Former Bangladesh Bank governor Mohammed Farashuddin today (25 June) criticised the size and implementation strategy of the national budget for fiscal 2026-27, calling for a major overhaul of the country's taxation and administrative framework to support economic requirements.

Speaking at a seminar titled "National Budget: Insights and Perspectives" at East West University, Farashuddin, also an economist, argued that the current fiscal blueprint falls short of what the economy needs.

Unless the politician-bureaucrat nexus can be broken – and I don't see any provision in the budget for that – I don't see any result.

Mohammed Farashuddin, former governor, Bangladesh Bank
He contended that the budget should have been at least Tk14 lakh crore – equivalent to 20% of gross domestic product (GDP) – instead of its current allocation, which stands at just 13.7% of GDP.

Bureaucratic inertia and waste

The former central bank governor strongly criticised the lack of progress in administrative reforms and automation, asserting that entrenched inefficiencies continue to hinder effective budget execution.

He noted that efforts to automate tax administration began as early as 1983, yet little meaningful progress has been achieved over the last four decades.

"The automation has remained where it was," Farashuddin said. "Unless the politician-bureaucrat nexus can be broken – and I don't see any provision in the budget for that – I don't see any result."

He also alleged that public resources continue to be wasted through prolonged project timelines and unnecessary administrative expenditures. Alongside these systemic inefficiencies, he expressed deep concern over widening wealth inequality despite the country's broader economic progress.

Pointing out that the Gini coefficient – a metric used to measure income inequality – has risen from 0.32 in 1972 to 0.5 at present, he remarked that the country is going the other way around from the founding ideals of the 1971 independence.

He stressed that economic growth alone is insufficient unless wealth distribution becomes more equitable.

Radical tax restructuring proposed

Farashuddin directed sharp criticism at the National Board of Revenue, accusing it of failing to broaden the tax base and instead placing additional burdens on existing taxpayers. Citing data from the Boston Consulting Group, he noted that around 25 lakh people in Bangladesh have annual per capita incomes exceeding $5,000, yet a large portion of this affluent population remains outside the tax net.

To encourage greater tax compliance, he proposed a revised, tiered tax structure with lower rates across different income slabs. Under his proposal, a 5% tax would apply to the first Tk5 lakh after the tax-exempt threshold, followed by 10% on the next Tk10 lakh, 15% on the following Tk15 lakh, and 20% on the next Tk20 lakh, with a maximum rate of 22% on all remaining income.

"All finance ministers I have spoken to believe higher tax rates bring higher revenue. This is completely wrong," he asserted, arguing that lower rates stimulate better compliance.

LDC graduation and competition

Turning to global trade, Farashuddin opposed any move to delay Bangladesh's graduation from Least Developed Country (LDC) status.

The economist argued that the country should embrace international competition rather than postpone the transition. "We should have gone for the graduation, faced the challenge, and opened the economy to competition."

The seminar also featured a keynote presentation by Professor Mustafizur Rahman, a distinguished fellow at the Centre for Policy Dialogue (CPD), and AK Enamul Haque, the director general of the Bangladesh Institute of Development Studies (BIDS).

Questioning the revenue assumptions underpinning the budget, Mustafizur said projected revenue growth appeared disconnected from actual collection trends.

He also warned that the government's plan to borrow Tk1.12 lakh crore from the banking system to finance the budget deficit could place additional pressure on an already stressed financial sector.

"We must stop relying solely on banks and instead look toward the equity market and securitisation of profitable infrastructure assets such as the Metro Rail or Padma Bridge," he said.

Bangladesh can transport goods to China within 24 hours by road if it becomes part of the China-Myanmar economic corridor, Commerce, Industries, Textiles and Jute Minister Khandakar Abdul Muktadir said today (28 June).

The minister made the remarks while speaking to reporters after attending a workshop and reception programme for newly enrolled lawyers at the Sylhet District Bar Association.

He said China had already granted duty-free access to all Bangladeshi products, adding that Bangladesh's priority now is to attract more Chinese investment.
Muktadir also said the cabinet had recently approved the establishment of an 800-acre Chinese industrial park in Chattogram, which he expects will help strengthen bilateral economic ties.

Referring to the prime minister's recent visit to China, the minister expressed optimism that Bangladesh would see a significant inflow of Chinese investment in the coming years.

"The prime minister held meetings with the Chinese premier, senior leaders and major investors during the visit. As a result, we expect substantial Chinese investment in Bangladesh, which will also help reduce the trade deficit," he said.Responding to a question about criticism over the management committee of the Hazrat Shahjalal (RA) shrine in Sylhet, Muktadir said no one had been appointed to the committee on political grounds."The committee was formed through due process and in accordance with the rules," he added.Earlier, addressing the reception programme as the chief guest, the minister said lawyers play a crucial role in establishing the rule of law, ensuring justice and maintaining social order.He said a culture of impunity weakens both the rule of law and the social contract, adding that legal professionals are instrumental in protecting citizens' constitutional rights, including equality, freedom from discrimination, the right to life and personal liberty, and freedom of expression.

Muktadir also stressed the need to construct a new building for the Sylhet District Bar Association and establish a modern, regular training system to enhance lawyers' professional skills.

He said continuous training on artificial intelligence (AI), legal research, case analysis and courtroom advocacy would improve lawyers' capabilities and help produce more competent lawyers and judges in the future.

The minister also said he had pledged during the election campaign to make combating online gambling a priority.

He said a new law proposing tougher penalties for online gambling had already been placed before parliament and expressed hope that it would be passed after completing the legislative process.

He also highlighted the government's initiative to establish special tribunals to expedite the trial of drug-related offences.

The programme, chaired by Sylhet District Bar Association President Advocate Golam Yahya Chowdhury (Suhel), was attended by General Secretary Advocate Md Zubayer Bakht Zuber, acting District and Sessions Judge Mohammad Erfan Ullah, Divisional Special Judge M Ali Ahmed, Chief Judicial Magistrate Md Hasam Imam, Senior Judicial Magistrate Sudipta Talukdar, Metropolitan Magistrate Saiful Islam, leaders of the bar association, political figures and journalists.

Bangladeshi agritech startup iFarmer has won a $250,000 award from the OPEC Fund for International Development for helping smallholder farmers gain access to finance, agricultural inputs, advisory services, weather information and markets.

The company received the "Innovation for Development Award" at the OPEC Fund Development Forum, held at Vienna's historic Hofburg Palace on June 23 as part of the organisation's 50th anniversary celebrations, according to a press release issued today.
With the award, iFarmer became the first private-sector organisation and startup from Bangladesh to receive the honour.Since its inception, iFarmer has supported more than 300,000 farmers across Bangladesh through its integrated digital platform, improving access to essential agricultural services.The OPEC Fund for International Development is a development finance institution that provides financial assistance to developing non-OPEC countries.Its annual development award recognises organisations making significant contributions to development."This recognition reflects the immense potential of Bangladeshi innovation to solve global development challenges," said Tahmid Hasan, vice president of revenue at iFarmer."We are honoured to represent Bangladesh on this global platform and remain committed to building resilient food systems by empowering smallholder farmers through technology," he added.iFarmer was the only Bangladeshi organisation among this year's award recipients. The recognition is expected to enhance the company's global visibility and create new opportunities for international partnerships and to scale its impact in sustainable agriculture.

Bangladesh is evaluating China's proposal to establish an economic corridor through Myanmar and has not yet taken any position on the initiative, Foreign Minister Khalilur Rahman said today (27 June).

Speaking at a press briefing at the Ministry of Foreign Affairs in Dhaka on Prime Minister Tarique Rahman's visits to Malaysia and China, Khalilur said, "The primary objective is to improve regional connectivity, reduce transportation costs and transit time, and enhance Bangladesh's competitiveness."

Better connectivity is expected to support industrialisation, boost exports, and strengthen Bangladesh's economic integration with regional markets, he added.

China formally proposed the development of the Bangladesh-Myanmar-China economic corridor during talks between Chinese President Xi Jinping and PM Tarique in Beijing on Friday.

The prime minister returned home from Beijing on Friday, wrapping up his six-day maiden overseas visit.

Bangladesh and China on Friday unveiled an extensive joint communiqué during PM Tarique's visit to Beijing, announcing an upgraded bilateral partnership alongside agreements spanning trade, infrastructure, defence, connectivity and regional cooperation.

Among the key outcomes are China's support for the Teesta River Comprehensive Management and Restoration Project, backing for Bangladesh's aspirations to participate in BRICS as well as become a partner of the Shanghai Cooperation Organisation, plans for new strategic dialogue mechanisms and commitments to deepen cooperation in investment, ports, education and climate action.

During the press conference, the foreign minister said the two countries also discussed strengthening regional connectivity through multimodal transport links connecting Kunming with Bangladeshi ports.

In response to the question regarding what tangible gains Bangladesh achieved from the China visit, the foreign minister said, "We did not go with a begging bowl. This visit was meant to set the direction of the relationship between the two countries. If this is aligned, the rest will follow in the future."

Replying to another question, Khalilur said, "If Bangladesh can utilise Myanmar's existing ports and transport infrastructure, it would significantly reduce the time and cost of importing raw materials and transporting goods."

He continued, "Faster and cheaper logistics would improve Bangladesh's competitiveness, attract greater foreign investment, and make its manufacturing sector more efficient and export-oriented."

Responding to a question, he said the current discussions are focused solely on economic connectivity. "If peace and stability return to Myanmar's Rakhine State in the future, other forms of connectivity could be considered, but that is not part of the current proposal."

At a separate event in Sylhet today, Commerce Minister Khandakar Abdul Muktadir said Bangladesh can transport goods to China within 24 hours by road if it becomes part of the economic corridor.

A total of 17 memoranda of understanding (MoUs) were signed during the PM Tarique's visit to China.

Bangladesh-China ties reach highest level

The foreign minister said Bangladesh and China had agreed to elevate their bilateral ties to the highest level of cooperation.

"The relationship has been upgraded from a 'Comprehensive Strategic Cooperative Partnership' to a 'China-Bangladesh Community with a Shared Future' in the new era, opening a new chapter in bilateral cooperation. The new framework is expected to strengthen political trust, deepen economic cooperation, and reinforce long-term strategic collaboration between the two countries," he said.

"China does not maintain the highest level of bilateral relations with all countries. In Asia, only a handful of countries, including Thailand, Sri Lanka, Cambodia, Pakistan and Indonesia, enjoy such a partnership with China. Bangladesh has now joined that group," he added.

Khalilur said the most significant outcome of the visit was the substantial enhancement of the depth, breadth and quality of Bangladesh-China relations. The two sides also agreed to explore the establishment of a regular "2+2 Dialogue" involving their foreign and defence authorities.

Joint feasibility study on Teesta

The foreign minister said discussions on the Teesta River Comprehensive Management and Restoration Project had advanced significantly.

"For the first time, experts from Bangladesh and China will undertake a joint technical feasibility study. China has indicated that it is prepared to support the project's implementation if the feasibility study demonstrates that it is technically and economically viable," he said.

Asked about the project timeline, Khalilur said it was too early to provide a specific timeframe, as implementation would depend on the findings of the feasibility study.

On the Rohingya issue, he said, "China has pledged to work with both Bangladesh and Myanmar to help expedite efforts to resolve the Rohingya crisis and advance the repatriation process. Discussions among the parties are expected to intensify in the coming months to facilitate progress toward a sustainable solution."

When the mercury rises so do the costs for an economy as productivity melts and growth becomes lethargic, providing an additional challenge to Europe as it struggles with high energy prices.

“Extreme heat is emerging as a structural economic risk, with Europe highly exposed,” wrote the trade credit arm of European insurer Allianz as the continent swelters under its second heatwave of the year.

Europe has a number of weaknesses: an ageing population, dense urban centres with many buildings not built for extreme heat, and just 19 percent of households with air conditioning compared to 90 percent in the United States, the analysts noted.

Heatwaves are becoming frequent as Europe warms faster than other regions of the world, and many scientists consider human activity will cause more extreme weather events.

“France is working in slow mode,” recently observed Patrick Martin, head of Medef, France’s main employers’ organisation.

“Inevitably, it disrupts work and leads to less work being accomplished,” he told BFM television.

Allianz Trade has identified “a critical threshold” of around 30C beyond which productivity losses intensify rapidly.

According to AFP’s calculations more than 100 million people in Europe were set to experience temperatures in excess of 35C on Thursday, and nearly two-thirds of Europeans living where temperatures would surpass 30C.

In a blog post last year the European Central Bank said heatwaves in the spring, autumn and winter can boost economic activity, particularly construction, agriculture and outdoor dining.

“By contrast, heatwaves during the already warmer summers reduce economic activity, as physical exertion outdoors becomes increasingly impaired,” it said. Drops in productivity, the need to shift investment to climate adaptation, and energy price hikes that dampen purchasing power all contribute to a drop in economic activity.

ECB research found that summer heatwaves reduce regional activity of around one percent.

And in contrast to traditional views of a temporary disruption, the ECB found “the reduction in output is prolonged and even intensifies, reaching a trough of 1.5 percent lower after two years”.

The Banque de France’s new governor, Emmanuel Moulin, recently told France Inter radio that “there is clearly a negative effect on growth in the medium term”.

Extreme heat, which can provoke a hike in energy prices thanks to higher demand due to air conditioning, can also contribute to higher food prices and inflation over the medium term as it curtails yields and disrupts supply chains.

The ECB calculated that a 2022 drought caused European food prices to rise 0.7 percentage points. Olive crops were particularly affected, with the price of olive oil skyrocketing.

The central bank is concerned that climate change related increases in food prices could increase and create more difficulties for it to forecast inflation.

“Without a rapid shift that commits to climate adaptation and carbon neutrality, these phenomena risk becoming a long‑term structural drag on the economy,” said Hazem Krichene, a climate and sustainability economist at Allianz.

He called for better coordination at the European level to act preventively.

Allianz Trade ran a stress scenario under which the five hottest years in each country between 2014 and 2024 were repeated between now and 2030.

It calculated that it could lead to cumulative losses in gross domestic product of between five and seven percent.

That would be a hit of $240 billion for France, $147 billion for Italy, $131 billion for Germany and $120 billion for Spain.

Tax revenue would also be hit, causing an estimated drop of 1.8 percent in France, just as expenses on infrastructure and health care need to be boosted.

That would worsen the already difficult situation many European countries find themselves in concerning budget deficits and debt, with their capacity to borrow constrained.

Government's Export Promotion Bureau (EPB) sets sights high on external trade and proposes setting total goods and services export target at US$67 billion for the imminent fiscal year.

Proposed target for goods export is $58 billion for the fiscal year (FY) 2026-27, predicting over 21-percent growth, sources say.

And the earning from services export is projected at $9.0 billion, riding on an expected growth of over 26 per cent.

More than 80 per cent of the proposed export earnings are expected to come from the ready-made garment (RMG) sector, a longtime biggest export-earning item for Bangladesh.

The bureau expects the apparel-export receipts to reach $38.56 billion by the end of the current fiscal year. It proposes 21-percent higher shipments in the next fiscal year, leading to an earning of $46 billion.

The initial overall export-performance target for the outgoing fiscal was $55 billion.Accounting & Auditing

Apparel-sector leaders, however, have termed the target 'ambitious' by taking the overall situation, especially that of energy, into consideration.

Sources also say the recent energy and food crises caused by the US- Israel and Iran war, Middle East turmoil, and prolonged impact of the Russia-Ukraine war have had a negative impact on the country's economy like in many other countries around the world.

High inflation in developed and developing countries has reduced purchasing power of consumers, with their focus now on meeting essential goods requirement, they say, adding that suspension or keeping work orders on hold by foreign buyers, pressure to squeeze price have acted as obstacles to export growth.

Besides, exports to India have fallen following port restrictions, they note, adding that all these factors are also taken into consideration in drafting the target.

Asked about the higher targeting, EPB vice-chairman Mohammad Hasan Arif says they have drafted the proposal after discussion with "almost all the major stakeholders".

The EPB held a meeting on June 23 in this regard. Without giving details, he says, "We will send the proposal to commerce ministry early next week. "Government Agencies

Speaking to the FE on Thursday, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Mahmud Hasan Khan termed the garment target 'very ambitious' considering the exiting situations, especially that of gas and electricity supplies.

Industry has marketing ability, production capacity and infrastructure to achieve the target, he says, "but many factories can't use their full production capacity due to current gas and electricity supply which is rather day by day deteriorating".

"With existing gas and electricity supply, the target is very ambitious," he says, stressing the need for bringing the energy supply at a reasonable level to achieve the target.

Meanwhile, the country's exports entered a negative territory on a year-on-year basis in August 2025, when the country recorded a 2.93-percent fall mainly because of the negative growth of readymade garments.

The downtrend was followed by a decline of 4.61 per cent, 7.43 per cent, 5.58 per cent, 14.25 per cent, 0.50 per cent, 12.03 per cent, 18.07 per cent and 7.07 per cent in September, October, November, December, January, February, March and May respectively.

However, the export receipts grew by 24 per cent and 32 per cent last July and April respectively.

Bangladesh earned $43.79 billion from exports of merchandise during the July-May period of the FY 2025-26, reflecting a 2.55-percent year-on-year negative growth over the $44.94 billion earned in the corresponding period of last fiscal, according to EPB data.

The EPB has, however, projected that overall export would reach $47.82 billion at the end of June against $48.28 billion earnings in FY 2024-25.

Finance Minister Amir Khosru Mahmud Chowdhury sets out a three-pronged economic-resilience strategy for protecting Bangladesh from global economic turbulence and the fallouts from continuing instability in the Middle East.
FE

While elaborating on the Three-R strategy in parliament on Wednesday, he also unveiled government plans for simultaneously broadening the domestic tax base to strengthen public finances.

In written responses to queries, the minister outlined what he described as a "Three-R Strategy" -- Recovery and Stabilization, Restoration, and Reconstruction for Acceleration -- designed to safeguard macroeconomic stability, diversify exports and enhance the competitiveness of the economy.

The strategy that the finance minister outlined in his budget speech delivered on June 11 last comes as the government is facing a series of external challenges, including volatile energy prices, uncertainty in global trade.

To ease such a bundle of risks, the government is pursuing new labour agreements with Russia, Portugal, Romania, Brazil, Greece, Serbia and North Macedonia, while also seeking to reopen labour markets in Malaysia, Oman, the United Arab Emirates and Kuwait.

The government will maintain its 2.5-percent cash incentives for remittances sent through formal channel and continue efforts to bolster foreign-exchange reserves through export diversification, tighter controls on non-essential imports and exchange-rate stability.

The finance minister also says Bangladesh was preparing contingency measures to offset potential increases in global fuel, liquefied natural gas (LNG) and fertiliser prices, including diversifying energy sources, accelerating domestic gas exploration and maintaining subsidies where necessary.

Alongside the broader economic strategy, Chowdhury announces plans to bring 16 additional business sectors under a fixed value-added tax (VAT) regime from the 2026-27 fiscal year as part of efforts to increase revenue collection.

The sectors include groceries, garment and clothing retailers, confectionery businesses, cosmetics shops, household plastic and ceramic goods sellers, shoe retailers, hardware stores, decorators, mobile phone and electronics retailers, paint and sanitary fittings businesses, tile dealers, corrugated-sheet retailers, rod and cement traders, furniture stores, beauty parlours, sweet shops and restaurants.

According to the finance minister -- who has placed an upscale Tk 9.38-trillion national budget in parliament for the forthcoming fiscal year -- VAT collections reached Tk1.42 trillion during the fiscal year 2024-25.

In a separate parliamentary response, the minister said it remained difficult to determine the precise amount of money illegally transferred abroad from Bangladesh because of the absence of sufficient and internationally accepted data.

However, citing findings from the White Paper Committee established by the interim government, he notes that Bangladesh experienced an estimated $234 billion in illicit financial outflows between 2009 and 2023 -- an average of roughly $16 billion annually.

The committee has estimated that the outflows were equivalent to 3.4 per cent of GDP in fiscal year 2023-24, nearly one-fifth of the country's combined export and remittance earnings, more than 11 per cent of national savings and almost double the volume of net foreign aid and foreign direct investment inflows.C

The figures highlight the scale of the challenge facing the government as it seeks to restore confidence in the economy, strengthen foreign-exchange reserves and improve fiscal sustainability amid a turbulent global environment.

The government has initiated a process to engage international legal firms to help recover money linked to defaulted loans created through irregularities and corruption in the banking sector, Finance Minister Amir Khosru Mahmud Chowdhury told Parliament on Wednesday.

Responding to a question from Kurigram-1 MP Anwarul Islam, the finance minister said the government signed non-disclosure agreements (NDAs) with nine international law firms and begun the recruitment process on a "no win, no fee" basis to assist nearly 30 troubled banks in recovering non-performing loans.

As part of the first phase, legal proceedings have been launched in six cases involving former Land Minister Saifuzzaman Chowdhury, controversial businessman S Alam, and business groups associated with Beximco, Sikder Group, Nasa Group and Orion Group.

The minister said the international firms would help banks identify overseas assets and funds belonging to alleged loan defaulters and provide legal assistance to repatriate those assets to Bangladesh. The government plans to expand the initiative further in the future.

The information was provided during the parliamentary question-and-answer session held under the chairmanship of Speaker Hafiz Uddin Ahmed.

Replying to a question from Chandpur-3 MP Sheikh Farid Ahmed, the finance minister said Bangladesh currently has 193.25 million bank accounts.

Of these, 177.95 million are savings accounts, while 15.31 million are loan accounts.

He added that the government formulated the National Financial Inclusion Strategy (NFIS) with the goal of bringing all adult citizens under the formal financial system by 2026. Bangladesh's current financial inclusion rate stands at 64.5%.

In response to a question from Jamalpur-3 MP Mostafizur Rahman Babul, the minister said Bangladesh's external debt stood at $78.23 billion as of March 2026.

Concessional loans accounted for 61.97% of the total external debt portfolio, while non-concessional loans represented 38.03%.

Replying to a question from Mymensingh-8 MP Lutfullahel Majed, the finance minister said the number of registered taxpayers in the country increased to 13.83 million.Famous Quotations

The figure represents an 11.86% increase compared with the previous fiscal year.

Responding to a question from Gaibandha-4 MP Mohammad Shamim Kaisar, the minister said the government allocated Tk15.68 billion under the agricultural loan waiver programme for loans of up to Tk10,000 during the current fiscal year.

A total of 1.41 million farmers have benefited from the scheme.

The finance minister also informed Parliament that Bangladesh Bank had been providing regular emergency liquidity assistance to banks facing difficulties in repaying customer deposits because of liquidity shortages.

Responding to a question from reserved-seat MP Mosammat Shammi Akter, he said the central bank had provided Tk759.03 billion in emergency liquidity support as of 15 June.

In response to a question from Sirajganj-5 MP Amirul Islam Khan, the minister said 63 banks are currently operating across Bangladesh through 11,326 branches and 4,929 sub-branches.

Responding to separate questions from lawmakers from both the treasury and opposition benches, the finance minister said five Islamic banks -- Exim Bank, First Security Islami Bank, Global Islami Bank, Social Islami Bank and Union Bank -- have been brought under the Bank Resolution Scheme 2025.Geographic Reference

He said depositors of these banks are being repaid, and under the Deposit Protection Act 2026, each depositor is eligible to receive up to Tk200,000.

The minister added that various departments of Bangladesh Bank are monitoring other banks facing liquidity stress and that actions will be taken under the Bank Resolution Act 2026 if necessary.

He also noted that the insured deposit limit has been doubled from Tk100,000 to Tk200,000 under the Deposit Protection Act 2026. According to the minister, Tk12,000 crore has already been transferred from the Deposit Protection Fund to the current accounts of the merged Islamic banks to support depositor protection and financial stability.

The US Federal Communications Commission on Friday said ​it will ban the import of more equipment from a group of ‌Chinese manufacturers, the latest move by Washington to crack down on Chinese-made electronic gear.

The move expands an FCC ban imposed in 2022 on new models of telecommunications and video surveillance ​equipment made by Huawei, ZTE, Hytera, Hikvision, and Dahua, citing US national ​security risks.

The ban now includes old models, not just those ⁠designed starting in late 2022, of equipment used for "public safety, security of ​government facilities, physical security surveillance of critical infrastructure, and other national security ​purposes," the FCC said.

The expanded ban is set to take effect in early July. The FCC said the action "is necessary to protect national security by mitigating risks to the US communications sector."

The Chinese Embassy ​in Washington and the companies did not immediately respond to inquiries.

The FCC ​said it would allow Americans to continue to use equipment they already own.

The FCC has ‌taken ⁠a number of actions targeting Chinese tech, including banning imports of all new models of Chinese drones in December. In March it banned the import of new models of Chinese-made consumer routers, the boxes that connect computers, ​phones and smart devices ​to the internet.

The ⁠new order does not ban imports of prior models of drones and routers.

In October, the FCC voted 3-0 ​to block new approvals for devices with parts from ​companies on ⁠its list and let the agency bar previously approved equipment in some instances.

Hikvision sued in December challenging that decision, saying the agency exceeded its authority and ⁠lacked ​basis for the move.

The FCC is also considering ​prohibiting US telecommunications carriers from interconnecting with Chinese telecom firms, which would effectively ban Chinese ​telecoms from operating US data centers.

Bangladesh implemented just 48.23 percent of its Annual Development Programme (ADP) during the first 11 months of the outgoing fiscal year, marking the lowest execution rate in 16 years.

Data released on Thursday by the planning ministry’s Implementation Monitoring and Evaluation Division (IMED) showed that the Ministry of Science and Technology recorded the highest spending against its allocation between July and May of fiscal year 2025-26.

The Health Services Division posted the worst performance.

The interim government had initially targeted ADP spending of Tk 2.39 trillion for the fiscal year.

However, amid sluggish implementation, the National Economic Council (NEC) cut the programme by Tk 300 billion on Jan 12, reducing it to Tk 2.09 trillion.

The latest figures show total expenditure of Tk 1.08 trillion across all development projects during the first 11 months.

In the same period of fiscal year 2024-25, spending stood at Tk 1.11 trillion, with an implementation rate of 49.08 percent.

An analysis of IMED data suggests that the slowdown in ADP execution that followed the 2024 July Uprising, deteriorating law-and-order conditions and administrative reshuffles has yet to ease.

Government ministries and divisions spent Tk 142.48 billion in May alone, down from Tk 175.81 billion in May of the previous fiscal year.

The Awami League government had originally approved an ADP allocation of Tk 2.78 trillion for fiscal year 2024-25.

The interim government later reduced it to Tk 2.26 trillion, of which Tk 1.53 trillion was spent, yielding an implementation rate of 67.85 percent—the lowest in two decades.

After taking office following the student-led mass uprising that toppled the Awami League administration, the interim government prioritised selected projects and scaled back funding for many initiatives approved under the previous government, leaving numerous projects stalled.

ADP implementation rates during the first 11 months of the previous four fiscal years were 64.84 percent, 61.73 percent, 57.54 percent and 49.08 percent, respectively.

IMED records dating back to fiscal year 2010-11 show that this year’s performance is the weakest in 16 years.

Over the previous 15 years, implementation rates generally ranged between 65 percent and 70 percent.

Among the 15 ministries and divisions receiving the largest allocations, the average implementation rate was 59.09 percent. Together they accounted for 70.97 percent of the revised ADP.

Science and technology led with 83.33 percent, followed by energy and mineral resources at 79.48 percent and agriculture at 68.83 percent.

At the bottom was the Health Services Division, which spent only 22.15 percent of its allocation.

Despite 11 months having passed in the current fiscal year, ministries and divisions have failed to spend even half of the allocation under the Annual Development Programme (ADP), shows the latest data from the Implementation Monitoring and Evaluation Division (IMED).

Data published today (25 June) showed that only Tk1,00,763 crore was spent during the July-May period of FY2025-26, representing 48.23% of the revised ADP allocation.

The government had allocated Tk2,08,935.53 crore under the revised ADP for FY26, including funding from development partners and implementing agencies.

Also, the expenditure during the first 11 months of the fiscal year was Tk10,242 crore lower than the corresponding period of the previous fiscal year. In FY25, ADP implementation reached Tk1,11,005.73 crore (49%) during the July-May period.

The slowdown is even more pronounced compared to FY24, when development spending stood at Tk1,46,375.50 crore (57.54%) in the first 11 months of the fiscal year.

IMED officials said the previous fiscal year did not see a normal environment for development spending. Following the fall of the Awami League government in August 2024, administrative instability emerged, while many project directors and contractors left.

They said the situation continued into the current year. With the government focused on the election, its activities became largely polls-oriented, slowing the pace of development work.

After taking office, the new government began reviewing projects. A screening process was launched to identify projects that were not aligned with their election manifesto. Officials said the review of around 1,300 projects has also slowed implementation.

Mustafa K Mujeri, former director general of BIDS, said the low implementation rate this fiscal year was expected given the exceptional circumstances.

"Most of the government's attention was focused on the election and carrying out reforms. As a result, development projects could not receive the same level of priority," he said.

The economist said past practice showed attempts to boost spending at the end of the fiscal year often created risks of wasteful expenditure.

"Unnecessary or rushed spending may create further problems in the future. The focus should remain on proper planning and quality implementation," he added.

Spending by ministries, divisions

Data shows expenditure during July-May from government funds reached Tk59,789 crore, or 46.71% of the allocation. Spending from foreign loans and grants stood at Tk35,510 crore, or 49.32%, while agencies spent Tk5,465 crore from their own funds.

Only 15 of the 57 ministries and divisions managed to utilise at least half of their allocations. These 15 ministries and divisions accounted for 70.97% of the total ADP allocation, making their performance crucial to overall implementation.

Among the largest recipients, the Health Services Division posted the weakest performance, spending just 25.87% of its allocation. The Ministry of Primary and Mass Education utilised 35.18%, while the Ministry of Railways spent 42.46%.

The Technical and Madrasa Education Division implemented 44.42%, the Secondary and Higher Education Division 47.35%, and the Road Transport and Highways Division 46.23%. The Ministry of Housing and Public Works achieved a slightly better rate of 50.25%.

Bangladesh’s apparel exports to European Union (EU) took a severe hit in the first four months of 2026, recording the steepest decline among major global suppliers amid a broader market contraction, according to the latest Eurostat data.

Bangladesh underperformed compared to its key competitors, suffering from a dual blow of eroding export volumes and falling unit prices, said Mohiuddin Rubel, Former Director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Additional Managing Director of Denim Expert Ltd.

According to data presented in the document “EU export document”, total EU apparel imports from across the globe dropped by 10.42 percent year-on-year during the January–April 2026 period, falling to €27.77 billion from €31.00 billion in the corresponding period of 2025.

During this timeframe, Bangladesh’s exports to the EU plummeted by 19.33 percent, dropping to €6.09 billion from €7.54 billion.

Industry experts pointed out that unlike other major competitors who managed to hold ground on either price or volume, Bangladesh lost on both fronts simultaneously. The country’s export volume fell by 9.91 percent to 435.97 million kg, while its average unit price slid sharply by 10.45 percent to €13.96 per kg.

The single-month data for April 2026 painted an even bleaker picture for the country, showing a sharp 19.53 percent year-on-year drop in value, alongside a 14.63 percent decline in volume and a 5.74 percent dip in unit prices.

Mixed Fortunes for Global Competitors

While the overall European market slowed down due to a 5.48 percent drop in global import volumes and a 5.22 percent decline in average unit prices, Bangladesh’s rival manufacturing hubs showed highly varied strategies and outcomes:

China: The top clothing supplier posted the mildest value decline of just 4.70 percent (€7.95 billion) and emerged as the only major exporter to increase its shipping volume, which grew 3.25 percent to 408.91 million kg. This was achieved through aggressive pricing, with its unit price dropping 7.70 percent to €19.44 per kg.

Vietnam: Exhibited remarkable resilience, with its export value dipping a marginal 0.70 percent to €1.37 billion. Despite a 7.11 percent contraction in shipment volume, Vietnam managed to defend its market position through premium pricing, securing a 6.90 percent increase in unit prices to €29.43 per kg.

Turkey and India: Turkey saw a volume-led export value decline of 16.60 percent to €2.42 billion, even as its unit prices rose marginally by 1.49 percent. India registered a 12.10 percent contraction in value to €1.64 billion, hit by drops in both volume (-7.70 percent) and price (-4.76 percent).

Pakistan: Recorded an unusual market dynamic where its export volume actually rose by 5.86 percent (108.53 million kg), but its overall earnings plummeted by 17.94 percent to €1.09 billion due to a massive 22.49 percent collapse in unit prices—the steepest price drop among all monitored nations.

The Eurostat data highlighted that Bangladesh’s double-digit decline represents a distinct vulnerability in the European market. While China opted for volume growth via price cuts and Vietnam successfully prioritized value over volume, Bangladesh was uniquely caught in a downward spiral on both metrics.

Local industry insiders stressed that the dual erosion of price and volume on a comparable scale was not observed in any other major garment-exporting nation, signaling an urgent need for Bangladeshi exporters to re-evaluate pricing strategies, boost competitiveness, and diversify into higher-value apparel segments.

The World Bank has approved $1.1 billion for two projects to help Bangladesh mitigate the price and supply volatility in global fertiliser and fuel markets, sustain food security, and enable a rapid response to economic shocks.

The global lender stepped up with immediate support as rising food, fertiliser, and fuel prices stemming from the US-Israel war on Iran, which has culminated in a broader Middle East conflict, according to a press release issued yesterday (26 June).

The global shock, alongside a tighter fiscal space, has deeply impacted Bangladesh's economy, hitting smallholder farmers and vulnerable populations the hardest, it said.

World Bank Division Director for Bangladesh and Bhutan Jean Pesme said, "Rising food, fertiliser, and fuel prices stemming from the Middle East Conflict, along with tighter fiscal space, have deeply impacted Bangladesh's economy, hitting smallholder farmers as well as poor and vulnerable people the hardest."

He added that the financing aims to ensure fertiliser supply for rice production, protect households, jobs, and livelihoods, and maintain essential services.

Of the total funding, the Emergency Support for Food Security Project will provide $300 million in time-bound financing to help Bangladesh import fertilisers critical for the upcoming Aman and Boro cultivation seasons, spanning July-October this year and from October to April next year, respectively.

Bangladesh currently imports more than 85% of its fertiliser requirements, said the World Bank.

This project, it said, will finance the import of 6,00,000 tonnes of critical fertilisers – half of which will be Urea – covering 1.4 million hectares of rice production cultivated by smallholder farmers.

Souleymane Coulibaly, World Bank lead economist and task team leader for the project, emphasised that Bangladesh's food security heavily relies on the Aman and Boro seasons, which together account for about 90% of the country's total rice production.

"About half the population is employed in the agriculture sector. So any disruption in fertiliser supply would not only threaten food security, it would deepen poverty and cost jobs," Coulibaly added.

Regarding the remaining $713 million, the release clarified that it will fund the Contingent Emergency Response Project, which supports quick-disbursing emergency expenditures.

This includes cash transfers and livelihood assistance for affected households and micro, small, and medium enterprises to stabilise incomes and preserve jobs during crises, stated the lender.

It will also finance fuel and energy supplies to ensure the continuation of essential services, including food, medicines, medical equipment, energy, and water.

The project, which utilises the World Bank's crisis preparedness and response toolkit by repurposing unutilised financing from existing projects, will disburse the funds by 30 June.

"This project will provide Bangladesh immediate access to funds through the World Bank's crisis preparedness and response toolkit by repurposing unutilised financing from existing projects, directing resources where they are most needed and protecting people, businesses, and jobs from the impact of shocks," said Lesley Jeanne Yu Cordero, World Bank lead disaster risk management specialist and task team leader for the project.

The government will begin lobbying foreign diplomats in Dhaka next month to build support for its request to defer Bangladesh's graduation from Least Developed Country (LDC) status by three years, as the issue moves towards consideration at the UNGA.
"We will sit with all the foreign missions in Bangladesh in the first week of July. We will explain Bangladesh's reasons for seeking an additional three years before graduating from LDC status," a senior Economic Relations Division (ERD) official said on Wednesday.

As Bangladesh's request for a deferral will ultimately require approval through the UN system and endorsement by the United Nations General Assembly (UNGA), securing broad international support is considered crucial, he added.

Officials said Bangladesh's fate regarding the proposed deferment is likely to be decided at the UNGA session in September this year.

Although Bangladesh is scheduled to graduate to developing-country status in November 2026, Dhaka has sought an additional three years to prepare for the transition amid a series of domestic and external challenges.More than two months ago, Bangladesh formally requested the United Nations Committee for Development Policy (UNCDP), the body responsible for reviewing graduation criteria, to grant an extension in light of emerging economic and geopolitical pressures, including global shocks, energy supply constraints, domestic political transition and other external uncertainties.Special Occasions

The UNCDP has since responded to Bangladesh's request, outlining a number of conditions linked to the proposed deferment.The committee emphasised the importance of domestic reforms, including measures to stabilise the financial sector, strengthen domestic resource mobilisation through higher tax revenues, and prioritise expenditures that enhance resilience and support economic transformation.

According to ERD officials, policy recommendations on LDC graduation are first considered by the executive bodies of the UN system, including the Economic and Social Council (ECOSOC), before being forwarded to the UN General Assembly for final approval.

"Almost all foreign missions in Bangladesh represent UN member states. Therefore, we need to clearly explain the rationale behind our request for a graduation deferment," another ERD official said.

He noted that while an ECOSOC meeting is scheduled soon, Bangladesh's request may not be discussed immediately and could instead be taken up at a later meeting, possibly in late July.

"Once the matter is discussed at ECOSOC, we will have a clearer idea about the timeline for consideration of the graduation deferment request," the official said.Government

He added that although greater clarity on the process is expected after the ECOSOC discussions, the final decision will rest with the UNGA.

Bangladesh is not alone in seeking additional time. Nepal, another country scheduled for graduation in 2026, has also requested a three-year deferment.

"Since Nepal has submitted a similar request, the UN may adopt a common approach for both countries," the official said.

In a letter sent to the ERD Secretary on June 1, the UNCDP gave what officials described as a positive response to Bangladesh's request, although it did not specify any timeframe for a possible extension.

The committee stated: "Without significantly advancing on such reforms, it is difficult to see how an extension of the preparatory period requested by Bangladesh would contribute to a more sustainable graduation and a smooth transition. Hence, the extension should not be viewed as a pause or justification for delaying reforms."

The committee further advised that any extension should serve as a catalyst for accelerating reforms and implementing smooth transition measures, particularly those aimed at strengthening productive capacities, promoting economic diversification and preparing the private sector for graduation.

Bangladesh has secured about $3.11 billion in emergency budget support from four development partners, including the World Bank and the Asian Development Bank, this month to cushion the economic fallout from the US and Israel’s war on Iran.

Officials said the assistance, equivalent to about Tk 38,132 crore at the prevailing exchange rate, would help ease budgetary pressures, strengthen foreign exchange reserves and finance higher import costs stemming from the conflict.
The WB approved $450 million on June 24 to support banking sector reforms. Yesterday, it approved another $1.1 billion for food security and energy-related emergency financing, bringing its total budget support this month to $1.54 billion.Earlier, the ADB approved $1 billion, the Japan International Cooperation Agency (JICA) provided $314 million, and the Asian Infrastructure Investment Bank (AIIB) cleared $250 million.The war in the Middle East broke shortly after the current government assumed office in February, sending global prices of fuel, liquefied natural gas, fertiliser and other essential commodities sharply higher while disrupting supplies.International financial institutions, including the IMF, WB and ADB, warned that import-dependent economies such as Bangladesh would face mounting external pressures.In response, the government formed a committee in March to assess the likely economic impact of the conflict. Based on its findings, Bangladesh sought emergency budget support from development partners.

The finance ministry prepared a position paper in this regard, requesting an additional $3 billion in rapid-disbursing assistance to address urgent balance-of-payments needs and growing budgetary pressures during the final four months of FY2025-26.The paper described the Middle East conflict as an external and temporary terms-of-trade shock that had sharply increased the country’s import bills for fuel, LNG, fertiliser and food, while adding pressure on subsidies and social protection spending.The war created a “time-critical external financing need that cannot be met prudently through rapid reserve drawdown or disruptive import compression”, the paper said.It estimated that Bangladesh would require an additional Tk 385.42 billion (around $3.2 billion) in subsidies between March and June.The ministry also noted that foreign exchange reserves had fallen from $30.36 billion at the end of February to $29.39 billion by March 25 under the IMF’s balance of payments methodology, reflecting tighter external financing conditions.

According to the paper, the emergency financing would help preserve reserves while ensuring continued imports of fuel, LNG, fertiliser and food, create fiscal space for targeted and time-bound support, and reduce the risk of a disorderly adjustment.

The government also pledged to use existing public financial management systems and ensure transparent reporting on the use of the funds and related emergency spending.

The paper said any price-smoothing measures and subsidies supported by the financing would be temporary, progressively better targeted, and implemented alongside continued reforms to strengthen revenue mobilisation, prioritise public spending and improve the foreign exchange market.

Bangladesh’s foreign exchange reserves stood at $31.53 billion under the IMF methodology on June 25.

Announcing the latest $1.1 billion package yesterday, the WB said in a statement that the financing would support two projects aimed at helping Bangladesh cope with fertiliser and fuel price volatility, strengthen food security and improve emergency response capacity.

The package includes $300 million for food security and $713 million under a contingent emergency response component to finance quick-disbursing expenditures during crises.

The emergency financing will support cash transfers and livelihood assistance for affected households and micro, small and medium-sized enterprises (MSMEs), helping stabilise incomes and protect jobs.

It will also finance fuel and energy supplies needed to maintain essential services, including food distribution, healthcare, electricity and water supply, the WB said.

The funds under the emergency response component are expected to be disbursed by June 30.

Jean Pesme, WB country director for Bangladesh and Bhutan, said in the statement that rising food, fertiliser and fuel prices, combined with tighter fiscal conditions, had hit small farmers and vulnerable households the hardest.

“The World Bank has stepped up with immediate support to help Bangladesh mitigate this impact, ensure fertiliser supply for rice production, protect households, jobs and livelihoods, and maintain essential services,” he said.

The $300 million food security project will finance imports of 6 lakh tonnes of fertiliser, including 5 lakh tonnes of urea, enough to support rice cultivation on about 1.4 million hectares during the Aman (July-October 2026) and Boro (October 2026-April 2027) seasons.

Bangladesh imports more than 85 percent of its fertiliser requirements.

Souleymane Coulibaly, WB lead economist and task team leader, said the Aman and Boro seasons account for about 90 percent of the country’s annual rice production.

“Any disruption in fertiliser supply would not only threaten food security, but it would also deepen poverty and cost jobs,” he said.

Lesley Jeanne Yu Cordero, WB lead disaster risk management specialist and task team leader, said the project would repurpose unutilised financing from existing projects to channel resources quickly to the areas of greatest need.

Bangladesh's insurance sector is facing deep-rooted structural weaknesses, weak governance and declining public confidence, prompting calls from policymakers and industry leaders for stronger regulation, wider insurance coverage and comprehensive reforms.

The issues were highlighted at a seminar titled "Challenges, Prospects and the Way Forward for Bangladesh's Insurance Sector" organised by the Insurance Reporters Forum (IRF) today (27 June).

Speaking at the event, Prime Minister's Adviser on Finance and Planning Rashed Al Mahmud Titumir said many insurance companies lack strong asset management and investment capabilities, with the life insurance segment facing particularly serious challenges.

He stressed the need to expand agricultural and health insurance, noting that despite Bangladesh's vulnerability to natural disasters, crop insurance remains underdeveloped while health insurance coverage is largely confined to higher-income groups and salaried employees.

Titumir also called for greater use of technology to improve customer services and operational efficiency, saying weak regulatory oversight, poor accountability and declining public trust have become major obstacles to the industry's growth.

"The insurance sector needs a strong, effective and market-friendly regulatory framework to ensure accountability, protect policyholders and expand insurance coverage," he said.

Addressing the seminar, Insurance Development and Regulatory Authority (IDRA) Chairman Mir Nadia Nivin said restoring policyholders' confidence, establishing insurance as a major source of long-term investment and strengthening institutional capacity would be the regulator's three key reform priorities.

He said settling around Tk7,000 crore in outstanding insurance claims is IDRA's immediate priority.

The regulator will work with individual insurance companies to identify financial and operational weaknesses, recover trapped funds, facilitate asset sales where necessary and explore other measures to clear pending claims.

"If a significant liability remains after exhausting all available options, the government may be approached for a one-time bailout package," Nivin said, adding that insurers and the regulator must first complete their own reform initiatives before seeking government assistance.

He also announced plans to expand microinsurance through microfinance institutions, develop a regulatory framework for Islamic insurance (Takaful) and strengthen insurance education to build a skilled workforce.

Bangladesh Insurance Association President Saeed Ahmed, MP, said the insurance regulator should remain independent of business interests and called for expanding mandatory motor insurance and introducing new insurance products for emerging sectors.

Bangladesh Insurance Forum President BM Yusuf Ali said coordinated efforts by the government, regulator and insurance companies are essential to modernise the industry and make it more transparent and customer-friendly.

Professor Dr Md Shahidul Islam Jahid, chairman of the Department of Banking and Insurance at the University of Dhaka, identified weak regulation, poor governance and a short-term profit mentality as the sector's main challenges, while emphasising the need to expand agricultural and climate-risk insurance.

Zenith Islami Life Insurance Managing Director SM Nuruzzaman said the life insurance industry faces greater challenges than the general insurance sector and called for easier asset disposal procedures and improved access to bank financing.

Presenting the keynote paper, Monir Hossain said modernising the insurance industry, strengthening governance, accelerating digitalisation and ensuring customer-centric services are essential to support Bangladesh's growing economy.

Listed conglomerate Beximco Limited has seen its share price collapse in the wake of the Bangladesh Securities and Exchange Commission's (BSEC) decision to remove its long-standing floor price, dealing massive losses to investors and erasing thousands of crores of taka in market value.

The BSEC allowed the stock to resume normal trading on 9 June, ending an extended period during which it had been locked at a floor price. Since then, Beximco shares have nosedived 74.20% across just 13 trading sessions, gutting approximately Tk7,706 crore from its market capitalisation.

According to data from the Dhaka Stock Exchange (DSE), Beximco shares closed at Tk28.40 today (25 June), down from Tk110.10 before the floor price was lifted, a loss of Tk81.70 per share over the period.

Market analysts said the prolonged floor price had created a significant gap between the stock's artificially maintained value and its actual market demand. Once the restriction was removed, the market quickly adjusted to reflect the stock's perceived fair value, triggering sustained selling pressure.

Over the past 13 trading sessions, approximately 2.2 million shares changed hands, including nearly 2 million in the last four sessions alone. However, only around 330,000 shares were traded today. With sellers significantly outnumbering buyers, the stock has remained pinned near its daily lower limit.

The sharp fall has also triggered a dramatic erosion in the company's market capitalisation. Before the floor price was lifted, Beximco's market value stood at around Tk10,385 crore. It has since declined to approximately Tk2,678 crore, a loss of nearly Tk7,706 crore in under three weeks.

Market participants said shareholders have borne the brunt of the decline, particularly retail investors, who collectively hold more than one-third of the company's outstanding shares.

The sharp fall has also led to a dramatic erosion in the company's market capitalisation. Before the withdrawal of the floor price, Beximco's market value stood at around Tk10,385 crore. It has now declined to approximately Tk2,678 crore, resulting in a loss of nearly Tk7,706 crore in market value within less than three weeks.

Market participants said shareholders have been the biggest casualties of the decline, particularly retail investors who collectively hold more than one-third of the company's outstanding shares.

Selling pressure emerged immediately after the floor price was removed. Large volumes of sell orders entered the market, but a lack of buyers limited actual transactions and accelerated the price decline.

Senior officials of several brokerage houses told The Business Standard that many investors had been unable to sell their holdings for years while the stock remained under the floor price mechanism.

"Investors finally got the opportunity to exit after the floor price was lifted. However, the absence of buyers has caused the price to fall rapidly," said one brokerage executive.

Conversations with investors revealed that many are willing to accept significant losses simply to free up capital and redeploy it elsewhere.

Abu Asad, an investor, told TBS that while he can now sell his shares, the price has fallen so sharply that exiting means taking a substantial loss.

Many investors are reportedly willing to absorb heavy losses but remain unable to sell due to a lack of buying interest. Some have criticised the regulator for not lifting the floor price earlier, alongside other companies, arguing that market conditions were more favourable at the time and that the delay ultimately deepened losses for retail investors. The floor price mechanism was first introduced on 19 March 2020 to shield the stock market from the fallout of the Covid-19 pandemic. While the restriction was gradually lifted for most listed companies, Beximco and Islami Bank Bangladesh PLC remained subject to it for an extended period.

On 8 June, BSEC decided to remove the floor prices of both Beximco and Islami Bank, allowing their shares to trade freely from the following day. The regulator said the move was aimed at restoring normal price discovery and improving market liquidity.

However, Beximco immediately came under intense selling pressure, resulting in significant losses for investors.

Analysts attribute the decline to several factors, including prolonged uncertainty surrounding the company, concerns about its business operations, discussions regarding debt and financial liabilities, and the adjustment of a share price that had remained artificially fixed for years.

Despite the sharp decline, some investors see the situation as an opportunity. They argue that shareholders who had been trapped in the stock can now reallocate their investments elsewhere, though most retail investors have already suffered substantial capital losses.

According to the company's shareholding structure as of May 2026, sponsors and directors hold 33.11% of Beximco's shares, institutional investors 32.59%, foreign investors 0.94%, and general investors 33.36%.

With more than one-third of the company's shares in the hands of retail investors, the collapse in share price has directly affected a large number of small shareholders.

Listed on the stock market in 1995, Beximco is the flagship company of the Beximco Group, one of Bangladesh's largest business groups. The company has a paid-up capital of approximately Tk943 crore and around 94.32 crore outstanding shares. Its industrial facilities are located in Kashimpur, Gazipur.

Market observers said the stock's eventual stabilisation will depend on the company's future business prospects, financial restructuring efforts, investor confidence, and the return of buying interest.

According to them, Beximco is now undergoing a genuine price discovery process after years under the floor price regime. However, that adjustment has already erased thousands of crores of taka in market value and inflicted heavy losses on a vast number of investors.

A tax relief measure on mobile phone imports is set to expire next week with no extension in the proposed budget, stoking fears of further grey market expansion as the National Equipment Identity Register (NEIR) remains unimplemented.

Grey market handsets already account for more than 60 percent of Bangladesh’s smartphone market, according to the Mobile Phone Industry Owners’ Association of Bangladesh, depriving the government of tax revenue and undercutting legitimate importers and local assemblers.
Industry insiders fear the withdrawal of the tax break without implementing NEIR could undermine efforts to curb illegal handset imports.The tax relief was introduced on January 13 after protests by mobile phone importers against the government’s plan to roll out NEIR. During the unrest, roads were blocked, and installations at the Bangladesh Telecommunication Regulatory Commission (BTRC) office were vandalised.To ease tensions, customs duty on imported finished handsets was cut to 10 percent from 25 percent, bringing total tax incidence down to 43.43 percent from 61.80 percent. Duty on components and raw materials for local assemblers was also lowered, to 5 percent from 10 percent.“The tax reduction was introduced to support the transition toward NEIR implementation,” an official of the National Board of Revenue told The Daily Star, requesting anonymity. “If NEIR is implemented, the tax cut may be reconsidered.”NEIR identifies and blocks stolen, cloned or unauthorised devices using each handset’s unique 15-digit IMEI code. It remained stalled under the interim government and has made no progress under the BNP-led administration, which took office in February.

BTRC Chairman Md Emdad ul Bari said the regulator plans to raise the tax issue with the government, as lower taxation remains important for controlling the grey market.

On the stalled rollout, he said implementation must be gradual, given the technical complexity involved. “This is not something that can be enforced overnight. It requires technical readiness, market alignment, and consumer awareness.”

On whether prices would rise once the relief expires, Bari said the impact may not be immediate, noting they did not fall significantly when taxes were cut in January.

“The market depends on multiple factors, including imports, grey market activity, local manufacturing, and assembly. So the discontinuation of the tax reduction may not immediately affect retail prices,” he said.

The NEIR project has been delayed for years. BTRC signed an agreement with Synesis-Radisson-Computer World for the system in November 2020 at a cost of Tk 29 crore, with a trial run beginning in July 2021.

During the trial, authorities found millions of phones in use were unauthorised and that hundreds of feature phones shared identical IMEI numbers -- complications that repeatedly pushed back full enforcement.

Mohammed Mesbah Uddin, chief marketing officer of Fair Group, which is preparing to resume Samsung handset production this year, said NEIR is now critical for local manufacturing.

“To protect investors, support local manufacturing, and curb illegal imports, NEIR implementation is no longer optional -- it is necessary,” he said.

The Dhaka Stock Exchange (DSE) closed the week on a mixed note today (25 June), with the benchmark DSEX index posting a net decline of 9 points over five trading sessions.

The market gained ground in three of the five sessions, accumulating 98.62 points, but losses of 107.19 points in the remaining two days proved heavier, dragging the index into negative territory for the week.

Stocks extended their rally into a third consecutive session yesterday, with the DSEX rising 36 points as turnover climbed 18% to Tk1,110.74 crore.

Trading opened on a positive note at 10am, with the benchmark indices advancing from the outset as a majority of stocks gained in value. The upward momentum held throughout the session, sustaining gains until the market closed at 2pm. Of the 395 issues traded, 273 advanced, 68 declined, and 54 remained unchanged.

Pragati Insurance led the gainers, with its share price rising 9.90% to Tk83.2. Sonargaon Textile followed with a 9.58% gain to Tk96, while Green Delta Mutual Fund added 8.57% to close at Tk3.8.

On the losing side, Beximco Ltd topped the decliners, shedding 9.84% to Tk28.4. International Leasing and Premier Leasing both fell 8.33%, closing at Tk1.1 and Tk1.2 respectively.

EBL Securities, in its daily market commentary, said the benchmark index ended the week marginally lower despite a late recovery, as early-week profit-taking following the post-budget rally outweighed a subsequent rebound driven by bargain hunting in undervalued stocks.

The brokerage noted that the market opened on a subdued note, with investors locking in gains from recently appreciated stocks amid uncertainty over near-term policy direction.

Momentum returned from midweek, however, as bargain hunters moved in to accumulate equities, a trend supported by the Finance Minister's reaffirmation of the government's commitment to long-term capital market development.

The recovery extended through the latter part of the week, aided by easing concerns over the Strait of Hormuz and expectations of market-friendly policy developments, allowing the index to claw back most of its earlier losses. The appeal of tax rebate benefits also encouraged fresh investor exposure to the capital market, the brokerage added.

National Housing Finance PLC has recommended a 10% cash dividend for the year ended 31 December 2025, maintaining the same payout as the previous year despite ongoing challenges in Bangladesh's non-bank financial institution (NBFI) sector.

The decision was approved at a board meeting held today (24 June), according to a price-sensitive information (PSI) disclosure filed with the stock exchanges.

The company's annual general meeting (AGM) will be held virtually on 15 September at 12pm to seek shareholder approval for the dividend, while the record date has been fixed for 23 July.

Shares of the company rose 1.08% to Tk28.10 on the Dhaka Stock Exchange yesterday.

National Housing reported a significant improvement in profitability in 2025. Earnings per share (EPS) increased to Tk0.74 from Tk0.02 (restated) a year earlier.

Its financial position also strengthened, with net asset value (NAV) per share rising to Tk17.06 from Tk16.32 (restated). Net operating cash flow per share (NOCFPS) turned positive at Tk6.89, compared with a negative Tk19.70 (restated) in 2024.

Analysts said the turnaround in earnings and cash flow reflects an improvement in the company's core operations and financial health at a time when many NBFIs continue to face liquidity pressures, higher funding costs and slower credit growth.

The company also disclosed its first-quarter results for 2026. During the January-March period, EPS stood at Tk0.23, slightly higher than Tk0.22 (restated) in the corresponding quarter of the previous year.

However, NOCFPS declined to Tk4.77 from Tk8.61 (restated) over the same period. The company attributed the drop to lower customer deposits, which reduced operating cash inflows.

Despite the decline in cash flow, NAV per share increased further to Tk17.29 as of 31 March 2026, up from Tk17.06 at the end of December 2025.

Established in 1998, National Housing Finance is a specialised housing finance institution that provides loans for houses, apartments and residential plots. The company has also diversified into deposit mobilisation, SME financing, lease financing and project financing, helping broaden its revenue base beyond traditional mortgage lending.

The latest financial results show improvements in the company's profitability, asset base and cash flow position, while it maintained a stable cash dividend for shareholders. Sustaining earnings growth and strengthening deposit mobilisation are expected to remain important factors for the company's future performance.

The Dhaka Stock Exchange (DSE) extended its upward momentum for a second consecutive session today (24 June), as renewed buying interest in undervalued stocks helped the benchmark index close higher despite early selling pressure.

The DSEX, the prime index of the bourse, gained 11 points to settle at 5,616, while the blue-chip DS30 index edged up to 2,127.

Market breadth remained positive, with 182 issues advancing against 150 decliners, while 65 securities remained unchanged. Turnover also saw a notable increase, rising 14% to Tk940 crore, indicating improved participation from investors.

According to EBL Securities, the market maintained its positive trajectory as investors continued to accumulate fundamentally strong yet undervalued stocks amid expectations of market-friendly developments. Easing concerns over global shipping disruptions, particularly in the Strait of Hormuz, also contributed to a more optimistic market sentiment.

However, the session was not without volatility. The market faced selling pressure from the outset, with cautious investors booking profits. Sellers dominated trading until mid-session, but a resurgence of buying interest in the latter half helped the market recover and close in the green, reflecting growing confidence in near-term prospects.

Sector-wise, engineering stocks led turnover, accounting for 14% of total transactions, followed by pharmaceuticals at 13.8% and general insurance at 11.4%.

In terms of performance, financial institutions, IT, and mutual funds posted the highest gains, while miscellaneous, ceramic, and paper sectors faced corrections.

Among individual stocks, Beximco Pharmaceuticals topped the turnover chart, followed by Summit Alliance Port and BRAC Bank.

Nahee Aluminum, Saif Powertec, and Regent Textile emerged as top gainers, while Beximco Limited, International Leasing, and Peoples Leasing led the losers.