The list of strategic mistakes that led to British Prime Minister Keir Starmer’s resignation on Monday will fill many a book. Yet most stemmed from the belief that an economy felled in 2023 by the war in Ukraine was set for a big rebound, enabling both rapid growth and easy fiscal consolidation. It didn’t. Now, as the war in Iran ebbs, his successor may face a similar test — and will need to ensure the government appears firmly in control.

The path is clear for Andy Burnham to succeed Starmer. The former Manchester mayor favours tighter state control of utilities and higher taxes on property, wealth and investment income. But he has pledged to honour Starmer’s fiscal guardrails like balancing day-to-day spending and putting debt-to-GDP on a falling path. Since those rules are judged against official forecasts rather than actual revenues and spending, the Office for Budget Responsibility (OBR), the UK’s independent fiscal watchdog, will retain its role as the ultimate arbiter of fiscal credibility.

The OBR’s projections have recently held outsized sway, with a downgrade to productivity causing havoc to last year’s autumn budget. What has attracted less attention is whether Starmer’s promises were built on forecasts that turned out to be too rosy. Chief among them was ruling out increases in income and value-added taxes. This left officials constantly scrambling to make ends meet. One solution was raising employer National Insurance, angering businesses and contributing to higher inflation and interest rates in 2025.

In 2024, however, expecting a strong recovery made sense. The departure of Brexit-friendly Conservative governments held the promise of renewed foreign investment. Inflation had fallen back to target, consumption was poised to boom and OBR forecasts suggested GDP growth would rise from 0.3 percent in 2023 to 2 percent in 2025, bringing workers out of welfare. Instead, households remained cautious, disability spending rose and a combination of food inflation and a new energy shock in the Middle East dimmed prospects and kept interest rates elevated. By March, the OBR expected growth of only 1.1 percent this year. Admittedly, no government can escape bad luck and Starmer’s government did much that appeals to its base, such as taxing businesses to maintain benefits, expanding workers’ rights, building renewable-energy capacity and curbing migration. But it was an error to choose economic variables wholly outside of its control as a yardstick for success.

A similar trap may now await Burnham: if the US peace deal with Iran holds, the data could suddenly look more flattering in 2027, and a business‑friendly pick for Treasury chief, such as former Health Secretary Wes Streeting, would calm bond markets. But tweaking taxes and handouts won’t win Burnham an election in 2029. For that, he needs the type of obvious win that made him popular in Manchester. A bold overhaul of social housing could be one. Regardless, he needs to chart his own course: relying on macroeconomic tides has a way of steering ships straight into the rocks.

Country’s foreign aid commitments suffered a decline of around 23 per cent compared with the corresponding period of the previous fiscal year, according to provisional data from the Economic Relations Division (ERD).
FE

The latest Foreign Assistance Monthly Report of the ERD shows that total foreign assistance commitments stood at US$4.22 billion during July 2025-May 2026, down from US$5.48 billion recorded in the same period of FY2024-25.

The decline was primarily driven by a reduction in project assistance commitments, reports UNB.

During the reporting period, project aid commitments amounted to US$4.06 billion in loans and US$158.78 million in grants, compared with US$5.108 billion in loans and US$380.98 million in grants during the corresponding period a year earlier.

No commitments were recorded under food assistance in either fiscal year.

Despite the fall in fresh commitments, foreign aid disbursements remained substantial.

Total disbursements reached US$4.57 billion during July-May of FY2025-26, compared with US$5.60 billion in the same period of FY2024-25.

Project assistance accounted for the bulk of disbursements, amounting to US$4.53 billion, including US$4.14 billion in loans and US$393.81 million in grants.

Food assistance disbursements totalled US$40 million during the period, slightly higher than the US$35 million received in the corresponding period of the previous fiscal year.

Meanwhile, Bangladesh’s debt servicing obligations continued to rise.

According to the ERD data, the country paid US$4.13 billion in principal and interest on foreign loans during the July-May period of FY2025-26, up from US$3.78 billion in the same period of FY2024-25.

Of the total debt servicing payment, US$2.68 billion was repayment of principal and US$1.44 billion was interest.

In local currency terms, total external debt servicing reached Tk 505.16 billion (Tk 50,515.86 crore) during the period, compared with Tk 456.76 billion (Tk 45,676.08 crore) in the corresponding period of the previous fiscal year.

The increase in debt repayments reflects Bangladesh’s growing external debt obligations as several large infrastructure and development projects financed through foreign loans enter the repayment phase.

Chittagong Port, Bangladesh's principal maritime gateway and a key driver of the country's external trade, has recorded strong growth in revenue, cargo handling and container throughput despite continuing uncertainty in the global economy.
FE

According to data released by the Chittagong Port Authority (CPA), the port generated a revenue surplus of Tk 42.87 billion during the first 11 months of fiscal year 2025-26, marking a sharp increase from previous years. After taxes and other statutory payments, the net surplus stood at Tk 22.28 billion.

Port officials attributed the strong performance to improved operational efficiency, cost-control measures, infrastructure upgrades and the introduction of user-friendly policies aimed at enhancing service quality and increasing port capacity.

Between July 2025 and May 2026, the port earned Tk 60.77 billion in revenue, up from Tk 49.52 billion during the corresponding period a year earlier, representing growth of more than 22 per cent.

An analysis of the port's financial performance over the past five years shows a steady rise in revenue surpluses. In 2025, the CPA recorded revenue of Tk 54.60 billion against expenditure of Tk 23.18 billion, resulting in a surplus of Tk 31.43 billion—the highest annual figure at the time.

The surplus stood at Tk 29.23 billion in 2024, Tk 21.43 billion in 2023, Tk 17.34 billion in 2022 and Tk 16.33 billion in 2021.

The authority said strict controls on unnecessary spending helped keep expenditure growth within single digits over the past two years. Revenue expenditure rose by 7.61 per cent in 2025 and 6.50 per cent in 2024.

Operational performance also reached record levels in 2025. Container handling increased by 4.07 per cent to a record 3.409 million TEUs (twenty-foot equivalent units), compared with 3.276 million TEUs in 2024. The increase amounted to 133,442 TEUs year-on-year.

Cargo handling posted even stronger growth. The port handled 138.15 million tonnes of import and export cargo in 2025, up from 123.98 million tonnes the previous year, an increase of more than 14 million tonnes.

Ship handling also reached a historic high, with 4,273 vessels calling at the port in 2025, compared with 3,857 in 2024, representing a growth of 10.5 per cent.

The National Board of Revenue (NBR) expects to collect Tk 415,000 crore in revenue in the current financial year, falling Tk 88,000 crore short of its target.

The tax authority collected Tk 360,642 crore during the July-May period of the current fiscal year, registering 10 percent year-on-year growth. Revenue collection in the 11-month period was Tk 81,442 crore short of the NBR’s revised target for the period, according to preliminary NBR data. NBR field offices logged Tk 29,311 crore in revenue in the first 20 days of June. With this, total tax receipts stood at Tk 389,953 crore in the current fiscal year.

In the remaining 10 days of the fiscal year, a further Tk 25,000 crore is expected to be collected, taking the total to above Tk 400,000 crore, the highest ever in the history of the NBR, the state’s largest tax collector.

The revenue authority expects to collect Tk 43,157 crore more in revenue this year than the actual collection of Tk 368,395 crore in the previous fiscal year.

The tax administration said it has formed three task forces comprising field-level officials from the income tax, VAT and customs wings to accelerate revenue collection.

The task forces have already taken various initiatives to increase tax collection, including the speedy disposal of cases relating to revenue disputes in courts, it added.

The NBR has also taken steps to detect tax evasion and collect evaded taxes, quickly dispose of tax files selected automatically for audit, and monitor the collection of income tax and VAT at source.

The revenue authority has also strengthened post-clearance audit and risk management activities at customs houses, while simultaneously completing income tax and VAT audits of high-risk taxpayers.

Towfiqul Islam Khan, additional director, Research, at the Centre for Policy Dialogue (CPD), said the shortfall from the revised revenue collection target of Tk 588,000 crore, including the NBR’s target, is likely to be Tk 100,000 crore this year.

For fiscal year 2026-27, the government aims to collect Tk 695,000 crore, including the NBR’s target of Tk 604,000 crore. The amount is 18.2 percent higher than the current fiscal year’s revised revenue target for the NBR.

If the NBR’s projection of Tk 415,000 crore is taken into account, the tax authority will have to collect 45 percent more revenue next fiscal year.

Khan said that, given the current trend in revenue collection, there is a risk of a Tk 100,000 crore shortfall next year as well.

“There has to be extraordinary performance in revenue collection to achieve the target. For this, the NBR has to curb tax evasion and improve institutional capacity,” he said. “There is no alternative to reforms to do this. Revenue mobilisation will be a defining factor in the implementation of the budget for the next fiscal year.”

Until May, income tax collection recorded the highest year-on-year growth, followed by VAT and supplementary duty (SD) from domestic economic activities and import tariffs collected by customs.

The NBR logged Tk 121,072 crore from direct, or income, tax in July-May of fiscal year 2025-26, up 12.5 percent year on year.

Collection of VAT and SD from domestic sources, the largest source of revenue, grew 10 percent year on year to Tk 140,168 crore.

Collection of import and other tariffs from international trade grew 7 percent year on year to Tk 99,402 crore.

Around 95 percent of farmers in Bangladesh use unbalanced combinations of nitrogen, phosphorus, potassium and sulphur, raising concerns over soil health, crop productivity and the long-term sustainability of agriculture, according to a recent World Bank report.

Only 5 percent of farmers apply nutrients in balanced proportions, according to the report, “Repurposing Agricultural Public Spending for Quality Growth and Jobs in Bangladesh’s Agrifood System”, launched on June 15.

The study found that about two-thirds of farmers overuse phosphorus, nearly nine in ten apply too little sulphur, and six in ten fall short on potassium.

Nitrogen use is also uneven, with underapplication among rice growers and excessive use in onion and vegetable cultivation.

Nutrient imbalances vary significantly across regions. Underdosing is more common in Barishal and Sylhet, while excessive application is more prevalent in Khulna and Rajshahi.

Correcting these imbalances could increase yields by 33 percent for Boro rice, 65 percent for Aman rice and 87 percent for potatoes, the report said.

BRIDGING THE KNOWLEDGE GAP

Jonaed Shohol, a research analyst at the World Bank, told The Daily Star that the low adoption of balanced nutrient practices stems largely from farmers’ limited awareness of scientifically developed recommendations.

Although the Bangladesh Agricultural Research Council (BARC) has established guidelines, these are not being effectively communicated to growers. As a result, many continue to rely on traditional methods rather than scientific advice.

Shohol identified weaknesses in the Department of Agricultural Extension (DAE) as a key factor behind the information gap. According to him, the agency is responsible for equipping farmers with the knowledge needed to adopt recommended practices, but current efforts remain inadequate.

THREAT TO SOIL AND YIELDS

Beyond reducing crop yields, improper application is accelerating soil degradation, Shohol warned.

He said soils are becoming more acidic and less capable of retaining water, trends that could undermine fertility and future agricultural production.

Agriculture Minister Mohammed Amin Ur Rashid told The Daily Star that the average soil pH in Bangladesh is around 4.5, whereas a level above 6.5 is needed to improve soil quality.

Excessive use of chemical inputs has increased acidity and reduced fertility, he said, adding that the government is conducting extensive soil testing nationwide to assess conditions.

At a recent event, Md Abdur Rahim, director general of the DAE, said continuous cropping has depleted soil organic matter, with some land now producing up to four crops a year.

Organic matter, which should ideally account for around 5 percent of soil composition, averages just 0.5 percent to 1.7 percent in Bangladesh, he added.

“To achieve optimum yield capacity, at least 2 percent organic matter is required. Because of this deficiency, expected crop yields are not being achieved,” Rahim said.

“If we cannot increase organic matter content in the future, sustainable agriculture will not be possible.”

RETHINKING RECOMMENDATIONS

The World Bank report said farmers could raise output by about 25 percent through more efficient use of existing land, labour and agricultural inputs.

To improve awareness, Shohol suggested greater use of social media, television and radio programmes, as well as billboards carrying area-specific recommendations.

Moin Us Salam, a former professor in the Department of Agronomy at Bangladesh Agricultural University, said the widely held belief that farmers use excessive inputs warrants closer examination.

He explained that recommendations are generally developed by BARC through research station trials and consultations. However, their effectiveness depends on how well the underlying data represent conditions in specific fields or upazilas.

Referring to Bihar in India, Salam said soil nutrient mapping is being carried out at the level of individual plots, with about half the work already completed.

Such an approach allows for plot-specific recommendations, whereas Bangladesh does not yet tailor guidance to individual plots, he said.

The agriculture minister said limited awareness among field-level government officials regarding soil health has also contributed to the widespread use of unbalanced nutrient mixes.

He added that under the government’s proposed policy approach, input use could be reduced by more than 23 percent while yields increase, lowering production costs and improving productivity.

Beximco Pharmaceuticals has moved a step closer to resolving the boardroom standoff that put its London listing at risk, after Bangladesh’s stock regulator gave the company the go-ahead to hold a board meeting and finally sign off on its overdue accounts.

The Bangladesh Securities and Exchange Commission (BSEC) has given consent to the drugmaker convening a board meeting to approve audited financial statements for the year to June 30, 2025.

Clearing that backlog could help the company meet the rules of London’s Alternative Investment Market (AIM) and avoid cancellation of its securities from trading in London.

The latest regulatory decision follows months of uncertainty triggered by a legal dispute over board composition.

After the political changeover in 2024, the BSEC appointed nine independent directors to Beximco Pharma following a directive from the finance ministry. Beximco Pharma challenged the move in court. Its board has not met to approve accounts, or publish results, since.

In a disclosure to the Dhaka Stock Exchange (DSE) yesterday, the pharma company said its board would meet today to consider the delayed accounts.

Mohammad Asad Ullah, company secretary of Beximco Pharma, said, “The previous board will hold the board meeting as the new board remains under the litigation process.”

“This approval was given by the BSEC,” he added.

In its letter granting consent, the BSEC said it gave the go-ahead “for the protection of greater interest of the investors, accords its consent to hold the meeting of the board of directors of Beximco Pharmaceuticals PLC for the purpose of approval and publication of the financial statements of Beximco Pharmaceuticals PLC and its subsidiaries”.

Md Abul Kalam, spokesperson of the BSEC, said the decision was taken to protect both investors and the country’s market reputation

“To save the image of the country and for the interest of investors, the regulator allowed the board meeting,” he said.

Beximco Pharma is currently the only Bangladeshi company listed on AIM. Kalam said the possibility of delisting would have implications for the credibility of Bangladesh’s capital market.

The governance dispute has had consequences for shareholders, too. Since the legal dispute began, Beximco Pharma has not published quarterly results or annual financial statements.

The absence of audited accounts led to the suspension of trading in its global depositary receipts on AIM on January 2.

Under London Stock Exchange rules, a company must publish audited annual accounts within six months of its financial year ends. If trading remains suspended for six months, admission can be cancelled unless issues are resolved.

As the deadline approached, concerns grew among investors that the suspension could result in delisting.

Shares in Beximco Pharma fell 1.58 percent to Tk 143 on the Dhaka Stock Exchange yesterday, having risen earlier in the week on hopes of a breakthrough.

Speaking on condition of anonymity, a top official of a brokerage house said the regulator’s involvement has been read by investors as a signal that the matter is finally being taken seriously.

The SME stock index soared more than 43 per cent in the six months through June 22 this year, driven largely by abnormal gains in most stocks despite weak corporate earnings and the absence of significant business developments.

Data shows that 17 out of the 20 listed SME stocks registered gains ranging from a modest 0.5 per cent to as much as 153 per cent during the period. As a result, the market capitalisation of the SME board climbed more than 38 per cent to Tk 24.16 billion.
Many of the SME stocks experienced unusual upward movements despite reporting lower earnings, stagnant business growth and no major corporate disclosures that could drive such substantial price surges.The SME sector's financial performance remained under pressure in FY25 as economic activity slowed following the political transition in August 2024. Most SME companies reported year-on-year profit declines for the fiscal year amid weak demand, higher operating costs and cautious business sentiment.

Against this backdrop, investors chased SME stocks, raising concerns that the rallies were driven by speculative trading and market manipulation.

Prices of four SME stocks - Al Madina Pharma, Apex Weaving, Master Feed and Web Coats - more than doubled on the platform during the period.
Al Madina Pharma's stock jumped 153 per cent to Tk 71.3 per share since December last year, despite the company reporting a 33 per cent decline in profit year-on-year to Tk 11.8 million in FY25.Following the abnormal price surge, the Bangladesh Securities and Exchange Commission (BSEC) asked the Dhaka Stock Exchange (DSE) to investigate the trading activities surrounding the stock.Bangladesh economic outlook

The probe will examine whether there was any coordinated market manipulation, abnormal trading activity among investors, or insider trading involving undisclosed price-sensitive information.

Apex Weaving and Finishing Mills also saw its stock price double from the level of December 30 by June 22, even though production at the company has remained suspended for a prolonged period due to gas and electricity disconnections and unpaid utility bills.

Web Coats, a manufacturer of premium paper and board products, posted a 151 per cent rise in its stock price to Tk 28.9 by Monday, although its profit fell 29 per cent year-on-year to Tk 38.4 million in FY25.

"The limited free-float shares and relatively low liquidity of SME companies make them vulnerable to speculative trading," said Md Sajedul Islam, a director of the DSE.

When the broader market shows a rising trend, some investors tend to flock to speculative stocks in pursuit of quick gains, causing prices to surge without any fundamental reason, he said.

Mr Islam advised investors to remain cautious and focus on companies with strong earnings prospects, sound corporate governance and sustainable business models instead of chasing momentum-driven rallies.
Akramul Alam, head of research at Royal Capital, said many investors were increasingly betting on small-cap companies to make quick profits as the broader market maintained an upward trajectory over the past several months.The benchmark DSEX of the prime bourse gained nearly 14 per cent, or 689 points, during the six months through Monday, supported by expectations of stronger regulatory reforms to deepen the capital market under the newly elected government.

However, Mr Alam warned that SME companies generally carry higher business and liquidity risks than large-cap firms."Investors should carefully examine financial statements, governance practices and business fundamentals before making investment decisions," he said.

Meanwhile, two SME stocks that previously played a major role in driving the SME index higher - Himadri and Yusuf Flour Mills - experienced significant corrections during the period.

Himadri's stock price fell 27 per cent to Tk 480 per share between December 30 last year and June 22 this year, while Yusuf Flour Mills dropped 26 per cent to Tk 1,622 during the period.

The Financial Express previously published a series of reports highlighting abnormal price movements in several SME and small-cap stocks, particularly Himadri and Yusuf Flour Mills.

Little-known SME stock Himadri exhibited abnormal price increases, reaching Tk 10,000 per share in November 2023 despite a lack of supporting fundamentals.
In November 2024, the securities regulator fined one individual and three firms a total of Tk 17 million for manipulating Himadri's stock price.Yusuf Flour Mills peaked at Tk 6,352 in June 2024 without any apparent reason for investors to bet on the stock, leaving market experts in awe, as shares of many well-performing firms offering handsome profits and dividends were nowhere near that level.

Even after the corrections, Himadri and Yusuf Flour Mills remain significantly overvalued, with price-to-earnings (P/E) ratios of 126 and 114 respectively as of Monday.

Bangladesh's foreign exchange reserves stood at $35.74 billion, according to the latest data released by the Bangladesh Bank (BB) today (Monday).The central bank said that under the International Monetary Fund's (IMF) Balance of Payments and International Investment Position Manual (BPM-6) accounting standard, the country's reserves were recorded at $31.18 billion, BSS reports. Bangladesh economic report

Officials noted that the reserve position reflects the country's external sector stability amidst ongoing global economic uncertainties.

The government is going to float its first short-term sukuk, a shariah-compliant investment instrument similar to bonds, as strong demand builds among both individual and institutional investors looking for short-term returns.

For the government, the Bangladesh Bank (BB) will hold auctions on June 28 for the nine-month tenure instrument to raise Tk 5,500 crore. The amount will be used for the development of important rural infrastructure.

“We have been receiving a huge response to investment in sukuk, as reflected in the bids. This means that there is demand in the market,” said Istequemal Hussain, director of the Debt Management Department of BB.

The move comes amid continued strong appetite for sukuk.

Today, the central bank raised Tk 5,600 crore through an auction for a sukuk issued to finance the rehabilitation of rural infrastructure damaged by Cyclone Amphan and floods. It received bids worth Tk 44,490 crore, nearly eight times the target amount.

Last month, the BB received bids worth 12 times the face value of a Tk 5,900 crore sukuk from banks, finance companies and individuals.

Interest in the shariah-compliant instruments has been rising since their launch in December 2020. So far, the government has raised around Tk 48,000 crore through sukuk issuance. The total will cross Tk 53,000 crore after the upcoming short-term auction.

Hussain said there is currently no government-issued investment instrument with a nine-month maturity.

“At present, there are 91-day, 182-day and 364-day treasury bills for investment,” he said. “So, we see a good prospect.”

The short-term sukuk will offer a 9.36 percent annual return, termed as annual rental (profit). The profit, estimated at Tk 385 crore, will be paid in a lump sum upon maturity.

The minimum investment has been set at Tk 10,000, according to the BB.

“All resident and non-resident individuals and institutions can invest in sukuk,” the central bank said, adding that investments can be made through accounts maintained with any bank or financial institution.

It also said tax rebate facilities will be available, similar to those offered on other government securities.

Banks and financial institutions maintaining Al-Wadeeah current accounts, a shariah-compliant banking arrangement, with the BB will be eligible to participate directly in the auction.

Local and foreign individuals, corporate bodies, investment firms, insurance companies, provident funds and deposit insurance funds can also participate through banks and financial institutions, it added.

In the proposed national budget for fiscal year 2026-27, the government has prioritised expanding the use of sukuk alongside corporate bonds, mutual funds and green bonds to reduce excessive reliance on bank-based financing.

The budget mentions that the use of sukuk, along with infrastructure funds, will be increased to support long-term public and private projects.

Hussain said the central bank looks to raise Tk 25,000 crore through sukuk in fiscal year 2026-27.

He noted that total outstanding investment in government bills and bonds stands at around Tk 5 lakh crore. Taking into account the 27 percent share of shariah-based banks in the banking sector, there is a potential sukuk investment pool of nearly Tk 1 lakh crore.

So far, the government has issued sukuk with tenures of five to seven years, raising about Tk 48,000 crore in total.

Bangladesh and Malaysia on Monday expressed their commitment to advancing negotiations with a view to concluding a Free Trade Agreement (FTA) between the two countries in 2027, for a "mutually beneficial, comprehensive and forward-looking" agreement that reflects current global trading practices.
The leaders, Prime Minister Tarique Rahman and Malaysian Prime Minister Anwar Ibrahim, welcomed the progress made towards the commencement of negotiations on the FTA between the two countries, UNB reported, citing a joint statement shared by the Ministry of Foreign Affairs.Bangladesh stock market

Both leaders acknowledged the significance of bilateral trade and investment relations, noting that Bangladesh remains Malaysia's second-largest trading partner in South Asia.

They expressed their commitment to further strengthening economic cooperation and facilitating two-way trade and investment.

The two prime ministers welcomed the progress made in the establishment of the Malaysia-Bangladesh Joint Business Council (JBC), which will serve as the key bilateral institutional mechanism for structured dialogue and the exchange of ideas to facilitate active collaboration between the private sectors of the two countries, thereby expanding bilateral economic, trade and investment ties.

Stressing the importance of enhancing trade, investment and sustainable economic partnership, the leaders encouraged greater collaboration across priority sectors including telecommunications, energy, infrastructure (e.g., roads, bridges, elevated expressways and digital public infrastructure), ports and logistics, the halal industry, agro-processing, education and skills development, the digital economy, semiconductors, smart manufacturing and other high-value industries.

The leaders further encouraged closer cooperation between relevant government agencies, investment promotion agencies, industry players and business communities of both countries through investment facilitation, technical cooperation, capacity building, technology transfer, talent development, business matching and strategic partnerships, aiming to foster industrial upgrading, strengthen regional and global value chain participation, and create mutually beneficial investment opportunities for both nations.

They acknowledged the significant commercial potential of the global Islamic economy.Economic zone consulting

Recognising Malaysia’s expertise and extensive experience in the development of the halal ecosystem, they agreed to strengthen bilateral cooperation in support of Bangladesh’s development of its halal sector.

They acknowledged the Exchange of Notes on Cooperation in the Field of Halal Ecosystem and welcomed ongoing collaboration between the Department of Islamic Development Malaysia (JAKIM) and the relevant regulatory authorities of Bangladesh.

They reaffirmed their commitment to further enhancing cooperation in areas including halal certification, the development of regulatory frameworks, capacity building and training of professionals, research and innovation, as well as institutional strengthening.

Labour Cooperation

In line with Malaysia’s current policy on foreign labour intake, both Bangladesh and Malaysia recognised that approvals for new foreign worker quotas are currently evaluated strictly on a case-by-case basis, contingent upon verified employer requirements and sectoral ceilings.

"For any such approved quotas, both nations reaffirmed their commitment to ensuring the recruitment process is transparent, fair, non-discriminatory, and competitive, utilising only credible and qualified recruitment agencies," according to a joint statement shared by the Ministry of Foreign Affairs.

Both countries have agreed to convene the Joint Working Group (JWG) to ensure the "continued, safe, and mutually beneficial" migration of Bangladeshi workers to Malaysia.

The meeting will focus on evaluating the existing Memorandum of Understanding (MoU) and laying the groundwork for drafting a new, updated MoU that meets the current needs of both nations.

Malaysia acknowledged Bangladesh’s proposal regarding the recruitment of workers.

The leaders, Prime Minister Tarique Rahman and Malaysian Prime Minister Anwar Ibrahim, recognised the importance of people-to-people connectivity and welcomed the contribution of Bangladeshi workers to the development of Malaysia.

They noted that the Bangladeshi expatriate community plays a part in fostering bilateral exchanges and shared economic activities between Malaysia and Bangladesh.Bangladesh stock market

Education and Tourism Cooperation

Recognising the presence of around 11,000 Bangladeshi students in Malaysia, and their positive contribution to academic exchange and socio-economic linkages between Bangladesh and Malaysia, as well as the value they bring upon returning to Bangladesh, both leaders agreed to strengthen cooperation in the field of education, including through university-to-university partnerships and joint research programmes, focusing on technical and vocational education and training (TVET).

Both sides emphasised the importance of expanding mutually recognised qualifications, joint degree programmes and flexible learning pathways.

The leaders also stressed the importance of aligning academic programmes with labour market needs and priority sectors in both countries, with particular focus on graduate mobility and skills development.

Both leaders expressed optimism about expanding tourism cooperation, particularly in light of Malaysia’s "Visit Malaysia 2026" (VM2026) and "Malaysia Year of Medical Tourism 2026" (MYMT2026) campaigns.

Malaysia extended a warm welcome to Bangladeshi travellers, and the leaders agreed to enhance tourism promotion and cultural exchanges between the two countries.

Bangladesh Investment Development Authority currently has around $400 million in potential investments from Chinese companies in its investment pipeline, according to Bida.

This figure may increase further following Prime Minister Tarique Rahman's visit to China from 23 to 26 June, they hope.

Preparations have been taken for a major investment conference in Beijing during the visit, where Bangladesh will showcase new investment opportunities to prospective Chinese investors.

Several bilateral meetings between the prime minister and leading Chinese companies are expected to be held, officials said.

The investment authority has identified key sectors attracting the strongest interest from Chinese investors, including electronics, semiconductors, electric vehicle batteries, advanced and technical textiles, logistics, medical devices and IT-enabled services.

The agency plans to highlight Bangladesh's competitive advantages in these sectors, including its workforce, market access and export potential.

"Chinese investment could become one of Bangladesh's largest sources of foreign investment in the coming years," Nahian Rahman Rochi, executive member and head of business development at Bida, told TBS.

"Chinese companies currently account for approximately $400 million in potential investments in the investment pipeline of the Bida," he said.

"Investment prospects are expanding around existing initiatives, particularly the Chinese Economic Zone. This will create mutual benefits for both countries and strengthen Bangladesh's position as a manufacturing partner," Nahian said.

According to Bida officials, nearly 70 companies from 20 countries, including China, are currently included in its investment pipeline. Established in 2025, the pipeline contains potential investment proposals worth approximately $1.5 billion, they said.

The agency aims to add another $1.5 billion in investment proposals during 2026, raising the total pipeline value to $3 billion by the end of the year.

Nahian said they expect at least 25% of the investment proposals in the pipeline to reach implementation.

"To achieve this, we have strengthened regular follow-ups, direct engagement with investors and coordination through country-specific officers responsible for facilitating investments," he said.

He added that Buda is using a data-driven sector mapping and scoring system to identify industries with the highest investment potential and determine which sectors are most attractive to Chinese investors.

Proposal for second Chinese economic zone

Work is progressing on the government-to-government Chinese Economic and Industrial Zone in Anwara, Chattogram.

Beyond it, China has also proposed establishing a second specialised economic zone in Mongla.

Speaking at an event in Dhaka on 18 June, Bida and Beza Executive Chairman Ashik Chowdhury said ensuring progress on the Chinese economic zone would be one of the key investment agendas during the prime minister's visit.

"We expect to see meaningful progress that could pave the way for the commencement of on-the-ground work at the Chinese Economic Zone," he said.

Ashik said China has shown interest in setting up a second economic zone in Mongla and that important decisions on the proposal could emerge during the visit. Progress may also be made regarding the establishment of a Bdia representative office in China.

He noted that China has remained one of Bangladesh's leading sources of foreign investment over the past five years, prompting the government to advance several investment initiatives around the visit.

According to the latest data from the Bangladesh Bank, net foreign direct investment inflows into the country rose 39.36% year-on-year to $1.77 billion in 2025, up from $1.27 billion in 2024.

China ranked as the second-largest source of net FDI after the Netherlands during the period.

Bangladesh's lubricant sector is pushing back against a proposed budget measure that would replace fixed customs values for synthetic and semi-synthetic lubricants with a floating formula based on Independent Commodity Intelligence Services (ICIS) price assessments.

Industry stakeholders argue that because no internationally recognised ICIS benchmark exists for finished lubricants, the proposal risks creating valuation disputes, revenue leakage and market distortions rather than strengthening tax compliance.

In the proposed FY2026-27 budget, the National Board of Revenue (NBR) suggested replacing the existing fixed minimum customs values for imported synthetic and semi-synthetic lubricants with a floating valuation formula based on international price assessments published by ICIS, plus a minimum 30% markup.

Currently, Bangladesh applies minimum customs values of $3,200 per tonne for semi-synthetic lubricating oil and $5,000 per tonne for synthetic lubricating oil. The budget proposal would replace those separate benchmarks with a common ICIS-based assessment method.

However, industry stakeholders argue that the proposed mechanism may fail to achieve its intended goal of revenue protection because ICIS does not provide any internationally recognised benchmark price for finished synthetic or semi-synthetic lubricant as standalone products.

They fear that instead of strengthening customs valuation, the new method could create valuation disputes, encourage misdeclaration and allow lower-quality products to enter the market.

According to the Bangladesh Lube Blenders Association, Bangladesh's lubricant market is currently worth around Tk8,000 crores, with annual demand estimated at 1,60,000-1,70,000 tonnes. More than half of the domestic demand is now met by local blending companies.

The market has expanded rapidly due to rising demand from transport, industrial manufacturing, power generation, agriculture and construction sectors.

Major international brands including Mobil, BP, TotalEnergies, Castrol and Petronas operate in Bangladesh, while state-owned Jamuna Oil, Padma Oil and Meghna Petroleum are involved in blending and distribution. Local companies such as Lub-ref Bangladesh have also established a significant presence in the market.

Why the industry objects

In a recommendation submitted to the NBR, industry stakeholders said ICIS publishes prices for different categories of base oils but does not provide a standard international reference price for finished synthetic or semi-synthetic lubricants.

They said finished lubricants are not simply base oils; rather, they are highly engineered products produced through combinations of different base oils, additive technologies and proprietary formulations.

As a result, the industry asked which ICIS price would be used as the benchmark and whether it would be based on a particular grade, viscosity level, market or time period.

Azam J Chowdhury, managing director of MJL Bangladesh PLC, said there is no global ICIS standard for synthetic or semi-synthetic lubricants because they are blended products.

"These oils are produced using different combinations of Group I, Group II, Group III, Group IV and Group V base oils. The exact formulation is a patent and commercial secret of the manufacturers. It is not possible for customs authorities to determine the composition and calculate a uniform value," he said.

He added that two products labelled as synthetic lubricants may have completely different formulations and production costs depending on the technology used by manufacturers.

Revenue loss, market distortion risks

Industry stakeholders fear the proposed valuation system could unintentionally reduce government revenue by creating a gap between actual import prices and customs-assessed values. They said high-quality synthetic lubricants are currently traded internationally at around $6,000 per metric tonne or higher, while the proposed ICIS-based formula could result in significantly lower assessed values in some cases.

Such a gap, they warned, may encourage under-invoicing and reduce collections from customs duties, VAT, advance tax (AT) and advance income tax (AIT). They also raised concerns that manipulated import values could increase risks of trade-based money laundering.

The industry further argues that finished lubricants cannot be valued solely based on base oil prices. The final price depends on several factors, including advanced additive packages, research and development, international manufacturer approvals, packaging and supply-chain costs. In many premium lubricants, additives account for a substantial portion of production costs and may even exceed the value of base oils.

Stakeholders say applying a uniform 30% markup on base oil-related benchmarks would fail to capture the actual value of finished lubricant products.

They also fear that an unclear valuation mechanism could create unfair competition, allowing businesses that under-declare import values to gain an advantage over compliant companies importing genuine branded products.

According to industry representatives, this could encourage the entry of low-quality lubricants into the market, posing risks for vehicles, industrial machinery, power plants and agricultural equipment. Modern engines, particularly hybrid and high-performance vehicles, require lubricants that meet strict technical specifications, and the use of unsuitable products could increase maintenance costs and reduce equipment efficiency, they added.

An NBR official told The Business Standard that the revenue authority is discussing the issue with both lubricant importers and local blending companies.

"After receiving applications from the industry, we are talking with both groups. We want to formulate a policy that does not harm any industry while ensuring proper revenue collection," the official said.

The official added that changes could be incorporated into the final budget.

Wayez Mahmud, Director (Sales & Marketing) at United Lube Oil Limited, the distributor of Petronas lubricants in Bangladesh, said it is not the right time to introduce an ICIS-based customs valuation system for lubricant imports.

He argued that the NBR should rely on actual import data and declared transaction values rather than a pricing benchmark that does not exist for finished lubricant products.

"About 80% of the lubricant market consists of mineral oils, while synthetic and semi-synthetic oils account for a relatively small share. Synthetic lubricants are produced using different combinations of base oils from various groups, making it impossible to determine a uniform value based on ICIS references," he told The Business Standard.

He suggested that the NBR adopt a data-driven approach based on the average import prices of different importers, supported by exporters' declared values and recent import statistics.

While the proposed national budget contains several positive signals, including business-friendly measures, tax incentives and investment promotion initiatives, experts have questioned whether its ambitious targets can be achieved in the current economic climate.

They said the budget’s success hinges on deep structural reforms in key institutions, particularly the National Board of Revenue (NBR) and the Anti-Corruption Commission (ACC). Without such reforms, implementation of the government’s fiscal agenda could prove difficult.

Economists, journalists and business leaders made the observations at a discussion titled Fiscal Priorities and Economic Justice: A Critical Review of the FY 2026-27 National Budget, organised by the Bengal Institute of Peace and Economic Development in Dhaka yesterday.

“Although the budget contains several encouraging measures for businesses and investors, the overall fiscal targets are highly ambitious. Achieving these goals without fundamental institutional reforms will be difficult,” said AKM Waresul Karim, a dean at North South University.

He said the budget sets aggressive targets for growth, investment and public expenditure, but the governance and institutional reforms needed to achieve them remain largely unaddressed.

In particular, the modernisation and digital transformation of the NBR are essential. Unless millions of taxpayers -- both individuals and businesses -- are brought under an automated tax administration system, the ambitious revenue target may remain unrealistic.

“In our view, unless tax administration is modernised and automation is expanded significantly, the government’s revenue targets may prove difficult to achieve.”

Failure to meet revenue targets could force the government to rely more heavily on domestic and foreign borrowing, increasing debt-servicing costs, weakening the country’s credit rating, creating pressure on private investment and reducing policy flexibility.

If revenue collection falls short, excessive borrowing could create long-term macroeconomic risks, including rising interest burdens and reduced fiscal space, he added.

Another concern lies in the banking sector. Although the government acknowledges political influence and non-performing loans, a clear reform roadmap remains absent. The government’s plan to borrow Tk 112,000 crore from the banking system could further crowd out private-sector investment.

The scale of borrowing may reduce credit availability for private businesses and discourage fresh investment, he added.

Towfiqul Islam Khan, an additional director for research at the CPD, said the government’s success should be judged by long-term implementation and the quality of expenditure rather than short-term budgetary targets.

A major systemic issue, he said, is the persistent reliance on inflated projections and the NBR’s conflicting dual role as policymaker and tax collector.

He stressed that although some revenue measures appear business-friendly, the budget contains unnecessary “fat”.

Kazi Jesin, a broadcast journalist and television talk show host, supported reforms such as cashless banking to curb rampant tax evasion. She criticised traditional metrics, noting that previous governments’ GDP growth failed to prevent widespread financial hardship, looting or poverty.

Urging political factions to stop making immediate calls for the government’s downfall, she argued that restoring investment and building trust require stability and unity.

“To make the budget effective, critics need to offer constructive suggestions rather than just predicting failure.”

Ultimately, true development lies in maximising human capital and technical training, she added.

Zina Tasreen, a senior sub-editor at The Daily Star, said the budget was not drafted with current realities in mind, failing to recognise that Bangladesh’s economy is experiencing stagflation.

“So there isn’t any workable way out of our current economic situation. The budget assumed that we can spend our way out of any problem, as in Western nations. But our reality is different: strained reserves.”

“The moment we go on expansion, our dollar reserves will deplete fast, and what will happen to inflation then? This is an elementary flaw of the budget.”

She said the budget also leaned too heavily towards a welfare-state model, meaning it does not sufficiently encourage capitalism, productivity and success.

“Can a nation move forward with that sort of a mindset? Globally, all successful welfare states are moving away from that, as it’s not sustainable. But, we, a poor and overpopulated nation, are heading that way.”

Fahim Mashroor, CEO of Bdjobs, said the budget measures have the touch of heart but lack the application of brainpower, reflecting good intentions and empathy while falling short in strategic thinking and practical execution.

The government has proposed allocating Tk 200 crore to support research, innovation and development activities in Bangladesh's blue economy.

Of the total amount, Tk 100 crore has been earmarked for a "Blue Economy Research Fund", while the remaining Tk 100 crore will be allocated for the development of the blue economy, according to the budget proposal for the next fiscal year.

The allocation comes as the government seeks to tap marine resources and increase fisheries exports to $1 billion by 2030, up from around $450 million recorded in fiscal year 2024-25.

In his budget speech, Finance Minister Amir Khosru Mahmud Chowdhury said the government has adopted a plan to operate commercial vessels for harvesting tuna and other pelagic fish in deep-sea waters and to expand seaweed cultivation in order to promote marine-based economic activities.

To strengthen marine conservation efforts, Kuakata and Salimpur will be declared new marine protected areas, while a modern fishing port will be established at Matarbari to ensure the sustainable use of marine resources.

The government is also implementing a project to upgrade the Bangladesh Fisheries Development Corporation's fish landing centre in Cox's Bazar to support the optimal utilisation of marine resources.

London's domestically focussed FTSE index slipped to a one-week low on Monday, bogged down by political uncertainty after Prime Minister Keir Starmer said he will resign, reports Reuters.

The internationally focussed FTSE 100 index slipped 0.1 per cent by 0930 GMT, while the midcap FTSE 250 dropped 0.7 per cent.Greater Manchester mayor Andy Burnham, who recently won parliamentary elections, stands as the top candidate for prime minister, although investors say a change in leadership is unlikely to change conditions a lot."Britain's been going in the wrong direction and I don't really think, unfortunately, that any replacement for Keir Starmer, is going to be much different," said David Morrison, senior market Analyst at Trade Nation.

Rate-sensitive household goods and home-construction stocks fell over 1 per cent and were among top sectoral decliners while the pound eased 0.1 per cent versus the dollar.Former health minister Wes Streeting is also in the leadership race, but one senior figure in the party said they believed Streeting could do a deal with Burnham, giving him a senior role if he stayed out of the contest.
"I rather think that Rachel Reeves will probably be gone fairly soon. If we find out that Wes Streeting isn't going to stand and gives Burnham his full support, then he might get rewarded with something like Chancellor of the Exchequer," Morrison said.Reeves was the Chancellor in the government led by Starmer, whose resignation paves the way for Britain to have its seventh leader in a decade.

The next candidate will be scrutinized over fiscal policy plans at a time when concerns over debt-backed public spending has sent the yield on the benchmark 10-year Gilt to its to its highest since 2008.

Citizens have been disappointed over Starmer's handling of the economy as public debt and borrowing costs soared in recent years.

Geopolitical tensions in the Middle East also had investors price in no change to interest rates by the Bank of England this year, according to LSEG-compiled data.

Economic and political uncertainty, alongside geopolitical concerns, have weighed on the domestically focused midcap FTSE index, which underperforms the blue-chip FTSE 100 index this year.

In M&A news, easyJet rose 3.1 per cent and was among top movers on the FTSE 250 index after Castlelake disclosed its £4.74 billion ($6.26 billion) takeover bid for the budget carrier. The airline had rejected three proposals from the US investment firm.
Babcock International lost 5.2 per cent after the defence and engineering group reported a 19 per cent drop in annual underlying operating profit.Globally, there was some relief that negotiations to end the US and Iran conflict were continuing. However, investors awaited clarity that shipping would resume through the Strait of Hormuz.

Economists and development experts have raised concerns over structural weaknesses, ambitious revenue assumptions and widening inequality risks in the proposed FY2026-27 national budget, while acknowledging some reform-oriented and sector-specific incentives.

They made the observations at a post-budget analysis event titled "Fiscal Priorities and Economic Justice: A Critical Review of the FY2026-27 Budget", organised by the Bengal Institute of Peace and Economic Development in Dhaka today (22 June).

The keynote paper was presented by AKM Waresul Karim, dean of the Department of Economics at North South University.

Karim said the proposed budget, set at Tk9.38 lakh crore – the largest in the country's history – has been prepared amid slowing GDP growth, high inflation, rising debt and pressure in the banking sector. Development spending is allocated Tk3.16 lakh crore, while non-development expenditure accounts for 66.3% of total outlay.

He noted that revenue mobilisation remains heavily dependent on the National Board of Revenue (NBR), requiring a 43.79% growth target, which he described as a major implementation challenge.

He, however, welcomed several measures including higher education allocation, startup funding, tax relief for electric vehicles and freelancers, and capital market reforms.

At the same time, he warned that regressive taxation measures, high revenue targets, rising housing costs and tax whitening provisions could undermine equity and investment.

CPD Additional Director Toufiqul Islam Khan said the budget reflects gradual evolution rather than structural change, with persistent gaps between revenue targets and economic realities.

He stressed the need to separate policy formulation from revenue administration and called for stronger investment in education and health to support long-term recovery and reduce inequality.

BDJobs CEO Fahim Mashroor highlighted the political economy dimension of fiscal planning, saying project cuts affect not only public spending but also local economic ecosystems, as political actors also operate within economic structures.

Change Initiative Executive Director Zakir Khan described the budget as "emotionally driven rather than strategically designed", noting incentives for green industries and social sectors but warning that environmental degradation and health costs are eroding development gains.

He also urged stronger accountability mechanisms to ensure effective budget implementation.

The stock market suffered its sharpest fall in months today (22 June), with investors rushing to sell amid concerns over stricter regulatory surveillance and year-end profit-booking.

The Dhaka Stock Exchange (DSE) lost around Tk6,000 crore in market capitalisation in a single session as sellers dominated trading from the opening bell.

The benchmark DSEX index plunged 85 points, or 1.51%, to 5,554, while the blue-chip DS30 index fell 35 points to 2,110.

Market breadth remained overwhelmingly negative, with 319 stocks declining, 36 advancing, and 34 remaining unchanged. Turnover on the DSE dropped 13% to Tk876 crore. Market insiders described the sell-off as being driven by a "surveillance ghost" haunting investors.

Following directives from the newly reconstituted Bangladesh Securities and Exchange Commission (BSEC), the DSE has strengthened its real-time market surveillance to curb manipulation. The bourse recently suspended trading in three companies over unusual price movements and launched investigations into rallies in at least seven other stocks.

Ashequr Rahman, managing director of Midway Securities Limited, said fears over real-time surveillance contributed to the market decline, although fiscal year-end portfolio adjustments were also a key factor.

"Institutional investors and high-net-worth individuals are liquidating holdings before the fiscal year ends on 30 June. They want to realise gains and recalibrate their investment strategies for the coming year," he told The Business Standard.

Ashequr said the DSE should establish transparent criteria for selecting stocks for investigation to avoid perceptions of bias and unnecessary panic among investors.

Saiful Islam, president of the DSE Brokers Association (DBA), said regulators are mainly targeting the manipulation of non-operational or "paper" companies that have repeatedly trapped retail investors.

According to Sheltech Brokerage Limited's daily market review, investor sentiment was also weakened by renewed geopolitical tensions and domestic political uncertainty. Selling pressure was evident from the start of trading as investors avoided taking fresh positions.

The pharmaceutical sector accounted for the largest share of turnover at 16.4%, followed by engineering and textiles. However, nearly all sectors ended lower.

The miscellaneous sector posted the steepest decline, falling 3.5%, followed by information technology and non-bank financial institutions. People's Leasing and Fareast Finance were among the top gainers, while Dominage Steel and Beximco ranked among the worst losers.

The bearish trend extended to the Chittagong Stock Exchange, where the CASPI index fell 167 points to 15,082. Turnover, however, jumped 145% to Tk74.42 crore, indicating heavy selling activity.

The capital bourse kicked off the week on a negative note today (21 June) as widespread profit-taking snapped a two-session winning streak, dragging the benchmark index down.

The DSEX, the prime index of the Dhaka Stock Exchange (DSE), shed 21 points to settle at 5,639. Meanwhile, the blue-chip DS30 index managed to buck the trend slightly, gaining 2 points to reach 2,145.

Market breadth heavily favoured the bears, with only 71 issues advancing, 298 declining, and 27 remaining unchanged.

A cautious investor stance also dampened trading participation, causing daily turnover to plunge 16% to Tk1,002 crore compared to the previous session.

According to the daily market review by EBL Securities, the benchmark index retreated in the first session of the week as profit-taking in recently appreciated stocks heavily outweighed selective buying in perceived fundamentally attractive scrips.

The brokerage firm added that the market came under sustained selling pressure from the opening bell, as widespread profit-taking gained momentum throughout the session, weighing on the majority of listed scrips and pushing the market into negative territory.

Mirroring this view, Sheltech Brokerage Limited noted that market sentiment was largely influenced by investors' profit-taking following the recent advance.

The brokerage highlighted that despite a strong start to the session, supported by buying pressure in selective large-cap stocks, the market failed to sustain its early gains as profit-taking pressure intensified from mid-session onward.

On the sectoral front, pharmaceuticals accounted for the highest share of turnover at 13.5%, followed closely by engineering at 12.5% and textiles at 11.8%.

Most of the sectors displayed negative returns, out of which services fell by 3.9%, miscellaneous dropped by 3.4%, and general insurance corrected by 2.1%, exerting the most downward pressure.

On the flip side, telecommunication, pharmaceuticals, and food sectors bucked the trend to exhibit the highest returns on the bourse today, gaining 1.5%, 0.5%, and 0.3% respectively.

The primary index draggers pulling down the market included Olympic Industries, United Commercial Bank, Asiatic Laboratories, National Bank, and Summit Alliance Port.

Despite the correction, Beximco Pharmaceuticals, Summit Alliance Port, IPDC Finance, and Robi emerged as the top traded stocks of the day.

In terms of individual performance, Prime Finance First Mutual Fund led the gainers with a 7.61% jump, followed by Simtex Industries at 5.70% and KDS Accessories at 4.64%.

On the losing side, Meghna Pet and Beximco Limited hit the bottom by plummeting 9.87% each, followed by Regent Textile which lost 9.67%.

The port city bourse, the Chittagong Stock Exchange (CSE), also mirrored the capital city's bearish tone.
The CSCX index ended 61 points lower at 9,327, while the CASPI broad index plummeted 104 points to close at 15,249. Trading activity on the CSE witnessed a massive contraction as its daily turnover dropped by 64% to stand at a meager Tk30 crore.

The government has formed a National Drug Advisory Council to advise the authorities on implementing the National Drug Policy and developing the country’s pharmaceutical sector to ensure the availability of essential medicines.

The 22-member council will be headed by Health and Family Welfare Minister Sardar Md Sakhawat Husain, according to a circular issued by the Cabinet Division on Sunday.

The state minister for health and family welfare, the prime minister’s special assistant on health affairs, the executive chairman of the Bangladesh Investment Development Authority (BIDA), the chairman of the National Board of Revenue (NBR), secretaries from various ministries and divisions, academics, and industry representatives have been included in the council.

One of the council’s key responsibilities will be to publish a new essential drug list and update it every two years, the circular said. The council will meet at least twice a year and will be allowed to co-opt additional members.

The development comes within six months of the interim government’s update of the National Essential Drug List, which increased the number of medicines to 295 in January this year following recommendations from a taskforce.

At the time, the government also announced that the prices of all these essential medicines would be fixed to ensure greater affordability for the public. However, neither the prices were fixed nor was the decision implemented.

Asked yesterday, Health Secretary Quamruzzaman Chowdhury, who will serve as the member secretary of the advisory council, said they would review the previous list and prepare a fresh essential drug list, taking all relevant factors into consideration.

When the interim government formed a taskforce to prepare the essential drug list, it did not include any industry representatives, citing the need to avoid conflicts of interest.

However, the Bangladesh Association of Pharmaceutical Industries (BAPI) criticised the move, particularly the exclusion of industry representatives from the taskforce.

The presidents of the Federation of Bangladesh Chambers of Commerce and Industry, BAPI, and the Bangladesh Pharmaceutical Society have been made members of the new advisory council.

The health secretary said several cases and countercases had been filed over the previous government’s move. “All necessary procedures and practices were followed to form the council,” he added.

Pragati Life Insurance Limited has recommended a 15% cash dividend and a 10% stock dividend for the financial year ended 31 December, 2025, following a board review of its audited financial statements.

The announcement was made through a price-sensitive information disclosure published by the Dhaka Stock Exchange yesterday (21 June). Shareholders on record as of 14 July, 2026 will be eligible for the dividend, pending approval at Annual General Meeting (AGM).

The company said the stock dividend has been recommended to support building construction and modernisation, increase paid-up capital, and facilitate further investments.

DSE also announced that there would be no price limit on the trading of the company's shares today following the corporate declaration.

Investor sentiment remained positive after the announcement, with the company's share price rising 2.64% to Tk186.90 on the Dhaka Stock Exchange yesterday.

Alongside the dividend declaration, Pragati Life also released its unaudited financial results for the first quarter (January-March) of 2026.

According to the life revenue account, the company's surplus, defined as the excess of total income over total expenses including claims, stood at Tk38.24 crore during the quarter, compared with Tk15.73 crore in the corresponding period of the previous year. This represents a year-on-year increase of approximately 143%.

The company's Life Insurance Fund also recorded significant growth. As of 31 March, 2026, the fund stood at Tk818.56 crore, compared with Tk674.87 crore a year earlier, reflecting an increase of about Tk143.69 crore.

In the first quarter (January- March) 2026, the company paid Tk100 crore out of Tk105 crore claims.

Established in 1996, Pragati Life Insurance is one of the oldest private-sector life insurers in Bangladesh. The company offers a range of life insurance products, including individual life policies, group insurance schemes, pension plans, and savings-based insurance products. It serves customers across the country through an extensive branch network.

Market observers say the dividend declaration sends a positive signal to shareholders. The strong growth in both quarterly surplus and the Life Insurance Fund indicates an improvement in the company's financial position.

Amid increasing competition in the insurance sector, the robust growth in income and fund size is expected to strengthen investor confidence in the company's future prospects.

The proposed dividend, however, remains subject to approval by shareholders at the AGM and the necessary regulatory clearances.