The country’s current account deficit narrowed in the first 11 months of fiscal year 2025-26, helped by record remittance inflows, although weak economic activity continued to hold back trade and investment.

During the July-May period of FY26, the current account deficit stood at $301 million, down from $778 million in the same period of the previous fiscal year, according to the latest Bangladesh Bank (BB) data.
The current account measures a country’s trade in goods and services, cross-border income flows, and current transfers such as remittances and foreign aid. It tracks the net flow of goods, services and income between a country and the rest of the world.

“Remittances played the biggest role in narrowing the current account deficit,” said Ashikur Rahman, principal economist of the Policy Research Institute of Bangladesh (PRI).

Remittance inflows reached a record $35.5 billion in FY26 as Bangladeshis staying abroad sent more money home. The inflow rose 17.3 percent year-on-year from $30.3 billion in FY25.

Ashikur said that, apart from remittances, neither exports nor imports performed particularly strongly, while investment also failed to recover during FY26.

During the July-May period of the recently concluded fiscal year, the trade deficit widened to $23.98 billion from $19.37 billion in the same period a year earlier, mainly because imports grew faster while export earnings declined, according to BB data.

Import payments reached $64.02 billion in the first 11 months of FY26, up 6.3 percent from $60.25 billion in the corresponding period of the previous fiscal year.

Export earnings, by contrast, fell 2 percent to $40.03 billion from $40.87 billion over the same period, according to the central bank data.

The PRI economist said subdued economic growth made the external sector appear stronger than it actually was.

“In reality, remittances were the only strong pillar, while almost all other indicators remained weak,” he added.

During the July-May period of FY26, the financial account, which records cross-border investment and other capital flows, returned to surplus as net financial inflows exceeded outflows. It recorded a surplus of $4.16 billion during the period, compared with a deficit of $214 million in the same period of FY25.

The financial account is a key component of the balance of payments. It records transactions involving financial assets and liabilities between residents and non-residents, including foreign direct investment, medium- and long-term loans, trade credit, net aid flows, portfolio investment and reserve assets.

The overall balance of payments also returned to surplus, reaching $4.01 billion in the first 11 months of FY26, compared with a deficit of $1.15 billion in the same period of the previous fiscal year.

The overall balance of payments (BoP) shows the net result of all transactions between a country and the rest of the world over a given period. It shows whether the country records an overall surplus or deficit after accounting for the current account, capital account, financial account, and errors and omissions.

Bangladesh's current- account deficit (CAD) narrowed sharply in the first 11 months of the fiscal year 2025-26, helped by record remittance inflows and slower import growth, according to the Bangladesh Bank data released Wednesday. Maps

The deficit narrowed to $301 million during the July-May period of FY26 from $1.23 billion in the first 10 months.

The improvement was driven largely by stronger remittance inflows and relatively contained import growth.

Expatriate Bangladeshis sent home $32.8 billion during the July-May period, up nearly 12 per cent from the July-April period of FY26 and more than 19 per cent higher than a year earlier.

Imports rose 5.9 per cent year on year to $67.7 billion in the said period, reflecting stronger domestic demand but remaining below the pace of remittance growth.

Energy imports remained broadly stable, although petroleum imports climbed 18.6 per cent to $9.0 billion during the period under review.

Exports increased more than 11 per cent from the previous months to $44.2 billion.

However, exports were still down about 2.0 per cent from a year earlier.

The current account measures a country's transactions with the rest of the world, including trade in goods and services, investment income, and transfers such as workers' remittances.

Bangladesh typically runs a current account deficit because it imports more than it exports.

The country's export-oriented manufacturing sector relies heavily on imported raw materials and intermediate goods, while consumers also depend on a wide range of imported products.

The improvement in the current account helped lift the overall balance of payments (BoP) surplus to $4.0 billion during the July-May period, compared with $3.7 billion in the first 10 months of the fiscal year.

A year earlier, the BoP recorded a $1.1 billion deficit.

The financial account posted a surplus of $4.16 billion, although it declined by about 8.0 per cent from the July-April period.

Meanwhile, the capital account surplus increased to $366 million from $325 million.

Economists said the stronger external position reflected robust remittance inflows and resilient export earnings, helping ease pressure on Bangladesh's foreign exchange reserves.

They cautioned, however, that sustaining the improvement would depend on continued export growth, stable energy prices, and a recovery in foreign direct investment.

They said there was another sign: the capital machinery import surged by both year-on-year and on a monthly basis, 11.5 per cent and 8.6 per cent, respectively.

Persistent inflation in Bangladesh is being driven largely by structural supply constraints and rising import costs, according to the latest Economic Update from the General Economics Division published today (8 July).

The report finds that inflationary pressures are no longer confined to a few sectors but have broadened across the economy, reflecting deeper underlying challenges. Headline inflation rose to 9.42% in May 2026, up from 9.04% in April, as both food and non-food components continued to climb.

Analysts at the GED point to a combination of supply-side disruptions, global price volatility, and higher energy import costs as key drivers behind the sustained inflation. These factors have intensified production and transportation expenses, which are gradually being passed on to consumers.

Food inflation, in particular, remains vulnerable to supply chain inefficiencies. While seasonal factors such as the Boro harvest provided some temporary relief in rice prices, inflation in other essential items – including vegetables, fish, and protein products – remains elevated. The report notes that inadequate storage facilities, weak logistics, and market inefficiencies continue to amplify price volatility in perishable goods.

At the same time, import-dependent inflationary pressures are becoming more pronounced. Rising global fuel prices have pushed up domestic energy and transport costs, contributing to a ripple effect across multiple sectors. Transport services and liquid fuel prices recorded sharp increases in May, reflecting the growing burden of imported inflation on the domestic economy.

Data from the Bangladesh Bureau of Statistics show that non-food inflation is also rising steadily, indicating that cost pressures are spreading beyond food into services and other consumer goods. This broad-based inflation suggests that both supply-side and cost-push factors are reinforcing each other.

The report further highlights that demand-side dynamics, while present, are not the primary drivers of current inflation trends. Instead, structural weaknesses – such as fragmented supply chains, limited market integration, and dependence on imported energy – are playing a dominant role.

Economists warn that without targeted reforms, inflation may remain sticky in the coming months. Suggested measures include improving agricultural supply chains, investing in cold storage and transport infrastructure, and reducing import dependency in key sectors where feasible.

The GED emphasises that addressing these structural issues is critical to restoring price stability. Otherwise, prolonged inflation could continue to erode purchasing power and complicate macroeconomic management in the near term.

Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood yesterday said the government cannot cancel contracts with private power producers at will because they are backed by sovereign guarantees, making the process legally complex and time-consuming.

“The previous fascist government handed over several power plants to private companies,” he said while responding to a supplementary question from reserved-seat member of parliament Mardia Mumtaz during the question hour in parliament.

“In those agreements, sovereign guarantees were provided, meaning the state itself guaranteed the contracts. Cancelling such guarantees is a lengthy process. We are negotiating with the companies on several issues, particularly late payment fees, which we are refusing to pay. Hopefully, these discussions will be fruitful,” he said.

Mahmood said power plants already in operation could not be managed through ad hoc arrangements.

“As long as the contracts remain valid, we will work to reduce costs and ensure electricity is supplied at affordable rates,” he added.

Replying to a question from Mostafizur Rahman, a member of parliament from the Jamalpur-3 constituency, the minister said no quick rental power plants are currently operational, and there are no active contracts with such facilities.

However, he said the contracts of two rental power plants were renewed after expiry on a “no electricity, no payment” basis, and the plants remain in operation. Since no quick rental plants are operating, the government is not paying any capacity charges for them.

Responding to a question from Mohammad Kamal Hossain, the Dhaka-3 constituency MP, Mahmood said the country currently supplies around 2,700 million cubic feet of gas a day against a demand of about 3,800 million cubic feet.

The shortfall has left Dhaka and other parts of the country receiving significantly less gas than required, disrupting supply, he said.

Answering a question from Golam Rasool, the Jessore-4 constituency MP, the minister said transmission loss stood at 3.04 percent and distribution loss at 7.38 percent in fiscal year 2024-25 (FY25). Up to April of FY26, transmission loss was 3.27 percent, while distribution loss declined to 6.29 percent.

Replying to a question, Mahmood said international fuel prices had started to decline following the end of the Iran-Israel-US conflict.

However, he said prices remain above the break-even level, leaving the Bangladesh Petroleum Corporation to incur daily losses of Tk 78 crore on diesel, octane and petrol sales.

He said the BPC incurred total losses of Tk 18,699 crore between March and June 23.

“If international prices fall further to a sustainable level, the government will consider reducing domestic fuel prices to ease public hardship,” he said.

In response to another question, Iqbal Hassan said two committees formed to review power purchase agreements signed under the Electricity and Energy Supply Enhancement (Special Provisions) Act, 2010, had submitted separate reports, and the government was taking necessary steps based on their recommendations.

The US dollar was steady at around its highest level in roughly a week on Wednesday.

This came after US President Donald Trump said an interim memorandum of understanding signed with Iran to end their conflict was “over”.

Meanwhile, New Zealand’s currency jumped after the country’s central bank lifted interest rates.

The US dollar index, which measures its strength against a basket of six currencies, was little changed on the day at 101.17.

It was last hovering around its highest since July 2, in a somewhat choppy session for the safe-haven currency.

“The USD has reacted, but the market has learnt to take Trump’s comments with a pinch of salt,” said Jane Foley, head of FX strategy at Rabobank.

“The remarks may be meant to bring the opposition to the table. Nevertheless, they will raise anxiety levels another notch,” Foley added.

Brent crude was last up 6.24 percent at $78.82 a barrel, extending a rally into a second day. Trump’s comments come after Iran’s Revolutionary Guards on Wednesday said they attacked US military sites in Bahrain and Kuwait.

This followed a wave of US airstrikes against Iran in response to attacks on tankers in the Strait of Hormuz.

Meanwhile, the kiwi dollar was last 0.26 percent higher at $0.5691, having pared earlier gains.

This occurred after the Reserve Bank of New Zealand hiked rates by 25 basis points to 2.5 percent to curb inflation pressures, as most economists had expected.

The central bank said “some further reduction in monetary stimulus is likely to be required” to control inflation.

“A key argument for the hike is a concern that financial conditions would have eased further if the OCR was left unchanged,” Westpac analysts wrote, referring to the official cash rate.

Later in the day, traders will be watching out for minutes from the Federal Reserve’s June meeting.

The Dhaka Stock Exchange has downgraded Intech Limited to the "Z" category - commonly known as the junk stock segment - following a regulatory directive after the company's accumulated losses wiped out its entire paid-up capital.

The regulatory move, effective from today (8 July), follows a mandatory policy by the Bangladesh Securities and Exchange Commission requiring companies with negative retained earnings exceeding their total paid-up capital to be shifted to the lowest trading tier.

The announcement triggered an immediate sell-off, causing Intech's share price to hit the lower circuit breaker, plunging 9.77% to close at Tk31.40. Under the BSEC (Margin) Rules 2025, stockbrokers and merchant bankers are now strictly prohibited from providing margin loan facilities to investors for purchasing Intech securities.

Capital erosion deepens financial distress

According to the company's unaudited financial statements for the first nine months of the fiscal 2025-26, Intech reported negative retained earnings of Tk33.58 crore during the July-March period, exceeding its paid-up capital of Tk31.32 crore.

The capital erosion pushed the company's net asset value (NAV) per share into negative territory at negative Tk0.72.

Its operating performance also deteriorated during the period. Revenue declined by 12% to Tk0.55 crore, while the company posted a net loss of Tk0.87 crore.

Years of weak performance

The downgrade marks the latest setback for the company following several years of financial difficulties.

Intech has reported recurring losses since 2020, including losses of Tk2.32 crore in FY23 and Tk1.18 crore in FY25. Although it returned to a modest profit of Tk0.50 crore in FY24 and declared a 0.20% cash dividend, the recovery proved short-lived.

In its audit report for FY25, the company's statutory auditor expressed "substantial doubt" about Intech's ability to continue as a going concern, citing negative shareholders' equity of Tk1.39 crore as evidence of severe financial weakness.

Management cites legacy issues

Listed on the stock exchanges in 2002, Intech restructured its board in November 2021 to include individuals associated with major business groups, including S Alam Group and KDS Group.

Responding to the auditor's observations, the current management said the company's financial problems stemmed from "fabricated and overstated assets" inherited from the administration before 2020.

The company said it had requested the BSEC to appoint a special audit to determine the full extent of the alleged irregularities and had restated its historical financial statements. It also said directors had been providing interest-free loans to support the business while pursuing new projects and operational improvements aimed at restoring profitability.

The benchmark index of the Dhaka Stock Exchange (DSE) extended its correction for a second consecutive session today (8 July) as investors continued to book profits in blue-chip stocks following their recent gains.

While selective buying interest in low-cap and momentum-driven stocks provided some support, it was insufficient to offset the selling pressure in heavyweight counters, leaving the market in negative territory at the close of the day, according to market insiders.

The broad DSEX index shed 11 points, or 0.19%, to settle the session at 5,770. The downturn was also evident in the blue-chip segment, where the DS30 index slipped by 12 points to finish at 2,169.

Market breadth remained skewed toward the bears, as 192 issues declined compared to 145 that managed to advance, while 56 scrips remained unchanged on the DSE floor.

According to the daily market review by EBL Securities, the indices opened under pressure as profit-taking weighed on investor sentiment from the outset. Although buying interest picked up in the second half of the session, largely driven by demand for attractively valued small-cap stocks, persistent selling in heavyweight constituents kept the benchmark index in the red.

The market's volatility underscores investors' cautious approach as they assess whether the recent rally can be sustained.

Market participation saw a notable contraction, with daily turnover on the DSE dropping by 17% to stand at Tk1,156 crore, compared to the previous session's volume.

On the sectoral front, the textile sector dominated trading activity, accounting for 21% of the day's total turnover. This was followed by general insurance at 9.6% and the engineering sector at 8.8%.

In terms of sectoral returns, the travel and leisure sector emerged as the top performer with a 2.8% gain, followed by information technology and textiles.

On the flip side, the financial institutions sector faced the steepest correction of 1.3%, while the cement and banking sectors also recorded notable price dips, acting as the primary drags on the index.

Individual stock performance was highlighted by Sea Pearl Beach Resort, which topped the gainers' list with a 10% price surge. Other significant gainers included Genex Infosys, Emerald Oil, and Sharp Industries.

On the losing end, Intech Limited hit the lower circuit breaker, shedding 9.77% of its value, while Fareast Finance and Familytex also featured among the top losers.

In terms of liquidity, Malek Spinning emerged as the most traded stock, followed by BRAC Bank, Sea Pearl Beach Resort, and IPDC Finance.

The bearish sentiment was mirrored at the Chittagong Stock Exchange (CSE), where the Selective Categories' Index (CSCX) fell by 33 points to finish at 9,481. The broad CASPI index at the port city bourse ended 47 points lower at 15,485.

Turnover at the CSE also witnessed a decline of 13%, settling at Tk26.89 crore.

Oil ​prices jumped more than 6% today (8 July), hitting a two-week high after US President Donald Trump said ‌ the memorandum of understanding to end the conflict with Iran was "over", renewing fears of disruptions to Middle East oil supplies.

Brent crude futures were up $4.57, or 6.16%, to $78.73 a barrel at 0948 GMT, while US West Texas Intermediate crude climbed $4.23, or 6.01%, to $74.67 a barrel. The benchmarks ​are at their highest levels since 22 June.

Both rose about 3% yesterday after the US revoked the general ​licence authorising the sale of Iranian crude.

Trump said today that the memorandum of understanding signed with ⁠Iran to end the conflict was "over", adding he didn't want to engage with Tehran.

The agreement, brokered by Pakistan last month ​to provide a 60-day window for negotiations, came under strain after the US launched fresh strikes on Iran.

"The market is again ​being forced to price the risk that renewed attacks on shipping, or a broader breakdown in US-Iran relations, could slow the normalisation of flows through the Strait of Hormuz," Saxo Bank analyst Ole Hansen said.

The US airstrikes were in response to Iranian attacks on three commercial vessels that were ​transiting the Strait of Hormuz, US Central Command said on yesterday. Iran's Revolutionary Guards then said they targeted US military ​sites in Bahrain and Kuwait early on today.

The attacks renewed concerns about tanker traffic through the Strait of Hormuz, which carried about ‌one-fifth of ⁠global energy supply before the war began in late February.

Supply fears resurface

"Trump's assertion that the MOU is over raises the prospect of a re-closing of the Strait as an escalatory cycle begins again," Sauk Kavoniv, head of research at MST Marquee, said.

At least four oil and gas tankers have turned back from attempting to transit the strait, ship-tracking data showed, as renewed ​attacks on vessels heightened safety concerns.

"(The) ​underlying supply challenge has ⁠not disappeared, but the latest escalation has interrupted it," Hansen added.

After the US and Iran signed their truce last month, oil prices tumbled to pre-war levels and traders amassed large short positions in ​oil futures, betting prices would fall further.

Since the start of the conflict, nations have drawn ​down their inventories ⁠to make up for the supply shortfall.

"In my view, a price closer to $80 a barrel is more consistent with current market fundamentals than $70," said Bjarne Schieldrop, chief commodities analyst at SEB.

Meanwhile, China has lifted refined fuel export restrictions for the rest of July and ⁠allowed a ​private refiner to resume shipments after a four-month halt, trade sources said ​today, as the world's biggest refiner returns towards normal after disruptions from the Iran war.

The government will adopt a comprehensive roadmap this month to transform Bangladesh's leather industry into a more competitive and environmentally sustainable sector in the global market, Industries Minister Khandakar Abdul Muktadir told parliament today (8 July).

"The roadmap will help raise annual leather export earnings to $10-12 billion by improving environmental compliance, waste management, and global standards," he said while replying to a question from Sirajganj-4 lawmaker Rafiqul Islam Khan.

He also said the government has been taking technological and administrative measures as well.

As part of the initiative, an Italian firm, Italprogetti, has completed a technical assessment of the Central Effluent Treatment Plant (CETP) at Savar BSCIC Leather Industrial City, he added.

"Based on the assessment, the CETP's treatment capacity will be urgently increased to 25,000 cubic metres. We also plan to prepare designs to gradually raise the capacity to 40,000 cubic metres and eventually to 50,000 cubic metres to meet future demand," he mentioned.

The minister said six tanneries have been allowed to set up their own effluent treatment plants (ETPs) to reduce pressure on the central treatment facility. Two of them are already operational, while another 20-25 large tanneries have been encouraged to install their own ETPs.

Highlighting the government's efforts to turn waste management into a value-added industry, Muktadir said production of industrial-grade protein powder from chrome shaving dust has already started.

He further said that initiatives are also underway to produce tallow and organic fertiliser from fleshing waste and gelatin from raw cutting waste for export.

Consumer lending in the country's banking sector continued its upward trajectory in the January-March quarter of FY26, with outstanding loans surpassing Tk 1.58 trillion despite elevated lending rates and persistent inflation.

The steady increase indicates that households are increasingly relying on bank financing to meet housing, education, healthcare and other personal expenses as rising living costs continue to strain purchasing power.

According to the latest Bangladesh Bank (BB) data, outstanding consumer loans climbed to more than Tk 1.58 trillion during the January-March quarter, up from Tk 1.51 trillion in the October-December quarter and Tk 1.50 trillion in the July-September quarter of FY26.Maps

The figure was also higher than Tk 1.47 trillion recorded in the same quarter of FY25. The quarter-on-quarter growth was driven mainly by higher borrowing for housing, salary-backed loans, credit cards, land purchases and other personal financing.

Loans for purchasing flats and apartments increased to Tk 320 billion in the January-March quarter from Tk 310.85 billion in the previous quarter, while outstanding salary-backed loans rose to Tk 232.35 billion from Tk 225.95 billion.

Credit card loans climbed to Tk 135.19 billion from Tk 131.03 billion, while loans for land purchases increased to Tk 71.81 billion from Tk 69.36 billion. Financing for motor vehicles and motorcycles also rose to Tk 63.74 billion from Tk 60.85 billion.

One of the sharpest increases was recorded in personal loans secured against fixed deposits and other savings instruments, which jumped to Tk 276.25 billion from Tk 225.91 billion.

Doctors' and professional loans edged up to Tk 10.63 billion from Tk 10.38 billion, while loans against provident funds rose to Tk 18.87 billion from Tk 17.50 billion. Other personal loans also increased to Tk 30.66 billion from Tk 29.90 billion.Credit & Lending.

However, financing for household appliances, including televisions, refrigerators and computers, declined slightly to Tk 345.35 billion from Tk 346.62 billion.

Bankers said consumer loans are increasingly being used to finance essential spending rather than discretionary purchases, as many households seek credit to cover education, healthcare, marriage, travel and other day-to-day expenses amid persistent inflation and erosion of purchasing power.

They also noted that banks have expanded their consumer lending portfolios as demand remains resilient despite relatively high lending rates.

Arif Hossain Khan, spokesperson for Bangladesh Bank, said rising consumer demand for small-ticket financing, coupled with aggressive promotional campaigns by banks, has contributed to the continued growth in consumer lending.

"Banks have faced challenges in expanding corporate lending amid weak private-sector investment and rising credit risks. As a result, many lenders are increasingly focusing on consumer finance, which offers relatively quicker loan disbursement and diversification of their credit portfolio," he said.

Syed Mahbubur Rahman, managing director and CEO of Mutual Trust Bank PLC, said rising living costs and persistent inflation were prompting more people to rely on consumer loans to meet everyday expenses.

Banks are also diversifying their loan portfolios by expanding consumer lending as private-sector credit growth had remained below 5.0 per cent amid weak demand for business loans, Rahman said, adding that at the same time, lenders have stepped up promotional activities to attract retail borrowers.Business & Corporate Law

Mutual Trust Bank alone disbursed around Tk 1.0 billion in consumer loans over the past three months, reflecting growing demand for such financing, he added.

Economists, however, warned that while consumer credit can provide short-term financial relief to households, excessive reliance on borrowing could increase debt burdens and financial vulnerability over time.

They also cautioned that if a growing share of bank lending continues to flow into consumption rather than productive sectors, it could undermine private investment, employment generation and long-term economic growth.

Dr Masrur Reaz, chairman of Policy Exchange Bangladesh, said the continued growth in consumer lending suggests many households are increasingly relying on bank borrowing to cope with rising living costs rather than finance discretionary spending.

"Inflation has eroded purchasing power, prompting consumers to borrow for essential expenses such as education, healthcare and housing," he said.

While consumer credit can support domestic demand in the short term, excessive dependence on such borrowing could increase household debt and financial vulnerability if income growth fails to keep pace, he added. Economic Revival Strategies

Dr Reaz said banks should ensure credit expansion remains balanced by directing a larger share of lending to productive sectors to stimulate private investment, create jobs and sustain long-term economic growth.

Otherwise, an economy driven mainly by consumption-led credit may not be sustainable, he added.

He suggested that lenders should strengthen their credit assessment and risk management, warning that high interest rates and weak economic conditions could affect borrowers' repayment capacity in the coming months.

Appliance maker Singer Bangladesh's revenue was Tk670 crore in 2012, yielding a net profit of Tk49 crore. Thirteen years later, although its revenue surged to Tk2,133 crore, the company plunged into a staggering net loss of Tk225 crore. The downward course has continued into this year.

This raises a critical question: How did a former market giant dive so deep into the red, failing to pay a dividend from its 2025 earnings for the first time in its history? As the accumulated losses exceeded its capital, the Dhaka Stock Exchange (DSE) downgraded the company's shares to the junk "Z" category.

An analysis of the company's financial reports by The Business Standard reveals that Singer Bangladesh has been crippled by escalating borrowing costs that completely wiped out operational profits gained from higher sales.

The company, majority-owned by Turkish conglomerate Arcelik, and listed on the DSE, reported a net loss after tax of Tk225 crore for 2025, widening significantly from a loss of less than Tk50 crore a year ago.

Earnings per share dropped further into negative territory to Tk22.56 from negative Tk4.91 in 2024.

The losses came despite a 14.3% increase in full-year revenue to Tk2,133 crore, driven by the transition to production at its new manufacturing facility. Gross profit also rose to Tk516 crore, up from Tk471 crore a year earlier.

However, an intense financing burden crippled the company's bottom line, according to the annual report. Finance costs skyrocketed to Tk322 crore in 2025 from Tk143 crore the previous year, far more than the company's modest operating profit of Tk55 crore.

According to the company's annual report, Singer's reliance on short-term debt to fund its capital investment and operations triggered the liquidity strain. The company's secured short-term borrowings, including bank overdrafts, soared to Tk1,394 crore from Tk1,191 crore a year ago.

Singer utilised credit facilities from a consortium of commercial banks. Its short-term borrowings included Tk305 crore from Commercial Bank of Ceylon, Tk249 crore from Pubali Bank, including a Tk99 crore overdraft, Tk177 crore from Dutch-Bangla Bank and Tk100 crore from Prime Bank.

Direct interest payments on borrowings and leases swallowed up Tk264 crore in cash outflows during the year. Consequently, Singer's closing cash and cash equivalents position sat deep in negative territory at Tk1,328 crore, offset by bank overdrafts.

Net operating cash flow per share did provide a silver lining, recovering to a positive Tk14.56 per share from a negative Tk7.96 in the previous year on the back of stronger turnover collection.

The company's board did not immediately outline a restructuring plan for its short-term debt portfolio to combat high local interest rates, the company said in its annual report for 2025.

The report also said despite revenue growth in 2025, profitability remained under significant pressure. Elevated inflation and higher input costs limited gross profit growth to 4%, reaching nearly Tk516 crore.

Consequently, gross margin contracted from 27% to 24%, reflecting the company's constrained ability to fully pass on cost increases to consumers in a competitive market.

"Nevertheless, the gross margin remains broadly competitive within the industry, underscoring underlying pricing resilience," says the annual report.

On the dividend, the report said that due to the net loss experienced during the year and the increased leverage resulting from capital expenditures, the board has decided not to propose a dividend for 2025.

On the outlook, Singer Bangladesh said that despite near-term headwinds, it remains focused on long-term growth. The commissioning of its new manufacturing facility is expected to lower costs, increase localisation and improve product quality, while strengthening its product portfolio to better serve Bangladesh's growing middle-income consumers with rising purchasing power.

The Business Standard sought comments from Kazi Ashiqur Rahman, company secretary of Singer Bangladesh, but he neither responded to text messages nor answered repeated telephone calls.

Industry insiders say Singer Bangladesh's turnaround is being hampered by fierce competition from local manufacturers, particularly Walton and Pran-RFL.

According to a Walton official, the company now holds around 70% of the domestic refrigerator market, a segment in which Singer was once a dominant player. At the same time, Pran-RFL has been steadily expanding its presence in the home appliances market through an aggressive rollout of new retail outlets.

What Singer's Q1 financials reveal

Singer Bangladesh's total turnover edged up to Tk578 crore in the first quarter of 2026 from Tk559 crore a year earlier, according to its quarterly financial statement filed with the Dhaka Stock Exchange.

The growth was driven entirely by exports. While domestic revenue slipped marginally to Tk555 crore from Tk558 crore, export earnings reached Tk21.7 crore, compared with virtually nil in the corresponding period of 2025.

Despite the higher turnover, operating profit fell to Tk15.8 crore from Tk17.3 crore, as operating expenses rose to Tk127 crore from Tk119 crore.

The biggest drag, however, came from financing costs. Net finance costs surged nearly 60% year-on-year to Tk67 crore from Tk47 crore, while total finance expenses exceeded Tk72 crore due to the company's substantial borrowing requirements.

As a result, Singer's net loss widened to nearly Tk56 crore in the January-March quarter, compared with Tk35 crore a year earlier. Its loss per share also deepened to Tk5.60, from Tk3.50 in the same period last year.

The weak earnings further dented investor confidence. Yesterday, after the company disclosed its quarterly results, there were virtually no buyers for Singer shares on the DSE, reflecting bearish sentiment over its deteriorating financial performance.

The AI boom has helped drive investments in intangible assets such as software, data and research to a record high in 2025, the United Nations’ patent and innovation agency said Wednesday.

These investments, which encompass research and development, software and data, brands, design and organisational know-how, represent a large and growing share of the global economy, the World Intellectual Property Organization said.

Across the 29 economies studied, which account for 57 percent of global GDP, intangible investment “reached an all-time high” of over $10 trillion in 2025, according to WIPO.

The study included the United States, EU nations, Britain, Japan, India as well as other countries. However, China, the world’s second-largest economy, was not among the nations covered.

The record figure was detailed in the World Intangible Investment Highlights 2026, which WIPO co-published with the Rome-headquartered Luiss Business School.

Since 2008, intangible investment has grown by 3.5 percent annually in real terms; way ahead of tangible investments, which saw annual growth of just 0.98 percent over the same period, the study said.

“These figures point to a durable structural shift in the composition of investment, with intangible assets playing a growing role in value creation,” WIPO said.

The United States accounts for the largest share of intangible investment by far, reaching nearly $5 trillion in 2025.

This was around six times the level in second-placed Japan, with Germany third.

Sweden retains its position as the most intangible-intensive economy, reaching 17.4 percent of GDP in 2025, followed by the United States at 15.6 percent and France at 15.2 percent.

Meanwhile India, Japan and the Philippines recorded the fastest growth, said WIPO.

The report said intangible investments proved more resilient than tangible ones in the face of high interest rates, trade tensions and the economic slowdown seen in recent years.

Between 2020 and 2025, they grew by 5.5 percent annually in real terms, compared to 3.2 percent for tangible investments.

The report said artificial intelligence was playing a major role in the transformation.

While it initially drives physical investments in data centres, semiconductors and energy infrastructure, WIPO estimates that its lasting impact stems primarily from investments in software, data, research and development, and corporate reorganisation.

Investment in software and databases recorded the highest aggregate real growth rate across all intangible asset categories between 2013 and 2023, at 7.3 percent annually, ahead of organisational capital (4.9 percent) and brands (4.4 percent).

The report also highlights the economic importance of brands, with investments across the 29 economies reaching $1.4 trillion in 2025.

The US leads global brand investment by a wide margin, exceeding $566 billion in 2025 -- more than four times the figure for Britain, in second place on $137 billion, followed by Japan on $112 billion.

Established in 1967, Geneva-based WIPO helps creators and entrepreneurs protect their intellectual property across borders.

The share price of Emerald Oil Industries surged by the maximum daily limit, jumping 9.62% on the Dhaka Stock Exchange (DSE) following the announcement that it is preparing to resume production at its factory, which has been shuttered for over two years.

Its factory remained shuttered down since 1 January 2024 due unavailability of gas. It also turned non-compliant as it stopped disclosing its quarterly and annual financials in January 2023.

It had published its half-yearly financials for FY23, and since then investors remained in the dark about the company.

In a disclosure today (8 July), in a bid to reverse its fortunes, Emerald Oil said its board authorised management to resume factory operations as well as repair and maintenance to return to operation."

"The company has also informed that as per decision of the management, it has already procured a new boiler machine, new transformer, electric power substation and the installation of these machines are under process."

"Moreover, the company is also repairing the refinery unit. The total amount of procurement and maintenance is worth Tk10 crore approximately," it said.

With the disclosure about resuming operation, driven by investor optimism, the stock jumped 9.62% to close at Tk26.20 apiece on the DSE.

Market data showed massive trading volume, with 7.62 lakh shares changing hands, generating a total turnover of Tk1.99 crore.

The prolonged operational freeze and reporting lapse led the DSE to downgrade Emerald Oil to the Z category on 2 December 2025, after operations had remained halted for over six consecutive months.

According to its financial data, it had made a profit of Tk6.60 crore in FY23, and paid a 10% cash dividend to its shareholders.

After a hiatus of four years, Emerald Oil had returned to full-fledged production thanks to fresh investment in January 2022 under new owners.

The investment, which came from Minori Bangladesh, a subsidiary of Japanese farming company Minori Co Limited, had brought hope among the shareholders, who are now hoping to get good returns from their investments.

With its signature product – the rice bran edible oil, branded as Spondon, Emerald Oil had been a profitable firm until 2016.

The following year, when a loan scam of its founder came to light, the company started losing business and operation was halted due to a shortage of working capital.

Facing corruption charges, the founder fled the country and it was the shareholders who suffered the effects of a share price drop.

The Bangladesh Securities and Exchange Commission (BSEC), as a part of its drive to resurrect the listed sick companies, in January 2021, dissolved the board and reconstructed it by appointing five independent directors.

As per the agreement, Minori Bangladesh owns 30% shares from the company's directors and sponsors.

Emerald Oil, incorporated in 2008, began production of its Spondon-branded rice bran oil in 2011 and entered the bourses in 2014.

The company raised Tk20 crore issuing two crore general shares at a face value of Tk10.

But, in a few years, it melted down both in its business and in the stock market as soon as the founder's loan scams unfolded.

Prime Minister Tarique Rahman has said the government will identify those responsible for the continued stock market downturn that caused losses to thousands of investors and bring them to justice.

The government is also determined to restore investor confidence through a fair investigation and trial of the irregularities and manipulations that happened during the Awami League regime, he said while responding to a question from Khulna-4 MP Sk Azizul Baree Helal during the budget session of the Jatiya Sangsad, with Speaker Hafiz Uddin Ahmad in the chair today (8 July).

Tarique said the Anti-Corruption Commission had already conducted investigations into allegations of capital market manipulation, leading to the identification of several suspects and the filing of cases against them.

Explaining the reasons behind the prolonged decline in the stock market during the Awami League's tenure, the prime minister said findings from experts, investor organisations and investigative agencies pointed to a range of structural weaknesses.

These include market manipulation, artificial inflation and suppression of share prices, irregularities in initial public offerings, bonds and other securities, weak regulatory oversight, poor corporate governance, lack of transparency in financial disclosures, limited participation by institutional investors, declining investor confidence, inconsistent policies and the absence of a capital market-friendly tax regime.

Tarique said the Bangladesh Securities and Exchange Commission has already imposed fines amounting to Tk1,497 crore on individuals and institutions found involved in market manipulation, irregularities and corruption.

He added that probe body reports had also been forwarded to the anti-graft commission for further legal action against those responsible.

The premier said a new securities and exchange commission has already been formed with the appointment of an experienced chairman and three commissioners. Following the formation, the long-standing floor price mechanism was withdrawn to improve market efficiency.

Tarique outlined a series of reform initiatives designed to deepen the capital market and make it more investor-friendly. These include facilitating the direct listing of profitable state-owned enterprises, multinational companies and fundamentally strong firms, encouraging small and medium-sized enterprises to raise funds from the market and introducing legal protection for whistleblowers who report market manipulation.

Replying to two separate questions on the defence, the premier said the government plans to spend nearly Tk86,000 crore over the next decade to modernise the Bangladesh Army as part of a broader initiative to strengthen national security.

The government also plans to significantly enhance the capabilities of the navy by acquiring modern frigates, corvettes, offshore patrol vessels and submarines, while fourth-generation multirole combat aircraft, attack helicopters, medium-range missile defence systems, anti-drone technology and electronic warfare systems will be procured for the air force.

Besides, a plan to develop a "Made in Bangladesh Defence Industry" through a national defence industrial policy has been taken, alongside the establishment of Defence Industrial Zones, he said.

Tarique said the implementation of these plans would enhance the army's overall combat capability. The programmes include acquiring new tanks and armoured fighting vehicles to improve ground warfare capability, alongside modern artillery rocket systems, anti-tank weapons, and short- and medium-range air defence systems to strengthen precision strike and air defence capabilities.

He also said that strategic and operational mobility will be improved by expanding the army's air assault capability, air transport capacity for troops and equipment, and riverine transport operations.

The IMF on Wednesday cut its 2026 growth projection for the world economy again, saying an AI boom has not fully offset the fallout from war in the Middle East.

Global economic growth is now estimated at 3.0 percent this year, the International Monetary Fund said, down from 3.1 percent in its April forecast. The estimate was made before fresh exchanges of fire between the United States and Iran in recent hours.

It is the second time this year that the fund has lowered its overall growth expectations. The latest estimate marks a cooling from the 2025 growth rate as well.

Global inflation meanwhile is anticipated to accelerate to 4.7 percent this year, a higher level than earlier projected. Still, the overall growth slowdown is modest, as momentum in artificial intelligence -- driven by demand -- partially offsets the effects of the war.

Global economic growth is now estimated at 3.0 percent this year, the International Monetary Fund said, down from 3.1 percent in its April forecast

The IMF said it expects global growth to pick up in 2027 to 3.4 percent.

Deniz Igan, division chief at the IMF’s research department, told AFP that its forecasts are “broadly unchanged” cumulatively for the next two years and described the bounceback as “a V-shaped recovery.”

The delayed recovery from war on Iran, longer disruptions and higher prices is part of the reason the world economy will take a bigger hit this year, she added.

The IMF flagged that fallout varies widely.

“Energy exporters outside the conflict zone benefit from favorable terms of trade, whereas economies plugged into the technology-led upturn experience stronger activity even if they are energy importers,” the fund said.

“In contrast, activity weakens for energy importers with limited participation in the technology value chain,” it added.

US-Israeli strikes targeting Iran since February 28 sparked Tehran’s retaliation in virtually blocking off the Strait of Hormuz, while plunging the Middle East into war.

As traffic stalled in the key waterway for energy transit, global oil prices soared -- weighing on economies.

Oil and gas shipments resumed as a temporary US-Iran deal paused hostilities, but temperatures are again rising.

Igan -- speaking before hostilities resumed, sparked by Iranian attacks on ships in the strait -- said she expected the normalization of traffic through the waterway by 2027.

- ‘Glaring differences’ -

Although the world economy has weathered the shock from the war so far better than feared, the IMF warned: “The global picture blurs glaring differences across countries.” Retail gasoline costs jumped by 30 percent in emerging Asia after the onset of war, and only by 15 percent in Latin America.

While the US economy is still set to expand 2.3 percent this year, growth in the Middle East and central Asia was downgraded by 1.2 percentage points to 0.7 percent.

The downgrade is “consistent with a longer closure of the Strait of Hormuz,” the IMF said, but it added that it expects a larger rebound in the future.

The euro area is set to grow 0.9 percent this year, also a downward revision. Growth in France is pegged at 0.6 percent -- 0.3 percentage points lower than earlier expected.

The world’s second biggest economy, China, saw its growth projection adjusted upwards slightly to 4.6 percent.

Yet, the effects of the war have not fully passed through, the IMF said.

The release of strategic reserves has provided some relief amid reduced energy flows, but there could still be weakness ahead.

The IMF also warned that the possibility of a “renewed Middle East conflict looms large and could extend commodity price volatility, further threaten supply chains, raise prices, and weigh on financial conditions.”

Trade fragmentation could accelerate too, risking higher prices.

Nonetheless, there were some bright spots, the IMF said.

There was a “positive surprise” from some economies key to the global technology supply chain, despite their exposure to disruptions from the war.

The top four net exporters of AI-related hardware -- Taiwan, South Korea, Thailand and Malaysia -- saw resilient growth.

Igan added that expectations of higher inflation this year merely mark a pause, “not a break from the disinflation trend.”

Umpteen differences of opinion between the Asian Development Bank and the Bangladeshi financial-sector regulatory agencies delay the launch of ADB-sponsored taka-denominated bonds for both local and global subscriptions, officials say.
The Manila-based lender plans to introduce the local-currency bonds first on the domestic market and later for overseas subscription.Bangladesh Investment GuideBack in December 2019, the ADB in a letter to the government first expressed interest in issuing both onshore and offshore taka bonds in and outside Bangladesh. Earlier, an ADB delegation, led by then ADB country director Manmohan Parkash, met then finance minister AHM Mustafa Kamal late November discussing the matter.

However, things didn't progress as expected.

In a latest bout, the ADB in May last year submitted its proposal to the Economic Relations Division (ERD) on the issuance of bonds. Later, the Economic Relations Division forwarded the proposal to the Finance Division, Bangladesh Securities and Exchange Commission (BSEC), the National Board of Revenue (NBR), Bangladesh Bank, and the Financial Institutions Division for their opinion.

The ERD later forwarded the regulatory bodies' opinion to the ADB in November last year seeking its response on the opinions. The ADB in the first week of May forwarded its response to the ERD.

A senior official at the Economic Relations Division told The Financial Express an inter-ministerial meeting was scheduled to be held on June 14 last with ERD secretary Shahriar Kader Siddiky in the chair to discuss the regulatory agencies' comments on ADB's proposal and the subsequent response from the Asian Bank.

The meeting was organised to discuss how to lessen the differences of opinion between the ADB and the government bodies on the lender's proposal. However, the meeting was later postponed.Economic Trend Analysis

Sources say in the proposal the ADB has sought an evergreen approval from the ministry of finance to undertake local-currency operations on a recurring basis as its bond issuances are linked to multiple projects that may require extended implementation periods.

However, Bangladeshi officials argue that the sale of BDT bonds on the international market can play a positive role in familiarising the country to investors and investing the proceeds within Bangladesh can help increase foreign-currency reserves. "Nonetheless, approval granted should have a defined time limit."

Also, the ADB has sought permission from the government to allow local investors or resident institutions to buy local-currency bond without prior approval from the regulator concerned.

However, the government agencies say resident institutions do not have a general authority to purchase bonds from a non-resident institution like the ADB. They say, it is essential for local investors/resident institutions to obtain approval from central bank to invest in ADB's bonds as it is identified as a capital account transaction.

In response, the ADB fears that the requirement to obtain prior approval before investing in ADB bonds "would effectively limit ADB's potential investor base".

The ADB also sought approval for exchange of bonds proceeds into other currencies which the government agencies find the basis for this request "not clear" as the funds are intended for investment in Bangladesh.Financial News Subscription

In response, the ADB says, the ability to freely exchange proceeds of its debt enables ADB to efficiently manage liquidity, meet debt service obligations, and allocate funding in support of development operations.

"For onshore bonds, ADB shall reserve the right to convert the bond proceeds. For offshore bonds, ADB will need to convert the USD proceeds into BDT in order to support loan operations in Bangladesh and thereafter convert BDT back into USD to redeem the offshore BDT-linked bond," said the lender.

Also, the ADB has sought confirmation of tax exemption to all investment income arising from its investments in Bangladesh and also interest payments by ADB on its local currency bonds.

The ADB also demands that its local-currency bonds be exempt from local-registration requirements as "this will limit ADB's Taka bond operations". The ADB also wants permission to use the word 'Bank' in its marketing material without having a domestic banking licence.

The regulatory bodies have opined that using the word 'bank' without a banking licence is not allowed in the Bank Company Act 1991.

Furthermore, the Bank seeks confirmation that all domestic institutional investors, including pension funds, provident funds, insurance companies and financial institutions, may invest in the local-currency bonds.Bangladesh Investment Guide

However, the financial-sector regulators say the pension funds, provident funds, insurance companies, banks and financial institutions are the main investors in government bills and bonds. "Therefore, raising fund from these investors by onshore bond and investing that fund in the government bill/bonds could be recognised redundant and not viable for market development."

However, the ADB says its bonds are "not meant to compete with local government bonds/bills. ADB bonds will only be issued on the back of ADB projects".

The sponsor also seeks confirmation that the local-currency bonds will be eligible instruments for reserve requirement purposes of commercial banks in Bangladesh.

In response, the regulatory bodies mention that according to the current policies, no bank, financial institution, or any other international organisation is allowed to participate in Central Bank Repo or Reverse Repo/Standing Lending Facility using any securities other than government securities which are the eligible instrument for statutory reserves.

"If bonds issued by the ADB were allowed for use in central bank Repo and Standing Lending Facilities and eligible instrument for statutory reserves, it could substitute the demand for government securities and impede the government's ability to finance its budget deficit, thus hinder government's debt-servicing and-fiscal planning," they say in their opinion.

"Granting ADB bonds this facility as an alternative instrument to government securities could have a negative impact on the government's debt management and fiscal policy," they add.

A senior ERD official says the differences have to be minimised between the two parties through discussions for a way forward.

Contacted Wednesday, ERD secretary Shahriar Kader Siddiky told The Financial Express that a special assistant to the Prime Minister is working on the local-currency- bond issue alongside different bodies under the Ministry of Finance.

"They can give an idea how it is advancing," he says, expressing his lack of knowledge about the progress on the matter.

Prime Minister Tarique Rahman on Wednesday unveiled a wide-ranging reform agenda to restore stability in the country’s stock market, rebuild investor confidence and bring to justice those responsible for market manipulation that left thousands of investors financially ruined.
Replying to a written question during the 21st sitting of the first budget session of the 13th Jatiya Sangsad, the prime minister said the government has a plan to identify all those responsible for the prolonged decline of the stock market and take legal action against them.

He said investigations into stock market scandals have already been conducted through the Anti-Corruption Commission (ACC), leading to the identification of several individuals and the filing of cases against them. Investigations are continuing to determine whether other individuals or institutions were involved.

The parliamentary sitting, chaired by Speaker Hafiz Uddin Ahmed, took up the question raised by lawmaker ABM Mosharraf Hossain on behalf of Khulna-4 MP SK Azizul Bari.

The prime minister said various experts, investors’ associations and investigative bodies had examined the reasons behind the persistent downturn of the capital market during the previous Bangladesh Awami League government.Stock Market Research

According to those findings, the principal causes included market manipulation and artificial price inflation or suppression, irregularities in initial public offerings (IPOs), bond issues and other securities, weak regulatory oversight, delayed enforcement actions, poor corporate governance, lack of transparency in financial reporting, limited participation by institutional investors, declining investor confidence, policy inconsistencies and the absence of an investor-friendly tax regime, he added.

He said the Bangladesh Securities and Exchange Commission (BSEC) has imposed fines amounting to Tk 14.97 billion on individuals and institutions involved in market manipulation, irregularities and corruption. Reports prepared by investigation committees identifying those responsible have also been forwarded to the ACC for further legal action.

The prime minister said the government is determined to restore stability in the capital market and strengthen investor confidence by promoting good governance, transparency, accountability, greater market depth through product diversification and wider investor education.

As part of that effort, he announced a series of priority programmes, saying that, “The government appointed a new BSEC chairman and three commissioners on June 4 to strengthen the regulator with experienced professionals. Soon after taking office, the new commission withdrew the long-standing floor price mechanism.”

The government will encourage profitable state-owned enterprises to list on the stock exchanges through direct share offloading, while creating opportunities for multinational corporations and other large-cap companies to do the same, the PM said.Investing

“It will also encourage fundamentally strong companies, including small and medium-sized enterprises (SMEs), to enter the capital market.”

“To curb market manipulation, legal protection and incentives will be introduced for whistleblowers reporting irregularities.”

“The government also plans to introduce a new policy for the enlistment of approved auditors and audit firms to strengthen the auditing of listed companies and market intermediaries.”

“Other initiatives include launching a Foreign Portfolio Investment (FPI) onboarding portal, reforming regulations in line with international standards, introducing a one-stop securities custodian service, reducing capital gains tax, abolishing double taxation on dividend income and digitalising the process of opening Beneficiary Owner (BO) accounts and repatriating investment capital.”

The government will amend securities laws to allow direct filing of cases before special capital market tribunals and establish both a Capital Market Reform Commission and a Special Investigation Commission to oversee reforms and investigate irregularities, the prime minister added.

The reform package also includes the use of blockchain technology to expand market infrastructure and investment products, the introduction of online and mobile-based BO account opening and trading through electronic Know Your Customer (e-KYC) services, investment-friendly tax reforms, banking and mobile financial services (MFS)-based BO account transactions, artificial intelligence-powered market surveillance, stronger corporate governance standards, enhanced investor protection measures, modernisation of securities laws and trading of government securities—including Treasury bonds, Treasury bills and government Sukuk—through the stock exchanges to broaden retail investor participation

Multilateral financial institutions have failed to address the economic fallout of geopolitical conflicts, leaving developing countries to bear billions of dollars in additional costs without adequate international support, said Rashed Al Mahmud Titumir, the prime minister’s adviser on finance and planning.

The global development finance system must adapt to a “new normal” of repeated geopolitical and economic shocks, he said at the launch of the Organisation for Economic Co-operation and Development (OECD)’s Multilateral Development Finance 2026 report yesterday, organised by the Centre for Policy Dialogue (CPD).

“Countries like Bangladesh, which are accountable to their citizens, cannot simply pass on higher global energy prices overnight,” Titumir added.

Referring to the recent Middle East conflict, he said Bangladesh had to absorb an additional $3.46 billion in energy costs until June as the government did not fully pass on higher global fuel prices to consumers.

“Imagine what an additional $3.46 billion means for a developing country,” he said.

“If we raise domestic energy prices immediately, inflation will rise further. If we keep prices stable, the government will have to bear higher subsidies.”

GLOBAL INSTITUTIONS NEED TO REBUILD TRUST

Titumir said international organisations had remained largely silent despite the pressure on import-dependent economies.

“I have not seen organisations such as the OECD, the IMF or others actively addressing this challenge,” he said. “This does not frustrate us, but it shows that multilateralism must reclaim its moral authority.”

He said discussions on development finance often focus on declining aid flows, but international financial institutions have failed to address the direct costs of geopolitical conflicts, including higher energy prices, freight charges and supply-chain disruptions.

Many low- and middle-income countries depend heavily on imported fuel and food and have limited capacity to absorb such shocks without affecting economic stability, he added.

“The recent Spring Meetings ended without any proposal for an automatic debt suspension mechanism during global crises,” Titumir said.

“I also saw no meaningful initiative from the OECD or other international organisations to create secure energy and food corridors, despite many developing countries being net food importers and heavily dependent on global supply chains.”

He said freight costs had also surged during recent conflicts, further increasing import bills for countries like Bangladesh, while the international response remained limited.

Titumir warned that multilateral institutions could lose credibility if they failed to respond to the challenges faced by developing countries.

“If they remain silent during times of crisis, how can they continue to earn the trust of people around the world?” he asked.

He called for reforms, including temporary debt relief measures and coordinated efforts to protect energy and food supply chains during conflicts.

The adviser also questioned whether current climate finance systems properly consider the vulnerability of recipient countries.

“We often discuss climate change, but is there a clear link between a country’s vulnerability and the amount of climate finance it receives? I do not think so,” he said.

He argued that countries most affected by climate risks should receive greater financial support. He also expressed concern over the slow progress in making the Loss and Damage Fund operational, saying developing countries were under pressure to pursue low-carbon growth while facing increasingly costly borrowing.

Titumir said multilateral development institutions should be held to the same accountability standards expected from national governments.

“Just as national governments must remain accountable to their citizens, multilateral development institutions must also be accountable to the countries and people they serve,” he said.

Referring to the OECD report, he said it should be viewed not only as a warning about declining aid flows but also as a call to rethink the global development finance system.

“The institutions that shape this system must also rethink how they operate,” he said.

“We need a multilateral development financing system that is more resilient, inclusive and better prepared to address the challenges of the twenty-first century, especially in a world where uncertainty has become the new normal.”

According to the OECD report, the multilateral development system has reached a critical turning point. Contributions from Development Assistance Committee members fell by more than 15 percent in 2024 and are projected to decline by 23 to 30 percent by 2027, signalling a prolonged downturn.

The report warned that the system’s dependence on a few major donors has increased its vulnerability. Eleven DAC members, accounting for about two-thirds of total contributions, announced aid cuts in 2025.

CPD Executive Director Fahmida Khatun moderated the event, which was attended by economists from South Asian countries.

Foreign portfolio investors (FPIs) are steadily pulling out funds from Bangladesh's equity market as they have been moving assets to developed markets amid persistent macroeconomic challenges stemming from geopolitical tensions.

Net investment by overseas investors in the 12 months to May this year stood at negative Tk 4.30 billion, meaning they sold more shares than they bought. Foreign investors purchased shares worth Tk 21.12 billion, while selling shares worth Tk 25.42 billion during the period, according to market data.

Market analysts said the sustained outflow reflects a cautious stance among foreign investors as uncertainty over global economic growth, geopolitical conflicts and relatively attractive returns in developed markets continue to weigh on investment decisions.

Md Akramul Alam, head of research at Royal Capital, said multiple factors, including persistent macroeconomic challenges and global factors, have driven the prolonged foreign fund outflow.

"The overall economic activity remained sluggish, while profitability of major listed companies, including multinational firms, stayed subdued due to high input costs," he said.

The private sector credit growth remained low at 4.98 per cent in May this year, reflecting weak business confidence and tighter lending conditions.

The prospect of a sharp recovery in private sector credit demand looked slim, and that discouraged fresh investments, said Mr Alam.

Moreover, the US-Israel war on Iran has already triggered volatility in global oil prices, raising concerns about inflation and broader economic spillovers in Bangladesh.

Inflation hovered around 9 per cent during the time, and analysts warned that price pressures may persist in the coming months due to continuing global uncertainties, supply disruptions and elevated import costs.

The trend is not unique to Bangladesh. Global fund managers withdrew a record US$137.36 billion from major Asian equity markets during the first half of 2026, marking the fastest six-month capital outflow from the region since at least 2010 after strong gains over the previous two years, according to international media reports.

The outflows reflect concerns over slowing global growth, geopolitical tensions across regions and volatile crude oil prices, reducing investors' appetite for frontier and emerging markets.

Countries including India, South Korea, Taiwan, Thailand, Indonesia, Malaysia, the Philippines and Vietnam have also witnessed foreign fund withdrawals, although the scale has varied across markets.

Analysts said one of the key drivers behind the shift is the relatively higher return available in the United States. Elevated US Treasury yields have encouraged many global investors to move funds into American government securities, which offer attractive returns with lower risk.

The strength of the US dollar has further reinforced the trend by making developed markets more attractive than emerging economies.

Mr Alam also pointed to a global transition in investment towards artificial intelligence-focused companies, reducing portfolio allocations to markets such as Bangladesh and India, which are perceived to be lagging in the AI-driven investment cycle.Economic Trend Analysis

"This trend could reverse once the AI trade, which appears to be in bubble territory, eventually cools off," he said.

Mir Ariful Islam, managing director and chief executive officer of Sandhani Asset Management, attributed the foreign fund outflow to weak investor confidence, a strong US dollar and instability in the financial sector.

When the local currency weakens, foreign investors incur losses as the value of their assets falls even when share prices remain unchanged.

Moreover, foreign investors typically seek a stable, predictable, and long-term policy environment to ensure the safety of their investments, he said.

The newly elected government has yet to present a clear economic roadmap, while the Middle East conflict has further increased global uncertainty.

"Foreign investors are likely to look for greater policy clarity and consistency before increasing their exposure to Bangladesh's equity market," Mr Islam told The FE over the phone.

When it comes to investing in stocks in Bangladesh, foreigners usually prefer multinational companies. Currently, they are not interested in putting their money into these companies either, owing to lower-than-expected earnings in recent quarters.

After a significant decline in annual profit in 2025, the aggregate profits of the 11 multinational companies fell 6 per cent year-on-year to Tk 12.20 billion in January-March this year, according to company disclosures.

BAT Bangladesh's profit nosedived to Tk 5.84 billion in 2025, the lowest since its listing, due to lower sales, higher excise duty, and one-off costs for its Dhaka factory closure.

The tobacco leader's first quarter profit also dropped 34 per cent year-on-year to Tk 2.10 billion through March this year.

As a result, BAT's foreign stake dropped from 3.73 per cent to 2.99 per cent between June last year and June this year.

Grameenphone, the largest stock in terms of market capitalisation, reported its lowest annual profit in 2025 in eight years. However, its first quarter profit grew 4.4 per cent through March this year.

In the meantime, foreign stakes in GP fell to 0.33 per cent in June this year from 0.98 per cent in June last year.

Among the local firms, Olympic Industries experienced a similar trend. Its foreign stake fell to 27.62 per cent in June this year from 34.2 per cent in June last year.

Despite persistent selling of foreign holdings, Mr Islam said the domestic stock market has remained resilient in recent months, supported by strong participation of local institutional and retail investors amid falling Treasury bond yields.

However, he said foreign investors are closely monitoring Bangladesh. "Portfolio investment may pick up again if macroeconomic indicators improve and geopolitical tensions ease."

The government has imposed a fresh round of austerity measures for the fiscal year 2026-27, restricting spending on new vehicles, buildings, land acquisition and most foreign travel to rein in public expenditure, curb inflation and preserve macroeconomic stability.

In a circular issued yesterday, the Finance Division directed all ministries, departments, autonomous bodies, state-owned enterprises, statutory organisations and public sector corporations to cut costs from both operating and development budgets.

The move comes as the government faces mounting challenges in maintaining public expenditure amid slower-than-expected revenue growth.

BORROWING OVERSHOOTS AMID REVENUE SHORTFALL

In the just-concluded fiscal year, government borrowing from the banking sector exceeded its initial target of Tk 104,000 crore.

Last month, the National Board of Revenue (NBR) said its total collection might reach Tk 415,000 crore in the 2025-26 financial year, falling Tk 88,000 crore short of its target.

The tax authority, which generates 86 percent of the country’s annual revenue, recorded 10 percent year-on-year growth to Tk 360,642 crore during the July-May period of the 2025-26 fiscal year.

For the current fiscal year, the government has set the NBR a revenue collection target of Tk 604,000 crore to help finance the Tk 938,000 crore budget.

Analysts have said achieving the target will be challenging given the current pace of revenue growth and the absence of reforms.

The economy is also grappling with high inflation, which averaged 8.68 percent in the 2025-26 fiscal year, subdued private investment and renewed global uncertainty caused by the US-Israel-Iran conflict. The BNP-led government, which was sworn in this February, first tightened public spending through a directive issued in March.

SPENDING FREEZE HITS PURCHASES, ALLOCATIONS

In its latest directive, issued yesterday, the Finance Division said all block allocations under the operating budget have been frozen, while the purchase of motor vehicles, vessels and aircraft has been suspended.

However, exceptions will be allowed for replacing government vehicles that are more than 10 years old and for newly established government institutions, subject to prior approval from the Finance Division.

Except for ambulances and security vehicles, all replacement or newly purchased government cars and jeeps must be fully electric.

The government has also suspended spending on the construction of new residential, non-residential and other government buildings.

Only projects where construction has reached at least 70 percent completion will be allowed to continue, subject to Finance Division approval.

The circular also suspended spending on land acquisition under the operating budget and discontinued interest-free loans for government employees to purchase private vehicles.

Under the Annual Development Programme (ADP), the government has also banned the purchase of vehicles for development projects. The restriction, however, will not apply to projects where vehicle procurement had already been approved before the circular was issued.

Land acquisition under development projects will require prior approval from the Finance Division after all legal and administrative formalities have been completed.

Similarly, any spending from the government’s reserved allocation for “development assistance for special needs” under the Planning Commission will require prior approval from the Finance Division.

The government has also significantly tightened rules governing overseas travel by public officials.

All government-funded foreign training programmes, seminars, symposiums and workshops have been suspended.

Officials will still be allowed to travel abroad for master’s and PhD programmes funded through scholarships or fellowships provided by foreign governments, universities or development partners.

Participation in overseas training programmes financed entirely by foreign governments, international organisations or development partners will also remain permissible.

The foreign component of mandatory and basic training programmes may continue if organised by appropriate overseas universities or institutions.

The circular also permits overseas travel for highly specialised inspections, such as Pre-shipment Inspection (PSI) and Factory Acceptance Tests (FAT), but only where the products are technically complex, or such inspections are mandatory.

In such cases, only relevant experts or technically certified officials may undertake the visits.