A high-level International Monetary Fund (IMF) delegation will arrive in Dhaka tomorrow (12 July) 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.

On the first day of the visit, IMF officials are scheduled to hold meetings with representatives from the finance ministry, Bangladesh Bank and other relevant agencies.
During the mission, which runs through 16 July, the delegation, led by IMF Bangladesh Mission Chief Ivo Krznar, will assess the government's economic reform agenda, policy priorities and the current macroeconomic situation.In tomorrow's meetings, the IMF is expected to seek the government's position on its reform plans, revenue mobilisation, subsidy reforms, banking sector restructuring, exchange rate policy and broader macroeconomic objectives.Finance ministry officials said the IMF will review Bangladesh's current economic conditions before deciding whether the institution will formally consider the country's request for a new lending programme.
Finance ministry officials expect that, if the current mission delivers a favourable assessment, formal negotiations on a new lending programme could begin after the IMF-World Bank Annual Meetings in October.During the five-day visit, the IMF will also review the BNP government's FY2026-27 budget, the medium-term budget framework, the Annual Development Programme (ADP) and major infrastructure projects.

The discussions will also cover revenue collection, tax policy, public expenditure, social safety net programmes, public sector wages and recruitment, as well as subsidies for electricity, gas, fuel, fertiliser and food. Officials will also discuss power sector capacity payments, banking reforms, implementation of the Bank Resolution Act, financing of state-owned enterprises, external debt management, commercial borrowing and risks related to foreign financing.

The IMF delegation is also scheduled to hold a separate roundtable discussion on Bangladesh's banking sector.

In an email sent on 26 June to the finance secretary and the Bangladesh Bank governor, Ivo Krznar wrote: "This is not a loan negotiation mission, but rather a 'fact-finding staff visit'. The purpose of the visit is to gain a direct understanding of the government's policy objectives, reform agenda and priorities, and to prepare the IMF's internal assessment based on that information."

Krznar added: "The information gathered during this visit will form the basis for the IMF's macroeconomic assessment and policy assumptions before any potential loan negotiations begin. It will also help determine where technical assistance may be required."

In 2023, the then Awami League government signed a $4.7 billion loan agreement with the IMF to address Bangladesh's foreign exchange reserve crisis. During the tenure of the interim government, additional financing under the Resilience and Sustainability Facility (RSF) increased the total programme size to $5.5 billion.

However, after disbursing $3.595 billion in five tranches, the IMF suspended further disbursements in December last year because Bangladesh failed to meet programme conditions. After taking office, the BNP government cancelled the previous programme and applied for a new loan package after accepting those conditions.

In his email, the IMF mission chief also referred to recommendations made in the latest Article IV Consultation report, which called for stronger revenue mobilisation, rationalisation of subsidies, accelerated banking sector reforms and a more market-based exchange rate regime.

The letter said the mission will examine how the current government plans to implement those recommendations, making the issue one of the central topics of the visit.

Krznar also wrote that the IMF primarily wants to listen to the government's views. The delegation will seek to understand the government's policy priorities, reform plans and responses to recent global and regional economic developments.

A senior finance division official, speaking on condition of anonymity, told The Business Standard that the government will highlight progress on adopting a market-based exchange rate, modernising monetary policy, implementing the Bank Resolution and Deposit Protection Act, introducing risk-based supervision and advancing climate-related reforms.

Several finance ministry officials said that if the mission's assessment is positive, formal negotiations on a new lending programme could begin after the IMF and World Bank Annual Meetings in Thailand in October. The government is seeking between $4 billion and $4.5 billion under the new programme.

A finance division official said, "If the IMF concludes that the government's reform agenda is realistic, its economic policy direction is credible and the foundation for a new programme has been established, it may send a negotiation mission to Bangladesh after the IMF-World Bank Annual Meetings in October. Formal discussions would then begin on the size of the new lending programme, reform conditions and the disbursement schedule."

The government should craft a single, comprehensive strategy covering every sector of the creative economy, from film and theatre to crafts and publishing, according to industry insiders.

Building a supportive policy ecosystem and setting clear result benchmarks are central to unlocking the sector’s potential nationally, they said at a virtual event organised by the Power and Participation Research Centre (PPRC) today.

The national budget for FY2026-27 has, for the first time, set aside Tk 800 crore for the creative economy -- Tk 300 crore in direct allocation and a further Tk 500 crore through Bangladesh Bank’s CSR fund.

The initiative aims to lift the sector's GDP contribution, create jobs for nearly five lakh people, and build a "Created in Bangladesh" brand spanning film, music, publishing, digital content, and design.

Redoan Rony, film director, producer, and CEO of streaming platform Chorki, said the country needs “a core strategy across all sectors, not just film or theatre, but crafts as well.”

He believes that Bangladesh has many talented people, but they need better skills development and training based on successful international models “We have a large workforce and low labour costs, from film to every other area. We can do this.”

Tanim Noor, film director and producer, said a dedicated taxation policy, such as a 50 percent tax exemption for the film industry, could significantly boost investment in Bangladeshi cinema.

He noted that nearly 200,000 people were directly employed in the industry during its golden era in the 1970s and '80s, counting cinema halls and related sub-sectors. Today, combining OTT platforms, cinema halls, and technologies like post-production and VFX, the sector could employ up to 10 lakh people.

The market size of this sector could be expanded to Tk 5,000 to Tk 10,000 crore, he said, adding that this would generate Tk 500 to Tk 1,000 crore in annual government revenue.

Luva Nahid Choudhury, director general of Bengal Foundation, called structural reforms and a central commission essential for the sector's sustainable development, along with legal enforcement of artists' intellectual property rights and royalties.

She noted that Indian artists have a right to non-transferable remuneration, while Bangladesh lacks proper copyright enforcement.

Mahrukh Mohiuddin, managing director of publishing company University Press Limited, said piracy, both traditional and digital, particularly the illegal spread of books online, has taken on epidemic proportions, breaking the backbone of publishers.

She blamed the country's “weak” copyright law and lack of proper enforcement for the rise in the illegal activity.

Bakar Bokul, playwright and creative director of theatre troupe Tarua, said governments have historically used the arts as a "propaganda machine," implementing their own agendas under the guise of cultural activism while genuine artists go unsupported, leaving theatre and other art forms trapped in this cycle.

Tauhid Bin Abdus Salam, managing director of Classical Handmade Products BD Limited, said expanding handicrafts into international markets requires blending traditional skills with designs and colours that meet global demand.

Hossain Zillur Rahman, executive chairman of PPRC, said Bangladesh's creative economy now needs a policy ecosystem to match its potential.

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

The country's premier bourse orchestrated a robust rally last week as the benchmark index successfully reclaimed the psychological threshold of 5,800 points, marking its highest level in nearly two years.

Buoyed by high-level political commitments toward capital market development and the prospect of significant regulatory easing, an aggressive buying spree by investors added approximately Tk6,000 crore to the total market capitalisation of the Dhaka Stock Exchange (DSE), said market participants.

The DSEX, the broad index of the Dhaka bourse, gained 60 points or 1.04% over the five trading sessions to settle at 5,804. This is the first time the index has closed above this level since September 2024.The blue-chip segment also mirrored this upbeat sentiment, with the DS30 index – comprising fundamentally strong companies – advancing by 15 points to settle at 2,177.The week's trading reflected a dominant bullish sentiment, as 251 issues managed to post gains against 122 that declined, while 15 remained unchanged.The primary catalyst for this sustained upward momentum was a dual dose of optimism from the highest levels of government and the regulator. Investor conviction was significantly restored after Prime Minister Tarique Rahman unveiled a comprehensive 17-point capital market reform agenda in parliament. Market participants perceived this move as a definitive signal that the government is prioritising the stability and growth of the financial sector, according to the market insiders.

Simultaneously, sentiment was further bolstered by reports that the newly appointed Chairman of the Bangladesh Securities and Exchange Commission (BSEC), Masud Khan, plans to overhaul and simplify margin loan regulations within the next fortnight. Investors expect these revisions to increase the liquidity flow and make trading more accessible for retail participants.

According to the weekly market review by EBL Securities, the indices maintained a positive trajectory for most of the week, despite a brief corrective phase mid-week. While a bout of profit-taking in recently appreciated blue-chip scrips caused a slight dip in the middle of the week, the downside was effectively checked by selective buying in momentum-driven stocks. Sentiment recovered fully in the final session as investors reacted positively to the reaffirmed policy commitments, allowing the index to finish the week higher.

Sheltech Brokerage Limited noted in its weekly review that the market's performance was largely shaped by this persistent buying interest. Although selling pressure intensified during the mid-week sessions as traders moved to lock in short-term gains, the resurgence of buyers following the prime minister's announcement and the BSEC Chairman's reform roadmap enabled the benchmark index to extend its winning streak.

The brokerage observed that while geopolitical uncertainties remain a background concern, the focus has shifted firmly toward domestic structural improvements.

Market participation remained healthy throughout the week, even though the daily average turnover saw a marginal decline of 3.49%, settling at Tk1,383 crore compared to the previous week's Tk1,433 crore.

Sector-wise participation showed that the textile sector was the most active, accounting for 18.3% of the total turnover, followed by general insurance at 11.9% and pharmaceuticals at 10.1%.

In terms of returns, the travel and leisure sector emerged as the top gainer with a 12.3% surge, followed by the jute sector at 6.3% and mutual funds at 5.6%.

In the individual scrip segment, Usmania Glass led the gainers' chart with a staggering 38.7% price appreciation, followed by Emerald Oil, which jumped 36.5%, and Renwick Jajneswar, which rose by 32.6%. Other notable performers included CAPM IBBL Mutual Fund and Phoenix Finance First Mutual Fund.

On the liquidity front, Malek Spinning, Beximco Pharmaceuticals, ITC, Beximco Limited, and BRAC Bank remained the most traded stocks, indicating sustained interest in both manufacturing and high-cap banking entities.

Conversely, the losers' list was dominated by several non-bank financial institutions and textile firms. FAS Finance faced the steepest decline, shedding 14.3% of its value, followed by Intech at 13.9% and Dulamia Cotton at 9.6%.

State-owned and listed Eastern Lubricants Blenders PLC has partnered with the authorised Bangladeshi distributor of US-based Ergon transformer oil as part of its strategy to diversify into higher-value speciality products.

According to a price-sensitive information (PSI) disclosure today (11 July), Eastern Lubricant signed a one-year agreement on 9 July with Premier Petroleum Products & Lubricants Limited (PPPLL), Ergon's authorised distributor in Bangladesh.

Under the agreement, the two companies will jointly market, sell and distribute Ergon-brand transformer oil to government organisations across the country.
The company's share price rose 0.94% to Tk1,889 on the Dhaka Stock Exchange on Saturday.

Transformer oil is a specialised insulating and cooling oil used in electrical transformers to dissipate heat and provide electrical insulation, helping improve the safety, efficiency and lifespan of transformers. It is widely used in power generation, transmission and distribution systems.

The company said the partnership would enable it to supply internationally recognised transformer oil to government institutions, strengthen its position in Bangladesh's specialised lubricant market, and support its broader expansion strategy.

A subsidiary of the Bangladesh Petroleum Corporation (BPC), Eastern Lubricants is the country's only state-owned lubricant manufacturer, producing, blending, marketing and distributing automotive, industrial, marine and specialised lubricants.

The company has been seeking to diversify beyond conventional lubricants in recent years. Industry observers view the Ergon partnership as a significant step towards that goal.

Market analysts said demand for transformer oil is expected to grow steadily as Bangladesh expands its electricity transmission and distribution network. Major public utilities, including the Bangladesh Power Development Board, Power Grid Bangladesh PLC, Bangladesh Rural Electrification Board and power distribution companies, require transformer oil to operate and maintain electrical equipment. Securing supply contracts with these organisations could support the company's revenue and long-term growth.

The company, however, did not disclose the agreement's financial value, expected sales volume or potential impact on earnings.

Earnings rise, cash flow weakens

Easter Lubricant also reported stronger financial performance for the first nine months of the current fiscal year.Earnings per share (EPS) rose to Tk28.64 in the July 2025-March 2026 period from Tk17.28 (restated) a year earlier. For the January-March quarter alone, EPS increased to Tk15.61 from Tk6.62 (restated).

Net operating cash flow per share (NOCFPS), however, fell to Tk34.77 from Tk57.68, which the company attributed to higher accounts receivable and increased cash payments to suppliers for product purchases.

Meanwhile, net asset value (NAV) per share rose to Tk162.91 as of 31 March 2026 from Tk139.60 (restated) as of 30 June 2025.According to the company, higher base oil sales and increased non-operating income drove the improvement in earnings during the reporting period.

Bangladesh could see its trade with the European Union (EU) expand significantly over the next three to four years, but the country may not be fully prepared to capitalise on the opportunity, warned MA Razzaque, chairman of the Research and Policy Integration for Development (RAPID).

"Trade relations between Bangladesh and the EU are likely to deepen over the next three to four years in a way not seen over the past five decades. The question is whether Bangladesh has the capacity to absorb those opportunities," he said.

Razzaque was speaking at a seminar titled "The changing landscape of Bangladesh-EU trade relations: LDC graduation, preference erosion and intensifying competition", jointly organised by RAPID and the Friedrich-Ebert-Stiftung (FES) in Dhaka today.

He said Bangladesh has not been able to effectively present its own demands to the EU, even though the bloc has put forward extensive expectations on trade, governance and sustainability.

Referring to Bangladesh's graduation from the United Nations' least developed country (LDC) category, Razzaque said the Committee for Development Policy (CDP) had recommended a short deferment of the graduation process, which is currently scheduled for November this year.

"If the United Nations does not grant an extension, Bangladesh will graduate this year," he said.

Razzaque noted that Bangladesh currently exports around $22 billion worth of goods to the EU under duty-free access, making the bloc the country's largest export destination.

"Bangladesh definitely needs duty-free market access," he said, stressing that retaining preferential access to the EU market is crucial for sustaining the country's export competitiveness after LDC graduation.

He also highlighted the EU's broader economic contribution, saying around 30 percent of Bangladesh's foreign direct investment (FDI) originates from EU member states, while the bloc has provided about $3.4 billion in development assistance over the past five years.

Although Bangladesh does not enjoy duty-free access to the US market, Razzaque said the country still has scope to secure greater benefits from the EU market if it strengthens its competitiveness and preparedness.

"To remain competitive after LDC graduation, we will have to reduce our production costs," he said, adding that improving productivity and lowering business costs would be essential to maintaining Bangladesh's position in the EU market.

He added that the EU imports about 21 percent of its readymade garment products from Bangladesh under duty-free arrangements, while China's share of the EU apparel market has been declining, creating additional opportunities for Bangladeshi exporters.

The United States on Friday announced a major easing of export restrictions on the United Arab Emirates, removing barriers to sales of advanced AI chips and military items to the Gulf ally.

The Commerce Department said it would upgrade the UAE’s status under US export rules, a move that reflects the country’s designation as a major defense partner and its role in supporting American national security objectives, including in the war in Iran.

The department’s bureau of industry and security said it would remove the UAE from two restricted country groups, making it eligible for license-free exports of controlled military items, certain satellites and spacecraft, and dual-use goods used in oil and gas production, desalination and civil nuclear power.

The changes will also lift restrictions on support for the UAE’s drone programs.

The upgraded status “is warranted in light of the ongoing US-UAE military partnership and the UAE’s commitment to preventing the diversion and misuse of sensitive US technology,” the department said.

Separately, the department said it was approving the UAE government and certain companies to receive advanced computing items -- including AI chips and servers -- without export licenses.

This was part of a May 2025 cooperation agreement in which the UAE pledged to make matching investments in AI infrastructure in the United States.

The changes came as US tech giants and chipmakers look to expand their presence in the Gulf, where countries flush with oil and gas wealth have been investing heavily in artificial intelligence infrastructure.

The move drew sharp criticism from US Senator Elizabeth Warren, who accused the Trump administration of rewarding Emirati businesses with close financial ties to the president.

Warren, a senior Democrat on the powerful banking committee, said the arrangement was proceeding “despite reported concerns about the diversion of sensitive technology to China and other national security risks.”

The International Energy Agency said Friday that “a recovery” in global oil demand had started as supplies tentatively start moving through the strategic Strait of Hormuz again and prices ease.

“A recovery in world oil demand is underway, with consumption set to rise from its May nadir,” the IEA’s monthly report said.

The agency had in June predicted a fall in demand of 1.1 million barrels a day (mbd) through 2026 because of the Middle East war, which strangled traffic through the strait. It now expects a one million barrel a day fall.

“Global oil supply rebounded by a sharp 4.1 mbd to 98.8 mbd in June, as a resumption of flows through the Strait of Hormuz underpinned a partial recovery in Gulf production. World output was nevertheless some 9.4 mb/d below pre-war levels,” it said.

“Total Gulf oil exports, including volumes bypassing the Strait, surged by 6.5 mbd in June, to 16.1 mbd – a big jump but still well below the 24 mbd average before the war started.”

According to the IEA, world supply improved to 102.6 mbd in June and would continue to get better if there was “a swift de-escalation of renewed hostilities”.

“If transit volumes improve, oil supply will expand by 7.5 mbd next year,” the agency added.

The agency said world oil reserves increased for the first time since the US-Israeli attacks on Iran on February 28 set off the war.

It added that stocks in the richest nations had fallen as their oil imports remained low despite the rise in volumes being transported by sea.

While oil prices fell dramatically in June, fresh fighting between US and Iranian forces this week “clouds the outlook”, the IEA said.

“Renewed exchanges of fire in the Gulf this week highlight the risks of not reaching a lasting peace agreement, which is a must for the normalisation in oil markets,” it commented.

Shares of Daffodil Computers PLC have surged more than 308% over the past five months despite weak financial performance and the absence of any price-sensitive information (PSI), raising concerns over the stock's valuation and trading pattern.

According to data from the Dhaka Stock Exchange (DSE), the company's share price climbed from Tk41.80 on 8 February to Tk170.60 on 9 July, marking a 308.13% gain during the period.

Despite the steep rally, Daffodil Computers did not disclose any PSI that could explain the price movement. The DSE sought explanations from the company twice over the unusual rise in its share price. On both occasions, the company said it had no undisclosed price-sensitive information.

The company's financial performance also offers little support for the sharp appreciation.

According to its unaudited financial statements for the January-March quarter of 2026, Daffodil Computers reported revenue of Tk9.43 crore and a net profit of Tk23 lakh. Earnings per share (EPS) stood at Tk0.05, while net asset value (NAV) per share was Tk13.41. The company attributed the earnings decline to lower sales during the quarter.

Even so, sustained buying interest continued to push the stock higher, driving its price-to-earnings (P/E) ratio to 511.8 – one of the highest among companies listed on the country's capital market.

A P/E ratio above 500 means investors are paying more than Tk500 for every Tk1 of the company's earnings, a level that market analysts say is difficult to justify unless there are strong expectations of exceptional future profit growth.

The company had earlier announced plans to issue 32.69 million ordinary shares at Tk15 each to repay a loan from Creative International and sought shareholder approval through an extraordinary general meeting (EGM).

However, on 21 May this year, the Bangladesh Securities and Exchange Commission (BSEC) declined to approve the proposed Tk49.04 crore share issuance.

In recent months, both the BSEC and the DSE have voiced concerns over sharp price increases in fundamentally weak stocks. The regulator has instructed the stock exchanges to strengthen market surveillance and investigate unusual trading activity where share prices rise significantly without any apparent reason.

Market analysts said Daffodil Computers' price movement appears disconnected from its financial fundamentals. They argued that, in the absence of any significant business development or material disclosure, such an extraordinary rally warrants closer regulatory scrutiny and raises concerns about possible market manipulation.

They also questioned why no visible regulatory action has been taken so far, noting that only the regulator can explain the absence of enforcement if irregularities are found.

Analysts advised investors not to chase rapidly rising stocks without assessing a company's earnings, asset value, financial health and long-term business prospects, warning that investments in heavily overvalued shares carry a high risk of significant losses.

The Insurance Development and Regulatory Authority (IDRA) has won the top innovation award in the regulatory agency category at the Innovation Showcasing 2025-26 for its mobile app, Insuplaint, which digitises insurance complaint management and claims monitoring.

Finance Minister Amir Khosru Mahmud Chowdhury handed over the award to IDRA Chairman Mir Nadia Nivin at the programme organised by the Financial Institutions Division (FID) on July 6.

Launched on June 23, the app enables policyholders across the country to submit insurance claims and lodge complaints remotely without visiting the regulator's office. Users can also track the progress of claim settlements and complaint resolution through the mobile application.

The platform also allows IDRA to monitor whether insurance companies are resolving customer complaints and claims in a timely manner, strengthening regulatory oversight and improving service delivery.

As part of its broader digital transformation efforts, IDRA is also implementing Bima Tathya App, a centralised digital platform designed to verify insurance policy information. The platform is expected to simplify policy verification, prevent fake and duplicate policies, enhance public confidence in the insurance sector and support higher premium collection.

The Innovation Showcasing 2025-26 featured 25 innovation initiatives from agencies and organisations under the Financial Institutions Division. Five organisations received awards in five separate categories.

The other award-winning initiatives were Janata Bank's "Janata-Pay" under the state-owned commercial bank category, Probashi Kallyan Bank's "e-Migration Loan Service" under the specialised bank category, Bangladesh House Building Finance Corporation's automated deed return process under the financial institution category, and Palli Karma-Sahayak Foundation's GIS-based Supervision and Monitoring System under the other institutions category.

Small and medium enterprise owners in Dhanmondi and Mohammadpur have demanded key policy reforms, including extending trade license validity to five years, lowering real estate taxes, and easing import logistics - to mitigate the rising cost of doing business.

Local entrepreneurs raised concerns over domestic trade challenges and liquidity constraints at an exchange of views "Improving the Overall Local Business, Trade and Investment Environment" organised by the Dhaka Chamber of Commerce & Industry yesterday.
Dhaka Chamber President Taskeen Ahmed highlighted that administrative hurdles, ambiguous tax rules, energy shortages, and mandatory early shopping mall closures by 7pm are severely curbing sales turnover.

Praising Finance Act 2026 initiatives, he warned that high government bank borrowing risks crowding out private sector credit.

Jonayed Kabir Sohag, chief revenue officer of Dhaka South City Corporation, pledged zero tolerance against municipal service harassment.

Regarding security, Md Tareq Zubair, deputy commissioner (crime) at Dhaka Metropolitan Police, highlighted active drives against extortionists and ongoing AI-based traffic management expansion under a "Smart Policing, Smart City" initiative.

Tax officials noted supportive measures, including quarterly VAT returns to preserve working capital and extended tax exemptions for renewable power through 2035.

Participating entrepreneurs also urged policy support for digital marketing, tax cuts on real estate signing money, expedited container clearance at the Dhaka Inland Container Depot, and easier LC access for new ventures.

The event concluded with the chamber awarding membership certificates to 39 newly enrolled business establishments.

Bangladesh retained its position as the second-largest apparel supplier to the United States in the first five months of 2026, despite a dip in shipments, as American buyers continued to pivot away from China, official data showed.

According to the US Office of Textiles and Apparel (OTEXA), Bangladesh's garment exports to the US fell 8.1% year-on-year to $3.25 billion during the January-May period. However, the drop outperformed the overall US apparel import market, which contracted by 9.3%.

Vietnam extended its lead as the top supplier to the US, with exports rising 1.5% to $6.39 billion. Meanwhile, shipments from China plunged 42.8% to $2.80 billion, signaling an accelerating shift in global retail supply chains driven by US tariffs and diversification strategies. In volume terms, China's shipments sank nearly 30%.
Indonesia and Cambodia were among the biggest beneficiaries, recording growth of 5.5% and 14.9%, respectively, while India's shipments dropped 26.4%.Although Bangladesh maintained its market ranking, the figures indicate the country has yet to capture a significant share of the orders shifting away from China, with regional competitors expanding faster.The latest monthly data, however, showed a more encouraging sign. Bangladesh's exports to the US increased 6.0% in May from a year earlier, compared with a 2.8% rise in total US apparel imports, indicating demand may be recovering after a weak start to the year.In volume terms, Bangladesh shipped 1.09 billion square metre equivalents (SME) during the January-May period, down 6.2%, while its average unit price slipped 2% to $2.99 per SME, suggesting exporters largely maintained pricing amid softer demand.China suffered a dramatic collapse, both in value and volume. China saw nearly a 43% drop in value and nearly 30% in volume as the country continues to lose market share rapidly, largely because of US tariffs and sourcing diversification.

Indonesia rose as a big challenger as the country recorded 5.49% growth in value and over 13% in volume. While Cambodia emerged as the fastest-growing apparel exporter to the US as the country achieved nearly 15% in value growth and over 18% in volume growth.

Price comparison:

Bangladesh's garment export prices to the US market remained stable despite weaker demand, hinting exporters largely avoided deep discounting to retain orders.

The average unit price of Bangladesh-made apparel slipped 2% year-on-year to $2.99 per square metre equivalent (SME) during January-May 2026, compared with the global average of $3.14.

OTEXA data shows Bangladesh continued to command higher prices than China ($1.43), Pakistan ($2.59) and Cambodia ($2.91), but trailed Vietnam ($3.39), India ($3.41), Honduras ($3.64), Indonesia ($3.77) and Mexico ($4.45).

China recorded the lowest unit value among major suppliers, reflecting its focus on lower-priced, high-volume products, while Mexico maintained the highest average price, supported by its proximity to the US market and a greater share of value-added apparel. Bangladesh's relatively stable pricing indicates that the decline in exports was driven more by lower shipment volumes than by price erosion.

An inspection team from the Dhaka Stock Exchange (DSE) recently visited the factory premises of AFC Agro Biotech Limited only to find its production and operations completely shut down.

The premier bourse published this finding on its website on Thursday.

According to existing securities laws, listed companies are legally obligated to immediately inform their investors and the regulators if factory operations are suspended.

However, AFC Agro Biotech failed to provide any such material information to the stock exchange regarding its closure.

Following this production halt, the total number of non-operational listed firms on the DSE has risen to 34.

The agro-based bio-pharmaceuticals and bio-chemicals producer has been plagued by operational and financial delays. AFC Agro last published its financial statements for the 2021-22 fiscal year, during which its board recommended a meager 0.50% cash dividend.

For that fiscal year, its earnings per share (EPS) stood at Tk0.22, up from Tk0.15 in the previous year, while its net asset value per share (NAVPS) was recorded at Tk18.19 as of 30 June 2022. In the preceding 2020-21 fiscal year, the company paid a 0.50% cash dividend solely to general investors, excluding sponsor-directors.

Adding to the regulatory non-compliance, the company has also stopped submitting its mandatory monthly shareholding reports since March 2024. According to its last submitted report from February 2024, sponsor-directors hold a 27.84% stake, institutional investors own 34.11%, and general investors hold the remaining 38.05% of its 11.52 crore total shares.

The company's financial distress was evident earlier in 2020 when the Bangladesh Securities and Exchange Commission (BSEC) permitted AFC Agro to issue a Tk100 crore non-convertible zero-coupon bond to repay bank loans and secure working capital. However, BSEC sources revealed that the company completely failed to raise the funds due to a total lack of bond subscriptions.

Alarmingly, AFC Agro's sister concern, Active Fine Chemicals Limited, is facing an identical fate. A prior DSE investigation team found Active Fine's factory closed as well. Once celebrated as the country's pioneer local producer of active pharmaceutical ingredients (APIs) with immense potential for the booming drug sector, Active Fine Chemicals has been in a steady decline and has failed to publish any financial disclosures since March 2023.

The Asian Development Bank (ADB) has lowered Bangladesh’s economic growth forecast, projecting the country’s gross domestic product (GDP) to expand by 3.7 per cent in fiscal year (FY) 2026 and 4.5 per cent in FY2027.

The revised projections were published in ADB’s Asian Development Outlook (ADO) July 2026, released on Thursday, UNB reports.

The latest forecast reflects weaker export performance, sluggish private investment, elevated energy costs, persistent inflation, and a more challenging external environment.

“Bangladesh’s economy continues to show resilience amid a difficult global and domestic environment, supported by strong remittance inflows and steady services activity,” said Akira Matsunaga, Deputy Director (Officer-in-Charge) of ADB’s Bangladesh Resident Mission.

He said sustained reforms to strengthen macroeconomic stability, improve the investment climate, enhance financial sector governance, and address energy and infrastructure constraints would be critical to supporting a stronger and more inclusive recovery.

Such reforms would also help attract greater private investment, create quality jobs, and strengthen the country’s economic resilience, he added.

ADB expects inflation to remain high at 9.0 per cent in FY2026, unchanged from its April forecast, as recent increases in domestic petroleum, gas, and electricity prices continue to feed through to transport, utility, and other consumer costs.

Inflation is projected to ease slightly to 8.8 per cent in FY2027, higher than the 8.5 per cent forecast in April, owing to second-round effects from higher energy and transport costs, exchange rate pass-through, and persistent food and services inflation.

The report said economic growth in FY2026 would be supported by strong remittance inflows, steady expansion of the services sector, and targeted credit easing measures for priority sectors despite an overall tight macro-financial environment.

However, it noted that high inflation continues to erode household purchasing power and restrain private consumption, while weak exports and moderate import growth indicate subdued external demand and sluggish private investment.

On the supply side, export-oriented manufacturing is expected to remain under pressure from high energy prices, weak global demand, and structural bottlenecks. Agriculture also faces risks from fertiliser shortages, although the services sector is likely to support growth through remittance-backed household spending.

For FY2027, ADB expects moderate inflation, simplified business regulations, improved governance, tax administration reforms, and continued remittance incentives to support stronger consumption and investment.

Nevertheless, vulnerabilities in the banking sector, energy shortages, and weak competitiveness are expected to keep economic expansion gradual.

ADB also warned of significant downside risks to the outlook.

It said any further escalation of the conflict in the Middle East could push up global energy and shipping costs, intensify external pressures, weaken growth through higher inflation, and reduce remittance inflows.

The report added that higher global oil prices could widen Bangladesh’s import bill and increase fiscal pressure through larger energy subsidies, while higher tariffs, broader trade restrictions, or weaker growth in major economies could further dampen export demand and prolong weakness in the manufacturing sector.

Persistent exchange rate pressures, tight external financing conditions, and climate-related shocks also remain key risks to the country’s economic outlook.

Non-performing loans (NPLs) in banks with significantly higher trade-finance exposure range between 40 per cent and 50 per cent, according to a study of the Bangladesh Institute of Bank Management (BIBM).
And the rate exceeds 80 per cent in banks having both high overall NPLs and substantial trade-finance exposure, it revealed.

The study paper titled 'Trader Services Operations of Banks' was presented at a review workshop organised by the BIBM at its campus at the city's Mirpur area on Wednesday.

Presenting the findings, he said discussions with banks having significant trade finance exposure indicate that asset quality pressure has already become evident in trade-related portfolios.

The BIBM also identified the conversion of non-funded liabilities into forced loans as one of the principal drivers of trade finance-related Non-Performing Loans (NPLs).

Besides, financing associated with imports of capital machinery, raw materials such as cotton, commodities including sugar and fertiliser, fuel, and scrap vessels has significantly contributed to the deterioration of asset quality, it revealed.

The workshop brought together senior bankers, policymakers, regulators, academics, and researchers to deliberate on the emerging challenges and future direction of trade finance in Bangladesh.

Dr. Md. Ezazul Islam, Director General of BIBM presided over the workshop while the keynote paper was presented by Dr. Shah Md. Ahsan Habib, Professor (Selection Grade), BIBM, on behalf of the research team.

The research further identified structural weaknesses in export finance. Findings from the opinion survey showed that nearly all bankers considered the use of back-to-back letters of credit (LCs) without legally enforceable sale-purchase contracts to be a major cause of NPL formation.

According to the study, while back-to-back LC arrangements are designed to support export production by linking input procurement with confirmed export orders, weak or disputed underlying contracts can undermine the financing chain.

Delays or failures in realising export proceeds may quickly transform transaction-based trade finance facilities into forced loans, eliminating their self-liquidating nature and leaving banks exposed to significant credit risk.

In his address, Ezazul Islam emphasised the need for modernising the legal and digital infrastructure for electronic trade documents to facilitate faster, more secure, and paperless trade transactions.

He also stressed the importance of strengthening Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) measures and reinforcing controls against Trade-Based Money Laundering (TBML), while ensuring efficient and customer-friendly banking services.

Dr. Ezazul Islam further highlighted the importance of expanding the access of Small and Medium Enterprise (SME) to trade finance through innovative financial products and risk-sharing mechanisms.

He also underscored the need for improving product-level data, strengthening risk management practices, and enhancing asset quality monitoring.

He also called for stronger coordination among Bangladesh Bank, commercial banks, customs authorities, and other relevant stakeholders to develop a resilient, transparent, and efficient trade finance ecosystem capable of supporting Bangladesh's growing international trade.

The keynote paper was jointly prepared by Dr. Shah Md. Ahsan Habib, Professor (Selection Grade), BIBM; Tofayel Ahmed, Assistant Professor, BIBM; Rahat Banu, Assistant Professor, BIBM; Rajib Kumar Das, Lecturer, BIBM; Mohammad Arafat Ali, Additional Director, Foreign Exchange Policy Department-1, Bangladesh Bank; and A.T.M. Nesarul Hoque, Executive Vice President, Mutual Trust Bank PLC. All members of the research team were present at the workshop.

The workshop also featured comments from distinguished panellists, including Md. Ali Hossain Prodhania, Supernumerary Professor, BIBM and Chairman, NRBC Bank PLC; Mahmudur Rahman, CDCS, Deputy Managing Director, Islami Bank Bangladesh PLC; . Syed Sazzad Haider Chowdhury, Deputy Managing Director, Prime Bank PLC; and Faruk Ahmed, Deputy Managing Director, City Bank PLC.

The event concluded with an interactive open-floor discussion, where senior executives from commercial banks, Bangladesh Bank, and other stakeholders exchanged their views on strengthening trade finance operations and improving asset quality in the banking sector.

Bangladesh Economic Zones Authority (BEZA) is seeking approval for a Tk19.18-billion infrastructure-development project to carve out three sub-zones in the National Special Economic Zone (NSEZ) in Mirsarai ready for industrial operations.

The Prime Minister's Office has sent the development project proposal (DPP) titled "Infrastructure Development at Sub-Zones 6, 11 and 12 in National Special Economic Zone Project" to the Planning Commission for approval, officials say.

The proposed scheme will cover 1,292.08 acres of land, where investors have already received industrial plots but have been unable to set up factories for the absence of essential infrastructures, including roads, electricity and gas facilities, according to the DPP.

The proposed investment comes as BEZA is already implementing five projects for the NSEZ with a combined estimated cost of Tk57.55 billion, raising concerns over project-execution capacity and resource utilisation.

Experts have called for prioritising completion of ongoing schemes and ensuring effective use of public funds before taking up new projects to maintain discipline in public investment.

Under the proposed project, BEZA will construct 35.26 kilometres of roads, 49.36 kilometres of drainage networks and 51.11 kilometres of footpaths, along with bridges, to improve connectivity within the economic zone.

The scheme also includes a 22-kilometre gas-distribution network with two District Regulating Stations (DRS), a 21.15-kilometre electricity network with three substations, and development of 1.13 million cubic metres of land for industrial use.

Besides utility infrastructure, two residential buildings and a complex area will be developed for officials and employees working in the zone.

The DPP says, "The project aims to create an investment-friendly environment by ensuring basic services needed for factory establishment."

The NSEZ, being developed close by the port city of Chattogram, is the country's largest economic zone. BEZA has already acquired or received allocation of around 17,000 acres of land for the zone, which has been divided into 30 sub-zones under a master plan.

The authority expects the development to accelerate industrial expansion and create employment opportunities in Mirsarai and Sitakunda of Chattogram and Sonagazi of Feni.

However, the new project is being proposed while several major NSEZ-related schemes remain under implementation.

These include Tk7.62 -billion water-treatment plant and deep tube-well project launched in July 2019, Tk2.74-billion road and drainage infrastructure project started in April 2020, and Tk41.40-billion NSEZ development project initiated in January 2021.

The continuation of multiple large-scale schemes highlights the infrastructure needs of the country's largest economic zone but also raises questions over coordination, implementation efficiency and timely completion.

Dr Mustafa K Mujeri, former director-general of Bangladesh Institute of Development Studies (BIDS), says the government should prioritise completing ongoing projects and ensuring proper utilisation of existing investments before taking up new ones.

"Taking up a large number of projects at the same time creates pressure on public resources and reduces the expected economic benefits. Effective project selection, timely implementation and stronger monitoring are essential to maintain discipline in public investment," he adds.

Think of it like driving with one foot on the accelerator and the other pulling the handbrake. All you get is burnt tyres, a damaged engine, and no movement at all.

That's the direction Bangladesh's economic policy is heading. The government has announced an expansionary budget designed to jumpstart a sluggish economy, while the central bank holds the line on a bruising 10% policy rate to fight stubbornly high inflation. It's a classic macroeconomic standoff and in this collision, it is the private sector, the engine of growth, that takes the hit.
Economists say that when fiscal policy is expansionary and monetary policy is contractionary at the same time, the typical outcome is predictable: interest rates stay high, suppressing private investment; government spending crowds out private spending through the credit channel; inflation moderates, but at the cost of weaker growth than the fiscal expansion intended.

The newly elected government's first budget took an expansionary stance - cutting taxes, protecting local industries, boosting investment incentives, raising the development outlay, deregulating business processes, and expanding social protection. The message to businesses and investors: the cost of operating is lower, the environment more supportive, now is the time to invest and hire.The central bank's contractionary stance sends the opposite signal: borrowing is expensive, credit is constrained, conditions are tight.The million-dollar question is whether businesses will invest when lending rates sit at 12-14%. Businesses say they need 15-18% operating profit just to service debt but profits remain thin or nonexistent. Without that margin, investment stalls.The numbers bear this out. Private sector credit growth has stayed below 5% for months, down from the usual double digits. Many mills are shutting down for want of working capital and energy supply. Private investment as a share of GDP sits at around 21% and, per the government's own medium-term macroeconomic outlook, will stay there for the next two fiscal years. Against this backdrop, absorbing the roughly 25 lakh people entering the job market each year looks increasingly difficult.

Two legitimate priorities, one policy clash

This mismatch isn't accidental or irrational, according to Dr Fahmida Khatun, executive director of the Centre for Policy Dialogue (CPD). It reflects two genuinely competing priorities that are both legitimate given Bangladesh's current conditions: the government needs to stimulate growth through investment, while also reining in inflation.

"It's a double whammy for the government," she said. It creates a problem of policy coherence, yet an expansionary monetary policy now could have been more devastating.

Even with an expansionary fiscal stance, she said, the government must be disciplined about how public money is spent - earning real returns on that spending, and plugging leakages and corruption so investment actually pays off. She hopes fiscal and monetary policy will eventually align, and that the central bank may review its tightened stance within six to twelve months.

Dr Mustafa K Mujeri, former chief economist of Bangladesh Bank, agreed the two policies appear mismatched on the surface. But he argued that contractionary monetary policy has limited real impact on inflation in Bangladesh, since price pressures stem largely from market management and supply chain issues rather than credit conditions alone.

Still, he said the expansionary budget could work if the government channels spending into productive activity while controlling leakage and corruption. "If the government can do this, then there will be no mismatch visible but that is a tough task," he said.

How the mismatch plays out in practice

Tax cuts lower businesses' operating costs, but the interest rate environment determines the cost of the capital they need to expand. A factory owner who saves Tk50 lakh in annual taxes gains little if his working capital loan costs 14-15% and term loan repayments are eating into cash flow. For most businesses in Bangladesh right now, financing cost, not the tax rate, is the binding constraint.

The credit channel itself is broken. Private credit growth at 4.7% isn't primarily a function of high interest rates; it reflects a banking system stressed by over 32% classified loans, wary of borrower quality, and hoarding liquidity overnight rather than lending term. Bangladesh Bank's stance doesn't fix this structural problem - keeping interbank liquidity costly potentially makes it worse by discouraging lending further.

An investor weighing a new project looks at the whole environment: tax rates, energy supply reliability, regulatory ease, political stability, financing cost, and expected demand. The budget improves some of these variables; monetary policy worsens ao critical one. Whether the net effect is positive depends on which factor binds for that particular investor.

For many factories - from spinning, weaving, ceramics - energy supply is the constraint, and neither fiscal nor monetary policy touches it. For domestic-market businesses, weak consumer demand, itself partly a legacy of four years of inflation eroding real incomes - is the constraint. For new investment projects, financing cost and banking sector health are critical. The budget helps with some of these; monetary policy helps with none.

Rising government borrowing compounds the problem. The budget's NBR revenue target of Tk6.04 lakh crore is, by any honest assessment, unlikely to be met given the NBR's recent track record. When revenue falls short, as it has for years, the government borrows more from the domestic banking system to cover the gap and that borrowing competes directly with private credit for the same pool of funds. Every Tk1,000 crore the government borrows is Tk1,000 crore unavailable for private sector loans. With Bangladesh Bank keeping rates high and liquidity tight, that crowding-out effect is even larger than it would be in a looser monetary environment.

The United States in the early 1980s offers the textbook parallel: Reagan's expansionary fiscal policy - tax cuts, defence spending - collided with Paul Volcker's Federal Reserve holding extremely tight monetary policy. The result was high real interest rates, a strong dollar, a recession, and eventually lower inflation but the growth benefits of the fiscal expansion were significantly delayed and diluted.

Bangladesh's financial system is far less developed, its monetary transmission mechanism weaker, and its fiscal capacity more constrained than the US in the 1980s. But the directional logic holds. Perhaps Bangladesh's development partners have already priced this in as the ADB projected on Thursday that GDP will grow just 4.5% in FY27, well below the government's 6.5% target.

Bangladesh's apparel exports to the United States declined more than 8 per cent in the first five months of 2026 as weaker consumer demand weighed on imports, although a rebound in May signalled a potential recovery in export orders.

Data from the US Office of Textiles and Apparel (OTEXA) showed Bangladesh exported apparel worth US$3.25 billion to the US during January-May 2026, down 8.08 per cent from the same period a year earlier.

The decline came as the overall US apparel import market contracted sharply.

Total US apparel imports fell 9.25 per cent year-on-year to $28.78 billion during the five-month period, while import volumes dropped 9.48 per cent, reflecting softer consumer demand.

Average import prices edged up just 0.25 per cent.

Despite the weak cumulative performance, Bangladesh recorded a turnaround in May, with apparel exports rising 6.04 per cent year-on-year to $582 million, indicating improving sourcing demand.

In volume terms, Bangladesh shipped 6.21 per cent fewer garment pieces to the US market during January-May, while the average unit price declined by 2.0 per cent, underscoring continued pressure on both shipment volumes and prices.

The OTEXA data also pointed to an ongoing reshuffle in global sourcing patterns.

Vietnam, the largest apparel supplier to the US, recorded 1.46 per cent growth during the period, while Cambodia emerged as the fastest-growing major supplier with exports rising 14.9 per cent. Indonesia also expanded its apparel exports by 5.49 per cent.

By contrast, China's apparel exports to the US plunged 42.75 per cent, highlighting the continued impact of trade tensions and buyers' diversification strategies. India's exports declined 26.37 per cent, while Pakistan recorded a 12.35 per cent fall.

Cambodia also led volume growth, with shipments increasing 18.03 per cent, followed by Indonesia (13.16 per cent) and Vietnam (3.01 per cent). Bangladesh's export volume declined 6.21 per cent, while China's plunged 29.67 per cent.

Average unit prices fell across most major suppliers. China recorded the steepest decline at 18.59 per cent, followed by Pakistan (6.84 per cent) and Indonesia (6.78 per cent). Bangladesh's average unit price fell by a comparatively modest 2.0 per cent.

Mohiuddin Rubel, former director of BGMEA, said the latest figures reflected both weaker US import demand and an ongoing shift in global sourcing.

"The sharp contraction in China's exports and the continued growth of Cambodia and Vietnam suggest buyers are actively diversifying their sourcing. Bangladesh has also benefited from this trend to some extent, but the overall decline in US imports has constrained its export performance," he said.

He said Bangladesh's return to positive growth in May was an encouraging sign, but sustaining the momentum would require stronger competitiveness, shorter lead times and higher productivity.

"With China's share of the US market shrinking rapidly, Bangladesh has an opportunity to secure additional orders if it can strengthen logistics, enhance compliance and maintain competitive pricing," he added.

Rubel also expressed optimism that exports to the US market would continue to improve in the coming months as order inflows strengthened, a trend that is also reflected in Export Promotion Bureau (EPB) data.

Bangladesh’s economy is expected to grow by 4.4 percent in the current fiscal year 2026-27, supported by easing global headwinds and domestic economic reforms, according to HSBC.

Lower oil prices, a stabilising outlook for US tariffs and resilient global growth should help revive Bangladesh’s export sector, the multinational lender said, while reforms undertaken at home are expected to strengthen private investment and consumption.

“Bangladesh’s economy continues to impress with its resilience,” Frederic Neumann, chief Asia economist and co-head of global investment research for Asia at HSBC, said at an economic outlook event held at Sheraton Dhaka on Tuesday.

With oil prices easing, the outlook for US tariffs stabilising, and global growth remaining robust, garment exports are expected to recover in the second half of the year, he said.

“Ongoing economic reforms are also gaining traction domestically, ultimately supporting private investment and consumption. Bangladesh is, therefore, on a steady path to recovery, with growth expected to accelerate to 4.4 percent over the coming fiscal year,” Neumann said.

The forecast comes as Bangladesh seeks to consolidate its macroeconomic recovery following two years of high inflation, pressure on foreign exchange reserves and weaker economic activity.

The pace of reforms and the strength of external demand will remain key factors shaping the country’s growth outlook.

The country recorded 4.14 percent growth in its gross domestic product in FY26, up from 3.49 percent a year earlier, according to provisional data from the Bangladesh Bureau of Statistics (BBS).

The government has set a 6.5 percent GDP growth target for the current financial year.

At the event, Finance and Planning Minister Amir Khosru Mahmud Chowdhury acknowledged that restoring confidence while maintaining macroeconomic stability would be the government’s biggest challenge in implementing the national budget amid continued global uncertainty.

He said the government was working to strengthen institutions and reduce bureaucracy to improve the business environment and support investment.

The minister also stressed the need to diversify exports beyond the ready-made garment sector.

He said improving competitiveness, removing regulatory barriers, expanding market access and creating opportunities for new industries through economic zones and private-sector investment would be crucial to broadening Bangladesh’s export base.

Priya Kini, managing director and head of banking for international markets in Asia at HSBC, said businesses needed timely economic insights to navigate an increasingly uncertain global and geopolitical environment.

Md Mahbub ur Rahman, chief executive officer of HSBC Bangladesh, said the country’s next phase of development would depend not only on higher growth but also on improving its quality and sustainability.

He said Bangladesh would need stronger risk governance, greater competitiveness and progress up the global value chain to build a more diversified and resilient economy.

The country's financial account staged a major recovery to register a surplus of $4.16 billion during the first 11 months of the fiscal 2025-26, rebounding from a deficit of $214 million in the same period of the previous fiscal year.

The balance of payments data, released by the Bangladesh Bank yesterday (8 July), indicates that a sharp turnaround in trade credit was the primary driver behind this financial account surplus.

The trade credit position – which involves short-term capital flows from deferred payments on imports – surged to a surplus of $2.90 billion during the July-May period, recovering from a deep deficit of $2.57 billion recorded during the corresponding period of FY25.

Economists see stronger external financing

Former Bangladesh Bank governor Ahsan H Mansur said the financial account should remain in a healthy surplus as the trade credit position has turned positive after remaining in deficit in the previous fiscal year.

Mustafizur Rahman, a distinguished fellow at the Centre for Policy Dialogue, said the financial account had improved significantly, reflecting stronger external financing. However, he noted that a stronger financial account also implies higher debt obligations in the future because loans received today increase future debt servicing liabilities.

He added that inflows from development partners such as the World Bank, the Asian Development Bank and the International Monetary Fund also strengthen the financial account by increasing foreign currency inflows.

Trade deficit widens on weaker exports

Despite the improvement in the financial account, the country's trade deficit widened to $23.98 billion during the first 11 months of FY26 from $19.38 billion in the corresponding period of FY25.

Exports declined by 2% during the period, while imports rose by 6.30%.

Mansur said the larger trade deficit reflected sluggish export growth, adding that higher imports are generally positive for the economy as they support production and economic growth.

Remittances support current account

The current account deficit narrowed despite the widening trade gap, supported by robust remittance inflows.

The current account deficit stood at $301 million during July-May of FY26, compared with a deficit of $778 million in the same period of FY25.

Remittance inflows during the first 11 months of FY26 totalled $32.77 billion, marking a 19.10% year-on-year increase.

Mansur said remittances had played a key role in improving the current account balance. However, he cautioned that remittance inflows weakened in June after several months of stronger performance and said sustained inflows would be important for maintaining external sector stability.

He added that a prolonged decline in remittances could indicate a resurgence of informal channels for transferring funds abroad.

Depositors of troubled banks will receive their full deposits with interest, with no "haircut" imposed, Finance Minister Amir Khosru Mahmud Chowdhury told parliament today (8 July), adding that the process would take time due to the banks' mounting losses.

He made the remarks in response to an urgent public interest notice under the Rules of Procedure during the 21st working day of the 13th parliament's second session.

Earlier, reserved women's seat MP Rehana Akter Ranu demanded strict action against those involved in banking irregularities and money laundering, including auctioning their assets to repay depositors.Khosru said the government was implementing a multi-dimensional resolution framework under the Bank Resolution Act, 2026 to address the banking sector crisis. Under the framework, five troubled banks – EXIM Bank, First Security Islami Bank, Global Islami Bank, Social Islami Bank, and Union Bank – have been merged into Islami Bank PLC, with all depositors' claims transferred to and preserved under the new entity.

He said the Deposit Protection Act, 2026 raised the protected deposit limit to Tk2 lakh from Tk1 lakh. Special forensic audits into loan irregularities and money laundering involving the five banks are underway, with asset recovery and legal action to follow based on investigation findings.

He added that Section 57 of the Bank Resolution Act allows the government to take control of the assets and income of responsible individuals and recover depositors' money through sales or auctions. The government is also working to recover laundered money abroad through international legal firms.

Ranu said corruption and money laundering in the banking sector had left millions of depositors unable to access their savings, creating a humanitarian crisis affecting medical treatment, children's education, marriages and small businesses. She opposed any "haircut" policy, saying depositors should not bear the consequences of bank owners' misconduct.