The International Monetary Fund (IMF) has asked the National Board of Revenue (NBR) how it plans to achieve its Tk6.04 lakh crore revenue target for the fiscal 2026-27, which is about 45% higher than the FY26 collection.

The IMF mission also sought details of the tax and fiscal measures introduced in the latest national budget during a meeting with senior NBR officials at the revenue authority's headquarters in Dhaka today (13 July), according to sources who attended the meeting.

On the same day, the IMF delegation led by Ivo Krznar, the mission chief for Bangladesh and Hong Kong, also met Finance Minister Amir Khosru Mahmud Chowdhury.

The IMF representatives arrived on Sunday for a five-day fact-finding mission to assess the feasibility of a fresh loan package worth nearly $4.5 billion proposed by the government.

The finance minister told journalists after the meeting that the IMF delegation had expressed appreciation for the government's financial reforms and its political commitment.

He said the government had clarified the principles on which its new programme with the IMF would be based, and that the IMF had fully agreed with the proposed framework.

"Major changes cannot be made overnight, and the IMF has agreed with this approach," the finance minister said, adding that reforms would be introduced in phases while taking into account the country's economic conditions and maintaining the continuity of the reform programme.

An NBR senior official, who attended the meeting and spoke to The Business Standard on condition of anonymity, said, "The representatives wanted to know how the revenue target for the new fiscal year would be achieved and what plans have been put in place to meet that goal.

"They also wanted to know what changes had been made in the latest budget. We briefed them on those changes."

He further said, "The mission also sought detailed explanations about the 0.20% tax imposed under the Finance Bill on the value of goods purchased by retailers, which will be collected at the dealer level."

NBR officials also told the IMF that a newly elected political government could not immediately withdraw all expenditure-related measures or tax incentives.

The official said, "The delegation were also informed that tax exemptions granted to various sectors are subject to sunset clauses. These cannot be withdrawn before their expiry, and a political government cannot simply abolish all exemptions whenever it wishes."

IMF 'satisfied' with revenue collection progress

According to the finance ministry, the IMF delegation expressed satisfaction with the growth in revenue collection during the first four months since the BNP-led government assumed office.

"The IMF delegation expressed satisfaction with the visible progress made during the current government's first four months in financial sector reforms, the development of the stock and capital markets, and revenue collection," Finance Minister Amir Khosru said.

The ministry said the IMF described the rise in tax collection over the four-month period as a significant achievement. It also held positive discussions with the government on proposals to further increase Bangladesh's tax-to-GDP ratio while maintaining the current momentum in revenue collection.

Khosru reiterated that reforms would be implemented gradually, based on priorities and in line with the country's overall economic conditions, adding that the IMF had endorsed this phased approach.

He said the IMF had also shown respect for the responsibilities and public welfare obligations of an elected government, adding that economic decisions would continue to be made with the public's interests in mind.

On subsidies, Khosru said no detailed discussions had yet been held on specific conditions or measures. The talks focused primarily on establishing the framework for a new IMF programme, while detailed issues would be discussed at a later stage.

He said the discussions were part of an ongoing process, with the next round of talks expected during the World Bank's annual meetings in September or October.

The finance minister added that the IMF was satisfied with the current government's reform-oriented performance and that a new programme would be finalised on that basis.

Bangladesh has retained its position as the world's second-largest apparel exporter, but its export growth slowed sharply in 2025, trailing almost all of its major Asian competitors as rivals gained ground in the global market.

According to World Trade Organization (WTO) data released recently, Bangladesh exported $38.82 billion worth of garments in 2025, up just 0.89% from $38.48 billion a year earlier.

The slight increase was well below the 4.46% growth recorded by the global apparel market, reflecting that Bangladesh is losing momentum even as worldwide demand recovers.

Only China, Türkiye and the United States posted declines among the major exporters.

Vietnam, Bangladesh's closest competitor, recorded 10.53% growth to $37.51 billion, narrowing the gap between the two countries to just $1.31 billion. Cambodia registered the fastest expansion among leading exporters at 16.88%, while Pakistan grew 6.83%, Indonesia 5.79%, and India 5.47%.

Fazlul Haque, former president of the Bangladesh Knitwear Manufacturers and Exporters Association, said the slowdown in Bangladesh's export growth was the main concern as competing countries were outperforming it in the global market.

"China and Vietnam pursued aggressive marketing over the past year, particularly after Trump imposed tariffs and Bangladesh could not match that effort. As a result, we have fallen behind in this challenging market, while our competitors have moved ahead," he said.

He warned that unless Bangladesh regains its lost ground quickly, the decline in market share could become permanent. "If buyers who once sourced 50% of their orders from Bangladesh cut that to 45% and shift the rest elsewhere, it may be difficult to win them back. We need to act now and take prompt measures to regain our lost position."

Bangladesh retains 2nd positon

Despite the sluggish performance, Bangladesh maintained a 6.76% share of global apparel exports, behind only China, which accounted for 27.35% of the market.

However, Bangladesh's market share slipped from 7% in 2024, while Vietnam's rose from 6.17% to 6.53%, bringing it closer than ever to overtaking Bangladesh.

Exporters said Bangladesh is struggling to capture new orders at a time when many competing manufacturing hubs are expanding rapidly.

The country's apparel industry has faced a series of challenges in recent years, including persistent energy shortages, elevated borrowing costs, political uncertainty and weaker investment in manufacturing capacity. Industry leaders have also repeatedly warned that gas shortages and rising production costs are eroding Bangladesh's competitiveness.

China, the world's largest exporter, continued to lose market share as exports fell 4.92% to $157.11 billion in 2025. Since 2021, China's share of global apparel exports has dropped from 31.71% to 27.35%.

Much of the business shifting away from China appears to be benefiting other Asian producers. Vietnam, Cambodia and Pakistan all outpaced global growth, while Bangladesh's expansion remained largely stagnant.

Bangladesh's export performance has also become increasingly volatile. After surging 27.64% in 2022 as global demand rebounded following the pandemic, exports fell 21.49% in 2023 before recovering 7.23% in 2024. The slowdown to less than 1% growth in 2025 suggests the recovery has lost momentum.

India rejected a quick trade agreement with the US in recent talks and is holding out for a better deal as Prime Minister Narendra Modi draws confidence from new trading partners, eased economic risks and political gains at home, officials and analysts said.

After months of talks, the two nations failed to finalise an interim trade agreement during US Trade Representative Jamieson Greer's visit to New Delhi last month, despite expectations from both sides that a limited deal was within reach.

There was no consensus because Washington did not offer assurances on New Delhi's key demands: a tariff advantage over competitors such as China and no new US levies after the deal, said an Indian government official aware of the talks.

"Our position is clear - we don't intend to rush into a deal that is not on favourable terms or compromise on red lines like ceding ground on agriculture," the official said.

Washington had hoped for quick trade concessions from a strategic partner as President Donald Trump prepares new tariffs likely to come into effect later this month, officials and analysts said, while India's holdout risks higher levies on its exports and prolonged uncertainty for businesses.

A day after talks with Greer, Indian Trade Minister Piyush Goyal said the US deal would not be implemented unless an advantage is ensured, indicating New Delhi's hardened position and lack of urgency despite the risk of higher tariffs.

Like most countries, the bulk of goods from India currently face a 10% US tariff. But the Trump administration is expected to introduce steeper tariffs later this month through probes into excess industrial capacity. India has denied US charges of surplus capacity.

Washington has already proposed new tariffs of up to 12.5% on dozens of nations, including India, over allegations they failed to curb trade in goods made with forced labour.

The US view has been that India needs to earn the preferential treatment on trade provisions it has sought by making its own concessions, a US source aware of the talks said.

The Indian official and the US source did not wish to be named as negotiations are confidential. The Indian trade ministry and the Office of the United States Trade Representative did not respond to emailed requests for comment.

A US official, speaking on condition of anonymity, said Washington remained engaged with India and still expected an agreement, but did not offer a timeline.

The official however added India had at times been slow, bureaucratic and difficult in the negotiations, signalling that no quick deal was likely.

Asked about the impasse, White House spokesman Kush Desai said: "The Trump administration continues to productively engage with Indian officials to finalise a historic trade deal that puts Americans and America First."

India's exports tick up, economic risks ease

Rising exports, new trade deals with other countries and blocs and eased economic risks have strengthened India's hand, trade analysts said.

In April-June, India's overall goods exports rose about 15% from a year earlier despite disruptions from the war on Iran, buoyed by pricier petroleum shipments, officials said.

Exports to Gulf countries have recovered to pre-war levels, rising to $5.3 billion in May from $2.62 billion in March as traders shifted to alternative shipping routes, while exports to the United States edged up to $17.29 billion during April and May.

India is also broadening access to other developed markets, with a UK free trade pact set to take effect this month, and an EU agreement expected by early next year.

"Indian negotiators have gained some leverage in the talks, given its strong economy, diversification initiatives with other partners, and its strategic standing in the world," said Wendy Cutler, senior vice president at the Washington-based Asia Society Policy Institute, and a former US trade official.

The interim US-Iran peace deal improved India's economic outlook by easing oil prices, Goldman Sachs economist Santanu Sengupta said in a report.

The bank has raised its 2026 growth forecast for India to 6.8%, and lowered its inflation and current-account deficit estimates, suggesting New Delhi has more economic room to hold out for better terms.

A weaker rupee has also improved exporters' competitiveness.

Waiting out Washington

India is also calculating that some US trade measures could face legal or political setbacks, another Indian official said.

A group of 22 Democratic state attorneys general have already filed objections to the Trump administration's proposed tariffs from probes into forced labour.

Trade analysts said legal uncertainty over US tariffs, combined with Modi's recent state election victories, have helped India resist a rushed deal.

Senior leaders of Modi's Bharatiya Janata Party have argued publicly that trade agreements should protect Indian farmers and small businesses, two politically influential constituencies that New Delhi has long shielded in trade negotiations.

"India realises that delaying - or even abandoning - a rushed deal may be more prudent than locking into obligations whose costs could far exceed any temporary tariff relief," said Ajay Srivastava, founder of the Global Trade Research Initiative, and a former trade negotiator.

China’s economy likely slowed in the second quarter after a solid start to the year. Weak domestic demand offset the boost from resilient exports during a global oil shock, fueling expectations for fresh policy stimulus.

Beijing is grappling with a deepening supply-demand imbalance. Strong industrial output, buoyed by AI-driven exports, contrasts with weakening consumption and private investment amid a prolonged property downturn and volatile global oil prices.

Gross domestic product is forecast to have grown 4.5 percent year-on-year in April-June, cooling from 5.0 percent in the first quarter, a Reuters poll of 54 economists showed.

The projected pace would mark a fall from the 4.7 percent growth forecast in a Reuters poll in April. It would be at the lower end of the official full-year target of 4.5-5 percent.

Growth has become more uneven. Exports continue to support headline activity, but domestic demand has softened notably, analysts at Goldman Sachs said in a note.

Moreover, the boost from exports has not translated into a stronger labour market or meaningful profit improvement. This limits the pass-through from external demand to domestic growth.

China’s exports, due for release on Tuesday, likely grew at a slightly slower but still-solid pace in June. Firms accelerated shipments to the US ahead of potential new tariffs.

They also rode the AI boom. Additionally, companies competed aggressively on prices to win over cost-conscious consumers.

Investors are closely watching an expected late-July Politburo meeting for clues on fresh stimulus. This could shape policy for the rest of the year.

Analysts expect no aggressive action unless growth slows more sharply. This is given resilient exports and Beijing’s focus on curbing excess factory capacity to fight deflation.

GDP growth is projected to edge up to 4.6 percent in the third quarter. It is then expected to slow to 4.5 percent in the fourth, according to the poll.

For 2026 as a whole, China’s GDP growth is forecast to cool to 4.6 percent from 5.0 percent last year. It is projected to ease further to 4.4 percent in 2027.

On a quarterly basis, the economy is forecast to have expanded 0.9 percent in the second quarter. This marks a slowdown from 1.3 percent in January-March.

The government is due to release second-quarter GDP data on July 15. June retail sales, industrial production and investment data will come out at 0200 GMT.

Analysts expect China to lean on fiscal policy to cushion any further slowdown. The central bank has limited room for high-profile easing even after the retreat in oil prices.

The government is expected to speed up fiscal spending after a second-quarter slowdown. This followed front-loaded support early in the year.

Beijing has set a budget deficit of around 4 percent of GDP for 2026. It has also lined up heavy bond issuance to shore up growth.

China’s growth should pick up over the second half of this year as fiscal support ramps up, Capital Economics said in a note.

But domestic overcapacity will remain entrenched. This leaves China’s economy reliant on exports for growth.

Analysts polled by Reuters expect the central bank to keep its key policy rate unchanged for the rest of 2026. The seven-day reverse repo rate will remain steady.

They also expect the weighted average reserve requirement ratio to remain steady in the third quarter. A possible 20-basis-point cut is expected in the fourth.

The central bank has left policy rates and RRR unchanged since May 2025. It opted instead to use short-term liquidity operations to keep funding conditions supportive.

This comes while overhauling its monetary policy framework and strengthening policy transmission. Analysts estimate a 1.2 percent rise in consumer prices for this year.

This is below the government’s target of around 2 percent. Inflation is expected to steady at 1.2 percent in 2027.

Iranian oil supplies at sea are rising after Tehran ramped up exports during the interim peace deal with the US. However, sales have been slow.

China’s independent refiners have turned to cheaper crude from Iraq, the UAE and Qatar. The return of US sanctions this week risks leaving Tehran with more cargoes searching for buyers just as shipments arrive in Asia.

Independent Chinese refiners based in the eastern oil hub of Shandong, known as teapots, bought 16 million to 20.5 million barrels of crude from Qatar, Iraq and the United Arab Emirates in recent weeks, traders said.

This marked their largest purchases of non-sanctioned Middle Eastern oil since the conflict began. Shandong teapots account for the bulk of China’s purchases of Iranian crude. State refiners have largely avoided direct imports since 2018.

Separately, privately owned refiner Shenghong Petrochemical bought 12 million barrels of Iraqi, Abu Dhabi and Saudi crude. The wave of non-Iranian cargoes displaced demand for Iranian barrels as rival Middle Eastern producers rushed to resume exports.

This followed the reopening of the Strait of Hormuz in late June. The rush of non-Iranian shipments was sold on a delivered basis by European traders such as Mercuria and Vitol.

State majors including PetroChina International and Zhenhua Oil, and Gulf producer Abu Dhabi National Oil Company also took part. The sales were done at discounts of $5 to $8 a barrel to ICE Brent.

These deliveries are scheduled for August to September. Discounts for Iranian Light crude, however, were little changed at $2 to $3 a barrel to ICE Brent, according to several traders active in dealing with teapots.

This prompted two traders to describe the sellers as slow and stubborn. Ironically, Iranian oil becomes the most expensive, a senior trader remarked.

Traders said the week of funeral events that ended in the burial of the slain Supreme Leader also slowed sales. Offices were closed during the mourning period.

Traffic through the vital waterway has slowed again this week after tit-for-tat attacks between the US and Iran. Between June 15 and July 6, about 30 million barrels of Iranian oil were loaded.

This volume is equivalent to 1.35 million barrels per day, according to tanker tracker Vortexa Analytics. Kpler recorded an estimated 34.5 million barrels of Iranian crude transiting the Strait of Hormuz on 21 tankers. This transit occurred from June 14 through July 10. An estimated 60.7 million barrels, averaging 2.17 million barrels per day, were exported in February 2026.

This was an increase of 20 percent from January 2026, according to analysis from US advocacy group United Against Nuclear Iran. That number dropped to 35.7 million barrels in March, averaging 1.136 million barrels per day.

Since the ceasefire deal announced June 14, 52 tankers have sailed with Iranian oil and petrochemicals products. They carried approximately 62 million barrels of Iranian crude oil and products, UANI analysis showed.

Of those vessels, 15 have reached the Singapore Strait. They are bound for the Eastern Outer Port Limits anchorage around Malaysia’s Johor area, according to UANI analysis.

Three Iranian-flagged very large crude carriers have already discharged their cargoes. Tehran shipped out no less than 10 million barrels of crude oil and fuel oil overnight, TankerTrackers.com said in a post.

They did this anticipating a possible imminent resumption of the US navy blockade. The US Central Command did not immediately respond to a request for comment.

Traders expect Iranian oil sales to pick up next week. Independent refiners are expecting $4 to $5 discounts for August to September arriving cargoes.

China’s Iranian oil imports so far this month came at 556,000 bpd, Kpler data showed. This marks the lowest level recorded since January 2023.

The Dhaka Stock Exchange (DSE) has suspended trading in the shares of two listed companies— Daffodil Computers and Usmania Glass Sheet Factory—after detecting abnormal price and volume spikes.

In separate disclosures issued at 10:56am, the bourse said trading in both stocks would remain suspended for the rest of the trading session due to unusual increases in share prices and trading volumes.

According to the DSE, shares trading halt for Usmania Glass for second time as it had faced trading halt on 9 June, and resume on the next trading session.

Daffodil Computers' share price jumped 16% to Tk170.6 between 28 June and 9 July. The stock later fell to Tk160.8 on Sunday before rebounding to Tk163.8 on Monday prior to the trading suspension.

Meanwhile, Usmania Glass Sheet Factory's shares price surged abnormally in recent trading sessions, the DSE data showed. Its share price climbed from Tk37.3 on 22 June to Tk70.2 on 9 July.

After the earlier trading suspension, the stock slipped to Tk67.5 on 12 July but surged again yesterday to Tk74.2 each, making significant surge in a single trading session.

Due to this price surge, the premier bourse halted the company's trading.

Previously, DSE halted share trading Meghna PET Industries, Zeal Bangla Sugar Mills due to abnormal share price jumps.

Bourse officials told TBS that such trading halts are part of the exchange's efforts to curb market manipulation and protect investors from unusual price movements.

The government has set a target of converting at least 30% of vehicles used in Bangladesh's road transport sector into electric vehicles (EVs) by 2030 as part of its efforts to reduce carbon emissions and promote sustainable transport.

Road Transport and Bridges MInister Shaikh Rabiul Alam disclosed the plan in parliament today (13 July) while responding to an urgent public importance notice raised by ruling party lawmaker Shawkat Ara Akter from the reserved women's seat-33.

He said the government is implementing a range of policy measures to shift public transport to environmentally friendly fuels, reduce greenhouse gas emissions and build a sustainable transport system.

The minister noted that greenhouse gas emissions from vehicles, particularly carbon dioxide, are a major contributor to global warming, making the transition from fossil fuel-powered vehicles to EVs increasingly important.

Under Bangladesh's Nationally Determined Contributions (NDCs), the country has pledged to unconditionally reduce carbon dioxide emissions from the transport sector by 3.4 million tonnes by 2030. The 30% EV conversion target forms part of that commitment, he said.

To support the transition, the Road Transport and Highways Division has already formulated policies governing the registration and operation of electric vehicles.

The government has also approved duty-free imports of fully electric buses for educational institutions, while imports of such buses for other uses will be subject to a reduced 15% duty to encourage wider adoption.

Addressing demands raised by lawmakers, Robiul said bridge tolls are a revenue matter under the Finance Division, meaning the Ministry of Road Transport and Bridges cannot unilaterally waive tolls.

He added that toll concessions for smaller bridges could be considered through policy decisions in consultation with the Finance Division, but toll collection cannot be suspended solely based on requests or recommendations from individual lawmakers.

On calls to increase stoppages of intercity trains, the minister said existing policies are designed to preserve the fast-service nature of intercity rail.

Allowing trains to stop at every location would undermine their efficiency and defeat the purpose of rapid travel, he added.

Aamra Technologies Limited has recommended a 0.25% cash dividend for general shareholders for the fiscal year ended 30 June 2025, despite reporting a sharp decline in financial performance.

According to a price-sensitive information (PSI) disclosure filed with the Dhaka Stock Exchange (DSE) today (13 July), .

The payout for general shareholders will amount to around Tk11.32 lakh, the company said.

Aamra Technologies said the date, time and venue of its Annual General Meeting (AGM), along with the record date, will be announced after receiving approval from the High Court.

The dividend recommendation comes amid worsening financial results. For FY25, the IT services company reported earnings per share (EPS) of negative Tk3.17.

Its net asset value (NAV) per share declined to Tk18.46 from Tk21.73, while net operating cash flow per share (NOCFPS) dropped to Tk0.70 from Tk4.21, indicating increased financial pressure and weaker operational performance.

The company was earlier downgraded to the 'Z' category from the 'B' category on 12 February after failing to distribute its approved 1% cash dividend for FY24 within the regulatory deadline of 30 days after its AGM.

Although Aamra submitted a dividend compliance report on 7 July, the DSE has not yet upgraded its category.

A senior company official attributed the financial setback to regulatory challenges. In May 2024, the Bangladesh Telecommunication Regulatory Commission (BTRC) restricted the company's bandwidth capacity as an internet gateway service provider over unresolved government revenue-sharing dues.

The restriction significantly affected the company's core operations, which were brought close to a standstill, the official said.

The company said it is working to resolve the issue with the BTRC, but the matter remains pending, affecting business continuity.

Aamra Technologies has been listed on the capital market since 2012, with an issue price of Tk24 per share.

Stocks ended higher on Monday, driven by renewed investor optimism following recent capital market-friendly fiscal measures and regulatory reforms.
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The benchmark DSEX index of the Dhaka Stock Exchange gained 17 points, or 0.30 per cent, to close at 5,866.

Market operators said investor confidence has continued to improve following the passage of the Finance Bill 2026, which introduced a series of incentives aimed at revitalising the capital market.

The Finance Bill, recently passed by Parliament, reduced taxes on dividend income, removed the investment ceiling for claiming tax rebates on investments in mutual funds, and eased listing requirements for companies seeking to raise funds through the stock market.

Analysts said these measures are expected to enhance the attractiveness of equity investments, encourage greater participation by both retail and institutional investors, strengthen the mutual fund industry, and facilitate companies' access to long-term capital through the capital market.

The DS30 index, comprising leading blue-chip companies, increased 2.35 points to 2,203, while the DSES index, which tracks Shariah-based stocks, increased 4.32 points to 1,196.80.

Market participation reduced on Monday, with turnover on the Dhaka Stock Exchange (DSE) falling to Tk 14.19 billion from Tk 16.69 billion in the previous session.

Gainers outnumbered Losers on the DSE floor. Of the 394 issues traded, 181 closed higher and 165 ended lower, while 48 remained unchanged.

The Chittagong Stock Exchange also ended higher, with its All Shares Price Index (CASPI) increasing 118.32 points to 15,711, while the Selective Categories Index (CSCX) increased 74.78 points to 9,635.

Rupali Bank, the country's only listed state-owned commercial bank, has received final approval from the Bangladesh Securities and Exchange Commission (BSEC) to issue shares worth nearly Tk680 crore to the government against its existing equity support.

According to a price-sensitive information (PSI) disclosure published on the Dhaka Stock Exchange (DSE) today (13 July), BSEC approved the bank's proposal to issue 45.33 crore ordinary shares to the Government of Bangladesh through a letter dated 12 July.

The shares will be issued at Tk15 each, including a Tk10 face value and a Tk5 premium, raising a total of Tk679.99 crore. The shares will be allotted to the Secretary of the Finance Division under the Ministry of Finance on behalf of the government.

The approval follows a decision by Rupali Bank's board on 30 June to issue the shares. The proposal will now be placed before shareholders at an Extraordinary General Meeting (EGM) scheduled for 27 August. The bank's Annual General Meeting (AGM) will also be held on the same day.

The government had provided Tk679.99 crore in equity support to Rupali Bank in phases through the Ministry of Finance. The amount was recorded as share money deposits in the bank's accounts.

Under a 2020 directive of the Financial Reporting Council (FRC), companies are required to convert such share money deposits into ordinary shares within a specified period. The proposed issuance is aimed at complying with that regulatory requirement.

Following the issuance, Rupali Bank's paid-up capital will increase from Tk487.93 crore to Tk941.26 crore, while the government's ownership in the bank is expected to rise from 90.19% to around 95%.

As the revised paid-up capital will exceed the bank's current authorised capital of Tk700 crore, Rupali Bank will also seek shareholder approval to increase its authorised capital to Tk2,500 crore.

The share issuance will not bring any fresh funds into the bank, as it only converts the government's previous equity support into paid-up capital. The funds have already been injected into the bank and reflected in its financial statements.

The development comes as Rupali Bank continues to face financial challenges. Due to its weak financial position, the bank did not declare any dividend for the 2025 financial year.

For the January-March quarter of 2026, the bank reported an operating loss of Tk84 crore and a net loss of Tk396 crore, resulting in a loss per share (EPS) of Tk8.12. As of 31 March 2026, its net asset value (NAV) per share stood at Tk27.05, while its shares closed at Tk17.10 on the Dhaka Stock Exchange today

The US dollar has climbed to Tk 123 in the inter-bank market as stronger demand for foreign currency coincides with slower inflows of remittances and export earnings.

The weighted average inter-bank exchange rate stood at Tk 123 yesterday, up slightly from Tk 122.97 a day earlier, according to the latest Bangladesh Bank (BB) data.

Since the beginning of this month, the weighted average exchange rate has been hovering around Tk 123 per USD.

Banks are now trading the US dollar between Tk 122.70 and Tk 123.75.

For example, Eastern Bank sold dollars to importers at Tk 123.70 yesterday, while buying them from exporters and other sources at Tk 122.70. Prime Bank sold dollars at Tk 123.75 and bought them at Tk 122.75.

Bankers said the dollar has strengthened mainly because of mounting payment pressure in recent months.

They said remittance inflows have slowed after the two Eid months, creating a slight shortage of US dollars in the market.

Syed Mahbubur Rahman, managing director and chief executive officer of Mutual Trust Bank, told The Daily Star that the banking sector is facing payment pressure from government imports, especially fuel and fertilisers, which has pushed the dollar exchange rate slightly higher.

He said remittance inflows have also eased after Eid. Together, these factors have increased pressure on the foreign exchange market.

In June, Bangladeshi expatriates sent home $2.81 billion in remittances, down slightly from $2.82 billion in the same month last year, according to BB data.

The June figure was 18.17 percent lower than the previous month.

In May, remittance inflows reached $3.42 billion, up 15.34 percent from a year earlier, as Bangladeshis living abroad sent more money home ahead of Eid-ul-Azha.

Preferring anonymity, the treasury head of a private commercial bank told The Daily Star that banks came under pressure at the end of June to settle letters of credit (LCs) for government imports and debt servicing, increasing demand for US dollars.

He, however, argued that the central bank’s intervention in the foreign exchange market was not wise.

The central bank has stopped buying US dollars from the market as demand for the currency has increased. The BB has not purchased dollars since June 8.

Between July 2025 and June 2026, the BB bought $6.4 billion from the market as part of its effort to build reserves.

Lower import payments and the central bank purchases of foreign currency helped boost the country’s foreign exchange reserves.

As of July 9, gross foreign exchange reserves stood at $31.90 billion under the BPM6 calculation method, up from $24.44 billion a year earlier, according to BB data.

The inter-bank exchange rate has reached Tk 123 at a time when an International Monetary Fund (IMF) fact-finding mission is visiting Bangladesh to assess the feasibility of the government’s proposal for a loan package worth nearly $4.5 billion.

Jenson & Nicholson Packaging Ltd, an affiliate of Berger Paints Bangladesh, will invest $13.7 million in the National Special Economic Zone (NSEZ) under a land lease agreement signed with the Bangladesh Economic Zones Authority (Beza) yesterday.

The company will set up its manufacturing facility on 6.34 acres of land and is expected to create around 600 jobs, according to a press release.

The plant will produce high-quality rigid plastic pails, industrial paint containers, food-grade packaging, metal packaging and other products to strengthen Berger Paints’ backward linkage.

Berger Paints had earlier been allocated 40 acres in the same economic zone, where commercial production is expected to begin within the next two months.

Speaking at the signing ceremony, Saleh Ahmed, executive member for investment development at Beza, said the investment reflects growing confidence among local investors in the country’s economic zones.

He said Beza is working to ensure faster and more investor-friendly services to help industries start operations quickly.

Rupali Chowdhury, director of Jenson & Nicholson Packaging and managing director of Berger Paints Bangladesh, said the investment would enhance the company’s production capacity while supporting environmentally friendly manufacturing, employment generation and the development of the paints industry’s backward linkage.

She also urged Beza to address gaps in utility services and policy issues to make the National Special Economic Zone a more attractive manufacturing hub.

The Group of Least-Developed Countries has urged the international community to take urgent action on five priority areas-concessional finance, debt relief, climate finance, market access and technology transfer-to help the world's poorest nations achieve the Sustainable Development Goals (SDGs) and ensure smooth LDC graduation.
Presenting the LDC Group's priorities at the High-Level Segment of the UN Economic and Social Council (ECOSOC) General Debate in New York on Monday, Bangladesh Prime Minister's Finance and Planning Adviser, Dr Rashed Al Mahmud Titumir, warned that mounting debt burdens, climate shocks, shrinking fiscal space and declining development assistance are putting sustainable development at risk.

Speaking on behalf of the 44-member LDC Group, Dr Titumir said progress towards the 2030 Agenda for Sustainable Development remained "alarmingly off track", with LDCs facing the greatest challenges.

As the group's first priority, he calls for a significant increase in predictable, affordable concessional financing to address mounting debt vulnerabilities and boost investment in education, healthcare, productive capacity, resilient infrastructure, job creation, poverty reduction, social protection and essential services.

Second, he urges reforms to the international financial architecture to better reflect the structural vulnerabilities of LDCs through expanded access to concessional resources, debt-suspension mechanisms, sustainable debt solutions and more equitable financing arrangements.

Third, he stresses that climate finance must be predictable, accessible and commensurate with countries' vulnerabilities, while calling for greater support for adaptation, resilience-building, energy transition and the Loss and Damage Fund, alongside increased investment in clean energy and resilient infrastructure.

Fourth, the LDC Group calls on the international community to preserve and expand market access for LDC exports by reversing protectionist measures and ensuring transparent, simplified and development-friendly rules of origin.

Fifth, Dr Titumir underscores the need for stronger international cooperation to bridge digital and technological divides through enhanced technology transfer, capacity-building and digital transformation.

He reaffirms the group's commitment to implementing the 2030 Agenda and the Doha Programme of Action (DPoA), describing them as the key frameworks for advancing sustainable development and ensuring smooth graduation from LDC status.

The adviser has said persistent structural vulnerabilities, worsening climate change, widening digital divides and limited access to affordable finance continue to hamper development efforts across LDCs, threatening the DPoA's goal of enabling more countries to achieve sustainable and irreversible graduation by 2031. He notes that 14 LDCs are currently at different stages of the graduation process and continue to require sustained international support.

Bangladesh and Nepal, he mentions, have sought a three-year extension of their preparatory period for graduation until November 2029 due to unprecedented political, macroeconomic, environmental and external shocks.

Describing next year's Mid-Term Review of the Doha Programme of Action in Doha as a critical opportunity to accelerate implementation of global commitments, Dr Titumir urges heads of state and government, ministers, international financial institutions and development partners to ensure the meeting delivers "transformational and implementable outcomes".

"The LDC Group stands ready to work with all partners to ensure that the Mid-Term Review becomes a turning point, one that restores momentum, rebuilds trust and delivers on the promise of sustainable development, leaving no one behind."

A private service holder, Rezaul Karim, first accessed the digital nano loan feature around four years ago, shortly after it was introduced, when the initial credit limit was Tk1,000.
TBS Illustration
TBS Illustration

Since then, he has used the service numerous times, with the credit limit gradually increasing to as much as Tk34,000 based on transaction history and repayment behavior.Sharing experience with The Business Standard, Karim said that digital loan services have become an important source of short-term financing for his everyday expenses.He first discovered the loan while making a payment through the bKash app, and after reviewing terms and conditions, he borrowed Tk1,000 to complete the purchase of a shirt.
"The service is particularly useful during emergencies or when immediate cash is needed, such as during Eid holidays when banking services are less accessible," said Karim. "On one such occasion, I borrowed Tk11,000 after running out of cash while away from home."Digital nano loan disbursement crossed Tk10,000 crore in July, marking a significant milestone in Bangladesh's first fully digital and collateral-free loan service introduced jointly by bKash and City Bank in December 2021.Over 35 lakh bKash customers availed the loan from City Bank so far under the digital nano loan platform, reflecting an improvement in democratising access to credit for marginal people.bKash data shows that users availed the loans service over 3 crore times when the platform offered a minimum of Tk500 to a maximum of Tk50,000 based on payment behavior.

Under the digital loan platform, around 1 lakh customers receive an average of Tk3,500 each every day through the bKash app. In contrast, all banks combined lend to only around 20,000-25,000 people or companies.

Over 1.2 crore bKash customers are currently eligible to avail loans based on users' transaction behavior on the bKash app, KYC information, and previous loan repayment history, according to bKash.

The service was initially started with only 2 lakh customers. After the pilot phase, it expanded to 8 lakh and gradually increased to 1.2 crore in 4 years, according to City bank.

Arup Haider, deputy managing director of City Bank, said digital nano loans tell a bigger story of democratising credit and financial inclusion, which was the fundamental idea.

He said people frequently face unexpected situations where they urgently need cash, but there was no system to address that need. Nano loans have now filled that gap.

This has improved the lives not only of vegetable sellers but also of corporate employees, journalists, and countless ordinary people, said Haider.

He expects that if today's borrowers continue to grow, the average ticket size may rise from Tk3,500 to Tk10,000, because customers are gradually building credit scores and repayment histories. When ticket size grows, it will be used for the productive sector, he added.

"What we're seeing today is only the tip of the iceberg," said the banker.

Eventually, perhaps by 2030 or 2031, as many as one million people could receive nano-loans every day. When that happens, informal moneylenders will largely disappear. Many local lending associations will also become obsolete," he said. He also believes a significant share of the NGO microfinance market will eventually shift toward nanolending.

How nano-loans are democratising credit

According to bKash data, nearly half of all Tk10,000 crore loans have been disbursed outside large cities like Dhaka and Chattogram, expanding access to formal finance in smaller cities, towns, villages, and underprivileged communities. More than one-quarter of the borrowers are women, strengthening their financial inclusion and economic participation.

Ali Ahmmed, chief commercial officer of bKash, said the milestone has significant economic implications because the loans are reaching people who largely lack access to formal banking, particularly outside major cities. Women, small traders, and micro-entrepreneurs are using the loans for productive purposes, such as purchasing inventory or working capital.

He said customer feedback and internal research indicate that many borrowers use the funds to support income-generating activities.

For instance, someone selling vegetables in the market may borrow Tk5,000 in the morning, purchase vegetables, transport them to Dhaka, and sell them. They may repay the loan within a week or a month, but during that period they could generate business worth Tk30,000. Since vegetables often have margins of 40-50%, they can earn substantial returns. The economic impact of thousands of such cases is difficult to quantify, he said.

The government's vision of a cashless Bangladesh begins with people shifting from cash to digital transactions. Once customers start using mobile financial services digitally, they create a credit history, he said.

The borrowers' list is continuously refreshed. Some customers qualify while others are removed, depending entirely on scoring models. Their loan limits also change over time as new transaction and repayment data becomes available.

Loan eligibility is determined using customers' transaction history in bKash accounts along with City Bank's credit policy. The repayment period is 3 months to 6 months.

The maximum six-month option is mainly for financing purchases of specific products using the Pay Later product, and only a very small percentage of borrowers use that option. About 99% of customers repay within three months, according to the bank.

The service has become a vital financial safety net—helping manage emergency expenses, education costs, household needs, and temporary business cash-flow gaps while reducing dependence on predatory informal lenders.

There is no charge for early settlement of the loan, and interest applies only for the period the loan remains outstanding.

Eligible customers simply tap the Loan icon on the bKash app, enter the desired amount within their approved limit, accept the terms and conditions, enter their bKash PIN, and instantly receive the approved loan amount in their bKash account.

Though the contribution of digital nano-loans to overall business is still negligible, City bank experienced rapid growth in users and strong repayment behavior, which kept the service at break-even.

With a default rate of less than 1%, the digital lending model has demonstrated strong portfolio quality. The bank noted that approximately Tk8,000 crore of the total disbursement occurred within the last 18 months, highlighting the product's rapid growth.

So far, out of the Tk10,000 crore the bank disbursed, around Tk80 crore has not yet been recovered, according to the lender.

How costly are nano-loans?

The bank charges 17% to 19% for digital nano loans, which looks high but is not burdensome, said Arup Haider. "Apparently it looks high, but most people don't find that unreasonable."

Citing an example, he said, "If you borrow Tk10,000, you'll repay around Tk10,400 over three months of the loan period."

He said in traditional banking, issuing a loan requires a large operational process. "That's where digital technology changes everything."

He added, "Also, think about the alternatives. If you cash out Tk10,000 through conventional channels, you might spend around Tk200 in fees. Here, you receive a three-month loan and repay it gradually in installments, paying only less than Tk400 extra in total when this loan solves your immediate problem."

Future of digital nano-loans

Ali Ahmmed sees two major opportunities. First, the number of customers with access to credit can increase substantially given the country's around 126.6 million adults with national identity cards and more than 84 million mobile financial service users.

Second, there are significant opportunities for small and medium enterprises (SMEs). Many small businesses currently have no meaningful access to formal finance. Many already use bKash for cash-in, cash-out, and merchant payments.

"If banks partnered with us to provide working capital loans, the funds could be used much more productively," he said.

"For example, suppose a pharmacy receives a Tk100,000 loan. Instead of receiving cash, the business could directly pay pharmaceutical companies to purchase medicines. The pharmacy would then sell those medicines and repay the loan after one week, 15 days, or a month."

"We often discuss the slow growth of private-sector credit. I believe that if we properly structure digital lending for SMEs, it could become an important driver of future private-sector credit growth," he said.

Spot gold eased on Friday and was on course for a weekly decline, as higher oil prices linked to the Middle East conflict fuelled inflation concerns and bolstered expectations of tighter US monetary policy.

Spot gold slid 0.4 percent to $4,103.23 per ounce by 2:10 p.m. EDT (1810 GMT), and was down 1.7 percent for the week so far.

US gold futures for August settled around 0.7 percent lower at $4,113.70 per ounce.

The major factor here is the restarting of tensions between the US and Iran, with investors broadly not wanting to hold on to gold and silver at this point, Bart Melek, global head of commodity strategy at TD Securities, said.

The recent escalation in hostilities between the US and Iran could upend the International Energy Agency’s forecast of a significant oil market surplus next year, the agency said on Friday.

Oil prices were poised for a weekly rise, propelled by supply concerns amid fresh US-Iran strikes.

Higher energy prices fuel inflation concerns, strengthening expectations of interest rate hikes by central banks.

While gold is generally viewed as an inflation hedge, higher interest rates tend to weigh on the non-yielding metal by increasing the appeal of interest-bearing assets.

Every indication points toward the market worrying about inflation, particularly since oil has rebounded in the last few days, Melek said.

This will keep central banks diligent, particularly the Federal Reserve, he added.

Traders are pricing in about a 69 percent chance of a rate hike in September, according to the CME FedWatch Tool.

The minutes from the Fed meeting in June showed a hawkish split as concern about high inflation mounted.

Investors are now eyeing next week’s inflation data and Fed Chair Kevin Warsh’s testimony for further insight into the monetary direction.

Meanwhile, gold traded at a steep discount in India this week, while demand in China remained steady.

This followed the Chinese central bank reporting its largest monthly increase in gold reserves in more than 2-1/2 years in June.

Investor confidence in Bangladesh's capital market is gradually returning due to sweeping reforms, stronger regulatory oversight and strict action against those involved in past market manipulation, Finance Minister Amir Khosru Mahmud Chowdhury told parliament today (12 July).

Responding to a supplementary question from opposition MP Md Kamrul Hasan (Mymensingh-6), the minister said the country's capital market has shown visible improvement since the reconstituted Bangladesh Securities and Exchange Commission (BSEC) assumed office.

"The stock market has maintained an upward trend over the past two months, with significant gains in the market indices," he said, adding that the current commission is playing a positive role in restoring investor confidence by ensuring greater transparency and accountability.

The finance minister said the government has appointed a completely new BSEC comprising a chairman and three commissioners, while the process of appointing another commissioner is underway.

He said none of the commission members had been appointed on political considerations. Instead, they were selected based on professional competence, experience and integrity.

According to the minister, the commission, led by professionals with extensive experience in domestic and international capital markets, is working to strengthen governance in the market.

Highlighting actions taken against irregularities and market manipulation during the previous government's tenure, he said disciplinary measures had already been taken against individuals and institutions found responsible, while investigations and legal proceedings in several other cases remain ongoing.

Detailed information on these actions has also been published on the BSEC's website, he added.

The minister said financial penalties had been imposed on various individuals and organisations for market manipulation and fraud. Action has also been taken against those involved in manipulating Beximco share trading.

He added that the commission is implementing further measures based on the recommendations of a committee formed to investigate allegations of corruption and financial irregularities.

The government's objective, he said, is to transform Bangladesh's capital market into a transparent, accountable and internationally recognised investment destination.

He claimed that not only local investors but also listed companies and international fund managers have started showing renewed interest in the market.

Investment managers from major global financial centres, including Hong Kong, London and New York, have already begun visiting Bangladesh to assess investment opportunities in the capital market, he said, adding that the market's recent upward trend reflects improving investor confidence driven by the government's reform initiatives.

In response to another supplementary question, the finance minister said the government is implementing a comprehensive programme to make the tax system simpler, fairer and more taxpayer-friendly while expanding the country's tax base.

He said the National Board of Revenue (NBR) is identifying the market share of different businesses and assessing taxes based on their actual business capacity to ensure a more rational and transparent taxation system.

The government is also introducing a simplified flat-rate tax regime to bring individuals and small businesses currently outside the tax net into the formal tax system, he said.

Under the proposed system, taxpayers will pay a fixed amount based on their financial capacity and location, eliminating the need to file income tax returns or undergo lengthy assessment procedures.

The minister said the primary objective is to encourage voluntary tax compliance among new taxpayers and rapidly expand the tax base. Once a sufficient number of new taxpayers are brought into the system, they will gradually be integrated into the conventional tax regime, he added.

Heavy to very heavy rain, flash floods, flooding and waterlogging have affected 28,610 hectares of crops across 12 districts.

Preliminary data from the Department of Agricultural Extension (DAE) showed that Aush rice, Aman seedbeds and summer vegetables were the most affected.

The DAE assessment covered 5,34,570 hectares under the listed crops in the affected districts.DAE officials said the figure was preliminary. The actual extent of the damage would become clearer after floodwater receded, while the affected area could increase if rain continued.

Md Obaidur Rahman Mondal, director of the DAE's Field Services Wing said farmland in Chattogram, Rangamati, Khagrachhari, Bandarban and eight other districts had been affected by heavy rain.

"Continuous rain and standing water have affected Aush rice, Aman seedbeds, seasonal vegetables and betel leaf farms," he said.

He added that officials were continuing to collect field-level information to determine the full extent of the damage.

District-wise data showed that 3,495 hectares were affected in Rangamati, including Aush, summer vegetables, ginger, turmeric, Aman seedbeds and orchards.

In Khagrachhari, 1,031 hectares of Aush, summer vegetables, Aman seedbeds and orchards were affected.

In Bandarban, around 945 hectares under nine crop categories were affected, including Aman seedbeds, Aush, summer vegetables, orchards in the plains and hills, jhum Aush, ginger and turmeric.

Chattogram recorded 6,591 hectares of affected Aush, 565 hectares of Aman seedbeds and 4,167 hectares of summer vegetables.

Aush, Aman seedbeds, summer vegetables and betel leaf farms were affected in Cox's Bazar.

In Naogaon, 4,340 hectares of Aush were affected. Habiganj recorded 1,259 hectares of affected Aush, 150 hectares of Aman seedbeds and 233 hectares of vegetables.

Different areas under Aush, jute, chilli, banana, Aman seedbeds and summer vegetables were also affected in Jashore, Chuadanga, Meherpur, Sirajganj and Sunamganj.

Agriculture officials said Aush, summer vegetables and Aman seedbeds had so far faced the greatest impact.

If Aman seedlings are destroyed, farmers in many areas may have to prepare new seedbeds, delaying the cultivation schedule. Damage to vegetables still in the fields could also reduce supplies and raise prices, they said.

Meanwhile, the Flood Forecasting and Warning Centre (FFWC) said yesterday (12 July) that the flood situation in the north-eastern region could worsen over the next 24 to 72 hours.

Water levels in the Khowai, Manu, Kushiyara and Surma rivers were rising rapidly. The Kushiyara was already flowing above the danger level at Markuli in Sunamganj and Fenchuganj in Sylhet.

Water in the Sari-Gowain, Someshwari, Jadukata and Bhogai-Kangsha rivers could also cross danger levels at several points.

This could inundate more low-lying farmland in Sylhet, Sunamganj, Habiganj and Moulvibazar, officials said.

Mohammad Nazmul Kabir, additional deputy director for crops at the DAE's Sunamganj office, said relatively low rainfall in Cherrapunji had so far prevented major flooding.

"However, the area remains highly vulnerable to flash floods," he said.

Vegetable importer Farhan Hossain said actual supplies often declined during disasters, while artificial shortages were also sometimes created to raise prices.

Transport disruption could quickly push up the prices of green chillies, potatoes and other essential vegetables, he said.

Faruk Ahmed, director of the research wing at the Bangladesh Agricultural Research Institute, said most summer crops had been harvested before the monsoon, reducing the risk of a major impact on overall food production.

"However, vegetables, green chillies and newly prepared Aman seedbeds still in the fields could affect the market in the short term," he said.

He added that farmers in waterlogged areas could use the pyramid method, under which crops are grown on raised, pyramid-shaped beds, to improve drainage and reduce the risk of root rot.

Defaulted loans from Bangladesh's nine state-owned banks have risen to nearly Tk 1.89 trillion, prompting the government to begin overall banking-sector overhaul, the finance minister told parliament on Sunday.)

A series of short-, medium- and long-term reforms are being carried out for restoring discipline in the banking sector, said Amir Khasru Mahmud Chowdhury.

Responding to a supplementary question from reserved-seat lawmaker Sabikunnahar during the 23rd sitting of the second session-the first budget session under this government-of the 13th Jatiya Sangsad, the finance minister said total default loans from the state-owned banks stood at Tk 1,88,701.75 crore as of May 31.

The figures were compiled using data submitted to the Bangladesh Bank's Credit Information Bureau (CIB) by the nine state-owned lenders: Agrani Bank PLC, Janata Bank PLC, Rupali Bank PLC, Sonali Bank PLC, BASIC Bank PLC, Bangladesh Development Bank PLC, Bangladesh Krishi Bank, Rajshahi Krishi Unnayan Bank and Probashi Kalyan Bank.

Presided over by Speaker Hafiz Uddin Ahmed, the parliamentary session heard the finance minister stress that reducing the high volume of non-performing loans is essential to restoring order in the banking sector.

He notes that the issue has been given special importance in the government's election manifesto.

To address the problem, Bangladesh Bank has adopted a comprehensive reform strategy.

In the short term, the central bank is preparing guidelines on classified loan- resolution strategies and updating its credit-risk-management framework in line with international standards.

The medium-term plan includes implementing the International Financial Reporting Standard (IFRS-9), introducing accredited institutions to assess collateral value, updating agricultural loan-rescheduling policies, providing incentives to bank officials for recovering defaulted loans, and strengthening reward schemes for regular borrowers.

Long-term measures include setting a cap on the total amount an individual borrower can obtain from the entire banking sector, taking stricter action against willful defaulters, appointing experienced bankers to panels of judges in Money Loan Courts, preventing delays in loan recovery caused by writ petitions, and enacting legislation to establish private-sector asset-management companies.

The finance minister also has said the government has enacted the Bank Resolution Act 2026 to ensure effective management of troubled banks. In addition, it is preparing the Deposit Protection Act 2026 to safeguard depositors' interests.l

And amendments to the laws governing Bangladesh Bank, the Insurance Development and Regulatory Authority (IDRA), Bangladesh Securities and Exchange Commission (BSEC), as well as revisions of the Negotiable Instruments Act, have strengthened the legal framework for addressing cheque fraud and improving the adjudication of cheque-dishonour cases.

"The government is working to restore discipline in the financial sector through a stronger legal framework, a transparent bank-resolution process and enhanced protection for depositors," he told the House.

To another supplementary from Gazipur-4 lawmaker Salauddin, the finance minister said investigations were underway into irregularities, corruption and large-scale financial misappropriation that occurred in the banking sector over the past several years, including at Probashi Kalyan Bank.

He reaffirms that restoring order in the financial sector remains one of the government's highest priorities and describes the ongoing reforms as a comprehensive "cleaning process" across the sector.

During the session, Salauddin alleged that under the previous government, billions of taka had been siphoned off from Probashi Kalyan Bank through "politically influenced loan approvals, bribery and syndicate-based corruption".

As a result, he claims, nearly 61 per cent of the bank's loans have become non-performing. He also alleges that the same syndicates continue attempting to influence loan approvals and disbursements, calling for a thorough investigation and the dismantling of the nexus.

In response, the finance minister makes it clear that the investigation is not limited to a single institution but covers multiple banks.

He notes that action has already been taken against a number of individuals and acknowledges that the financial sector's longstanding irregularities cannot be eliminated overnight, but pledges that the cleanup drive would continue.

Bangladesh Securities and Exchange Commission (BSEC) has imposed fines totalling Tk1,497 crore on individuals and institutions over market manipulation, irregularities and corruption committed during the previous government's tenure, Finance Minister Amir Khosru Mahmud Chowdhury told parliament today (12 July).

Replying to a question from MP Kamrul Hasan during the question-and-answer session, the minister said the regulator has also taken punitive measures, including lifetime and fixed-term bans, licence cancellations, criminal cases, and referrals to the Anti-Corruption Commission (ACC) for further investigation and legal action.The finance minister said BSEC imposed Tk428 crore in fines on individuals and entities involved in the manipulation of Beximco shares.He said an investigation into the Tk1,000 crore IFIC Guaranteed Sreepur Township Green Zero Coupon Bond found evidence of irregularities in its issuance, prompting disciplinary action against those responsible.As part of the action, former IFIC Bank chairman Salman F Rahman and former vice-chairman Ahmed Shayan Fazlur Rahman have been permanently barred from participating in Bangladesh's capital market. Salman F Rahman was fined Tk100 crore, while Ahmed Shayan Fazlur Rahman was fined Tk50 crore.Former BSEC chairman Prof Shibli Rubayat-Ul-Islam has also been banned for life from all capital market-related activities, while former BSEC commissioner Dr Shamsuddin Ahmed has been barred for five years.

Former IFIC Bank managing director Shah Alam Sarwar was fined Tk5 crore, while former IFIC Investments chief executive Imran Ahmed has been banned from capital market activities for five years.

The minister said punitive action has also been taken following investigations into alleged irregularities involving the withdrawal of capital from Ring Shine Textiles Ltd.

He added that former CAPM Advisory managing director and CEO Tania Sharmin and former AFC Capital CEO Mahbub H Mazumdar have each been barred from participating in capital market activities for five years.

The BSEC is also taking enforcement action over irregularities in ABG Ltd's acquisition of a 25% strategic stake in the Chittagong Stock Exchange.

The regulator is continuing disciplinary proceedings over alleged irregularities involving Acme Pesticides Ltd, Al-Amin Chemical Industries Ltd, Emerald Oil Industries Ltd, Sonali Paper & Board Mills Ltd, and Beximco Green Sukuk Al-Istisna, the minister said.

He added that the BSEC has referred several cases involving alleged financial irregularities and possible money laundering to the ACC.

The regulator has also cancelled the brokerage licences of Tamha Securities Ltd, Banco Securities, Crest Securities Ltd and Mashiur Securities Ltd over allegations of misappropriating investors' funds. Criminal cases have already been filed against some of the firms, while others have been referred to the ACC.

Responding to a supplementary question, the finance minister said legal proceedings and investigations against former BSEC officials are already underway.

He also informed parliament that the securities regulator has been reconstituted with a chairman and three commissioners, while the process of appointing another commissioner is ongoing.

"The appointments were not made on political considerations. The recruitment process was so transparent that even I, as finance minister, did not know them personally beforehand," Amir Khosru said.

He said all members of the reconstituted commission are experienced professionals in the capital market and international financial markets.

The finance minister claimed the stock market has been on an upward trend since the new commission assumed office, with the market index recording greater gains over the past two months than in the previous five years.

He attributed the improvement to enhanced transparency, reforms and renewed investor confidence, adding that both domestic and foreign investors, including international fund managers from Hong Kong, New York and London, have expressed interest in investing in Bangladesh's capital market.

Bangladesh's stock market extended its rally today (12 July), the first trading day of the week, as investor optimism over regulatory reforms and the government's commitment to developing the capital market remained strong.

Driven by robust buying pressure, the benchmark DSEX index of the Dhaka Stock Exchange (DSE) gained 45 points to close at 5,849. Daily turnover also crossed the Tk1,600 crore mark for the first time in nearly two years, reaching Tk1,669 crore.

Turnover increased by around 16.9% compared with the previous trading session. Market participants attributed the rise to growing demand for fundamentally strong stocks trading at attractive valuations, alongside expectations of market reforms.

Buying interest was particularly strong in banking and insurance stocks from the opening bell. The blue-chip DS30 index rose 22 points to 2,200, while the DSES, which tracks Shariah-compliant companies, also ended the day in positive territory.

Of the 392 listed companies and mutual funds traded on the DSE, 199 advanced, 156 declined, and 37 remained unchanged.

The Chittagong Stock Exchange (CSE) also maintained its positive momentum. The CSCX index gained 66.8 points, while the broader CASPI index advanced 77.4 points. Strong buying in banks, insurers and other large-cap stocks helped the market close higher.

In its daily market review, brokerage firm EBL Securities said investor confidence, supported by regulatory and political commitments to capital market reforms, generated broad-based buying across sectors.

Although some profit-taking emerged during the session, fresh buying quickly absorbed the selling pressure, allowing the market to retain most of its gains and extend its upward trend, the brokerage said.

According to EBL Securities, the banking sector accounted for the largest share of turnover at 12.8%, followed by textiles (12.6%) and general insurance (12.4%).

In terms of price movement, the general insurance sector was the most active, contributing 16.9% of total traded value, followed by textiles (12.2%) and engineering (8.7%).

The mutual fund sector posted the biggest gain, rising 3.7%. The life insurance index climbed 3.2%, while the jute sector advanced 2.9%.

On the downside, the information technology (IT) sector recorded the steepest decline, falling 1.8%. The miscellaneous sector lost 0.5%, while the travel and leisure sector slipped 0.3%.

Lovello Ice Cream topped the turnover chart, followed by Bangladesh Shipping Corporation, Malek Spinning, Eastern Housing, and ITC.

Among the top gainers, Union Insurance rose 9.82%, followed by Meghna Insurance (9.78%), Sandhani Insurance (9.57%), EBL First Mutual Fund (9.52%), and MBL First Mutual Fund (9.52%).

On the losing side, Apollo Ispat Complex fell 9.37%, matching the decline of Zaheentex Industries. Intech lost 9.31%, Shurwid Industries dropped 8.95%, and AFC Agro Biotech declined 8.86%.

During the trading session, rumours that several long-suspended listed companies might be delisted created temporary volatility in the market.

The Bangladesh Securities and Exchange Commission (BSEC) later dismissed the reports as completely baseless and misleading in a press release.

The regulator clarified it had not taken any decision to immediately delist companies that have remained out of production or commercial operations for a prolonged period.

However, the commission urged investors to exercise extreme caution when investing in companies that have remained inactive for a long time and whose going concern status is under serious threat. It also advised investors not to make investment decisions based on rumours or incomplete information.