowed to simplify the receipt and disbursement of small loans. Loans of up to Tk 50,000 may be provided for a period of twelve months through a fully digital process," the finance minister said in his budget speech.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has welcomed the proposed national budget for the FY2026-27, describing it as broadly business-friendly and reform-oriented.

However, the apparel industry body has also urged the government to incorporate five key demands that it says were not addressed in the budget.

In a statement issued today (13 June), BGMEA said the proposed budget includes several positive initiatives such as policy stability, digitalisation of the tax system, simplification of business startup procedures, incentives for renewable energy, modernisation of the bond and VAT systems and tax benefits for SMEs and women entrepreneurs.

The association said these measures send a positive signal for industry and investment amid global and domestic economic challenges.

BGMEA noted that the ready-made garment (RMG) sector is currently facing significant pressure due to global slowdown and rising production costs.

According to the organisation, during the current fiscal year, export earnings from RMG declined by 3.41%, average unit price fell by 1.55%, and back-to-back L/C openings for raw material imports dropped by 7.93%. It also claimed that around 400 factories have shut down over the past three years.

Against this backdrop, BGMEA placed five key demands before the government.

The demands include reducing the export source tax on garments from 1% to 0.65% and keeping it stable for the next five years; fully waiving the 10% tax deduction at source on cash incentives instead of the recently reduced 5%; and removing the 1% double source tax on subcontract values, along with simplifying VAT exemption procedures for small and medium factories.

The association also called for ensuring that the 12% corporate tax rate for the garment sector and 10% rate for green factories are not increased due to other income sources.

BGMEA also demanded withdrawal of proposed additional import duties on polyester staple fibre (PSF), PVC resin and PET resin, considering the growing potential of man-made fibre-based garment exports.

The association said that after Bangladesh's graduation from the Least Developed Country (LDC) category, reducing production costs, ensuring affordable energy supply, and further simplifying customs and port procedures are essential to remain competitive in the global market.

The government is planning a Tk192.66 crore project to establish a national artificial intelligence (AI) hub and train a new generation of AI professionals, with most of the funding expected to come from a grant by the Korea International Cooperation Agency (Koica).

The project, titled "Fostering Innovative Technology Experts with a Focus on Artificial Intelligence (AI) in Bangladesh", will be implemented by the Bangladesh Hi-Tech Park Authority (BHTPA) under the ICT Division between July 2026 and December 2029.

Of the total cost, Tk159 crore will come from Koica and Tk33.66 crore from the government.

According to project documents, the initiative aims to establish a state-of-the-art AI Hub Center, develop AI curricula, strengthen industry-academia collaboration, support startups and create international employment opportunities.

The project targets training 865 AI and digital technology specialists, establishing 30 AI-based startups, publishing 10 international AI research papers and achieving an 80% employment rate for trainees. It also includes Korean language training for 230 participants and infrastructure development for the AI hub.

The ICT Division recently urged the Planning Commission to quickly approve the project's Technical Assistance Project Proposal (TAPP), warning that delays could jeopardise Koica's proposed $13 million grant.

According to an official letter, the project proposal was sent to the Planning Commission and the Economic Relations Division (ERD) on 1 December 2025, but approval is still pending. As a result, the ERD and Koica have been unable to sign the required Record of Discussion (RoD) and Terms of Reference (ToR).

The ICT Division said Koica is reviewing its project portfolio and considers signed RoDs and ToRs essential for funding decisions. The ERD has also cautioned that delays could put the grant at risk.

Project documents describe Bangladesh as being at a critical stage of digital transformation, with demand for advanced ICT and AI skills far exceeding current capacity. While AI has been identified as a strategic priority under the National AI Policy 2024, existing institutions lack the infrastructure and expertise needed for advanced training and research.

Officials said the proposed AI hub would help bridge the skills gap, support innovation and entrepreneurship, and strengthen Bangladesh's position as a destination for technology investment.

The initiative builds on the government's wider high-tech park strategy. Bangladesh has already established software technology parks in Agrabad, Chattogram and Jashore, alongside IT training and incubation centres in Natore, Rajshahi, Kuet and Cuet, while major projects such as Kaliakoir, Sylhet and Rajshahi Hi-Tech Parks are also operational or under development.

Individual taxpayers will receive refund of the amount paid in excess of due taxes within 60 days of the processing of their tax returns.

The refund will be made under a landmark provision proposed in the Finance Bill 2026 accompanying the new budget.

The refunded amount will be transferred directly into taxpayers' bank accounts electronically, marking a significant shift towards a more taxpayer-friendly and transparent tax-administration system.

Tax experts have described the move as a paradigm shift that could help ensure tax justice and strengthen public confidence in the country's revenue-collection framework.

The new provision, introduced for the first time, will apply to individual taxpayers earning income from salaries, financial assets, and agriculture.

Under the proposal, tax refunds will be generated automatically through the online tax-return portal and transferred electronically within 60 days of the taxpayer's application.

However, the refund will be subject to the completion of return processing, which must be finalized within 120 days.

The Finance Bill further stipulates that "failure to transfer the refund within the prescribed timeframe will be treated as misconduct on part of the responsible tax official".

From the current fiscal year, the National Board of Revenue (NBR) has made online submission of income-tax returns mandatory for individual taxpayers, with only a few exceptions.

A senior tax official says tax -refund mechanisms are a common feature in developed countries and play an important role in building trust between taxpayers and tax authorities.

"We will introduce this system from the next fiscal year to assure taxpayers that they will not have to bear the burden of excess tax payments to the public exchequer," the official says.

Tax expert Snehasis Barua thinks the provision represents a major reform in the country's tax regime and would help strengthen taxpayers' confidence in the revenue administration.

"It is a significant change in tax law and a positive step towards improving trust between taxpayers and tax authorities," he says.

Debabrata Roy, Director-Legal, Regulatory & Scientific and Corporate Affairs at Nestlé Bangladesh, welcomes the initiative, describing it as "beyond imagination" in the context of Bangladesh's tax administration.

However, he notes that effective implementation would be the key challenge.

"The execution of the refund system will be crucial. If implemented properly, automated tax refunds will significantly enhance transparency and accountability in tax administration."

Oil prices fell over $1 on Friday (12 June), extending losses from the previous session after US President Donald Trump cancelled plans to strike Iran, reducing fears of an escalation of hostilities following tit-for-tat attacks earlier in the week.

Brent futures LCOc1 fell $1.83, or 2%, to $88.55 a barrel at 0410 GMT, while US West Texas Intermediate (WTI) CLc1 crude dropped $1.6, or 1.8%, to $86.11.

Trump, who had threatened to hit Iran "very hard", called off planned strikes on Thursday, saying discussions with Iran had progressed and a peace deal that would reopen the Strait of Hormuz to shipping could be signed as soon as this weekend.

Iran's semi-official Fars news agency reported that Tehran had not approved the text of any agreement.

"While this could, of course, be yet another false dawn, the market's reaction has been both swift and decisive," said IG market analyst Tony Sycamore.

He added that even as oil prices correct downwards, "as long as the price can hold above support in the low $80s, the risks remain firmly skewed to the upside."

On Thursday, Iran announced "the closure" of the Strait of Hormuz, through which vessel traffic was already severely limited, saying it would fire on any ship trying to pass through the waterway.

The strait normally carries a fifth of global oil and liquefied natural gas shipments and Tehran's months-long blockade has kept energy prices elevated.

State media reported on Friday that Iranian forces prevented a tanker from transiting the Strait of Hormuz without coordination.

The US military said on social media that commercial ships continued to transit the waterway.

"We would be cautious about assuming that the extension of the ceasefire is a done deal. Even if it is, it could be fragile. And clearly, if nuclear talks do not progress, it could very easily fall apart," said ING analysts in a Friday note.

"We believe the market reaches an inflexion point in late July if we do not see oil flows resuming before then. This is when inventory levels and seasonally stronger demand push prices significantly higher towards $120-130 per barrel."

The Organization of the Petroleum Exporting Countries (OPEC) on Thursday lowered its forecast for 2026 world oil demand growth to 970,000 barrels per day (bpd) from a previous 1.17 million bpd, marking its second straight downward revision.

The producer group also said consumption would rebound later, raising its demand growth forecast for 2027. It expects 2027 oil demand to rise by 1.73 million bpd, up 190,000 bpd from its previous forecast.

Finance Minister Amir Khosru Mahmud Chowdhury has said that large-scale investment must be channelled through the capital market instead of relying excessively on bank-based financing, arguing that Bangladesh needs a fundamental shift in its financial architecture.

He made the remarks while inaugurating a conference titled "Road for Trade, Growth and Economic Diplomacy 2026 – Navigating Risks: Leveraging Resilience" held at a hotel in Dhaka today (13 June).

The conference was jointly organised by the International Trade, Investment and Technology Wing of the Ministry of Foreign Affairs and the Bangladesh Investment Development Authority (Bida), aiming to serve as a working platform for informed policymaking on trade, investment, and economic diplomacy.

Speaking at the event, the finance minister said the current structure of short-term deposits and high-interest lending through banks is "not working well" for either financial institutions or businesses.

"High interest rates, short-term deposits and long-term financing mismatch are not good for anybody – not for banks, not for clients," he said.

He stressed that large investments should raise equity and debt directly from the capital market.

The minister said the existing financial system, heavily dependent on bank loans and high interest rates, is constraining business growth and increasing pressure on the economy.

He also noted that public finance architecture needs to be restructured in line with global changes in financial flows, where borrowing costs from multilateral and bilateral sources have increased significantly.

"The cost of finance is going up globally. Even multilateral lenders who used to lend below 1% have crossed 1% to 2%," he said.

Khosru also said the government is going to form a taskforce to oversee deregulation activities as part of its broader reform agenda to improve the business environment.

Bangladesh Bank Governor Md. Mostaqur Rahman on Friday issued a stern warning against financial fraudsters, declaring that those involved in money laundering will not be allowed to live in peace in Bangladesh.Bangladesh economic report

“We will not let those who have stolen the country’s money and smuggled it abroad stay in peace. The ongoing drive against money launderers will continue,” the central bank governor said.

He made the remarks while addressing journalists on contemporary economic issues, including money laundering and financial sector stability, in the post budget press conference, reports UNB.

The Finance Minister Amir Khosru Mahmud Chowdhury, Power and Energy Minister Iqbal Hasan Mahmud Tuku, NBR Chairman Abdur Rahman, Governor Md Mostaqur Rahman, many other ministers and secretaries of different ministries were present.

Stating that those who have accumulated wealth through illicit financial flows will face rigorous accountability, the Governor added that the central bank, in coordination with relevant state agencies, is actively working to identify and track down stolen assets.

Governor Rahman also assured that specific actions, including legal measures and international cooperation, are being leveraged to bring back the laundered money and penalize the perpetrators.

The central bank chief emphasized that ensuring discipline and transparency in the banking sector remains a top priority for the regulatory body, and no concessions will be made for those involved in rampant corruption and financial irregularities.Personal finance e-book

About the liquidity crisis of different banks including Islami Bank, the governor said that the central bank is taking steps to resolve the problem as soon as possible.

Bangladesh's stock market extended its rally for a fourth consecutive week, driven by optimism over the new leadership of the Bangladesh Securities and Exchange Commission (BSEC) and expectations of market-friendly measures in the proposed FY2026-27 budget.

Despite bouts of profit-taking, investor sentiment remained positive. Over the past four weeks, the benchmark DSEX index has gained 286 points, while average daily turnover has nearly doubled to around Tk1,500 crore, reflecting renewed confidence in the market.

The DSEX rose 45 points during the week to close at 5,520. The blue-chip DS30 gained 5 points to 2,073, while the Shariah-based DSES edged up 0.21 points to 1,067. The SME-focused DSMEX advanced 6 points to 1,115.

Trading activity strengthened further. Average daily turnover increased 11.4% to Tk1,288 crore from Tk1,156 crore a week earlier, taking total weekly turnover to Tk6,438 crore. Market capitalisation, however, slipped 0.43% to Tk6,90,011 crore.

Of the 412 issues traded on the Dhaka Stock Exchange, 183 gained, 173 declined, and 30 remained unchanged, while 26 saw no trading activity.

Market participants said many stocks battered by prolonged selling pressure have reached attractive valuations, encouraging investors to rebuild positions. Confidence was also supported by expectations that the new BSEC commission will strengthen governance, market discipline and investor protection.

The week began strongly, extending the market's winning streak to 10 consecutive sessions. Buying interest was concentrated in banks, financial institutions, insurance companies and fundamentally strong stocks trading at discounted prices.

The rally briefly paused midweek as investors booked profits and adopted a cautious stance ahead of the national budget announcement. However, sentiment improved later as expectations grew for measures to stimulate private-sector growth and support the capital market.

According to BRAC EPL Stock Brokerage, the market maintained an overall positive trajectory, closing higher on three of the five trading sessions. Strong performances by insurance, non-bank financial institutions, telecommunications, and fuel and power stocks outweighed weakness in banking and food sectors.

The General Insurance sector was the week's top performer, gaining 5.94%, while Telecommunications led among large-cap non-financial sectors with a 1.64% rise.

EBL Securities said investors remained optimistic about regulatory reforms under the new BSEC leadership and potential fiscal support in the budget. The brokerage noted that broad-based accumulation of beaten-down stocks drove the early rally, while selective buying later helped the market recover from the midweek correction.

Investor participation was highest in General Insurance, which accounted for 19.3% of total turnover. Engineering followed with 12.9% and Pharmaceuticals with 10.5%.

Among sectors, Services gained 7.8%, Ceramics 6.5% and General Insurance 6.2%. Miscellaneous fell 11.9%, while Travel & Leisure and Jute declined 2.3% and 1.3% respectively.

Analysts say sentiment is gradually improving after a prolonged downturn, supported by expectations of regulatory reforms and policy support. However, they cautioned that sustaining the rally will depend on the implementation of reforms and measures that encourage long-term investment.

Brent crude oil prices fell to their lowest levels since early March as traders grew more confident about an imminent ‌peace agreement between the US and Iran.

Brent futures settled at $87.33 a barrel, down $3.05, or 3.37 percent.

US West Texas Intermediate (WTI) crude finished at $84.88, down $2.83, or 3.23 percent. That was WTI’s lowest level since April 17.

“What’s got the market going down is the Iranians saying there is a memorandum of understanding (with the US),” said John ​Kilduff, partner with Again Capital.

A memorandum between the US and Iran to halt the war in the Gulf could be signed ​as soon as Sunday, a Western source told Reuters on Friday, with Geneva emerging as the likeliest venue.

Iranian Foreign Minister Abbas Araqchi said on Friday that a memorandum of understanding had not yet been signed and could still change.

US ​President Donald Trump called off threatened air strikes against Iran on Thursday, while Iran’s Mehr news agency reported that final negotiations on the ​memorandum would focus on nuclear and economic issues but would exclude discussions about Iran’s missile programme.

Iran’s IRNA news agency, meanwhile, said nuclear talks would take place within a 60-day period after a memorandum was signed.

“Headlines are driving the market once again as confidence grows that an eventual deal will be struck and the Strait (of Hormuz) reopens,” said Tamas Varga, an analyst at PVM Oil Associates.

One caveat, however, is that global and regional oil stocks ​are still low and could drift lower, even with a deal, as it would take time to ensure uninterrupted oil flows, he added.

On Thursday, Iran ‌announced ⁠a complete closure of the strait, saying it would fire on any ship trying to pass through. Traffic through the strait, which normally carries a fifth of global oil and liquefied natural gas shipments, has been extremely limited as a result of the war.

The US military, however, said on social media that commercial ships continued to transit the waterway.

One small step for SpaceX, but is it a giant leap for your portfolio?

“We believe the market reaches an inflection point in late July ​if we do not see ​oil flows resuming before then,” ING ⁠analysts said in a note.

“This is when inventory levels and seasonally stronger demand push prices significantly higher towards $120-130 per barrel.”

Again Capital’s Kilduff said an agreement couldn’t come at a better time.

“This really can’t go ​on much longer before there are shortages,” he said.

Goldman Sachs lowered its 2027 average Brent forecast ​to $80 a barrel ⁠on higher supply and lower demand, but expects prices to exceed the 2025 average on stockpiling of OECD commercial oil stocks and a security premium for disruptions.

The Organization of the Petroleum Exporting Countries on Thursday lowered its forecast for 2026 world oil demand growth to 970,000 barrels per day ⁠from a ​previous 1.17 million bpd, its second straight downward revision.

The producer group also said ​consumption would eventually rebound. It expects oil demand in 2027 to rise by 1.73 million bpd, up 190,000 bpd from its previous forecast.

The proposed national budget for FY2026–27 has set the stage for a sweeping transformation of the country's capital market, with a clear pivot toward long-term structural reform and sector-driven growth.

Presented by Finance Minister Amir Khosru Mahmud Chowdhury, the Tk9.38 lakh crore budget signals a decisive move away from short-term retail incentives toward building a deeper, more institutionalised market. The result is a sharply differentiated landscape where policy support is concentrated on high-growth industries, while traditional sectors and retail investors face new pressures.

Pharmaceuticals lead sectoral gain

Pharmaceutical companies are among the biggest beneficiaries, gaining from a series of duty cuts and tax exemptions.

The government has reduced import duties on key raw materials used in the production of cancer drugs, Active Pharmaceutical Ingredients (APIs) and medical equipment, with some items receiving full exemptions until 2030.

These measures are expected to lower production costs and enhance export competitiveness for major listed firms such as Square Pharmaceuticals, Beximco Pharma, Renata and Beacon Pharma.

According to EBL Securities, the policy support will strengthen Bangladesh's position as a growing pharmaceutical exporter while encouraging domestic manufacturing of high-value medical products.

Tech and telecom sectors get digital boost

The technology and telecommunications sectors have also emerged as key winners, driven by policies aimed at accelerating digitalisation and local manufacturing.

The budget proposes a reduction in Advance Income Tax (AIT) on IT hardware from 5% to 2%, along with full duty exemptions on laptops, desktops and computer components until 2030, measures expected to significantly reduce costs for both consumers and businesses.

In the telecom sector, operators such as Grameenphone and Robi stand to benefit from the withdrawal of a 20% withholding tax on regulatory payments and the elimination of the Tk300 SIM card tax. These changes are expected to improve cash flow, lower customer acquisition costs and potentially revive growth in the mobile market, according to a research report by Sheltech Brokerage.

EV and energy sectors gain long-term incentives

In a forward-looking move, the government has extended strong policy support to the electric vehicle (EV) and renewable energy sectors.

EV manufacturers will enjoy steep duty concessions, with only 3% import duty on raw materials for high-value-added production and tax exemptions until 2031, complemented by duty-free imports of charging infrastructure and reduced vehicle registration costs.

According to Sheltech Brokerage, companies such as Runner and Walton are expected to benefit from these incentives, which aim to position Bangladesh as a regional hub for EV manufacturing.

The solar power sector has also received a significant boost, with tax exemptions extended until 2035 and duty waivers on key components. Analysts believe these measures will improve project viability and attract fresh investment into renewable energy. Key beneficiaries are expected to include Summit Power, Beximco, Confidence Cement and Paramount Textile.

Agriculture and consumer sectors see cost relief

The agriculture sector has received targeted support through duty exemptions on key feed ingredients and VAT relief on fertiliser trading. These measures are expected to lower production costs for companies such as Index Agro and Aman Feed, with potential downstream benefits for farmers and consumers.

Consumer-facing industries are also set to benefit from reduced input costs. Lower duties on raw materials used in household cleaning products and personal care items are expected to improve margins for manufacturers, with Kohinoor Chemical and Marico among the key players in the sector.

Tobacco, steel under pressure

Not all sectors have fared well under the new budget.

The tobacco industry faces one of the steepest tax hikes, with supplementary duties of up to 350% imposed on key raw materials and products. The increased burden is expected to significantly compress margins for companies such as BAT Bangladesh.

The steel sector, meanwhile, is grappling with higher input costs following an increase in duties on ferroalloys, likely impacting major players such as BSRM and GPH Ispat in the near term.

Shipping faces regulatory tightening

The shipping and port sectors face new challenges under stricter regulations. The government has reduced the maximum allowable age for imported ships from 25 years to 10 years, significantly raising capital expenditure requirements. The mandatory holding period before selling vessels has also been extended from three to five years, limiting operational flexibility for firms such as Bangladesh Shipping Corporation and MJL Bangladesh.

Financial sector sees mixed impact

The financial services sector presents a mixed picture. Banks, non-bank financial institutions and insurance companies will benefit from tax exemptions on stock dividends, which are expected to support capital strengthening. However, the introduction of mandatory Tax Identification Number (TIN) requirements for opening most bank accounts may slow account growth, particularly in rural areas.

Policy shift reshapes market dynamics

At the heart of the budget is a structural overhaul aimed at transitioning Bangladesh from a debt-led to an investment-driven economy. The government has prioritised capital market development through reforms in taxation, listing procedures and financial instruments.

A key highlight is the shift in Tax Deducted at Source (TDS) from a "minimum tax" to an "advance tax" system, a move widely welcomed by market intermediaries.

According to a budget research paper by BRAC EPL Stock Brokerage, this shift effectively ends a persistent liquidity trap where non-refundable final tax settlements previously depleted operating capital regardless of a company's actual profitability. By making the tax adjustable and refundable, the government has addressed a decade-old grievance, potentially boosting the operational capacity of brokers, asset management companies and the stock exchanges.

Retail investors feeling the squeeze

Perhaps the most controversial aspect of the budget is its impact on individual retail investors. The government proposes reducing the tax rebate rate from 15% to 10% and lowering the maximum investment ceiling for rebates from Tk10 lakh to Tk7.50 lakh.

Zuhaier Shams, a senior research executive at Sheltech Brokerage, warned that these measures could discourage middle-class participation in the market.

Rehan Kabir of EBL Securities noted that the stock market remains a viable investment avenue, given the absence of the rigid restrictions found in savings certificates. However, the psychological impact of a reduced rebate may weigh on retail sentiment. The withdrawal of the 20% flat tax on dividend income in favour of standard corporate tax rates is also likely to affect the bottom line of market intermediaries.