Oil prices rose more than 3 percent on Monday after Iran and the US traded strikes and Israel ordered troops to move further into Lebanon in its battle with Tehran-backed Hezbollah.

Brent futures rose $2.93 or ​3.2 percent to $94.05 a barrel at 0906 GMT. US crude futures rose $3.36 or 3.9 percent to $90.72 a ​barrel. Over May, Brent and WTI lost around 19 percent and 17 percent, respectively.

The fighting in ⁠the Middle East, after Washington hosted Israel-Lebanon peace talks on Friday, dimmed hopes that the US ​and Iran could soon announce an extension to their ceasefire.

The US said on Sunday it conducted "self-defence strikes" ​while Iran's Islamic Revolutionary Guard Corps said on Monday its aerospace force targeted an air base used for US attacks.

US President Donald Trump said on Friday he would soon decide on a proposed deal to extend a ceasefire announced in early ​April.

Israel would be key to any such deal, and Iran has said repeatedly that Hezbollah must be ​included. The US has proposed a "gradual de-escalation" plan, a US official said on Sunday.

Concerns are rising about mines in the ‌Strait ⁠of Hormuz, a key oil and gas shipping lane, IG analyst Tony Sycamore said in a note. "Even if an agreement is reached, it won't deliver a flood of supply," Sycamore said.

An Axios reporter said on X on Friday that Iran had dropped more mines in the strait earlier in the week.

Iran's ​Foreign Ministry spokesperson Esmaeil ​Baghaei said on Monday ⁠the delay in the diplomatic process to end the war can be explained by a lack of trust, Washington's contradictory positions and Israel's attacks on Lebanon.

Concerns ​over supply outweighed weekend economic data from China which showed stalling factory activity. ​This added to ⁠concerns the world's second-largest economy is losing momentum.

Saudi Arabia is likely to cut its official selling prices (OSPs) for crude oil to Asia in July for a second month, a Reuters survey showed.

Goldman Sachs said on Sunday weak ⁠oil demand ​in China and Europe poses a major downside risk to ​its fourth-quarter Brent crude forecast of $90 a barrel and WTI forecast of $83, although Middle East supply disruptions could still push prices ​higher.

Bangladesh is entering a critical phase in its trade outlook as it prepares for graduation from least developed country (LDC) status, according to a recent assessment by the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).The transition is expected to reshape the country’s access to key global markets and expose exporters to higher tariffs unless new trade arrangements are secured.

Bangladesh has formally requested a deferral of its LDC graduation from November 2026 to 2029, reflecting concerns over the loss of preferential access under key schemes, particularly the European Union’s Everything but Arms (EBA) initiative.The EBA framework has long underpinned Bangladesh’s export growth, especially in the ready-made garments sector, by providing duty-free access to European markets.

Under the current regional transition timeline, Bangladesh is still expected to graduate alongside other Asian LDCs in 2026, with most major trading partners likely to offer a three-year transition buffer. This would extend EBA-level benefits until around 2029, softening the immediate impact but not fully replacing long-term preferential access.A central concern highlighted by ESCAP is the erosion of trade preferences, which could affect billions of dollars in export earnings across Asia-Pacific LDCs. For Bangladesh, the impact is expected to be most pronounced in the garments sector, where preferential margins remain a key factor in global competitiveness.The EU is also preparing a revised Generalised Scheme of Preferences (GSP) for 2027-2034, including a strengthened GSP+ framework. Bangladesh may be eligible to apply for GSP+ after graduation, but access will depend on strict compliance with international standards covering labour rights, environmental protection and governance, alongside legal commitments under conventions of the International Labour Organization.

Bangladesh has already ratified several key ILO conventions, though implementation remains under close scrutiny, particularly in areas such as workplace safety, inspections and freedom of association.

Other major markets are also undergoing policy shifts. The United Kingdom’s Developing Countries Trading Scheme (DCTS) and Japan’s Generalised System of Preferences remain important for Bangladesh’s exports, but both are increasingly linking market access to sustainability and governance conditions.

China has introduced a zero-tariff regime for all LDCs, supporting exports from the poorest economies. However, Bangladesh is expected to lose this benefit after graduation, as China does not offer a comparable preferential framework for higher-income developing countries.

At the same time, the United States’ Generalized System of Preferences remains expired, meaning Bangladesh continues to face standard Most Favoured Nation tariffs in the US market, further limiting preferential access options.

ESCAP notes that Bangladesh’s long-term trade strategy will need to shift away from reliance on unilateral preferences towards deeper regional integration and reciprocal trade agreements. Frameworks such as the Asia-Pacific Trade Agreement and broader regional integration efforts are seen as key pathways to sustaining market access after graduation.

Sri Lanka has expressed that the time is opportune to elevate its relations with Bangladesh to a higher level, underscoring the importance of arranging a state-level visit between the two friendly nations in the near future.

The observation was made by Sri Lanka's acting Foreign Minister Arun Hemachandra during a farewell call by Bangladesh High Commissioner to Sri Lanka Andalib Elias in Colombo yesterday, according to a press release issued on the occasion.

During the meeting, Hemachandra highly appreciated the Bangladeshi envoy's contributions to strengthening bilateral relations throughout his tenure in Colombo.

Expressing satisfaction over the progress achieved in bilateral cooperation, the acting Foreign Minister said Dhaka and Colombo should seize the opportunity to further advance their partnership through enhanced political engagement and high-level exchanges.

He particularly stressed the need for arranging a state-level visit between the two countries at an early date to open new avenues of cooperation.

High Commissioner Elias reaffirmed Bangladesh's commitment to deepening bilateral cooperation and expanding engagement with Sri Lanka in areas of mutual interest.

The envoy also expressed gratitude to the acting Foreign Minister for his personal support, guidance and goodwill throughout his diplomatic assignment in Sri Lanka.

The meeting reflected the longstanding friendship between Bangladesh and Sri Lanka and their shared determination to further strengthen and elevate bilateral relations in the years ahead.

Every budget season in Bangladesh unfolds with a familiar ritual. The finance ministry unveils an ambitious revenue collection target, wrapped in promises of growth, macroeconomic stability, and development, while economists raise quiet eyebrows. The National Board of Revenue then spends the rest of the fiscal year scrambling to close an ever-widening gap.

The current fiscal year 2025-26 is proving to be no different. Revenue growth has remained sluggish amid a slowing economy, weakening private sector expansion, persistent inflation, and mounting pressure on businesses already struggling with rising costs and deep financial uncertainty.

Compounding these challenges are the NBR’s own institutional inefficiencies, which have further undermined collection efforts, leaving the revenue authority staring at a shortfall approaching Tk 1 lakh crore in the first nine months of FY26.

Despite these strains, the state’s appetite for revenue continues to grow. Rising expenditure demands are driven by the new government’s pledges on social protection programmes, including several targeted cards and higher allocations for health and education. This has only widened the distance between what Bangladesh needs and what it can raise.

Against this backdrop, the government is preparing another ambitious target for FY27 of over Tk 6 lakh crore, a 20 percent increase over this fiscal year’s revised budget, aimed at lifting the tax-to-GDP ratio that fell to just 6.8 percent last year, one of the lowest in the world for an economy of Bangladesh’s size and trajectory.

This reality is difficult to avoid: Bangladesh’s fiscal framework is increasingly caught between rising expenditure demands and a revenue system struggling to keep pace with economic reality. Each year, the targets grow taller. But the gap between ambition and achievement widens.

Over the last decade, the tax administration has been missing its targets.

For instance, the last fiscal year (FY25), the tax authority’s overall receipts were Tk 370,874 crore, falling short of its revised target by Tk 92,626 crore. The government initially aimed to collect taxes of Tk 480,000 crore in FY25 but ultimately slashed the target by Tk 18,500 crore.

Although such shortfalls have become almost routine, they are increasingly exposing deeper structural weaknesses in the country’s tax administration and broader economic governance. The problem lies not only in poor collection performance, but also in the way revenue targets are set-- often unrealistically and without adequate alignment with prevailing economic conditions.

This ‘unplanned’ targeting system has turned into a persistent institutional failure, placing enormous pressure on NBR officials to meet ambitious goals through ad hoc and often arbitrary tax collection measures. In many cases, that pressure ultimately trickles down to ordinary citizens and compliant businesses, further worsening public frustration and weakening confidence in the tax system itself.

On top of that, the tax system badly needs rigorous reform and automation, with the separation of tax policy from tax administration. Unfortunately, the process that began with the interim government has now stalled after being lapsed by the Parliament.

Following widespread criticism, the BNP-led government later formed a nine-member committee to review the Revenue Policy and Revenue Management Ordinance, 2025, along with its subsequent amendment. The committee, headed by Prime Minister’s Adviser on Public Administration Ismail Zabiullah, has been tasked with scrutinising the contentious reform measures and assessing their administrative and policy implications.

Finance Minister Amir Khosru Mahmud Chowdhury has recently acknowledged as much and gone further, offering a rare public critique of the mindset that has long governed tax policy in Bangladesh.

“Tax policymakers need to understand the pain of business, the pain of industry, and the pain of ordinary people,” he said at a recent discussion in Dhaka.

“A certain mindset has developed in taxation: ‘I need tax, so take this much percent from here, that much percent from there.’ When tax falls short, the thinking becomes-- take this much from here, that much from there. It is simply a matter of making the numbers add up.”

“By trying to make the numbers add up through taxation, you cannot bring about any real change,” he said.

That is precisely why policymakers are now speaking of the need for a qualitative transformation, one that moves beyond bureaucratic entanglements, arbitrary target-setting and reactive tax measures.

If pursued properly, the ongoing reform efforts could provide Bangladesh with an opportunity to rebuild a more rational, efficient and credible tax system.

Unless the country can break free from this pattern of “big budgets and bigger revenue deficits”, the ritual will continue unchanged. Targets will rise, collections will fall short, deficits will deepen, and next year, someone will once again sit down, sharpen a pencil, and write an even bolder number than before.

Stalled mass rapid transit (MRT) projects receive a substantial sum of Tk 126.49 billion in ADP allocations for the upcoming fiscal year as the government vows to construct three Dhaka metro-rail lines after prolonged dilemmas, officials say.The long-stalled MRT-1 and MRT-5 (Northern) lines have got significant allocations in the FY27 Annual Development Programme (ADP).The ongoing MRT-6 project has also been given a hefty allocation, Planning Commission officials say.

The National Economic Council (NEC) has approved a Tk 3.0-trillion ADP for FY27, where nearly 1,150 development projects, including the MRTs, have got large allocations.Economy Forecast Reports.In the new ADP, the MRT-1 line from Dhaka airport to Kamalapur has grabbed Tk 73.50 billion, 817-percent higher than that in the FY26 Revised ADP (RADP).

MRT-5 (Northern route) from Hemayetpur to Vatara secures Tk 34 billion, which is 431-percent higher.

Besides, MRT-6 from Uttara to Kamalapur, which is near completion, gets Tk 18.99 billion, in an 86-percent increase.

The Executive Committee of the National Economic Council (ECNEC) approved both the MRT-1 and MRT-5 (northern) projects in October 2019 with a combined estimated cost of Tk 937.9998 billion.

The estimated project cost for MRT-1 was Tk 525.61 billion and that for MRT-5 was Tk 412.39 billion.

Japan International Cooperation Agency (JICA) is financing all three MRTs.A senior Roads and Highways Division official told The Financial Express they had sought higher funds for the three projects."We are trying to restart the construction of MRT-1 and MRT-5 stalled for long. We recently held a meeting with all the parties, including the fund provider, for expediting work," he added.

Another official of the division says since the bidding prices of some of the packages of MRT-1 and MRT-5 are much higher than official estimations, they are working to renegotiate with the bidders to reduce prices.Finance Daily Reports

"We are hopeful of settling the issues within a short period of time and restarting construction," he adds.

A senior Planning Commission official says they have allocated higher funds for the stalled MRT projects in response to the demand of the Roads and Highways Division.

"Since they've vowed to restart construction, we have allocated higher funds," he adds.

Information and Broadcasting Minister Zahir Uddin Swapon says that due to Bangladesh’s import dependence on fuel oil, prices been increased to keep pace with the ongoing international crisis.

“Populist decision-making is not the only job of the government, the job of the government is to maintain good governance in the long term,” he said in response to a question while speaking to the media at the Secretariat on the first working day after the Eid holidays on Monday.In response to reporters’ questions regarding the increase in fuel oil prices, the information minister said, “You probably know that since the day the energy crisis began, all the countries that are dependent on import-based energy have been increasing prices in line with the international crisis. Everyone knows that even though everyone else has increased prices, our government has maintained fuel prices at their old level for a long time, despite being an import-dependent country.

“We have to import fuel. Our power minister and state minister have regularly informed the nation about this and provided the statistics. But if it is true that we have to continue importing, then we will have to continue relying on import capacity.”The Ministry of Finance and the Ministry of Power, Energy, and Mineral Resources have already formed an advisory committee under the leadership of Wahiduddin Mahmud to deal with the war situation, the minister said.Financial Planning Services.He said, “The government is acting on the advice of the advisory committee and the advice of Wahiduddin Mahmud, a prominent economist in the country. According to his counsel, prices have not been increased for a long time.“Again, the crisis is not over yet, and we will have to continue importing. The government has to keep running while keeping all these things in mind.”

Gold prices fell on Monday ‌as renewed US-Iran tensions pushed the dollar and oil prices higher, fuelling fears of inflation and reinforcing the higher-for-longer interest rate outlook.

Spot gold was down 0.8 percent at $4,498.89 per ounce at 0909 GMT after ​hitting a two-week high on Friday. The yellow metal dropped 0.9 percent in May, ​its fourth consecutive monthly fall.

US gold futures for August delivery fell 1.4 percent to $4,528.90.

The dollar edged higher, making greenback-priced bullion more expensive for holders of other currencies.

The ​US said it struck Iranian military sites over the weekend and Iran’s Revolutionary Guards on Monday ​said they had targeted a US base in response, the latest exchange of attacks amid negotiations to end the three-month-old war.

“The optimism surrounding negotiations between the US and Iran aimed at ending the standoff ​in the Strait of Hormuz faded over the weekend,” ActivTrades analyst Ricardo Evangelista said. “As a ​result, energy prices rebounded, reviving inflation concerns and reinforcing hawkish Federal Reserve expectations.”

Brent crude oil prices gained ‌more than 3 percent after the latest strikes. Higher oil prices can accelerate inflation and keep interest rates higher for longer. While gold is traditionally seen as a hedge against inflation, it loses its appeal in a high-interest-rate environment as a non-yielding asset.

Traders are now pricing ​in a Fed rate ​hike this year, with a 40 percent chance of a quarter-point increase in December, according to CME Group’s FedWatch tool.

A host of Fed board members are set ​to speak this week, while major data releases are scheduled to ​include the ⁠ISM survey of manufacturing and the May payrolls report on Friday.

“Traders will be closely watching this week’s key data releases as these have the potential to reshape expectations regarding the future ⁠path ​of Fed monetary policy, influencing demand for the US ​dollar and, consequently, the performance of gold prices,” Evangelista said.

Spot silver rose 0.7 percent to $75.79 per ounce, platinum gained 0.4 percent ​to $1,925.26 and palladium fell 0.8 percent to $1,343.55.

Chinese companies in 15 key industrial sectors received vastly more state support than their international competitors between 2005 and 2024, according to an OECD report released on Monday.

The 15 sectors received $108 billion in 2024 alone, according to data compiled by the Organisation for Economic Cooperation and Development in its Manufacturing Groups and Industrial Corporations (MAGIC) database.

Between 2005 and 2024, it added, “Chinese firms received on average three to eight times more government support than firms based in the OECD, a conservative estimate.”

“These subsidies were also considerably higher than the support received by firms based in non-OECD economies such as Brazil, India and Indonesia.”

The Paris-based organisation of 38 member countries said its “conservative” estimate was based on disclosures by the biggest companies in the 15 sectors, which underpin entire segments of the global economy.

It considers direct subsidies, tax breaks and favourable loans from banks and public financial institutions -- at times below their base lending rates -- to be public support.

“For Chinese firms, almost 60 percent of their global market share gains can be explained by the subsidies they received,” the OECD said.

Chinese firms have carved out huge market shares over 20 years in sectors such as solar panels, shipbuilding and steel, not because they are better than their US or European competitors but because of their unparallelled state support, it added.

- Effect of subsidies -

With subsidies, they have more financial leeway to invest in new production sites, more time to reach profitability and greater support against economic headwinds, according to the report.

This has led to overcapacity in some sectors, pushing down global prices to the detriment of other international players.

“Just like doping in sports, the risk is that subsidies help less productive players win unfairly at the expense of better, more innovative and more efficient ones,” the OECD’s Secretary-General Mathias Cormann told a press conference.

“Subsidies increased market share but that did not lead to significant gains in productivity or profitability,” Cormann added.

“Firms won market share not by being more efficient or more innovative but by being more heavily subsidised.”

The OECD looked at aerospace and defence; aluminium; car manufacturing; cement; chemicals; fertilisers; glass and ceramics; heavy machinery; semiconductors; shipbuilding; photovoltaic panels; steel; telecommunications equipment; rolling stock; and wind turbines.

Worldwide state support in these sectors reached its highest level since the 2008 financial crisis in 2023-24, amounting on average to 1.3 percent of companies’ revenues in 2024.

The OECD noted that the peak observed in 2009 coincided with a severe global recession, which was not the case in 2023-24.

That “indicates the recent increase in industrial subsidies to be more structural”, it added.

The global smartphone market is heading for its steepest annual contraction on record, with shipments projected to slump by 13.9% this year to 1.08 billion units, Counterpoint Research said on Monday, citing a worsening shortage of memory chips.

The forecast is a downgrade from the 12.4% decline projected in February, with the squeeze in global chip supply exacerbated by the Iran war.

Impact most acute at budget end of market

The impact is being felt most acutely in lower-end smartphones as chipmakers shift production capacity to AI-related chips, making entry-level devices less economical to produce.

Global smartphone wholesale prices rose 14% in the first quarter while shipments fell 3.1% year on year. That trend is expected to continue as inventory built before the supply shock becomes depleted, with some models priced below $150 likely to disappear from the market.

"Smartphone makers in the low and mid-tier are caught between cost increases they cannot absorb and consumers with limited spending power," said Wang Yang, a principal analyst at Counterpoint, an independent research company that publishes quarterly smartphone shipment data.

"The question is no longer how to grow shipments or market share, but whether to remain in the market at all."

The memory chip shortage is the most severe supply-side disruption the smartphone industry has faced, Wang said, adding that manufacturers are unable to offset the impact through pricing or product changes.

Premium end of the market more resilient

The premium segment has proven more resilient. Apple posted record revenue for the first three months of the year, helped by customers upgrading to its iPhone 17 series. Apple's 2026 shipments are expected to remain flat before rising 5% next year, Counterpoint projections show.

With more stable chip supply and stronger margins than many rivals, Apple is well placed to gain market share and could face less pressure to raise prices.

Samsung Electronics kept volumes steady in the first quarter and is expected by Counterpoint to register only a 4% decline in shipments over the full year, outperforming the wider market thanks to stable supply and a consistent product line-up.

Transsion, which is heavily exposed to the market for smartphones priced below $150, is forecast to suffer a 32% drop in shipments this year. Rivals Xiaomi and Honor, meanwhile, are projected to post full-year declines of 28% and 20% respectively, Counterpoint said.

Stocks edged higher in the first trading session after the week-long Eid vacation today (1 June), driven by strong investor participation on the buying side, which lifted both indices and turnover.

According to market data, the DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), rose 37 points to close at 5,372. Turnover also increased by 17% to Tk 912.38 crore.

Market momentum was largely supported by banking stocks, with strong buying interest in fundamentally sound issues. The banking sector alone accounted for seven of the top 10 contributors to the index gain.

BRAC Bank emerged as the single largest contributor, adding 5 points to the DSEX, according to data from the LankaBangla Financial Portal.

A majority of listed stocks recorded price gains. Of the traded securities, 179 advanced, 152 declined, while 55 remained unchanged at the DSE.

In its daily market commentary, EBL Securities said the benchmark index opened the post-Eid trading session on a positive note, supported by buoyant investor sentiment and continued interest in selective high-momentum stocks.

"The market was upbeat from the opening bell, building on post-Eid optimism that continued to fuel buying interest and drive broad-based price appreciation across most scrips for a sixth consecutive session," it said.

On the sectoral front, engineering stocks accounted for the highest share of turnover at 17.4%, followed by banking (16.0%) and pharmaceuticals (12.4%).

Most sectors posted positive returns, with IT, life insurance and banking leading the gains. In contrast, jute, tannery and general insurance sectors recorded the highest corrections.

Among individual movers, Sonargaon Textiles topped the gainers' list, rising 10% to Tk49.5 per share, followed by Golden Son, which gained 9.93% to Tk16.6, and Nahee Aluminum, up 9.32% to Tk37.5.

On the other hand, Premier Leasing led the losers, falling 7.40% to Tk2.5 per share, followed by Union Capital, down 6.52% to Tk4.3, and Prime Finance, which declined 6.06% to Tk3.1.

The Chittagong Stock Exchange (CSE) also ended the session in positive territory. The CSCX and CASPI indices advanced by 45.2 points and 61.0 points, respectively.

Remittance inflows in Bangladesh remained above $3 billion for the sixth consecutive month, hitting $3.42 billion in May, as expatriates sent more money home to support family spending for Eid.

Bangladesh Bank data showed that inflows rose by 15.34 per cent in May compared with those of $2.96 billion in May 2025.

The figure was $3.12 billion in April, $3.75 billion in March, $3.02 billion in February, $3.11 billion in January and $3.22 billion in December

In the first 11 months of the 2025-26 financial year, remittance receipts increased by about 19 per cent to $32.75 billion, compared with those of $27.5 billion in the corresponding period of the previous fiscal year, reflecting sustained growth in inflows.

Bankers said that seasonal factors played a key role in the surge, as migrant workers typically send higher amounts to support family spending for Eid.

This year, Eid-ul-Azha, one of the biggest religious festivals of the Muslims, was observed on May 28.

They also pointed to the ongoing Middle East conflict as an additional factor.

Many expatriates reportedly sent larger sums or transferred savings back home due to concerns over potential disruptions in host countries and financial uncertainty linked to the war.

The interbank dollar rate rose to about Tk 122.75 in May from Tk 122.27 in late February, indicating growing pressure on the local currency.

Bangladesh recorded more than $30 billion in remittance inflows for the first time in the 2024-25 financial year, with total receipts reaching $30.32 billion, up from $23.91 billion a year earlier.

Monthly inflows have remained above $2 billion since August 2024.

Officials said that policy support had contributed to the steady rise.

Since January 2022, the government has provided a 2.5 per cent cash incentive on remittances sent through formal banking channels.

Improved exchange rates and stricter monitoring of cross-border transactions have also encouraged expatriates to avoid informal transfer systems.

Higher remittance earnings have helped ease pressure on the balance of payments and support foreign exchange reserves.

According to the Bangladesh Bank, reserves stood at $30.1 billion under IMF methodology on June 1, while gross reserves were around $34.76 billion.

The Bangladesh Securities and Exchange Commission (BSEC) has again rejected Daffodil Computers Limited's plan to issue shares against loans, according to a stock exchange disclosure.

After facing the rejection of its initial plan, the IT sector firm in November last year reapplied to the commission for converting Tk49 crore loans, availed from one of its associate firms of the Daffodil Group, into equity.

With the shareholders' approval through an extra-ordinary general meeting (EGM), after revising its plan, it again applied to the commission, but the commission rejected converting loans into equity citing that the regulator is not in a position to accord its consent.

Daffodil Computers had availed Tk49.03 crore loans from Creative International, a concern of Daffodil Group. To offset the loan, it had planned to issue shares in favour of the lender company.

In its revised plan, the listed company sought stock market regulator nod to issue shares at Tk15 each with a plan of issuing total 3.27 crore shares.

In December 2024, its board had approved and subsequently submitted the plan to the commission to issue shares at Tk10 each against the loans.

Then, the commission rejected its share issuance plan as it had not secured its shareholders' nod. Later in December 2025, the company secured shareholders' nod on share issuance decision.

At that time, too, the securities regulator turned down the plan, citing that the move would unfairly favour the group's controlling interests while diluting the holdings and earnings of ordinary investors.

Now, Daffodil Computers faced a second time rejection for a share issuance plan for repayment of loans.

Daffodil Computers, one of the early technology companies listed on the stock exchange, remains a key entity within the Daffodil Group, which has diverse interests in IT, education, and media.

According to its quarterly financial statements, in the first nine months of the current fiscal year, it had reported declining revenue and profitability slightly.

In the July to March period, its revenue declined to Tk28.79 crore and net profit after tax to Tk1.16 crore, which was Tk30.28 crore and Tk1.56 crore respectively.

Daffodil Computers' shares closed 4.24% higher at Tk142.50 each on the Dhaka Stock Exchange (DSE).

Earlier, the company decided not to pay any dividend to its shareholders for the fiscal year of 2024-25. During the fiscal year, its earnings per share dropped by 24% to Tk0.16, compared to the previous year.

BRAC Bank PLC has signed two refinancing agreements with Bangladesh Bank.

The aim is to improve access to affordable finance for cottage, micro, small, and medium enterprises (CMSMEs). This step shows BRAC Bank's commitment to entrepreneurship and financial inclusion.

The agreements allow BRAC Bank to provide financing to entrepreneurs in different clusters across the country. Through Bangladesh Bank's Financial Sector Fund for MSMEs, the bank can offer low-cost credit support.

Through the Tk3,000 crore Cluster Finance Refinance Scheme, BRAC Bank will provide term loans and working capital. These loans support entrepreneurs in various industrial clusters. Eligible businesses can access financing at concessional rates starting from 7 per cent. This support helps expand businesses, boost productivity, and create jobs.

The second agreement lets BRAC Bank use the Tk1,500 crore Financial Sector Fund for MSMEs. MSMEs in the manufacturing and service sectors can get financing at a 7 per cent interest rate. The facility offers loans of up to Tk1 crore for microenterprises and up to Tk5 crore for small and medium enterprises.

Tareq Refat Ullah Khan and Nawshad Mustafa exchanged agreement documents at a ceremony at the Bangladesh Bank on 18 May 2026. Deputy Governor Nurun Nahar was present.

Husne Ara Shikha, Executive Director of Bangladesh Bank, and Mahbubur Rahman, Head of Cottage, Micro and Small Business and Liability and Cash Management, SME Banking, BRAC Bank, also attended.

BRAC Bank, as the country's leading SME-focused bank, continues to pioneer the expansion of access to finance for grassroots entrepreneurs, leveraging Bangladesh Bank's refinancing schemes. The bank states that these initiatives will foster business growth, job creation, and sustainable economic development across Bangladesh.

The government is going to expand social safety net programmes in the upcoming budget to check growing poverty amid an economic slowdown made complicated by regional wars.

This is one of the priorities of the newly elected government led by the Bangladesh Nationalist Party to set the platform for a welfare economy, said finance division officials.

In its first budget of the current five-year tenure on the back of war in the oil-rich Middle East, about 41 lakh family cards will be distributed at a cost around Tk 12,373 crore in the next financial year of 2026–27.

Farmer Cards would also be provided to 42 lakh beneficiaries with a financial allocation of Tk 1,062 crore in FY27.

Finance and planning minister Amir Khosru Mahmud Chowdhury has already said they are committed to the Family Card project referring it a cornerstone of the government›s commitment to social welfare and inclusive development.

Economists say targeting needy and poor through the card programme was a good idea, but it has implementation challenges like politics on selection and wastes of money.

Family Card holders will receive cash assistance of Tk 2,500 per month, while Farmer Card holders will receive Tk 2,500 once a year.

Both cards have already been launched on an experimental basis in line with the BNP’s electoral pledges.

The government will also increase the number of old-age allowance beneficiaries by one lakh in FY27 with a recipient currently getting Tk 700 a month.

The allowance is one of the government’s 95 social safety net programmes for which around Tk 1.17 lakh crore was allocated in FY26 national budget.

In FY27 national budget, the amount will go up to Tk 1.30 lakh crore, said the finance ministry officials.

Through the new budget, the government will also implement a decision that beneficiaries enjoying the privileges of Family Cards would not qualify for any other benefits under the social safety net programmes.

Even the government employees, pensioners, savings certificate holders, Trading Corporation of Bangladesh cards or vehicles registered with the Bangladesh Road Transport Authority will not be eligible, said the finance ministry officials.

The finance and planning minister said the government was actively identifying and rectifying initial implementation errors to ensure a long-term success of the family cards.

Bangladesh Institute of Development Studies director general AK Enamul Haque has suggested that the government should made randomised controlled trial on piloting cards distribution.

Randomised controlled trial is a type of statistical experiment designed to evaluate the efficacy or safety of an intervention by minimising bias, he said.

Terming the overall card programme as a good step, the BIDS DG says more important was overcoming the implementation challenges like political selection, duplication and wastes of money.

Institute for Inclusive Finance and Development Executive Director Mustafa K Mujeri says the government needed to expand social safety net progrmme to check growing poverty.

A recent World Bank report titled ‘Bangladesh Development Update: Special Focus – A Business Environment that Delivers Jobs’ projected around 1.4 million more people falling into poverty in the country in 2025, the rate reaching 21.4 per cent, which was 20.5 per cent in 2024.

Economists attribute falling growth in gross domestic products below 4 per cent in 2024-25 from 7 per cent 2021-22 on the back of double-digit inflation for the growing poverty.

Post service benefits of the public employees shown in the social safety net programme to show a bigger allocation should be excluded for the benefit of poor and needy people, economists say.

Almost a quarter of the overall allocation under the social safety net prograame is included with pension fund, added the economists.

The recent decline in the non-performing loan (NPL) ratio, from 35.73 percent in September 2025 to 30.60 percent in December, may appear encouraging. However, the improvement largely reflects relaxed loan rescheduling policies rather than any meaningful improvement in asset quality. Allowing defaulted loans to be regularised with only a 2 percent down payment, now further staggered, merely delays recognition of the problem.

Even after this decline, Bangladesh still has one of the world’s highest NPL ratios. The comparison with neighbouring and crisis-hit economies is striking. Pakistan’s stands at 7.4 percent, India’s at 2.3 percent, while Sri Lanka, despite a severe sovereign debt crisis, maintains 12.6 percent. Ukraine, amid prolonged war, recorded 26.1 percent, and Lebanon, after years of economic collapse, 23.8 percent. Bangladesh’s banking distress therefore appears deeply structural.

The capital adequacy situation is even more concerning. Under Basel III guidelines, banks must maintain a Capital to Risk-Weighted Assets Ratio (CRAR) of 12.5 percent. Yet the industry’s position has deteriorated sharply. CRAR fell from 11.6 percent in 2020 to 10.64 percent in June 2023, then to 6.86 percent in September 2024 and 3.08 percent by December 2024. By December 2025, it had entered negative territory at minus 2.9 percent, the first such occurrence in Bangladesh’s history.

This exposed a reality long hidden by weak governance and underreported risk-weighted assets. For years, several banks projected an illusion of stability by understating the quality of their loan portfolios. Once disclosures became more transparent after the 2024 political changeover, the scale of impairment surfaced rapidly.

By September 2025, 23 banks had accumulated a capital shortfall of Tk 2.82 lakh crore. Five banks accounted for nearly 59 percent of the deficit. Some now carry NPL ratios exceeding 90 percent, raising serious questions about their viability under existing ownership and governance structures.

A banking system cannot survive indefinitely on regulatory forbearance. Capital is the final shield against financial instability. Without adequate buffers, banks lose credibility at home and abroad. Cross-border trade finance becomes more difficult as foreign correspondent banks place significant emphasis on capital strength before advising, confirming or funding letters of credit. Weak capitalisation also affects risk ratings, constrains deposit mobilisation and limits lending.

In this context, aggressive recapitalisation has become unavoidable.

One possible route is the issuance of rights shares. However, this may prove ineffective for distressed banks where sponsors are financially weakened or face allegations of insider lending, governance failures or siphoning money abroad. Rights issues are therefore likely to remain undersubscribed, leaving banks trapped in chronic undercapitalisation.

Bangladesh needs a more pragmatic ownership restructuring framework. The regulation restricting any individual, family or group from holding more than 10 percent equity in a financial institution may require temporary relaxation for selected distressed banks. A time-bound policy window of three to five years could allow financially capable sponsors to inject fresh capital beyond the ownership ceiling. During this period, banks could stabilise operations, improve governance, rebuild compliance standards and restore profitability. Once financial health is restored, excess ownership could gradually be diluted through partnerships with strategic investors. The central bank’s recent stipulation allowing only banks with more than Tk 20 billion in equity to declare cash dividends is a step in the right direction.

Several Asian economies have used similar restructuring approaches during periods of banking stress. Their experience shows that temporary flexibility, backed by strong oversight and governance reforms, can prevent systemic collapse and restore market discipline. Bangladesh’s banking sector requires more than liquidity support or loan rescheduling facilities. It needs credible capital, competent ownership and institutional accountability. Without them, financial stability will remain fragile, and the sector’s ability to support economic growth will continue to weaken.

The economic shock from ​the Iran war hit European factories last month, suppressing demand for their goods and pushing up raw ‌material costs at the fastest rate in four years, although their Asian peers saw activity expand due to stockpiling, surveys showed on Monday.

The US-Israeli conflict with Iran, which began in late February, has upended trade, rattled financial markets and raised concerns over global energy supplies, particularly through the ​Strait of Hormuz, a key route for oil and gas shipments.

Monday’s surveys came after the heads of the International ​Energy Agency, International Monetary Fund, World Bank and World Trade Organization warned the war was straining global energy supplies.

S&P Global’s Eurozone Manufacturing PMI fell to 51.6 in May from April’s near four-year high of 52.2, but ahead of ​a preliminary estimate of 51.4.

A reading above 50.0 indicates growth.

“Although euro area manufacturers reported an expansion for a fourth successive month ​in May, the sector is showing signs of struggling under the weight of rising prices and supply disruptions emanating from the war in the Middle East,” said Chris Williamson, chief business economist at S&P Global Market Intelligence.

In Germany, Europe’s largest economy, the manufacturing sector stalled while French factories saw a contraction for the first time since November.

The European Central Bank will hike its deposit rate this month and at least once more ​this year to try to stop higher energy prices feeding into core inflation, according to a majority of economists polled by Reuters in ‌May.

Official data due on Tuesday is expected to show inflation rose further above the ECB’s 2 percent target last month. British factories raised their prices at the fastest rate since June 2022 last month in response to a big increase in costs.

ASIAN BUFFERS

Still, factory activity expanded in most Asian economies.

China’s private sector gauge grew for a sixth straight month and South Korea’s hit the fastest pace in ​five years, highlighting a region-wide push ​to build buffers against potential conflict-led disruptions.

And the S&P 500 and Nasdaq each ticking up about two-tenths of a percent.

The RatingDog China General Manufacturing PMI, compiled by S&P Global, fell to 51.8 in May from 52.2 in April, but was slightly better than analysts’ forecast of 51.6.

That outcome contrasted ​with an official survey showing factory activity in the world’s second-largest economy stalled last month as ​new orders contracted and input costs kept rising.

Japan’s factory activity also expanded with the PMI at 54.5 in May, slowing from April’s more than four-year high of 55.1, though firms there reported the sharpest rise in input costs since September 2022 due to higher raw material prices.

South Korea’s PMI ​rose to its highest since March 2021 at 54.8 in May, up ​from 53.6, again underlining firms’ drive to lock in supplies.

In Vietnam, the factory PMI gauge rose to 52.8 from 50.5, while Taiwan’s rose to 56.1 from 55.3, ​surveys showed. The index for the Philippines jumped to 50.8 from 48.3.

The Russian government has banned aviation fuel exports until ​November 30, it said on ​Monday, as Ukrainian strikes on Russia’s refineries and other energy infrastructure continue.

Russia ​exports jet fuel mainly by rail to ​Central Asia, including Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan.“The aim of this decision is to ​ensure stability in the domestic fuel ​market,” the government’s statement said.Russia has already restricted ‌gasoline exports but has yet to action on diesel, though the Interfax news agency reported last week that measures were ​being considered.

Diesel ​production in Russia fell by about 10 percent in May, adding ​to a 10 percent monthly drop ​in April as Ukrainian drone attacks on refineries forced them to reduce or halt output, ​Reuters data showed on ​Friday, while exports of the fuel rose.

India’s foreign exchange reserves fell to a more than one-year low of $681.4 ​billion in the week ended May 22, from $688.89 billion ‌a week earlier, the Reserve Bank of India (RBI) data showed on Friday.

The $7.5 billion decline was largely due to a $4.5 ​billion fall in the value of the ​central bank’s gold holdings, week-on-week.

The value of the RBI’s foreign currency assets also shrunk by ​nearly $3 billion to $543 billion.

Changes in foreign currency assets, expressed ​in dollar terms, include the effect of appreciation or depreciation of other currencies in the reserves.

The RBI has been selling ​dollars to defend the beleaguered rupee, which has ​declined 4 percent since the US-Iran war began, as surging energy ‌prices sparked capital outflows and clouded India’s macroeconomic outlook.

In the week to which the data pertains, the rupee slid to a record low of 96.96 per dollar ​before being shored ​up by firm RBI intervention over multiple trading sessions, including likely on Friday.

It ended the ​session at 95 per dollar, up ​0.7 percent week-on-week. Foreign exchange reserves include India’s Reserve Tranche position in the International Monetary Fund.

The banking sector on the Dhaka bourse yesterday experienced a mixed response from investors following the central bank's latest stringent directives on dividend distribution.

The Bangladesh Bank has directed that commercial banks must maintain a minimum paid-up capital of Tk2,000 crore to declare any cash dividends. The policy, aimed at strengthening the sector's capital base, is expected to significantly restrict cash payouts for most listed lenders.

Under the new framework, which is set to take effect from 31 December 2026, even banks meeting the capital threshold and other regulatory requirements will be allowed to pay a maximum of 50% of declared dividends in cash.Market data shows an immediate impact: out of 36 listed banks, 12 declined, 14 remained unchanged, and five advanced as investors assessed the implications of the new directive

Currently, the room for cash dividend distribution appears extremely limited. Only BRAC Bank meets the Tk2,000 crore paid-up capital requirement while also being in a position to offer cash returns. Although National Bank has adequate capital, its elevated non-performing loan burden continues to constrain dividend eligibility under the new rules.

A senior analyst of a brokerage firm noted that banks below the Tk2,000 crore threshold will need to raise equity—either through rights issues or repeat public offerings—if they aim to comply with the requirement by 2026.

The market reaction was reflected in price movements across key players. NCC Bank led the decliners with a 2.67% fall, followed by Dutch-Bangla Bank down 2.01% and Dhaka Bank slipping 1.77%.

Other notable losers included Eastern Bank, NRB Commercial Bank, and Southeast Bank, all declining more than 1%.

On the gainers' side, ICB Islamic Bank surged 3.85%, while One Bank and BRAC Bank rose 2.67% and 1.05% respectively.

Trading in five other listed banks remained suspended due to ongoing merger proceedings involving Sammilito Islami Bank.Commenting on the policy shift, Mashrur Arefin, managing director and CEO of City Bank, said the regulation may help prevent weaker banks from eroding capital through excessive cash payouts, but warned that a blanket approach could be counterproductive.

He argued that treating strong and weak banks alike could weaken investor confidence in well-managed institutions.Instead, Mashrur Arefin suggested using the Capital Adequacy Ratio (CAR) as a more effective benchmark, noting that banks maintaining CAR levels of 17–18%, well above the 12.5% regulatory minimum, should have greater flexibility in rewarding shareholders.Market analysts echoed similar concerns, suggesting that a more sophisticated approach would involve linking dividend approvals to a bank's broader financial health indicators rather than just a fixed capital amount.

While they acknowledged the move as a step toward long-term financial stability, they cautioned that restricting cash dividends from otherwise strong banks could reduce the sector's appeal to institutional investors.

The International Monetary Fund (IMF) has said that the Bangladesh government has requested a new IMF-supported programme as discussions continue over the country’s reform agenda and policy priorities.

In a statement, IMF Mission Chief for Bangladesh Ivo Krznar said the IMF staff are currently engaged in talks with the Bangladeshi authorities regarding the proposed programme.

“The Bangladeshi authorities have requested a new IMF-supported programme. IMF staff are in discussions with the authorities on their reform agenda and policy priorities,” he said.

Krznar said the IMF remains committed to supporting Bangladesh in maintaining macroeconomic and financial stability amid ongoing economic challenges.

“The IMF remains a committed partner to Bangladesh in its efforts to secure lasting macroeconomic and financial stability, strengthen resilience, and support strong, inclusive growth,” he added.

The development comes as Bangladesh continues efforts to stabilise its economy through fiscal, monetary and structural reforms while addressing pressure on foreign exchange reserves, inflation and the financial sector.

Bangladesh has been implementing various reform measures under its existing IMF loan programme approved in 2023.