The US dollar traded around a 10-day low against other major currencies on Monday as a preliminary agreement to end the war between the US and Iran sent oil prices tumbling and boosted demand for riskier assets. US and Iranian officials said on Sunday they had agreed on a framework for a deal to end their war, halt the US blockade of Iran and reopen the Strait of Hormuz.

The memorandum of understanding is scheduled to be officially signed on Friday in Switzerland, but caution still lingered as markets awaited more details and as the fate of Iran’s nuclear program was left for further negotiations.

Oil prices slumped, with Brent crude futures down around 5 percent to $82.9 a barrel. The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, was little changed at 99.52, hovering around its lowest since June 5.

Nick Rees, head of macro research at Monex Europe, said that despite the preliminary deal between the US and Iran, markets would likely be cautious about pricing in further optimism.

“There’s plenty of room to be disappointed here,” he said. “Crucially, we haven’t heard anything on the nuclear side. If that comes through over the next few days, then I think we can be a bit more constructive.”

“But without a nuclear agreement, I don’t think we can simply assume that any deal’s going to hold. So we are cautiously optimistic, but that warrants a relatively small FX reaction,” Rees said.

The euro was last 0.32 percent higher at $1.1605, and sterling rose 0.16 percent to $1.3428. Both were near the strongest level since June 5.

The Japanese yen was broadly steady at 160.10 per dollar, continuing to hover around the 160 level widely seen as a line in the sand for potential official intervention.

Finance Minister Amir Khosru Mahmud Chowdhury today (15 June) placed the revised and supplementary budget for fiscal year 2025-26 in parliament, proposing total expenditure of Tk7.88 lakh crore and a budget deficit of Tk2 lakh crore.

The proposed deficit is equivalent to 3.3% of the country's gross domestic product (GDP).

The finance minister presented the revised and supplementary budget on the seventh day of the second session of the 13th National Parliament.

In his budget speech, he said the government's net expenditure in the original FY26 budget was estimated at Tk7.9 lakh crore.

However, due to slower implementation of the Annual Development Programme (ADP) during the pre-election period, total expenditure has been reduced by Tk2,000 crore in the revised budget.

He said revitalising the economy by overcoming global uncertainties and domestic economic weaknesses remains one of the government's top priorities following its formation.

To that end, the government has taken measures to prevent wasteful spending, reduce expenditure in non-priority sectors and maintain administrative austerity, he added.

The finance minister said subsidies in the power and energy sectors had been adjusted, while social safety net programmes, including the Family Card and Farmer Card schemes, as well as honorariums for imams, priests and muezzins, had been expanded.

He said expenditure and deficit estimates in the supplementary budget had been adjusted to accommodate the costs of these programmes.

Following the budget presentation, Speaker Hafiz Uddin Ahmad initiated voting on demands for grants relating to expenditure other than charged expenditure for FY26.

He said that under Article 89 of the Constitution, charged expenditure may be discussed in parliament but is not subject to voting.

The speaker informed the House that the supplementary budget contains 25 demands for grants. Opposition lawmakers submitted 304 cut motions against these demands.

Considering time constraints, cut motions relating to eight ministries and divisions, including the Finance Division, Planning Division, Ministry of Commerce, Ministry of Science and Technology, Local Government Division, Ministry of Water Resources, Ministry of Food and the Anti-Corruption Commission, will be discussed. The remaining demands will be disposed of through voting.

Islami Bank Bangladesh PLC shares rebounded significantly after Bangladesh Bank’s intervention restored investor confidence, triggering a price surge on the stock market. However, trading halted due to a shortage of sellers afterwards.

Shares of the bank have surged 32 percent over three consecutive trading sessions after Bangladesh Bank pledged full support to the lender and dissolved its entire board of directors, halting a crisis that had wiped nearly a fifth off the stock’s value in two days.

Yesterday, the stock hit the upper circuit limit of 10 percent and trading was halted due to a shortage of sellers following the government’s announcement of support for the bank, according to data from the Dhaka Stock Exchange (DSE).

The BB governor on June 12 pledged full support to the bank and has already extended Tk 2,500 crore in liquidity support.

Two days later, the central bank dissolved the bank’s entire board of directors, including its chairman, Md Khurshid Alam, whose appointment had triggered depositor protests that accelerated an earlier sell-off.

The rebound follows a steep decline. After the Bangladesh Securities and Exchange Commission removed the floor price on June 8, the stock shed around 19 percent in just two days through June 10, as depositor unrest and political controversy compounded market pressure.

Islami Bank carries the banking sector’s largest non-performing loan burden -- Tk 95,629 crore, equivalent to 50.88 percent of its total outstanding loans.The bank paid a 10 percent cash dividend in 2023 but skipped payouts in the two years since, a lapse that saw its stock downgraded to the Z category.

Parliament today (15 June) passed the supplementary budget of Tk56,117 crore for the fiscal year 2025-26.

Through this, parliament has approved additional expenditure by various ministries and divisions beyond the allocations in the main budget until 30 June.

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Finance Minister Amir Khosru Mahmud Chowdhury placed the Appropriation (Supplementary) Bill 2026 in Parliament, which was subsequently passed by voice vote.

The minister informed parliament that the net government expenditure in the main budget for the current 2025-26 fiscal year was set at Tk7.90 lakh crore.

However, due to a slowdown in government spending, particularly in the implementation of the Annual Development Programme (ADP) during the pre-election period, expenditure in the revised budget has been proposed to be reduced by Tk2,000 crore to Tk7.88 lakh crore.

He further said that the budget deficit in the revised budget has been proposed at Tk2 lakh crore, equivalent to 3.3% of gross domestic product (GDP).

The finance minister stated that allocations for 27 ministries, divisions and other institutions have been increased in the revised budget, amounting to Tk56,117 crore.

In contrast, allocations for 35 ministries and divisions have been reduced by Tk59,348 crore.

Through the speaker, the finance minister called on all members of parliament to approve the grants sought for expenditure other than charged expenditure mentioned in the supplementary financial statement.

He also sought approval for the increased allocation of Tk56,117 crore for the 27 ministries, divisions and other institutions.

In his concluding remarks on the supplementary budget, Khosru said that since assuming office, the government has been consistently taking effective measures aimed at improving people's living standards and revitalising the economy.

He added that amid global instability, internal economic weaknesses and pressure from high inflation, rebuilding the economy remains one of the government's key priorities.

The finance minister said efforts are ongoing to reduce wasteful public expenditure, cut non-priority spending and ensure austerity in administrative costs.

At the same time, the implementation of the government's election manifesto is also being advanced.

He further stated that although subsidies in the power and energy sector have had to be adjusted due to the global situation, the government has expanded social protection programmes.

Initiatives such as family cards, farmer cards and honorarium payments for imams, priests and muezzins have strengthened social safety net programmes, he said, adding that expenditure and deficit adjustments in the supplementary budget have been made to support the implementation of these activities.

Earlier, various ministries, divisions and institutions sought increased allocations under 25 demands for grants.

Among the allocations, the Finance Division received the highest amount at Tk28,655 crore, while the Textiles and Jute Ministry received the lowest at Tk0.45 crore.

Other major allocations included Tk16.59 crore for the Parliament Secretariat, Tk15.67 crore for the Cabinet Division, Tk19.77 crore for the Supreme Court, Tk1,389.65 crore for the Election Commission, Tk30.01 crore for the Public Service Commission,

Tk1,690.81 crore for the Financial Institutions Division, and Tk12,407.83 crore for the Planning Commission.

The Implementation Monitoring and Evaluation Division (IMED) received Tk21.97 crore, while the Commerce Ministry was allocated Tk301.93 crore. The Foreign Ministry received Tk59.97 crore, Law Ministry Tk84.74 crore, Public Security Division

Tk171.68 crore, and Legislative and Parliamentary Affairs Division Tk0.87 crore.

Other allocations included Tk4,923.48 crore for the Science and Technology Ministry, Tk722.46 crore for the ICT Division, Tk293.35 crore for the Women and Children Affairs Ministry, Tk112.58 crore for the Information and Broadcasting Ministry, Tk220.41 crore for the Religious Affairs Ministry, Tk1,809.56 crore for the Local Government Division, Tk75.61 crore for the Expatriates' Welfare and Overseas Employment Ministry, Tk97.71 crore for the Land Ministry, Tk2,177.04 crore for the Water Resources Ministry, Tk683.91 crore for the Food Ministry, Tk122.19 crore for the Liberation War Affairs Ministry, and Tk11.68 crore for the Anti-Corruption Commission.

Discussions were held on three cut motions relating to key ministries and divisions, including the Finance Division, Planning Division, Commerce Ministry, Science and Technology Ministry, Local Government Division, Water Resources Ministry, Food Ministry and the Anti-Corruption Commission.

A total of 304 cut motions were moved by 11 lawmakers during the session, but all were rejected by voice vote.

The motions were moved by lawmakers from Bangladesh Jamaat-e-Islami and independent members, including Shahjahan Chowdhury, Md Mujibur Rahman, GM Nazrul Islam, Md Abdul Gafur, Md Quamrul Hassan, Muhammad Nazibur Rahman, M Abdul Aleem, Al Faruq Abdul Latif, Md Ruhul Amin, Muhammad Ali Asgar, M Amir Hamza, Md Afjal Hossain, M Shafiqul Islam, Shaikh Monzurul Haque (Rahad), Md Masud Parves, Rumeen Farhana and Sk Mozibur Rahman Iqbal.

The parliament yesterday passed the supplementary expenditure plan of Tk 56,117 crore for fiscal year 2025-26 to meet increased expenditure under different ministries and divisions.

Among the ministries and divisions, the Finance Division received the highest allocation under the supplementary budget – an additional financial plan introduced by a government during a fiscal year to allocate extra funds for unforeseen expenses, cover revenue shortfalls, or adjust spending priorities.

Overall, the parliament approved allocations for 27 ministries and divisions under the supplementary budget, which Finance Minister Amir Khosru Mahmud Chowdhury placed before the House on June 11 along with the national budget.

The allocation for the Finance Division was Tk 28,655 crore, followed by Tk 12,407 crore for the Planning Commission and Tk 4,923 crore for the Ministry of Science and Technology.

The Ministry of Water Resources and the Local Government Division got Tk 2,177.04 crore and Tk 1,809.56 crore in additional allocations, respectively.

As per parliamentary rules, the government has to get approval from lawmakers if it needs to increase budgetary allocations for any ministry or division. The same process is not required for reduced allocations or expenditure.

During the outgoing FY26, the government has cut allocations to 35 ministries and divisions by Tk 59,348 crore. As such, the government’s revised expenditure plan has declined to Tk 788,000 crore for the current year from the initial plan of Tk 790,000 crore.

Addressing the parliament yesterday, Khosru said since assuming power, one of the government’s top priorities has been to restructure the economy by tackling global instability, internal structural weaknesses, and inflationary pressures.

“We are trying to reduce waste in every area of government expenditure, cut spending in non-priority sectors, and ensure frugality in administrative costs. At the same time, we are working to implement the government’s electoral manifesto.”

“However, due to global circumstances, we had to adjust subsidies for electricity and energy,” he added.

Opposition MPs raised concerns over weaknesses in the banking sector, rising default loans, shrinking private-sector credit flow, and the government’s capacity to finance the budget deficit.

They also questioned the government’s plan to borrow large sums from banks despite mounting default loans and liquidity crises, while simultaneously creating rescue funds for troubled banks.

They warned that this could further strain the financial sector.

Khosru, in response, said additional allocations were needed to finance priority programmes, including waiving principal and interest on agricultural loans of up to Tk 10,000 and funding two Annual Development Programme (ADP) and four non-ADP projects.

He stressed that the extra funds were not sought for the Finance Division’s own expenses and defended the proposal as justified, rejecting the cut motions.

Finance Minister Amir Khosru Mahmud Chowdhury on Monday said the government has made adjustments to the expenditure and budget deficit in the supplementary budget to address economic challenges while continuing social safety net programmes.
Moving the Supplementary Budget Bill in Parliament, he said since assuming office, the government has undertaken effective measures to improve people's living standards and revive the economy.

The minister noted that rebuilding the economy remains one of the government's key priorities amid global uncertainties, structural weaknesses within the economy and inflationary pressures."We are trying to reduce wastage in public expenditure, curtail non-priority spending, lower administrative costs and ensure greater efficiency in government spending," he told the House.

At the same time, Khosru said, the government is working to implement commitments made in the BNP election manifesto.

However, due to the global economic situation, he said, adjustments were made to electricity and energy subsidies, while social safety net programmes expanded through initiatives such as Family Card, Farmers' Card and allowances for imams, muezzins and priests.

To accommodate these measures, the government made adjustments to expenditure and the budget deficit in the supplementary budget, the minister added.

Considering the slower pace of government spending, particularly the implementation of the Annual Development Programme (ADP) before the election, the revised budget proposed a reduction of Tk 20 billion, bringing total net expenditure down to Tk 7.88 trillion.

Khosru said the revised budget proposed a deficit of Tk 2.0 trillion, equivalent to 3.3 per cent of the country's Gross Domestic Product (GDP).

According to him, allocations for 27 ministries, divisions and other institutions have been increased by Tk 561.1759 billion under the supplementary budget, while allocations for the remaining 35 ministries and divisions have been reduced by Tk 593.4867 billion.

Thanking lawmakers for what he described as a lively discussion on the supplementary budget, the minister urged Parliament to approve the grants sought for expenditures other than charged expenditures outlined in the supplementary financial statement.

He formally requested all members of parliament to endorse the supplementary budget proposals for the current fiscal year.

Restructuring Bangladesh's economy by addressing its structural weaknesses and battling inflationary pressures and global economic instability is one of the top priorities of the current government, said Finance Minister Amir Khosru Mahmud Chowdhury.
The government is working to reduce waste in government expenditure, reduce non-priority spending and ensure thriftiness in administrative outlay in addition to implementing election promises, he said during a discussion on the supplementary budget for the 2025-26 fiscal year in parliament on Monday, bdnews24.com reports.

"Since the formation of the current government, the restructuring of the country's economy by addressing the weaknesses of its internal structures, and tackling inflationary pressures and global instability has been one of the government's top priorities,” the senior BNP leader added.

He said the government has taken various effective initiatives to improve the living standards of the people and revive the economy.

Also highlighting the issue of subsidies in the power and energy sectors, the finance minister said that they had to be adjusted due to global economic headwinds.

He also spoke of addition, Family Cards, Farmer Cards and the expansion of honorarium-based social security programmes for imams, priests and muezzins.

"For these activities, some adjustment of expenditure and deficit in the supplementary budget had to be made," he said.

Proposal to Reduce Expenditure in the Revised Budget

Discussing the revised budget for the current fiscal year, the finance minister said the government's net spending in the main budget for FY26 was estimated at Tk 7.9 trillion.

However, due to the slow pace of implementation, especially the Annual Development Programme (ADP) in the pre-election period, it has been proposed to reduce the total expenditure by Tk 20 billion to Tk 7.88 trillion in the revised budget.

He said the budget deficit in the revised budget has been estimated at Tk 2 trillion, which is about 3 percent of the GDP.

The finance minister said that the allocations for 27 ministries, departments and other institutions have increased in the revised budget, amounting to Tk 561 billion.

On the other hand, the outlay for 35 ministries and departments has decreased by Tk 593.48 billion.

Thanking the members of parliament who participated in the discussion on the supplementary budget, he urged them to approve the proposed grants.

Bangladesh received US$1.54 billion in remittances during the first 14 days of June 2026, marking a 30.04 percent increase compared with the corresponding period of the previous year, according to the latest data

The country received US$1,541.30 million in remittances between June 1 and June 14 this year, up from US$1,185.29 million received during the same period in June 2025.

On June 14 alone, expatriate Bangladeshis sent home US$179.08 million through official banking channels.

The steady inflow of remittances has also strengthened the country’s external sector performance during the current fiscal year.

According to the data, total remittance inflows stood at US$34.30 billion during the period from July 2025 to June 14, 2026, compared with US$28.69 billion received during the corresponding period of fiscal year 2024-25.

As a result, remittance earnings recorded a robust 19.54 percent growth during the current fiscal year up to June 14, 2026.

The Dhaka bourse is developing software to monitor investors' funds and shareholding positions in real time, in a bid to curb corrupt practices by brokers involving consolidated customer accounts (CCA).

Once the DSE-iMON (Integrated Monitoring Platform) is installed, the bourse will be able to detect any unauthorised movement of funds from the CCA - a bank account maintained by brokers - by cross-matching investors' deposits with shares purchased in their BO accounts.

The premier bourse has designed the features of the software and an internal team is now working to develop it.

"Our board has approved the project at a recent meeting. The software is likely to be installed by December this year," said DSE Managing Director Nuzhat Anwar.

The initiative comes against the backdrop of repeated incidents of misappropriation of investors' funds by brokers. Funds had been siphoned off from CCAs long before the regulatory bodies could learn about the financial frauds.

Thousands of investors are yet to receive their hard-earned money embezzled by five brokerage firms, including Tamha and Mashihor Securities.

DSE-iMON will cross-check data across brokers' back-office systems, banks, the Central Depository Bangladesh Ltd. (CDBL) and the Dhaka bourse. It will automatically send an alert if there are anomalies in the data. On receipt of the alert, the DSE will verify the status of the CCA with the help of the bank with which the account is maintained.Bangladesh market insights

Currently, the DSE is not allowed to check CCAs opened with scheduled banks.

"The DSE will need indemnity from brokers to check the bank accounts," Ms Nuzhat said.

A majority of brokers have agreed to allow the DSE to scrutinise their bank accounts following any abnormal transactions.

Under the existing reporting framework, every TREC (Trading Right Entitlement Certificate) holder is required to submit a report on its CCA status to the DSE on a monthly basis. The reports are unaudited and the DSE has no scope to verify if the reports, prepared on company letterheads, are authentic.

Sources at the DSE said there were times when they found such reports to be inaccurate.

For example, a broker once showed a shortfall of investors' money worth around Tk 70 million in its CCA, but the amount was later found to be more than Tk 200 million in an investigation.

The sources said that initially some brokers opposed the idea of installing DSE-iMON. They were convinced when told that they would no longer have to prepare reports on CCA with the software in place.

The existing regulatory oversight often remains incomplete and any action to protect investors is often delayed. The DSE-iMON system will bring solutions through continuous monitoring of investors' CCA balances and shareholding positions.

The information regarding CCA balances will be cross-checked with the help of banks.

The system is therefore expected to enhance transparency, improve compliance monitoring and enable early detection of irregularities.

DSE-iMON has been conceptualised as the prime bourse sought a technology-driven solution.

The DSE has a mandate to see if TREC holder companies comply with securities laws and regulatory directives, said Ms Nuzhat. DSE-iMON will help ensure continuous monitoring instead of periodic inspections, enabling earlier detection of irregularities and compliance issues.

As encrypted data will be matched automatically, the platform will improve investors' data privacy while minimising human access to sensitive investor information.

The exchange's integrated platform will also reduce dependency on manual inspections, spreadsheets and ad hoc investigations, allowing regulatory staff to focus on high-risk cases.

The prime bourse will grade brokers using the technology based on the extent of their compliance. Brokers obtaining good marks will face less scrutiny while highly non-compliant brokers will come under frequent investigations.

The Dhaka Stock Exchange (DSE) today (15 June) suspended trading of shares of Sonargaon Textiles Ltd, a listed textile company, midway through the trading session, citing an unusual surge in both share price and trading volume.

Under listing regulations, the bourse may suspend trading of a security if unusual market activity is detected, particularly when it is believed to be driven by rumours, undisclosed material information, or possible manipulation.

In such cases, the exchange may ask the issuer to take corrective action and halt trading until the issue is resolved.

Sonargaon Textiles is a loss-making company, posting a loss of Tk2.12 crore in FY25.

It also continued to incur losses in the first nine months of FY2025-26.

Despite this, and in the absence of any price-sensitive disclosures, the company's share price has seen a sharp rise in recent sessions, nearly doubling within a month.

Since 10 March, the stock surged 158% to Tk87.50 today, up from Tk33.90, according to DSE data.

In a disclosure published on the exchange website, the DSE said trading was halted for the rest of the day due to an abnormal price hike of 9.92%, coupled with a significant rise in turnover.

Responding to queries from the DSE, the company said it was not aware of any undisclosed price-sensitive information that could explain the recent surge in price and trading volume.

The DSE also halted trading of Shyampur Sugar Mills shares earlier for similar reasons.

Trading resumed a day later on Sunday. Following the resumption, its shares fell around 17% over two trading sessions, closing at Tk202 each the same day.

The country's premier stock exchange extended its upward momentum for a third consecutive session yesterday, with the benchmark index climbing to a nine-and-a-half-month high, driven by strong buying in blue-chip stocks and a sharp rally in Islami Bank.

Despite late-session profit-taking pressure that saw more than half of traded issues decline, the Dhaka Stock Exchange (DSE) managed to stay resilient above the 5,600-point mark, supported by selective accumulation in large-cap shares.

The DSEX rose 15 points, or 0.27%, to settle at 5,640, its highest level since late last year. The DS30 index also edged up by 8 points to close at 2,128, reflecting broadly positive sentiment among blue-chip counters.

However, market breadth remained negative, underscoring cautious trading activity, as 184 issues declined against 145 advances, while 66 remained unchanged.

Total turnover increased by 7% to Tk1,456 crore, indicating improved liquidity flow and sustained investor participation.

According to EBL Securities, the market showed notable resilience as investors continued accumulating attractively valued blue-chip stocks. A key driver of the session was sustained buying pressure in Islami Bank Bangladesh PLC, which surged 10% to hit the upper circuit breaker.

Market insiders attributed the rally to expectations of government-backed regulatory support aimed at easing the bank's liquidity stress, which helped restore investor confidence in the stock.

Despite strong momentum during mid-session trading, many investors opted to book profits after the index reached a multi-month peak, leading to mixed sentiment toward the close.

Sheltech Brokerage Limited noted that the day's movement was shaped by a combination of selective accumulation and profit-taking pressure. Although the session opened with broad-based buying interest, selling pressure intensified from mid-session onward. However, support from the banking and large-cap pharmaceutical sectors helped absorb losses and ensured a positive finish for the key indices.

On the sectoral front, general insurance dominated turnover, accounting for 15.9% of total trade, followed by the banking sector with 13.3% and textiles with 10.1%.

In terms of performance, the ceramic sector led the gainers with a 1.9% rise, followed by banking at 1.2% and cement at 0.9%.

On the losing side, the miscellaneous sector declined 3.9%, while life insurance and general insurance dropped 3.1% and 1.1%, respectively.

Islami Bank topped the gainers' list, followed by Sonargaon Textile, Emerald Oil, and Meghna Condensed Milk.

On turnover, IPDC Finance was the most traded stock with Tk81 crore, followed by NCC Bank and Beximco Pharmaceuticals.

Beximco Limited emerged as the top loser, falling 9.95%, followed by ICB Employees Provident Mutual Fund and Shyampur Sugar.

The positive momentum was also reflected on the Chittagong Stock Exchange (CSE), where the CSCX index rose 12 points to 9,423, while the CASPI gained 52 points to reach 15,395. Turnover at the port city bourse surged 75% to Tk42.46 crore.

Gold rose more than 2% on Monday after US and Iran officials said they had reached an initial agreement to end their war, pushing oil prices lower and easing concerns about inflation and higher interest rates.

Spot gold climbed 2.3% to $4,316.03 per ounce by 0730 GMT, hitting its highest level since 9 June and extending gains for a third straight session. US gold futures for August delivery rose 2.3% to $4,337.20.

US and Iranian officials said on Sunday they had agreed on a framework to end their war, halt the US blockade of Iran and reopen the Strait of Hormuz.

The pact will be officially signed on Friday in Switzerland, Pakistani Prime Minister Shehbaz Sharif said in a post on X.

The US dollar fell to a 10-day low, making greenback-priced bullion cheaper for other currency holders, while oil prices slipped more than 4%.

"Lower oil prices and a softer dollar, stemming from reduced geopolitical risk and the anticipated reopening of the Strait of Hormuz, are helping to calm inflation expectations," said Tim Waterer, chief market analyst at KCM Trade.

"This combination is providing the precious metal with its best tailwind in recent weeks, though sustainability will depend on how durable the peace agreement proves to be."

Gold prices have fallen about 20% since the start of the US-Israeli war against Iran in late February. The effective closure of the Strait of Hormuz has led to a sharp increase in global oil prices, stoking inflation concerns and raising expectations of interest rates staying higher for longer.

Bullion loses appeal in a high-interest-rate environment as it is a non-yielding asset.

Markets have scaled back expectations for a US rate hike in December to 51% after the peace deal, down from 69% last week, according to the CME FedWatch tool.

Investors now await the Federal Reserve policy decision and remarks, the first under Chair Kevin Warsh, on Wednesday, with rates widely expected to remain unchanged.

"Currency debasement concerns, fiscal risks and ongoing geopolitical fragmentation continue to underpin long-term demand (for gold). A moderation in energy-led inflation could help these themes regain traction," OCBC said in a note.

Spot silver rose 3.3% to $70.22 per ounce, platinum gained 2.7% to $1,763.38 and palladium climbed 2.7% to $1,317.22.

The United States is set to release $12 billion in frozen Iranian assets before the commencement of negotiations with Tehran, Iran's Mehr news agency reported today (15 June), citing a 14-point memorandum of understanding between the two countries, reports AFP.

According to the document published by Mehr, a total of $24 billion in frozen Iranian assets would be released during a 60-day negotiation period following the conclusion of the memorandum.

The document states that "half of this amount must be made available to Iran before the start of the negotiations."

The memorandum cited by Mehr has not been officially confirmed by either Washington or Tehran.

US and Iranian officials said they had reached an agreement to end their war and reopen the Strait of Hormuz, a preliminary pact that sent oil prices lower but leaves the future of Tehran's nuclear programme subject to further negotiations.

Although still a framework agreement, the deal marks the most significant breakthrough yet in efforts to resolve a conflict that has killed thousands and disrupted global energy markets since it began with joint US-Israeli strikes on Iran in February.

"The Deal with the Islamic Republic of Iran is now complete," US President Donald Trump wrote on his Truth Social platform at around 5:30pm in Washington (2130 GMT) on Sunday.

Trump's announcement came shortly after Pakistani Prime Minister Shehbaz Sharif, whose country has acted as a mediator between the two sides, said a deal had been reached early Monday local time.

The memorandum of understanding underpinning the agreement is scheduled to be formally signed in Switzerland on Friday.

Iran's foreign ministry spokesperson Esmaeil Baghaei has indicated that Iran and Oman may impose "fees" on ships passing through the Strait of Hormuz, reports Al Jazeera.

"The Strait of Hormuz is very important for us, and we have adopted certain procedures according to international law in order to protect Iran's national security and the Islamic Republic of Iran," Baghaei told a press conference.

"Our goal is to pave the way for a secure passage in this waterway. We need a certain period of time to discuss with the other sides this important matter," he said.

Baghaei said that "fees" would be charged for vessels using the strategic waterway.

"It's full services that will be offered in order to keep and maintain the environment," he said.

"So many other services will be offered by Iran and Oman, and this will cost money. Accordingly, the fees will be there, and this is clear," he added.

The government has formed a high-level committee to simplify and expedite the issuance of licences, permits and other regulatory approvals required to set up new industries and factories, as part of efforts to improve the ease of doing business and attract fresh investment.

The seven-member inter-ministerial committee will recommend measures to streamline approval procedures and remove regulatory bottlenecks that businesses have long identified as barriers to investment, according to a gazette notification issued by the Prime Minister’s Office on June 9.

The committee will be chaired by the minister overseeing the ministries of commerce, industries, and textiles and jute.

The members of the committee include the adviser to the ministries of finance and planning, the executive chairman of the Bangladesh Investment Development Authority (Bida), the cabinet secretary, the principal secretary to the prime minister, the finance secretary, and the secretary of the Ministry of Environment, Forest and Climate Change.

According to the notification, the committee will suggest ways to facilitate the issuance of licences, permits, no-objection certificates and other clearances required for establishing industrial units.

It will also propose a framework for granting provisional approvals at the initial stage of investment projects, allowing entrepreneurs to begin certain activities before obtaining all final clearances.

In addition, the committee has been tasked with reviewing existing approval requirements and recommending a classification system based on their significance, with a view to eliminating less critical permits and reducing compliance burdens.

The government may co-opt additional members, if necessary, while the Ministry of Textiles and Jute will provide secretarial support to the committee.

The order took immediate effect.

The government has also formed another high-level committee to facilitate bank financing for industries operating on state-owned mills, factories and government land, addressing a longstanding challenge faced by investors seeking credit.

The committee, constituted through a separate gazette notification issued by the Prime Minister’s Office on June 9, will recommend measures to help businesses secure loans against leasehold interests and other rights linked to government-owned properties.

Chaired by the minister overseeing the ministries of commerce, industries, and textiles and jute, the committee includes representatives from the Finance and Planning Ministry, Bangladesh Bank, the Finance Division and the Public-Private Partnership Authority.

It will also advise state-owned financial institutions, including Infrastructure Development Company Limited (IDCOL) and Bangladesh Infrastructure Finance Fund Limited (BIFFL), on financing projects established on government land.

The moves come amid growing calls from businesses to reduce procedural delays, improve regulatory efficiency and ease access to financing.

Entrepreneurs have long complained that obtaining approvals from multiple agencies increases both the time and cost of setting up businesses, while firms operating on government land often struggle to secure bank financing despite holding long-term leases.

The latest budget includes measures to improve the investment climate, including issuing business licences through a digital single-window platform within seven days, expanding digital tax and VAT services, and offering incentives for technology and environmentally friendly industries.

Business leaders welcomed the formation of the committees, saying faster approvals and improved access to financing could help strengthen the country’s competitiveness as an investment destination.

Taskeen Ahmed, president of the Dhaka Chamber of Commerce and Industry, said the initiative reflects the government’s stated commitment to promoting a private sector-led economy.

“The proposal to issue licences and clearances within seven days could significantly improve the ease of doing business,” he said.

Ahmed said the government appeared to recognise the importance of investment promotion in accelerating economic growth. However, he noted that the success of the initiative would depend on effective implementation.

“It is now a matter of seeing how successfully these measures are carried out,” he said.

Kamran T Rahman, president of the Metropolitan Chamber of Commerce and Industry, also welcomed the move.

“We view such initiatives positively,” he said. “The government has announced a number of promising measures. If these are implemented effectively, they will certainly benefit businesses.”

Rahman said businesses have long faced a high cost of doing business, partly because securing permits and approvals often takes considerable time.

“If these processes are digitalised, approvals can be obtained much faster and businesses will begin to see the benefits sooner,” he said.

He added that online services would reduce the need for entrepreneurs to visit government offices repeatedly, saving both time and money.

Mohammed Amirul Haque, president of the Chittagong Chamber of Commerce and Industry, said both initiatives are encouraging for investment promotion.

“This type of cooperative mindset towards investors will have a positive impact on the economy,” he said.

However, he added that initiatives alone are not enough and that implementation will be the key factor in translating the government’s plans into reality.

Despite a proposed increase in the tax-free income threshold, many taxpayers, especially salaried individuals, are likely to face a higher tax burden from the next fiscal year.

In the new budget, Finance Minister Amir Khosru Mahmud Chowdhury has proposed raising the tax-free income limit by Tk 25,000 to Tk 375,000. Although the tax-free income threshold has been raised, much of the relief is offset by three major changes in the Finance Bill 2026.

One of the key proposals is the abolition of the 5 percent introductory tax slab.

Its removal means the lowest post-threshold rate rises to 10 percent, effectively increasing the marginal tax burden for lower-tier earners.

Under the proposed structure, individuals earning up to Tk 300,000 on top of the Tk 375,000 threshold will face a 10 percent tax rate.

An analysis found that a taxpayer earning a gross monthly income of Tk 74,000 could see their tax liability rise by nearly 49 percent in FY27

In the current system, taxpayers earning up to Tk 100,000 above the Tk 350,000 threshold pay only 5 percent.

Another change likely to increase pressure on taxpayers is a reduction in tax benefits linked to eligible investments.

The overall effect will be a higher effective tax burden, especially for higher income groups who rely on rebates to reduce liabilities.

An analysis by SMAC Advisory Services Ltd found that a taxpayer earning a gross monthly income of Tk 74,000 could see their tax liability rise by nearly 49 percent in fiscal year 2026-27, due mainly to slab restructuring and reduced rebate benefits.

During the presentation of the bill on Thursday last week, Khosru also proposed a five-year forward-looking tax framework for individuals, under which the first slab rate has effectively doubled from 5 percent to 10 percent.

The burden is expected to remain relatively high for middle-income people. Those earning up to Tk 100,000 a month will continue to face significantly higher tax outflows under the proposed regime.

By contrast, taxpayers earning more than Tk 250,000 a month will see their overall tax liability rise by around 10 percent, highlighting the uneven impact across income groups, according to SMAC Advisory Services Ltd.

Alongside the slab changes, the bill proposes a cut in the tax rebate available on investments in approved savings and financial instruments.

Currently, taxpayers can reduce their tax liability through investment rebates calculated at 15 percent of eligible investments. The proposal lowers this to 10 percent.

The maximum annual rebate is also set to fall to Tk 7.5 lakh from Tk 10 lakh.

As a result, taxpayers who depend on investment schemes to reduce their tax liability will receive smaller benefits unless they increase eligible investments before June 30, 2026.

“These measures will directly raise the effective tax burden on individual taxpayers, especially certain salaried employees,” said Snehasish Barua, a chartered accountant and tax expert.

The bill also introduces a new condition aimed at encouraging long-term savings. Under the proposal, investments must be held until maturity to qualify for tax benefits. If funds are withdrawn early, the rebate previously claimed will have to be repaid as additional tax in the year of withdrawal.

For instance, if a taxpayer withdraws money from a savings certificate before maturity, they will have to repay the tax rebate.

The annual investment limit for deposit pension schemes (DPS) eligible for tax benefits remains unchanged at Tk 1.2 lakh.

The bill also sets a Tk 5 lakh ceiling on investments in government securities that can be considered for tax rebate purposes.

The proposed measures are a part of the government’s broader effort to raise revenue and reduce the cost of tax incentives.

However, for the first time, the National Board of Revenue (NBR) has proposed an incentive for early tax return submission. Taxpayers who file returns by September 30 will be eligible for a rebate equivalent to 5 percent of payable tax or Tk 25,000, whichever is lower.

If approved by parliament, the changes will take effect from tax year 2026-27.

“Except for taxpayers in the lowest tax bracket, those with annual incomes of up to Tk 375,000, almost everyone else will face a higher tax burden under the proposed measures,” said Towfiqul Islam Khan, additional director (Research) at Centre for Policy Dialogue (CPD).

“The increase will be felt across income groups, but the impact will be more pronounced on the middle class. Although higher-income individuals will also pay more tax, the relative increase in tax liability is larger for middle-income earners.”

He said the changes would dilute the intended relief from inflation, as the purchasing power of middle-income households would come under further pressure.

“This group generally has lower disposable income and limited savings. As a result, their consumption capacity is likely to weaken, which could also affect demand for domestically produced goods and services,” Khan said.

He added that the government’s objective appears to be increasing revenue collection while reducing tax concessions linked to investments.

“The policy seems aimed at preserving incentives for productive and industrial investments, while scaling back the tax benefits individual taxpayers receive through investment-related rebates,” said Khan.

“While the government may have moved away from some of the IMF’s recommendations on reducing tax exemptions, this particular measure will put additional pressure on taxpayers, especially middle-income earners,” he added.

He said a detailed assessment is needed, but the overall direction is apparently clear. “A large number of taxpayers will end up paying more tax despite the increase in the tax-free income threshold,” he added.

Despite Bangladesh Bank's campaign to promote a cashless society, cash remains the dominant mode of payment in the country, accounting for 67.2% of total transactions in 2025, according to the central bank's latest annual report.

Data from Bangladesh Bank's payment systems department shows that digital platforms accounted for 32.8% of total transaction value during the year.

The figures, however, indicate gradual progress. In 2024, cash transactions accounted for 72% of total transactions, with the remainder conducted through digital channels.

According to the report, Tk209 lakh crore out of total Tk311 lakh crore was conducted in cash in 2025, while digital mode shared Tk102 lakh crore.

Digital payments include transactions through systems such as Real Time Gross Settlement, National Payment Switch Bangladesh, Bangla QR, internet banking and mobile financial services.

However, cash withdrawals and deposits through bank branches, ATMs or MFS agents are classified as cash transactions because physical money changes hands.

A transaction remains digital only as long as it stays within the digital ecosystem. Once cash is withdrawn or deposited, it is counted as a cash transaction, said a central bank official.

Informal economy remains a major hurdle

Experts say the persistence of cash reflects the size of the informal economy, where a significant transaction remains outside the formal banking system.

Although mobile financial services, digital banking and QR-based payment solutions have expanded rapidly, many businesses and individuals continue to prefer cash for convenience and to avoid greater financial scrutiny.

Syed Mahbubur Rahman, managing director and CEO of Mutual Trust Bank, said, "The country's informal sector remains outside the banking system. A large share of economic transactions takes place there in cash, and we have not yet been able to bring these activities into formal financial channels."

Dr Md Zahid Hussain, former World Bank lead economist in Dhaka, said building a cashless society would remain difficult unless the informal sectors are brought under the formal financial system.

"Large businesses in transport, agriculture, and wholesale-retail trade continue to operate outside banking channels. Many of them are reluctant to join the formal system because doing so would expose them to taxation and regulatory oversight," he said.

Infrastructure, trust challenges

Bankers also point to infrastructure constraints as a major barrier to digital adoption.

Many consumers still lack access to smartphones, reliable internet connections or the digital skills needed to use electronic payment systems. Small merchants and rural businesses often lack the infrastructure required to accept digital payments.

Syed Mahbubur said policy support alone would not be enough to accelerate the shift.

"Digital payment systems must become easier, more accessible and more convenient if we want people to adopt them on a larger scale," he said.

Dr Md Touhidul Alam Khan, managing director and CEO of NRBC Bank, said banks face a dual challenge of ensuring security while making digital services simple enough for users with limited digital literacy.

He warned that fraud incidents, failed transactions and complicated interfaces may erode trust and push users back toward cash.

The banker also stressed the need for an inclusive transition, saying the objective should be to expand consumer choice rather than eliminate cash.

Digital payment adoption remains sluggish even as the country continues to bear the substantial costs of a cash-driven economy. According to banking sector estimates, Bangladesh spends between Tk20,000 crore and Tk22,000 crore annually on printing currency notes.

Although Bangladeshis have been eating less rice over the past two decades, public spending remains heavily concentrated on rice production, according to a new World Bank report.

As a result, investments in higher-value farming subsectors such as livestock, fisheries, vegetables and agro-processing are ultimately being discouraged, said the report.

Launched yesterday, the report, titled “Repurposing Agricultural Public Spending for Quality Growth and Jobs in Bangladesh’s Agrifood System”, found that rice occupies around 72 percent of cultivated land and receives about 80 percent of subsidy benefits.

Similar to subsidies, public spending is also heavily skewed towards rice, the report said.

High-value and fast-growing subsectors including livestock, fisheries, forestry, fruits and vegetables contribute nearly three-quarters of agricultural gross domestic product but collectively receive less than 20 percent of public spending support.

“This subsidy and public spending imbalance reinforces a structural bias away from diversification, even as diets and markets continue to shift toward higher-value foods,” the report added.

The report launch was jointly organised by the World Bank and the South Asian Network on Economic Modeling (Sanem) at Sheraton Dhaka.

Speaking at the event, Mansur Ahmed, senior economist at World Bank, said consumer demand is shifting away from cereals towards higher-value products, including fruits, vegetables, fish, livestock products and processed foods.

“A large share of agricultural spending continues to be directed toward fertiliser subsidies and rice-related support, while investments in research, extension services, innovation, market connectivity, and climate resilience remain relatively limited.”

According to Ahmed, as the country’s agri economy evolves, public spending must evolve with it.

The report found that agri research received only 4 percent of total outlays, while knowledge dissemination accounted for 8 percent and irrigation infrastructure 5 percent.

Together, these patterns point to a spending mix that is misaligned with the sector’s potential to support diversification, create better jobs and build a more competitive agrifood economy, according to the report.

Jonaed Shohol, research analyst at the World Bank, said more than 90 percent of agricultural spending is directed toward crops, with rice receiving the overwhelming share of support

“At the same time, livestock, fisheries, and other high-value agricultural activities which offer growing opportunities for income generation, employment, nutrition, and exports receive comparatively limited resources.”

He added that while these policies have contributed to food security gains, they leave limited fiscal space for investments that can drive long-term productivity growth.

The researcher said the challenge is no longer the level of spending but how effectively resources are allocated.

SUBSIDY BENEFITS TILT TOWARDS BIG FARMERS

The report also found that the top 20 percent of landholders receive about half of all fertiliser subsidy benefits in Bangladesh, while the bottom 40 percent receive only 15 percent.

It said fertiliser subsidies remain the largest form of farming support, accounting for about 80 percent of the agri ministry budget.

These subsidies have helped farmers maintain production and price stability. However, because support is linked to the amount of fertiliser purchased, farmers with more land receive a larger share of the benefits, the report said.

The World Bank noted that Bangladesh places a high priority on agriculture, allocating about 10 percent of total public spending to the sector.

“Yet, agricultural growth has slowed, productivity gains have weakened, and diversification into higher-value products has lagged.”

According to the report, correcting these imbalances could substantially raise yields and improve productivity.

The World Bank recommended expanding soil testing, strengthening farmer advisory services and rolling out the Farmer’s Card and e-voucher system so that agricultural support reaches poorer and climate-vulnerable areas.

It said better-targeted support could gradually free up resources for investments that raise productivity, promote higher-value agriculture and benefit poorer farmers.

MAKING SUBSIDIES MORE PRODUCTIVE

Jean Pesme, division director for Bangladesh and Bhutan, said that by modernising subsidy delivery and aligning public spending with emerging opportunities, Bangladesh can build a more resilient and productive agricultural sector while ensuring better value for public resources.

Selim Raihan, professor of economics at Dhaka University and executive director of Sanem, said the composition of agricultural spending has become a central concern.

“A growing share of the budget is allocated to recurrent subsidies, which limits fiscal space for high-return public investments such as research, extension services, irrigation, rural infrastructure, storage, marketing systems, food safety, and climate adaptation. These are the areas that drive long-term productivity growth and structural transformation,” he said.

Food and Agriculture Organization (FAO) Representative in Bangladesh Jiaoqun Shi said Bangladesh faces significant challenges in fertiliser use because of reliance on traditional farming practices, urea-heavy subsidies, limited soil testing and weak extension services.

“Fertiliser use is often guided by generalised recommendations rather than soil-specific nutrient requirements, as access to soil and fertility mapping remains limited. The subsidy structure favours urea, encouraging its overuse while discouraging balanced application of other essential nutrients and organic inputs,” he said.

Uzma Chowdhury, director at the PRAN-RFL Group, said all government departments are working to increase production, but insufficient attention is being paid to market development and distribution systems.

“Without alignment between producers and consumers, market distortions arise. The presence of multiple intermediaries prevents farmers from receiving prices that cover production costs or generate adequate income,” she said.

“Livestock, fisheries, and other sectors operate under different cycles, and even products like salt have distinct supply chains. A uniform policy approach cannot address these diverse needs,” she added.

Agriculture Minister Mohammed Amin Ur Rashid highlighted ongoing efforts to reduce production costs and improve efficiency through better soil management, reduced fertiliser overuse and the expansion of solar-powered irrigation systems.

“We are also working to reduce import dependence in selected commodities such as onions, jute seeds, and ginger through structured medium-term planning,” he said.

Referring to structural challenges in the sector, the minister highlighted issues related to market information gaps, post-harvest losses and price volatility.

“To address these challenges, we are promoting better demand forecasting, decentralised storage solutions, and improved supply chain efficiency to ensure fair prices for farmers and stable access for consumers,” he said.

He also noted efforts to improve soil health and irrigation systems.

Bangladesh's proposed budget is a weak and in parts "unprofessional" fiscal and macroeconomic framework, with its welfare-oriented aspirations undermined by limited implementation capacity and questionable underlying assumptions, says Dr Debapriya Bhattacharya.

The economist, also a distinguished fellow at the Centre for Policy Dialogue (CPD), made the arguments about such budgeting paradoxes while speaking Monday at a Citizen's Platform for SDGs, Bangladesh briefing titled 'National Budget 2026-27: What Is There for the Disadvantaged Citizens?' in the capital.

Dr Debapriya notes that although the policy direction of the budget appears broadly thoughtful and shows sensitivity towards low-income and vulnerable groups, it is "ultimately built on an underdeveloped fiscal structure that risks limiting its real-world impact".

He argues that the macroeconomic assumptions underpinning the budget do not fully align with current economic realities, pointing in particular to inflation, wage dynamics and savings trends.

According to him, FY26 growth of 4.14 per cent has failed to deliver inclusive outcomes as it has not translated into lower prices, meaningful employment expansion or improved earnings for disadvantaged populations.

He also questions the credibility of the inflation target of 7.5 per cent, saying that it appears disconnected from prevailing price trends.

Dr Debapriya further notes that low- and middle-income households are currently under a "triple pressure" of high inflation, stagnant real wages and declining savings, forcing many families to draw down their limited reserves simply to meet basic consumption needs.

He thinks expectations of a rapid economic recovery under the government's recovery, restoration and reconstruction approach are unrealistic within a one-year timeframe, given the structural constraints in key productive sectors.

He draws attention to weakness in major employment-generating sectors, noting that large-scale manufacturing growth fell to 1.76 per cent in FY26, while ready-made garment export earnings declined by 1.9 per cent between July and April, placing additional pressure on a sector that sustains millions of workers, particularly women.

He has stressed that without stronger momentum in agriculture, small and medium enterprises, garments and modern services, the benefits of growth would continue to bypass ordinary citizens.

He observes that past budgets have repeatedly relied on overstretching revenue-collection targets, a pattern he says is being repeated again, raising questions about feasibility in the absence of deeper institutional reform and improved tax governance.

However, Dr Debapriya points out that achieving these targets would require revenue growth of 52.9 per cent from a base that already missed its FY26 target by 22.7 per cent, making the assumptions appear highly ambitious.

He further highlights that around 59 per cent of incremental revenue is expected to come from indirect taxes such as value-added tax, customs duty and supplementary duty, a structure he says raises concerns of tax equity because such taxes affect consumers uniformly regardless of income level.

Value-added tax alone accounts for 32.9 per cent of the FY27 revenue target and 41.2 per cent of the incremental revenue, which he argues places disproportionate pressure on lower-income households.

He also warns that adjustments in VAT on essential goods and services, including LPG cylinders, restaurant meals and construction materials, could further increase cost-of-living pressures.

In addition, he notes, individuals earning between Tk 31,250 and Tk 37,500 per month may face higher marginal tax rates, adding to the fiscal burden on sections of the middle class already affected by inflation and weak income growth.

While critical of the fiscal structure, the economist acknowledges that the budget reflects a notable increase in social-sector prioritisation. According to the Citizen's Platform analysis, 59.5 per cent of incremental spending has been directed towards education, health and social protection, and social-protection expenditure has risen to 2.11 per cent of GDP and 15.39 per cent of the total budget, marking its highest level on record.

He notes that the government has consolidated social-security programmes from 95 to 90 and expanded Government-to-Person digital payments, now reaching over 32.6 million beneficiaries across 29 programmes, alongside the introduction of initiatives such as the Family Card and Farmer Card.

These steps, he says, indicate a policy shift towards welfare orientation, although he cautions that weak implementation capacity could limit their effectiveness.

He further points out that civil service pensions alone account for 24.51 per cent of total social-protection spending, which in effect reduces the fiscal space available for broader vulnerable populations.

He also mentions persistent gaps in coverage for informal-sector workers, climate-affected communities, indigenous people, Dalit population, persons with disabilities, third-gender communities and urban slum-dwellers, many of whom remain insufficiently targeted by existing programmes. The analyst also criticises the absence of unemployment insurance and the continued lack of a dedicated social-protection framework for informal workers, despite their large share in the labour market.

On external financing, Dr Debapriya cautions that the planned borrowing of around US$9.5 billion from institutions, including the International Monetary Fund, the World Bank and the Asian Development Bank, requires careful scrutiny to ensure that associated conditions do not adversely affect marginalised communities.

He also reiterates that energy subsidies are necessary but warns that the mechanisms for delivering such subsidies remain unclear. He further argues that wealth and inheritance taxes remain underutilised as potential revenue sources, while reliance on indirect taxation continues to dominate fiscal strategy.

At the same time, he says, increased taxation on savings instruments and financial assets risks discouraging small savers who depend on these instruments for financial security.

The High Court has directed the Bangladesh Securities and Exchange Commission (BSEC) to take necessary steps within one month to resolve complications surrounding the utilisation of unused initial public offering (IPO) funds of listed export-oriented textile manufacturer Ring Shine Textiles Ltd.

The company formally informed BSEC of the court's Rule Nisi through a letter to the regulator's chairman on 4 June, issued in response to Writ Petition No. 2872 of 2026.

Ring Shine claims that despite receiving shareholder approval, it has not been allowed to utilise the remaining IPO proceeds, hampering its business expansion plans and putting several industrial land leases at risk over unpaid liabilities to the Bangladesh Export Processing Zones Authority (BEPZA).

In its letter, the company alleged that prolonged delays and restrictions imposed by the regulator have prevented it from using the funds, severely affecting both its ongoing operations and expansion plans.

Near-unanimous AGM approval

Shareholders approved a special resolution at the 27th Annual General Meeting on 18 December 2024, with 99.994% of votes cast in favour. The resolution extended the timeframe for utilising the IPO proceeds by another year and revised the utilisation plan for approximately $3.6 million in remaining funds, including accrued interest, according to company disclosure.

Ring Shine said it submitted all required documents to BSEC including price-sensitive information disclosures, AGM minutes, and e-voting reports but the regulator did not approve its application to use the funds for shareholder-approved purposes, including settlement of outstanding dues to BEPZA. Multiple subsequent applications also failed to produce any resolution, and the IPO fund account maintained with BRAC Bank remains frozen.

Why the company goes to court

Ring Shine said it approached the High Court only after exhausting all administrative avenues, with the board filing a writ petition under Article 102(2) of the Constitution on 11 May 2026.

Legal experts noted that the issuance of a Rule Nisi indicates the court considers the matter worthy of judicial review and has sought explanations from the concerned parties. The final verdict could set an important precedent on the balance between shareholder decisions and regulatory authority in the utilisation of IPO proceeds.

Company's position

Speaking to The Business Standard, Ring Shine Managing Director Aniruddha Pial said the company had complied with all BSEC rules, regulations, directives, and corporate governance requirements before obtaining shareholder approval for the revised utilisation plan.

He said approximately $3.3 million in unused IPO funds has remained idle for a prolonged period despite overwhelming shareholder approval, while long-standing dues to BEPZA, subject to an annual surcharge of 24%, continue to accumulate. BEPZA has also been cancelling industrial plot leases over unpaid obligations.

Pial claimed that nearly one-third of the company's leasehold land has already been cancelled and is subject to legal disputes, adding that repeated requests to BSEC to release the funds in line with the AGM-approved resolution were unsuccessful.

He alleged that nearly a year after the application was submitted, the commission rejected the proposal and declined to implement the AGM decision, with a subsequent review petition also failing to produce any effective response.

"On one hand, investors' money remains unused, while on the other, suspended and cancelled plots are threatening the company's operations. With no alternative left, we sought relief from the High Court," he said.

He added that while the court has given one month to resolve the issue, the funds have yet to be released, with 20 days still remaining under the court order.

Risk of losing BEPZA land

The company said its inability to use the IPO proceeds prevented it from clearing outstanding liabilities to BEPZA, which has already cancelled the leases of industrial plots numbered 231–236 and 157–163. Final cancellation notices have also been issued for plots 224–231, 237–260, and 79–84.

Located in the Dhaka Export Processing Zone, these plots are considered critical to Ring Shine's manufacturing operations. The company warned that losing them could amount to the loss of nearly one-third of its allocated land, posing an existential threat to the company and potentially disrupting production, causing job losses, and significantly harming shareholder investments.

Ring Shine Textiles raised funds through an IPO in 2019, with plans to use the proceeds for business expansion, machinery acquisition, debt repayment, and working capital. However, changing business realities, rising costs, and other operational challenges prevented the company from implementing the original utilisation plan, and efforts to revise the allocation of remaining funds subsequently led to disagreements with BSEC.

Market participants believe the case has once again highlighted concerns over the proper utilisation of IPO proceeds and the protection of investor interests, reigniting debate over how much flexibility listed companies should be granted in adapting IPO utilisation plans to evolving business conditions.