The Bangladesh Association of Publicly Listed Companies (BAPLC) has urged the securities regulator to simplify the listing process and remove existing barriers to encourage fundamentally strong companies to enter the capital market.

The association emphasised that resolving these procedural complexities is essential to ensuring long-term financing for the industrial sector through the country's bourses.

The call came during a courtesy meeting between a high-level BAPLC delegation and officials of the Bangladesh Securities and Exchange Commission (BSEC) at the regulator's headquarters in Agargaon, Dhaka, today (18 June).

The discussion focused primarily on market development, investor protection and the need to bring more reputable corporate houses into the trading fold.

During the meeting, BAPLC leaders informed the regulator that many high-potential companies have expressed a keen interest in going public but continue to face various procedural bottlenecks that discourage them from entering the market.

As the representative body of listed companies, the association said it is willing to play a facilitative role in bridging the gap between prospective issuers and the regulator to deepen the market's strength.

In response, the BSEC leadership assured the delegation that the commission remains dedicated to market reform and investor welfare.

The regulator pledged to provide maximum possible assistance to resolve the issues identified by the association, noting that the inclusion of good companies is vital for a vibrant and transparent capital market.

The two sides also discussed broader initiatives to modernise Bangladesh's financial ecosystem and make the capital market more attractive to both domestic and foreign investors.

The BSEC side was led by its Acting Chairman Tanwir Habib Rahman, accompanied by Commissioners Nahid Mahtab and Nafeez Al Tarik, along with senior executive directors.

The BAPLC delegation included its President Riad Mahmud, who is also the managing director of National Polymer Industries PLC. Vice-President Syed Ishtiaq Ahmed and Secretary General Amjad Hossain also attended the meeting.

The country's premier bourse maintained its robust upward trajectory last week, with the benchmark index hitting a nine-and-a-half-month high as investor confidence continued to strengthen under the influence of post-budget optimism and supportive regulatory interventions.

The benchmark DSEX index of the Dhaka Stock Exchange surged by 141 points or 2.5% to settle the week at 5,661, marking its fifth consecutive week of gains. The rally successfully pushed the index past the crucial 5,600-point threshold for the first time since late last year, reflecting a significant shift in market sentiment following repeated government commitments to capital market development.

The blue-chip segment also witnessed substantial growth, with the DS30 index gaining 70 points to close at 2,143.

This broad-based rally added approximately Tk3,400 crore to the total market capitalisation of the Dhaka bourse. While the daily average turnover saw a marginal dip to Tk1,283 crore, market participation remained resilient as investors actively accumulated attractively valued scrips across various sectors.

According to the weekly market review by EBL Securities, the week opened on a strong footing, bolstered by a buying spree in heavyweight stocks, particularly Islami Bank Bangladesh PLC. The bank's stock saw heightened interest following government-backed regulatory support aimed at alleviating its acute liquidity stress, which in turn restored confidence in the wider banking sector.

Beyond domestic cues, the easing of geopolitical tensions in the Middle East provided an additional boost to the overall risk appetite of market participants. Although intermittent profit-booking surfaced mid-week as some investors opted to lock in gains from the month-long rally, the downward pressure was quickly absorbed by bargain hunters who resumed their positions in fundamentally strong stocks, EBL Securities added.

The market was also supported by major index pullers such as Beximco Pharmaceuticals, Square Pharmaceuticals, Pubali Bank, and City Bank, which helped sustain the positive momentum despite selling pressure in other areas.

On the sectoral front, the textile sector dominated market activity, accounting for 12.8% of the total turnover, followed by general insurance at 12.1% and pharmaceuticals at 10.8%.

In terms of returns, the information technology sector emerged as the top gainer with a 4.9% increase, closely followed by financial institutions and mutual funds.

Conversely, the miscellaneous sector faced a staggering 15.4% decline, primarily dragged down by a sharp correction in Beximco Limited following its floor price withdrawal. The travel and jute sectors also ended the week in the red.

Individual stock performance was highlighted by Saif Powertech, which emerged as the top gainer of the week with a massive 39.7% price surge. Other notable gainers included National Feed Mill, SS Steel, and BD Thai Aluminium. On the losing side, Beximco Limited was the worst performer, shedding over 40% of its value, while Peoples Leasing and Regent Textile also recorded significant losses.

Shipping traffic through the Strait of Hormuz rose to its busiest in two months after a deal to halt the US-Iran war, maritime trackers said on Friday.

A total of 25 commercial vessels crossed the newly reopened strait on Thursday, the highest number since mid-April, according to data from tracking firm AXSMarine -- more than three times the average of just over seven a day since early March.

In a sign of traffic picking up in the region, empty trucks queued for up to three kilometres (two miles) outside the UAE port of Korfakkan just south of the strait, as at least four container ships unloaded there, an eyewitness told AFP.

Other ships could be seen on the hazy horizon, apparently waiting their turn to dock and unload, the eyewitness said, requesting anonymity.

The spike came after Iran and the United States agreed this week to re-open the crucial route under an agreement to end the war, but before the postponement of talks between the sides in Switzerland that had been planned for Friday under that deal.

The number of crossings on Thursday may be higher, as some ships turned off or manipulated their AIS transponder signals to avoid detection, AXSMarine said in a news release.

Iranian forces effectively closed off the strait after US and Israeli strikes sparked the war on February 28. Maritime authorities reported dozens of attacks on ships in the area.

Global shipping groups warned this week that plans to resume traffic through the strait were still not clear and it was not thought safe to start exiting the Gulf.

The Pakistani navy published an alert Friday warning that a mine had been sighted in the strait off Oman. “All vessels transiting through the area are advised to navigate with extreme caution,” it said.

Iran’s Persian Gulf Strait Authority on Friday published new rules for transits during the 60-day period covered by the war agreement.

In a post on X it said all ships seeking to cross the Strait of Hormuz should submit a transit request “48 hours in advance”.

It said it would waive payments of “tariffs” and “Iranian insurances” for ships passing during the 60 days.

International Maritime Organization (IMO) chief Arsenio Dominguez said in April that the body was working on a plan to ensure safe transit for ships out of the Gulf. More than 500 commercial vessels and about 11,000 seafarers are still stuck in the Gulf, according to the IMO. It says 20,000 seafarers in the region have been affected by the war overall.

The agreement to stop the war this week was also meant to halt fighting in Lebanon but Israel’s military on Friday announced new strikes there.

A US official later said Israel and Iran-backed militia Hezbollah in Lebanon had agreed to a ceasefire.

The closure of the strait during the war drove up global oil prices and choked off shipments of energy and crucial commodities such as fertiliser.

Following the Iran-US agreement announced on June 14, “the first sign of relief came this week with fast falling prices”, said Ipek Ozkardeskaya, a senior analyst at banking group Swissquote.

“Energy and transport sectors will be the first to feel the relief, before it spills toward the rest of the economy,” she told AFP.

But given the risk of renewed fighting in Lebanon, she added, “questions remain regarding the US ability to end the war”.

China is stepping up scrutiny over exports of indium, leading some buyers to fear the niche metal, sought after for next-generation data centres, may be added to the export control regime that has become one of Beijing's most potent trade weapons.

China produces nearly 70% of the world's indium, a byproduct of zinc refining mostly used in displays and solder but also the raw material for making indium phosphide, used to make high-speed optical chips for AI data centres.

Beijing put indium phosphide on an export control list in February 2025 and the restrictions have become enough of a hurdle for next-generation data centres that the CEO of Nvidia-backed chipmaker Coherent travelled to Beijing with President Donald Trump in May to raise the issue.

While indium metal is not on the export control list, two buyers told Reuters about growing scrutiny over their purchases from Chinese customs. For the first time this year, a European buyer was asked to disclose information about end users, including where they were based.

A major buyer in North America said approvals had gone from same day to several days, which they attributed to more scrutiny of paperwork and described as "tense". This buyer had not been asked for extra information by customs.

China's Ministry of Commerce did not immediately respond to a request for comment on a public holiday.

All the buyers declined to be named owing to the sensitivity of the topic.

The extra due diligence is not uniform and two other buyers told Reuters they had heard of extra scrutiny but not faced it themselves. So far, Reuters has not identified any shipments that have been blocked.

Nonetheless there is some concern in the small industry that this is a prelude to tighter controls or the end-user disclosures which China, and other countries with export control regimes, use to chart global supply chains and chokepoints.

Indium has been identified as a potential vulnerability for the US, whose Defense Logistics Agency earlier this year released a request for proposals to stockpile up to 403 tonnes of the material over three years.

Another North American buyer said they suspected that the reporting requirements were "a precursor to restrictions or outright bans on exports."

Nine directors of Prime Bank PLC have announced plans to acquire shares worth about Tk31 crore from a sponsor, who intends to sell just over 1 crore shares through the block market.

According to a disclosure filed with the Dhaka Stock Exchange on 14 June, Mohammad Nader Khan plans to offload 1.01 crore shares from his holdings in the bank. At the current market price, the stake is valued at approximately Tk30.84 crore, and the transaction is scheduled to be completed through the block market within the next 30 working days.

Following the disclosure, the bank's nine directors announced on Wednesday (17 June) that they would acquire the shares being sold by Nader Khan.

Among the individual directors, Nafis Sikder will purchase the largest allocation of 12 lakh shares. Azam J Chowdhury will acquire 9.90 lakh shares, while Qazi Sirajul Islam, Md Shahadat Hossain, SM Tamzid and Tanvir A Chowdhury will each purchase around 9.7 lakh shares.

Among the corporate directors, MJL Bangladesh will acquire the largest portion with 19.46 lakh shares. EC Holdings will purchase 11.60 lakh shares, while Uniglory Cycle Industries will buy 9.78 lakh shares.

This reshuffle among the sponsors and directors comes at a time when the bank is enjoying a period of significant financial growth and stability.

Prime Bank recently reported a robust financial performance for the 2025 calendar year, posting a consolidated net profit of Tk910 crore. This represents a 24% increase from the Tk732 crore recorded in the previous year, reflecting the bank's improved operational efficiency and successful lending strategies. Consequently, the bank's earnings per share (EPS) rose to Tk7.84 in 2025 from Tk6.31 a year earlier.

The bank's balance sheet remains one of the strongest in the country's banking sector, with total assets reaching Tk64,890 crore as of December 2025. Its capital adequacy is also noteworthy, with a Capital to Risk-Weighted Assets Ratio (CRAR) of 18.07%, a figure that stands as one of the highest in Bangladesh.

Additionally, the bank reported a solid net asset value per share of Tk40 and a net operating cash flow per share of Tk58.07, indicating healthy liquidity.

To reward its investors for this record performance, the bank's board approved a 30% dividend for 2025 - comprising 25% cash and 5% stock - which was officially approved by shareholders at the Annual General Meeting held on 21 May.

Oil prices rose more than 1 percent Wednesday after US President Donald Trump threatened ‌to resume bombing Iran if it didn’t “behave”, but remained near three-month lows as the International Energy Agency warned of excess supply next year.

Brent crude futures were up 93 cents, or around 1.2 percent, to $79.89 a barrel at ​1308 GMT, and US West Texas Intermediate gained 79 cents, or 1 percent, to $76.84. Both ​contracts hit their lowest since early March earlier in the session.
Trump said on Wednesday that a memorandum of understanding with Iran was not final, and that he could ​resume a bombing campaign if he did not like it or if Iran didn’t “behave”.

“(There’s) still a ​bit of uncertainty in terms of the US situation ... so it ... makes sense for oil to bounce back from these levels after staging what has been quite a sharp decline in the last few days,” said Fawad ​Razaqzada, market analyst at City Index and FOREX.com.

IEA SAYS INVENTORIES TO BE RESTOCKED IN NEXT ​FEW MONTHS

In its first look at 2027, the IEA said the oil market will enter a significant supply overhang, ‌with global supply set to surge by 8 million barrels per day and demand rising by just 2 million bpd.

In the near term, the agency said the Iran-U.S. deal should provide an opportunity to replenish depleted inventories or build new strategic reserves.

“Markets may be underpricing the depth of ​the supply glut coming ​online,” said Crispus Nyaga, research analyst at Empire FX.

The MoU, not yet public, extends by another 60 days a tenuous ceasefire agreed in April, to allow room for talks ​between the US and Iran toward a permanent truce.

Still, industry officials ​say a full return to pre-war production and refining levels is likely to take weeks, months or even years.

US crude stocks fell 8.3 million barrels in the week ended June 12, market sources said, citing American Petroleum ⁠Institute data.

This ​exceeded expectations for a draw of 4.6 million barrels, ​with official numbers due from the Energy Information Administration at 10:30 a.m. ET (1430 GMT) on Wednesday.

Bangladesh Bank says nearly Tk 11 trillion in loans from the banking sector are at risk or face some form of difficulty.

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In its “Financial Stability Report 2025” report on loan data up to last December, the central bank says risky loans account for 59.73 percent of total loans disbursed.

The amount of non-performing loans has increased since last December, now amounting to Tk 5.88 trillion.

The amount of non-performing loans has gone up by Tk 314.87 billion in the span of three months, the report said, further increasing the amount of risky loans in the sector.

According to the report, by the end of 2025, risky loans in the banking sector had increased by Tk 3.31 trillion year-on-year. In 2024, the amount of risky loans had stood at approximately Tk 7.57 trillion, an increase of around Tk 2.6 trillion year-on-year.

Bangladesh Bank considers defaulted, written off, and rescheduled loans as risky.

The loan balance in the banking sector as of last December was around Tk 18.2 trillion. Of this, corporate loans accounted for 45.85 percent, the report said. Of total loans, 31.16 percent are large loans.

As a result of the increase in risky loans, the capital adequacy ratio and risky asset ratio have dropped year-on-year in December from 3 percent to 2.64 percent.

According to the 2025 estimate, the amount of risky loans in all scheduled banks in Bangladesh has increased by about 60 percent compared to the previous year to around Tk 10.88 trillion, higher than the proposed budget for the upcoming fiscal year.

Of this, the amount of defaulted loans is Tk 5.57 trillion, the amount of written-off loans is Tk 834.79 billion, and the amount of refinanced loans is Tk 4.47 trillion.

In 2025 alone, a record amount of loans – Tk 1.71 trillion – was refinanced. In the previous year, Tk 850 billion was refinanced.

Loans of Tk 1.82 trillion, which are under bans by the High Court, cannot be shown as non-performing.

During this period, the banking sector has been able to maintain only Tk 2.49 trillion of the required reserves for loan security, also known as loan provisioning, of Tk 4.41 trillion. This means the loan provisioning deficit is Tk 1.91 trillion.

The dollar rose to Tk123.10 today (17 June) as increased import payment demand and a decline in remittance-driven dollar supply put pressure on the foreign exchange market, according to senior officials at several commercial banks.

Bankers said several banks purchased dollars from remittance houses at rates ranging between Tk123 and Tk123.10 during the day. Similar rates were also observed in the interbank market.

A senior official of a private commercial bank told The Business Standard that the rise in the dollar rate was driven by two key factors.

"Payment pressure has increased, while dollar supply has fallen due to the unrest at Islami Bank," the official said.

According to bankers, Islami Bank Bangladesh is the country's largest remittance-collecting bank and typically supplies around 80% of its remittance dollars to the market. However, remittance inflows to the bank have declined somewhat since the beginning of the month amid ongoing unrest, reducing the overall supply of dollars in the market.

At the same time, banks are facing significant payment obligations for letters of credit (LCs) opened for various government imports, creating additional demand for foreign currency.

Despite the recent increase, senior banking officials expressed optimism that the dollar rate may ease in the coming days if supply conditions improve.

Meanwhile, Bangladesh Bank today verbally instructed banks not to purchase remittance dollars at rates exceeding Tk122.75, according to banking sector sources.

Economists, however, argue that the central bank should refrain from informal interventions aimed at influencing exchange rates and instead allow market forces to determine the value of the dollar.

Since July last year, Bangladesh Bank has been purchasing dollars from commercial banks as part of its foreign exchange management strategy, a practice that continues to date.

Nearly one in every two taka lent by the 10 banks among the country's lenders is now considered a risky asset, according to a new central bank report that highlights severe systemic deterioration in the country's banking sector.

The Bangladesh Bank's Financial Stability Report, published on Tuesday (16 June), shows that risky loans at the 10 banks accounted for 47.75% of total lending at the end of December 2025, up from 42.96% in 2024. The report, however, does not identify the specific banks included in the analysis.

Speaking to TBS, experts said the trend reflects long-standing weaknesses in loan governance and recovery practices in the banking sector.

They noted that influential business groups obtained large loans from multiple banks and subsequently failed to repay them on time, contributing to a build-up of non-performing assets over time.

Banking sector insiders said that in several cases, lending rules, including single borrower exposure limits, were not properly followed, particularly in relation to large industrial groups.

They alleged that some groups created shell companies with compliant documentation to access funds, while the ultimate beneficiaries of such loans were not always clearly identified.

They further said that in many cases, both bank boards and officials were aware of the true beneficiaries but did not carry out adequate due diligence.

Bankers said that a combination of regulatory weaknesses and political influence over time allowed certain business groups to accumulate large volumes of credit across multiple banks.

They added that some of these loans later turned non-performing as repayment obligations were not met.

Former Bangladesh Bank governor Ahsan H Mansur had previously said more than Tk1 lakh crore may have been withdrawn from several private banks under the control of a major business group during the previous political administration.

He also said additional borrowing from state-owned banks by Chattogram-based S Alam Group remained largely unpaid.

The Bangladesh Bank has rejected recent media reports claiming that distressed loans in the country's banking sector account for between 45% and 60% of total loans, saying the estimates are based on technically flawed calculations and do not reflect the actual condition of the sector.

In a clarification issued today (17 June), the central bank said the reported figures were inconsistent with the methodology used in its Financial Stability Report (FSR) 2025 and should not be treated as an accurate measure of banking sector risks.

According to the report, the official non-performing loan (NPL) ratio stood at 30.60% as of 31 December 2025. Bangladesh Bank said this audited and finalised figure remains the authoritative measure of the sector's non-performing assets.

The central bank noted that some reports had calculated so-called distressed loans by combining non-performing or classified loans, rescheduled loans and written-off loans.

"It is not appropriate to aggregate these categories in this manner," the regulator said, adding that such calculations are technically incorrect and lead to exaggerated estimates of financial stress in the banking sector.

The Bangladesh Bank further said there is no internationally recognised or standardised definition of "distressed loans" used by global regulatory and policy-making institutions.

While the term is sometimes used broadly to describe loans facing repayment difficulties, the methodology applied in the reports does not conform to accepted regulatory or accounting standards, it added.

Explaining its position, the central bank said rescheduled loans should not automatically be treated as distressed assets because borrowers continue to make repayments under approved restructuring arrangements. These loans remain active assets that generate cash flow for banks.

It also noted that written-off loans are maintained off-balance sheet in line with international accounting practices and therefore should not be added to active loan portfolios when assessing the current health of the banking sector.

Bangladesh Bank warned that publishing unverified or technically inaccurate financial data could create misleading perceptions about the country's financial stability among domestic and international stakeholders, potentially affecting investor confidence and the broader economy.

The regulator urged media organisations to exercise greater caution when reporting on the financial sector and to verify data with official sources before publication.

The clarification comes amid increased public attention on the banking sector following the release of the Financial Stability Report 2025 and ongoing discussions over the scale of problem loans in the country's banks.

Bangladesh’s digital transactions grew 13 percent year-on-year in both volume and value in 2025, with the identical growth rate across both metrics pointing to a balanced and sustainable expansion of the country’s payment ecosystem.

According to Bangladesh Bank’s Payment Systems Report 2025, digital transaction volume rose from 482.7 crore in 2024 to 546.3 crore in 2025, while transaction value climbed from Tk 90.38 lakh crore to Tk 102.24 lakh crore over the same period.

The central bank said the symmetrical growth indicates that users are no longer confining digital payments to small transactions such as mobile recharges but are now using these channels for larger commitments, including utility bill payments, tuition fees, and high-value e-commerce purchases.

“Digital is no longer an experiment; it is a habit,” the report said.

BB said the 13 percent alignment between volume and value signals that digital infrastructure has become reliable enough to handle both frequency and magnitude – the hallmark of a mature transition in which digital rails are carrying not just more transactions but also greater economic weight.

Non-digital transactions recorded the sharpest growth in volume, rising 25 percent to 539.5 crore.

However, the value of transactions through these channels fell 7 percent year-on-year to Tk 209.48 lakh crore.

The report said the paradox resolves itself as people are transacting more often through non-digital channels but moving less money each time, with high-value settlements migrating to digital infrastructure.

Total transaction volume across both categories rose 19 percent to 1,085.9 crore, while total transaction value edged down 1 percent to Tk 311.72 lakh crore.

An entrepot is poised to emerge along the coast of the Bay of Bengal for duty-free trading by foreign and local entrepreneurs as the government approves building two free-trade zones near Chittagong seaport and beside Matarbari deep-sea port.

An entrepot is a trading centre, port, or warehouse where goods are imported, stored, and then re-exported to other countries. These goods are typically exempt from import and export duties.

Such trade zoning, which exists in some other countries, is first of its kind in Bangladesh, officials said after the approval given Wednesday in principle.Regional business directory

The approval was given by the Cabinet Committee on Economic Affairs (CCEA) in a meeting chaired by Finance and Planning Minister Amir Khosru Mahmud Chowdhury at Bangladesh Secretariat in the capital.

Briefing newsmen after the meeting, Cabinet Secretary Nasimul Ghani said the setting up of the free-trade zones still remained at concept stage but got the approval at the meeting. "Detailed plan, investment structure, and management method of the zones will be finalised later."

He informs that each free-trade zone will be established in 300 acres of land aiming to boost the country's economy, expand international trade, attract foreign investment, and increase port-based economic activities.

Mr Ghani notes that in the free-trade zones many customs and tax-related rules and regulations remain relaxed or absent in conducting international commercial activities where both foreign and local traders and investors can conduct business easily.

He also says ships coming from abroad will have the opportunity to unload, sell or re-export goods in these areas. At the same time, Bangladeshi entrepreneurs will also be able to easily supply products to the international market from here.Personal finance e-book

According to him, the setting up of such a zone will significantly increase the overall economic activity of the country.

The government hopes the volume of economic activity will increase, country's gross domestic product (GDP) will see a positive impact, port utilisation and shipping traffic will increase, and rapid transfer of goods and services will be possible once the free-trade zones are established.

Mr Ghani mentions that such free-trade zones are being operated in different countries, including the United Arab Emirates. "Though Dubai has limited natural resources, huge investments have come there due to the free economic zone and commercial facilities and it has developed into one of the centres of international trade. Bangladesh is also trying to create such an environment."

Both domestic and foreign investors will be able to invest in the free-trade zones. Manufacturing-oriented industries, warehousing, logistics, commercial services, and even tourism-based activities can be developed there.

Also, the cabinet committee approved in principle the formation of a special-purpose company and related development and land-lease agreements to establish a Chinese Economic and Industrial Zone (CEIZ) in Anwara Upazila of Chittagong.

This initiative will play an important role in further strengthening economic and trade relations between Bangladesh and China. "Establishment of an integrated Chinese industrial zone will make it easier for Chinese investors to invest in Bangladesh," the official says about the government view.Global economy podcast

However, he says, the amount of investment, infrastructure development and project- implementation schedule have not yet been determined.

Also, the meeting approved in principle import of urea fertiliser from Russia under direct- purchase method.

The Appellate Division's Chamber Court has stayed a High Court order that had blocked the conversion or liquidation of closed-end mutual funds, effectively clearing the legal path for the process to move forward.

With the stay now in place, trustees of the affected funds may proceed with conversion or liquidation activities, according to lawyers involved in the matter.

The order was issued today (17 June) by Justice Farah Mahbub's Chamber Court on an application filed by the Bangladesh Securities and Exchange Commission (BSEC). The court has also scheduled a hearing for June 22, when the appeal will be taken up before the full Appellate Division bench under the Chief Justice.

Meanwhile, a lawyer representing Bangladesh RACE Asset Management told The Business Standard that the company had also filed a writ petition on the issue. The matter is also scheduled to be heard on 22 June. Although it was listed for hearing today, no proceedings took place.

On 9 June, BSEC issued a fresh directive instructing trustees to move forward with the conversion or liquidation process. The order placed trustees in a difficult position, caught between the regulator's directive and the High Court's status quo order.

Later, on 11 June, the commission issued another letter directing trustees to continue the process excluding the interests of unit holders who had filed the writ petitions. However, the existing court order continued to create uncertainty among trustees.

Many feared that complying with BSEC's directive could be interpreted as a violation of the court order. As a result, the Investment Corporation of Bangladesh (ICB) sought clarification from the regulator and decided not to take any action until the legal uncertainty was resolved.

Following Wednesday's Chamber Court order, BSEC Executive Director and spokesperson Abul Kalam told TBS, "Some unit holders had obtained a status quo order from the court regarding the conversion or liquidation of closed-end mutual funds. BSEC has now secured a stay on that order. Therefore, there is no longer any obstacle for trustees to proceed with the conversion or liquidation process."

In May 2026, BSEC introduced a regulation requiring any closed-end mutual fund trading at a discount of 25% or more to its Net Asset Value (NAV) to either convert into an open-end fund or undergo liquidation.

As part of the initiative, the commission instructed trustees on 7 May to begin preparations for conversion or liquidation from 12 May onward. However, unit holder Rashidul Islam challenged the directive in the High Court, arguing that BSEC lacked the authority to alter the tenure of existing funds.

On 24 May, the High Court issued a two-month status quo order and asked the finance secretary, BSEC chairman, managing directors of the stock exchanges, ICB and other respondents to explain why the directive should not be declared unlawful.

The court also questioned whether BSEC had the authority to compel the conversion or liquidation of funds whose tenures had previously been extended through a 2018 government notification.

Currently, 22 of the 36 listed closed-end mutual funds are trading at discounts of 25% or more to their NAV, making them subject to the new regulation.

Under BSEC's proposed framework, conversion or liquidation requires approval from at least 75% of unit holders

Spain wants to finance the implementation of development projects in various sectors of Bangladesh. To that end, the European country has proposed signing a protocol agreement to strengthen mutual cooperation in the economic and financial sectors.

Under the proposed agreement, Spain would provide commercial loans, technical assistance, feasibility studies and financing for similar activities in Bangladesh, modelled on frameworks used by the Organisation for Economic Co-operation and Development (OECD).

It has proposed that Spanish companies be allowed to participate in projects financed under its credit line.

It has also requested that Spanish goods and services be given preference in those projects.

Spain recently submitted the proposal to the government, which has responded positively. Following this, the Economic Relations Division (ERD) prepared a draft agreement. Opinions are now being sought from all ministries and divisions.

A finance ministry official, speaking on condition of anonymity, said Bangladesh already has similar agreements with China, India, Japan and South Korea. Although Türkiye has also proposed such an agreement; Bangladesh has yet to consent.

The official said the arrangement could open a new financing window for Bangladesh's development projects, especially as major development partners such as the World Bank, the Asian Development Bank (ADB) and the Japan International Cooperation Agency (Jica) have recently been proposing financing at commercial interest rates.

Sources said the framework protocol has been designed to support financing in transport infrastructure, renewable energy and other energy infrastructure, information and communications technology, cybersecurity in the telecommunications sector, water and solid waste management, agri-food industries, innovation, digitalisation, education and healthcare.

Spain would also be able to finance projects in any other sector if both countries agree. Particular emphasis would be placed on small and medium-sized enterprises and projects aimed at addressing the impacts of climate change.

The official said Bangladesh has substantial financing needs in these sectors, making the agreement beneficial for both countries. Bangladesh would gain easier access to funding for economic and social development, while Spanish companies would benefit from greater internationalisation.
Infograph: TBS
Infograph: TBS

He added that Spain first proposed a similar agreement to the then Awami League government in 2024. Discussions stalled after the change of government but have now resumed following the proposal's resubmission to the new administration.

The draft agreement also calls for the establishment of a bilateral working group, which would meet annually or at the request of either signatory. Experts from both countries would be able to participate in the meetings.

Under the agreement, loan proceeds could not be used by Bangladesh to pay customs duties, taxes or other levies on goods and services related to projects. The loans would be sovereign-guaranteed, with both parties remaining subject to their respective national laws.

Both countries would also reaffirm their commitment to combating corruption. In particular, no third party could be directly or indirectly involved in international transactions under the agreement. If evidence of corruption, misconduct or unlawful benefit is found, the Spanish government would have the authority to suspend financing, withdraw funding or demand early repayment of loans.

A former finance secretary said that while the tied-loan nature of the arrangement would create some dependence on Spanish products, it would also help Bangladesh strengthen its capabilities in areas such as advanced European technology and cybersecurity.

He, however, cautioned that Bangladesh would need to be careful during project selection and negotiations to ensure that interest rates and conditions do not place undue pressure on the country's macroeconomic stability.

According to data from the Export Promotion Bureau (EPB), Bangladesh exported goods worth $2.84 billion to Spain during the first nine months (July-March) of FY2025-26. Major exports included knitwear, woven garments, home textiles and leather products.

Meanwhile, Bangladesh Bank data show that Bangladeshi businesses and investors imported goods worth $147 million from Spain during FY2024-25. Major imports included capital machinery, olive oil, chemicals and industrial raw materials.

In one of its publications, the Dhaka Chamber of Commerce and Industry stated that Spanish public and private sector investments abroad amount to approximately $50 billion. Of that amount, only $8.35 million in foreign direct investment came to Bangladesh between 2001 and June 2024, a very small share of Spain's global investment outflows.

In 2021, a Bangladeshi delegation led by then railways minister Nurul Islam Sujan visited Spain at the invitation of the country's minister for transport, mobility and urban agenda. During the visit, Nurul Islam Sujan held a meeting with Spanish Transport Minister Raquel Sánchez Jiménez, who expressed interest in investing in Bangladesh Railways.

Bangladesh has taken a landmark step toward reshaping its trade landscape, with the Cabinet Committee on Economic Affairs (CCEA) approving the establishment of the country's first-ever Free Trade Zone (FTZ) in Anowara, Chattogram.

The Cabinet Committee on Economic Affairs (CCEA), chaired by Finance Minister Amir Khosru Mahmud Chowdhury, today (17 June) approved such a milestone proposal to establish the country's first Free Trade Zone (FTZ) aimed at boosting trade, investment, and export capacity.

The government hopes the initiative will position Bangladesh as a key player in international trade, supply chain management, and regional logistics. Aimed at boosting trade, investment, and export capacity, the Bangladesh Economic Zones Authority (Beza) has been working for years toward establishing a modern free trade zone in line with international standards.

The establishment of Bangladesh's first Free Trade Zone is being regarded as a landmark step toward the country's economic transformation, enhanced global trade connectivity, and improved regional competitiveness. It is expected to position Bangladesh as a key trade and logistics hub in South and Southeast Asia, according to the press release issued by CCEA.

To that end, a high-level committee comprising ten relevant agencies including the Ministry of Commerce, Ministry of Industries, Finance Division, National Board of Revenue (NBR), and the Ministry of Shipping conducted a comprehensive review of FTZ management systems, laws, policies, incentive frameworks, and operational models from countries around the world, culminating in a detailed report, said the press release.

Based on the committee's recommendations, the Anwara area along the banks of the Karnaphuli river in Chattogram was selected as the most suitable location for the country's first FTZ, taking into account its infrastructure advantages, international trade connectivity, logistics capacity, and potential for future expansion.

The proposed FTZ is expected to open new horizons in international trade and supply chain management for Bangladesh. It is also anticipated to play a significant role in attracting foreign investment, diversifying exports, developing an international logistics hub, and generating employment.

Notably, the establishment of the FTZ had earlier received approval at the 9th meeting of Beza's Governing Board on January 26, 2026.

Reform of the necessary laws and policies is already underway as Beza is currently reviewing and updating a range of legislation, including the Bangladesh Economic Zones Authority Act 2010, Customs Act 2023, Warehouse Licensing Rules 2024, Import Policy Order 2021–2024, Export Policy Order 2024–2027, Foreign Exchange Management Guidelines, National Industrial Policy 2022, and the National Logistics Policy 2024, according to the press release.

Beza believes the FTZ will open new horizons in international trade and supply chain management for Bangladesh, while also attracting foreign investment, diversifying exports, developing an international logistics hub, and generating employment.

It also hoped that the establishment of Bangladesh's first FTZ would be a transformative milestone for the country's economic development, global trade integration, and regional competitiveness helping cement Bangladesh's position as a vital trade and logistics hub in South and Southeast Asia.

Bida and Beza Executive Chairman Ashik Chowdhury said Bangladesh is at the right moment to transition to a free trade zone model.

"The country's growing logistics capacity has created an opportunity to position Bangladesh as a regional warehouse and commercial hub," he said.

He added that exports are being treated as a primary driver of the economy, making the FTZ a natural next step. "This model has been successfully implemented in Dubai, China, and across Southeast Asia — Bangladesh wants to follow that path," he said.

Chowdhury also noted that some budget amendments and changes to the Import Policy Order have already been made in preparation for the FTZ, though further revisions to several laws and regulations remain necessary.

Bangladesh is planning to establish its first free trade zones (FTZs), with the government positioning the initiative as a transformative trade strategy that could slash export lead times, attract foreign suppliers and turn the country into a regional logistics hub.

The Cabinet Committee on Economic Affairs yesterday gave in-principle approval to the establishment of FTZs near the Matarbari deep-sea port in Cox’s Bazar and in Anwara, near Chattogram Port, Cabinet Secretary Md Nasimul Gani said.

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According to officials familiar with the matter, the zones will cover around 600 acres. Development of the Anwara zone is expected to begin this year. The Matarbari FTZ is slated for 2030–2033, alongside expansion of the deep-sea port.

Gani said the FTZs are expected to facilitate trade, logistics and manufacturing, attract investment and strengthen Bangladesh’s position as a regional trade hub. He added that the initiative was part of a long-term policy effort.

“This is the most successful (trade zone) model yet,” said Ashik Chowdhury, executive chairman of the Bangladesh Investment Development Authority (Bida). “Nearly 37 percent of Dubai’s trade comes from FTZs. Given our country’s geopolitical position, it has become critical for us.”

Unlike conventional economic zones or export processing zones (EPZs), the proposed FTZs will allow both local and foreign investors to engage in a broader range of trading, logistics and manufacturing activities.

Chowdhury described the FTZ as an “EPZ++” -- a more advanced evolution of the EPZ model introduced in the 1980s. “Global trade has evolved a lot since then. Under the current global trade structure, FTZs give you a very different proposition,” he said, adding that EPZs would continue to operate alongside the new zones.

The core proposition of the FTZ model is that the zones will function outside Bangladesh’s customs territory. Investors can import raw materials and machinery duty-free, undertake value addition and re-export finished goods. Products may also enter the domestic market upon payment of applicable duties.

“You have to think of it as not part of Bangladesh. It is an overseas system,” Chowdhury said.

Warehousing is expected to be the primary revenue driver. Foreign suppliers will be able to stock raw materials inside the zones and supply both Bangladeshi exporters and buyers across the region on demand. Under the current system, importers pay duties upfront and seek refunds later, a process long criticised as cumbersome.

“If we have raw materials in a warehouse near to us, it will reduce lead times for our exports,” Chowdhury said. “We can also start tapping exporters from neighbouring countries. The ambition is that big suppliers can use our zones as a secondary location to supply materials across the region.”

The model follows the blueprint of globally successful hubs including Dubai’s Jebel Ali Free Zone, and mirrors systems already in place in Vietnam and Thailand -- countries Chowdhury acknowledged as competitors Bangladesh has been slow to match. “We are a bit late on this,” he said.

The initiative follows recommendations by a Bangladesh Economic Zones Authority (Beza) committee that reviewed international FTZ models. Officials expect the zones to attract light manufacturing, logistics operators, warehousing businesses, regional distribution centres and multinational firms seeking supply-chain bases in South Asia.

Moinul Islam, former economics professor at the University of Chittagong, said the proposal had been under discussion for over two decades. “The FTZs would not only attract fresh investment but also create a platform where suppliers and agents of industrial raw materials could stock and trade their products closer to export-oriented manufacturers.”

Economists view the Matarbari FTZ as potentially the more transformative of the two. As Bangladesh’s first deep-sea port capable of handling large-draft vessels, Matarbari is expected to cut shipping costs, shorten transit times and improve connectivity with global shipping routes.

“These are exactly the factors multinational investors consider when selecting production and distribution locations,” said M Masrur Reaz, chairman and CEO of Policy Exchange Bangladesh.

He added that the Anwara site’s proximity to Chattogram port, the Karnaphuli Tunnel, Shah Amanat International Airport and three existing EPZs made it an equally strong draw for foreign investors.

Business leaders have also welcomed the move as an opportunity to diversify investment beyond garments.

Mohammed Amirul Haque, president of the Chittagong Chamber of Commerce and Industry, said the zones could attract electronics, light engineering, consumer goods, packaging and regional distribution operations.

However, he cautioned that infrastructure must keep pace, calling for an urgent upgrade of the Dhaka-Chattogram highway from four to ten lanes.

Bida’s Chowdhury said the government was working to amend seven provisions of law and regulation to operationalise the zones. “We will try to start one of the zones by next year. It will depend on how fast we can change the laws.”

Public investment and policy support for the agriculture sector have increased over the years, but the benefits of budgetary allocations have yet to adequately reach smallholder and marginal farmers, experts said today.

At a discussion, experts discussed how proposed budget allocations, policy priorities, and strategic interventions for fiscal year 2026-27 can be translated into tangible benefits for farmers and contribute to the long-term transformation of the agriculture sector..

The observations came at a roundtable, titled "National Budget FY2026-27: Strategic Discussion on Crop Agriculture", jointly organised by LightCastle Partners and the Sustainable Agriculture Foundation (SAF) Bangladesh, at a hotel in Dhaka.

Bangladesh's crop agriculture sector remains crucial for ensuring food security, supporting rural livelihoods, driving agro-industrial growth, and generating export earnings. Between 1999 and 2019, the value of agricultural production grew at an average annual rate of 3.54 percent.

However, the sector continues to grapple with climate vulnerability, increasing dependence on agricultural inputs, and inefficiencies in post-harvest management.

Farmers continue to face mounting challenges, including rising input costs, post-harvest losses, climate-related risks, limited market access, and weak implementation of development programmes, the experts said.

Agriculture's contribution to Bangladesh's gross domestic product (GDP) has declined from nearly 38 percent in the 1970s to 11.2 percent at present.

At today's event, Zeeshan Abedin, social research and impact adviser at LightCastle Partners, presented a keynote analysis of the proposed agriculture budget.

According to the presentation, the proposed FY2026-27 budget allocates Tk 28,881 crore to the Ministry of Agriculture, including Tk 7,946 crore for development expenditure, up from Tk 27,224 crore in the original FY2025-26 budget.

The budget also proposes Tk 17,001 crore for agricultural subsidies, including fertiliser support and related activities.

The presentation highlighted that agriculture's allocation under the development budget has doubled to Tk 7,945 crore. However, the proposed subsidy allocation has declined by 1.4 percent, while support for industry players has shifted towards input tax reductions.

A notable feature of the proposed FY2026-27 budget is its greater emphasis on water management and irrigation, post-harvest management, and agricultural assistance through the Farmer Card programme.

However, concerns were raised over the utilisation of allocated funds. While Annual Development Programme (ADP) implementation reached 93 percent in FY2022-23 and 95 percent in FY2023-24, the rates fell to 60 percent in FY2024-25 and 62 percent in FY2025-26.

MA Sattar Mandal, emeritus professor at Bangladesh Agricultural University in Mymensingh and professorial fellow at the Bangladesh Institute of Development Studies, moderated the session.

Zahedul Amin, co-founder and managing director of LightCastle Partners; Md Farhad Zamil, executive director of SAF Bangladesh; Anwar Faruque, board director of Bangladesh Krishi Bank and former secretary of the Ministry of Agriculture; and Md Habibullah, director of the Administration and Finance Wing of the Department of Agricultural Extension, also spoke at the event.
FARMERS

Foreign Minister Khalilur Rahman today (17 June) said the reciprocal tariff agreement with the United States will help attract foreign investment, strengthen energy security, and further reinforce Bangladesh's position in global supply chains.

He told parliament this while responding to a question from Gazipur-5 MP AKM Fazlul Haque Milon, who asked whether diplomatic efforts had been intensified to attract new export markets and international investment.

In his reply, the foreign minister highlighted various trade agreements with different countries, expanded business engagement initiatives, and the organisation of international business conferences as part of the government's efforts.

Khalilur Rahman said through the recently signed Agreement on Reciprocal Trade (ART) with the United States, Bangladesh had secured duty-free access for ready-made garments produced using American cotton.

He expressed hope that the agreement would play a positive role in attracting foreign investment, strengthening energy security, and enhancing Bangladesh's position within global supply chains.

The then interim government signed the agreement with the United States on 9 February, three days before the national parliamentary election.

According to business leaders and experts, the agreement creates obligations for Bangladesh to import various products from the United States, including cotton, energy products, soybeans, wheat and aircraft.

Diversification key to Bangladesh's foreign policy

Meanwhile, responding to another question from Netrakona-3 MP Rafiqul Islam Hilaly today, Khalilur Rahman told parliament that Bangladesh's foreign policy prioritises the diversification of diplomatic relations and the maintenance of strategic balance.

He said Bangladesh is strengthening ties with traditional partners such as the US, EU, UK, Japan, South Korea, China, Middle Eastern countries, Canada and Australia, while expanding cooperation with emerging economies in Asean, East and Central Asia, Africa and Latin America.

He said global shifts, including conflicts, trade realignment, energy and food security concerns, technological competition, climate change and migration, are reshaping international relations, requiring a flexible and interest-driven foreign policy.

The minister emphasized Bangladesh's approach is guided by mutual respect, sovereignty, non-interference and cooperation, aligned with national interest and the "Bangladesh First" vision.

On regional relations, he said Bangladesh is pursuing constructive engagement with India on unresolved issues such as water sharing, border management, connectivity, energy cooperation and trade barriers. Efforts are also ongoing with Myanmar, particularly on resolving the Rohingya crisis.

The minister added that Bangladesh is working to revitalise Saarc and strengthen Bimstec to enhance regional cooperation.

The government is also expanding partnerships in emerging sectors including AI, digital economy, semiconductors, renewable energy, R&D and the blue economy, while identifying new export markets in the Middle East, Africa, East and Central Asia and Latin America, Khalilur said.

"Labour market diversification is also a priority, with efforts to expand skilled worker migration beyond traditional Middle Eastern and European destinations to Japan, South Korea, South America and Eastern Europe," he added.

The central bank yesterday issued a clarification saying that non-performing loans (NPLs) in the banking sector stood at 30.60 percent at the end of last year.

The Bangladesh Bank (BB) statement came after several media outlets reported that distressed loans in the banking sector ranged between 45 percent and 60 percent at the end of 2025. Those reports were based on the Financial Stability Report 2025 recently published by the BB.

The central bank said media outlets had made their “own calculations” in arriving at those higher figures.

It added that there is no universally accepted definition of distressed loans among international banking policy-making organisations.

According to the BB, loans that do not generate income or where borrowers fail to pay instalments are generally treated as distressed. However, it said rescheduled loans that remain unclassified should not be included in that category, as borrowers continue to make repayments under revised terms.

The central bank also said written-off loans should not be counted as distressed loans, as they are no longer part of a bank’s balance sheet under international best practice.

The BB said that, based on its definition, NPLs in the banking sector stood at 30.60 percent as of 2025.

It mentioned that including rescheduled loans, written-off loans and other categories alongside classified loans could create a misleading picture of the banking sector. Such reporting could send an incorrect message both at home and abroad.

It urged media outlets to report on the issue responsibly, with due regard to objectivity, sensitivity and national interest.

Britain’s annual inflation rate was unchanged at 2.8 percent in May as higher petrol prices caused by the US-Iran war were offset by lower food costs, official data showed Wednesday.

The Consumer Prices Index level matched April’s reading, the Office for National Statistics (ONS) said, while an analysts’ consensus forecast had been for an increase to 3.0 percent.

“While the war in the Middle East pushes prices up globally, we have got the right economic plan and inflation has held steady,” finance minister Rachel Reeves said in response.

Even though the United States and Iran agreed this week to a deal to end the conflict, inflation could still rise in the coming months with energy costs remaining above pre-war levels.

The better-than-expected inflation data for May could meanwhile prove fruitless for the Labour government, which is facing a special vote Thursday expected to set in motion an attempt to oust Keir Starmer as prime minister.

Longtime Starmer critic Andy Burnham is hoping to win an election for a parliament seat in northwest England so that he can run for the Labour leadership, and the premiership.

The inflation data also comes before an interest rate decision by the Bank of England, which is expected to hold borrowing costs steady Thursday after energy prices tumbled in recent days thanks to the US-Iran deal.