The cabinet has approved the Foreign Direct Investment (FDI) Incentive Scheme Policy, 2026, aimed at encouraging Bangladeshi citizens, including expatriates, to attract foreign direct investment into the country.

The policy, formulated at the initiative of the Prime Minister's Office, was approved at the ninth cabinet meeting held tonight (4 June), chaired by Prime Minister Tarique Rahman, according to a press release from the Cabinet Division.

The Cabinet Division said the scheme is intended to incentivise Bangladeshi citizens at home and abroad to contribute to bringing FDI into Bangladesh.

The draft policy was originally prepared during the tenure of the interim government. Under that draft, Bangladeshis who successfully attract new foreign direct investment in the form of equity participation would be eligible for a financial incentive.

The draft proposed a 1.5% incentive for bringing new equity-based FDI into Bangladesh through foreign investors. Any Bangladeshi citizen, whether residing in the country or overseas, would be eligible for the incentive.

It also proposed the creation of an initial $7.5 million fund to finance the scheme. The amount represented around 1.25% of Bangladesh's total equity FDI inflow during fiscal year 2023-24, when the country received approximately $600 million in equity-based foreign investment.

According to the draft, a minimum of $1 million in new equity investment would be required to qualify for the incentive. However, the Ministry of Finance had recommended setting the incentive rate at 1% for all eligible investments.

The cabinet also approved the draft Bangladesh Medical University (Amendment) Act, 2026.

The amendment, proposed by the Health Education and Family Welfare Division, seeks to expand the scope of healthcare services, medical education and research at Bangladesh Medical University.

Under the proposed changes, the university will be allowed to establish or participate in both for-profit and non-profit companies or organisations and acquire shares in such entities.

The cabinet said amendments to the Bangladesh Medical University Act, 1998, are necessary to facilitate these provisions and broaden the university's institutional and research capabilities.

Meanwhile, the cabinet also congratulated Khalilur Rahman on his election as president of the 81st session of the United Nations General Assembly (UNGA).

Prime Minister’s Adviser on the ministries of Finance and Planning Dr. Rashed Al Mahmud Titumir has said that the government is working on a new economic model aimed at transforming Bangladesh into a one-trillion-dollar economy by 2034, while ensuring that the benefits of growth reach all sections of society under the philosophy of a “Bangladesh for all.”

He made the remarks while addressing a roundtable discussion titled “Budget for a Crisis Moment 2026–27”, where he also emphasized administrative reforms, reduction of bureaucratic complexities, creation of equal opportunities for domestic and export-oriented industries, and the formulation of business-friendly policies to boost investment, BSS reports citing a press release.

He further noted that a Tk 60,000 crore restructuring package is being prepared to revive closed industrial units, alongside broader efforts to strengthen agriculture through improved water resource management, and enhance efficiency in health, education, and grassroots service delivery.

The roundtable was held at the ATM Shamsul Haque Auditorium of the CIRDAP International Conference Centre in Dhaka, organized by the online platform Chaarcha.com.

State Minister for Planning Zonayed Abdur Rahim Saki also attended the event as special guest, said the release.

Speakers included Chairman of Policy Exchange Bangladesh Dr. M. Masrur Reaz, Managing Director of Apex Footwear Syed Nasim Manzur, researcher and rights activist Maha Mirza, former Finance Secretary Muslim Chowdhury, BKMEA President Mohammad Hatem, ICMAB President Kawser Alam, and Dean of the School of Business and Economics at North South University A.K.M. Waresul Karim. The session was moderated by Chaarcha Editor Sohrab Hossain.

During the discussion, speakers stressed the need for comprehensive economic reforms to address inflationary pressure, investment stagnation, employment challenges, and global economic uncertainty.

They called for modernization of tax administration, enhanced productivity in agriculture and industry, strengthened financial sector governance, and long-term policy stability to ensure sustainable economic growth.

In the private sector perspective, Apex Footwear Managing Director Syed Nasim Manzur called for reducing corporate tax rate from 27.5 percent to 20 percent, ensuring a stable tax regime for at least three years, and introducing digital and risk-based audit systems in tax administration.

He also highlighted inefficiencies in airport cargo handling and noted that a large portion of healthcare expenditure in Bangladesh is still borne out-of-pocket by citizens.

Researcher Maha Mirza urged increasing agricultural budget allocation from 5 percent to 10 percent, improving access to modern agricultural machinery, expanding rural procurement centers, and strengthening cold storage facilities to support farmers and reduce post-harvest losses.

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

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

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

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

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

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

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

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

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

The Chittagong Stock Exchange (CSE) also closed in the green. The all-share CASPI index advanced 83 points, with 152 companies gaining against 74 declining and 29 unchanged. Total turnover at the CSE stood at Tk27.46 crore.

Economists have suggested continuing the tight monetary-policy stance as the latest power tariff and petroleum product price hikes could heighten inflationary pressure further.

They say although the existing monetary-policy steps are contractionary in nature, the policy is not tight enough to contain inflation as an increased volume of money is being injected into the market through various Bangladesh Bank (BB) instruments.

The observations came at a stakeholders' meeting on Thursday between the Bangladesh Bank and leading economists, senior bankers, and journalists.

The meeting was held before finalising the monetary policy statement for the second half of this calendar year.

The statement will be unveiled on June 30.

A number of people, who attended the closed-door meeting chaired by Bangladesh Bank Governor Md Mostaqur Rahman, told The Financial Express the participating economists called upon the central bank leadership not to ease the existing monetary policy stance under the current macroeconomic situations.

They said easing the stance could take a bigger bite out of people's income by further increasing the inflationary pressure.

An economist said though the prevailing monetary policy stance was still tight as far as a higher policy rate was concerned, the trend of fresh fund injection has been continuing.

At the same time, he said, the government and the banking regulator launched a stimulus package of Tk 600 billion to revive economic activities after months of sluggishness.

"Under such circumstances, the central bank should not think about easing the policy rate, which has been 10 per cent since October 2024. Otherwise, the economy may face further inflationary pressure, which mostly stems from non-monetary factors," he explained.

Another economist said the government had already increased power tariffs and petroleum product prices in phases in less than a month, which would undoubtedly fuel inflation in the coming days.

"If we relax the monetary policy stance right now, it will be disastrous in the context of inflation-battling management," he said.

The economists also suggested the central bank make a foreign exchange strategy considering the future overseas payment pressure as the remittance boom might not continue in the coming months.

As part of the monetary policy stance preparations, the central bank will hold a meeting at its Bogura office tomorrow before holding the monetary policy committee (MPC) meeting on June 21.

Everything in terms of monetary policy measures will be finalised at the June 21 meeting.

Then it is scheduled to be approved by the Bangladesh Bank board of directors on June 25 before being officially announced on June 30.

Bangladesh's salt production fell short of its 2025-26 seasonal target due to prolonged adverse weather conditions, including heavy rainfall, dense fog and intermittent disruptions during the peak harvesting period, according to industry officials.

Data from the Bangladesh Small and Cottage Industries Corporation's (BSCIC) Salt Industry Development Office in Cox's Bazar show the country produced 1.945 million tonnes of salt against a demand target of 2.715 million tonnes, leaving a shortfall of around 7,70,000 tonnes.

The salt production season began on 12 November in Kutubdia and officially concluded on 25 May, spanning 194 days. During this period, around 40,150 farmers cultivated salt across 67,757 acres in coastal areas of Cox's Bazar and Chattogram, recording an average yield of 28.7 tonnes per acre.

BSCIC Deputy General Manager Zafar Iqbal Bhuiyan said weather instability was the dominant challenge throughout the season.

"From late April to early May, continuous rainfall severely affected production. Salt harvesting was halted for nearly 36 days in total during the season. Excess fog and rain caused a significant drop in output," he told The Business Standard.

He added that rainfall on 24 and 25 May further disrupted the final stage of production, while early shutdowns of salt fields also occurred due to the diversion of land for shrimp farming.

Despite the official end of the season, salt production continues in several coastal areas, supported by improved weather conditions and rising temperatures.

Farmers in Cox's Bazar say output has recently increased but profits remain constrained by production costs and volatile prices.

Mozammel Haque, a salt farmer in Pokkhali, said production had picked up again following the return of dry weather. "We are now producing 20 to 30 maunds of salt per kani of land daily."

However, he noted that earnings have not kept pace with costs.

Another farmer, Shahadat Hossain, said: "Production is better now, but we are not getting a fair price compared to expenses."

Jasim Uddin added that salt prices fluctuated sharply during the season, ranging from Tk180 per maund at the beginning to around Tk400 recently, but profit margins remained limited after costs.

Abdul Kader said farmers would only see meaningful returns if prices rise to Tk400–Tk500 per maund.

Salt trader Matiur Rahman said there is no shortage in the market. "Stocks in both fields and mills are sufficient, and supply remains stable," he said.

While BSCIC estimates production at 1.945 million tonnes, the Cox's Bazar Chamber of Commerce and Industry claims output has already exceeded 2.3 million tonnes, suggesting a higher field-level production than official figures indicate.

Chamber spokesperson Abid Ahsan Sagar said discrepancies may exist between field reality and official estimates but the overall supply situation remains stable. "Despite differences in figures, the market is well supplied and national demand can be met," he said

The government has included 1,270 new projects in the Annual Development Programme (ADP) for the upcoming 2026-27 fiscal year budget, State Minister for Planning Zonayed Saki said Saturday.

Speaking at a seminar titled 'Budget 2026-27 in Times of Crisis' organised at CIRDAP, Saki said of the 1,333 ongoing ADP projects, 1,150 will continue in the next fiscal year while the rest will be completed by June, UNB reports.

The new projects were selected from around 1,600 proposals, he said.

He said unlike in the past, projects this time have been planned in a coordinated manner. “Previously, projects were taken in isolation, power plants were built without transmission lines, hospitals without equipment. This time, every project will be implemented in a coordinated way so ordinary people can actually benefit.”

Saki said public investment transparency is a prerequisite for expanding private investment. “Without accountability in public spending, from budgeting to taxation, private investment cannot flourish.”

Criticising past five-year plans, the state minister said those plans lacked any roadmap for implementation. Going forward, the government will design its five-year plan with implementation challenges factored in from the outset, aiming to show tangible results within four and a half years.

He warned that financial waste from poor implementation costs the country more than corruption itself, and said the government is working to minimise project-wise fund wastage.

In the banking sector, Saki said a few vested business groups had colluded with previous Awami League government to devastate the banking system, leaving genuine entrepreneurs to bear the consequences. “Restoring depositor confidence and creating an enabling banking environment for new entrepreneurs remain key challenges.”

The state minister also raised sovereignty concerns over a past decision to hand tax automation work to a country that is a direct commercial competitor of Bangladesh. “Handing over our tax data to a competing nation undermines our sovereignty.”

On energy, Saki said the government is committed to self-sufficiency and is actively pursuing a target of 10,000 megawatts of renewable energy. “The government has already moved away from the previous policy of pricing electricity to benefit import-dependent fuel traders.”

Defending recent hikes in electricity and fuel prices, he said the current government is being transparent about the reasons, something the public was never told before. "There may be criticism, but we have ensured transparency.”

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

She added that targeted infrastructure support could further boost exports.

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

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

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

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

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

Logistics remains a challenge

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

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

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

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

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

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

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

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

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

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

However, enterprise-wide adoption of AI remains limited.

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

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

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

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

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

Impact on jobs

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

But discussions have hit a series of roadblocks.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Knock-on effects

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

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

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

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

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

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

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

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

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

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

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

HISTORIC INFLUX

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

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

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

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

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

GOBBLING UP CHIPS

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

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

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

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

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

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

TOO HOT FOR COMFORT

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

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

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

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

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

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

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

AI VS STAGLFATION?

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

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

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

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

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

The second session of the 13th Jatiya Sangsad, which will serve as its maiden budget session, is set to begin today at 3:00 pm.

President Mohammed Shahabuddin has convened the session under Article 72(1) of the Constitution. The sitting will take place in the parliament chamber at the Jatiya Sangsad Bhaban in Dhaka's Sher-e-Bangla Nagar.

According to the Parliament Secretariat, all necessary preparations have been completed to ensure smooth conduct of the session.

The session is expected to focus primarily on the presentation, discussion and passage of the national budget for the 2026-27 fiscal year, the first of the current government.

In addition to budget-related business, the House may consider several important constitutional amendments in line with recommendations contained in the July Charter.

Ahead of the session, the ruling party held a parliamentary party meeting on Saturday under the chairmanship of Prime Minister and Leader of the House Tarique Rahman to determine its parliamentary strategy.

The meeting, held at the parliament complex, reviewed the performance of seven ministries. Briefing reporters afterwards, Chief Whip Md Nurul Islam said ministers presented reports on their activities over the past month, existing challenges and measures taken to address them.

Regarding the health sector, he said preparations have been strengthened to tackle dengue and preventive measures have been taken nationwide against measles outbreaks. The meeting was also informed that the Health Ministry is taking strict steps to ensure the presence of doctors at the upazila level.

On infrastructure development, the Chief Whip said the Ministry of Road Transport and Bridges had already floated tenders for the construction of 1,000 kilometres of new roads.

"The Prime Minister directed authorities to ensure cost-effective and corruption-free implementation of the projects."

The meeting also reviewed progress in the development of terminals at Chattogram and Mongla seaports and discussed issues related to the Teesta Barrage project.

In the power sector, ministers reported that a significant number of people had been brought under electricity coverage, while some adjustments in electricity tariffs were also under consideration.

Meanwhile, the Dhaka Metropolitan Police (DMP) has imposed restrictions on carrying weapons, explosives and hazardous materials, as well as on all forms of rallies, processions, demonstrations and public gatherings in and around the parliament area during the session.

According to a public notice signed by DMP Commissioner Mosleh Uddin Ahmed, the restrictions took effect from midnight Saturday and cover several key roads surrounding the National Parliament complex and adjacent areas.

"The order will remain in force throughout the parliamentary session."

The budget session is traditionally held in June each year to discuss and approve the national budget. Members of Parliament are expected to participate in extensive debates on the government's economic policies, development priorities and fiscal plans for the upcoming financial year.

The first session of the 13th Parliament began on March 12 and concluded on April 30.

Many Bangladeshis know Alibaba Group as a giant Chinese shopping platform similar to Amazon or AliExpress. So, when they learn that Alibaba already has a growing business in Bangladesh and they visit its website to order products, they are surprised – they find they cannot shop here!

Most products – clothes, electronics or household products – on Alibaba.com are sold in bulk for wholesale buyers, importers, and international sourcing companies.

Instead of online shopping for local buyers, Alibaba connects Bangladeshi factories and suppliers with overseas buyers in more than 190 countries through its global B2B platform.

Company officials said Bangladeshi suppliers generated around $10 million in export business through Alibaba.com last year, selling products ranging from garments and home textiles to jute goods, leather items and agro-products.

The platform currently works with more than 300 Bangladeshi suppliers through four local channel partners. Unlike traditional e-commerce marketplaces, Alibaba.com does not operate warehouses, delivery networks or local shopping services in Bangladesh.

"Bangladesh is primarily a strategic global sourcing hub for Alibaba.com," Wang Qiling Vania, senior channel operation specialist at Alibaba International, told The Business Standard.

The company operates through a "platform-plus-local-partner" model. Alibaba.com provides the digital platform and global buyer network, while local partners handle exporter onboarding, training and support.

Company officials said their local partners include Tradeshi, Meidao, Skytech, and Maximo. Through the platform, Bangladeshi exporters can create online storefronts, display products in multiple languages, receive buyer inquiries and bid for international orders using Alibaba's "Request for Quotation (RFQ)" system.

The company also provides training on digital exports, product presentation, buyer communication and online sales strategies.

Despite its growing activities in Bangladesh, Alibaba.com said it has no immediate plans to launch consumer shopping, delivery services or logistics hubs in the country.

Instead, the company is considering a small representative office in Dhaka to strengthen relations with businesses, trade bodies and policymakers.

"Our investment is mainly human and technological, not infrastructure-heavy," Wang said.

Globally, Alibaba.com is one of the world's largest B2B sourcing platforms and competes with wholesale marketplaces such as Amazon Business and IndiaMART.

The company sees Bangladesh as an important sourcing destination because of its strong manufacturing sector and competitive production costs. However, officials believe the country still lags behind regional competitors in digital exports.

Regulations, banking procedures major challenges

Sonobar Maira, domestic channel manager for Bangladesh at Alibaba International, said Bangladesh's B2B e-export penetration remains below 15%, compared to over 30% in Vietnam and India.

She said foreign exchange regulations and banking procedures are major challenges for small exporters in Bangladesh. "Payment confirmation delays and outdated banking systems often create difficulties for SMEs handling smaller export transactions."

To address the issue, Maira said it is piloting localised payment solutions and discussing partnerships with banks and fintech firms, including bKash.

The initiative aims to simplify cross-border settlements and improve transaction efficiency, especially for small export orders below $1,000, she added.

"We are piloting localised payment solutions in Bangladesh to address foreign exchange and settlement delays," she further said. "The initiative is aimed at strengthening its Trade Assurance services and supporting smaller exporters, subject to regulatory approval."

Long-term goal

Sonobar Maira also reiterated Alibaba's long-term goal of helping more than 1,000 Bangladeshi exporters become digitally active in global markets over the next three years.

The company has recently expanded partnerships with several Bangladeshi business associations, including the Bangladesh China Chamber of Commerce and Industry and the Bangladesh Garment Buying House Association, Bangladesh Garments Manufacturers and Exporters Association ETC. The collaborations include exporter training programmes, onboarding support and buyer matchmaking events.

Maira said digital sourcing platforms are becoming increasingly important as global buyers diversify sourcing destinations and rely more heavily on online procurement systems.

She also warned that Bangladesh will need faster foreign exchange approvals, clearer digital trade regulations and more efficient export payment systems to fully benefit from the rapidly growing global digital commerce market.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Push for local home appliance and computer industries

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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