Benapole Customs House, the country's largest land port, missed its revised revenue target by Tk4,731 crore in FY2025-26, amid lower imports, slower trade and growing concerns over alleged irregularities in customs management.The revised revenue target for the fiscal year was Tk11,290 crore. However, the actual collection stood at Tk6,559 crore, according to customs data. In FY2024-25, revenue collection was Tk7,029.38 crore.Imports through the port also declined to 1.40 million tonnes in FY2025-26 from 1.60 million tonnes a year earlier, a drop of nearly 197,000 tonnes. NBR data also show lower imports of high-duty items, including fruits, sarees and three-piece suits.While officials cite lower imports, sluggish international trade and changes in the tariff structure as reasons for the shortfall, recent allegations of weighbridge manipulation, customs evasion, undeclared imports, misuse of South Asian Free Trade Area (SAFTA) facilities and theft of goods from port sheds have raised fresh concerns.Business leaders and customs-related stakeholders claim better control of such irregularities could have positively affected revenue collection.

According to traders and importers, an organised syndicate has long been exploiting false declarations, weight manipulation and duty concessions to evade customs duties.

Data from Benapole Land Port show duty rates on SAFTA imports rose from 7% in FY2023-24 to 11% in FY2024-25 and 35% in FY2025-26. Traders allege the increase has encouraged attempts to clear high-duty goods under declarations for lower-duty items.

A recent letter signed by Benapole Customs Assistant Commissioner Atal Goswami triggered fresh scrutiny. On 14 June, two different empty-weight records were generated at the same time for the same Indian truck at a digital weighbridge. One record showed 4,880kg and the other 4,920kg.

Customs sought a written explanation from port authorities within three working days. A customs official, speaking on condition of anonymity, said the consignment contained bicycle parts and was later detained for investigation.

Several incidents between March and June have intensified concerns. On 12 March, customs uncovered the alleged theft of Indian sarees and three-pieces worth nearly Tk6 crore, imported under a declaration for baking powder. After an investigation, customs filed a case against 18 people on 10 June.

Five days later, goods worth about Tk1.5 crore were seized from Shed No. 26 after being imported under declarations for erasers and pencils.

On 25 April, customs detected weight discrepancies involving a truck carrying imported grapes. Although an investigation followed, those concerned attributed the issue to a technical fault in the weighing equipment.

On 21 June, BGB seized a truck carrying Indian sarees and cosmetics worth about Tk2.5 crore. Assistant Revenue Officer Indrajit Mukherjee was detained, while Assistant Revenue Officer Ariful Islam Chowdhury, customs sepoy Mohammad Sagar and several others faced departmental action.

On 25 June, CCTV footage captured the transfer of 40 packages from an Indian truck to a Bangladeshi truck in the chemical zone. Customs later found a discrepancy involving 2,784kg of goods.

Port authorities filed a case against 10 people, including Ansar members, private security personnel, truck drivers, helpers and customs officials. The FIR claimed that goods had been removed from within the port using counterfeit entry passes, contravening established security protocols.

Between March and June, four separate cases were filed over customs evasion, theft of goods and security breaches. A total of 54 people, including unidentified suspects, were accused. During this time, the licences of nine clearing and forwarding agents were suspended on a temporary basis.

While departmental action has been initiated against several customs officials, investigations into the majority of the high-profile incidents remain ongoing.

Benapole Import-Export Association General Secretary Ziaur Rahman said incidents of theft or duty evasion inside port sheds should be investigated impartially, including the role of those responsible for supervision. "Unless the actual culprits are identified, such irregularities will persist," he stated.

Businessman Habibur Rahman Hobi said even minor manipulation of digital weighbridges could cause the government to lose crores of taka in revenue and called for round-the-clock technology-based monitoring.

Benapole Land Port Director Shamim Hossain stated that allegations of weighbridge manipulation and other irregularities are being taken with the utmost seriousness. An inquiry committee has been formed, and action will be taken if wrongdoing is found.

Benapole Customs Commissioner Md Faizur Rahman said customs remained fully committed to preventing revenue leakage. "No one involved in weighbridge manipulation, false declarations or duty evasion will be spared," he said, adding that criminal as well as departmental action would be taken if evidence is found.

Jashore Chamber of Commerce Secretary Tanvirul Islam Sohan said repeated allegations involving weight discrepancies, recovery of high-duty goods, theft, duty evasion and administrative action had naturally raised questions about revenue management at the country's largest land port.

He called for impartial investigations, stronger technology-based monitoring and visible action against those responsible, alongside improved port facilities.

The government has suspended spending on the purchase of all types of motor vehicles, watercraft and aircraft under both the development and operating budgets for the fiscal 2026-27 to ensure prudent use of limited public resources, bring inflation down to a tolerable level and maintain macroeconomic stability.

In a circular today (8 July), the Finance Division also announced that interest-free special loans for government employees to purchase vehicles will remain suspended.

The circular further states that all foreign travels funded by the government for training programmes, seminars, symposiums and workshops have been halted. However, officials may still travel abroad to pursue master's and PhD programmes under scholarships or fellowships offered by development partners, universities, institutions or foreign governments.

It also allows participation in overseas training programmes financed by foreign governments, institutions or development partners. The overseas components of mandatory foundation and essential training programmes may also be conducted at appropriate universities or institutions abroad.

The restrictions will apply to the operating and development budgets of all government ministries and agencies, autonomous bodies, state-owned enterprises, statutory organisations, public sector corporations, state-owned companies and financial institutions.

The circular also states that no funds allocated under lump-sum provisions in the operating budget may be spent during the current fiscal year.

Although purchases of all types of motor vehicles, watercraft and aircraft under the operating budget have been suspended, exceptions will be allowed for replacing vehicles that are more than 10 years old. Newly established government entities may also purchase vehicles with prior approval from the Finance Division.

It adds that except for ambulances and vehicles used for security purposes, all replacement or newly purchased SUVs and cars must be fully electric vehicles.

No new residential, non-residential or other buildings may be constructed using operating budget funds. However, projects that are at least 70% complete may be finished with the approval of the Finance Division.

The Division also barred spending from the operating budget on land acquisition.

The circular similarly prohibits vehicle purchases under the development budget, although projects approved before the issuance of this circular may be exempted from this restriction.

Land acquisition under the development budget will be permitted only after completing all legal formalities and obtaining approval from the Finance Division.

Funds reserved under the Planning Commission's "Special Development Assistance" allocation may be spent only with prior approval from the Finance Division.

For pre-shipment inspections (PSI) or factory acceptance tests (FAT) under both the operating and development budgets, overseas travel will be considered only for experts or technically certified officials where the products are highly specialised or where PSI is mandatory.

In such cases, the finance ministry has instructed agencies to give priority to testing through internationally recognised institutions.

For all other expenditures, the ministry directed government agencies to ensure the best use of public funds and achieve value for money.

Asked about the total allocation for the expenditure categories now subject to restrictions, and how much the government expects to save through these austerity measures, Mohammad Zakir Hossain, deputy secretary at the finance ministry and signatory to the circular, said he was unable to provide the figures immediately.

Fahmida Khatun, executive director of the Centre for Policy Dialogue (CPD), told The Business Standard that the government's decision appeared to be a positive one in light of the current economic situation, marked by high inflation and weak revenue mobilisation.

She said the economy could not afford additional spending under the present circumstances and that there was no room for wasting even a single taka. Spending on unproductive sectors would only fuel inflation further, she said, stressing that public expenditure should instead be directed towards productive sectors to boost investment, employment and people's incomes.

"Although the government has announced an expansionary budget, it is also trying to exercise great caution in its spending. At the same time, it plans to implement a new pay structure for public sector employees at a substantial cost. In doing so, the government is having to make trade-offs in public spending to fulfil some of its political commitments," she added.

A high-level Bangladeshi delegation will travel to the United States next week to lobby 54 member-states of the UN Economic and Social Council (ECOSOC) for support to the country's request to defer its graduation from least- developed country (LDC) status by three years.Geographic Reference

The team, led by Commerce Minister Khandaker Abdul Muqtadir, is scheduled to leave Bangladesh on July 13 and return on July 19, officials said.

The delegation will also include ERD Secretary Shariar Kader Siddiky, Bangladesh's Permanent Representative to the United Nations, at least two private-sector business leaders and other government officials.

The Bangladesh delegation is scheduled to meet ECOSOC representatives at the UN headquarters in New York from July 15 to July 18, an official at the Economic Relations Division (ERD) said on Wednesday.

According to the ERD, the policy decision on LDC graduation rests with ECOSOC, acting on recommendations from the UN Committee for Development Policy (UNCDP), before being placed before the UN General Assembly for final approval.

"Our team will meet representatives of the 54 ECOSOC member countries at the UN headquarters. It will explain the reasons behind Bangladesh's request to defer its graduation," a commerce ministry official said.

An ECOSOC meeting is expected to be held on July 22, when Bangladesh's request could be considered. The council generally makes recommendations to the UNGA on requests for graduation deferrals.Economic Trend Analysis

Bangladesh formally requested the UNCDP several months ago to postpone its graduation from LDC status by three years.

The UNCDP is an expert subsidiary body of ECOSOC responsible for reviewing countries' eligibility for graduation from the LDC category.

The commerce ministry official said that although the timeline would become clearer after the ECOSOC meeting, the final decision would require approval by the UNGA.

Like Bangladesh, Nepal has also recently requested a three-year postponement of its graduation from LDC status.

Meanwhile, the government briefed foreign diplomats in Dhaka on July 2 in an effort to build international support for its request.

As the proposal will ultimately be placed before the UNGA, Bangladesh will need the backing of a majority of member states, the official added.

Government officials said Bangladesh's fate regarding the deferral request is likely to be decided at the UNGA session in September this year.

Although Bangladesh is scheduled to graduate from LDC status in November 2026, Dhaka has sought a three-year extension to better prepare for the transition in light of emerging domestic and global economic challenges.Time & Calendars

Citing external shocks, energy supply constraints, domestic political transition and other economic uncertainties, Bangladesh submitted its request to the UNCDP more than two months ago.

Another ERD official said that while ECOSOC's position would become clearer after its late-July meeting, the final decision would rest with the UNGA.

"Since Nepal has also sought a three-year deferral, the UN may adopt a common decision for both countries," he said.

Responding to Bangladesh's request, the UNCDP, in a letter dated June 1 to the ERD Secretary, expressed a positive view of the country's plea, although it did not specify any timeframe.

Earlier, the UNCDP recommended Bangladesh, Lao PDR and Nepal for graduation from LDC status in 2026.

The Bangladesh Bank has made it mandatory for banks to obtain certifications confirming that applicants were not involved in money laundering, fraud, fund diversion or misuse of previous loans before extending financing under the government's Tk20,000-crore pre-financing scheme aimed at reviving closed industrial and service sector enterprises.

The central bank issued a circular to all banks today (7 July), introducing additional conditions for lending under the scheme.

Under the new instructions, enterprises that are loan defaulters or have been involved in money laundering, fraud, forgery, diversion of funds or misuse of previous loan proceeds will not be eligible to receive financing from the fund.

To enforce these restrictions, banks must obtain certifications confirming that prospective borrowers have not engaged in such activities before approving loans.

The circular also requires banks with surplus liquidity to certify that those funds have been invested in the country's productive sectors.

The Bangladesh Bank first announced the scheme in a circular issued in June. The Tk20,000-crore fund forms part of the government's previously announced Tk60,000 crore "Production and Employment Revival" stimulus package.

The initiative is intended to restart closed factories, revive stalled export activities and create employment opportunities for unemployed young people through targeted credit support.

Under the scheme, participating banks will pay 4% interest to the Bangladesh Bank, while the maximum lending rate for borrowers has been capped at 7%. Borrowers will receive a six-month grace period on interest payments, after which interest servicing will commence.

The maximum loan available to any single company or business group under the scheme has been set at Tk200 crore. Each loan will have a maximum tenure of one year, although renewals will be allowed subject to the availability of funds and satisfactory repayment performance.

Foreign currency reserves have remained above the $31 billion mark after Bangladesh cleared nearly $1.5 billion in import bills through the Asian Clearing Union (ACU).
Net reserves stood at $31.72 billion, while gross reserves were $36.17 billion.

Bangladesh Bank reported these amounts at the end of Monday, using the International Monetary Fund's Balance of Payments (BPM-6) accounting method.
The net reserves were $33.20 billion and the gross amount was $37.85 billion at the end of Sunday.

Central bank spokesperson Arief Hossain Khan said the country's import bill of $1.48 billion for May and June was paid on Monday.

The reserves that remain after the adjustment can also cover four and a half months of import expenses, he said.
The reserves have been on a positive trend for the past few months.

Continued inflow of remittances coupled with the addition of a $1 billion budget support loan from the Asian Development Bank led to the net reserves exceeding $31 billion to $31.07 billion on Jun 14.

The gross reserves soared to $35.62 billion at that time.

Two weeks later, the BPM-6 estimate increased to $32.47 billion with the addition of $667.1 million in World Bank budget support loans.

On Jun 29, the gross reserves surged to $37.05 billion.

The net reserves jumped to $33.01 billion on Jul 2, boosted by remittances and export earnings. On that day, the gross reserves were $37.65 billion.

Bangladesh's infrastructure drive is reshaping not only the country's skyline but also the future of its steel industry.

As major projects such as the Padma Bridge, Dhaka Metro Rail, elevated expressways, economic zones and high-rise buildings require stronger and more durable materials, engineers and industry people say the focus must gradually shift from producing more steel to producing better-quality steel through advanced technology.

Industry insiders estimate that the country now consumes around 8 million tonnes of steel annually, with nearly 80% used in construction.

Backed by investments worth tens of thousands of crores of taka, the sector has reduced dependence on imported finished steel and created employment for hundreds of thousands of people.

Globally, steelmaking is undergoing a technological shift.

According to the World Steel Association, production through electric arc furnaces is expanding as countries focus on cleaner manufacturing, greater recycling and higher-quality steel.

Unlike conventional induction furnaces, modern electric arc furnaces combined with ladle refining furnaces allow manufacturers to better control chemical composition, remove impurities and produce more consistent steel.

Such qualities are increasingly needed for bridges, ports, airports, power plants and high-rise buildings, industry people said.

Despite its rapid expansion, much of Bangladesh's reinforcing bar production still relies on induction furnace technology, particularly among small and medium-sized mills.

While the technology helped build the domestic steel industry through lower investment and quick capacity expansion, engineers say future infrastructure will require better refining and stronger quality control.

Prof Md Aminul Islam, professor at the Department of Materials and Metallurgical Engineering of Bangladesh University of Engineering and Technology (Buet), said higher-grade construction materials could improve both structural efficiency and sustainability.

Upgrading from Grade-400 to Grade-500 reinforcing steel, while increasing concrete strength from 30MPa to 60MPa, could reduce structural weight by nearly 28% without compromising safety, he said.

He also said steel and cement together account for a significant share of global carbon emissions, underscoring the need for cleaner steelmaking technologies as Bangladesh prepares for its next phase of industrial and infrastructure development.

Leading producers invest in advanced technology

Some of Bangladesh's largest steelmakers have already begun shifting towards advanced production technologies.

Abul Khair Steel introduced one of the country's early electric arc furnace facilities in 2015. GPH Ispat followed with a Tk2,500 crore Quantum Electric Arc Furnace project at Sitakunda in 2020, while BSRM and KSRM have continued investing in automation, quality assurance and higher-specification production lines.

Manufacturers say these investments improve product consistency, reduce energy consumption, lower emissions and strengthen Bangladesh's ability to compete in export markets, where buyers increasingly demand certified and environmentally compliant products.

Industry executives believe technological upgrading is gradually becoming a competitive necessity rather than simply an engineering choice.

Real estate sector seeks higher standards

The country's real estate developers, among the largest consumers of construction steel, are also calling for higher-quality materials as urban buildings become taller and more technically demanding.

Ali Afzal, president of the Real Estate and Housing Association of Bangladesh (Rehab), said developers are increasingly prioritising structural durability over short-term cost.

"Buildings are expected to serve for generations. As Bangladesh is located in a seismically active region, earthquake resilience must remain a priority," he said.

"It is now time to gradually implement the mandatory use of refined, high-quality steel in major construction projects and ensure wider compliance with the Bangladesh National Building Code."

Industry insiders said stronger material standards would improve buyer confidence while supporting the long-term sustainability of Bangladesh's real estate sector.

Engineers call for updated practices

Construction engineers said building codes and industry practices should evolve alongside technological advancements.

Md Nurul Islam, chief engineer (implementation) of Rajuk, said demand from both government and private developers would ultimately determine the industry's direction.

"If demand for refined and higher-quality steel increases, manufacturers will naturally invest in producing it," he said.

He noted that public infrastructure projects account for a major share of steel consumption. While manufacturers are already capable of producing reinforcing bars up to Grade 700, the Bangladesh National Building Code currently allows Grade 500 reinforcement for most applications.

"We are gradually preparing our engineering workforce for greener and more advanced construction technologies," he added.

Md Shamsuddoha, additional chief engineer of the Public Works Department, said steel would remain indispensable for Bangladesh's development, but the industry must also reduce its environmental footprint through modern production technologies and greater recycling.

Investment remains a challenge

Industry leaders acknowledge that modernising Bangladesh's steel industry will require significant investment, reliable electricity supply and supportive industrial policies.

Electric arc furnace projects involve substantially higher capital expenditure than conventional melting technologies, making access to long-term financing and affordable energy essential for wider adoption.

M Zakir Hossain Khan, chief executive of Change Initiative, said Bangladesh now needs a national roadmap for cleaner steel production.

"Bangladesh should define how the steel industry will become cleaner, smarter, safer and more resilient by 2030 or 2035," he said.

He added that greater use of renewable energy, improved scrap recycling and adoption of Environmental, Social and Governance standards could help Bangladesh strengthen export competitiveness and position itself in the emerging green steel market.

Bangladesh recorded a strong rebound in foreign direct investment (FDI) in 2025, ending two consecutive years of decline, but the gains were not enough to close the gap with regional players.

The country remained the third-largest recipient of FDI in South Asia after India and Pakistan, according to the World Investment Report (WIR) 2026, released yesterday by the UN Conference on Trade and Development (UNCTAD).

As per the report, FDI inflows into Bangladesh rose 45 percent to $1.78 billion in 2025 from $1.23 billion a year earlier.

Separately, Bangladesh Bank data showed a similar trend, with FDI rising 45.5 percent to $1.79 billion, which it attributed to higher reinvested earnings from existing foreign investors.

Earlier in mid-May, the Bangladesh Investment Development Authority (Bida) said FDI inflows increased 39.36 percent year-on-year to $1.77 billion in 2025.

“A series of measures to improve investment facilitation and bring greater discipline to the approval process contributed to last year’s rebound,” said Nahian Rahman Rochi, executive member (investment) at Bida.

“All three components of FDI -- equity investment, reinvested earnings and intra-company loans -- posted positive growth last year. Although equity investment declined globally, Bangladesh recorded around 8 percent growth in equity inflows, which is encouraging given the country’s political transition,” he said.

Rochi said Bida also maintained regular communication with existing and prospective investors. “That engagement gave them confidence, and we believe it contributed to the recovery in FDI.”

He, however, said the growth remained well below Bangladesh’s investment needs.

Rochi said Bida has an investment pipeline worth about $1.5 billion that could materialise over the next 18-24 months.

GLOBAL FDI RECOVERY UNEVEN

Globally, FDI rose 6 percent to $1.6 trillion following two years of decline, though UNCTAD said the recovery was “fragile and uneven”. Inflows rose 11 percent to $723 billion in developed economies and 2 percent to $901 billion in developing economies.

Developing Asia remained the largest recipient among developing regions, at $644 billion, though trends diverged within it: inflows declined in East Asia, including China, but rose in South-East Asia, South Asia, West Asia and Central Asia.

S ASIA GETS $46b

Total inflows into South Asia climbed to $46.1 billion in 2025 from $34.1 billion a year earlier.

India remained the region’s dominant investment destination, attracting $38.9 billion in 2025, up 44 percent from $27.1 billion in the previous year, supported by strong investments in manufacturing, services and supply-chain diversification.

Pakistan received the second-highest amount in the region, $1.85 billion, though inflows fell from $2.67 billion in 2024; it remained marginally ahead of Bangladesh.

Among smaller South Asian economies, the Maldives attracted $857 million, up from $806 million, largely on tourism projects; Nepal’s inflows fell to $44 million from $57 million; Bhutan received $9 million, unchanged.

China remained one of the world’s largest FDI recipients despite a decline from about $116 billion to $105 billion, continuing to draw higher value-added investment in R&D and pharmaceutical manufacturing.

ASIA SHAPING FUTURE, BUT OUTLOOK CLOUDED

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The WIR report said Asia is increasingly shaping where future industries are being built, even as investment patterns within the region evolve.

The report noted that investment worldwide is increasingly flowing into semiconductors, digital infrastructure, artificial intelligence, advanced manufacturing and energy-transition technologies.

Many Asian economies are entering this period with important advantages, including established manufacturing capacity, supplier networks, large consumer markets, growing industrial ecosystems and deep integration into regional production networks, it added.

“But these advantages are uneven, and not all economies can compete for the same projects,” UNCTAD said, adding that competition for global capital is becoming more intense.

The report said success in attracting investment is becoming harder to take for granted as governments increasingly use industrial policies and incentives to attract projects linked to future growth industries, while investors become more selective about where they commit long-term capital.

Bangladesh's Purchasing Managers’ Index (PMI) for June has recorded a sharp slowdown, falling 9.9 points from May to settle at 52.9, as manufacturing and construction sectors slipped back into contraction while agriculture and services continued to expand at a softer pace, according to a report released on Tuesday.Bangladesh Politics News
The Bangladesh PMI, jointly compiled by the Metropolitan Chamber of Commerce and Industry (MCCI), and Policy Exchange Bangladesh (PEB), is developed with support from the UK government and technical assistance from the Singapore Institute of Purchasing & Materials Management (SIPMM).The index is designed to provide timely and reliable insights into the country's economic health to help businesses, investors and policymakers make informed decisions.Commenting on the findings, M Masrur Reaz, Chairman and CEO of Policy Exchange Bangladesh, said the June reading suggested Bangladesh's economy remained in expansion overall, but with clear sectoral divergence.He said agriculture and services continued to grow, though more slowly, while manufacturing returned to contraction on weaker orders, exports, employment and supplier deliveries.

Construction also contracted amid softer activity and new business, he said, adding that long Eid holidays, the onset of the monsoon and fading pre-Eid demand had weighed on business conditions during the month.

The agriculture sector recorded its tenth consecutive month of expansion in June, although growth moderated from May. New business, business activity, employment and input costs all continued to expand, while the order backlogs index remained in contraction for the second straight month.

The manufacturing sector returned to contraction after two months of expansion, dragged down by weaker new orders, new exports, employment, supplier deliveries and order backlogs. Factory output, input purchases and imports continued to grow, though at a slower pace, while input prices accelerated and the finished goods index swung back into expansion.Economic Policy Reviews

The construction sector also reverted to contraction after posting expansion in May, with new business, construction activity and employment all falling back. Input costs and order backlogs, however, continued to expand at a faster pace within the sector.

The services sector expanded for the 21st consecutive month in June, though growth slowed across new business, business activity, employment and input costs, while the order backlogs index contracted at a faster rate.

Looking ahead, the Future Business Index points to continued expansion in agriculture, construction and services, while manufacturing is expected to return to expansion, reflecting cautious optimism about business conditions in the coming months.

Respondents across major economic sectors described business conditions in June as challenging amid rising production costs and weaker market conditions. Many firms cited higher LPG and fuel prices, rising transportation and operating costs, and increasing labour expenses as key pressures squeezing profit margins.

Several businesses also pointed to financial constraints, disruptions from ongoing road construction activities, and concerns over the recently imposed 15 percent VAT, which they said had raised the cost of doing business. Agricultural respondents flagged weather-related uncertainties affecting production and seasonal demand, while some firms noted that local economic activity remained subdued.

Despite the challenges, respondents expressed hope that improvements in the business environment, stable energy supplies and supportive government policies would help strengthen business confidence and economic activity in the months ahead.Capital Market Insights

Several respondents also recommended maintaining a representative and high-quality respondent panel to further enhance the reliability of the Bangladesh PMI.

The report was signed by Farooq Ahmed, Secretary-General and CEO of MCCI, and M Masrur Reaz, Chairman and CEO of Policy Exchange Bangladesh.

Bangladesh netted a phenomenally higher annual foreign direct investment worth US$1.78 billion in 2025 as the global flow of FDI marked resurgence last year after two barren years.
The global and local FDI rises are quantified in the World Investment Report (WIR) 2026 just released in Geneva on Tuesday morning by the UN Conference on Trade and Development (UNCTAD).

Bangladesh's FDI inflow recorded 44-percent growth in 2025 against $1.23 billion in 2024, according to the UNCTAD report.The amount is the highest in the last five years. As a result, FDI as percentage of gross fixed capital stood at 1.40 per cent in the past year which was 0.90 per cent in 2024.Outstanding stock of FDI reached $19.63 billion at the end of 2025, according to UNCTAD estimate.The report also shows that outward FDI from Bangladesh to the rest of the world increased by 72.60 per cent to $25 million in the last year from $15 million in 2024.The amount of global FDI stood at $1.62 trillion in 2025 which was $1.53 trillion in 2024 and $1.32 trillion in 2023.

"But the recovery remains narrow, fragile and uneven," says the report, prepared and published by the UN agency.

Inflows of FDI to developed economies rose 11 per cent although developing economies recorded only 2,0-percent growth, reaching $901 billion.

"The figures point to a rebound that is not translating evenly into development opportunities," observed the UNCTAD.

"The issue is not only how much capital is moving, but where it is going, what it is building and whether it is expanding productive capacity, creating jobs, strengthening skills and supporting technology transfer."

The world's top 20 host economies attracted more than 80 per cent of global FDI in 2025, according to the WIR 2026. The figure underscores a trend: "investment is becoming more concentrated across countries, sectors and projects".

"The recovery should also be interpreted with caution: headline FDI numbers do not always translate into new factories, infrastructure, jobs or technology transfer," adds the annual flagship report of the UNCTAD under the theme 'International Investment in a Turbulent Era'.

It also shows that strategic sectors are reshaping flows: they accounted for 44 per cent of greenfield project value, up from 16 per cent in 2020.

"Developing impact remains uneven: what matters is where investment goes, what it builds and who benefits," WRI 2026 further adds. "Policy is becoming more selective, as governments steer investment towards strategic sectors and national priorities."

Though developing nations received more than half of the global FDI in the last year, growth was modest and uneven across regions. For instance, developing Asia remained the largest recipient region, attracting FDI worth $644 billion, while FDI in Latin America and the Caribbean rose 14 per cent to $188 billion.

Again, Africa received about $70 billion as FDI, which is one third above its 2010-2024 average.

Inflow of FDI in least-developed countries (LDCs) rise 21 per cent to $43 billion, but the group still accounted for only 2.7 per cent of global FDI, with flows concentrated in a small number of mostly resource-rich economies.

"This concentration is particularly visible in industries linked to technology, energy and industrial policy," says the report.

Strategic sectors such as AI infrastructure, semiconductors, critical minerals and energy-transition technologies and services accounted for 44 per cent of global greenfield project values in 2025, up from 16 per cent in 2020.

"The growth in project values was driven mainly by data centres, followed by oil and gas and semiconductors," the report explains. "Most other sectors registered declines, including renewable energy, infrastructure and manufacturing, showing how narrow the recovery remains."

Bangladesh Bank (BB) has issued comprehensive guidelines for scheduling banks to access its newly formed Tk 200 billion (Tk 20,000 crore) revolving pre-finance scheme, aimed at revitalising closed and capital-starved units in the country’s large industry and service sectors, particularly export-oriented ones.Bangladesh Politics News
The central bank's Banking Regulation and Policy Department-3 (BRPD-3) issued a circular for the managing directors and chief executive officers of all scheduled banks on Tuesday, detailing the operational modalities, reports UNB.According to the circular, the three-year revolving fund titled “Closed Industry and Service Sector Facilitation Pre-finance Scheme” will be sourced from the surplus liquidity of scheduled banks.To participate in the scheme, interested banks must execute a "Participation Agreement" with the BRPD-3. After obtaining approval from their respective boards of directors, banks can apply for the pre-finance facility using a designated format, complete with necessary documentation, before disbursing the loans to end-borrowers.

The central bank stipulated that borrowers who are already availing working capital facilities from other BB re-finance or pre-finance schemes must undergo a thorough review of their requirements before a fresh application is submitted.

To ensure transparency and prevent financial irregularities, Bangladesh Bank has mandated that participating banks must collect specific declarations and reports from applicants alongside standard documentation.

These include a declaration from the borrower confirming that they have never been involved in money laundering, forgery, fund diversion, or loan misuse, a certification verifying the client’s production or service delivery capability, sales and revenue reports from the beneficiary entities, a commitment from banks to conduct quarterly factory inspections and submit inspection reports.

Reporting and Compliance

Participating banks will be required to submit quarterly statements on loan disbursement and recovery to Bangladesh Bank by the 10th of the month following the end of each quarter.

The Bangladesh Securities and Exchange Commission (BSEC) has approved United Commercial Bank PLC (UCB) to raise Tk775.18 crore through a rights share offering, enabling the bank to meet the central bank's minimum paid-up capital requirement for dividend eligibility.

The approval came at the regulator's commission meeting yesterday, according to a BSEC press release.

Under the offer, UCB will issue 77.51 crore rights shares at a face value of Tk10 each, with shareholders entitled to one rights share for every two existing shares. The bank said the proceeds will be used to strengthen its capital base and support business operations.

The rights issue will increase UCB's paid-up capital from Tk1,550.37 crore to Tk2,326 crore, taking it above the Tk2,000 crore minimum threshold recently set by Bangladesh Bank for commercial banks seeking to declare dividends.

For the January-March quarter of 2026, UCB reported consolidated earnings per share (EPS) of Tk0.07, up from a restated Tk0.04 in the same period a year earlier. The bank attributed the improvement to stronger performance by its subsidiaries.

However, consolidated net operating cash flow per share (NOCFPS) fell to negative Tk4.22 from positive Tk6.98 a year earlier. According to the bank, the decline resulted from higher loan disbursements and investments relative to deposit growth, alongside lower net interest income.

As of 31 March 2026, UCB's consolidated net asset value (NAV) per share stood at Tk25.97.

At the same meeting, the BSEC also approved the draft prospectus of the Blue-Wealth First Stable Return Fund, an open-end mutual fund with an initial target size of Tk30 crore.

Its sponsor, Blue-Wealth Assets Limited, has contributed Tk3 crore, while the remaining Tk27 crore will be raised from general investors. The fund's unit price has been fixed at Tk10.

Blue-Wealth Assets Limited will serve as the fund manager, while Sandhani Life Insurance Company and Commercial Bank of Ceylon PLC will act as the trustee and custodian, respectively.

Bangladesh is borrowing US$1.0-billion hard-term loan from the Islamic Development Bank (IsDB) for much-needed upgrading of Eastern Refinery's oil-refining capacity by 3.0 million tonnes a year, officials say.Bangladesh Politics News
The government's Standing Committee on Non-Concessional Loans, headed by Finance and Planning Minister Amir Khosru Mahmud Chowdhury, approved the borrowing of this foreign loan, recently assured by the Islamic Development Bank.

The credit facility marks one of the largest single-project financial packages ever extended by the Jeddah-based IsDB to a member-country.

The critical funding package is explicitly earmarked for the long-delayed Unit-2 expansion project of the state-owned Eastern Refinery Limited (ERL) in Chittagong, a senior Economic Relations Division (ERD) official has said.

The decision signals a tactical pivot in the country's macro-energy strategy. The government is intentionally leaning into market-based, high-cost foreign debt to finance critical infrastructure.

This happens at a time when traditional concessional financing windows from development partners are getting tightened globally.

As the loan features a grant element of less than 25 per cent, it is classified under International Monetary Fund (IMF) guidelines as non-concessional or "hard-term" loan.

Situated in the port city of Chittagong, ERL, a subsidiary of the state-owned Bangladesh Petroleum Corporation (BPC), would have its second unit with a crude-refining capacity of 3.0 million tonnes per year by investing some Tk 354.65 billion or $2.89 billion.

As per the project, the government would provide Tk 212.78 billion as loans from its internal resources while the remaining Tk 141.88 billion will come from the Eastern Refinery's internal resources.

Currently, ERL has its first unit with 1.5-million-tonne capacity for refining crude oil, mostly imported from the now-troubled Gulf region.

According to the official sources, the $1.0-billion credit will come under the IsDB's "Lease Financing" model where interest rate is charged on the Secured Overnight Financing Rate (SOFR) rate plus a 1.60-percent spread.

According to the Federal Reserve Bank of New York, the SOFR rate on a 6-month basis on Tuesday was recorded at 3.66892 per cent.

Total maturity tenure of the credit will be 20 years with a grace period of five years.

Economic Relations Division (ERD) officials say the interest rate, floating on top of the global SOFR benchmark, "exposes the treasury to international market volatility".Economics

"With global benchmarks remaining elevated, the interest burden is expected to test state coffers significantly," says one official.

Furthermore, the IsDB deal incorporates a rigid Shariah-compliant "forward lease" model.

The core objective of the capital injection is the total modernisation and capacity scaling of ERL's plant, in the wake of worldwide fuel woes amid the Middle East turmoil.

Originally built back in 1968 using French technology, ERL has long struggled to meet the nation's rapidly ballooning fuel demands.

Currently, the ancient refinery processes roughly 1.5 million tonnes of crude annually, fulfilling a meagre 20 per cent of local petroleum demand. The remaining 80 per cent must be imported as pre-refined fuel at a massive premium.

The Unit-2 (ERL-2) expansion project will construct an entirely new, highly sophisticated processing wing next to the existing facility.

By tripling the plant's total processing limits to 4.5 million tonnes per year, the expansion will enable Bangladesh to import cheaper raw crude oil and refine it domestically.

This shift will significantly reduce the country's dependence on expensive, pre-refined foreign petroleum.

Additionally, the new plant is architected to yield clean, Euro-5-standard diesel and gasoline, mitigating growing domestic environmental concerns regarding fuel quality.

The total capital expenditure was initially estimated by the Executive Committee of the National Economic Council (ECNEC) at Tk 354.65 billion.

Independent energy experts and ERD officials agree that the commercial survival of this loan hinges entirely on swift, corruption-free project execution.

Because the interest rate floats with the SOFR benchmark, any construction delay beyond the targeted November 2030 completion time will exponentially escalate the state's debt-servicing liabilities.

Conversely, if ERL-2 goes operational on schedule, massive foreign-exchange savings achieved by cutting refined-fuel imports will easily offset the aggressive borrowing terms.

The government will act as the primary procurement agent under the IsDB model, taking full ownership of contract negotiations, risk compliance, and project-management oversight.

With the official go-ahead now granted by the non-concessional committee, the ERD is poised to conclude final signatures with IsDB delegates to pave the way for construction mobilisation in Chittagong.

"Since the loan is endorsed by the government's standing committee on non-concessional loans, we will now go for signing contract with the IsDB in a bid to confirm the disbursement for the procurement of the refinery-upgradation works," says the ERD official.

The government has extended the state guarantee for the Investment Corporation of Bangladesh (ICB), a state-owned investment bank, for a Tk3,000 crore loan from Bangladesh Bank, granting a three-year extension until 2029 with a view to stabilising the country's capital market.

Amid mounting pressure and failure to repay the outstanding loan despite the expiration of the original deadline in May, the ICB applied to the government urging an extension, as it is struggling to repay due to a severe liquidity crunch.

In a letter expressing its concerns, the ICB stated that if it is forced to repay the loan now, it would have to sell shares in the secondary market, which would have a negative impact on the market.

According to an official letter from the Financial Institutions Division (FID) of the Ministry of Finance, the sovereign guarantee has been extended for three years, effective from 13 May, 2026 with the primary objective of stabilising the country's capital market.

However, the relief comes with strict financial strings attached that ICB must ensure full repayment of the principal amount within the extended deadline, while keeping all other original terms of the loan agreement unchanged.

The letter states that the primary objective of extending the state guarantee is to ensure stability in the capital market. To this end, ICB's share trading activities and portfolio restructuring activities during the extended period must be closely monitored by the FID.

Also, with the aim of bringing ICB's administrative and operational expenses down to a rational level, reducing the burden of rising interest costs, and overcoming the erosion of portfolio capital, a specific, time-bound, and implementable "Business Recovery Plan" must be formulated and submitted to the FID, and the progress of the implementation of the said plan must be monitored regularly.

The ICB must submit an updated report on ICB's financial liquidity position, capital market investment activities, and the progress of loan repayment preparations must be sent to the Finance Division and the FID every 3 months during the extended period.

Also, the ICB is directed to finalise an updated repayment Schedule, coordinated with Bangladesh Bank, which must be submitted to the Finance Division.

Currently, the ICB is facing a severe capital shortage with around Tk5,506 crore fund erosion due to volatile capital market.

The corporation has invested around Tk12,500 crore in the capital market, but the current market value of those investments has fallen to about Tk8,000 crore as of December 2025.

As a result, ICB is facing an acute capital shortage. It has failed to pay nearly Tk1,200 crore in accrued interest on loans from state-owned banks.

The ICB, once one of the country's most profitable institutional investors, earning hundreds of crores of taka from stock market investments, is now facing mounting losses.

ICB officials said the current board has overhauled the management of government funds following allegations of irregularities in previous years.

The board has strengthened oversight of the Portfolio Management Committee, responsible for buying and selling shares using ICB funds. Officials said weak monitoring previously allowed some corrupt officials, allegedly influenced by market operators, to purchase highly overpriced shares.

A senior ICB official, speaking on condition of anonymity, said, "The loopholes that previously existed at ICB have now been closed. Oversight of the portfolio committee has increased, and purchases through the block market have been stopped. As a result, the erosion of the portfolio has slowed, although the damage has already been done."

The official said investment decisions are now reviewed daily.

"After decisions to buy or sell shares are taken in the morning, a progress report is prepared and discussed at the end of the trading day. That report is presented to the board every 15 days for review, which has helped reduce losses."

The official said ICB urgently needs further government financial support or low-interest funding.

"The government has already provided funds at an interest rate of 4%. If additional low-interest funds are provided solely to repay existing loans, the institution can be saved. Our annual operating expenses are only around Tk100-120 crore, but interest payments alone amount to nearly Tk1,000 crore. It is simply not possible to sustain ICB under these circumstances."

According to ICB's financial statements, income from capital gains, dividends and subsidiary companies is now lower than its interest expenses. The corporation is also incurring substantial losses because of operating costs and provisions against investments.

After posting a record loss of Tk1,213 crore in the 2024-25 financial year, ICB reported a further loss of Tk588 crore during the first nine months of FY26. Although the final quarter's accounts have yet to be published, the corporation expects to remain in the red for the full year.

Saudi Arabia is considering expanding the capacity of its crude oil pipeline to the western Red Sea coast, five sources close to the matter said, enabling the kingdom and possibly neighbours to transport more oil without crossing the Strait of Hormuz.

The East-West pipeline was built in the early 1980s and has become crucial since the start of the Iran war in February and the resulting halt to shipping through the Strait of Hormuz.

It can transport up to 7 million barrels per day (bpd) of crude to the Red Sea port of Yanbu. About 2 million bpd feed refineries on the west coast and roughly 5 million bpd are for export, the CEO of state-backed oil company Aramco said in May.

The kingdom is in preliminary talks with some of its neighbours about the potential expansion of the pipeline’s capacity by up to 2 million bpd, the sources said.

It was unclear if Aramco’s planned capacity increase would involve upgrades to existing infrastructure or construction of a new pipeline. One of the sources said the increase would include a smaller second pipe for oil products. Kuwait, Bahrain and Qatar all lack routes that can bypass Hormuz while Iraq’s pipeline to Turkey, dogged by disputes and repeated shutdowns, runs well below capacity.

“We are in discussions with our brothers in Saudi Arabia and in the emirates to look at how to expand the pipeline system that they have to accommodate Kuwaiti barrels,” Kuwait Petroleum Corporation CEO Sheikh Nawaf al-Sabah told the Atlantic Council Global Energy Forum last month.

The expansion could be for 1 million to 2 million bpd, two of the sources said, with refined products also under consideration. It would take years, cost billions of dollars and require changes to Saudi crude’s pricing mechanism, another source said.

Iran’s blockade of the strait forced Gulf producers to shut in as much as 12 million bpd, sending prices surging. Flows have resumed partially after a preliminary US-Iran deal last month, but they remain below pre-war levels.

Iraqi output collapsed from 4.3 million bpd to less than 1.5 million bpd in May, Kuwait declared force majeure in March and Bahrain’s Sitra refinery was struck by Iranian missiles several times.

“The recent talks about new pipeline corridors involving Saudi Arabia, Kuwait and Qatar reflect a broader strategic reality. The conflict has focused minds regionally on the perils of relying solely on Hormuz,” said Zaid Belbagi, managing partner at London-based Hardcastle Advisory.

Aramco declined to comment while the Saudi and Bahraini government communications offices, the Iraqi oil ministry and QatarEnergy did not respond immediately to requests for comment. Qatar, which mainly exports LNG, faces greater technical hurdles and is considering several potential alternatives, including via Saudi Arabia, three sources said.

The UAE, the only other Gulf state with meaningful Hormuz-bypass capacity, has completed half of a new West-East pipeline that will double crude capacity to Fujairah when it becomes operational next year. Its existing Abu Dhabi pipeline carries up to 1.8 million bpd. An expansion by Saudi Arabia “suggests that after the war, the next phase of the Saudi-UAE rivalry could be a race to the top on oil production, and therefore a race to the bottom on prices,” one industry source said.

The Indian rupee eked out gains on Tuesday, tracking an uptick in most Asian peers even as dollar demand from merchant payments and maturing non-deliverable forward contracts limited room for the currency to gain.

The rupee traded at 95.28 against the dollar as of 11:25 am IST, up 0.1 percent from its previous close.

The RBI’s daily reference rate, called the daily fix, was last quoted at a premium of around 0.45/0.55 paisa, signalling elevated dollar demand. The fix usually attracts concentrated dollar buying or selling related to maturing contracts.

“Despite the central bank’s interventions and measures to boost flows, (the) rupee is struggling to cling to gains, which points to the scale of underlying USD demand,” a trader at a foreign bank said.

Analysts and traders are keeping a close eye on the scale of inflows mustered by recent policy measures such as removing tax on foreign investment in debt and offering foreign currency deposits with high interest rates. Goldman Sachs anticipates about $60 billion of inflows over the remainder of 2026.

In the near-term though, FX advisory firm Mecklai says that the dollar-rupee pair is trading with a “neutral to bullish” bias and is expected to encounter resistance in the 95.50-95.80 zone, while support is pegged in the 94.0-93.90 band.

Elsewhere, Asian currencies were mostly trading firmer, while regional stocks fell. Indian equities bucked the trend with the Nifty 50 index up 0.4 percent.

Investors are now looking ahead to the release of the minutes of the US Federal Reserve’s June meeting, due Wednesday. Traders are currently pricing in about 30 bps of rate hikes in the rest of 2026.

Closer public-private collaboration is essential to make healthcare affordable for all, the finance minister said yesterday, noting that Bangladesh has one of the highest rates of out-of-pocket healthcare spending in the world.

The country also needs a stronger focus on entrepreneurship to ensure the sustainable transformation of its healthcare sector, Amir Khosru Mahmud Chowdhury said at an event on health entrepreneurship at Amari Dhaka.

According to the Bangladesh National Health Accounts 1997-2020, nearly 69 percent of total health expenditure is paid directly by households out of their own pockets.

The minister said increasing budget allocations alone would not fix the problem, and that the priority was optimal use of existing resources, with joint public-private discussions serving as a roadmap for the future.

Bangladesh already has skilled entrepreneurs, diagnostic centers, private hospitals and a strong pharmaceutical industry, Khosru said.

This year’s budget allocates substantial support for the pharmaceutical sector’s Active Pharmaceutical Ingredients (API) industry, including a dedicated API zone.

The key question, however, the minister said is how to integrate that capacity into the mainstream healthcare system.

Stating that healthcare a fundamental right for all, Khosru said the government is placing greater emphasis on primary and preventive care, with plans to deploy about 100,000 health workers to raise awareness at the grassroots level.

Rather than build additional public healthcare infrastructure, he said, the government has made a policy decision to utilise private sector capacity and expertise instead.

The current budget also offers significant incentives for domestic and foreign entrepreneurs to invest in manufacturing healthcare equipment in Bangladesh, an initiative that has already drawn a strong response, he said.

The finance minister said the people of Bangladesh have the potential to become among the world’s finest entrepreneurs if given the right opportunities and policy framework.

He said the current government’s political philosophy is centered on private sector-led growth, with the country’s leadership viewing the private sector as the driving force of economic development.

He expressed optimism that visionary leadership, supportive policymaking and the hard work of Bangladesh’s entrepreneurs would make a transformative contribution to the healthcare sector and bring quality care to people’s doorsteps.

The event was attended by Zubaida Rahman, Vice President of the Ziaur Rahman Foundation, as the chief guest. Special guests included the finance minister, Health Minister Sardar Md Sakhawat Husain and the PM’s Special Assistant on Health Affairs Dr SM Ziauddin Haider.

German industrial production ticked up more than expected in May, official data showed Tuesday, as Europe’s top economy defied the worst following the virtual closure of the Strait of Hormuz.

Factory production rose 0.9 percent on the month, statistics office Destatis said, beating expectations in a FactSet poll of analysts who had expected a rise of 0.3 percent.

The automotive industry led the way with production volumes up 3.6 percent, Destatis said, while production of industrial machinery also rose 1.3 percent.

“Despite the war in the Middle East and soaring energy prices, industrial production is proving resilient,” ING analyst Carsten Brzeski said.

“Some industries or companies actually seem to have benefited from the war in the Middle East, as Asian competitors were hit harder by the closure of the Strait of Hormuz.”

The Strait of Hormuz was at the centre of tensions during the Middle East war, when Iran blockaded the waterway and a number of commercial vessels came under attack, sending global energy prices sharply higher.

The United States responded with its own naval blockade and later launched retaliatory strikes against Iran after accusing Tehran of targeting commercial shipping.

Maritime traffic resumed after Washington and Tehran signed a memorandum of understanding last month aimed at ending the conflict and reopening the strategic route.

A less volatile comparison by Destatis over the past three months showed production rising just 0.1 percent, and production in May was flat versus the same month last year.

Germany’s economy has barely grown since a burst of pent-up pandemic demand at the end of 2022, hit by high energy prices and increasingly fierce Chinese competition in key export markets.

Overall production volumes in May were eight percent below the monthly average for 2021, according to Destatis data.

The government has approved a $1,004 million loan from the Islamic Development Bank (IsDB) to finance the construction of the second unit of Eastern Refinery Limited (ERL), with officials describing the financing as being on highly non-concessional terms.

The approval for the approximately $1 billion loan was granted yesterday by the Standing Committee on Non-Concessional Loan (SCNCL) at a meeting chaired by Finance Minister Amir Khosru Mahmud Chowdhury at his office in Sher-e-Bangla Nagar.

Officials at the Economic Relations Division (ERD) said the refinery expansion remains a commercially viable and strategically important project for Bangladesh's long-term energy security, despite the relatively expensive financing.
According to documents presented at the meeting, the IsDB financing consists of two packages. Under "Forward Lease 1", the bank will provide $520.59 million, while "Forward Lease 2" will provide $483.10 million. A $0.6 million technical assistance grant will also be provided under the first package.As per an ERD working paper, the loan carries a relatively high financing cost compared with prevailing rates in the international market.

Based on the six-month Term Secured Overnight Financing Rate (SOFR) of 3.84627% as of 5 July 2026, the total mark-up rate is 5.44627%, including a 1.60% spread and risk premium. The loan has a 20-year tenure, including a five-year grace period, with repayments every six months over the remaining 15 years.

The ERD classified both financing packages as "highly non-concessional", with grant elements of minus 3.12% for Forward Lease 1 and minus 3.24% for Forward Lease 2.

Officials said the division had raised several observations before recommending approval. Because repayments will be made every six months, the SOFR benchmark, along with the applicable spread and risk premium, will change over time, meaning both the grant element and the level of concessionality will fluctuate throughout the repayment period.

The ERD also recommended that, before the government on-lends the funds to Bangladesh Petroleum Corporation (BPC) or ERL, the Finance Division should assess BPC's financial capacity to ensure the refinery can service the loan without creating an additional burden on the government.

The division also instructed that all project readiness conditions set by the ERD must be fulfilled before the loan agreement is signed. Repayments are expected to fall on 30 June and 31 December each year.

According to the ERD working paper, Eastern Refinery currently has an annual crude oil refining capacity of 1.5 million tonnes. The second unit will add another 3 million tonnes, tripling total annual refining capacity to 4.5 million tonnes and significantly reducing Bangladesh's dependence on imported refined petroleum products.

Officials said the project preparation mission was completed between 8 and 11 February 2026, followed by the appraisal mission from 8 to 12 March.

Negotiations with IsDB representatives were held on 28 April, an inter-ministerial meeting chaired by the ERD secretary took place on 14 May, and the negotiation minutes were signed on 20 May.

After the IsDB Dhaka Regional Hub sent draft loan agreements on 3 June, the proposal was placed before the 45th SCNCL meeting for approval.

ERD officials said the loan agreement could be signed in mid-August during a visit by IsDB President Dr Muhammad Sulaiman Al Jasser.

An official present at the meeting said the finance minister urged authorities to complete the project within the stipulated timeframe and expressed frustration that it had not been implemented earlier.

According to the official, the minister said an earlier expansion would have better positioned Bangladesh to cope with disruptions to global fuel supplies caused by the Iran-Israel conflict and tensions involving the United States.

Project cost revised

The modernisation and expansion of Eastern Refinery in Chattogram is now estimated to cost Tk31,000.57 crore. Of the total, the government will provide Tk18,566.74 crore, while BPC will contribute Tk12,433.83 crore from its own funds. The project is scheduled to run from January 2025 to June 2030.

The Executive Committee of the National Economic Council (Ecnec) approved the project in principle on 23 December last year at an estimated cost of Tk35,465 crore, subject to conditions. Following further scrutiny, the project cost was reduced by Tk4,465 crore.

According to the Energy Division, Eastern Refinery currently meets only around 20% of Bangladesh's petroleum demand, with the remainder met through imports at significant foreign exchange cost.

BPC officials said the new refinery will produce Euro-5 standard gasoline and diesel while upgrading diesel, motor spirit and octane from the existing refinery to Euro-5 specifications.

Officials added that BPC has already completed the "Installation of Single Point Mooring (SPM) with Double Pipeline" project, enabling the transport of up to 4.5 million tonnes of crude oil annually.

Once operational, the expanded refinery is expected to produce about 400,000 tonnes of furnace oil, 60,000 tonnes of LPG, 600,000 tonnes of Euro-5 gasoline, 1.1 million tonnes of Euro-5 diesel, 200,000 tonnes of lube base oil and 500,000 tonnes of jet fuel each year, reducing import dependence and government subsidy requirements.

Project delayed for years

Eastern Refinery, Bangladesh's only oil refinery, was established in Chattogram in 1968 by France's Technip.

Plans for a second refining unit were first announced in 2010, and the government approved a Tk13,000 crore project in 2013. However, repeated bureaucratic delays, implementation challenges and financing constraints prevented construction from beginning.

BPC revived the project in 2022 using its own financing, by which time the estimated cost had risen to Tk23,000 crore. In early 2024, S Alam Group proposed constructing ERL-2 at a cost of Tk25,000 crore, and the Energy Division approved the proposal on 9 July.

The project was later suspended following the student-led mass uprising in August that led to the fall of the Sheikh Hasina government.

After taking office, the interim government revived the project and initially sought foreign financing. At that stage, the estimated cost stood at Tk36,410 crore, including Tk25,500.77 crore in external financing and Tk10,909.32 crore from BPC.

When external funding did not materialise, the government decided to finance the project through public funds alongside BPC's contribution. The revised estimate initially rose to Tk42,973.70 crore before the Planning Commission reduced the cost following further scrutiny.

Eastern Refinery Limited was approved in 1960 and began commercial production in 1968. At the time, 35% of the company was owned by the former East Pakistan Industrial Development Corporation, another 35% by private businessmen led by former West Pakistan commerce secretary and ICS officer Abbas Khaleeli, while the remaining 30% was held by the UK's Burmah Oil Company.

The US trade deficit widened sharply in May to its largest in over a year as imports rose, government data showed Tuesday, with analysts noting that businesses could be gearing up for further tariffs.

The shift came as the world’s biggest economy grappled with fallout from war in the Middle East, while imports of tech goods linked to the country’s data center buildout remained strong.

The overall trade gap surged from the month prior by 42.2 percent to $77.6 billion, according to data from the Commerce Department. This was slightly less than a consensus forecast by Briefing.com.

In May, imports climbed by 3.3 percent to $395.3 billion, while exports dipped by 3.2 percent to $317.7 billion.

In May, imports climbed by 3.3 percent to $395.3 billion, while exports dipped by 3.2 percent to $317.7 billion
While imports of capital goods like computer accessories and semiconductors showed just a modest increase, “They are up 42 percent year-over year, thanks to ongoing demand for AI hardware,” said economist Grace Zwemmer of Oxford Economics.

She added that the latest imports uptick was broad-based and led by consumer goods, with “about half the strength attributed to pharmaceutical preparations.”

“This could be a sign that businesses are beginning to frontload pharmaceutical imports ahead of the 100 percent tariffs that are set to go into effect on July 31, although there are many exemptions embedded in the policy,” Zwemmer noted.

US trade data has been fluctuating widely over the past year as President Donald Trump imposed sweeping tariffs on various trading partners, sending businesses scrambling to avoid them.

“Imports convey solid US domestic demand,” said Nationwide financial market economist Oren Klachkin in a note.

But he added that companies’ attempts to get ahead of planned tariff hikes “likely lent a hand.”

Meanwhile, US exports of crude oil and petroleum products advanced after US-Israeli strikes on Iran from late February, which triggered Tehran’s retaliation in virtually blocking the Strait of Hormuz.

The strait is a key waterway for energy transit, sending prices soaring at the time.

While crude exports were still up in May, the partial reopening of the strait after the United States and Iran signed a memorandum of understanding helped push petroleum exports towards pre-war levels, Zwemmer said.

For now, the temporary deal saw a pause in hostilities while officials seek a longer term solution, and energy costs have cooled.

The government is planning to merge four investment promotion agencies into a single authority under a draft law aimed at simplifying investor services, reducing bureaucratic hurdles and improving coordination among state institutions.

The proposed Integrated Investment Development Authority Act, 2026 seeks to establish the Unified Investment Development Authority (UniDA).
The agency would bring the Bangladesh Investment Development Authority (Bida), Bangladesh Economic Zones Authority (Beza), Bangladesh Hi-Tech Park Authority (BHTPA) and the Public-Private Partnership Authority (PPPA) under one umbrella.The draft law, prepared by Bida, aims to boost domestic and foreign investment, support industrialisation, improve service delivery and ensure more effective use of state-owned industrial and commercial assets.

UniDA would be a statutory body with administrative and financial powers, headquartered in Dhaka, with the authority to open branch offices at home and abroad.

Ashik Chowdhury, executive chairman of Bida, said the proposal was designed to create a single point of contact for investors who now have to approach multiple agencies depending on the nature and location of their projects.

“Investors have repeatedly told us that they want to deal with a single entity instead of navigating multiple organisations for different approvals and services,” he said. “The objective is to reduce hassle for investors and make the entire process more coordinated.”

The merger would not change the services currently offered by the four agencies, Ashik said. “The difference is that the services will be coordinated through one institutional framework.”

Under the draft law, UniDA would be governed by a board chaired by the prime minister or a nominee holding ministerial rank, including key economic ministers or advisers, the Bangladesh Bank governor, heads of the constituent agencies and three private-sector representatives.

An executive council headed by an executive chairman would oversee day-to-day operations. The authority would oversee investment promotion, economic zones, hi-tech parks and public-private partnership projects.

It would formulate investment policies, approve projects, coordinate infrastructure support, monitor approved projects and help remove administrative and legal bottlenecks delaying investment.

If the law is enacted, all private industrial projects not governed by specialised authorities would require registration or approval from UniDA, as would foreign companies seeking to establish branch, liaison or representative offices in Bangladesh.

Once an investment is approved, UniDA would set binding timelines for key services, including land allocation, utility connections, customs clearance and environmental approvals.

The law would also empower the government to declare industrial areas, economic zones and hi-tech parks through gazette notifications, acquire land where necessary under the Acquisition and Requisition of Immovable Property Act, 2017, and transfer unused government-owned industrial and commercial assets for investment projects.

The proposal, however, has drawn concern from some public-private partnership specialists.

Tapas Chandra Bose, a deputy director and researcher on PPPs, said Bangladesh’s low tax-to-GDP ratio and declining access to concessional foreign financing have made PPPs increasingly important for infrastructure development.

He said the PPP Authority’s institutional independence had helped develop a project pipeline worth more than $41 billion, and warned that folding it into a broader investment authority could undermine investor confidence and weaken private-sector participation in infrastructure projects.

He called for wider consultation before the legislation is finalised.

M Masrur Reaz, chairman and CEO of Policy Exchange Bangladesh, questioned whether merging only a few agencies would substantially improve the investment climate, saying the reform overlooks deeper institutional issues.

He said Bangladesh has created multiple agencies with overlapping mandates, with investment-related regulatory services delivered by more than 50 organisations -- yet the proposed merger covers only four bodies, which have fundamentally different functions.
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He explained that Beza and BHTPA manage industrial estates, Bida is the country’s main investment promotion agency, and PPPA structures public-private partnership projects.

The priority, he said, should be cutting unnecessary licences, registrations and approvals, rather than relying on institutional mergers alone.

The draft law is in its final stage after stakeholder consultations and is expected to be sent to the Cabinet Division by the end of this month, said Nahian Rahman Rochi, executive member (investment) at Bida.

Rochi said the initiative comes as Bangladesh seeks to attract more foreign investment after several years of relatively weak FDI inflows and amid intensifying competition from regional peers.

“The objective is to create a single, integrated platform for investors without reducing the scope of services currently provided by the existing agencies,” he said.