The Dhaka Stock Exchange has finalised its semi-annual rebalancing of the DS30 index, the premier "elite club" of investable stocks on the country's main bourse.

In the latest review, steel giant BSRM Limited, pharmaceutical leader The Acme Laboratories Limited, and the state-owned Power Grid Company of Bangladesh Limited have secured their positions among the top 30 stocks. These new entrants will replace Kohinoor Chemicals, Unique Hotel and Resorts, and the multinational industrial gas supplier Linde Bangladesh Limited.

The reshuffle, which is scheduled to take effect from 19 July, is based on a rigorous index methodology developed in 2013 in collaboration with S&P Dow Jones Indices, said the DSE in a press release today (12 July).

The rebalancing is conducted twice a year to ensure that the index accurately reflects the most liquid and fundamentally sound companies available to investors, according to the DSE.

Market insiders noted that the DS30 serves as a critical benchmark for both domestic and foreign institutional investors, helping them identify the most reliable "investable" scrips in an often-volatile market.

To qualify for the DS30 index, a company must meet several stringent criteria. These include maintaining a minimum free-float market capitalisation of Tk50 crore and an average daily turnover of at least Tk50 lakh over the preceding three months. For companies already residing within the index, the turnover requirement is slightly relaxed to Tk30 lakh to maintain stability.

Furthermore, any candidate for the blue-chip index must have posted a positive net profit over the latest 12-month period. To ensure sectoral diversity, the DSE also limits the number of companies from a single sector to a maximum of five.

How non-compliant firms placed in DS30

The presence of certain non-compliant firms in the DS30 list has raised concerns among market participants regarding the integrity of the index.

For instance, Fine Foods Limited remains a member of the DS30 despite its sponsors and directors holding only 13.92% of the company's shares – far below the regulatory mandate of 30% for all listed firms.

Similarly, LankaBangla Finance has retained its spot in the elite club despite a significant lack of financial transparency. The non-bank financial institution has not published any financial statements since September 2025, leaving investors in the dark regarding its performance for the full year of 2025 and the first two quarters of 2026.

A managing director of a prominent brokerage firm told TBS that while investors traditionally trust the blue-chip index, the inclusion of companies with poor track records or compliance failures can be misleading.

He pointed out that this lack of qualitative screening is a primary reason why many professional fund managers choose not to follow the DS30 index strictly when building their portfolios.

He argued that an index meant to represent the best of the market should not harbour companies that flout basic listing and transparency regulations.

Responding to these criticisms, a senior officer of the DSE, speaking on condition of anonymity, explained that the bourse is currently bound by the mathematical model provided by S&P Dow Jones.

According to him, if a company meets the market cap, turnover, and profitability numbers defined in the 2013 methodology, the system automatically includes them.

He noted that the current methodology does not provide a specific timeframe for quarterly earnings valuations, which allows a firm like LankaBangla Finance to remain in the index based on historical data.

However, he revealed that the DSE is aware of these loopholes and is considering consulting with stakeholders to modify the index rules to incorporate stricter compliance and corporate governance standards in the future.

The DS30 index, which launched with a base value of 1,000 points in 2013, remains the most-watched indicator of large-cap performance in Bangladesh.

Bangladesh's creative economy needs supportive policies, structural reforms and measurable performance benchmarks to emerge as a sustainable driver of economic growth, experts said at a discussion on Saturday.

They welcomed the government's first dedicated budget allocation for the sector but said its success would depend on effective implementation, regulatory reforms and stronger public-private collaboration.

The observations came at a webinar titled "Creative Economy: Slogan or Untapped Potential?" organised by the Power and Participation Research Centre (PPRC).

In a major policy shift, the FY2026-27 national budget has, for the first time, earmarked a Tk 8.0 billion work plan for the creative economy. The package includes Tk 3.0 billion in direct budgetary support and another Tk 5.0 billion from Bangladesh Bank's corporate social responsibility (CSR) fund.

The initiative aims to increase the sector's contribution to GDP, create nearly 500,000 jobs and build a "Created in Bangladesh" brand across industries such as film, music, publishing, digital content and design.

The discussion was moderated by PPRC Executive Chairman Hossain Zillur Rahman. Participants included filmmaker and creative entrepreneur Tanim Noor, Chorki CEO Redwan Rony, Bengal Foundation Director General Luva Nahid Choudhury, playwright and actor Bakar Bakul, UPL Managing Director Mahrukh Mohiuddin, and Classical Handmade Products (CHP) Managing Director Md. Tauhid Bin Abdus Salam.

Tanim Noor called for a dedicated tax policy for the creative economy, saying targeted incentives would help attract greater investment.

"Providing tax incentives, such as a 50 per cent tax exemption for the film industry, could significantly increase investment in Bangladeshi cinema, making the sector more attractive to both existing and new investors," he said.

Redwan Rony said the government should prioritise infrastructure development alongside reforms to taxation and licensing policies to strengthen the film industry.

He noted that Bangladeshi content produced for over-the-top (OTT) platforms is currently taxed under the general corporate tax structure, while no dedicated policy framework exists for the sector.

As a result, global streaming platforms such as Netflix and Amazon generate revenue from Bangladeshi audiences without facing the same tax obligations as domestic OTT platforms, leaving local companies at a competitive disadvantage, he said.

Luva Nahid Choudhury said Bangladesh has no shortage of creative talent, but the ecosystem needed to nurture, commercialise and scale that talent remains underdeveloped.

Summing up the discussion, Dr Hossain Zillur Rahman said Bangladesh now needs a policy ecosystem that reflects the creative economy's growing potential.

"A one-dimensional infrastructure approach will not take us forward. We need quality infrastructure backed by sustainable management models based on public-private partnerships," he said.

He also called for policy reforms covering taxation, royalty sharing, copyright protection and licensing.

"The government has expressed an interest in taking the sector forward. But to ensure sustainable results, stakeholders within the sector must also come together independently to develop a strategic roadmap for its future," he added.

The Bangladesh Securities and Exchange Commission (BSEC) on Sunday issued a clarification, rejecting media reports that claimed the regulator had decided to immediately delist companies that have remained closed or inactive.

In a press release, the Commission described the reports as completely misleading and baseless, saying they did not accurately reflect the remarks made by BSEC Chairman Masud Khan during an exchange of views with the Capital Market Journalists' Forum (CMJF) on July 9.

The BSEC said the Chairman had referred to international practices, where companies that remain closed or inactive for prolonged periods are generally not allowed to stay listed on stock exchanges.

He also noted that Bangladesh is an exception, with several inactive companies continuing to remain listed, exposing particularly small investors to financial risks, reports BSS.

The Commission clarified that no decision has been taken to delist such companies.

According to the BSEC, the Dhaka Stock Exchange (DSE), as the frontline regulator, is currently reviewing the status of inactive listed firms to develop a logical and transparent process for addressing the issue.

As part of the review, a proposal has been discussed to allow inactive companies a grace period, possibly one year, to resume operations.

If they fail to do so within the stipulated period, any further action will be taken in accordance with the existing laws, rules and listing regulations, it said.

The regulator also urged investors to exercise caution while making investment decisions, particularly regarding companies that have remained inactive for a prolonged period, face going concern risks, fail to hold mandatory annual general meetings (AGMs), or do not pay dividends to shareholders.

The clarification was issued through an official press release signed by the BSEC spokesperson.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) will launch a series of roadshows in major trading hubs, including Hong Kong, Singapore and Dubai, to attract global apparel buyers that currently do little or no business with Bangladesh.

The initiative will begin with a roadshow in Hong Kong, while HSBC will support the programme by helping identify and engage potential buyers and encouraging them to participate in the events. The announcement was made at a programme held at the BGMEA headquarters in Dhaka yesterday (12 July).

To formalise the collaboration, BGMEA and HSBC signed a MoU. The agreement was signed by Mahmud Hasan Khan Babu, president of BGMEA, and Md Mahbub ur Rahman, CEO of HSBC Bangladesh, on behalf of their respective organisations.
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Speaking at the event, Shah Rayeed Chowdhury, a BGMEA director, said the initiative would begin in Hong Kong before expanding to other global trading centres. "We will start with Hong Kong, but later we will also go to places such as Singapore and Dubai," he said.

After the event, he told TBS that BGMEA's current focus was largely on major existing buyers, but the organisation now wanted to showcase Bangladesh's capabilities to brands that either do not source from the country or have only a limited presence.

"We want to let those buyers know how Bangladesh's capabilities have evolved. Our main objective is to strengthen Bangladesh's brand image," he said.

Explaining why Hong Kong had been chosen as the first destination, Chowdhury said it was an important global trading hub where many international brands have a presence.

"We will target those brands there. Singapore and Dubai are also global trading hubs, so we will organise similar programmes there in the future and engage with buyers. There will also be matchmaking sessions," he said.

He added that the events would be jointly organised by BGMEA and HSBC.

Explaining HSBC's role, Chowdhury said many global brands already work with the bank because of its international reputation.

"Global brands work with trusted and reliable institutions like HSBC. Partnering with them will also strengthen our credibility," he said.

Speaking at the event, HSBC CEO Mahbub said understanding buyers' changing priorities would be key to the initiative.

"We need to research what customers want and where they are heading. We want to identify three to five priorities over the next five years. We will set our priorities based on customers' needs," he said.

BGMEA President Babu called on HSBC to help attract brands that have yet to source products from Bangladesh. He said one international brand that previously did not purchase from Bangladesh had now decided to start sourcing from the country.

He also said BGMEA planned to expand business with Japan and would establish a dedicated help desk at the association to support that effort.

Agreeing with the HSBC chief executive, Babu said Bangladesh had many world-class garment factories, but negative images often affected buyers' perceptions.

"There are many excellent factories in Bangladesh. But when images of the polluted waters of the Turag River are shown abroad, many premium brands become reluctant to place orders in Bangladesh," he said.

Oil prices settled lower on Friday after the latest round of US-Iran fighting as traders grew hopeful that shipping would eventually resume in the Strait of Hormuz, but prices finished with sharp weekly gains.

Brent futures settled at $76.01 a barrel, down 29 cents, or 0.38 percent. US West Texas Intermediate crude finished at $71.41 a barrel down 67 cents or 0.93 percent.For the week, Brent gained about 5.50 percent and WTI nearly 4 percent.“This market is ready, willing and able to jump on good news or at least no bad news,” said John Kilduff, partner with Again Capital. “And it looks like the escalation won’t get any worse.”

With the end of tit-for-tat air strikes and the promise of renewed talks between the US and Iran next week, traders looked forward to the Strait of Hormuz reopening.Brent futures settled at $76.01 a barrel, down 29 cents, or 0.38 percent“Amazingly though, oil prices are coming down after a spike near $76 a barrel, even as the Strait of Hormuz was effectively shut down once again,” said Phil Flynn, senior analyst with Price Futures Group.

Flynn added this was mainly on confidence that the United States’ military strength will not allow the Strait of Hormuz to be shut down for an extended period of time.

On Thursday, Iranian armed forces launched attacks on US military infrastructure in Gulf states after US strikes on Iran’s southern coastal and eastern provinces.

Prices pared gains after a Reuters report said Qatari negotiators were in Iran to meet Iranian officials in an effort to de-escalate tensions and create conditions for broader negotiations to continue.

Separately, Iranian media reported multiple explosions across southern Iran. The area included Bushehr, where one of the country’s nuclear plants is located.

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.

The developments have delayed a full reopening of the Strait of Hormuz, which carried about 20 percent of daily global oil and gas supplies before the start of the war on February 28.

The lack of any new US strikes on Iran overnight is probably weighing on oil prices, though a drop in flows through the Strait of Hormuz is limiting the downside, said UBS analyst Giovanni Staunovo.

Liquefied natural gas tankers have passed through the strait in recent days, ship-tracking data showed, but overall daily traffic has slowed.

US President Donald Trump said this week that he did not think the war would restart and that “anything that happens is going to be over very quickly”.

“Despite the US ramping up attacks on military sites in Iran, the market drew some reassurance from the Trump administration’s decision to avoid targeting Iranian energy infrastructure,” said ANZ commodity strategist Daniel Hynes.

Elsewhere, the IEA downgraded its projections on Russian oil production because of Ukrainian attacks on the country’s energy infrastructure, the agency said on Friday.

Russian gasoline output fell to a level equivalent to only around 65 percent of the seasonal average consumption after Ukrainian drone attacks led to stoppages at large oil refineries, according to two industry sources.

For the local bike market, the recently concluded fiscal year was dull, as retail sales were almost unchanged from the previous year, due mainly to weak economic conditions, sluggish farming activity and fuel price shocks.

Even in the subdued market, Japanese brands posted double-digit sales growth, while their Indian rivals struggled.

Sellers said the demand for Japanese motorcycles in the entry and mid-segment was strong, driven by fuel efficiency, low running costs, competitive pricing and practical features.

In contrast, Indian brands said the absence of new product launches in FY26 eventually hurt their sales.

Industry data showed that 422,655 motorcycles were sold in FY26, almost unchanged from 422,593 units in the previous fiscal year. Companies blamed weak demand for the stagnant market.

“The industry should have reached annual sales of 700,000 to 800,000 motorcycles by now, but remained below 500,000 units, discouraging deeper localisation and investment in domestic component manufacturing,” said Subrata Ranjan Das, deputy managing director of ACI Motors.

ACI Motors is the sole distributor of Japanese brand Yamaha in Bangladesh.

He said the market had failed to realise its potential because weak economic conditions, sluggish agricultural activity in the northern region and policy uncertainty curbed demand.

Yamaha retained its position as the country’s best-selling motorcycle brand after retail sales rose 19 percent year-on-year to 95,531 units, giving it a 23 percent market share.

Another Japanese brand Suzuki ranked second with sales of 90,657 units, up 10 percent, while Honda recorded the fastest growth among these three Japanese brands. Its sales jumped 18 percent to 83,122 units, lifting its market share to 20 percent.

Together, the three brands accounted for nearly two-thirds of all motorcycles sold in Bangladesh during the last fiscal year.

Several competitors, particularly Indian manufacturers, struggled to maintain their position.

Hero’s sales fell 6 percent to 73,762 units, although it remained the fourth-largest player with a 17 percent market share. Bajaj posted a steeper decline of 22 percent to 63,256 units, while Royal Enfield’s sales slipped 9 percent to 7,568 units.

TVS recorded the sharpest decline among the major manufacturers, with sales plunging 67 percent to 6,370 units from 19,167 a year earlier.

Sales by smaller brands grouped under the “Others” category edged up 3 percent to 2,389 units.

Industry executives said weak economic conditions, policy uncertainty and subdued consumer spending continued to weigh on the market despite strong performances by a handful of brands.

“At the current volume, it is difficult to justify deep manufacturing or build a competitive vendor base. We need a market of at least 10 lakh units,” Subrata Ranjan Das of ACI said.

He noted that Pakistan’s motorcycle market stands at around 25 lakh units despite having a population only slightly larger than Bangladesh’s.

Das also said Bangladesh remains one of the least-penetrated motorcycle markets in South Asia, with roughly one motorcycle for every 80 people, compared with about one for every two people in India.

He attributed Yamaha’s continued market leadership to the company’s customer-centric approach, strong after-sales service, reliable braking performance, fuel efficiency and high resale value.

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He also credited regular customer engagement and follow-up services with helping build long-term trust and customer loyalty.

TVS Auto Bangladesh Chief Executive Officer Biplob Kumar Roy said the absence of new product launches, coupled with weak economic conditions, had hurt the company’s performance.

“We could not introduce any new products, so our business did not perform as expected,” he said.

He added that the broader economic slowdown and prolonged uncertainty had further dampened consumer demand.

“The industry could not grow the way it was expected to,” Biplob said, adding that the sector still has significant growth potential, but subdued consumer sentiment has prevented it from reaching that trajectory.

Honda, however, bucked the broader market trend.

Shah Muhammad Ashequr Rahman, chief marketing officer at Bangladesh Honda Private Limited (BHL), attributed the company’s sales growth to strong demand for its entry and mid-segment motorcycles, particularly the 110cc and 125cc models.

Popular commuter models such as the Dream 110, Shine 100, Shine 100 DX and SP 125 have continued to attract buyers because of their fuel efficiency, low running costs, competitive pricing and practical features, said Ashequr.

“We are resolving customer issues much faster than before. Our motorcycles offer advanced technology at competitive prices with low running costs,” he said.

He added that Honda’s strengthened brand image had also contributed to the company’s improved sales performance.

Finance Minister Amir Khosru Mahmud Chowdhury today (Sunday) said that any future partnership with the International Monetary Fund (IMF) would be pursued only if it safeguards public interest and protects the country's economic security.

"The government would not join any IMF programme that goes against the interests of the people," he said while speaking to reporters at the Secretariat, BSS reports citing a press release.

Referring to the previous IMF programme undertaken by the former government, the minister said that it included a number of conditions that the present elected government considered inconsistent with its policy priorities and, therefore, decided to withdraw from that arrangement.

He said the government's objective is not merely to secure external financing but to ensure economic stability while protecting the interests of the people.

Any future engagement with the IMF, he added, would be based on terms that fully safeguard Bangladesh's national interests.

The minister also said the government is working to modernise the country's visa policy as part of its broader vision of building a modern Bangladesh.

He said the existing visa regime would be simplified to facilitate greater tourist arrivals, attract foreign investment and strengthen international confidence in Bangladesh's economy.

During the briefing, Amir Khosru also expressed deep sorrow at the death of Barrister Jamiruddin Sircar, former Speaker of the Jatiya Sangsad and former Acting President of Bangladesh.

He described Jamiruddin Sircar as a capable and principled statesman, saying his contributions to the country's politics would be remembered with respect and that his death is an irreparable loss to the nation.

The government has intensified discussions with the BRICS-led New Development Bank (NDB), the World Bank, the Asian Development Bank (ADB) and other multilateral development partners to secure budget support and concessional financing, Finance Minister Amir Khosru Mahmud Chowdhury told parliament yesterday (12 July).

Responding to a question from MP Md Fazle Huda of Naogaon-3 during the question-and-answer session, the finance minister said the initiative is aimed at easing pressure on the country's foreign exchange reserves while ensuring adequate financing for priority development projects.

He said the government is exploring alternative sources of funding to maintain the continuity of development activities without placing additional strain on foreign exchange reserves.
"To this end, discussions are underway with the BRICS-led New Development Bank and other multilateral lending institutions on the possibility of obtaining budget support and loans on more flexible terms," the minister said.Khosru added that successful negotiations with development partners would strengthen the government's financial capacity and make it easier to secure funding for the implementation of priority development projects.

The government's outstanding debt has reached Tk22.06 lakh crore, including Tk9.59 lakh crore in external debt, Finance Minister Amir Khosru Mahmud Chowdhury told parliament today (12 July).

Responding to a question from MP Golam Rasul during the question-and-answer session, the finance minister said the government is pursuing policies to reduce reliance on borrowing by increasing revenue collection and transitioning from a debt-driven economy to an investment-led one.

He said the government is placing greater emphasis on boosting tax and non-tax revenues to cope with the growing burden of domestic and external debt.

"For the current fiscal year, the revenue-to-GDP ratio has been set at around 10.4%, with the primary objective of increasing revenue collection and reducing dependence on borrowing," he said.

The finance minister also said the government has adopted a Medium-Term Debt Management Strategy (MTDS) to lower borrowing costs, mitigate risks and strengthen debt management.

He said the strategy would enable more efficient management of the country's overall debt portfolio.

Referring to the policies announced in the budget for the current fiscal year, Amir Khosru said the government has launched initiatives to transform Bangladesh from a debt-dependent economy into an investment-driven one.

He said higher returns from public investment would help increase government revenue and reduce the need for borrowing to finance budget deficits.

The minister added that the government is also diversifying financing instruments to reduce interest costs, including expanding the use of sukuk and asset securitisation, alongside other alternative financing mechanisms.

While Bangladesh will continue to borrow from bilateral and multilateral development partners, the government will prioritise long-term concessional loans carrying lower interest rates and favourable repayment terms, he said.

In response to another question from MP Shahjahan Chowdhury, the finance minister said the government repaid external loans worth $4.65 billion during the recently concluded FY2025-26.

Of the total repayment, $3 billion was principal, while $1.65 billion was paid as interest, he added.

The minister said the government's election manifesto pledged to transform Bangladesh from a debt-driven economy into an investment-led one, and efforts have been underway since the government assumed office to keep external debt at a sustainable level.

He also said all externally financed projects and related loan proposals are being subjected to rigorous scrutiny before approval to ensure that unnecessary projects are not implemented using foreign borrowing.

The government is also giving priority to ensuring that externally financed projects align with its broader objectives of rebuilding and restoring the economy and implementing its election commitments, the finance minister added.

Sonali Aansh Industries PLC has been elevated to the "A" category from the junk "Z" category by the Dhaka Stock Exchange after completing the distribution of a 15% cash dividend to shareholders for the financial year ended 30 June 2025.

According to a DSE notification issued today (12 July), the company successfully disbursed the declared dividend, prompting the bourse to restore its status to the regular trading category with effect from the same day.

The company's share price rose 3.45% to Tk224.7 following the announcement.

Under the DSE's listing regulations, companies are placed in the "A" category if they comply with key regulatory requirements, including holding annual general meetings (AGMs) on time and declaring and distributing the required dividends.

On the other hand, companies are classified under the "Z" category for failing to meet one or more listing requirements, such as not holding AGMs, failing to declare or distribute dividends, remaining non-operational for a prolonged period, or violating other regulatory obligations.

Market analysts said Sonali Aansh's return to the "A" category marks a positive step in terms of regulatory compliance. The company will regain the benefits associated with a regular trading category, and subject to meeting other eligibility criteria, its shares may once again qualify for margin loan facilities. The reclassification is also expected to improve investor confidence and enhance the stock's trading liquidity.

However, analysts cautioned that investment decisions should not be based solely on a company's trading category. Investors should also consider its earnings, cash flows, financial strength and long-term business prospects.

According to the company's latest unaudited financial statements, earnings per share (EPS) stood at Tk1.97 for the January-March quarter of 2026, compared with Tk1.81 in the same period a year earlier.

For the first nine months of fiscal 2025-26, EPS rose to Tk5.62 from Tk5.23 in the corresponding period of the previous fiscal year.

Meanwhile, net asset value per share jumped to Tk234.34 as of 31 March 2026 from Tk32.81 as of 30 June 2025. The company attributed the sharp increase to the revaluation of its assets carried out up to 31 December 2025.

A company's trading category is considered an important indicator for investors as it reflects its level of compliance with regulatory requirements, corporate governance standards and shareholder obligations. The DSE regularly reviews the compliance status of listed companies and revises their trading categories accordingly.

Analysts said regulators have recently tightened oversight of listed companies, particularly regarding dividend distribution, corporate disclosures and investor protection. As a result, companies that fulfil their regulatory obligations on time are increasingly being restored to higher trading categories.

Bangladesh Bank has increased the cash incentive for exports of domestically sourced textile products to 5% from 1.5% for FY2026-27, aiming to boost local value addition and strengthen export competitiveness, according to a circular issued today (12 July).

The enhanced support will apply to export-oriented domestic textile products receiving alternative cash assistance instead of bonded warehouse and duty drawback facilities.

The move is expected to particularly benefit the country's readymade garment sector by encouraging greater use of locally produced yarn and fabrics.

To qualify for the incentive, exporters must meet specific conditions. Members of the Bangladesh Garment Manufacturers and Exporters Association, Bangladesh Knitwear Manufacturers and Exporters Association, and other relevant trade bodies will be required to submit documentary proof that their raw materials, including yarn and fabrics, were sourced from domestic suppliers.

Industry stakeholders said the higher incentive would encourage the use of local inputs, increase domestic value addition and enhance the competitiveness of Bangladesh's export sector in global markets.

Bangladesh’s inward remittance recorded a robust double-digit growth at the start of the new fiscal year 2026–27, with US$1.15 billion in the first 11 days of July, according to the latest data released by Bangladesh Bank.

This marks a significant 11.6 percent monthly growth compared to the corresponding period of the previous fiscal year, when the country received $1.03 billion between July 1 and July 11, 2025.

The central bank’s detailed breakdown indicates that the flow of foreign currency picked up pace significantly toward the end of the first week of July. In just a three-day window between July 9 and July 11, 2026, Bangladeshi expatriates sent$191 million through banking channels.

Financial analysts and central bank officials attribute this strong upward trajectory to the recent stabilization of the interbank foreign exchange market and competitive exchange rates offered by commercial banks. The steady use of banking channels instead of informal networks (like Hundi) has significantly buoyed the state’s incoming foreign currency receipts.

The sustained surge in remittance inflows brings a much-needed sigh of relief for macroeconomic policymakers.

This steady influx is expected to provide a crucial buffer to Bangladesh’s gross foreign exchange reserves and help ease the ongoing balance of payment pressures during the first quarter of the current fiscal year.

The Bangladesh Bank will issue non-performing loan (NPL) resolution guidelines by December as part of its banking sector reform commitments under the proposed new loan programme with the International Monetary Fund (IMF), according to central bank officials.

The commitment was conveyed to an IMF delegation during a meeting at Bangladesh Bank yesterday (12 July), senior officials familiar with the discussions told The Business Standard. The meeting was attended by the central bank governor and deputy governors.

A senior official who attended the meeting said the central bank is preparing the guidelines primarily for banks with non-performing loan ratios above 10%. "If the guidelines are issued by December this year, they are expected to come into effect from 2027.

The official said the guidelines form part of Bangladesh's commitments under negotiations for a new IMF loan programme and are aimed at reducing bad loans in the banking sector. As of March this year, the country's overall NPL ratio stood at more than 32%.

The IMF delegation, led by Bangladesh Mission Chief Ivo Krznar, arrived in Dhaka yesterday for a five-day visit to assess the feasibility of the proposed $4.5 billion loan programme.

What were discussed at meeting

During yesterday's meeting, IMF officials also sought an update on the repeal of the controversial Section 18(ka) of the Bank Resolution Act. Bangladesh Bank informed the delegation that the government would remove the provision soon, according to officials.

The provision has drawn criticism because it could allow former owners of resolved or merged banks to regain ownership or control. Concerns have been particularly acute over banks previously controlled by the S Alam Group, especially several Islamic banks.

The IMF delegation also sought updates on Bangladesh's overall macroeconomic situation, including inflation, the exchange rate and the central bank's monetary policy stance.

According to officials, the IMF questioned why Bangladesh Bank's US dollar purchases through auctions were consistently clustered within a narrow price range.

The central bank explained that the interbank exchange rate serves as the benchmark, with recent dollar purchases made between Tk122.60 and Tk122.75, while the prevailing interbank rate currently stands at Tk122.85.

The official said the IMF sought an explanation for the central bank's recent decision to lower the interest rate on trade finance. The IMF also asked whether banks would be able to access trade finance at SOFR plus 3% under the revised pricing framework.

Bangladesh Bank officials replied that the decision had been taken after consultations with commercial banks and was intended to stimulate private sector credit growth.

Bangladesh Bank recently issued a circular reducing the interest rate ceiling on trade finance to SOFR plus 3%. Following the announcement, the Association of Bankers, Bangladesh urged the central bank to reconsider the decision in a letter.

The IMF delegation also raised concerns over restrictions on the foreign exchange forward market. Officials noted that during the Iran conflict, importers sought to hedge exchange rate risks by entering into forward contracts while opening letters of credit (LCs).

At the time, Bangladesh Bank verbally instructed banks not to facilitate forward bookings, fearing they could fuel demand for dollars and push up the exchange rate.

The IMF, however, stressed that Bangladesh should develop a more active forward foreign exchange market, arguing that forward contracts are an essential risk management tool that allows businesses to hedge against future currency volatility.

The delegation advised the central bank to facilitate, rather than discourage, the use of forward bookings in the dollar market.

Bangladesh Bank officials said the IMF would review the country's current economic conditions before formally considering the request for a new lending programme.

Bangladesh first secured a $4.7 billion IMF programme in 2023 to help address a foreign exchange reserve crisis. The programme later expanded to $5.5 billion after additional financing was approved under the Resilience and Sustainability Facility (RSF).

After disbursing $3.59 billion in five instalments, the IMF suspended further disbursements last December after Bangladesh failed to meet several programme conditions.

Following the change in government, the BNP administration cancelled the previous programme and applied for a new IMF loan package under revised reform commitments.

Meanwhile, Finance Minister Amir Khosru Mahmud Chowdhury said Bangladesh will pursue the new IMF loan that safeguards public interest and the country's economic security.

The government will not participate in any loan programme that undermines the interests of the people, he said while speaking to journalists at the Secretariat yesterday.

Bangladesh's financial architecture is facing significant pressure as the state-backed contingent liabilities for underperforming State-Owned Enterprises (SOEs) and autonomous bodies reached Tk 400.12 billion in sovereign guarantees till the last fiscal year, officials say.

This massive debt pile, triggered by heavy overseas and domestic borrowing by core public sectors like Biman Bangladesh, Bangladesh Power Development Board (BPDB), and state-run fertiliser companies, has surfaced as a major macroeconomic threat, they add.

A series of independent reviews and global assessments warn that these liabilities are pushing public finances toward an unsustainable path.

A recent World Bank study jointly produced with the Policy Research Institute (PRI) reveals that structural inefficiencies, operational leaks, and subsidies to these SOEs cost the national exchequer nearly Tk 882 billion in a single fiscal year.

This massive drain accounts for roughly 1.7 per cent of the nation's gross domestic product (GDP), suffocating the budget available for critical sectors like education, healthcare, and social safety nets.

According to official sources, the concentrated accumulation of debt centres heavily on three capital-intensive sectors - power (BPDB and power plants), aviation (Biman Bangladesh), and agriculture (fertiliser/ Bangladesh Chemical Industries Corporation).

The energy and power sector stands as the single largest contributor to this fiscal risk with the highest amount of sovereign guarantees, bleeding the heaviest losses across the economy.

Driven by controversial contracts, independent power producer (IPP) capacities, and delays, the government has extended over Tk 416.9 billion in guarantees to back 16 massive projects, including the Patuakhali, Payra, and Rampal 1,320MW thermal plants.

Compounding the crisis, Energy Minister Iqbal Hassan Mahmood recently said in parliament that the state was legally bound by these sovereign guarantees, meaning the complex contracts could not be easily modified or cancelled, tying the government's hands over late payment fees and capacity charges.

The national flag carrier represents the second-highest consumer of government-backed security, officials say.

Biman Bangladesh Airlines has accumulated Tk 109.09 billion across 15 aircraft acquisition and engine procurement projects.

Despite massive state backing, the airline remains classified under "high to very high risk" due to operational mismanagement and poor revenue returns, officials say.

To insulate local farmers from international price volatility and ensure a steady domestic food supply, Bangladesh Chemical Industries Corporation (BCIC) and various state-run fertiliser entities secured Tk 64.38 billion in state-guaranteed loans, they say.

Operating on high-cost imports combined with heavily subsidised retail distribution, these corporations have been fundamentally unable to generate the independent revenues needed to clear their commercial liabilities. The Finance Division's latest audit outlines a bleak picture of the institutional stability of public assets.

Over 81 per cent of Bangladesh's SOEs are currently operating under moderate to very high levels of financial risk, the report says.

The World Bank performance index ranks Bangladesh's public enterprises significantly lower than its regional neighbours.

While state-backed entities in India recorded a positive 9.7 per cent return on assets (ROA) and Vietnam achieved an 11.9 per cent return, Bangladesh's non-financial SOEs crashed into the negative, posting a negative 5.2 per cent return on assets.

A Ministry of Finance official says amid a declining tax-to-GDP ratio, rising inflation, and tight foreign exchange reserves, the ministry has launched aggressive damage-control policies to rein in the long-term exposure like the Sovereign Guarantee Penalty Fees to disincentivise unchecked reliance on state cushions, while the government has introduced a 0.25 per cent upfront fee on all sovereign loan guarantees for state, autonomous, or government-controlled entities.Finance

A senior finance ministry official says although there was no incident of sovereign loan default by the SOEs, the government plans to amend the existing guideline to streamline the process and further strengthen the debt payment capacities of the SOEs.

While the total outstanding sovereign liabilities showed a microscopic dip by late last year due to temporary bank repayments, economists warn that without deep corporate governance changes, these Tk 400-billion-plus structural safety nets remain a critical ticking clock for the national economy.

Policy Exchange Bangladesh Chairman Masrur Reaz tells The Financial Express that although sovereign guarantees by the government of developing nations are not very unusual, the fruitful utilisation of the borrowing will have to be ensured.

If the return on the loans, where the government provides guarantees, is high, only those should be considered for providing the security, he says.Banking

He also says if the government goes for providing guarantees for the less important projects or programmes of the SOEs and autonomous bodies, the country's fiscal governance as well as the rating will be downgraded.

The Bangladesh Securities and Exchange Commission (BSEC) plans to overhaul listing rules to attract large, well-governed companies to the stock market by allowing them to list through direct listing after selling just 10% of their shares.

BSEC Chairman Masud Khan announced the plan today (9 July) at the "CMJF Talk" organised by the Capital Market Journalists' Forum (CMJF) in Dhaka.

Currently, only state-owned enterprises can use the direct listing mechanism, and they must float at least 25% of their shares. Masud said the rules would be amended within the next three months so that eligible private companies, including firms such as Unilever Bangladesh and Incepta Pharmaceuticals, can list by offloading only 10% of their shares.

He said the move is intended to address one of the biggest barriers to attracting quality companies to the capital market.

"The current IPO process is lengthy and cumbersome. Entrepreneurs have to submit stacks of documents and wait one and a half to two years for approval. As a result, many good companies prefer bank financing over raising funds from the stock market," he said.

The BSEC is simplifying the IPO and Public Issue Rules to make fundraising through the market faster and more efficient while maintaining regulatory oversight.

To strengthen market surveillance, the commission has delegated greater authority to the Dhaka Stock Exchange (DSE). The exchange will now be able to take immediate action against abnormal price movements and suspected market manipulation without waiting for prior approval from the BSEC. It has also been given the authority to determine circuit breakers.

The regulator is also considering suspending trading in companies that have remained non-operational for a prolonged period to improve market quality.

Highlighting the importance of institutional investment, Masud said the BSEC plans to introduce a certification system for financial advisers to help retail investors make informed investment decisions. The Mutual Fund Rules are also being revised to encourage greater participation by institutional investors.

On enforcement, he said legal reforms are underway to ensure stricter punishment for market manipulators.

"The previous commission imposed fines worth Tk1,500 crore, but only Tk33 lakh could be recovered because of legal complications," he said. The government is considering establishing special court benches for capital market cases and allowing the BSEC to file cases directly with capital market tribunals.

The BSEC is also working with Bangladesh Bank to reduce the securities settlement cycle from T+2 to T+1. Plans are also in place to strengthen the bond market by allowing bonds to be listed on the main board instead of the Alternative Trading Board, while preparations are underway to introduce a derivatives market.

The commission chairman said discussions with the finance ministry on reducing taxes on dividend income, easing restrictions on mutual fund investments and providing tax exemptions for zero-coupon bonds have been positive.

Responding to questions on recent layoffs at the DSE, he said staffing decisions are an internal matter for the exchange, though issues involving dismissed BSEC employees would be resolved this month.

The event was chaired by CMJF President Monir Hossain and moderated by General Secretary Ahsan Habib Russell.

The exodus of international capital from Bangladesh's premier bourse accelerated to an alarming pace in June, as foreign investors offloaded shares worth Tk358 crore – the largest monthly net sell-off so far this calendar year.

Despite recent attempts by the central bank to simplify tax repatriation procedures, global fund managers appear to be voting with their feet, driven by deep-seated concerns over regulatory interference and the shifting direction of the country's economic management, according to the stock market analysts.

Data from the Dhaka Stock Exchange (DSE) reveals a staggering imbalance in trade, with total foreign purchases amounting to a negligible Tk6 crore against the massive sell-volume, leaving the market's international participation at a historic low.

The June outflow almost doubled the Tk161 crore in foreign sales recorded in May and was nearly three times higher than the Tk124 crore seen in April.

This persistent retreat by overseas investors comes at a time when the market is struggling to find a stable footing, as the loss of institutional foreign support drains liquidity from high-quality, large-cap scrips.

According to the DSE, portfolio investment data show that while foreign funds maintain holdings in approximately 130 firms, they actively trimmed their stakes in 19 major companies during June, while showing marginal interest in only 15 others.

The brunt of the selling pressure was felt by the market's most prestigious blue-chip entities.

BRAC Bank, long a staple of international portfolios, witnessed the most significant exit, with foreign investors offloading shares valued at a massive Tk186 crore. This move saw their stake in the bank slide from 35.89% in May to 34.69% in June.

Telecommunications leader Grameenphone followed a similar path, recording Tk42 crore in foreign sales as its international holding dropped to a mere 0.33%.

Other defensive giants such as Square Pharmaceuticals, Marico Bangladesh, and Renata also faced heavy liquidations, with sell values reaching Tk35 crore, Tk23 crore, and Tk16 crore, respectively.

Even British American Tobacco (BAT) Bangladesh and Beximco Pharmaceuticals were not spared, seeing double-digit crore outflows as global funds recalibrated their exposure to the Bangladesh market.

In sharp contrast to the aggressive selling, the appetite for fresh investment remained remarkably thin.

While foreign investors increased their holdings in a handful of companies like Shasha Denims, ITC, and Premier Cement, the monetary value of these entries was insufficient to offset the broader exodus.

Shasha Denims attracted Tk1.24 crore in new foreign capital, while ITC and Premier Cement saw inflows of approximately Tk1.10 crore and Tk1 crore, respectively. Marginal increases were also noted in LafargeHolcim Bangladesh, IDLC Finance, and Jamuna Oil, though analysts described these as minor portfolio adjustments rather than a renewed vote of confidence in the market.

Market experts and industry leaders point to a growing disconnect between the regulator's intentions and investor perceptions.

Moniruzzaman, managing director of Prime Bank Securities and senior vice president of the DSE Brokers Association (DBA), provided a blunt assessment of the situation. He told The Business Standard that renowned global investment firms are increasingly dissatisfied with the performance and policy direction of the central bank.

He further said, "In particular, the way Governor Ahsan H Mansur was removed has raised concerns among foreign investors about the future direction of the country's economy."

He also criticised the Bangladesh Bank's recent directive requiring commercial banks to maintain paid-up capital of at least Tk2,000 crore to qualify for dividend declarations.

According to Moniruzzaman, the move effectively bypasses the globally recognised Basel III framework and penalises shareholders of otherwise healthy banks. Furthermore, the central bank's decision to cap the interest rate spread – the gap between deposit and lending rates – at a maximum of 4% is being viewed as a regressive step.

"This type of regulatory interference destroys the confidence of foreign investors," he observed. He warned that the central bank's current trajectory is moving the country toward what is known as a "command economy."

In such a system, the central government or regulator controls all major economic decisions, ignoring the fundamental market forces of supply and demand to dictate exactly what is produced and how it is priced.

For international fund managers who prioritise market-driven dynamics and transparency, the shift toward a command-style approach makes the Bangladesh equity market appear increasingly high-risk and unattractive.

The irony of the situation is that this massive sell-off occurred despite a landmark policy shift aimed at doing exactly the opposite.

On 20 May, the Bangladesh Bank issued a circular eliminating the long-standing requirement for an auditor's certificate for every single transaction made by non-resident investors.

Previously, foreign investors were forced to obtain a certificate from a chartered accountant for every trade to determine capital gains tax before funds could be reinvested or repatriated – a cumbersome process that caused significant delays and increased compliance costs.

Under the new rules, authorised dealer banks now handle the tax withholding directly from sale proceeds, allowing for immediate credit to Non-Resident Investor Taka Accounts (NITA).

Although 360 companies are listed on the Dhaka Stock Exchange (DSE), just 10 account for nearly 40 percent of its total market capitalisation, showing the limited depth of the local capital market.

Analysts say the concentration leaves investors with relatively few quality stocks, discourages institutional participation and keeps the market small compared with regional peers.

Grameenphone, the country’s largest listed company, alone accounts for almost one-tenth of the DSE’s total market capitalisation of Tk 360,895 crore. It is followed by Square Pharmaceuticals and Robi Axiata. Together, the three companies make up about one-fifth of the market value.

Market capitalisation is calculated by multiplying a company’s share price by its outstanding shares. The combined value of all listed companies represents the total market capitalisation of the exchange.

Majority-owned by Norway’s Telenor, Grameenphone ended fiscal year 2025-26 with a market value of Tk 35,053 crore. It had 135 crore outstanding shares, while its stock closed the year at Tk 259.

According to DSE data, Square Pharmaceuticals ranks second with a market capitalisation of Tk 19,856 crore, followed by Robi Axiata at Tk 17,075 crore. BRAC Bank, Walton Hi-Tech Industries, British American Tobacco Bangladesh, Marico Bangladesh, United Power Generation, Berger Paints and LafargeHolcim Bangladesh complete the top 10.

“This shows that the market has a lower number of giant companies,” said Saiful Islam, president of the DSE Brokers Association (DBA). “When the market does not have enough good and big companies, investors do not feel interested in coming here.”

Weak investor participation is reflected in the sharp fall in beneficiary owner (BO) accounts, which dropped to 16.75 lakh at the end of fiscal year 2025-26 from 31.53 lakh on July 1, 2016.

Saiful said the market needed more large, fundamentally strong companies and suggested direct listing could be considered to bring some of them onto the exchange.

The shrinking pool of highly valued companies has become more visible after the removal of the floor price mechanism.

Beximco, which had a market value of Tk 10,385 crore only a few months ago while its share price remained fixed under the floor price, has since seen its valuation fall to Tk 2,763 crore as the stock declined sharply.

After the political changeover in August 2024, the company faced a series of setbacks. Its factories remained closed, it has not published financial statements for the past two years, and its share price dropped to Tk 28 on Thursday last week from Tk 110 two months earlier.
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FEW HIGH-VALUE COMPANIES

Shahidul Islam, chief executive officer of VIPB Asset Management, said Bangladesh simply has too few companies capable of achieving large market valuations.

“There are a few large business groups, but the number of truly large companies is limited,” he said.

According to him, multinational firms such as Standard Chartered, HSBC and MetLife could each have exceeded Tk 10,000 crore in market value had they operated as locally listed companies instead of branches. Unilever and several local banks also have similar potential.

Bangladesh has only five listed companies with market capitalisation exceeding $1 billion. Grameenphone is valued at $2.84 billion, followed by Square Pharmaceuticals at $1.61 billion, Robi Axiata at $1.38 billion, BRAC Bank at $1.23 billion and Walton Hi-Tech Industries at $1.08 billion.

By comparison, Pakistan’s largest listed company Oil & Gas Development Company has a market capitalisation of $5.17 billion. Six Pakistani companies are valued above $2 billion and nine exceed $1 billion.

Shahidul said many Bangladeshi businesses have failed to build sustainable, profit-driven enterprises. “One of the main reasons is that many businesses in Bangladesh are not run primarily to generate sustainable profits but rather to facilitate rent-seeking and asset extraction.”

“The banking sector, for example, should have produced several banks with valuations of this scale. Instead, widespread looting and capital flight have prevented them from reaching that level.”

“A company valuation is fundamentally based on its future profit potential. Therefore, if a company cannot generate strong and sustainable earnings, it will never achieve a high valuation,” he said.

He said highly valued companies usually shared several characteristics, including strong business fundamentals, genuine profitability, sound corporate governance, quality products and services, and a consistent ability to create value for shareholders.

“Unfortunately, many companies in Bangladesh lack this fundamental business mindset and good intentions. As a result, they fail to command high valuations.”

He also said many companies underreported profits to reduce tax liabilities, contributing both to Bangladesh’s exceptionally low tax-to-GDP ratio and its low market capitalisation-to-GDP ratio.

LARGE FIRMS REMAIN OFF THE MARKET

Prof Abu Ahmed, chairman of the Investment Corporation of Bangladesh (ICB), said Bangladesh’s largest companies remain much smaller than those in comparable economies.

“Leaving aside international comparisons, the gap is massive even when compared to our neighbours. For instance, compared to any of the top ten companies in India, our large companies are only a quarter of their size.”

“Even the pharmaceutical companies in Sri Lanka or Pakistan are much larger than ours,” he added. “Among the companies in our country, only Grameenphone might come close in size to similar telecom companies in Pakistan or Sri Lanka.”

Prof Ahmed said it is natural for the top 10 companies to account for around 40 percent of market capitalisation. However, the broader problem is the shortage of large listed companies.

“It is quite natural, nothing unusual at all, for the top ten companies in our market to contribute 40 percent of the total market share. In fact, this is a good thing in one aspect; at least these large companies adhere to rules and regulations and regularly pay out dividends, which works in favour of general investors.”

He said Bangladesh has several large and successful businesses that have chosen to remain outside the stock market.

He cited Unilever and Incepta as examples.

“A multinational company like Unilever is two to three times larger than others, and a pharmaceutical company like Incepta ranks second in terms of turnover, yet they are not on the stock exchange. It is vital for these kinds of good, large companies to enter the capital market.”

“One of the major limitations of our economy is that, to this day, not a single company from Bangladesh has become globally known. To change this scenario, our promising companies must not only maintain high quality but also grow significantly in size,” Ahmed concluded.

Five consecutive days of heavy rainfall and rough seas have severely disrupted cargo handling at Chattogram Port, slowing handling and deliveries and raising concerns among businesses over potential supply chain disruptions across the country.

The adverse weather has halted lighter vessel operations at the port's outer anchorage, preventing imported cargo from being transported to destinations nationwide.

At the same time, waterlogging at port terminals and inland container depots (ICDs) has allegedly damaged imported goods, prompting importers and customs clearing and forwarding (C&F) agents to seek compensation. However, the Chattogram Port Authority (CPA) has rejected liability, describing the damage as an "Act of God."

Business leaders warned that prolonged disruptions could lead to shortages of essential commodities, including wheat, edible oil, sugar, fertiliser, clinker and other industrial raw materials in regional markets.

The disruptions have already hit wholesale trade at Chattogram's Khatunganj, the country's largest food commodity market, where daily business has dropped sharply.

Cargo handling remains below normal

Port data show cargo handling and container delivery have remained significantly below normal levels over the past several days, although operations have gradually improved.

Container handling fell to 4,797 TEUs on 7 July, compared with the port's normal daily average of 9,000 to 11,000 TEUs. It increased to 5,230 TEUs on 8 July, 6,414 TEUs on 9 July and 7,146 TEUs on 10 July, yet well below the regular average.

Container deliveries also remained subdued. The port delivered only 2,606 TEUs on 8 July, rising to 2,820 TEUs on 9 July and 3,452 TEUs on 10 July, still well below normal operating capacity.

Businesses said the slower movement of cargo is delaying industrial production and affecting domestic distribution networks.

More than 60 ships stranded

Sarwar Hossain Sagar, president of the Bangladesh Berth Operator and Ship Handling Operators Association, said more than 60 vessels are currently waiting at Chattogram Port's outer anchorage because rough seas have prevented offshore cargo operations.

"Each idle vessel is incurring demurrage costs of around $25,000 to $30,000 per day," he said.

According to him, the industry is losing between $1.2 million and $1.5 million every day, equivalent to roughly Tk15 crore to Tk20 crore. Over the past five days, cumulative losses have exceeded Tk100 crore.

He added that between 4,000 and 5,000 workers involved in offshore cargo handling have remained without work during the suspension.

Parvez Ahmed, spokesperson for the Bangladesh Water Transport Cell, said no cargo has been transferred between mother vessels and lighter vessels for the past five days because of rough sea conditions.

"Lighter vessels are waiting in the Karnaphuli River and Patenga offshore until weather conditions improve," he said. "Cargo transportation through inland waterways will remain suspended as long as the sea remains rough."

He noted that more than 70% of the country's domestic cargo transportation moves through waterways. Continued disruption, he warned, could affect supplies in warehouses across the country, particularly for wheat, sugar, edible oil and other essential commodities.

The impact is already being felt at Khatunganj, Chattogram's largest wholesale market for food commodities.

Aminur Rahman Mintu, general secretary of Khatungonj Trade and Industry Association, said daily transactions that usually range between Tk200 crore and Tk250 crore have fallen to only around Tk30 crore because of transport disruptions and slower cargo arrivals.

He warned that if supplies from Chattogram continue to slow, rural markets may also experience shortages of essential food commodities.
Garment factories face production disruptions

The adverse weather has also affected the readymade garment sector.

SM Abu Tayyab, director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said flooding in low-lying residential areas prevented many workers from reporting to factories over the past five days.

"Attendance declined significantly on at least two working days, forcing some factories to reduce production while others temporarily suspended operations," he said.

Factories will have to operate additional shifts to recover lost production, he added.

He also warned that delays in releasing imported raw materials from the port could create shortages of industrial inputs and further disrupt garment manufacturing if normal operations are not restored quickly.

He urged authorities to ensure full-scale port operations as soon as weather conditions permit.
Importers seek compensation for damaged cargo

Importers and freight operators alleged that waterlogging at port yards and several private container terminals damaged imported cargo stored in containers.

Captain Salahuddin, president of the Bangladesh Shipping Agents Association, said water accumulated because of inadequate drainage facilities inside the port.

"A considerable amount of cargo has reportedly been damaged, but no formal assessment has yet been conducted," he said.

He urged the port authority to assess losses and compensate affected importers.

Khairul Alam Sujan, former vice-president of the Bangladesh Freight Forwarders Association, said the flooding exposed weaknesses in the port's drainage infrastructure.

"Modern ports should have alternative drainage systems capable of quickly removing rainwater during extreme weather," he said.

He alleged that waterlogging occurred not only inside the port yard but also at four or five private container depots, causing damage to importers' goods.

According to him, depot operators should also share responsibility where inadequate infrastructure contributed to the losses.

Despite repeated attempts, Ruhul Amin Sikder, secretary general of the Bangladesh Inland Container Depot Association (BICDA), could not be reached for comment on the alleged damage to goods at the depots as he did not respond to calls from this correspondent.
Port disclaims liability

On Friday, the Chattogram Port Authority issued a public notice informing importers, exporters, shipping agents and other port users that it would not accept responsibility for any losses or damages caused by continuous rainfall and flooding inside port-protected areas since 5 July.

The notice described the incident as an "Act of God" and cited Regulation 199(14) of the Regulations for Working of Chittagong Port (Cargo & Container), 2001, stating that the authority is legally immune from compensation claims arising from such natural calamities.

The notice further said the CPA disclaims any liability for compensation under both the Chittagong Port Authority Act, 2022 and the Regulations for Working of Chittagong Port (Cargo & Container), 2001.

Despite repeated attempts, CPA Secretary Refayet Hamim could not be reached for comment on the alleged damage to goods at the port terminals as he did not respond to calls from this correspondent.

The stock market regulator is set to suspend trading in shares of non-operational companies as part of a broader market reform aimed at protecting investors and improving market integrity, said its new chief.

"There is no other market in the world where shares of closed companies continue to be traded," said Masud Khan, chairman of the Bangladesh Securities and Exchange Commission (BSEC), as the chief guest at the CMJF Talk, organised by the Capital Market Journalists' Forum (CMJF) at the CMJF Auditorium in the capital on Thursday.

"In many countries, [share] trading is automatically halted if a company's production remains suspended for three consecutive months." In Bangladesh, many companies have remained non-operational for 10-20 years but their shares are still transacted on the bourses.

The BSEC chairman said the commission had already delegated greater regulatory authority to the Dhaka Stock Exchange (DSE), enabling it to take real-time action against abnormal price movements and suspicious trading without seeking prior approval from the regulator.

Previously, the DSE needed approval from the BSEC before any action, creating scope for irregularities to continue for longer periods.

"We have empowered the stock exchanges to take immediate action and also given them the authority to determine circuit breakers. Such deregulation is essential for a more efficient market," Mr Khan said.

Meanwhile, the DSE on Thursday suspended trading of shares of two more closed companies-Usmania Glass Factory and Meghna Pet Industries-after detecting abnormal price surges.

Presently, the number of closed companies is 34.

The BSEC chief also outlined plans to introduce day netting for selected quality stocks to improve liquidity and attract more investors to the secondary market.

He said the proposal for introducing day netting had recently been submitted by the DSE Brokers Association. However, the facility cannot be implemented for all listed securities under the current market conditions.

"We are considering introducing day netting initially for quality companies. The facility may begin with around 30 fundamentally strong stocks," Mr Khan said.

The BSEC chief also described the revival of the mutual fund industry as one of his top priorities, saying a strong mutual fund sector is essential for the development of the country's capital market.

"Retail investors often lack the expertise to identify fundamentally sound companies. We want to encourage them to invest through professionally managed mutual funds," he said.

To improve investment decisions, the regulator plans to introduce an internationally benchmarked certification programme for financial advisers while revising the Mutual Fund Rules.

To strengthen oversight of brokerage houses, the BSEC will classify brokers into three risk categories-low, medium and high risk.

Brokerage firms labelled as highly risky will be subject to surprise inspections, the BSEC chief said, adding that investor approval through mobile phone or email before share transactions would be made mandatory to strengthen investor protection.

Responding to a question on bringing multinational and large domestic corporations to the stock market, Mr Khan said the BSEC will amend the rules to allow private companies to be directly listed.

"If they still do not come to the market, despite using public money through bank loans, we will fix a ratio. Companies exceeding that threshold will be required to list in the public interest," Mr Khan added.

The BSEC is also reviewing the margin rules and public issue rules to make the market more investor-friendly.

The BSEC chairman said the existing margin loan regulations contain too many restrictions, making it difficult for investors to access leverage. A draft of the revised rules will be published next week, after which obtaining margin loans is expected to become much easier for good investors, Mr Khan added.

As part of broader market reforms, the securities regulator is also preparing to simplify the initial public offering (IPO) process and introduce a direct listing framework to encourage more fundamentally strong and reputable companies to enter the stock market.

Mr Khan said the existing IPO process discourages quality companies from going public because of lengthy approval procedures and excessive documentation.

"Companies have to wait nearly one-and-a-half years and submit piles of documents for an IPO. Bank financing is much quicker. We have to simplify the IPO process if we want fundamentally strong companies to come to the market," he said.

The regulator also plans to expand direct listing facilities. Under the proposed framework, private companies will be allowed to list by offloading only 10 per cent of their shares, compared with the existing provision under which only state-owned enterprises can directly list by offering at least 25 per cent of their shares.

To deepen the debt market, government and corporate bonds will be shifted from the Alternative Trading Board to the main board of the stock exchanges, while preparations are also underway to introduce derivatives trading.

The BSEC is also gearing up to install T+1 settlement, reducing the settlement cycle from T+2. Bangladesh Bank is currently working with the commission on the implementation framework.

To strengthen market surveillance, Mr Khan said an artificial intelligence (AI)-based monitoring system would be introduced within a year. The DSE has already been instructed to bring the necessary changes for the new surveillance platform.

Mr Khan acknowledged that enforcement has long been one of the weakest aspects of Bangladesh's capital market.

He said the BSEC is considering filing criminal cases instead of civil suits when taking action against market manipulation, irregularities and fraud to make enforcement more effective.

The BSEC chief said the previous commissions had imposed around Tk 15 billion in penalties, of which only about Tk 3.3 million was recovered because most cases remained pending with the courts.

To address the problem, the commission is pursuing legal reforms, including the establishment of a dedicated HC bench for capital market cases and authority to file cases directly with the capital market tribunal to ensure quicker punishment for offenders.

The BSEC chairman also defended the commission's decision to remove the floor prices of two stocks despite criticism, saying the move was necessary to restore normal market functioning.

Referring to the recent regulatory initiatives, Mr Khan said the regulator had intervened to prevent the delisting of Beximco Pharmaceuticals from the London Stock Exchange in order to protect Bangladesh's reputation in international capital markets.

Responding to a query on the dismissal of DSE employees, Mr Khan said recruitment and termination of the exchange's employees fall entirely under the authority of the stock exchange and that the BSEC has no role in such administrative decisions.

However, he expressed hope that issues relating to dismissed BSEC employees would be resolved within this month.

Reflecting on his appointment, Mr Khan said he had initially declined the position because many people warned him that almost everyone who had previously served at the BSEC had left office with a damaged reputation.

"I accepted the responsibility only after receiving assurances from the government's top leadership that I would have complete independence to carry out reforms."

CMJF President Md Munir Hossain presided over the event, while General Secretary Ahsan Habib conducted the programme.

A significant amendment to Bangladesh's income-tax law has paved the way for taxing foreign digital businesses that have no physical presence in the country but serve 0.1 million or above Bangladeshi users.

The new provision, effective from July 1, targets non-resident entities-both companies and individuals -- that earn income from digital activities involving users in Bangladesh. Only the portion of income attributable to Bangladesh would be subject to tax.

Under the amendment, a non-resident entity will be deemed to have a permanent establishment (PE) in Bangladesh if it has 100,000 or more digital or online customers or subscribers in the country.

Tax officials say information on the subscriber base of such digital businesses, including online content creators and "view-based" businesses, would be obtained from the Bangladesh Telecommunication Regulatory Commission (BTRC).

However, Bangladeshi freelancers and local content creators will not fall within the scope of the new provision.

A senior tax official says view-based businesses, including YouTube channels, have grown rapidly in recent years, with many individuals and companies attracting millions of subscribers or viewers.

"The owners of such pages will be taxed under the new provision if they are non-resident entities and meet the prescribed threshold," says the official.

He adds that identifying the number of subscribers would not be difficult because subscriber counts are publicly displayed on most digital platforms.

"Bangladesh is already collecting tax at source on payments made to Google, YouTube, Netflix, Meta and other global technology companies when users pay subscription fees," he told The Financial Express.

The change has been introduced through the Finance Act 2026 by expanding the definition of Permanent Establishment under Section 2(92) of the Income Tax Act.

The amended provision now includes: "Any digital or online activity or presence in Bangladesh by a non-resident entity where such entity has 100,000 or more digital or online customers or subscribers."

Tax experts say the amendment represents one of Bangladesh's most significant attempts to bring the digital economy within the tax net by recognising a substantial digital presence even without a physical office.

Adeeb H. Khan, Senior Partner at Rahman Rahman Huq, says the measure could be viewed as a step forward in taxing digital businesses at a time when countries worldwide are struggling to determine how to tax cross-border digital activities.

"However, it could also give rise to double-taxation issues, depending on the provisions of Bangladesh's tax treaties with other countries," he notes.

Bangladesh currently has Double Taxation Avoidance Agreements (DTAAs) with 36 countries to prevent taxpayers from being taxed on the same income in both jurisdictions.

Snehasish Barua, Chartered Accountant and Partner at Snehasish Mahmud & Co., thinks the practical effectiveness of the new provision could be limited by those international tax treaties.

"Under Bangladesh's income tax law, the provisions of Double Taxation Avoidance Agreements prevail over domestic law," he says.

"Most existing tax treaties require a physical presence before a country can impose tax. Therefore, unless these treaties are amended, the new provision may not, in practice, enable Bangladesh to collect taxes from many foreign digital businesses."

He also cautions that implementing the measure without adequate research and careful consideration could create complications with Bangladesh's trading partners.

The amendment strengthens Bangladesh's legal framework for taxing the digital economy. Although the income-tax law already taxes income derived from electronic sales and digital services connected to Bangladesh, the revised definition of permanent establishment provides a stronger legal basis by treating a significant digital user base as creating a taxable presence.

The key challenge, however, will be implementation.

Tax analysts say the success of the measure will depend on whether the National Board of Revenue (NBR) can identify qualifying individuals and companies, determine the portion of profits attributable to Bangladesh, and enforce tax collection from non-resident digital businesses, particularly where tax treaty-obligations apply.