Ensuring proper valuation of imports at ports, mainly at premier seaport Chattogram, could significantly boost government revenues and help achieve an ambitious Tk 6.0-trillion revenue target for this fiscal year.

Newly appointed National Board of Revenue (NBR) Chairman Ahsan Habib has made such optimistic remark after having spotted this long-suspected revenue-leaking hole..

He said customs, VAT and income-tax wings of the revenue board must work in close coordination as a single team to minimise tax evasion and improve revenue collection.

"If accurate valuation of containers arriving at Chattogram Port can be ensured, it will bring a major improvement in revenue collection," he said while addressing officials at the NBR headquarters on Sunday.

The NBR chief urged officials to treat the institution's goals as their own and work with sincerity and commitment.

He mentioned a roadmap already prepared to mobilise Tk 6.0 trillion in revenue during FY2026-27. The target could be achieved through teamwork, reducing revenue evasion and improving administrative efficiency, he asserts. .

Mr Habib also stressed the need to expedite bond-related work, strengthen VAT audits and dispose of pending tax cases in the High Court to unlock additional revenues.

He asked officials not to keep files pending unnecessarily and to ensure faster case disposal, saying that efficient processing of cases would directly contribute to higher revenue receipts.

The NBR chairman has also advised officials to devote at least five hours of focused work during office hours to improve overall productivity and service delivery.

OPEC+ is set to agree on Sunday another increase ‌in output targets from August, sources with knowledge of the matter said, adding to global supply amid falling oil prices due to a gradual reopening of the Strait of Hormuz for oil exports.

The oil-producing group has agreed in principle to increase quotas by 188,000 barrels per day ​from August, on top of similar increases for June and July, two sources with knowledge of OPEC+ thinking ​said ahead of the group's online meeting later on Sunday.

Seven core members of OPEC+, which ⁠groups OPEC and allied producers including Russia, have increased their output quotas from April through July by almost 800,000 barrels ​per day.

PRODUCTION BEGINS TO RECOVER

Yet the increase has remained largely on paper because of the US-Israeli war on Iran, which closed the ​Strait of Hormuz for passage of tankers from some of the most important OPEC+ members including Saudi Arabia, Kuwait and Iraq.

OPEC+ output fell to 33.13 million bpd in May, according to OPEC data, from 42.77 million bpd in February. It began to recover in June thanks to ​US efforts to help the UAE and other OPEC+ nations to export more oil, but is still below pre-war levels.

Despite persisting ​supply disruptions, oil prices have returned to pre-war levels, pressured by lower Chinese imports, higher exports from non-Middle East producers, and a record ‌global strategic ⁠stock release coordinated by the International Energy Agency.

The memorandum of understanding to end the war has also helped convince traders that supply would ultimately return to normal levels.

IRAQ PRESSING FOR HIGHER QUOTAS

Brent crude prices traded near $72 per barrel on Friday, down from recent peaks of more than $120 per barrel, and back to levels traded just before the US and Israel attacked Iran ​on February 28.

Besides agreeing production ​targets, OPEC+ is also facing ⁠other challenges after the United Arab Emirates left the group and Iraq signaled it wants higher quotas.

The seven producers — Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman — are boosting output ​as part of the phased rollback of a 1.65 million bpd supply cut agreed in ​2023, when the ⁠group still included the UAE.

The UAE quit the alliance in late April because it wanted to align its capacity more closely with its production, free of production restraints imposed by the group.

From August, the seven have about 379,000 bpd of the original cut ⁠to return ​to the market, taking into account the UAE exit from 1 May, ​according to Reuters calculations.

That would mean that the group would unwind the remainder of the cut by the end of September if they continue increases ​at the same pace.

Beximco Pharmaceuticals PLC reported a 13.1 percent year-on-year growth in its revenue in the first nine months of the 2025-26 financial year, outpacing its peers, according to an earnings update released by BRAC EPL Stock Brokerage yesterday.

The company recorded Tk 4,142 crore in net revenue during the July-March period of the 2025-26 financial year, up from Tk 3,662 crore a year earlier.

BRAC EPL Stock Brokerage Ltd said Square Pharma recorded a 12.5 percent year-on-year growth in revenue, while Renata posted more than 6.5 percent year-on-year growth in sales during the period.

"Domestic sales remained the primary growth driver, expanding 14.4 percent year-on-year. Export revenue grew a modest 1.2 percent in this financial year from a year ago," said the firm in the update.

Beximco Pharma was able to contain its cost of goods sold, which increased by 6.5 percent year-on-year.

BRAC EPL Stock Brokerage said this provided significant operating leverage to the company.

Beximco Pharma published its financials after the Bangladesh Securities and Exchange Commission (BSEC) allowed the company to hold a special board meeting to approve and publish its outstanding financial reports.

These included the third-quarter financial statements for the 2024-25 financial year, the audited annual report, and the first-, second- and third-quarter reports for the 2025-26 financial year.

The move cleared the company's reporting backlog of 15 months, allowing the London Stock Exchange to lift the suspension and resume trading of the global depositary receipts from June 26.

The pharmaceuticals maker had been unable to convene board meetings to approve and publish its financial statements due to ongoing legal proceedings before the High Court.

Beximco Pharma recorded a 32.7 percent year-on-year growth in profit after tax to Tk 694 crore in the first nine months of the 2025-26 financial year.

BRAC EPL said the earnings were driven by strong revenue momentum, disciplined direct cost management, and continued deleveraging.

BRAC EPL said Beximco Pharma delivered a solid 10.7 percent year-on-year revenue growth in FY25 despite operating under prolonged legal uncertainties throughout the year.

Trading activity on the Dhaka Stock Exchange (DSE) rebounded strongly in fiscal year 2025-26, with total turnover rising 55% year-on-year and the benchmark index gaining 20%, reflecting improved investor participation and a modest recovery in the capital market.

According to DSE data, total turnover reached Tk1.72 lakh crore in FY26, up from Tk1.11 lakh crore in the previous fiscal year. Average daily turnover also increased to Tk722 crore from Tk472 crore.

The highest single-day turnover during the year stood at Tk1,529 crore, while the lowest was Tk267 crore.

Market capitalisation – the combined value of all listed companies – increased by 5.5% to Tk6.98 lakh crore by the end of FY26.

Trading in the block market also grew, with transactions rising 12.63% year-on-year to Tk7,129 crore, according to the DSE.

Trading in government treasury securities remained negligible, with transactions totalling only Tk160 during the fiscal year.

The market's benchmark index, DSEX, climbed nearly 20% to close at 5,762 points. The blue-chip DS30 index rose 19.96% to 2,178 points, while the Shariah-based DSES index gained 10.12% to end the year at 1,168 points.

Hit by the biggest energy supply shock in decades during the Middle East war, import-dependent India is expanding domestic crude exploration, its oil minister says.

India, the world’s third-largest importer of oil and the second-largest buyer of liquefied petroleum gas, faced major disruptions due to restrictions on the Strait of Hormuz during the conflict between the United States and Iran.

With a temporary US-Iran deal in place to pause hostilities, oil and gas shipments are flowing through the Gulf waterway again, and restrictions and price hikes in India are being rolled back.

But Minister of Petroleum and Natural Gas Hardeep Singh Puri said the energy crunch provided fresh impetus for India’s expansion of domestic supplies.

“We are currently in the process... to bid out about 250,000 square kilometres (96,500 square miles) of unexplored area,” Puri told AFP.

India is a modest producer in global terms.

Domestic crude production in 2025–2026 was 25.98 million metric tonnes, according to the oil ministry.

That meets just 10 percent of India’s crude needs, equivalent to roughly 522,000 barrels per day (bpd) -- a figure well below its production peak of just more than 900,000 bpd in 2011.

India survived the energy crunch by expanding its crude suppliers from 27 to 41 countries, including Iran, Venezuela, greater purchases from Russia and several African nations.

New Delhi has previously been criticised by both the United States and Europe for its purchase of Russian oil, with critics arguing that it bankrolled Moscow’s war against Kyiv.

But Puri said India had a “pragmatic approach” that put its energy needs above “ideological considerations”.

The country’s domestic crude production is concentrated in the west -- in its Mumbai offshore fields, Rajasthan and Gujarat -- as well as the northeastern state of Assam.

But Puri has hailed what he calls an “ocean of energy opportunities” off India’s Andaman and Nicobar archipelago, an 800-kilometre-long (500-mile) chain of environmentally sensitive islands in the seas bordering Thailand and Indonesia.

The vast Andaman Basin is geologically similar to hydrocarbon-bearing basins in Southeast Asia.

Puri posted a video on social media in June of a gas flare at an exploratory well drilled in the Andaman Sea by state-owned Oil India.

“Large number of deepwater and ultra-deepwater exploration wells are planned in our offshore basins to fully exploit our hydrocarbon reserves,” Puri said when he released the video.

New Delhi is working with “deepwater exploration experts” including Petrobras, TotalEnergies, BP, Shell and ExxonMobil, he said.

In the same Andaman Sea, India is readying a $9 billion Great Nicobar Island Project to build a megaport, airport and city, creating a strategic base on what is, for now, a far-flung island covered in pristine forests and home to one of Earth’s most isolated peoples.

The push pre-dates the Middle East war.

Hindu-nationalist Prime Minister Narendra Modi launched the “Samudra Manthan” mission during a speech marking Independence Day in August 2025.

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The name refers to a central event in Hindu mythology meaning the “churning of the ocean”.

“We want to work in a mission mode towards finding oil reserves, gas reserves under the sea and hence India is going to start the National Deep Water Exploration Mission,” Modi said at the time.

But India’s bid to reduce dependence faces challenges.

Domestic demand in the world’s most populous nation of 1.4 billion people is growing rapidly -- even as the government vows to achieve carbon neutrality by 2070.

India is also ramping up investments in renewables, nuclear energy and blending petrol with ethanol.

“India’s energy consumption today is growing at three times the pace compared to rest of the world,” Puri said.

“It has jumped from five million barrels per day in 2021 to about 5.6 million barrels today, and would soon touch six million barrels per day, on the back of the robust economic and per capita income growth.”

Puri said he was “exceptionally bullish” for the future.

“I am happy with the knowledge that our E+P (exploration & production) is going up and, believe me, it’s going to rise very fast,” Puri said.

He noted it was “a very capital intensive and time-consuming” process, but said he had high hopes.

“We are putting fiscal resources into oil and gas exploration in a very big way -- with a $10 billion programme,” he added.

“With it, we are going into one million kilometres of unexplored area.”

Acting National Board of Revenue (NBR) Chairman Ahsan Habib has urged field-level officials to work in unity to achieve the FY2026-27 revenue target by facilitating trade, curbing tax evasion and ensuring taxpayers are not harassed.

Addressing a virtual meeting with field-level officials, Ahsan Habib, who is also acting secretary of the Internal Resources Division (IRD), stressed the need to leave past differences behind and work collectively to strengthen revenue collection.

"We have been given a revenue target of Tk6 lakh crore. If we put our differences aside, work as a team and minimise tax evasion, the target is achievable," a senior official attending the meeting quoted Ahsan Habib as saying.

The acting chairman instructed officials to prepare short- and medium-term roadmaps to achieve the FY27 revenue target, the official told The Business Standard, requesting anonymity.

Ahsan also directed officials to prioritise trade facilitation alongside VAT audits and the disposal of cases pending before the High Court. Officials were asked not to allow files to remain pending and to expedite case disposal, saying quicker resolution would help unlock additional revenue.

He also advised officials to devote at least five hours of focused work during office hours to improve efficiency.

"As the NBR chairman has been appointed from among the organisation's own officials for the first time, we must uphold our dignity and reputation," he told the meeting.

"The newly appointed chairman has instructed us to prioritise trade facilitation so that we can achieve the revised revenue target," another official who attended the meeting said.

According to officials, the aftermath of protests within the NBR in mid-2025 has weakened morale among field-level officers. Many officials faced disciplinary measures, including dismissal, demotion, salary reductions and punitive transfers, while several officers known for their integrity and competence were sidelined.

Officials also alleged that officers involved in enforcement drives against tax evasion have come under attack without receiving adequate institutional support from the NBR.

They said the resulting lack of confidence among field-level officials is now affecting revenue collection.

The Dhaka Stock Exchange's (DSE) mobile trading app recorded a sharp decline in registered users in FY2025-26 despite a surge in trading value, highlighting a shift in how investors access Bangladesh's capital market.

DSE data show investors traded shares worth Tk28,794 crore through the app over 239 trading days during the fiscal year, up 78.93% from Tk16,092 crore a year earlier. The growth outpaced the broader market, raising the app's share of total DSE turnover to 16.67% from 14.49% in FY2024-25. In effect, nearly Tk17 of every Tk100 traded on the exchange was executed through the mobile platform.

However, registered users fell 37% to 16,313 from 26,067, while submitted orders dropped to 80.4 lakh from 89.9 lakh and executed orders declined to 78.7 lakh from 83.2 lakh.

The figures suggest fewer investors are using the DSE app, but those remaining are trading significantly larger volumes.

According to DSE officials and market participants, the main reason is the rapid adoption of proprietary Order Management System (OMS) platforms by brokerage houses. Investors are increasingly abandoning the DSE's centralised app in favour of dedicated applications offered by their brokers.

DSE Director Md Sajedul Islam told The Business Standard that more than 50 brokerage firms have launched their own OMS platforms.

"Once a brokerage house introduces its own trading application, its clients naturally migrate from the DSE mobile app. As more brokerage firms adopt proprietary OMS platforms, the number of users on the DSE app continues to decline," he said.

Market participants said leading brokerages now offer faster trade execution, better interfaces, real-time market alerts, portfolio tracking and other advanced features, making their apps more attractive than the DSE platform.

They added that concerns over the DSE app's service quality have also accelerated the migration, leaving it largely used by smaller brokerage firms without in-house OMS platforms.

Brokerage executives said weak market conditions also reduced retail participation.

Saiful Islam, president of the DSE Brokers Association of Bangladesh (DBA), said last year's sluggish market discouraged many retail investors, reducing active beneficiary owner (BO) accounts.

"Young investors are the primary users of mobile trading applications. As market turnover is now recovering, we expect both mobile trading activity and the number of users to increase if the market maintains its positive momentum," he said.

Market experts said the shrinking user base is not necessarily negative if investors are moving to more advanced brokerage platforms, as it reflects growing digital competition. However, if it stems from declining retail participation, it may indicate a deeper structural weakness.

They said the DSE must upgrade its mobile platform with better user experience, faster execution, modern trading tools and stronger integration with brokerage systems, while broadening retail participation so that mobile trading growth is driven by more investors rather than a smaller group of high-value traders.

Private sector credit growth edged up to 4.98% in May from 4.75% in April, but weak loan demand continues to push banks towards government securities as a key source of earnings.

With businesses borrowing less, banks have increasingly relied on investment income from treasury bills, bonds and other government securities rather than traditional interest income. The trend marks a sharp reversal from 2021, when interest income accounted for the bulk of banks' earnings.

Bankers and analysts attribute the shift to sluggish private investment, rising non-performing loans (NPLs) and weak loan recovery from several large business groups.

They say political and economic uncertainty has also discouraged fresh investment, prompting banks to channel excess liquidity into government securities, which offer attractive yields and carry virtually no credit risk.

Requesting anonymity, a treasury head at a commercial bank told The Business Standard that income from treasury bills and bonds is recorded as investment income.

State-owned Sonali Bank's net interest income fell by more than Tk1,100 crore in 2025 to Tk337.23 crore from Tk1,490 crore a year earlier. In contrast, its investment income rose to Tk9,799 crore from Tk6,414 crore.

Eastern Bank's annual report showed net interest income declined 7% in 2025, while non-interest income increased 32%.

BRAC Bank reported a 13% fall in net interest income in 2025 after a 24% decline in 2024. Meanwhile, its investment income jumped 78% in 2025 following a 181% surge the previous year.

The contrast is stark with 2021, when the country's 52 major banks generated a combined Tk40,793 crore in income, with interest income contributing 47% of the total.

A deputy managing director of a private bank said many businesses scaled back or shut operations following the fall of the Awami League government, sharply reducing demand for bank credit.

Several factories owned by large business groups, including Nassa Group, Beximco Group and Gazi Group, have closed, while many others are operating at only 30-40% of capacity, he said. "When factories were operating normally, they imported capital machinery. Now even those that remain open have cut production by 60-70%."

A senior commercial banker said sustainable banking growth ultimately depends on expanding credit rather than investment in government securities. While treasury bills and bonds currently provide attractive returns, lower yields in future could reduce banks' investment income.

Stronger private-sector borrowing, he said, remains essential for both banks and the broader economy.

The government has decided to continue export incentives and cash assistance for 43 sectors in fiscal year (FY) 2026-27, despite having its previous plan to phase out such subsidies ahead of Bangladesh's LDC graduation.

The Foreign Exchange Policy Department (FEPD) of Bangladesh Bank (BB) in a circular on Sunday said the revised incentive structure will remain applicable for export shipments between July 1, 2026 and June 30, 2027.

The export support was available for 43 sectors in the entire previous fiscal year from July 1, 2025 to June 30, 2026.

The government maintained the incentive support for both traditional and non-traditional export sectors, aiming to help sustain their competitiveness in global markets.

However, some changes have been brought in the export support for footwear and bags that are made from a blend of synthetic and fabric materials.

Under the change, exporters of footwear and bags made from synthetic-fabric blends, which do not avail customs bond or duty drawback facilities, will receive the full cash incentive, with the rate keeping unchanged at 8.00 per cent.

In contrast, under the revised second category, exporters using bond or duty drawback facilities will see a drastic cut in their support to 2.00 per cent from the previous level of 8.0 per cent.

Under the highest incentive bracket, exporters of diversified jute goods with at least 50 per cent local value addition, leather products, agricultural and agro-processed items, potatoes, light engineering products, 'halal' processed meat and accumulator batteries will receive 10 per cent cash assistance. Insights

In the textile sector, exporters will get 1.5 per cent alternative cash support against customs bond and duty drawback facilities, while shipments to Eurozone countries will qualify for an additional 0.5 per cent special incentive.

Small and medium enterprises (SMEs) in the readymade garment sector, including knitwear, woven garments and sweaters, will continue to enjoy an additional 3.0 per cent cash support.

For the jute sector, incentives have been fixed at 5.0 per cent for hessian, sacking and carpet backing cloth (CBC), while jute yarn and twine exports will receive 3.0 per cent support.

Under the technology segment, software, hardware and information technology-enabled services (ITES) exports will get 6.0 per cent incentives, while freelance IT professionals will receive 2.5 per cent cash support.

The central bank also retained 6.0 per cent incentives for a number of emerging manufacturing sectors, including furniture, plastic products, paper and paper goods, pharmaceuticals, medical and surgical equipment, motorcycles, ceramic items and bicycles and their parts.

However, the BB has instructed banks concerned to ensure strict compliance and verification before disbursing the incentives.

The National Board of Revenue (NBR) on Sunday warned taxpayers against fraudsters posing as tax officials and demanding money on the pretext of exempting tax files from audits.

In a press statement, the revenue authority said it had recently noticed that a group of scammers has been contacting taxpayers from different mobile phone numbers, falsely claiming that their tax files have been selected for audit.

The fraudsters reportedly offer exclusion of the files from audit or threaten taxpayers with legal complications unless they pay money, the NBR said.

The revenue board clarified that its officials never communicate with taxpayers regarding tax audits through personal mobile phone numbers or any unauthorised channels.

If a tax file is selected for audit, the taxpayer is informed only through an official written notice in accordance with the law.

The NBR also reminded taxpayers that all tax payments, fees and other government dues must be deposited directly into the state treasury through authorised government payment channels.

No tax official is authorised to receive money personally or through mobile financial services such as bKash, Rocket or Nagad, or through any personal bank account.

Taxpayers have been advised to verify the authenticity of any suspicious phone call, SMS or email by immediately contacting the office of the Deputy Commissioner of Taxes in their respective tax zones.

The revenue authority further urged taxpayers to report any individual impersonating an NBR official and demanding money to the nearest law enforcement agency and to preserve the caller's phone number as evidence.

Reaffirming its commitment to providing transparent and harassment-free taxpayer services, the NBR requested all taxpayers to remain vigilant and refrain from making any financial transactions with such fraudsters under any circumstances.

The government has retained export cash incentive rates for 43 sectors in the 2026-27 fiscal year to encourage the country's export trade, according to a Bangladesh Bank circular issued today (5 July).

The Foreign Exchange Policy Department of the central bank said the incentive rates, unchanged from the previous fiscal year, will apply to goods shipped between 1 July 2026 and 30 June 2027.

Under the revised guidelines, alternative cash assistance for export-oriented domestic textiles has been maintained at 1.5%, while an additional 0.5% special incentive for textile exports to the eurozone will continue.

Small and medium-sized enterprises (SMEs) in the ready-made garment (RMG) sector will continue to receive an additional 3% incentive, while exporters expanding into new products or new markets in the textile sector will be eligible for 2% support. A special cash incentive of 0.3% for the RMG sector has also been retained.

The government has also maintained strong support for agriculture and jute exports. Agricultural and processed agricultural products, as well as potato exports, will continue to receive a 10% incentive. Diversified jute products and leather goods will each receive 10%, while handicraft exports will remain eligible for 6% cash assistance.

Among emerging sectors, software and IT-enabled services (ITES) exports will continue to receive a 6% incentive, while freelancers will be eligible for 2.5% support. Pharmaceutical exports will receive 6%, while active pharmaceutical ingredients (API) exports will qualify for 5% cash assistance.

The incentive rates for ship exports and furniture exports have also been kept unchanged at 6% and 8%, respectively.

Bangladesh Bank said applications for export incentives must be audited by audit firms approved by the central bank. All other conditions and guidelines stipulated in previous circulars regarding the disbursement of export incentives will remain in force.

The number of beneficiary owner (BO) accounts -- the depository accounts investors must hold to trade shares in the stock market -- has nearly halved over the past decade, as a dry primary market and an unattractive secondary market pushed investors away.

BO accounts stood at 16.75 lakh at the end of the recently concluded fiscal year 2025-26, down from 31.53 lakh on July 1, 2016, according to Central Depository Bangladesh Ltd (CDBL) data. Such account holders now make up around 0.98 percent of Bangladesh’s population, compared with over 9 percent in India.

“Naturally, investors will remain in the market only when they are assured of earning a reasonable return. We have failed collectively to ensure that, so investors left the market,” said Saiful Islam, president of the DSE Brokers Association (DBA).

Investors who entered the market over the past 10 years now face average losses of nearly 50 percent, he said, as prices of many stocks have fallen by more than half over the decade and many companies have failed to pay dividends.

Islam added that investor protections have been inadequate and corporate governance has deteriorated to such an extent that many investors have suffered losses through certain brokerage houses and asset management companies.

Since 2020, five brokerage houses -- Salta Capital, Moshihor Securities, Banco Securities, Crest Securities and Tamha Securities -- were involved in the embezzlement of around Tk 370 crore combined.

Several banks and non-bank financial institutions have also come close to collapse, compounding investor losses, the DBA president said.

As a result, new investors are reluctant to enter the market while many existing ones have gradually exited, he added.

Furthermore, he noted that many BO account holders keep accounts open solely to apply for initial public offerings (IPOs), but no IPOs have been launched in the past two years, and earlier offerings were generally of poor quality.

Even after BO account maintenance fees were reduced, new account openings remain weak due to the absence of IPOs from fundamentally strong companies, Islam added.

No companies raised funds through IPOs in the last two fiscal years, according to the Dhaka Stock Exchange (DSE). Nine companies raised Tk 841 crore in FY24, and six companies raised Tk 641 crore in FY23. In FY22, eight companies raised Tk 674 crore, while FY21 saw a record 16 companies raise Tk 1,684 crore.

Under these circumstances, stock brokers want to bring 50 lakh investors into the capital market during the tenure of the current government, the DBA President said.

This, however, can only be achieved by bringing quality IPOs to the market, ensuring attractive returns for investors, strengthening corporate governance, and establishing a healthy and well-functioning capital market, he noted.

“We have already discussed these issues with the new commission. Since the reasons behind the market’s poor performance are well known to everyone, and the commission has assured us that these problems will be addressed, I am hopeful that our vision will eventually become a reality,” he said.

Speaking at a DBA event last week, Masud Khan, chairman of Bangladesh Securities and Exchange Commission (BSEC), said the regulator realises the difficulties companies face in listing, and is now trying to ease the process.

“We are going to simplify these rules significantly through amendments,” he said.

As many as 44 closed, loss-making or partly operational state-owned enterprises are ready to welcome private investors as the government seeks to revive idle industrial assets and attract fresh investment.

“We are inviting investors to partner in reviving state-owned enterprises through private sector investment,” Ashik Chowdhury, executive chairman of the Bangladesh Investment Development Authority (Bida), announced yesterday as the authority unveiled details of the factories.

The sites cover about 10,000 acres, and most already have gas, electricity and other essential infrastructure in place.

Businesses will be able to use idle land and underused assets through a range of investment models, including local and foreign investment, joint ventures, public-private partnerships and other strategic arrangements.

Officials said the sites offer opportunities for investment in electric vehicles, green steel, lithium batteries, packaging paper, agro-processing, textiles, chemicals, logistics and renewable energy.

“This offers a win-win opportunity: businesses can expand using ready industrial facilities, while the government benefits from increased employment and reduced fiscal pressure,” said Bida Executive Chairman Ashik.

At a meeting with prominent industrialists and business leaders last month, Prime Minister Tarique Rahman assured both domestic and foreign investors of full cooperation and policy support to revive the factories.

The factories fall under five state corporations -- Bangladesh Chemical Industries Corporation (BCIC), Bangladesh Sugar and Food Industries Corporation (BSFIC), Bangladesh Steel and Engineering Corporation (BSEC), Bangladesh Textile Mills Corporation (BTMC) and Bangladesh Jute Mills Corporation (BJMC).

They span major industrial sectors and are spread across the country’s major industrial belts.

Under the Bangladesh Steel Engineering Corporation, there are four industries, with three being operational but having unused land.

Of the 10 units under the Bangladesh Chemical Industries Corporation (BCIC), four factories are closed and two have become sick.

Of the 13 mills under the BSFIC, five are closed while the rest are operational.

In the case of the 13 mills under the BTMC, the tender process is underway for running most of the factories under a public-private partnership. The BJMC has five closed mills that have investable land with old structures.

The premises of two factories -- Latif Bawany Jute Mills Ltd and Karim Jute Mills Ltd -- are being converted into economic zones under the BEZA. The areas of two mills could be used for urban development, according to Bida.

Of the investment opportunities identified so far, only BCIC has disclosed a quantified investment pipeline, estimated at Tk 54,685 crore. The Ministry of Industries says the total investment potential across all state-owned enterprises runs into several billion dollars.

According to Bida, some assets could be revived for their original purpose, while others may be repurposed for industries that reduce import dependence or boost exports.

Ashik said investors would be offered transparent investment structures, faster approvals and coordinated government support.

He said the government believes the private sector is better placed to operate commercial enterprises efficiently, while the state should focus on facilitating investment rather than competing with private businesses.

Officials said ownership of the industrial units would remain with the government, with private sector participation taking place through lease and rental arrangements.

Mohammad Sabbir Awwal, additional chief engineer of Bangladesh Steel and Engineering Corporation, said the government plans to attract private investment to make productive use of idle land and underused assets while retaining public ownership of the enterprises.

He acknowledged that private investment procedures are often lengthy but said efforts are under way to speed up approvals.

According to Awwal, Steel and Engineering Corporation has identified investment opportunities at three operating enterprises: Progoti Industries Limited, Eastern Cables Limited and Atlas Bangladesh.

Around 10 acres at Progoti’s Sitakunda facility and more than 6 acres at Atlas have remained unused for years, while Eastern Cables also has substantial idle land.

The corporation is also seeking investors for a proposed green steel mill in Bogura through joint venture or public-private partnership arrangements, said Sabbir. Several business groups have expressed preliminary interest, although no formal commitments have yet been made.

Selim Raihan, executive director of the South Asian Network on Economic Modeling (Sanem), said Bangladesh’s previous experience with public asset disposal and privatisation underscored the need for a transparent process.

“I believe there is a need to put unused land to more productive use. However, the process must be transparent, especially given that our past experience has not been very encouraging,” he said.

According to Raihan, industrial land has often been diverted to purposes unrelated to industrial development, undermining the original objectives of such initiatives.

He argued that investors should be selected through a competitive process based on efficiency, capability and long-term business plans, and that investment decisions should align with a broader national strategy for industrialisation.

“In many countries, public sector enterprises operate efficiently through innovative management practices and public-private partnerships. These are areas we should explore,” he said.

Khodaker Golam Moazzem, research director at local think tank Centre for Policy Dialogue (CPD), said the initiative could attract investors because many state-owned industrial sites already have land, gas, electricity and other essential infrastructure.

However, he cautioned that investors would need long-term policy certainty before committing capital.

He also noted that much of the infrastructure at state-owned industrial enterprises is outdated and may have to be demolished or modernised to accommodate new investment.

Rather than requiring investors to revive closed factories, the government should allow them to establish industries that are economically viable and environmentally sustainable, he said.

Moazzem pointed out that many industrial sites, once located outside urban centres, are now surrounded by densely populated areas, making commercial or alternative industrial uses more practical in some cases.

He said the government must ensure that the assets offered are free from legal disputes, financial liabilities and outstanding obligations to banks, workers and other stakeholders.

“Without such assurances, private investors are unlikely to show interest,” he said.

At the end of the 2025-26 fiscal year, Bangladesh's capital market saw a 25% rise in foreign portfolio investors' stock trading activity, both buying and selling, driving total foreign stock turnover to a four-year high.

Yet the market continued to suffer a net capital outflow as foreign investors ultimately pulled more money out of equities than they put in, according to market data and officials.

Although the overall market turnover rose by nearly Tk1,000 crore year-on-year to Tk4,943.09 crore in FY26 from Tk3,943 crore in the previous fiscal year, foreign investors remained net sellers for most of the year.

The Dhaka Stock Exchange (DSE) data showed that foreign stock turnover in last fiscal year hit a four-year high, matching levels not seen since FY22.

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Heavy foreign selling ahead of the February national election, driven by political uncertainty and macroeconomic concerns, was followed by a brief rebound in inflows after the BNP-led government took office.

However, the momentum faded with the outbreak of the Iran-US conflict, which triggered another wave of foreign selling.

Market insiders attribute this shift to foreign portfolio investors pulling funds from Asian markets to concentrate on highly regulated capital markets, leading them to retreat from Bangladesh.

"Despite increased trading activity, foreign investors remained net sellers for most of the fiscal year, with particularly heavy selling pressure in June," a DSE official said on condition of anonymity.

"Following the assumption of office by the new BNP-led government, foreign portfolio investment in stocks surged as overseas investors poured funds into the market.

However, expectations of sustained foreign inflows faded after the beginning of the US-Iran war, the official added.

"Foreign investors' trading activity has picked up, but their selling volumes still exceed purchases, although the selling pressure has eased somewhat in recent months," said Saiful Islam, president of the DSE Brokers Association (DBA).

He said concerns over Bangladesh's vulnerability to energy price shocks during the Iran-US conflict prompted foreign investors to cut their exposure, adding that participation could recover once geopolitical tensions ease.

Saiful Islam also identified the capital gains tax regime and its calculation method as major impediments to attracting foreign investment, saying the DBA has repeatedly raised the issue with regulators.

"A new commission, comprising a chairman and three commissioners, has taken charge, and we hope that if it introduces initiatives to attract foreign investment, overseas investors will return to the market," he added.

A senior brokerage official said foreign investors have been pulling money from several Asian markets, including Bangladesh and India, to increase investments in developed markets.

"They are moving away from riskier markets and shifting to highly regulated ones. In 2025, foreign investors also withdrew a record amount of capital from the Indian stock market," the official added.

According to a Reuters report, foreign portfolio investors withdrew a record 1.6 trillion rupees ($18 billion) from Indian equities in 2025 amid valuation concerns, weak earnings, geopolitical risks and worries over steep US tariffs on Indian exports.

A previous TBS report showed that foreign capital outflows from Bangladesh's stock market hit a new high in May as overseas investors aggressively cut holdings in blue-chip and fundamentally strong stocks.

Amid escalating geopolitical tensions in the Middle East and persistent domestic economic challenges, foreign investors sold shares worth Tk161 crore during the month, while fresh purchases fell to just Tk6 crore.

The sharp imbalance underscores growing risk aversion among global fund managers, who are increasingly favouring liquidity and safe-haven assets over exposure to frontier markets.

The selling was concentrated in blue-chip and fundamentally strong stocks, according to DSE data.

Regulatory panacea works little to resuscitate investment and economic expansion as formal private credit growth stays almost stagnant in signs of prolonged slowdown in Bangladesh's private-sector-led economy.

To breathe life into the $500-billion-plus economy after months of sluggishness, Bangladesh Bank (BB) has taken up numerous remedial measures, including a stimulus package involving Tk 600 billion to revitalise the economy by way of reopening the stalled manufacturing bases across the country,

But the stimulating regulatory moves have worked little to regenerate confidence in the private-sector players yet, as is reflected in the recent data with the central bank.

According to the BB, the private-sector-credit growth reached 4.98 per cent by end of May last -- the third-lowest monthly count in the history of Bangladesh. The previous lowest growth recorded in the previous two months was 4.72 per cent in March and 4.75 per cent in April.

In fact, growth in private-sector credits has hovered around single digits since August 2024, reflecting prolonged sluggishness in the economy, which is largely private-sector-led.

Even in the just-concluded half-yearly monetary policy statement (MPS) for January-to-June period, the central bank made a private-sector-credit-growth projection at 8.50 per cent by end FY'26 but the actual level was much lower.

Such reluctance in investment credits is attributed to banks becoming more cautious amid higher non-performing loan (NPL) regime and private borrowers losing their credit appetite for perceived multiple anti-business factors, like energy crisis, higher cost of funds, exchange-rate shocks, and the existing taxation policy which is deemed not investment-friendly.

Seeking anonymity, a BB official says the regulator, as part of its plan to promote growth and employment, provided policy perks to the struggling borrowers by ways of allowing them to get regularized just paying 2.0 per cent of the outstanding loans as down payment.

Later, he recounts, the central bank eased the down-payment rules in February last as many of such borrowers were facing difficulties to pay 2.0 per cent. Under revised instructions, half of the stipulated amount must be paid at the time of approval, with the remaining 50 per cent due within six months from the date of effect.

"Despite these facilities, the credit growth for private sector has not got momentum yet," he says.

But the central banker appeared optimistic about a spur in the credit demand in the days ahead as the banking regulator announced the Tk 600-billion stimulus package in May last to boost investment.

Simultaneously, the BB official says, the central bank also capped deposit-lending rate spread within 4.0 per cent last month, which will help reduce the cost of formal credits for businesses amid contractionary monetary-policy regime.

While unveiling MPS for July-December of this year on June 30, BB Deputy Governor Dr Md. Habibur Rahman said the central bank projected the private-sector-credit growth to be increased to 5.50 per cent by June last.

President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Mohammad Hatem says entrepreneurs have been hit too hard to survive on the market under these prevailing extreme business-and investment climate.

He lists multiple factors, like ongoing prolonged energy crisis, higher borrowing costs and 'anti-business taxation policy', which make survival of the businesspeople difficult.

"Under such circumstances, who dares think of business expansion? I don't know how the growth (4.98 per cent) has happened and who are the borrowers? Will they be able to repay the loans? I have enough doubt," he says.

Chairman of Bangladesh Association of Banks (BAB), an apex body of bank shareholders, Abdul Hai Sarker mentions many factors which discourage the investors from putting their hard-earned money in productive ventures.

He says the supply of power and gas to the industries is uncertain.

"By the end of the day, you need power. Everything will become standstill without this basic thing."

Mr. Sarker, a business leader and also Chairman of Dhaka Bank, says a concerning matter is that the government is facilitating foreign investment by developing special economic zones (SEZs) where investors are getting integrated facilities.

But, he adds, local investors who set up manufacturing bases outside the SEZs in a scattered way faced many difficulties in securing such facilities, which badly affected their competitiveness.Bangladesh Investment Guide

"Yes, we want foreign investment but the government should also look at the local investors so that they can remain competitive with their global partners," he told The Financial Express about perceived local-foreign divide.

Managing Director and Chief Executive Officer of Mutual Trust Bank (MTB) PLC Syed Mahbubur Rahman notes that the volume of LC (letter of credit) opening has dropped significantly in recent times because of persisting prolonged economic sluggishness.

Because of the low credit appetite from the private sector, he notes, the commercial banks have intensified their concentration on investing in state-secured government securities -- treasury bills and bonds -- to make some gains amid the ongoing slowdown in economic activity.

The experienced banker thinks the country is basically heading for stagflation as job creation is not taking place and growth is slowing down while inflationary pressure keeps rising.

Chairman of Policy Exchange Bangladesh Dr M Masrur Reaz says the private-sector-credit growth remains a matter of concern for the country for more than a year whereas the growth was over 6.0 per cent.

"Now, it dropped below 5.0 per cent. It goes to severe worrying level from concerning level," he notes.

About the reasons, the economist says Bangladesh under the immediate- past interim government saw scanty reform activities in streamlining trade-and-investment ecosystem here.

As a matter of fact, the business environment significantly weakened in recent times and the recent

crisis in the Middle-Eastern countries worsened the situation further,

according to him.

=The Dhaka Stock Exchange (DSE) has drafted an amendment to its listing regulations to allow direct listing of private and multinational companies through a watered-down procedure.

The board of the premier bourse has approved the draft and sent it to the Bangladesh Securities and Exchange Commission (BSEC) for approval.

Direct listing means the listing of any non-listed securities or re-listing of any delisted securities, including those traded in the Over-the-Counter (OTC) market, on the exchanges through offloading existing shares instead of issuing new shares through a public offering.

The listing regulations effective between 2006 and 2015 allowed direct listing of both private and public entities. But a number of private companies, including Khulna Power Company Ltd, offloaded shares in the market at inflated prices, giving undue benefits to sponsor-directors. That prompted imposition of an embargo on direct listing of private firms through an order.

Hence, the withdrawal of the restriction is required prior to amending the listing regulations for the direct listing of private and multinational entities.

The BSEC can repeal its own directive to remove the restriction, said a senior official of the securities regulator.

On the listing of multinational firms, a DSE official said the incumbent commission of the securities regulator has members with experience of working with foreign companies.

"So, they are likely to give inputs to the draft amendment to facilitate the listing of multinational organisations," the DSE official said.

In the draft amendment, the DSE has also proposed removing unnecessary compliance burdens from the listing procedure.

At present, a company willing to enter the secondary market through the direct listing method must have a minimum paid-up capital of Tk 300 million. The DSE wants this rule to be relaxed.

The existing regulations also require a company to show profits in three years out of the immediate past five accounting or financial years with a steady growth pattern. In the draft amendment, the DSE has eased this provision, proposing a requirement of profits for at least two out of five years ahead of the listing. It also suggested flexible rules for share offloading. Presently, a company is required to offload at least 10 per cent of its shares within 30 days of listing. The DSE is in favour of relaxing this provision so that companies can offload shares without feeling undue pressure.

The DSE expects that the simplified listing procedure, if approved, will attract non-listed companies.

On simplifying the listing procedure, DSE Managing Director Nuzhat Anwar said a company under the existing rules needs to submit "a pile of documents" along with the IPO proposal to the securities regulator and stock exchanges.

If the proposed amendment is passed, online submission of documents through any of the bourses' platforms will suffice. The relevant bourse will scrutinise the documents and submit them to the securities regulator.

The existing requirement of dual listing will also be waived. Issuers will have the freedom of choosing one exchange for listing, which will cut down the cost of listing.

"The BSEC chairman has told us that the regulator will facilitate the job of simplifying the listing procedure through more discussions with the Dhaka exchange and issue managers," said Ms Nuzhat.

The Bangladesh Bureau of Statistics (BBS) has begun the process of rebasing the country’s gross domestic product (GDP), a major statistical overhaul aimed at capturing the rapidly evolving economy by incorporating new sectors, updating economic weights, and aligning national accounts with the latest international standards.

Officials at the country's national statistical agency say the exercise would adopt the fiscal year 2025-26 as the new base year, replacing the current 2015-16 benchmark.Bangladesh Investment Opportunities

The revision is expected to provide a more accurate measure of the size and structure of the economy, which has undergone significant transformation over the past decade.

"We have launched the GDP rebasing work," a senior BBS official told The Financial Express on Thursday.

The official said field surveys and data collection had already begun in several key sectors, including real estate, residential housing, and non-residential buildings.

More than 20 additional surveys will be required before the statistical agency can compile the revised national accounts.

The BBS has yet to announce when the revised GDP series will be published, as the exercise will require the completion of extensive nationwide surveys, data validation, and methodological reviews before the new estimates are finalised.

But the official said the rebasing adjustments would be seen in the 2028-29 fiscal year, adding, "Actually, at least two years are needed to complete the rebasing works."

GDP rebasing is a routine statistical exercise undertaken roughly every 10 years to ensure that national accounts reflect changes in production patterns, consumer behaviour, and the emergence of new industries.Statistics

The process updates the relative importance - or weights - of different sectors in the economy while incorporating economic activities that may have been previously undercounted or excluded.

The exercise will follow the internationally recognised System of National Accounts (SNA 2025), developed jointly by the International Monetary Fund (IMF), the United Nations (UN), the World Bank (WB), the Organisation for Economic Co-operation and Development (OECD), and the European Commission.

The framework requires countries to periodically revise their national accounts to improve comparability and statistical accuracy.

The SNA's newly updated focus includes the digital economy, globalisation, including global value chains, and the informal economy.

Besides, SNA expands the framework to directly address the measurement of well-being, sustainability, and Islamic finance.

Economists say the revision is particularly important for the country whose economy has diversified rapidly over the past decade through the expansion of digital commerce, information technology services, logistics, financial technology, modern retail, real estate, new agricultural products, and other service industries that are not fully reflected in the existing GDP series.Economic Trend Analysis

The BBS projected the country's economy to exceed $500 billion in nominal terms in the fiscal year 2025-26 and the Gross National Income (GNI) to stand at $529 billion.

Officials believe the rebasing exercise could further alter both the size and composition of GDP by better measuring these emerging activities.

The statistical revision is expected to affect several key macroeconomic indicators beyond headline GDP.

Ratios such as tax-to-GDP, public debt-to-GDP, fiscal deficit-to-GDP, and investment-to-GDP could all change once the economy is recalibrated, even if the underlying economic activities remain unchanged.

Rebasing does not create new economic output. Rather, it provides a more realistic measurement of an economy that has changed substantially since the last base year, says another BBS official.

Bangladesh has historically recorded upward revisions to both nominal GDP and GDP at constant prices following previous rebasing exercises, reflecting improvements in statistical coverage and methodology rather than sudden increases in production.

The current exercise is also expected to incorporate updated coefficients, benchmark surveys, and administrative data that better capture productivity and value added across sectors.Personal Finance Guide

Officials say many areas are growing, with dragon and strawberry cultivation having higher value additions.

The government is emphasising the creative economy that aligns with the traditional cottage industries, for example "Shithol Pathi".

The revision may also improve the measurement of informal economic activities, an area that has long posed challenges for policymakers in developing economies.

The work is being supported by the Statistical Capacity Enhancement and Modernisation Project (SCEMP), an approximately Tk 11 billion programme implemented by the BBS with substantial financial assistance from the World Bank.

The project aims to modernise Bangladesh's statistical infrastructure by developing an integrated, ICT-based statistical system and strengthening the quality, coverage, and timeliness of official data.

Officials say the project would provide much of the benchmark information required for the rebasing exercise, including updated business registers, household surveys, and sector-specific datasets.

"The availability of improved data under SCEMP will significantly accelerate the rebasing process," another BBS official says.Business News Alerts

Beyond revising GDP, the project is designed to align Bangladesh's statistical system with international best practices by improving core economic, labour, agricultural, price, and social statistics.

Economists say a successful rebasing exercise would enhance the credibility of Bangladesh's macroeconomic data at a time when international lenders, investors, and credit rating agencies are placing greater emphasis on statistical transparency and data quality.

"A more accurate measure of the economy could also improve policymaking by providing a clearer picture of structural transformation, helping the authorities design fiscal, monetary, and industrial policies based on a more representative assessment of economic activities," says Dr Zahid Hussain, an independent economist.

Women spend 7.3 times more hours on unpaid domestic work than men, contributing an estimated $50+ billion annually to the economy that will not be shown in the rebased GDP.

This will be shown in separate satellite accounts as per the SNA suggestions, BBS officials say.

Dhaka Bank has set out a broad strategy to join the top tier of Bangladesh’s private banks by strengthening digital banking, expanding green finance, improving profitability, and adopting artificial intelligence.

In an interview with The Daily Star, Dhaka Bank’s Managing Director and CEO Osman Ershad Faiz said, “My objective is straightforward. I want Dhaka Bank to be measured against the best private banks in the country on all key indicators -- return on equity, asset quality, capital efficiency, customer experience, and digital capability -- and I expect us to lead in most of them.”

As the bank marks its 31st anniversary, Faiz said his goals go beyond short-term gains.

“By the end of my tenure, I want to leave behind an institution that is stronger in every way -- financial performance, asset quality, digital strength, talent, and public trust -- than when I took charge.”

DIGITAL BANKING AND AI-LED TRANSFORMATION

Faiz said Dhaka Bank’s digital push is not limited to apps or online platforms.

“Anyone can launch an app and call it transformation. The real test is whether a customer can manage their entire banking needs without ever visiting a branch -- that is the standard I am setting,” he said.

A key example is e-Rin, a live product that enables instant loan approval and disbursement with minimal human involvement. The bank is now expanding this model to more retail and SME lending products.

It is also building a stronger technology workforce.

“A digital bank is built by engineers, data scientists, and product managers -- not just relationship bankers using new software,” Faiz said, adding that recruitment in these roles is underway.

Artificial intelligence and machine learning will play a central role in future operations. AI-based credit scoring is a priority, especially in the absence of a fully developed credit information system for small businesses and self-employed borrowers.

The bank plans to use alternative data such as mobile financial service transactions, payment records and mobile usage patterns to identify creditworthy customers.

AI will also be used for real-time fraud detection and customer analytics, allowing the bank to offer relevant products proactively instead of waiting for customer requests.

SME GROWTH, WOMEN ENTREPRENEURS AND GREEN FINANCE PUSH

The managing director said digital lending has significantly improved the economics of SME financing by reducing the cost of monitoring small loans.

He also highlighted women-led enterprises as a major untapped opportunity. “We are designing dedicated products and alternative credit assessment models for women entrepreneurs -- not because it looks good, but because the commercial opportunity is significant,” he said.

Green finance is being treated as a core business priority rather than a niche area. Faiz said future growth will depend heavily on financing renewable energy, climate-resilient agriculture, and sustainable manufacturing.

“The banks that build this expertise early will finance the country’s next generation of productive investments,” he added.

In 2025, Dhaka Bank disbursed Tk 580 crore in green finance, bringing its total green portfolio to Tk 660 crore, with plans for further expansion.

STRONG RESULTS, TARGETS AND BROADER ECONOMIC OUTLOOK

Despite a challenging sector environment, Dhaka Bank posted a record performance in 2025. Net profit rose 117 percent to Tk 279 crore, while return on equity more than doubled to 11.62 percent from 5.71 percent a year earlier.

“Doing this in one of the toughest years for the sector shows what this franchise can achieve with discipline,” Faiz said. “That is now the floor, not the ceiling.”

However, he acknowledged the bank still trails the country’s top performers and aims to close the gap over the next five years.

Targets include maintaining return on equity above 15 percent, keeping the non-performing loan ratio below 5 percent through the credit cycle, and ensuring most customer services can be completed digitally without branch visits.

Faiz, whose career includes roles at American Express, Standard Chartered across Asia, and AMTD Digital, said his outlook has been shaped by international experience.

“Having built businesses across several Asian markets, I have seen what separates fast-growing economies: a strong focus on skills, stable and consistent policies, and openness to global talent. Bangladesh has all the ingredients. What it lacks is not capability -- it is resolve,” he added.

Beyond banking, he pointed to pharmaceuticals as Bangladesh’s strongest long-term industrial opportunity, noting that it already meets 98 percent of domestic demand, grows at around 12 percent annually, and includes globally approved manufacturers, making it resilient as the country graduates from least-developed status.

Faiz also highlighted strong potential in IT services, driven by skilled labour rather than infrastructure, while calling renewable energy an economic necessity. The ready-made garment sector, he said, must move towards technical textiles, sustainability and higher-value production instead of volume expansion alone.

He added that remittance inflows should be channelled more into productive uses such as MSME financing and housing, rather than mainly into consumption.

On financial sector reforms, Faiz called for faster implementation of IFRS 9 -- the international accounting standard -- for earlier credit loss recognition, greater operational independence for Bangladesh Bank, full interoperability of mobile financial services under the National Payment Switch Bangladesh (NPSB), and the development of a strong corporate bond market.

“A functioning bond market would diversify funding sources, create new investment opportunities for institutional investors, and reduce concentration risk in the banking sector,” he said.

The proportion of individuals using the internet across Bangladesh continued its upward climb in the third quarter of the current fiscal year, according to the latest quarterly report of the ICT Access and Use Survey 2025-26, published by the Bangladesh Bureau of Statistics (BBS).

Meanwhile, in the same period, mobile phone ownership recorded a marginal dip after two consecutive quarters of growth.

The report, covering the January-March 2026 quarter, found that 58.6 percent of individuals aged five years and above used the internet, up from 58.4 percent in the second quarter (October-December 2025) and a sharp rise from 48.9 percent in the first quarter (July-September 2025).

Mobile phone ownership, however, edged down slightly to 65.4 percent in the third quarter from 65.5 percent in the second quarter, after rising steeply from 56.5 percent in the first quarter.

Despite the dip in ownership, overall mobile phone usage -- which includes shared devices -- rose marginally to 89.5 percent in the third quarter from 89.4 percent in the previous quarter and 80.6 percent in the first quarter.

Computer use among individuals also inched up, reaching 11.7 percent in the third quarter, compared with 11.4 percent in the second quarter and 10 percent in the first, indicating a slow but steady increase in digital device adoption.

At the household level, the survey -- conducted through Computer Assisted Personal Interviewing (CAPI) across all 64 districts -- found that internet access rose to 57.4 percent of households in the third quarter from 57.2 percent in the second quarter and 56.2 percent in the first.

Comparing full-year figures, household internet access has climbed from 55.1 percent in 2024-25 to 57.4 percent in the current survey year so far.

Mobile phone ownership at the household level remained virtually saturated at 98.9 percent throughout all three quarters, unchanged from the previous year.

The proportion of households owning a smartphone rose slightly to 73.4 percent in the third quarter from 73 percent in the second quarter and 72.4 percent in the first, continuing a gradual upward trend from 72.7 percent recorded in 2024-25.

Ownership of computers at the household level, meanwhile, showed only marginal movement, dipping to 8.9 percent in the second quarter before recovering to 9 percent in the third quarter, broadly flat compared with 9 percent in 2024-25.

Other indicators showed limited change. The proportion of households with a television dipped slightly to 58.8 percent in the third quarter from 59.2 percent in the second quarter, while radio ownership remained largely static at around 15 percent throughout the year.

Fixed-line telephone ownership continued its long-term decline, falling to 0.7 percent of households from 0.8 percent in 2024-25, as mobile phones remained the dominant mode of household connectivity, with 98.2 percent of households relying exclusively on mobile phones.

Household access to electricity showed a slight downward trend over the year, falling from 98.9 percent in the first quarter to 98.5 percent in the third quarter, though it remained near-universal nationwide.

The ICT Access and Use Survey, conducted under the BBS project titled “Measurement of ICT access and use opportunities at individual and household level, district-wise”, is the second large-scale, and the first district-representative, survey of its kind, following an earlier modular survey conducted in 2013.

It covers 2,568 sample areas nationwide, gathering data from 61,632 households per quarter, amounting to 246,528 households annually, through 214 trained field enumerators.

The findings, once compiled from all four quarters, will be released as an annual report and will also feed into 22 indicators to be submitted to the International Telecommunication Union, supporting national and global tracking of Sustainable Development Goal targets related to digital access and use.

BRAC Bank PLC, founded in 2001 under the leadership of Sir Fazle Hasan Abed to serve the “missing middle” -- small and medium enterprises (SMEs) that had outgrown microfinance but lacked access to formal banking -- has grown into one of Bangladesh’s leading financial institutions.

Over the past 25 years, the bank’s market capitalisation has surpassed $1 billion, and last year it became the first local private commercial bank to earn more than Tk 2,000 crore in annual profit.

It has financed more than 20 lakh SME entrepreneurs, helping create over one crore jobs, according to Tareq Refat Ullah Khan, managing director and CEO of BRAC Bank PLC.

“The numbers show that BRAC Bank has not just provided banking services — it has helped build the economy,” Khan said in an interview with The Daily Star.

Today, the bank operates through more than 2,300 locations across Bangladesh. Its Astha app processes nearly Tk 25,000 crore in monthly transactions and supports a retail portfolio of more than Tk 52,000 crore.

Its subsidiary, bKash, serves around eight crore customers, while the CorpNet platform handles more than Tk 23,000 crore in corporate transactions every month.

The bank has also financed a $96 million standalone Aframax oil tanker, the largest single-bank financing in Bangladesh’s shipping sector.

“BRAC Bank aims to remain one of the country’s best-governed and most trusted banks by providing customer-focused financial services. It also aims to become Bangladesh’s most impactful bank and eventually the country’s first multinational bank with full-scale overseas banking operations,” Khan said.

GOVERNANCE, STABILITY AND DIGITAL TRANSFORMATION STRENGTHEN RESILIENCE

Explaining banking safety, Khan said rising concerns over liquidity, asset quality and governance have made customers more cautious about where they keep their money.

“In this environment, trust has become banking’s most valuable currency,” he said, adding that trust is built through governance, financial strength, regulatory compliance and consistent performance.

He noted that BRAC, one of the world’s largest development organisations, is the bank’s largest shareholder, while most of its directors are independent financial experts with no shareholder interests, ensuring objective oversight.

The bank is also the only one in Bangladesh with international credit ratings from both S&P Global and Moody’s.

At the end of 2025, Bangladesh’s banking sector non-performing loan (NPL) ratio stood above 30 percent, while BRAC Bank’s fell to 2.27 percent. Its advance-to-deposit ratio was 63 percent, reflecting strong liquidity.

The bank’s capital base crossed Tk 10,000 crore, and net profit after tax reached a record Tk 2,251 crore in 2025.

Customer confidence was reflected in deposit growth as well: while industry deposits rose 11.51 percent, BRAC Bank’s increased by nearly 27.5 percent, or more than Tk 21,000 crore.

Khan acknowledged early challenges in SME banking, saying, “In the beginning, SME banking was our biggest challenge because many of our employees came from the microfinance sector, while SME banking requires a different approach.”

The bank responded by strengthening credit assessment and monitoring systems, reducing SME NPLs to around 2 percent, and working with one of the Big Four consulting firms to further improve operations.

Nearly half of the bank’s 10,600 employees now work in SME banking. Although the segment has a high cost-to-income ratio, BRAC Bank built a strong retail business to support stable funding.

Alongside this, wholesale banking -- including treasury, corporate, commercial and transaction banking -- became a key growth driver after its expansion phase between 2017 and 2020, following entry into the segment in 2010.

Khan said the bank now operates an integrated model where SME, retail and wholesale businesses reinforce each other. “One client relationship creates multiple business opportunities and revenue streams,” he said.

Foreign investors hold 35.89 percent of the bank, while BRAC holds 46.16 percent. The bank has introduced collateral-free CMSME lending, built offshore banking assets worth $1.3 billion, and significantly expanded retail operations.

Around 30–35 percent of income comes from treasury operations. “Even without treasury income, we would invest in other assets,” he said, adding that investment opportunities remain limited due to Bangladesh’s underdeveloped capital market.

Foreign trade has also become a major business driver, rising from about $1.5 billion in 2017 to $7.12 billion last year, enabling financing of around 6 to 7 percent of Bangladesh’s annual trade.

Digital transformation has been central to growth, with the Astha app enabling most routine services without branch visits. The corporate digital platform, launched in 2019, processes Tk 23,000 to Tk 24,000 crore in monthly transactions.

More than 30 projects using artificial intelligence, machine learning, robotics and automation have improved efficiency, while staffing in operations has not increased in line with the balance sheet that expanded from Tk 50,000 crore to Tk 162,000 crore.

Its next focus is expanding financial inclusion by strengthening remote banking services, allowing customers in underserved areas to access banking through digital platforms, websites and call centres without visiting branches.

The bank also runs a strong agricultural lending programme through more than 3,000 service points, directly serving rural borrowers rather than relying heavily on microfinance institutions (MFI).

Khan said its agricultural loans are priced at about 14 percent compared to nearly 24 percent charged by many MFIs.

Sustainability remains central to strategy. BRAC Bank is Bangladesh’s highest-ranked bank in Bloomberg ESG ratings, with about 82 percent of lending supporting sustainable sectors and nearly 10 percent of its corporate portfolio in green finance.

As part of the Global Alliance for Banking on Values, the bank continues to emphasise responsible banking.

“Banking is not a one-year business. It is an institution that must endure for generations,” Khan said.

Looking ahead, BRAC Bank aims to become Bangladesh’s most impactful bank by delivering both financial and social value, targeting more than 10 percent market share while expanding convenient banking services to all economically active citizens, especially in underserved and unbanked communities.