The Indian rupee ended largely unchanged against the dollar after a choppy session on Friday, as weakness in regional currencies largely offset the unwinding of long dollar positions, but the currency posted its best week in the last 11 on debt inflows. This was also the fourth weekly gain in the last five weeks.

The rupee climbed to 94.21 early in the session as long dollar positions were unwound, but surrendered gains later as the dollar strengthened and index-rebalancing outflows hit the currency. It ended little changed at 94.32 per dollar.

For the week, the rupee rose 0.83 percent, marking its best performance since week ended April 3.

“The recent RBI measures together with favorable oil prices on account of de-escalation of Middle East concerns kept the local unit in positive territory even after sizeable dollar strength today,” said Dhaval Shah, founder and managing director, De-Risk Forex Consultancy. “This suggests the bias for rupee has changed and we continue with our previous forecast of 93.50.”

The rupee has been on a rising trend after the Reserve Bank of India announced dollar-attracting measures two weeks ago.

“RBI absorbing hedging cost to attract foreign currency deposits and support external borrowing with the concessional FX facility appear most effective in the near term to lend support to the rupee,” said Clifford Lau, hard- and local-currency portfolio manager on the emerging markets debt team at William Blair Investment Management.

Robust foreign inflows into Indian government securities and a slump in oil prices since then have also worked in favour of the local currency, but the one-way move was challenged by a resurgent dollar, an uptick in oil and renewed US rate-hike expectations on Friday.

The Fed’s latest policy meeting, the first under new Chair Kevin Warsh, revived expectations of further rate increases and drove the dollar index to a one-year high. Brent crude inched up after US Vice President JD Vance withdrew from a planned meeting with Iranian negotiators on Friday to begin discussions on implementing the 14-point agreement

Amid mounting fiscal pressure and growing development needs the government has embarked on a medium-term reform agenda aimed at making every taka of public spending count while strengthening revenue collection and safeguarding debt sustainability.
FE

The strategy outlined in the FY2026-27 national budget seeks to improve the quality and efficiency of public expenditure, raise the country’s revenue base, and reduce reliance on debt-driven growth as Bangladesh navigates a challenging economic environment marked by inflationary pressures and global uncertainties.

At the heart of the reform agenda is a strategic expenditure framework designed to ensure that public spending is aligned with national development priorities and delivers maximum economic and social returns.

Priority sectors include infrastructure, education, healthcare, energy, agriculture and employment-generating activities, according to budget document.

It also states that public investment in education and healthcare will be gradually increased to 5 per cent over time.

Future development projects will undergo economic appraisal, cost-benefit analysis and implementation-readiness assessments to ensure value for money and maximise development impact.

The budget document notes that the government intends to improve expenditure efficiency through the rationalisation of non-priority spending and stronger fiscal discipline across public institutions.

Subsidy programmes are expected to become more targeted and efficient so that benefits reach intended recipients while limiting fiscal pressures. Support for agriculture, food security and energy supply will continue, although inefficient subsidy arrangements will be reviewed and reformed, according to the document.

The document also highlighted reforms aimed at making social protection programmes more targeted, inclusive and effective through greater use of technology, digital beneficiary databases and enhanced monitoring systems.

Technology-based systems in public procurement, project implementation and budget management are also expected to be strengthened to improve transparency, accountability and efficiency, it added.

Bangladesh’s revenue-to-GDP ratio currently stands at around 8 per cent, while the tax-to-GDP ratio is about 6.8 per cent.

The government aims to raise these ratios to 11 per cent and 9.6 per cent respectively by FY2030-31 through policy and administrative reforms.

The document said that the government seeks to improve the country’s debt sustainability and restore Bangladesh’s debt risk rating from the current “moderate” category to a “low” risk category through stronger revenue mobilisation, sustainable budget deficits and modernised debt management.

The government intends to reduce dependence on debt-financed growth and promote production, employment and private investment as key drivers of long-term economic development, it added.

For FY2026-27, the government proposed a record public expenditure programme of Tk 9.38 lakh crore, marking an increase of about 19 percent from the original Tk 7.90 lakh crore budget of the previous fiscal year.

The expansion reflects the government’s strategy to stimulate economic recovery, strengthen public services and accelerate infrastructure development amid ongoing fiscal and inflationary pressures.

Total public spending is estimated at around 13.7 percent of GDP, up from 12.7 percent in FY2025-26, indicating a more expansionary fiscal stance.

Of the total outlay, the Annual Development Programme (ADP) has been set at Tk 3 lakh crore, a 30 percent increase over the previous year’s allocation, with Tk 1.90 lakh crore expected from domestic resources and Tk 1.10 lakh crore from foreign loans and grants.

The government prioritised investment in transport and communication networks, power and energy, education, healthcare, agriculture, employment generation and social protection programmes to enhance productivity and support long-term growth.

Revenue collection has been targeted at Tk 6.95 lakh crore, leaving a budget deficit of roughly Tk 2.43 lakh crore, which will be financed through domestic and external borrowing.

The budget also placed emphasis on improving expenditure efficiency through a strategic expenditure framework, under which major spending decisions will be assessed based on their economic and social returns.

According to budget documents, non-development expenditure stands at around Tk 6.38 lakh crore, reflecting significant commitments to salaries, pensions, subsidies, interest payments and social safety net programmes.

The increased spending is expected to support the government’s growth target of 6.5 percent and inflation target of 7.5 percent while advancing reforms aimed at modernising infrastructure, strengthening human capital and fostering inclusive economic development across the country.

Bangladesh will strongly place its desire to join the Regional Comprehensive Economic Partnership (RCEP), the world's largest trade bloc, as Prime Minister Tarique Rahman begins his twin visit to Malaysia and China, starting with engagements in Southeast Asian country Malaysia focused on broader cooperation in trade, investment, energy, and the labour market.

"Bangladesh's bid to become a 'Sectoral Dialogue Partner' of Asean [Association of Southeast Asian Nations] and join the 'Regional Comprehensive Economic Partnership' will be strongly highlighted," Foreign Secretary Asad Alam Siam told reporters at the Ministry of Foreign Affairs during a media briefing today (20 June).

Additional Foreign Secretary (Public Diplomacy and Other Priority Matters) AKM Shahidul Karim and other senior ministry officials were present at the media briefing.

Besides, the foreign secretary said, a strong call will be made to Asean member states including Malaysia to play a more active and effective role in the repatriation of forcibly displaced Myanmar citizens - the Rohingyas, he said.

Sectoral dialogue partnership offers Bangladesh a realistic and impactful pathway for engagement, a senior official told UNB, noting that Bangladesh has redoubled its efforts to achieve the status of Sectoral Dialogue Partner (SDP) with Asean.

The prime minister will pay an official visit to Malaysia on 21-22 June at the invitation of Malaysian Prime Minister Anwar Ibrahim.

Malaysian Prime Minister Anwar Ibrahim paid an official brief visit to Bangladesh on 4 October 2024, at the invitation of former interim government Chief Adviser Prof Muhammad Yunus.

During his visit, Prime Minister Tarique Rahman will lead a high-level delegation from Bangladesh that includes Foreign Minister Dr Khalilur Rahman, Adviser to the prime minister on Foreign Affairs Humaiun Kobir, Expatriates' Welfare and Overseas Employment Minister Ariful Haque Choudhury, Information and Broadcasting Minister Zahir Uddin Swapon and other senior government officials.

On the first day of the visit, the prime minister will be welcomed in Malaysia with a formal reception.

The next day (22 June), a private meeting will be held between the prime minister of Bangladesh and Malaysia at the prime minister's office in Putrajaya.

Immediately after the tête-à-tête (a private conversation between two persons), a bilateral meeting will be held between the high-level delegations led by the heads of government of both countries where bilateral issues of mutual interest will be discussed.

Discussions will be held on establishing greater cooperation between the two countries in various fields including trade and investment expansion, energy cooperation, the halal economy, the semiconductor industry, agriculture, education, and people-to-people contact.

In particular, the issues of recruiting new Bangladeshi workers in various sectors in Malaysia, recruiting more professionals, ensuring facilities and benefits for workers and developing the skills of Bangladeshi workers will be discussed with importance.

During this visit, one Memorandum of Understanding (MoU) on cultural cooperation is expected to be signed, said the Foreign Secretary.

In addition, a Terms of Reference is likely to be exchanged with Malaysia to initiate negotiations on a Free Trade Agreement (FTA).

Some other documents related to bilateral cooperation are under discussion. The prime ministers of the two countries will be present at the signing ceremony of the bilateral cooperation documents.

There is also a possibility of a meeting between the prime minister and potential investors in Malaysia.

The two prime ministers will hold a joint press conference, and the prime minister of Malaysia will host a luncheon in honour of his Bangladeshi counterpart.

"We believe that this visit will play a very important role in elevating the existing bilateral and economic relations with Malaysia to a new level," said the Foreign Secretary, noting that Dhaka is hopeful the visit will further strengthen bilateral relations based on mutual respect, trust, and cooperation between the two brotherly countries.

The prime minister is scheduled to leave for Kuala Lumpur tomorrow afternoon (21 June) and, from Kuala Lumpur, will leave for China on Monday afternoon (22 June).

The Foreign Secretary indicated that the delegation sizes for the prime minister's visits to Malaysia and China have been kept relatively small, comprising 27 and 28 members respectively. "We tried to keep it at a logical level," he said.

Recently, Bangladesh's national budget for the fiscal year 2026-27 was presented to the Jatiya Sangsad. Following it, public discussions have focused on issues such as: where the necessary financing for the budget will come from; how much scope there is for being frugal by cutting on expenditures; and how the obstacles to implementing the proposed initiatives can be overcome.

Furthermore, more than 100 days have already passed since the current government assumed office. From a geopolitical perspective, the government faces various global economic challenges while also confronting numerous domestic economic problems. Against this backdrop, a relevant question arises: what should Bangladesh do on its journey forward?

In the post-budget period, the government must focus on three key areas. The first is the reform of revenue collection. This requires increasing the tax-to-GDP ratio as well as widening the tax net and the tax base. Bangladesh currently relies more heavily on indirect taxes than direct taxes. As a result, the tax burden falls disproportionately on ordinary citizens, and government revenues become more volatile to global economic shocks. Bangladesh should, therefore, shift toward greater reliance on direct taxation.

In addition, the efficiency in tax collection must be improved. In this regard, there was a proposal to divide the National Board of Revenue into two units, assigning tax policy to one unit and tax administration to another. This proposed reform is yet to be implemented.

The second one is the reform of the structure and the process of government expenditure. Given the significant constraints on financing public spending in the current fiscal year, the government must carefully prioritise its expenditures. Both in fulfilling the electoral manifesto of the government and in selecting development projects, decisions must be made objectively regarding which initiatives deserve priority. Projects that are necessary and that directly contribute to productive economic activity should receive precedence. Large-scale mega projects should, for the time being, be deferred. For the time being, economic realities rather than political considerations should guide future government initiatives.

Third, project implementation processes must be reformed to ensure the swift execution of budget proposals. Traditionally, government programmes and projects have faced various obstacles – some arising from legal complexities, others from excessive procedural requirements and bureaucratic layers. As a result, projects are delayed and prolonged, while also creating opportunities for corruption. Reform across every stage of implementation should therefore be a government priority.

In the post-budget period, the government must focus on three types of challenges: lingering problems, deepening problems, and emerging problems. Among Bangladesh's lingering problems are poverty and deprivation, economic slowdown, unemployment, inflation, and inadequate investment. Poverty appears to have increased recently, and around 36 million people are currently living below the extreme poverty line.

Bangladesh's economic growth rate is currently just above 3%. Both agriculture and industry are experiencing sluggish growth. According to government data, around 3 million people are currently unemployed. Inflation has remained high for an extended period and shows little sign of declining. Domestic and foreign investment have also slowed noticeably.

In the coming years, the government must focus on an inclusive, pro-poor growth strategy, centred on employment-led growth. This requires greater emphasis on the agricultural sector. Human resource development is essential for achieving higher growth, which in turn requires increased investment in education and healthcare, as well as policies oriented toward human development.

To reduce inflation, structural reforms in market systems are necessary, alongside the creation of strategic reserves of essential commodities. In terms of investment, incentive-based economic policies alone are insufficient. Reforms are also needed in the investment environment, including infrastructure, political stability, law and order, and security.

Among the deepening problems are inequality, financial sector distress, the burden of foreign debt and subsidies, violence against women, and environmental degradation. Inequality has become a profound issue in Bangladesh, where the wealthiest 10% of the population own three-fifths of the nation's wealth, and the richest 1% control one-quarter of all wealth. Loan defaults in the banking sector amount to nearly Tk6 trillion. Thousands of crores of taka have been illicitly shipped abroad. Bangladesh's external debt currently stands at approximately $110 billion. In the last fiscal year, the government provided subsidies worth Tk109,000 crore across various sectors. Violence against women has reached a toxic level, not only curtailing women's economic empowerment but also threatening their very existence. Climate and environmental degradation are not merely environmental crises; they are also development challenges.

There is no alternative to economic democratisation if inequality and disparity are to be reduced. Inequality exists not only in outcomes but also in opportunities. Therefore, merely removing structural regulations within the economy is not sufficient; access to resources and opportunities must be ensured for poorer segments of society. In the financial sector, establishing economic discipline and a visible framework of transparency and accountability is essential.

Addressing defaulted loans may require a combination of legal action, loan restructuring, and other coordinated measures. Regarding foreign debt, Bangladesh could engage with international financial institutions, explore debt restructuring arrangements, and also seek financing opportunities from international capital markets.

Subsidies across various sectors should be rationalised and carefully evaluated. A phased roadmap for reducing subsidies should then be developed. At the same time, efficiency and productivity must be increased in order to lessen reliance on subsidies. The state has a unique role in promoting gender equality and women's empowerment. Achieving this requires government commitment and prioritisation, effective policies and law enforcement, and partnerships with families and society. Under no circumstances should violence against women be tolerated. A sustainable development strategy that integrates economic growth with environmental protection deserves government commitment and priority. Existing effective plans should be implemented without delay.

Among the emerging challenges are wars and conflicts arising from geopolitical shifts, global political instability, and the spread of "economic nationalism." As Bangladesh is part of the global economic system, issues such as the Ukraine war, the Covid-19 pandemic, and the recent Middle East war have negatively affected its energy situation, import-export trends, overseas employment and remittances, exchange rates, and foreign exchange reserves.

At the same time, the rise of economic nationalism means that many major powers and developed countries are adopting more inward-looking economic policies. This could create difficulties for Bangladesh in securing grants, loans, and trade preferences. Developed countries are increasingly favouring bilateral relations over multilateral arrangements with developing nations like Bangladesh, potentially depriving them of the benefits of multilateral cooperation.

To address these issues, the government must adopt forward-looking and proactive policies. For example, Bangladesh could establish strategic energy reserves, diversify energy import sources, develop alternative energy options, and improve energy efficiency. Likewise, in response to economic nationalism, Bangladesh may consider forming regional alliances with other developing countries to strengthen trade and economic cooperation.

Another emerging issue is Bangladesh's graduation from the category of Least Developed Countries to that of developing countries. Bangladesh has requested the United Nations to delay this graduation process by three years, and a decision is expected next month.

If the request is approved, Bangladesh must strengthen its capabilities and capacities over the next three years to ensure that no obstacles remain to graduation. This requires careful preparation. It should also be remembered that, after graduation, Bangladesh will lose certain international benefits such as grants, concessional loans, and preferential tariff treatment. Therefore, preparation is also needed for the post-graduation period. Bangladesh has already developed a strategy paper for this transition. What is now required is its effective and phased implementation. In light of a possible delayed graduation, a revised and clearly defined roadmap could be prepared.

Let me conclude by saying that Bangladesh will face many obstacles in the coming years due to both global and domestic factors. These challenges are complex, but they are not insurmountable. With commitment, goodwill, integrity, and strong leadership, the government can confront them and, through collective effort, find effective solutions.

Economists, business leaders and academics have questioned the realism of the proposed budget's revenue targets and growth assumptions, warning that stronger institutions, accountability and implementation capacity will be critical to achieving its objectives.
They also questioned whether increased allocations for agriculture, health, education and gender inclusion would translate into tangible outcomes without stronger institutions, accountability and monitoring mechanisms.

The issues were discussed during the latest episode of the Policy Research Institute Centre's (PPRC) flagship policy dialogue series Ajker Agenda, titled "PPRC Budget Analysis", held virtually on Friday and moderated by PPRC Executive Chairman Hossain Zillur Rahman.

The discussion brought together former National Board of Revenue (NBR) Chairman Muhammad Abdul Mazid, former President of BKMEA Md Fazlul Haque, former Vice-Chancellor of Bangladesh Agricultural University M A Sattar Mandal, ActionAid Bangladesh Country Director Farah Kabir, Dean of the Faculty of Social Sciences at the University of Dhaka Mohammad Mainul Islam, and former Country Representative of the Malala Fund Musharraf Tansen.Bangladesh economic report

Focusing on revenue mobilisation, fiscal accountability and NBR reforms, Muhammad Abdul Mazid questioned whether the government's ambitious revenue targets could be achieved without a stronger economic base and greater transparency within the tax administration.

He argued that revenue collection ultimately depends on economic activity and productive investment.

"Revenue ultimately comes from a functioning economy. If productive sectors and private enterprises receive the necessary support, revenue collection will naturally improve," he said, expressing concern about the pace and effectiveness of the proposed reforms within the revenue administration.

Examining the budget from the perspective of business competitiveness and implementation feasibility, Md Fazlul Haque observed that many of the government's projections appeared to be based on expectations of a rapid economic rebound.

While welcoming several business-friendly administrative measures, he stressed that sustainable recovery would require stability in the banking sector, uninterrupted energy supplies and further improvements in law and order.

"The budget appears to assume that the economy will recover quickly, but recovery requires time. Achieving the expected outcomes will depend on creating an environment where businesses have confidence to invest and expand," he said.Economic zone consulting

Turning to agriculture and rural livelihoods, Prof Dr M ASattar Mandal questioned whether the proposed measures adequately reflected the realities faced by millions of smallholder farmers across the country.

He noted that previous initiatives had often encountered difficulties in identifying genuine beneficiaries and ensuring effective implementation at the grassroots level.

While acknowledging the government's continued focus on agriculture, he argued that the budget lacked a comprehensive strategy for transforming the sector through innovation, mechanisation and technology adoption.

"Agriculture requires a comprehensive long-term strategy. Alongside supporting farmers, we must also focus on modernisation, technological adaptation and the transition towards smart agriculture," he said.

Assessing the budget from the perspectives of gender equality, climate vulnerability and economic inclusion, Farah Kabir questioned whether increased allocations under gender-related programmes would generate meaningful opportunities for women and vulnerable communities.

She emphasised the need for greater investment in skills development, care services and access to emerging economic sectors.

"The real challenge is ensuring that budget allocations create opportunities. Women need access to skills, new sectors and support systems that enable meaningful economic participation," she said.

On healthcare financing and demographic challenges, Prof Dr Mohammad Mainul Islam examined whether the proposed allocations were sufficient to address Bangladesh's evolving health needs.Personal finance tips

He highlighted the importance of family planning within the broader public health agenda and expressed concern that dedicated allocations for this area remained insufficiently visible despite mounting demographic pressures.

"Increasing health spending is important, but ensuring effective utilisation is equally critical. Population health and family planning require sustained attention if Bangladesh is to maintain its development gains," he said.

Despite a significant increase in education spending, Musharraf Tansen questioned whether additional allocations would lead to measurable improvements in learning outcomes.

Referring to persistent deficiencies in literacy and numeracy among schoolchildren, he argued that the central challenge lay not in the volume of expenditure but in the effectiveness of its utilisation.

"The real challenge is not the size of the budget but how it is used. Unless investments improve learning outcomes through better teaching and effective implementation, increased allocations may not deliver the expected results," he said.

Concluding the discussion, Hossain Zillur Rahman stressed that the success of the FY2026-27 budget would depend less on policy declarations and more on implementation performance.Bangladesh economic report

"The real test of any budget lies not in its promises but in its implementation. Strong institutions, accountability and evidence-based policymaking will determine whether these ambitions deliver meaningful benefits for citizens," he said.

He further argued that budget implementation should be accompanied by a structured three-month monitoring framework within the country's governance system to ensure timely execution and corrective action where necessary.

The economist also highlighted the need to address persistent inequalities in peripheral regions, improve doctor-patient relationships in primary healthcare services, and recognise that technology alone cannot overcome deep-rooted weaknesses in the education system.

"All our ambitions are undermined by three institutional diseases-corruption, implementation delays and failures, and institutional waste arising from the proliferation of unnecessary offices and projects," he observed.

The discussion underscored a common concern among participants that while the proposed budget contains ambitious targets and expanded allocations across several priority sectors, its success will ultimately hinge on effective implementation, institutional reform and rigorous monitoring.

Without addressing longstanding governance weaknesses, they warned, the gap between budgetary commitments and real-world outcomes may continue to persist.

Leaders of the Chittagong Chamber of Commerce and Industry (CCCI) have called for greater inclusion of Bangladeshi products on global e-commerce platforms, including Alibaba.com, to help diversify the country's export basket beyond the ready-made garments (RMG) sector.

The call came during a courtesy meeting between the chamber leaders and a delegation from Alibaba.com at the World Trade Centre in Chattogram today (20 June), according to a press release.

CCCI President Mohammad Amirul Haque urged Alibaba to onboard a broader range of Bangladeshi products to its global marketplace.

He said Bangladesh is entering a new phase of economic transformation, supported by policy measures proposed in the national budget for FY2026-27, including bonded warehouse facilities and free trade zones aimed at enhancing export competitiveness.

Referring to the recently approved China Specialised Economic Zone in Anwara, Chattogram, Amirul said such initiatives could emerge as important hubs for export-oriented manufacturing and services.

"Given Alibaba's global reach, there is a strong opportunity to connect Bangladeshi producers directly with international buyers," he said, adding that stronger business-to-business ties between Bangladesh and China are crucial for expanding bilateral trade.

He also assured Alibaba of the chamber's full cooperation in expanding e-commerce, training and SME development activities in Bangladesh.

Alibaba's General Manager for Pakistan and Bangladesh, Gaoya Sammer, said the company currently serves more than 50 million active buyers globally and connects over 200 million suppliers offering more than two billion products.

He said Alibaba is working to strengthen its presence in Bangladesh, particularly by promoting export diversification beyond the garment sector.

"There is significant potential in agro-products and seafood from Chattogram, which already enjoy strong demand in international markets," he said.

Sammer added that Alibaba is also focusing on integrating SMEs and entrepreneurs into its platform through training and capacity-building programmes.

He noted that a dedicated Alibaba centre has already been established in Chattogram to provide exporters with training and information on trade diversification.

Former CCCI president Amir Humayun Mahmud Chowdhury said Bangladesh's e-commerce sector remains at a relatively early stage and requires structured training and institutional support to grow.

He said platforms such as Alibaba could play an important role in expanding export opportunities and equipping young entrepreneurs with the skills needed to participate in digital trade.

Other chamber leaders and representatives from Alibaba also attended the meeting.

Nine directors of Prime Bank PLC have announced plans to acquire shares worth about Tk31 crore from a sponsor, who intends to sell just over 1 crore shares through the block market.

According to a disclosure filed with the Dhaka Stock Exchange on 14 June, Mohammad Nader Khan plans to offload 1.01 crore shares from his holdings in the bank. At the current market price, the stake is valued at approximately Tk30.84 crore, and the transaction is scheduled to be completed through the block market within the next 30 working days.

Following the disclosure, the bank's nine directors announced on Wednesday (17 June) that they would acquire the shares being sold by Nader Khan.

Among the individual directors, Nafis Sikder will purchase the largest allocation of 12 lakh shares. Azam J Chowdhury will acquire 9.90 lakh shares, while Qazi Sirajul Islam, Md Shahadat Hossain, SM Tamzid and Tanvir A Chowdhury will each purchase around 9.7 lakh shares.

Among the corporate directors, MJL Bangladesh will acquire the largest portion with 19.46 lakh shares. EC Holdings will purchase 11.60 lakh shares, while Uniglory Cycle Industries will buy 9.78 lakh shares.

This reshuffle among the sponsors and directors comes at a time when the bank is enjoying a period of significant financial growth and stability.

Prime Bank recently reported a robust financial performance for the 2025 calendar year, posting a consolidated net profit of Tk910 crore. This represents a 24% increase from the Tk732 crore recorded in the previous year, reflecting the bank's improved operational efficiency and successful lending strategies. Consequently, the bank's earnings per share (EPS) rose to Tk7.84 in 2025 from Tk6.31 a year earlier.

The bank's balance sheet remains one of the strongest in the country's banking sector, with total assets reaching Tk64,890 crore as of December 2025. Its capital adequacy is also noteworthy, with a Capital to Risk-Weighted Assets Ratio (CRAR) of 18.07%, a figure that stands as one of the highest in Bangladesh.

Additionally, the bank reported a solid net asset value per share of Tk40 and a net operating cash flow per share of Tk58.07, indicating healthy liquidity.

To reward its investors for this record performance, the bank's board approved a 30% dividend for 2025 - comprising 25% cash and 5% stock - which was officially approved by shareholders at the Annual General Meeting held on 21 May.

China is stepping up scrutiny over exports of indium, leading some buyers to fear the niche metal, sought after for next-generation data centres, may be added to the export control regime that has become one of Beijing's most potent trade weapons.

China produces nearly 70% of the world's indium, a byproduct of zinc refining mostly used in displays and solder but also the raw material for making indium phosphide, used to make high-speed optical chips for AI data centres.

Beijing put indium phosphide on an export control list in February 2025 and the restrictions have become enough of a hurdle for next-generation data centres that the CEO of Nvidia-backed chipmaker Coherent travelled to Beijing with President Donald Trump in May to raise the issue.

While indium metal is not on the export control list, two buyers told Reuters about growing scrutiny over their purchases from Chinese customs. For the first time this year, a European buyer was asked to disclose information about end users, including where they were based.

A major buyer in North America said approvals had gone from same day to several days, which they attributed to more scrutiny of paperwork and described as "tense". This buyer had not been asked for extra information by customs.

China's Ministry of Commerce did not immediately respond to a request for comment on a public holiday.

All the buyers declined to be named owing to the sensitivity of the topic.

The extra due diligence is not uniform and two other buyers told Reuters they had heard of extra scrutiny but not faced it themselves. So far, Reuters has not identified any shipments that have been blocked.

Nonetheless there is some concern in the small industry that this is a prelude to tighter controls or the end-user disclosures which China, and other countries with export control regimes, use to chart global supply chains and chokepoints.

Indium has been identified as a potential vulnerability for the US, whose Defense Logistics Agency earlier this year released a request for proposals to stockpile up to 403 tonnes of the material over three years.

Another North American buyer said they suspected that the reporting requirements were "a precursor to restrictions or outright bans on exports."

The dollar rose to Tk123.10 today (17 June) as increased import payment demand and a decline in remittance-driven dollar supply put pressure on the foreign exchange market, according to senior officials at several commercial banks.

Bankers said several banks purchased dollars from remittance houses at rates ranging between Tk123 and Tk123.10 during the day. Similar rates were also observed in the interbank market.

A senior official of a private commercial bank told The Business Standard that the rise in the dollar rate was driven by two key factors.

"Payment pressure has increased, while dollar supply has fallen due to the unrest at Islami Bank," the official said.

According to bankers, Islami Bank Bangladesh is the country's largest remittance-collecting bank and typically supplies around 80% of its remittance dollars to the market. However, remittance inflows to the bank have declined somewhat since the beginning of the month amid ongoing unrest, reducing the overall supply of dollars in the market.

At the same time, banks are facing significant payment obligations for letters of credit (LCs) opened for various government imports, creating additional demand for foreign currency.

Despite the recent increase, senior banking officials expressed optimism that the dollar rate may ease in the coming days if supply conditions improve.

Meanwhile, Bangladesh Bank today verbally instructed banks not to purchase remittance dollars at rates exceeding Tk122.75, according to banking sector sources.

Economists, however, argue that the central bank should refrain from informal interventions aimed at influencing exchange rates and instead allow market forces to determine the value of the dollar.

Since July last year, Bangladesh Bank has been purchasing dollars from commercial banks as part of its foreign exchange management strategy, a practice that continues to date.

Nearly one in every two taka lent by the 10 banks among the country's lenders is now considered a risky asset, according to a new central bank report that highlights severe systemic deterioration in the country's banking sector.

The Bangladesh Bank's Financial Stability Report, published on Tuesday (16 June), shows that risky loans at the 10 banks accounted for 47.75% of total lending at the end of December 2025, up from 42.96% in 2024. The report, however, does not identify the specific banks included in the analysis.

Speaking to TBS, experts said the trend reflects long-standing weaknesses in loan governance and recovery practices in the banking sector.

They noted that influential business groups obtained large loans from multiple banks and subsequently failed to repay them on time, contributing to a build-up of non-performing assets over time.

Banking sector insiders said that in several cases, lending rules, including single borrower exposure limits, were not properly followed, particularly in relation to large industrial groups.

They alleged that some groups created shell companies with compliant documentation to access funds, while the ultimate beneficiaries of such loans were not always clearly identified.

They further said that in many cases, both bank boards and officials were aware of the true beneficiaries but did not carry out adequate due diligence.

Bankers said that a combination of regulatory weaknesses and political influence over time allowed certain business groups to accumulate large volumes of credit across multiple banks.

They added that some of these loans later turned non-performing as repayment obligations were not met.

Former Bangladesh Bank governor Ahsan H Mansur had previously said more than Tk1 lakh crore may have been withdrawn from several private banks under the control of a major business group during the previous political administration.

He also said additional borrowing from state-owned banks by Chattogram-based S Alam Group remained largely unpaid.

Oil prices rose more than 1 percent Wednesday after US President Donald Trump threatened ‌to resume bombing Iran if it didn’t “behave”, but remained near three-month lows as the International Energy Agency warned of excess supply next year.

Brent crude futures were up 93 cents, or around 1.2 percent, to $79.89 a barrel at ​1308 GMT, and US West Texas Intermediate gained 79 cents, or 1 percent, to $76.84. Both ​contracts hit their lowest since early March earlier in the session.
Trump said on Wednesday that a memorandum of understanding with Iran was not final, and that he could ​resume a bombing campaign if he did not like it or if Iran didn’t “behave”.

“(There’s) still a ​bit of uncertainty in terms of the US situation ... so it ... makes sense for oil to bounce back from these levels after staging what has been quite a sharp decline in the last few days,” said Fawad ​Razaqzada, market analyst at City Index and FOREX.com.

IEA SAYS INVENTORIES TO BE RESTOCKED IN NEXT ​FEW MONTHS

In its first look at 2027, the IEA said the oil market will enter a significant supply overhang, ‌with global supply set to surge by 8 million barrels per day and demand rising by just 2 million bpd.

In the near term, the agency said the Iran-U.S. deal should provide an opportunity to replenish depleted inventories or build new strategic reserves.

“Markets may be underpricing the depth of ​the supply glut coming ​online,” said Crispus Nyaga, research analyst at Empire FX.

The MoU, not yet public, extends by another 60 days a tenuous ceasefire agreed in April, to allow room for talks ​between the US and Iran toward a permanent truce.

Still, industry officials ​say a full return to pre-war production and refining levels is likely to take weeks, months or even years.

US crude stocks fell 8.3 million barrels in the week ended June 12, market sources said, citing American Petroleum ⁠Institute data.

This ​exceeded expectations for a draw of 4.6 million barrels, ​with official numbers due from the Energy Information Administration at 10:30 a.m. ET (1430 GMT) on Wednesday.

Bangladesh Bank says nearly Tk 11 trillion in loans from the banking sector are at risk or face some form of difficulty.

Regional business directory
FE
In its “Financial Stability Report 2025” report on loan data up to last December, the central bank says risky loans account for 59.73 percent of total loans disbursed.

The amount of non-performing loans has increased since last December, now amounting to Tk 5.88 trillion.

The amount of non-performing loans has gone up by Tk 314.87 billion in the span of three months, the report said, further increasing the amount of risky loans in the sector.

According to the report, by the end of 2025, risky loans in the banking sector had increased by Tk 3.31 trillion year-on-year. In 2024, the amount of risky loans had stood at approximately Tk 7.57 trillion, an increase of around Tk 2.6 trillion year-on-year.

Bangladesh Bank considers defaulted, written off, and rescheduled loans as risky.

The loan balance in the banking sector as of last December was around Tk 18.2 trillion. Of this, corporate loans accounted for 45.85 percent, the report said. Of total loans, 31.16 percent are large loans.

As a result of the increase in risky loans, the capital adequacy ratio and risky asset ratio have dropped year-on-year in December from 3 percent to 2.64 percent.

According to the 2025 estimate, the amount of risky loans in all scheduled banks in Bangladesh has increased by about 60 percent compared to the previous year to around Tk 10.88 trillion, higher than the proposed budget for the upcoming fiscal year.

Of this, the amount of defaulted loans is Tk 5.57 trillion, the amount of written-off loans is Tk 834.79 billion, and the amount of refinanced loans is Tk 4.47 trillion.

In 2025 alone, a record amount of loans – Tk 1.71 trillion – was refinanced. In the previous year, Tk 850 billion was refinanced.

Loans of Tk 1.82 trillion, which are under bans by the High Court, cannot be shown as non-performing.

During this period, the banking sector has been able to maintain only Tk 2.49 trillion of the required reserves for loan security, also known as loan provisioning, of Tk 4.41 trillion. This means the loan provisioning deficit is Tk 1.91 trillion.

Britain’s annual inflation rate was unchanged at 2.8 percent in May as higher petrol prices caused by the US-Iran war were offset by lower food costs, official data showed Wednesday.

The Consumer Prices Index level matched April’s reading, the Office for National Statistics (ONS) said, while an analysts’ consensus forecast had been for an increase to 3.0 percent.

“While the war in the Middle East pushes prices up globally, we have got the right economic plan and inflation has held steady,” finance minister Rachel Reeves said in response.

Even though the United States and Iran agreed this week to a deal to end the conflict, inflation could still rise in the coming months with energy costs remaining above pre-war levels.

The better-than-expected inflation data for May could meanwhile prove fruitless for the Labour government, which is facing a special vote Thursday expected to set in motion an attempt to oust Keir Starmer as prime minister.

Longtime Starmer critic Andy Burnham is hoping to win an election for a parliament seat in northwest England so that he can run for the Labour leadership, and the premiership.

The inflation data also comes before an interest rate decision by the Bank of England, which is expected to hold borrowing costs steady Thursday after energy prices tumbled in recent days thanks to the US-Iran deal.

The SME Foundation has signed agreements with three banks to disburse more than Tk45 crore in loans to micro, small and medium enterprises (MSMEs) under its Credit Wholesaling Programme.

The loans, to be provided from the foundation's revolving fund, will carry an interest rate of 8% in line with a new directive from the Finance Division.

In a separate initiative aimed at helping returnee migrant workers become entrepreneurs, loans will be distributed through Karmasangsthan Bank with support from the Bangladesh office of the International Labour Organization (ILO). These loans will carry an interest rate of 7%.

Entrepreneurs will be eligible for loans ranging from Tk1 lakh to Tk25 lakh. However, entrepreneurs in cottage, micro, small and medium enterprises engaged in agro-based industries and food processing will be able to access loans of up to Tk1 crore at a 9% interest rate.

The agreements were signed on Tuesday night at a hotel in the capital between the SME Foundation and its partner institutions – Mutual Trust Bank, Dhaka Bank and Karmasangsthan Bank.

The signing ceremony was chaired by Industries Secretary Abdoon Naser Khan, while Industries, Commerce, Textiles and Jute Adviser Khandaker Abdul Muqtadir attended as the chief guest.

Speaking at the event, Muqtadir said the initiative would create a sustainable pathway for transforming remittances into entrepreneurship, entrepreneurship into investment and investment into employment.

Under the programme guidelines, partner banks will be encouraged to provide collateral-free loans, with no collateral required for loans of up to Tk10 lakh. Borrowers will have up to four years to repay their loans, including a grace period of up to six months, subject to their relationship with the lending bank

Bangladesh Bank (BB) on Wednesday clarified its position on the banking sector’s non-performing loans (NPLs), rejecting media reports that claimed the country’s distressed loan ratio ranged between 45 percent and 60 percent.Bangladesh economic report

The central bank said such figures were based on technically flawed calculations and did not reflect the actual condition of the banking sector as presented in its annual Financial Stability Report (FSR) 2025, reports BSS.

According to the report, the official NPL ratio of the country’s banking sector stood at 10.10 percent as of December 31, 2025.

Bangladesh Bank said this audited and finalized figure remains the authoritative measure of the sector’s non-performing assets.

The central bank noted that some media reports had calculated so-called distressed loans by adding together classified or non-performing loans, rescheduled loans and written-off loans.

It described this method as an inappropriate and technically incorrect approach that led to inflated figures.

Bangladesh Bank further stated that there is no internationally recognized or standardized definition of “distressed loans” among global regulatory and policy-making institutions.

While the term is often used to describe loans that are not generating income or are not being serviced regularly, the aggregate calculation used in the reports does not conform to accepted regulatory or accounting practices.Personal finance e-book

Explaining its position, the central bank said rescheduled loans cannot be considered distressed because borrowers continue to make repayments under approved restructuring arrangements.

These loans remain active assets that generate cash flow for banks.

It also noted that written-off loans are maintained off-balance sheet in line with international practices and therefore cannot be added to active loan portfolios when assessing the current condition of the banking sector.

Bangladesh Bank warned that publication of unverified and technically inaccurate financial data could create negative perceptions about the country’s financial stability among domestic and international stakeholders, potentially affecting confidence in the economy.

The central bank urged media organisations to exercise greater caution in reporting financial sector data and to verify information with official sources to ensure accuracy and maintain public and investor confidence.

The Dhaka Stock Exchange (DSE) on Wednesday issued FIX (Financial Information Exchange) certification to three more brokerage houses, bringing them closer to launching their own Order Management Systems (OMS) through API connectivity with the exchange's Nasdaq matching engine.Personal finance e-book

The certificates were handed over at a ceremony by DSE Chief Financial Officer Md Abid Hossain Khan to representatives of GMF Securities Limited, Prime Islami Securities Limited, and Unicap Securities Limited.

Head of IT at GMF Securities Lubna Mahmud, CEO of Prime Islami Securities Md Rajib Hasan and Unicap Securities CEO Waliul Islam received the certificates on behalf of their organisations.

DSE Deputy General Manager Jisan Bin Mubarak and Assistant General Manager Kamrun Nahar, along with other senior officials, were present at the event.

With the latest batch, DSE has now certified a total of 61 brokerage houses under the FIX protocol. Of these, 53 have already gone live with their own OMS platforms, conducting trading operations via API integration with the exchange.

DSE had initiated the API-based Broker House Order Management System (BHOMS) programme in 2020. Following that, 85 brokerage houses applied to DSE seeking API connectivity with the Nasdaq matching engine to operate their proprietary order management systems.

Oil inventories held by OECD member countries fell in May to their lowest level since 1990 as governments drew down stocks to offset the blockage of Gulf crude shipments during the Middle East war, the International Energy Agency said Wednesday.

The drawdown since the start of the conflict has reached 163 million barrels in the Organisation for Economic Cooperation and Development club of wealthy countries, the IEA said in its monthly report.
“Despite the significant reductions in demand for crude oil and refined products, the buffers in the system continue to erode at a record pace,” the agency said.

To ease the burden from soaring oil prices due to Tehran’s effective closure of the Strait of Hormuz, the IEA organised coordinated stock releases of 400 million barrels to the global market, of which 252 million have been released as of June 12.

“The flow of emergency stocks is expected to decelerate somewhat in June and July,” the agency said, after a deal was announced this week to end the war that began on February 28 with US and Israeli strikes on Iran.

But the impact of high prices will weigh heavily on demand through this year, with an expected decline of 1.1 million barrels a day compared to 2025 levels.

“We see growth rebounding to 2 mb/d in 2027, as a normalisation of trade flows, lower oil prices and an improving economic outlook contribute to the recovery,” the IEA said.

Prime Minister Tarique Rahman has outlined a series of government plans in parliament to increase the country's tax-to-GDP ratio, including effective legal action against tax evasion, aiming to raise the ratio to 10% within five years and 15% by 2035.

The prime minister, who is in Moulvibazar on a visit, shared the plans in a written answer that was tabled in parliament today (17 June) as a response to a question from Munshiganj-1 MP Md Abdullah.

Abdullah had asked about plans to address Bangladesh's tax-to-GDP ratio, which currently stands between 7.3% and 8%, significantly lower than 23.1% of Nepal, which is a smaller economy.

In his reply, Tarique said the government has adopted various measures to increase the ratio, including the National Board of Revenue's Medium and Long-Term Revenue Strategy (MLTRS).

He said end-to-end digitalisation of the revenue division is underway, along with expansion of online tax deduction management, reduction of unnecessary tax exemptions and holidays, and simplification of tax laws.

The government is also analysing information from various institutions to determine tax risks, strengthening risk-based audits and investigations using sector-specific average indicators, and enriching the taxpayer database, he said.

He added that the government has introduced AI-based online services for taxpayers and awareness programmes to ensure compliance with tax laws, while also taking effective legal action against tax evasion.

The prime minister also mentioned the formulation and implementation of the Tax Expenditure Policy and Management Framework 2026 to minimise tax expenditures.

The government is strengthening revenue collection from post-clearance audits, pending cases, auctions, bank guarantee encashment, unsettled bills, and deferred payments, he added.

The National Tariff Policy 2023 is being implemented in phases, along with the Customs Strategic Plan 2024-2028.

"I hope implementing these plans will make it possible to raise the tax-GDP ratio to 10% within five years," the prime minister said in his written reply. "Additionally, various initiatives have been taken to achieve the target of 15% by 2035, including the implementation of the Strengthening Domestic Revenue Mobilisation Project and rationalising tax exemptions."

The dollar held steady against most major peers on Wednesday ahead of the Federal Reserve’s first policy decision under chair Kevin Warsh, which could see some volatility as investors adjust to a new style of policy making and communication. The euro was flat on the day at $1.1605, while the pound softened a fraction on both the dollar, to $1.3420, and the euro, to 86.5 pence to the common currency, after cooler-than-expected UK inflation data that could give the Bank of England cover to hold off on raising rates this year.

But the big event of the day, the Fed meeting, is still to come, and left investors hesitant to take on large positions. The Fed is widely expected to stand pat at Warsh’s debut meeting. The statement, economic projections and news conference, however, will be scrutinised for any signals of the Fed dropping its easing bias as officials grow more hawkish on inflation risks.

“There have been many central banks meeting this month, but this is the one that’s overshadowing everything,” said Jane Foley, head of FX strategy at Rabobank. “There is a lot of uncertainty over what Warsh might signal. No one is expecting a change in interest rates, but is he going to try and downplay the dot plot? Try and set up a new framework? Try to steer them towards an easing bias?” she said.

The so-called “dot plot” shows policymakers’ expectations for the future path of interest rates. Warsh was appointed by US President Donald Trump, who repeatedly criticised the previous Fed chair, Jerome Powell, for being slow to cut rates. Money market pricing actually reflects around an 80 percent chance of the Fed hiking rates this year.

Before the US and Iran reached an interim agreement to end the war in the Middle East, economists had thought the Fed would signal some willingness to raise rates to try to limit the extent to which elevated energy costs spill over into broader inflation. Now though, oil is back below $80 a barrel and the Fed may give different signals.

The Bangladesh Bank has rejected recent media reports claiming that distressed loans in the country's banking sector account for between 45% and 60% of total loans, saying the estimates are based on technically flawed calculations and do not reflect the actual condition of the sector.

In a clarification issued today (17 June), the central bank said the reported figures were inconsistent with the methodology used in its Financial Stability Report (FSR) 2025 and should not be treated as an accurate measure of banking sector risks.

According to the report, the official non-performing loan (NPL) ratio stood at 30.60% as of 31 December 2025. Bangladesh Bank said this audited and finalised figure remains the authoritative measure of the sector's non-performing assets.

The central bank noted that some reports had calculated so-called distressed loans by combining non-performing or classified loans, rescheduled loans and written-off loans.

"It is not appropriate to aggregate these categories in this manner," the regulator said, adding that such calculations are technically incorrect and lead to exaggerated estimates of financial stress in the banking sector.

The Bangladesh Bank further said there is no internationally recognised or standardised definition of "distressed loans" used by global regulatory and policy-making institutions.

While the term is sometimes used broadly to describe loans facing repayment difficulties, the methodology applied in the reports does not conform to accepted regulatory or accounting standards, it added.

Explaining its position, the central bank said rescheduled loans should not automatically be treated as distressed assets because borrowers continue to make repayments under approved restructuring arrangements. These loans remain active assets that generate cash flow for banks.

It also noted that written-off loans are maintained off-balance sheet in line with international accounting practices and therefore should not be added to active loan portfolios when assessing the current health of the banking sector.

Bangladesh Bank warned that publishing unverified or technically inaccurate financial data could create misleading perceptions about the country's financial stability among domestic and international stakeholders, potentially affecting investor confidence and the broader economy.

The regulator urged media organisations to exercise greater caution when reporting on the financial sector and to verify data with official sources before publication.

The clarification comes amid increased public attention on the banking sector following the release of the Financial Stability Report 2025 and ongoing discussions over the scale of problem loans in the country's banks.