Leaders of the Chittagong Chamber of Commerce and Industry (CCCI) have called for greater inclusion of Bangladeshi products on global e-commerce platforms, including Alibaba.com, to help diversify the country's export basket beyond the ready-made garments (RMG) sector.

The call came during a courtesy meeting between the chamber leaders and a delegation from Alibaba.com at the World Trade Centre in Chattogram today (20 June), according to a press release.

CCCI President Mohammad Amirul Haque urged Alibaba to onboard a broader range of Bangladeshi products to its global marketplace.

He said Bangladesh is entering a new phase of economic transformation, supported by policy measures proposed in the national budget for FY2026-27, including bonded warehouse facilities and free trade zones aimed at enhancing export competitiveness.

Referring to the recently approved China Specialised Economic Zone in Anwara, Chattogram, Amirul said such initiatives could emerge as important hubs for export-oriented manufacturing and services.

"Given Alibaba's global reach, there is a strong opportunity to connect Bangladeshi producers directly with international buyers," he said, adding that stronger business-to-business ties between Bangladesh and China are crucial for expanding bilateral trade.

He also assured Alibaba of the chamber's full cooperation in expanding e-commerce, training and SME development activities in Bangladesh.

Alibaba's General Manager for Pakistan and Bangladesh, Gaoya Sammer, said the company currently serves more than 50 million active buyers globally and connects over 200 million suppliers offering more than two billion products.

He said Alibaba is working to strengthen its presence in Bangladesh, particularly by promoting export diversification beyond the garment sector.

"There is significant potential in agro-products and seafood from Chattogram, which already enjoy strong demand in international markets," he said.

Sammer added that Alibaba is also focusing on integrating SMEs and entrepreneurs into its platform through training and capacity-building programmes.

He noted that a dedicated Alibaba centre has already been established in Chattogram to provide exporters with training and information on trade diversification.

Former CCCI president Amir Humayun Mahmud Chowdhury said Bangladesh's e-commerce sector remains at a relatively early stage and requires structured training and institutional support to grow.

He said platforms such as Alibaba could play an important role in expanding export opportunities and equipping young entrepreneurs with the skills needed to participate in digital trade.

Other chamber leaders and representatives from Alibaba also attended the meeting.

The mutual fund sector led gains on the Dhaka Stock Exchange (DSE) today (18 June), posting a 4.3% return as investor sentiment surged following a key court ruling that cleared the way for the restructuring of closed-end funds.

The rally was triggered after the Chamber Court of the Appellate Division stayed a High Court order that had halted the conversion or liquidation of closed-end mutual funds. The order, issued by Justice Farah Mahbub following a petition by the Bangladesh Securities and Exchange Commission (BSEC), removed a major legal obstacle to implementing the regulator's latest directive.

Under regulations introduced in May 2026, closed-end mutual funds trading at discounts of 25% or more to their Net Asset Value (NAV) must either convert into open-end funds or be liquidated.

Market participants said the move could revive the long-underperforming sector by providing an exit route for investors whose holdings had traded at steep discounts for years.

The impact was immediate. Of the 36 listed closed-end mutual funds, only two posted losses during the trading session.

First Janata Bank Mutual Fund and Trust Bank First Mutual Fund hit the 10% upper circuit limit, while LR Global Bangladesh Mutual Fund One gained 9.38% and Green Delta Mutual Fund advanced 8.82%.

The broader market also extended its upward trend. The benchmark DSEX rose 39 points to 5,661, while the blue-chip DS30 index gained 30 points to close at 2,143. Turnover stood at Tk 1,197 crore, reflecting strong market participation.

Beyond mutual funds, the cement and telecommunications sectors also performed strongly, registering gains of 2.5% and 1.6%, respectively.

The Bangladesh Reconditioned Vehicles Importers and Dealers Association (Barvida) has urged the government to withdraw the proposed increase in taxes on mid-range fossil fuel-powered reconditioned vehicles, warning that the move would significantly raise car prices for middle-income buyers while hurting investment and government revenue.

At a press conference held at the Samson H Chowdhury Centre of Dhaka Club today (20 June), Barvida President Abdul Haque also called for equal customs benefits for brand-new and reconditioned plug-in hybrid vehicles and similar policy support for hybrid cars.

According to Barvida, the proposed FY2026-27 budget replaces the existing 1-1500cc engine category with two new slabs – 1-1200cc and 1201-1600cc – raising the overall tax incidence on many popular fuel-efficient reconditioned vehicles from 132.36% to 159.80%.

The association estimates the changes would increase the price of a reconditioned Toyota Premio by around Tk3 lakh and a Toyota Axio by about Tk2.5 lakh, making car ownership more difficult for middle-income consumers. It warned that weaker demand could also discourage investment in the sector and ultimately reduce government revenue.

Barvida also criticised the proposed duty structure for plug-in hybrid vehicles, saying while the budget offers customs concessions for brand-new imports, reconditioned models will continue to face a 5% regulatory duty. It urged the government to apply the same supplementary and regulatory duty rates to both new and reconditioned plug-in hybrid vehicles, including microbuses.

The association further proposed reducing the supplementary duty on 2001-2025cc plug-in hybrid vehicles to 30% and extending similar tax incentives to conventional hybrid vehicles.

Barvida argued that although the government is encouraging electric vehicle imports through tax incentives, Bangladesh still lacks adequate charging infrastructure. Hybrid vehicles, on the other hand, already have an established servicing and maintenance network, making them a more practical option for promoting cleaner transport in the near term.

The association said the reconditioned vehicle sector has attracted around Tk20,000 crore in local investment, contributes about Tk6,000 crore in annual government revenue and supports several lakh jobs directly and indirectly.

The association also called for a rational long-term tax structure and the removal of customs valuation disparities, saying reconditioned vehicles currently face duties ranging from 159.80% to 1,007.50%, creating an uneven competitive environment.

Barvida Secretary General Reaz Rahman; Adviser Shahidul Islam; Vice-President Saifullah Samrat; former presidents Habib Ullah Don and Mannan Chowdhury Khosru, among other leaders of the association, were present at the conference.

The Indian rupee ended largely unchanged against the dollar after a choppy session on Friday, as weakness in regional currencies largely offset the unwinding of long dollar positions, but the currency posted its best week in the last 11 on debt inflows. This was also the fourth weekly gain in the last five weeks.

The rupee climbed to 94.21 early in the session as long dollar positions were unwound, but surrendered gains later as the dollar strengthened and index-rebalancing outflows hit the currency. It ended little changed at 94.32 per dollar.

For the week, the rupee rose 0.83 percent, marking its best performance since week ended April 3.

“The recent RBI measures together with favorable oil prices on account of de-escalation of Middle East concerns kept the local unit in positive territory even after sizeable dollar strength today,” said Dhaval Shah, founder and managing director, De-Risk Forex Consultancy. “This suggests the bias for rupee has changed and we continue with our previous forecast of 93.50.”

The rupee has been on a rising trend after the Reserve Bank of India announced dollar-attracting measures two weeks ago.

“RBI absorbing hedging cost to attract foreign currency deposits and support external borrowing with the concessional FX facility appear most effective in the near term to lend support to the rupee,” said Clifford Lau, hard- and local-currency portfolio manager on the emerging markets debt team at William Blair Investment Management.

Robust foreign inflows into Indian government securities and a slump in oil prices since then have also worked in favour of the local currency, but the one-way move was challenged by a resurgent dollar, an uptick in oil and renewed US rate-hike expectations on Friday.

The Fed’s latest policy meeting, the first under new Chair Kevin Warsh, revived expectations of further rate increases and drove the dollar index to a one-year high. Brent crude inched up after US Vice President JD Vance withdrew from a planned meeting with Iranian negotiators on Friday to begin discussions on implementing the 14-point agreement

Reconditioned vehicle importers have urged the government to review the proposed duty structure for automobiles, saying budgetary benefits for electric vehicles (EVs) could erode the competitiveness of hybrid and fossil-fuel-powered reconditioned cars in Bangladesh’s developing automobile market.

Abdul Haque, president of the Bangladesh Reconditioned Vehicles Importers and Dealers Association (Barvida), made the call at a press conference at the Dhaka Club yesterday.The association said the proposed budget grants significant duty benefits to EVs while raising the tax burden on popular reconditioned vehicles, particularly mid-range fossil-fuel-powered cars used by middle-income consumers.The overall tax incidence on cars in the 1,201cc-1,600cc segment would rise to 159.80 percent from 132.36 percent under the proposed restructuring of engine-capacity slabs, the association said.As a result, prices of popular models such as the Toyota Premio and Axio may rise by Tk 2.5 lakh to Tk 3 lakh, Barvida said.

Haque said these vehicles are mostly bought by middle-income and first-time buyers, who are already affected by the depreciation of the taka, higher import costs, and the economic slowdown.

“The burden will ultimately fall on consumers,” he said.

Reaz Rahman, secretary general of Barvida, said the government should restore the previous duty structure for the 1,200cc-1,600cc segment, which is widely used by middle-class consumers.

Otherwise, car sales and government revenue will both decline, he said.

Vehicle registrations have already fallen from around 25,000 units to 9,400 units in a year, hurting businesses and reducing revenue, the association said.

Barvida members have invested around Tk 20,000 crore locally and pay about Tk 6,000 crore in annual revenue, Haque said, adding that the sector also supports many small and medium-sized entrepreneurs and employs several lakh people directly and indirectly.

Haque said Bangladesh lacks adequate charging and servicing infrastructure to support a rapid shift to EVs, unlike its well-established hybrid ecosystem.

“EVs may be the future, but policy support has to reflect ground reality,” he said.

Barvida also flagged unequal duty treatment between brand-new and reconditioned plug-in hybrids, noting that the government cut supplementary duty on new plug-in hybrids of up to 2,000cc and withdrew regulatory duty on those of up to 1,800cc, while reconditioned versions in the same range still face higher duties.

The association urged the government to include reconditioned plug-in hybrids in the same benefit structure, rationalise tax slabs for 2,001cc-2,500cc vehicles, and withdraw the proposed tax hike on mid-range fossil-fuel-powered cars.

It also called for stricter customs valuation of new EVs to prevent under-invoicing.

“We want a level playing field,” Haque said.

Japan plans to set a target of about $2.3 trillion in combined public ​and private investment by 2040 across ‌17 strategic sectors as part of Prime Minister Sanae Takaichi’s new growth strategy, the Nikkei reported ​on Friday.

The 370 trillion yen investment ​initiative, to be unveiled as early as next week, will focus on areas such ​as AI, chips and space development, as ​Takaichi seeks to use government spending to spur private-sector investment, the business daily said, without citing a ​source for the information.

A call by Reuters ​to the Prime Minister’s Office on Saturday to seek ‌comment went unanswered outside business hours.

The government is considering creating a multi-year budget framework to ensure stable funding for investments deemed critical to ​economic security, ​some of ⁠which may be financed through bridging bonds.

Bridging bonds are used to ​cover temporary funding needs and are ​issued ⁠with guarantees on specific means to pay for redemption, allowing the heavily indebted government ⁠to ​argue that it is mindful ​of fiscal discipline even as it boosts spending.

Bangladesh's overall price level has risen by almost 70 per cent over the past decade ending FY 2025-26, according to the latest GDP deflator data, underscoring the extent of economy-wide inflation and its impact on growth, incomes and purchasing power.
FE

The GDP deflator stood at 169.72 in FY26 (provisional), compared with the base-year index of 100 in FY2016, indicating cumulative price growth of 69.72 per cent during the period, according to the latest GDP deflator data released by the Bangladesh Bureau of Statistics (BBS).

The GDP deflator, calculated by dividing nominal gross domestic product (GDP) by real GDP, is a broad measure of price changes across the economy.Bangladesh stock market

Economists use it to distinguish between economic growth driven by increased production and growth resulting merely from higher prices.

Unlike the Consumer Price Index (CPI), which tracks a fixed basket of consumer goods and services, the GDP deflator captures price movements across all domestically produced goods and services.

Imported products are generally reflected in CPI calculations once they are included in the consumer basket, but they are not directly captured by the GDP deflator.

Economists and statisticians say the two indicators measure broadly the same phenomenon but differ in coverage and methodology.

The BBS recently published the latest deflator figures. With the base-year index set at 100, the latest reading of 169.72 suggests that the overall price level in the economy has increased by nearly 70 per cent over the past decade.

The indicator is widely used to assess economy-wide inflationary pressures.

A rise in nominal GDP may occur either because output expands or because prices increase. The GDP deflator helps policymakers and economists isolate real production growth from inflation-driven gains.

While the CPI focuses on changes in prices paid by consumers, the GDP deflator measures price changes across all domestically produced goods and services, making it a broader gauge of inflationary trends.

Economists say the indicator provides a useful measure of annual price movements throughout the economy.

Dr. A K Enamul Haque, Director General of the Bangladesh Institute of Development Studies (BIDS), told the FE that the GDP deflator is a globally recognised indicator that helps economists assess price changes and determine the economy's real growth performance.

"It may be more accurate to describe it as a measure of overall price changes rather than inflation alone, as it reflects movements at both wholesale and retail levels," he said.

However, Dr Haque noted that inflation measured through the CPI and the GDP deflator does not usually diverge significantly.

Dr M Masrur Reaz, Chairman and CEO of Policy Exchange Bangladesh, said the country's persistently elevated inflation in recent years is clearly reflected in the deflator data.

"The GDP deflator and inflation are closely related, although they are not identical measures," he said.

CPI inflation includes imported goods contained in the consumer basket, whereas the GDP deflator covers only domestic production and services. "Most items in the CPI basket, such as rice, onions, potatoes and eggs, are domestically produced," he said.

However, imported edible oils are reflected in CPI inflation but excluded from the GDP deflator. Their weight in the CPI basket is relatively small, limiting their overall impact on inflation readings, he added.

Similarly, imported fruits carry a comparatively low weight in the CPI basket, while locally produced substitutes such as mustard oil are included in the GDP deflator.

Meanwhile, an analysis by three European academics argues that central banks place excessive emphasis on CPI inflation and should pay greater attention to the GDP deflator.

The study, published by the Brussels-based Centre for European Policy Studies (CEPS), contends that policymakers are being "misled" by relying too heavily on consumer-price inflation as a guide for monetary policy.

The authors - Cinzia Alcidi, Matthias Busse and Daniel Gros - argue that the GDP deflator is a more comprehensive measure because it captures changes in prices associated with production and income developments across the economy.

They further contend that in a high-debt environment, the GDP deflator may provide a better guide for policymakers, as government and corporate debt sustainability depends more on nominal GDP growth than on changes in consumers' purchasing power measured by the CPI.

The BBS compiles CPI data using the Jevons and chained Jevons formulas. Price information is collected from 154 markets nationwide, including 90 urban markets and 64 rural markets.

The survey covers 127 food items represented by 242 varieties and 256 non-food items represented by 507 varieties. Prices are collected monthly in both rural and urban areas, while data from the city corporations of Dhaka and Chattogram are gathered weekly.

By contrast, the GDP deflator is derived from national accounts data by dividing nominal GDP by real GDP, providing a broad measure of economy-wide price changes.

Bangladesh is expecting roughly US$3.0 billion in development support and grants from China during Prime Minister Tarique Rahman's upcoming visit starting June 23.

Mr Rahman will be on China tour on June 23-26 attending the World Economic Forum's Summer Davos gathering in Dalian before holding talks in Beijing with President Xi Jinping and Premier Li Qiang. Senior officials concerned have said Dhaka expects substantial Chinese backing for a series of infrastructure, industrial and public-health projects, alongside investment commitments from Chinese private companies.

"It is not wise to mention the exact amount, but we are expecting substantial support for several projects, and there will be grants as well," Foreign Secretary Asad Alam Siam told The Financial Express.

Officials say Bangladesh would seek Chinese financing for three new projects: the modernisation of Mongla Port, the establishment of a Chinese economic zone, and construction of a 1,000-bed hospital.

Among these, the Mongla seaport-modernisation project has long been under negotiation between the two countries but was stalled at the fag-end of the previous Hasina regime.

The project was supposed to be implemented under government concessional loan and its estimated cost was US$400 million. But now the project cost may be much higher, sources say.

The two sides are also expected to review progress on several large-scale projects already under implementation, including the $1.4-billion Expansion and Strengthening of Power System Network under Dhaka Power Distribution Company (DPDC), $966-million Power Grid Network Strengthening Project under Power Grid Company of Bangladesh (PGCB), $1.1-billion Dhaka-Ashulia Elevated Expressway, and $235-millio Rajshahi WASA Surface Water Treatment Plant.

The visit comes as Bangladesh seeks to revive investment inflows and accelerate infrastructure development amid persistent external-financing pressures and slowing industrial expansion.

Officials have described investment promotion as the central objective of the trip. "In fact, the main focus of this visit will be to attract Chinese investment, which is critical for economic growth," Mr Siam says.

The prime minister is scheduled to address a Bangladesh Investment Forum in Beijing and meet executives from several leading Chinese companies, including Chery Group and other major investors exploring opportunities in manufacturing, transport and logistics.

China has emerged as one of Bangladesh's most important economic partners, providing billions of dollars in infrastructure financing over the past decade while remaining the country's largest source of imports.

The two governments are expected to sign up to 17 cooperation instruments during the visit, including 13 memorandums of understanding, two formal agreements, an action plan and a protocol-related note.

Discussions will also cover water-resource management, including the long-discussed Teesta River Master Plan, although officials say no specific agreement on the project is expected to be signed during this tour.

"Integrated river management will be discussed in a broad and comprehensive manner. The Teesta issue will certainly be raised, along with wider cooperation on river management," Mr Siam says.

Another closely watched aspect of the visit will be Bangladesh's response to President Xi's signature international initiatives.

Dhaka is considering participation in one or more of China's four major global frameworks, including the Global Development Initiative (GDI), although officials stress that a final decision has yet to be taken.

"We are actively considering these initiatives. After the visit, we will be able to say whether we are joining any of them or not," Mr Siam says, adding that Bangladesh welcomes the broader vision behind the proposals. publication

Any decision to align more closely with Beijing's global initiatives would be closely monitored by regional and international partners as Bangladesh seeks to maintain a balanced foreign policy while expanding economic cooperation with China.

Mr Rahman will spend June 23-24 in Dalian, attending the World Economic Forum's Annual Meeting of the New Champions, known as Summer Davos. He is expected to participate in discussions on climate change and meet senior WEF officials and business leaders.

In Beijing, the prime minister will hold separate meetings with Premier Li Qiang and President Xi Jinping. He is also scheduled to meet Zhao Leji, chairman of the Standing Committee of the National People's Congress, alongside senior officials from the Communist Party of China, the China International Development Cooperation Agency and the Export-Import Bank of China.

The visit is expected to provide an early indication of how Bangladesh's new leadership intends to position the country within an increasingly competitive Asian geopolitical landscape while pursuing investment, trade and infrastructure partnerships essential for sustaining long-term growth.

This is the third time Ayesha Boutique, a well-known business from Mirpur Benarasi Palli, has showcased Benarasi saris and traditional clothing at the China–South Asia Expo in Kunming, Yunnan Province.

“We received a very good response at the previous two editions of the expo,” said the boutique’s Managing Director Nasimuddin, adding that buyers from markets such as Hong Kong had shown interest.

Like Ayesha Boutique, other Bangladeshi businesses used the six-day 10th China–South Asia Expo, which began on June 11 at the Dianchi International Convention and Exhibition Centre, to present their products while aiming to expand beyond traditional markets, connect with global buyers, and build stronger international brands.

The event brought together participants from 68 countries, regions and international organisations, including more than 560 South Asian companies targeting China’s large consumer market and wider trade opportunities.

Bangladesh recorded its largest-ever participation, with 101 companies and 175 representatives attending as the theme country, giving local businesses strong visibility.

Across the Bangladesh pavilion, companies from fashion, leather, pharmaceuticals and handicrafts highlighted a growing shift towards markets beyond domestic and traditional export destinations.

However, communication remained a challenge for many exhibitors. “Language is one of the biggest barriers in connecting with buyers,” said Nasimuddin.

To address this, his son Arif Rana joined him at the event. “I use translation apps to communicate with buyers. It has made things much easier,” Rana said.

The experience showed how translation tools are helping smaller Bangladeshi businesses overcome language barriers and reach global markets more effectively.

This reporter, attending the expo on an invitation extended to The Daily Star by the International Communication Centre for South and Southeast Asia, spoke with around a dozen Bangladeshi businesses taking part.

BUSINESS EXPANSION GOALS

For many companies, the expo served as a strategic platform for expansion.

“The main purpose is to introduce Armadea to global clients and establish direct communication with buyers, as we are increasingly focused on exports,” said Alauddin Sohel, owner of Armadea, a Hemayetpur-based leather goods manufacturer producing bags, wallets, belts, jackets and gloves.

Corium Bangladesh, a leather footwear and accessories maker, also joined with similar goals.

“We mainly export to Europe and supply corporate buyers,” said founder Shakil Ahmed. “Sourcing foreign customers and business expansion are key goals here.”

The pharmaceutical companies used the expo to explore new partnerships. Belsen Pharmaceuticals displayed its range of cardiac, gastric, dental and calcium-related treatments. “We want to connect with foreign partners and explore possible partnerships with Chinese investors and others,” said Nairita Nahrin Barisha, assistant chief marketing officer of the company.

“We want to create stronger connections between Bangladesh and China to produce better medicines,” she added.

Bangladesh’s retail giant Aarong took part in the expo for the first time, showcasing items ranging from handcrafted brass rickshaws to clothing and lifestyle products.

“We want to introduce our products to international visitors and better understand the Chinese market,” said Mohammad Minhaz Uddin, assistant general manager of Aarong. Sustainable Bangladesh, a natural fibre-based products company, returned after strong demand last year.

“We mainly export to European markets,” said proprietor Rafi Sarjil. “But last year we saw strong local sales in Kunming, which encouraged us to bring a much larger product range this year.”

STRENGTHENING ECONOMIC DIPLOMACY

Bangladesh’s participation went beyond business, as policymakers also used the platform to strengthen economic diplomacy with China.

The expo was inaugurated by Commerce, Industries, Textiles and Jute Minister Khandakar Abdul Muktadir alongside Yunnan Governor Wang Yubo.

Muktadir reaffirmed Bangladesh’s commitment to stronger bilateral ties based on mutual respect, sovereignty, equality and shared prosperity. “The government is sincere in building sustainable relations that deliver tangible benefits for the people of both countries,” he said.

He added, “Today is a special day for us as we celebrate ‘Bangladesh Day’ in the hospitable and warm city of Kunming,” calling it a symbol of growing friendship and trust between the two countries.

Referring to “Destination Bangladesh -- A Unique Land of Potential,” he said it is more than a slogan and serves as an invitation for global investors and business leaders to engage with Bangladesh’s growing economy.

A parliamentary delegation led by Deputy Speaker Barrister Kayser Kamal also visited the expo, calling for stronger bilateral cooperation and increased Chinese investment in infrastructure and strategic sectors.

Bangladesh’s participation was recognised with six awards in four categories. The Export Promotion Bureau received the “Outstanding Exhibition Organiser” title, while Aarong, Sustainable Bangladesh and Clay Image were named Best Exhibitors. Bangladesh also won awards for Best Pavilion and Best Booth Design.

When a managing director or chief executive officer of a bank applies to resign, the Bangladesh Bank (BB) is supposed to call them for a hearing before taking a final decision, as per the existing regulations.

However, in more than a year up to this month, more than a dozen managing directors and chief executive officers of private commercial banks have resigned or been terminated. In many of these cases, personal hearings were not held by the banking regulator.

This has raised a key question: while rules exist to protect bank executives from leaving under internal pressure, are they being properly enforced?

Take the case of Kimiwa Saddat, who resigned as acting managing director of Community Bank Bangladesh PLC on May 6, citing personal reasons. His departure came before he was formally confirmed in the full-time role.

Contacted, he told The Daily Star that the central bank had not called him regarding the matter till yesterday.

There have been media reports suggesting he resigned amid pressure from the board of directors at the bank owned by the Bangladesh Police Welfare Trust. However, Saddat did not confirm the claims.

When asked whether there was any pressure behind his resignation, he said, “I do not know much about it. A member of the board had hinted at it. I resigned citing personal reasons to preserve my own dignity.”

Unlike Saddat’s case, the resignation of Md Omar Faruk Khan, managing director of Islami Bank Bangladesh PLC, drew widespread attention.

Khan resigned on May 24, a day before the country entered a nearly week-long Eid holiday. At the time, he was on one and a half months of leave.

On the same day, the bank’s chairman and independent director, M Zubaidur Rahman, also stepped down. The BB later appointed Md Khurshid Alam, a former BB deputy governor, as chairman of Islami Bank.

The leadership changes triggered protests from customers and disrupted operations for around two weeks. The issue was also debated in parliament between members of the ruling party and the opposition.

The central bank eventually dissolved the entire board, including the chairman. Protesters under the banner of the customers’ forum alleged that the regulator had forced the managing director and chairman to resign. However, BB denied the allegation.

Nearly a month after Khan’s resignation, the central bank had not called him for a hearing, according to BB officials speaking on condition of anonymity.

The Daily Star tried to reach Khan by phone until the filing of this report yesterday, but he did not respond.

NOT ALL RESIGNATIONS LINKED TO PRESSURE CLAIMS

Not every departure in the past one year has been linked to allegations of internal pressure.

Some executives said they left to take up roles at other banks, while others said they were contacted by the BB after resigning.

Selim RF Hussain resigned as managing director of BRAC Bank in May last year. He told The Daily Star that the central bank contacted him after his resignation.

In February this year, Hassan O Rashid, chief executive officer of Prime Bank, resigned to join Eastern Bank as its managing director.

Earlier, in August last year, Sheikh Mohammad Maroof, managing director of Dhaka Bank, resigned citing personal reasons. He told The Daily Star that Bangladesh Bank had called him regarding his resignation.

Separately, several managing directors and chief executive officers, including those at Premier Bank, First Security Islami Bank, EXIM Bank, Union Bank and Global Islami Bank, were placed on forced leave and later terminated.

Arief Hossain Khan, executive director and spokesperson of the BB, said the regulator usually calls managing directors for a hearing when they resign.

However, he said he was not aware whether the managing directors of Community Bank and Islami Bank had been called.

RULES EXIST, BUT DOUBTS REMAIN

The BB introduced a policy in 2014 on the appointment and responsibilities of chief executives of banks. It was followed by a master circular in 2024.

According to the guidelines, if a managing director or chief executive officer resigns before completing their contract, the application must be forwarded to the BB with the board’s recommendation.

A high-level BB committee is then required to hold a personal hearing with the concerned official before making a recommendation. The central bank takes a final decision based on that recommendation.

Speaking on condition of anonymity, a senior managing director of a private commercial bank said the MD sits at the centre of a bank’s operations, while the board sets policy.

“Any proposal that requires the board’s approval must be presented by the MD. Once an agenda is approved by the board, the responsibility for its implementation also falls on the MD. As a result, the relationship between the board of directors and the MD often becomes a mix of cooperation and tension.”

He said this tension often leads to pressure on managing directors to resign.

He added that despite existing regulations, the BB is not effectively safeguarding senior executives.

Toufic Ahmad Choudhury, former director general of the Bangladesh Institute of Bank Management (BIBM), said boards of many banks place heavy pressure on management and managing directors.

“As a result, if an MD does not comply with the board’s wishes, he or she may be removed or forced to resign.”

He said the central bank needs stronger safeguards to protect MDs, but added that institutional independence is also essential. “A weak central bank cannot effectively safeguard MDs. This is precisely why greater autonomy for the central bank is essential.”

The International Business Forum of Bangladesh (IBFB) has termed the proposed national budget for fiscal year 2026-27 a positive and pragmatic roadmap for economic recovery, investment expansion, employment generation and long-term structural reforms.
FE

The business body made the observation at a press conference titled 'Proposed Budget 2026-27: Expectations and Outcomes' held at the National Press Club in Dhaka on Thursday.

Speaking at the event, IBFB President Lutfunnisa Saudia Khan said the budget's emphasis on investment, industrialisation, small and medium enterprise (SME) development, support for women and young entrepreneurs, expansion of the digital economy, greater use of renewable energy and an increase in the tax-free income threshold sends a positive signal for businesses and job creation.

She said successful implementation of these initiatives would help attract both domestic and foreign investment, create new employment opportunities and accelerate economic growth.

However, she underscored the need for effective measures to address challenges, including ambitious revenue targets, inflationary pressure, weaknesses in the banking sector and constraints in implementation capacity.

The IBFB reiterated its recommendations for full digitalisation of tax administration, structural reforms of the National Board of Revenue (NBR), improving the ease of doing business, expanding SME financing, attracting foreign investment, developing the capital market and ensuring policy continuity.Economic policy analysis

Former NBR chairman Dr. Muhammad Abdul Mazid, who attended the event, said unnecessary expenditures should be curtailed in the budget and institutional capacity strengthened to ensure effective implementation.

He also stressed that public aspirations should be reflected in the national budget.

Responding to a question on the revenue target for FY27, Dr. Mazid said achieving the target might be difficult given the revenue shortfalls recorded in recent fiscal years.

He, however, noted that if the banking and capital market sectors become more vibrant and stronger, revenue collection in FY27 could significantly exceed previous years' levels.

He emphasised that policy continuity and predictability are essential for maintaining an investment-friendly environment and ensuring long-term economic stability.

The IBFB said that with effective implementation, good governance and necessary reforms, the FY27 budget could strengthen the foundation for higher economic growth, increased investment and sustainable development in Bangladesh.

Former IBFB president Humayun Rashid, IBFB Life Member and Director M.S. Siddiqui and Vice President Utpal Kumar Das were present at the press conference.

Bangladesh Bank Governor Mostaqur Rahman has directed banking supervisors to adopt a zero-tolerance approach towards violations of banking laws and regulations, instructing them to take the toughest possible action against non-compliant banks.

The directive was issued during a meeting today (20 June) between the governor, two deputy governors, executive directors and directors of departments responsible for bank supervision at the central bank.

According to meeting sources, the governor instructed officials to play the strictest possible role in supervising banks and ensuring compliance with regulatory requirements.

Mostaqur said Bangladesh Bank should show no leniency in cases where banks violate laws or regulatory provisions and should instead follow a zero-tolerance policy in dealing with such offences.

The governor also instructed officials to impose the maximum penalties permitted under relevant laws whenever violations are identified.

The governor emphasised the importance of effective bank supervision and directed supervisory departments to closely monitor whether banks are complying with all applicable rules and regulations.

Mostaqur also instructed officials to keep him regularly informed about the latest developments in the banking sector and the actions taken against irregularities through periodic meetings involving directors, executive directors and deputy governors overseeing bank supervision.

Bangladesh has scrapped the long-standing cap on foreign ownership of inland container depots (ICDs) and off-dock facilities, a move aimed at attracting greater foreign direct investment into the country's expanding logistics and port sectors.

The measure, announced by Finance Minister Amir Khosru Mahmud Chowdhury during the presentation of the national budget on 11 June, will take effect from 1 July. It will allow foreign investors to own 100% of private ICD and off-dock operations.

Industry stakeholders have largely welcomed the decision, describing it as a positive signal for international investors. However, they cautioned that removing ownership restrictions alone may not be enough to attract substantial foreign investment.

The decision marks a major policy shift for Bangladesh's logistics industry. Until now, foreign operators could enter the sector only through joint ventures with local partners holding majority stakes. Under the new framework, international companies will be able to establish and operate facilities independently.

The government expects the move to encourage fresh investment in logistics infrastructure as Bangladesh prepares for higher export volumes and increasing cargo traffic in the coming years.

According to the Bangladesh Inland Container Depots Association (Bicda), the country currently has 24 privately operated ICDs, several of which already have foreign participation through joint venture arrangements. These facilities have a combined storage capacity of 1,06,000 twenty-foot equivalent units (TEUs) and can handle around 90,000 export containers, 50,000 import containers and 60,000 empty containers each month.

Three more ICDs are in the pipeline and are expected to begin operations this year or next.

Global port and logistics operators, including DP World, Medlog, Red Sea Gateway Terminal (RSGT), APM Terminals and PSA Singapore, have either invested in or expressed interest in Bangladesh's ports, terminals and off-dock businesses.

Operational efficiency key to attracting investors

Ruhul Amin Sikder, secretary general of BICDA, said the ownership cap had been introduced primarily to protect local investors who developed the sector over nearly two decades.

"Opening the sector to 100% foreign ownership changes the investment landscape. But removing the cap does not automatically mean foreign investors will come," he told TBS.

According to him, Bangladesh must address several operational bottlenecks before expecting significant foreign participation.

"Investors will look at operational efficiency first. Challenges at Chattogram Port, transportation bottlenecks and communication infrastructure need to be improved," he said.

He also pointed to the slow pace of digitalisation in logistics operations, noting that many processes remain manual despite years of reform efforts.

Ruhul further highlighted concerns regarding tariff-setting mechanisms, arguing that investors need confidence that they can earn sustainable returns on long-term investments.

"These are capital-intensive investments. Foreign investors will assess whether there is a stable and predictable return environment before making commitments," he added.

He noted that three to four additional ICDs are expected to become operational within the next two years, significantly boosting container-handling capacity. Together with the existing facilities, these depots are expected to meet the country's ICD demand through 2030.

Technology transfer, productivity gains expected

Zafor Alam, a former member of the Chattogram Port Authority, said greater foreign participation could significantly improve operational performance.

"International operators bring modern technologies, digital systems and management expertise that can improve overall efficiency," he said.

According to Zafor, the entry of global logistics firms would also create opportunities for technology transfer and workforce development.

"They will bring advanced IT systems, training programmes and international best practices. Local workers will gain valuable skills and experience from working alongside global operators," he said.

However, he stressed the need for uninterrupted power supply and a skilled workforce to support foreign investment.

"These are among the key factors foreign investors consider when selecting investment destinations," he added.

Zafor also suggested that future agreements with foreign operators should include provisions for training and employing local workers to maximise long-term benefits for Bangladesh.

Part of broader FDI strategy

The removal of foreign ownership restrictions forms part of the government's broader strategy to attract FDI and strengthen Bangladesh's trade-support infrastructure ahead of its graduation from least developed country (LDC) status.

Policymakers expect increased foreign participation to help expand logistics capacity, improve service quality and enhance the country's competitiveness as an export destination.

Industry observers say the reform removes a major barrier that had discouraged some international operators from entering Bangladesh's ICD sector. However, they note that infrastructure improvements, regulatory predictability and operational efficiency will ultimately determine whether the country can translate policy liberalisation into meaningful investment inflows.

The government has taken an initiative to attract domestic and foreign investment by making use of the land and infrastructure of state-owned enterprises that are closed, loss-making or no longer operational.

As part of this, Prime Minister Tarique Rahman yesterday met prominent industrialists and business leaders and assured them of full government support for reviving underperforming state-owned factories.

He said the government was committed to removing obstacles and creating a more business-friendly environment, reports UNB.

“We just want you to grow further, and we want to help you by providing all necessary support,” he told the meeting, jointly organised by the Ministry of Industries, the Ministry of Textiles and Jute, and the Bangladesh Investment Development Authority (Bida) at the Prime Minister’s Office in Tejgaon, according to PM’s Deputy Press Secretary Hasan Shiplu.

Addressing entrepreneurs, the prime minister said the government wants businesses to expand and contribute more to the country’s economic growth.

“I have said before that we want you to move forward. You have raised a number of issues and shared your views on how the government can support you in addressing them within a short period. We have already started working on some of these matters,” Shiplu quoted Tarique Rahman as saying.

The prime minister said it is the responsibility of an elected government to remove barriers and help create solutions, but acknowledged that progress would take time. “The reality is that we cannot solve all problems at once. But we can address them gradually,” he said.

At the meeting, chairmen of five state-owned corporations, including the Bangladesh Chemical Industries Corporation (BCIC), Bangladesh Sugar and Food Industries Corporation (BSFIC), Bangladesh Steel and Engineering Corporation (BSEC), and Bangladesh Textile Mills Corporation (BTMC), shared plans to transform factory sites into economic zones, technology parks, agro-processing centres and high-tech industrial hubs.

Investors and business leaders were presented with details of 44 factories, including their locations, existing infrastructure, investment facilities, transport links and potential for expansion.

Business leaders later took part in an open discussion on investment-related issues, raising around 50 questions that were answered by the relevant authorities.

Finance and Planning Minister Amir Khosru Mahmud Chowdhury; Commerce, Industries and Textiles and Jute Minister Khandakar Abdul Muktadir; Economic and Planning Affairs Adviser Rashed Al Mahmud Titumir; Posts, Telecommunications and Information Technology Adviser Rehan Asif Asad; Bida Executive Chairman Ashik Chowdhury; Bangladesh Bank Governor Mostaqur Rahman; and Principal Secretary ABM Abdus Sattar were present.

PRAN-RFL Group Chairman and CEO Ahsan Khan Chowdhury, Kazi Farms Limited Managing Director (MD) Kazi Zahedul Hasan, Meghna Group of Industries Chairman and Managing Director Mostafa Kamal, Transcom Group CEO Simeen Rahman and Head of Transformation Zaraif Ayat Hossain, ACI Limited MD Arif Dowla, BRAC Enterprises MD Tamara Hasan Abed, Nabil Group of Industries Managing Director and CEO Md Aminul Islam, Akij Venture Group Chairman SK Shamim Uddin, and Square Food & Beverage CEO Parvez Saiful Islam, among others, attended the meeting.

Representatives from several Japanese companies and organisations, including Marubeni Corporation, Toyota Tsusho Corporation, Sumitomo Corporation, MUFG Bank Limited, Mitsui & Co. (Asia Pacific) Pte Ltd, Sojitz Asia Pte Ltd, JETRO Bangladesh and the Embassy of Japan in Bangladesh, also joined the programme.

Speaking to The Daily Star, Ahsan Khan Chowdhury, chairman and CEO of PRAN-RFL Group, said there is scope for billions of dollars in investment if dormant state-owned industrial units are revived and put to productive use.

He said discussions focused on how underutilised and loss-making state-owned enterprises could be brought back into economic activity. “We discussed what kinds of investments could be made and what product lines these facilities could support.”

The presentations included factories under BCIC, BSFIC, BTMC, BSEC and other state-owned entities.

Chowdhury said the prime minister appeared keen to encourage investment in agriculture and agro-based industries. “For a country like Bangladesh, where land is scarce and access to capital remains limited, making use of existing industrial infrastructure can significantly accelerate industrialisation,” he said.

“Many of these factories were established decades ago and would require modernisation and rehabilitation. But the land is already developed, and basic infrastructure is in place. If investment comes in, the scale could be substantial,” he added.

Simeen Rahman, group CEO of Transcom Group, described the initiative as “highly encouraging”, saying it demonstrates the prime minister’s commitment to providing policy support for investors.

“If closed and sick factories are revived, employment opportunities will be created, exports will rise, and the entire country will progress,” she said.

She said the prime minister’s support is not limited to agriculture. Investors interested in sectors such as pharmaceuticals, light engineering and electric vehicles would also receive government support.

“We are very optimistic that this kind of initiative by the prime minister will bring about something good for the country,” she added.

Mostafa Kamal, chairman and managing director of Meghna Group of Industries, welcomed the move. “It is a very good initiative. The prime minister listened to us with patience. It is good for us that we can share our issues with him directly.”

Md Aminul Islam, managing director and CEO of Nabil Group of Industries, said businesses have been assured of maximum policy support from the government. “We have expressed our interest in Setabganj Sugar Mill and Rajshahi Sugar Mill at the meeting,” he said.

Bangladesh has been experiencing high inflation for a prolonged period, pushing people’s endurance to its limits, analysts said at an event yesterday.

The prolonged inflation has significantly affected people’s lives. In this reality, many young people are taking on multiple jobs. Some are even working three jobs to cope, they added.

They spoke at a budget analysis event organised online by the Power and Participation Research Centre (PPRC).

Bangladesh’s overall inflation climbed to a 16-month high of 9.42 percent in May, driven largely by a sharp rise in food prices that is squeezing household budgets, particularly for low- and middle-income families.

According to data released by the Bangladesh Bureau of Statistics, food inflation rose to 9.06 percent in May from 8.39 percent in April, reflecting higher prices of essential commodities. Non-food inflation also increased, reaching 9.71 percent from 9.57 percent in April.

Farah Kabir, country director of ActionAid Bangladesh, said prices of goods have remained elevated for several years.

“If you ask small and medium-sized business owners, they will tell you that business is not doing well,” she said.

The country’s overall situation cannot be judged solely by looking at Dhaka. Dhaka is like a balloon -- much of what is seen here is artificial, she said.

Even tea stalls remain open at midnight. When around 2 crore people live in such a limited space, this is to be expected. Overall, people across the country are not doing well, she said.

The proposed budget includes reductions in duties and taxes on a range of essential commodities. As a result, prices have remained largely stable following the budget announcement, said Muhammad Abdul Majid, a former chairman of the NBR.

According to him, the current prices of essential goods are likely to remain unchanged if these tax concessions continue.

Majid emphasised that political commitment will be crucial to achieving the intended outcomes. Simply announcing tax and duty reductions is not enough, he said.

Policymakers must also ensure that the measures are properly implemented and that consumers ultimately benefit from them, he added.

Hossain Zillur Rahman, executive chairman of the PPRC, said the country has social protection programmes aimed at supporting low-income groups. However, he raised concerns about the budget’s implications for the middle class.

Although the tax-free income threshold has been increased, higher tax rates have offset part of that benefit. Consequently, those who pay income tax are likely to see only limited relief, he added.

He also said the proposed budget reflects the new government’s commitment to easing public hardship, boosting economic growth and pursuing key reforms. It places special emphasis on social sector spending, and its objectives have been widely viewed as positive.

Nevertheless, concerns persist over the feasibility of the spending plans, given that revenue collection has repeatedly fallen short of target. This raises questions about how the government will fund its ambitious expenditure programme, he added.

Md Fazlul Hoque, former president of the Bangladesh Knitwear Manufacturers and Exporters Association, warned that rising government borrowing from banks could crowd out credit available to the private sector.

He further stressed that improvements in energy security, overall stability and reforms in the banking sector are essential to encourage higher private investment.

Brent crude ticked higher on Friday, but stayed set for a weekly fall of around 8 percent, after Israel and Hezbollah agreed on a ceasefire in Lebanon but Iran set conditions for using the vital Strait of Hormuz.

Brent crude futures were up 66 cents, or 0.53 percent, at $80.38 a barrel by 1:30 p.m. ET, while US West Texas Intermediate crude was up 94 cents, or 1.23 percent, at $77.54 per barrel. Trading volumes were light due to a US federal holiday.

Gulf producers were preparing to raise exports after Israel and Hezbollah agreed to a ceasefire which began at 4 p.m. local time (1300 GMT) on Friday. At least four tankers carrying crude, oil products and liquefied petroleum gas entered the Strait of Hormuz on Friday, heading for Iraqi Gulf ports, MarineTraffic data showed.

Despite the uptick in activity, however, Iran signalled tighter control over shipping, with state TV reporting that vessels must coordinate transit with the Revolutionary Guards navy. In an undated advisory circulated to the maritime industry in the last 24 hours and seen by Reuters, Iran’s Persian Gulf Strait Authority said “no vessel is permitted to pass through the Strait of Hormuz without a valid passage permit issued by the PGSA”.

Concerns around Iran’s conditions for using the strait helped push oil prices higher on Friday, said Rory Johnston, founder of the Commodity Context newsletter. “The market was pricing in a deal and pretty seamless execution, and that doesn’t seem to be what we’re getting thus far,” Johnston said.

In spite of Friday’s gains, Brent was down about 8 percent week-over-week, reflecting a significant easing of supply concerns in the wake of the US-Iran deal to end the war. “Though (oil prices) haven’t got to the point to where they were before the war started, it looks like we’re headed in that direction,” said Phil Flynn, senior analyst with Price Futures Group, adding more supply is expected to flow in coming days.

“The backlog of ships can move quicker than some people think and if there’s cooperation between Iran and the US, it can move quite quickly,” Flynn added.

A planned meeting between Iranian and US officials in Switzerland on Friday has been postponed, with arrangements underway for talks in the coming days, Iran’s Foreign Ministry said on Friday. The ministry said the meeting was no longer urgent because a memorandum of understanding on ending the war had already been signed digitally between the two sides. Analysts expect the deal to release more than 85 million barrels of oil stranded in the Middle East Gulf into global markets. The agreement also includes the lifting of US sanctions on Iranian oil, which would add more supply.

Around 20 percent of global oil and LNG supply transits Hormuz, but recovery in flows and production after the US-Iran deal could take several months. Citi said its base case, with a 60 percent probability, sees sustained normalisation in flows, with oil markets moving into surplus and prices trending lower over the next six to 12 months to around $60 to $65 per barrel by the first quarter of 2027.

Commerzbank said oil supply should gradually recover, lowering its Brent forecast to $80 a barrel by year-end from $85, while expecting prices to remain above pre-war levels for most of the coming year.

Iraq’s oilfields are ready to resume production and output will gradually return to normal, restoring previous rates, Oil Minister Basim Mohammed said.

On the demand front, world demand will rise to 113.3 million bpd in 2030 from 105.1 million barrels per day in 2025, OPEC said in its 2026 World Oil Outlook.

Bangladeshi garment manufacturers have the potential to export $100 billion worth of apparel by the end of 2030 if they are ensured an adequate supply of gas and electricity and benefit from simplified business regulations.

Industry leaders say reaching $100 billion in exports is not a formal target but a realistic possibility as global demand for apparel continues to grow and supply chains return to normal.

However, they stress that achieving such growth will require uninterrupted energy supplies, as many factories are currently operating below capacity due to gas and power shortages.Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), made the comments to The Daily Star after an annual general meeting of the trade body.Moreover, the BGMEA will work with the government to simplify customs procedures and reduce delays in export and import processes in order to enhance Bangladesh's competitiveness in the global supply chain, Khan said.

Auditing takes a long time in Bangladesh, and this period should be shortened to make businesses more competitive in the post-LDC era, as maintaining competitiveness will be crucial for Bangladesh in the global supply chain after graduation from the least developed country (LDC) category, he added.

The government has already allocated Tk 20,000 crore for reopening closed factories, and the BGMEA has been collaborating with the government by providing information on shuttered production units so that they can access the fund, the BGMEA president also said.

At the meeting, members also raised concerns about faulty clauses in the Bangladesh National Building Code, which have created difficulties for many factories.

BGMEA leaders expressed their willingness to work with the government to find a solution to these problematic clauses.

Conventional banks outperformed Islamic banks in deposit collection, investment, and asset growth over the past year, mainly due to instability in the Islamic banking sector following the July 2024 uprising.

According to a recently released report by the Bangladesh Bank, deposits in conventional banks rose from Tk 15.22 lakh crore in April 2025 to Tk 17.16 lakh crore in April 2026, marking a year-on-year growth of 12.73 percent.

In contrast, deposits in Islamic banks increased from Tk 4.41 lakh crore to Tk 4.81 lakh crore over the same period, showing a moderate growth of about 8.98 percent.

“This steady growth in deposits in conventional banks can be primarily attributed to an unstable situation in the Islamic banking sector after the July 2024 uprising, which shifted depositor confidence towards conventional banks,” the BB report said.

The report added that following the July uprising, BB’s measures -- such as providing liquidity support, identifying weaknesses in banks and appointing administrators to improve management -- may help restore depositor confidence.

It also found that depositors mainly rely on Mudaraba-based deposits, which account for around 87.21 percent of the Islamic banking deposit base. As of April 2026, the deposit base is largely driven by the private sector, which makes up about 90.2 percent of total deposits.

In terms of assets, conventional banks recorded stronger and more consistent growth over the same period. Their assets rose from Tk 32.93 lakh crore in April 2025 to Tk 37.78 lakh crore in April 2026, a year-on-year increase of about 14.72 percent.

Islamic banks’ assets grew more slowly, increasing from Tk 9.14 lakh crore to Tk 9.56 lakh crore over the same period, reflecting a 4.58 percent rise.

The overall banking sector in Bangladesh saw strong investment growth between November 2023 and April 2026, with total investments increasing from Tk 18.99 lakh crore to Tk 24.45 lakh crore, a rise of 28.71 percent.

Within this, investments by conventional banks grew from Tk 16.73 lakh crore to Tk 18.53 lakh crore between April 2025 and April 2026, an increase of 10.71 percent.

Islamic banks’ investments rose from Tk 5.57 lakh crore to Tk 5.92 lakh crore over the same period, reflecting growth of about 6.26 percent.

“The year-on-year growth indicates gradual expansion, supported by rising demand for Islamic financing products, especially profit-and-loss sharing modes,” the report said.

From a sectoral perspective, the report added that Islamic banks’ investments were distributed across different areas of the economy, with the largest share going to industry and trade and commerce, highlighting their role in supporting productive and commercial activities.

The Bangladesh Bank has permitted authorised dealers (ADs) to facilitate outward remittances for lease rentals on ships and vessels operated by Bangladeshi-registered shipping companies, in a move aimed at boosting the country's maritime transport capacity.

In a circular issued today (18 June), the central bank said ADs will be able to process such payments in line with existing foreign exchange regulations applicable to aircraft leasing. The policy shift is intended to support the expansion of ocean-going vessels under local ownership.

Previously, the facility was restricted to aircraft leases. Under the revised guidelines, shipping companies will now be eligible for similar FX support, subject to compliance with specified conditions, the circular said.

The central bank directed that companies must obtain necessary approvals from the relevant authorities for operating leased vessels.

"It also required firms to remain compliant with regulatory obligations, including regular submission of returns to Bangladesh Bank and repatriation of surplus earnings," the circular added.

Industry stakeholders have welcomed the move, saying it will help expand Bangladesh-operated ocean-going fleets.

They expect the policy to strengthen the country's presence in global shipping, improve foreign currency earnings, and reduce reliance on foreign vessels, thereby easing pressure on foreign exchange reserves.

The initiative reflects Bangladesh Bank's broader effort to align foreign exchange regulations with sectoral development priorities and support sustainable growth in key industries.

Berger Paints Bangladesh Limited and its wholly-owned subsidiary, Jenson and Nicholson (Bangladesh) Limited, have decided to jointly invest Tk10 crore in a newly formed entity, Jenson and Nicholson Packaging Limited (JNPL).

According to a price-sensitive statement filed with the Dhaka Stock Exchange (DSE) recently, the country's leading multinational coatings manufacturer is expanding its footprint into the packaging sector to support its core operations and leverage emerging industrial opportunities.

The statement said Berger Paints will inject Tk5.10 crore in JNPL and the remaining Tk4.90 crore will be contributed by Jenson and Nicholson (Bangladesh) Limited.

Earlier, Berger Paints formed Jenson and Nicholson Packaging by acquiring a 51% stake through an investment of Tk5.10 crore, while Jenson and Nicholson (Bangladesh) invested Tk4.90 crore to acquire the remaining 49% stake in the packaging company.

JNPL is set to establish a manufacturing plant within the National Special Economic Zone to produce various plastic-based packaging products.

Berger officials noted that the company currently requires both metal and plastic containers for its paint products. While Jenson and Nicholson (Bangladesh) already manufactures metal containers for both internal use and commercial sale, the new venture will specifically address the growing demand for plastic-based packaging.

To facilitate the project, the Berger board has earlier approved an amendment to its land lease agreement with the Bangladesh Economic Zones Authority (Beza). Under the revised arrangement, 1.16 acres of land will be allocated to the new subsidiary, JNPL, while 38.25 acres will remain under the parent company out of the total 39.41 acres leased from Beza.

The company stated that setting up the plant within a special economic zone allows the venture to benefit from government-mandated tax holiday facilities. While the initial production is intended to meet Berger's internal requirements, the management envisions potential commercial expansion in the future.

The strategic move comes on the heels of a strong financial year for the paint giant. For the fiscal year ended 31 March 2026, Berger Paints Bangladesh reported a consolidated net profit of Tk372 crore, up 10% year-on-year. Buoyed by this robust performance, the company's board has recommended a 525% cash dividend – equivalent to Tk52.50 per share – for its shareholders.