Bangladesh Bank (BB) has instructed all scheduled banks to give priority to farmers affected by recent heavy rainfall in receiving agricultural credit under its refinancing scheme, aiming to support recovery efforts and protect farm production in vulnerable regions.

The directive was issued today (Tuesday) through a Financial Inclusion Department (FID) circular, BSS reports. Bangladesh Economic Report

According to the circular, banks have been asked to ensure quick and priority-based loan disbursement to farmers in flood-affected haor and other areas where intense rainfall has damaged crops and disrupted agricultural activities.

The central bank said farmers in districts such as Sylhet, Sunamganj, Habiganj, Kishoreganj, Netrokona and Moulvibazar have suffered significant losses due to recent adverse weather conditions, making timely access to credit crucial for restoring agricultural production and livelihoods.

To facilitate the process, BB also instructed banks to prioritize Krishak Smart Card holders while extending loans from the refinancing fund for marginal and landless farmers, sharecroppers, small account holders and micro-enterprises.

The move is aimed at ensuring that affected farmers can obtain working capital quickly for crop rehabilitation, purchasing agricultural inputs and continuing farming operations despite weather-related setbacks.

The central bank, however, clarified that eligible farmers should not be denied access to loans solely because they have not yet received a Krishak Smart Card.Finance Daily Reports

Bangladesh Bank said the special emphasis on flood-affected farmers reflects its commitment to supporting rural communities facing climate-induced challenges and maintaining food production across the country.

All other provisions of the existing refinancing scheme will remain unchanged, the circular added.

Non-performing loans (NPLs) in the banking sector jumped by Tk 31,487 crore in the first three months of this year after a slight decline owing to the reclassification of rescheduled loans, lacklustre recovery, and overall economic slowdown.

At the end of March this year, total NPLs in the banking sector stood at Tk 588,704 crore, accounting for 32.26 percent of the total Tk 1,824,668 crore in disbursed loans, according to the latest data from Bangladesh Bank.

By the end of last year, the ratio of classified loans had dropped to 30 percent from 36 percent in September 2025, thanks to large-scale loan rescheduling under a special policy support programme by the BB.

Of the total NPLs, 94 percent falls into the bad and loss category, a level that economists say reflects not just economic stress but a breakdown of financial discipline among the country’s most powerful borrowers.

“Loan defaulting has emerged as a damaging culture in the country,” said Mustafa K Mujeri, executive director at the Institute for Inclusive Finance and Development (InM) and former BB chief economist.

“We are now seeing that even some of the country’s largest business conglomerates have become loan defaulters,” he said.

“These groups have received various forms of policy support from the government and Bangladesh Bank over the years, yet they still fail to repay their loans,” added Mujeri.

The economist blamed the rising volume of NPLs on a lack of strict action against defaulters, pointing out that these conglomerates cite a range of global and domestic challenges to obtain policy support, but they do not use those facilities to settle their debts.

“Under loan rescheduling schemes, many of these borrowers have been granted up to 10 years to repay their loans, yet a number of them eventually default again,” he said.

Instead of continuing to provide concessions to these defaulting borrowers, the authorities must take strict action against them immediately, Mujeri suggested, adding that otherwise the country’s banking sector will face serious consequences.

Meanwhile, bankers also point out that some top borrowers and businesses have suffered losses due to weak demand amid high inflation and the economic slowdown caused by the war in the Middle East.

Many good loans are showing signs of stress, and the overall banking sector is going through a downturn, which is why NPLs may have increased, said Mashrur Arefin, chairman of the Association of Bankers, Bangladesh (ABB).

Arefin, also the managing director and CEO of City Bank, said when discussing the reasons for the spike in NPLs, either the policy support cases were overhyped, many borrowers could not make the required down payments, or external auditors did not agree with many of the weak cases during annual profit audits.

He added that some weak banks with newly formed boards decided to take higher provisioning hits once and for all, which also contributed to the increase.

According to BB, compared with a year earlier, bad loans increased by Tk 168,370 crore. At the end of March 2025, NPLs stood at Tk 420,334 crore, with a ratio of 24.13 percent.

Due to the high volume of defaulted loans in the banking sector, the provision shortfall stood at Tk 205,665 crore as of March this year, data shows.

A provision shortfall in banking refers to the gap between the funds a financial institution is legally required to set aside to cover potential losses from bad loans and the amount it actually has in reserve. When borrowers fail to repay, banks must absorb these losses by drawing on current profits or core capital.

NPLs in the banking sector have continued to rise since the fall of the Awami League-led government on August 5, 2024, as many businessmen fled the country and many of their businesses shut down, pushing up bad loans.

Large borrowers such as S Alam, Beximco, AnonTex, Abdul Monem, Nassa Group, and Sikder Group defaulted on a large scale after the fall of the Awami League government in August 2024, causing an unprecedented rise in bad loans.

Central bank data states that NPLs at state-run banks stood at Tk 149,785 crore, accounting for 46 percent of their disbursed loans. Bad loans at private commercial banks stood at Tk 416,482 crore, representing 31.1 percent of their disbursed loans.

NPLs at foreign banks stood at Tk 3,263 crore, or 5 percent of their outstanding loans.

NPLs at specialised banks stood at Tk 19,175 crore, or 41 percent of their disbursed loans, the data shows.

The upcoming budget for fiscal year 2026-27 will seek to widen economic participation by bringing traditionally overlooked groups into the mainstream economy, Finance and Planning Minister Amir Khosru Mahmud Chowdhury said yesterday.

Speaking at a pre-budget discussion organised by the Economic Reporters’ Forum, he said the government aims to create greater opportunities for low-income households, farmers, artisans, cultural workers and women to contribute to and benefit from economic growth.

The minister described the budget as an effort to “democratise the economy”, ensuring that the gains of development reach a broader segment of society rather than being concentrated among a few groups.

Particular emphasis has been placed on supporting women, especially homemakers, whose contributions to family welfare and the wider economy have largely remained outside formal economic structures, he added.

“The budget will also include measures aimed at strengthening livelihoods for farmers, artisans and cultural workers, while expanding opportunities for lower-income families to participate more actively in economic activities,” he said.

To reduce out-of-pocket healthcare expenses for people across the country, a groundbreaking Universal Primary Healthcare project will be implemented nationwide through a collaboration between NGOs and the private sector, he added.

For instance, he said the government’s planned Family Card and Farmers Card programmes could be managed by private firms and NGOs to minimise political influence, improve transparency and reduce leakages.

The minister acknowledged that weak implementation has long undermined the effectiveness of public spending, despite successive governments announcing large budgets and development programmes.

“Budget implementation has been a problem. That is a correct observation,” he said, adding that the government is now trying to identify where projects get stuck and who is responsible for delays.

To address the issue, the government plans to introduce digital dashboards to monitor every development project, he said. “The dashboards will be accessible to individual ministries, the finance ministry and the Prime Minister’s Office, enabling authorities to track progress in real time and identify officials responsible for missed deadlines.”

Also speaking at the event, Fahmida Khatun, executive director of the Centre for Policy Dialogue (CPD), identified revenue mobilisation as one of the biggest challenges for the upcoming budget, warning that Bangladesh has consistently failed to meet its tax collection targets over the past decade.

She spoke in favour of higher spending on education, healthcare and social protection, but noted that the real concern is whether the government can generate the revenue needed to finance its ambitions.

“Simply raising tax targets will not work without deep institutional reforms in revenue administration,” she said, adding that successive governments have relied on piecemeal measures instead of comprehensive reforms.

The policy expert also cautioned against putting greater pressure on existing taxpayers while failing to widen the tax net and tackle evasion.

She warned that excessive bank borrowing by the government could fuel inflation and crowd out private investment by pushing up lending rates.

Fahmida described inflation control as the budget’s foremost challenge, urging policymakers to focus spending on agriculture, energy, transport and logistics to ease supply constraints and boost production.

Sustainable growth, she said, will ultimately depend on better governance, stronger institutions, improved investment conditions and a stable law-and-order situation.

Azam J Chowdhury, chairman of East Coast Group, emphasised several longstanding concerns, including reforms to the Workers’ Profit Participation Fund (WPPF), removal of dividend double taxation, continuation of tax incentives for the ocean-going shipping industry, and simplification of land mutation procedures.

He called for a revision of the WPPF framework to ensure benefits reach workers as intended, while also addressing compliance challenges faced by listed companies.

Chowdhury emphasised the need for a more predictable tax regime and policy continuity to encourage private investment.

He also urged the government to go for administrative reforms, saying lengthy approval processes, particularly for land mutation and energy-sector investments, continue to deter businesses and delay new projects.

Shawkat Aziz Russel, president of the Bangladesh Textile Mills Association (BTMA), said supporting existing factories to upgrade capital machinery would yield faster and greater returns than building new facilities from scratch.

Modern equipment could raise productivity by 30-40 percent on average and, in some cases, by as much as 300 percent, while reducing gas and electricity consumption by around 30 percent, he said.

He stressed that such assistance should be implemented without delay, warning that lengthy decision-making processes have weakened the sector’s competitiveness.

The BTMA chief also criticised the interim government’s handling of the industry, saying timely policy support could have prevented the closure of hundreds of spinning mills and garment factories.

Russel further expressed concern over rising extortion and deteriorating law and order, noting that creating jobs and sustaining industrial growth remain essential to addressing such problems.

Chaired by Doulat Akhtar Mala, president of ERF, the event was moderated by Abul Kashem Khan, general secretary of ERF.

For more than a decade, the unveiling of the national budget has triggered a familiar chorus of reactions. Headlines routinely describe it as a “big budget”, a “massive budget” or a “debt-driven budget”, as if its size alone determines its significance.

Politicians, business leaders and ordinary citizens have all weighed in with sharp quips. Some dismiss it as nothing more than a “numbers game”. Others argue that the headline figure looks “impressive” but says “little” about the government’s actual spending capacity.

Yet a comparison with neighbouring countries tells a different story.

In terms of government expenditure as a share of gross domestic product (GDP), which is the value of all goods and services the country produces in a year, Bangladesh has one of the lowest ratios in South Asia and among countries scheduled to graduate from the least developed country club.

In simple terms, Bangladesh’s budget is like a small water tank serving a rapidly growing city.

The culprit? Mainly weak revenue collection. Relative to the size of its economy, Bangladesh’s tax take is among the lowest in the world.

But why does budget size matter in the first place?

Basically, government expenditure finances essential public services such as healthcare, education, law enforcement and public administration. Higher spending on healthcare and education generally benefits ordinary and marginalised people the most.

In 2024, Bangladesh’s government expenditure stood at just 12.03 percent of GDP, according to International Monetary Fund (IMF) data.

In the same year, government expenditure accounted for 28.38 percent of GDP in India, 19.47 percent in Pakistan and 19.32 percent in Sri Lanka. The ratio was 27.13 percent in Bhutan, 17.26 percent in Cambodia, 23 percent in Hong Kong and 16.84 percent in Indonesia.

In neighbouring Myanmar, government expenditure in 2024 amounted to 23.4 percent of GDP. Among countries graduating from the LDC category, the ratio in that year stood at 33.55 percent in Senegal and 35.81 percent in the Solomon Islands.

Globally, only a small number of fragile economies, including Ethiopia, Haiti, Sudan and Yemen, recorded lower government expenditure-to-GDP ratios than Bangladesh.

According to Fahmida Khatun, executive director of local think tank Centre for Policy Dialogue (CPD), the country’s limited public spending reflects weak revenue mobilisation rather than fiscal restraint. It is also linked to longstanding weaknesses in project implementation.

“But the main reason behind low government expenditure is low revenue collection,” she said.

The National Board of Revenue (NBR) collected Tk 370,874 crore in fiscal year 2024-25, falling Tk 92,626 crore short of its revised target. The original target had been Tk 480,000 crore before being reduced by Tk 18,500 crore.

As a result, the tax-to-GDP ratio dropped to just 6.8 percent, one of the lowest among countries at a similar stage of development.

Fahmida attributed the poor revenue performance to institutional weaknesses, limited administrative capacity within the revenue board and governance shortcomings.

She also pointed out that even the resources collected are not always used efficiently. Delays, cost overruns and implementation bottlenecks often prevent public spending from delivering the expected economic benefits.

The problem extends to foreign financing as well. Bangladesh has access to substantial external funding. But many foreign-assisted projects suffer from implementation delays, reducing the country’s ability to utilise those foreign resources.

The consequences are far-reaching.

Government spending supports essential services, builds infrastructure and strengthens social protection programmes. These investments improve living standards, reduce inequality and create conditions for stronger economic growth.

Infrastructure spending is particularly important because it encourages private investment and job creation.

“If physical infrastructure does not improve, private-sector investment will not be encouraged, and economic growth may fall short of its potential,” said Fahmida.

She said higher and more efficient public spending could therefore make a substantial contribution to both economic development and social welfare.

However, increasing expenditure alone is not enough. The quality and timeliness of spending matter just as much, added the economist.

The country’s development spending has long been hampered by implementation weaknesses.

According to the Implementation Monitoring and Evaluation Division (IMED), only 41.41 percent of the revised Annual Development Programme (ADP) allocation was utilised during the first 10 months of fiscal year 2025-26.

That means the challenge is not simply the size of the budget. It is also the state’s ability to execute projects efficiently.

The factory has remained closed for 24 years since 2002, while losses have continued to mount year after year. There is also no publicly disclosed information indicating that production will resume anytime soon.

Despite the company's deteriorating financial condition, Meghna PET Industries' recent share price tells a completely different story.

Over the past three months, the company's stock has surged by nearly 245%, raising the eyebrows of market insiders.

Meghna PET owns and operates an industrial plant for processing of integral mineral water, PET bottle manufacturing and filling of edible oil and selling of mineral water and edible oil.

In the fiscal 2024-25, it incurred a loss of Tk4.40 crore with a per-share loss of Tk2.75, and did not recommend any dividends for its shareholders.

According to data of the Dhaka Stock Exchange, in March, its share price was Tk24 apiece, which gradually rose to Tk82.9 yesterday.

Trading in the stock remained halted for the past two consecutive sessions. Although there were buyers at the maximum daily price limit, no sellers were available, the data showed.

Despite the sharp surge in the share price of the closed company, the lack of action from regulatory authorities such as the Bangladesh Securities and Exchange Commission and the DSE has raised questions among market participants.

A similar scenario is also seen in the case of Meghna Condensed Milk. The company has remained out of production since December 2021.

Its retained loss as of June 2024 stood at Tk145 crore, surpassing its total assets of Tk140 crore.

However, its stock has witnessed sharp price rallies in recent months, raising concerns among market participants over the disconnect between the company's fundamentals and its market performance.

On 18 January, Meghna Condensed Milk's share price stood at Tk12.1, while it closed at Tk46.1 yesterday, marking a 280% increase over the period.

Market insiders said a group of investors had targeted low-paid-up capital companies such as Meghna PET Industries and Meghna Condensed Milk because their relatively small number of outstanding shares makes it easier to drive up prices.

They alleged that some influential investors were spreading rumours about potential ownership changes and fresh investment that could restart operations at full capacity, despite production remaining suspended.

To inform the investors, the DSE published a list of closed firms in January this year.

An official at the DSE, seeking anonymity, told TBS, "We can aware investors only about informing the status of the company. In line with the motto, we have already published a list of non-performing companies. Investors should invest at their own risk."

Al-Amin, a professor in the Department of Accounting at the University of Dhaka, criticised the apparent lack of regulatory action.

"The share price of a company that has been closed for 24 years is increasing in front of everyone's eyes. This clearly indicates that some group in the market is playing a role in driving up the price of this share," he said.

Prof Al-Amin added, "Even though the share price of a non-producing company is increasing, neither the BSEC nor the DSE is taking any initiative. There is negligence on the part of the regulatory bodies in investigating why the price is rising and taking necessary measures."

Questioning the adequacy of the exchange's response, he said it was important to consider whether the responsibility of regulators ended with the publication of a list of closed companies.

"In cases of companies with abnormal price hikes, the stock exchange or the commission can take action in the interest of investors, yet they are doing nothing," he added.

Attempts to obtain comments from BSEC spokesperson Abul Kalam were unsuccessful, as he did not respond to telephone calls.

The Trump administration has proposed a new ​punitive tariff of 25% on many imports from Brazil, after deciding its practices were unfair on a range of issues from digital trade to ‌illegal deforestation, top trade official Jamieson Greer said late on Monday.

The measures, under the Section 301 trade statute, cover areas such as electronic payment services, preferential tariffs, intellectual property protection and ethanol market access as well, the Office of the United States Trade Representative said.

The proposed new tariff, subject to public consultation ahead of a July 15 deadline, would exclude some items, such as beef, coffee, rare earths, other metals, energy ​and aircraft parts.

The USTR said its unfair trade practices investigation into Brazil, started last year under Section 301 of the Trade Act of 1974, had found practices ​that "are unreasonable and burden or restrict US commerce," opening the door for a punitive tariff.

Greer, speaking on CNBC, called the Brazil action "quite ⁠nuanced" because of the broad exemptions. He said that the trade agency will release the findings of several more Section 301 unfair trade practices investigations in coming weeks, adding ​that substantial tariffs were needed to correct a "giant" US trade deficit.

Brazil's Foreign Ministry did not immediately respond to a request for comment.

Two Brazilian officials familiar with the matter said the ​justifications for a new US tariff ignored many of the arguments presented by Brasilia in recent months, suggesting the motives were political rather than technical.

Despite a White House visit last month by President Luiz Inacio Lula da Silva, bilateral relations have turned chilly.

US Secretary of State Marco Rubio designated Brazil's two biggest criminal gangs as terrorist organizations over objections from Brasilia, opening the door for more aggressive interventions in the ​country.

Days earlier, Lula's main rival in the October election, Senator Flavio Bolsonaro, had argued in favor of the terrorist label during a tour of Washington that included meetings with Rubio, ​Vice President JD Vance and President Donald Trump.

"I expressly asked President Trump not to tariff our companies," Bolsonaro wrote on X on Tuesday. "Tariffs are not the solution."

Tariff replacements

The USTR's proposed new tariff would ‌partially replace ⁠a tariff of 50% on many Brazilian goods imposed last year by Trump, with 40% as a punishment for Brazil's prosecution of the Brazilian senator's father, former President Jair Bolsonaro.

The US Supreme Court struck down those duties in February.

In a statement, Greer said he launched the Section 301 investigation to tackle "longstanding and pervasive US concerns with certain of Brazil's trade policies and practices."

Despite recent engagement with Brazilian President Inacio Lula da Silva and his cabinet, Greer said the United States and Brazil "continue to have substantial differences in resolving issues identified in ​this investigation."

6 July public hearing

The trade agency ​invited comment on the proposed tariffs through 1 July, with a public hearing set for 6 July. It faces a 15 July deadline for taking "responsive action" in the Section 301 investigation.

Trump used the same statute to impose sweeping tariffs on Chinese goods during his first term.

The USTR has several other open ​Section 301 investigations that are expected to lead to new duties.

Among these are one covering excess industrial capacity in China and 15 ​other trading partners, as ⁠well as one into enforcement of forced labor bans in 60 countries.

The agency opened a new investigation on Friday into Vietnam's intellectual property practices.

Regarding its Brazil findings, the USTR said the proposed new 25% tariff would not apply to Brazilian imports subject to national security-related tariffs under Section 232 of the Trade Expansion Act of 1962.

These include 50% duties on steel, aluminum and copper ⁠and 25% ​duties on finished products made from those metals, as well as a 25% duty on motor vehicles and ​auto parts.

The USTR said products exempted from the proposed 25% tariffs included many fruits and nuts, crude oil and petroleum products, pharmaceutical compounds, organic chemicals and fertilizers.

These are in addition to beef, coffee, rare earths, certain other ​metals and ores and Brazilian aircraft and aircraft parts.

In the first days of March, Petrobangla went looking for an emergency cargo of liquefied natural gas (LNG), and no seller would bid. A second tender drew nothing either. Only by negotiating one-to-one did it secure two cargoes, one at $28.28 per million British thermal units against $9.99 in December. The war that closed the Strait of Hormuz exposed something harder to fix than price: the way Bangladesh buys gas.

The budget the finance minister presents on June 11 will answer that with money. He has told parliament the war will require roughly Tk 36,000 crore in extra power, energy and LNG subsidies between March and June. The LNG share alone could reach $1.07 billion in a single quarter, against the Tk 9,000 crore set aside for the whole year. The cheque pays the bill. It does not change why the bill keeps coming.

Bangladesh believed it had two kinds of protection: long-term contracts for steady supply and the spot market as a backup. The war showed they were the same protection in two guises. Its contracted gas comes from QatarEnergy, Oman’s OQ Trading and the American firm Excelerate, and its spot cargoes come from the same region through the same strait. When Qatar declared force majeure in early March, the other suppliers followed because their gas originated in the same place. Qatar alone was due to ship about 40 of this year’s 115 cargoes and Oman another 16, so two safety nets turned out to be a single bet.

The Excelerate arrangement makes the point. While it appears to diversify supply, the gas still originates in Qatar and passes through the same route. When Qatar stopped, the apparent diversification disappeared.

Look at this the way a fund manager would. Bangladesh has concentrated almost everything in one price formula, one route and one chokepoint. No one would run an investment portfolio that way. The country does not mainly have a price problem to subsidise; it has a portfolio nobody designed.

India shows the alternative. Its Qatari cargoes were affected too, but over years it spread purchases across different price formulas and sea routes. Some gas is priced off the American benchmark Henry Hub, near $3, while Asian spot prices surged past $20, and it travels across the Atlantic, far from Hormuz.

Fahmida Khatun has rightly argued for a portfolio approach with caps on any single source. The next step is recognising that buying from more countries is not the same as buying on more price formulas or routes. It is the latter that matters when a key shipping lane closes.

The deeper fixes are real, and the budget should fund them: more domestic gas, more solar and less waste. But none of that changes the cargoes the country must buy next month. The tool is already in hand. In May, the World Bank doubled its energy facility for Bangladesh to $700 million, allowing Petrobangla to finance LNG purchases through letters of credit and short-term credit lines. Right now, it is being used only to pay this year’s premium.

Used by the finance ministry and Petrobangla to anchor a standing framework, it could support three rules: buy a set share of gas on price formulas other than oil so one spike cannot move the whole bill; buy a set share through routes that avoid Hormuz so one closed strait cannot halt supply; and maintain a cleared list of sellers, with the exit clauses this crisis showed were missing, before the next shock.

A budget that only raises the subsidy treats the symptom, not the cause. Bangladesh has been buying gas like a price-taker. It can start buying like an investor who spreads risk, so no single shock can corner the country.

India and Oman today (1 June) enforced a bilateral free trade accord which offers zero-duty access for 99.38% of India's exports to the Persian Gulf country, the Indian commerce ministry said.

All zero-duty concessions under the bilateral Comprehensive Economic Partnership Agreement (CEPA) come into effect immediately, providing certainty and competitiveness to Indian exporters, the ministry said in a statement.

Earlier, under the Most Favoured Nation regime, only 15.33% of India's exports entered Oman duty-free. With CEPA, Indian exporters gain substantial price competitiveness in Oman's nearly $28 billion import market.

Speaking on the occasion, Indian Commerce Minister Piyush Goyal said that with 99.38% of India's exports receiving duty-free access, the CEPA, signed in December last year, unlocks new opportunities for Indian exporters and professionals.

India, in turn, has offered tariff liberalisation on 77.79% of tariff lines covering 94.81% of imports from Oman by value, while maintaining strong safeguards for sensitive sectors.

Products including dairy products, cereals, fruits, vegetables, edible oils, oilseeds, rubber, leather, spices and key agricultural products have been kept out of CEPA in order to protect India's domestic industries, said the statement.

India is only the second country, after the United States, to secure a comprehensive bilateral trade pact with Oman.

The CEPA will strengthen India's dominance in fisheries, meat, eggs, marine products, and processed foods with duty elimination.

Oman offers a gateway to the Gulf Cooperation Council countries and East Africa and Oman's logistics hubs at Sohar, Duqm, and Salalah are expected to amplify India's regional trade connectivity.

To mark the entry into force, the first consignments availing preferential tariff benefits under the agreement, including agriculture and gems and jewellery exports from Mumbai, Kolkata, and Chennai, were flagged off.

Oman is India's second-largest trading partner in the Gulf region and serves as a strategic gateway to the wider GCC market through its advanced port infrastructure.

Bilateral trade between India and Oman reached $11.18 billion in FY2025-26, up from $10.61 billion in FY2024-25.

All marine products, including shrimp, fish, and cuttlefish, will get immediate duty-free access, replacing earlier import duties of up to 5%.

Oman's marine imports stood at $35.3 million in 2025, while India's exports accounted for only $10 million, indicating substantial untapped potential.

Import duties of up to 5% on gems and jewellery have been eliminated from day one.

Indian exporters gain a structural price advantage over competitors from Italy, Turkey, Thailand, and China.

Oman's total gems and jewellery import market is $1.07 billion annually. India's exports to Oman in this sector stood at $25.78 million in 2025, comprising $18.48 million in polished natural diamonds and $6.67 million in gold jewellery.

It is projected that exports could increase sixfold to $150 million within three years.

Clusters in Surat (diamonds), Jaipur (gemstones), Mumbai, Kolkata, and Chennai are positioned to capture this growth.

India is Oman's second-largest agricultural supplier with a 17.8% share in Omani imports. Duty elimination strengthens India's competitiveness in products such as honey, condiments, cashews, basmati rice, butter and sweet biscuits.

India currently accounts for over 94% of Oman's bovine meat imports and over 98% of fresh egg imports, making Oman one of India's most important agricultural export destinations in the Gulf region.

The government is likely to unveil its full-term tax plan on June 11, outlining income tax-free limits and tax rates for individual taxpayers up to the fiscal year 2030-31 (FY31), the final year of its tenure.

Under the plan, the tax-free income threshold is expected to gradually rise to Tk 4.5 lakh by FY31 in an effort to ease pressure on taxpayers amid persistently high inflation.

At present, individuals can earn up to Tk 3.5 lakh a year without paying income tax. This limit is set to increase to Tk 3.75 lakh in FY28 under the interim government’s earlier two-year tax framework.

Finance Minister Amir Khosru Mahmud Chowdhury is expected to go further in his first national budget on June 11 by introducing a broader three-year predictable tax system running through FY31.

Under the proposed roadmap, the tax-free income threshold will rise to Tk 4 lakh from FY29 and remain unchanged through FY30.

Prime Minister Tarique Rahman approved the proposal in principle on May 14 during a high-level meeting at the Secretariat, according to finance ministry officials who attended the meeting.

“The government wants to introduce a predictable tax plan so that taxpayers can set their financial plans accordingly,” a senior finance ministry official said, adding that the higher threshold would offer modest relief to lower-income earners.

However, economists and tax analysts have questioned whether the planned increases are sufficient given persistently high inflation.

“One positive aspect is that the government is providing predictability in tax policy. At the same time, it is making some adjustments for inflation, although we need to assess whether the increase fully matches inflation in percentage terms,” said Towfiqul Islam Khan of the Centre for Policy Dialogue.

Others argue that deeper structural issues remain.

“While policymakers understand the political economy needs to raise the tax-free threshold, they are also constrained by institutional pressure to boost revenue collection. Ultimately, that consideration appears to be driving their decisions,” Khan said.

“This is precisely why we have argued for separating tax policy from tax administration and revenue collection,” he added.

Inflation has remained around 9 percent since March 2023, significantly eroding real incomes. In April, inflation stood at 9.04 percent, according to the Bangladesh Bureau of Statistics.

Amid rising living costs, economists and business groups have repeatedly called for a higher tax-free income threshold, with many proposing an increase to Tk 5 lakh.

“Globally, setting tax rates in advance helps with planning, but international best practice usually limits this to a two- or three-year window, along with an automatic inflation adjustment mechanism,” said tax policy analyst Snehasish Barua.

He warned that extending fixed tax brackets until FY31 could create structural distortions in the tax system.

“Locking in fixed tax brackets until 2031 means that as prices rise, people will be pushed into higher tax brackets without any real increase in their purchasing power or wealth,” said Barua, managing director of SMAC Advisory Services.

He also expressed concerns about fairness, saying that partial adjustments could disproportionately affect middle-income earners. “Global tax standards also emphasise vertical equity. If only the initial tax-free threshold is raised while higher slabs remain unchanged, it creates an unfair ‘middle-class squeeze’,” he said.

Barua added that predictability should be balanced with flexibility, arguing that “long-term fiscal certainty must be paired with proportional, inflation-linked adjustments across all income slabs, rather than rigidly fixed rates stretching to 2030–31,” to align with global norms.

In a striking development for Bangladesh's banking sector, non-performing loans (NPLs) increased by Tk31,000 crore within a three-month period. Compared directly with the December quarter, defaulted loans increased by Tk31,488 crore in the March quarter.

By the end of March this year, total defaulted loans had surged to Tk5,88,704 crore, representing a staggering 32.26% of the total loans disbursed. Currently, the total volume of loans disbursed across the banking sector stands at Tk1,824,668 crore.

Sluggish private credit growth and economic stagnation

The first major factor driving the high ratio of non-performing loans is that private credit growth has slowed down significantly, preventing a meaningful increase in total credit. Private sector credit growth has fallen to 4.72%, indicating that the country's overall macroeconomic situation is not very good.

Businessmen are taking fewer loans from banks to conduct business. Instead of expanding new businesses, they are struggling to repay their previous loans. Furthermore, the fuel crisis caused by the war in the Middle East in March has made it more difficult to do business.

Because of these challenges, the country's large business groups have accepted policy support from the Bangladesh Bank. Therefore, if credit growth in the private sector can be successfully increased, the total amount of defaulted loans will naturally decrease.

Low collection, compounding interest, and auditing shift

Secondly, the volume of defaulted loans has mounted due to a combination of low collection rates and interest added directly to the outstanding debt.

In this regard, Bangladesh Bank spokesperson and Executive Director Arief Hossain Khan told The Business Standard, "Loan collection has decreased. Moreover, interest is levied on loans every quarter, which is why the amount of defaulted loans has increased compared to before."

Third, Bangladesh Bank has utilised qualitative assessment while finalising the financial statements of banks. As part of this approach, certain loans identified during the central bank's inspection and assessment have been formally shown as defaulted, directly contributing to the increase in the overall amount of defaulted loans.

Banking practices: Rescheduling vs write-offs

In light of these numbers, some private management directors told TBS that write-offs are usually reduced in the first quarter of the year. In contrast, during the last quarter of the year, write-offs are aggressively increased to make the balance sheet look stronger.

A senior official in a private bank benchmarked this behaviour, pointing out that defaulted loans had previously been reduced from 35% in September to 30% in December.

However, many banks have not been writing off debts following the International Financial Reporting Standards model. Most banks have rescheduled instead of writing off.

"If you just reschedule, there is no benefit in dragging out the loan for 10 years; the defaulted loans will increase. Therefore, these bad loans should be written off instead of rescheduling," a senior official in a private bank said.

Another senior official of a private bank noted that the overdue loan period has been increased to 90 days, and the amount of defaulted loans in the banking sector has been increasing ever since. "On the other hand, during the March quarter, the number of defaulted loans in banks was heavily impacted by broader stagnation."

Macroeconomic stagnation and corporate distress

Syed Mahbubur Rahman, managing director and CEO of Mutual Trust Bank (MTB), believes that in the current economic situation, many companies are failing to do business properly and repay their debts to banks on time.

He observed that large companies are receiving various policy support from the central bank because of these persistent strains.

"Currently, there is a kind of stagnation in the economy. Due to this, many companies are not able to expand their businesses, and many are defaulting due to not being able to do business properly. Again, many institutions are not able to pay down payments on time," Mahbubur told TBS.

Critical factors behind the surge

Md Touhidul Alam Khan, MD and CEO of National Bank, outlined several critical factors explaining the mechanics behind the current NPL surge.

Regarding historical issues surfacing, he noted that previously hidden bad loans from major corporate groups are now being exposed under stricter oversight, revealing years of concealed financial irregularities that artificially suppressed NPL figures.

According to him, the expiration of moratorium periods and loan deferrals has forced banks to reclassify distressed accounts, leading to a sharp increase in reported NPLs as temporary relief measures ended.

Severe economic pressures, such as persistent inflation, rising borrowing costs, and global trade disruptions, have severely impacted business cash flows, making debt servicing difficult even for legitimate enterprises amid political and economic instability.

Governance failures, including weak risk management, inadequate credit evaluation, and poor collateral assessment, have created inherently vulnerable loan portfolios, while political interference in lending decisions has fostered a "culture of default" among influential borrowers.

At the same time, political interference in lending decisions has fostered a culture of default among influential borrowers.

Ultimately, the current crisis represents both the unveiling of historical mismanagement and genuine economic stress, creating a complex, dual challenge for the banking sector's ongoing recovery efforts.

Finance and Planning Minister Amir Khosru Mahmud Chowdhury today (Tuesday) said the core philosophy of the upcoming national budget is the democratization of the economy and bringing poor and marginalized communities into the mainstream of economic activities.

“The low-income people have historically been the most deprived in Bangladesh’s budgetary framework. Therefore, we have given priority to the poor, low-income groups and homemakers (housewives) in the upcoming budget,” he said, BSS reports.

The minister made the remarks while addressing a seminar titled “Budget 2026–27: Expectations and Reality” as the chief guest in the capital today, organised by the Economic Reporters Forum (ERF).

ERF President Daulat Akter Mala chaired the seminar. Executive Director of Centre for Policy Dialogue (CPD) Dr Fahmida Khatun, Chairman of East Coast Group Azam J Chowdhury and President of the Bangladesh Textile Mills Association (BTMA) Shawkat Aziz Russell attended the programme as special guests. ERF General Secretary Abul Kasem moderated the event.

The Finance Minister also said the next national budget seeks to address rising poverty, expand economic opportunities for marginalised groups and reduce bureaucratic obstacles to business, despite being prepared under exceptionally difficult circumstances.

“Preparing a national budget within one and a half months of assuming office was almost impossible, noting that the process normally takes at least six months,” he said.

He said the government inherited a fragile economy marked by declining indicators, weak investment, growing unemployment and rising poverty, but was nonetheless required to present a budget within the constitutional timeframe.

“The economy has reached a level where significant intervention is needed to restore stability and put it back on the path to prosperity,” he said, likening the situation to priming a tube well by pouring water into it before groundwater can be drawn.

Responding to criticism over the size of the budget amid economic challenges, Khosru said the government was investing heavily to revive economic activity and rebuild confidence.

He said the budget prioritises low-income and disadvantaged groups who have traditionally been overlooked in national fiscal planning.

Among the key initiatives, he highlighted the expansion of the Family Card programme, under which financial assistance will be transferred directly to women heading households through bank accounts, minimizing opportunities for corruption and political influence.

The minister claimed that a pilot project recorded only a 1-1.5 percent deviation rate and expressed confidence that the programme could achieve near-perfect targeting in future.

He also underscored the government’s focus on farmers through the introduction of Farmer Cards, aimed at strengthening food security and improving rural livelihoods.

On healthcare, Khosru said the government is moving towards universal primary healthcare, noting that Bangladeshis spend a disproportionately high share of their own income on medical treatment.

He said the programme would be implemented through partnerships involving the private sector and non-governmental organisations rather than relying solely on government agencies.

The finance minister also announced significant support for what he termed the “creative economy”, including artisans, weavers, folk craftsmen, performers, theatre artists and other cultural workers.

Under the initiative, targeted groups will receive skills training, access to finance, design assistance, branding support and opportunities to market products online, drawing inspiration from successful international models such as Thailand’s “One Village, One Product” programme.

Khosru said economic growth should not be measured solely through industrial production, arguing that creative industries and cultural activities also contribute significantly to gross domestic product (GDP).

“Our vision is the democratisation of the economy,” he said. “Economic participation and the benefits of growth must reach every citizen and every community.”

The minister reiterated the government’s commitment to strengthening the private sector, describing it as the primary driver of economic growth while positioning the state as a facilitator rather than a regulator.

He announced plans to simplify regulatory procedures through a one-stop service system under which multiple approvals would be processed within specified timeframes.

Applications not acted upon within the prescribed period would be deemed approved, he said.

Calling for a “deregulated economy”, Khosru said excessive controls had constrained businesses, citizens and institutions for years.

On budget implementation, he acknowledged concerns over low execution rates and said the government would introduce digital monitoring systems across the ministries.

According to the minister, all development projects will be tracked through dashboards at the ministry, finance ministry and Prime Minister’s Office levels, allowing delays and bottlenecks to be identified in real time.

He said future project selection would be guided by four criteria: value for money, return on investment, job creation and environmental sustainability.

The government has already reviewed around 1,300 ongoing projects inherited from previous administrations and plans to cancel those that fail to meet the new standards while repurposing others to improve economic returns, he added.

Turning to the capital market, Khosru said the government is restructuring the securities regulator and expects to appoint a new professional leadership team within weeks.

He said reforms would help attract quality listed companies, reduce pressure on the banking sector and enable businesses to raise long-term financing through the capital market.

The minister also said international financial institutions and major investment firms, including global fund managers, had expressed interest in Bangladesh as economic reforms gather pace.

Khosru expressed confidence that the budget’s inclusive approach, coupled with stronger governance and implementation mechanisms, would help restore stability and lay the foundation for sustainable and equitable economic growth.

He said money under the Family Card programme would be transferred directly to beneficiaries’ accounts, ensuring no political influence or intermediary involvement in the process.

Referring to the agriculture sector, the minister said a “Farmers Card” initiative has been introduced to strengthen food security and improve farmers’ living standards.

On the health sector, Amir Khasru said people in Bangladesh continue to incur high out-of-pocket healthcare expenses. In response, the government is prioritising the expansion of universal and primary healthcare services with the participation of government institutions, the private sector and NGOs.

A surge of US crude oil is arriving in Asia, but the record volumes are nowhere near enough to offset the loss of cargoes from the effective closure of the Strait of Hormuz.

Asia’s imports of US ​crude were 63.56 million barrels in May, the most for a single month although at 2.05 million barrels per day (bpd) they were slightly ‌behind the 2.07 million bpd from June 2023, according to data compiled by commodity analysts Kpler.

However, more US oil is on the way, with Kpler tracking arrivals of 2.32 million bpd in June and 3.07 million bpd in July.

This is more than double the average of 1.37 million bpd of US crude that Asia imported in the three months to the end of February.

The ​United States and Israel attacked Iran on February 28 and Tehran retaliated by effectively closing the Strait of Hormuz, through which about 20 percent of ​global crude oil and refined products moved prior to the start of the conflict.

While some Middle Eastern exporters such as Saudi Arabia and the United Arab Emirates have managed to re-route some oil exports to ports outside the strait, at least 10 million bpd of supply remains unavailable ​as the Iran conflict drags on.

About 1.2 million bpd of crude reached Asia in May through the Strait of Hormuz as some vessels secured Iranian approval to transit, ​but this is down from the average of 13.54 million bpd in the three months ended February.

The scale of the loss of cargoes through the strait overwhelms the additional volumes Asia has secured from the United States, as well as from other exporters in the Americas and Africa.

Asia’s seaborne crude arrivals in May were 19.47 million bpd, up from 18.7 million bpd in April, ​which was the lowest in more than 10 years, according to Kpler data.

However, even May’s higher arrivals were still 22 percent down from the average of 24.82 million ​bpd for the three months to the end of February.

It’s this loss of more than 5 million bpd in supplies that will ultimately lead to tough choices for Asia’s refiners.

So far ‌they have managed to keep plants operating by a combination of using up commercial and in some cases strategic stockpiles, while also reducing processing rates.

But there are now questions being asked as to how much longer the world can continue to deplete inventories before refiners are forced to significantly cut back throughput amid crude shortages.

There is an emerging consensus among most analysts and oil executives that the clock is ticking louder.

It’s likely that the process won’t be spread evenly across the world, with some regions likely ​to be able to continue producing and ​refining oil at usual rates, but others struggling to secure supply.

Ultimately, if the Strait of Hormuz doesn’t reopen within the coming weeks and doesn’t remain open on a sustainable basis, it’s likely that prices for refined fuels will have to increase in order to force a reduction ​in demand.

Asia, which took about 80 percent of the usual volumes through the Strait of Hormuz, is the most exposed and ​it’s likely that less well-developed, fuel-importing countries such as Bangladesh, the Philippines and Pakistan will experience the pain soonest.

There are also likely to be increasing questions asked in the United States about the rapid depletion of inventories amid record crude and product exports.

US politicians from both major parties tend to focus heavily on domestic issues and it isn’t hard to see them increasingly opposing oil ​and fuel exports in the mistaken belief that this will somehow lower retail prices at home.

Profits at most non-life insurance companies rose in the first quarter (January–March) of the current year compared to the same period last year mainly due to the introduction of zero commission in non-life insurance, cost cuts against the growth in marine insurance business.

Industry stakeholders attributed the increase to the introduction of zero commission in non-life insurance, companies' efforts to reduce management expenses, and growth in marine insurance business. They also believe the sector could see further improvement if geopolitical tensions in the Middle East ease.

Stakeholders noted that regulators have long received complaints about irregularities involving individual agents, including excessive commissions, mis-selling of policies, misleading customers, unnecessary policy sales, and artificially inflated premium income shown on paper.

The Insurance Development and Regulatory Authority (IDRA) also have information that some companies used multiple software systems and undisclosed bank accounts to conceal commission-related transactions.

However, the removal of commissions is expected to reduce management expenses and lift profitability. As commission-based sales decline, unnecessary policy sales may also fall. Premium pricing could become more realistic and customer-friendly, artificial inflation of premium income may ease, and healthier market competition is anticipated.

According to Dhaka Stock Exchange (DSE) data, 39 of 43 listed non-life insurers have published their quarterly results so far. Of these, 31 reported higher profits in the first quarter compared to a year earlier, while eight reported lower profits. The remaining four companies have yet to release their results.

Non-life insurance companies primarily cover risks such as fire, health, motor, marine, engineering, and liability.

Strong performers

Desh General Insurance led the pack with profit growth of around 120%, posting a net profit of Tk44 lakh in the quarter against Tk20 lakh a year earlier. Its share price rose 2.54% to Tk24.20 today (2 June).

Peoples Insurance reported a 105% increase in profit, reaching Tk5.96 crore from Tk2.91 crore a year ago. The company said lower agency commission expenses, reduced operating costs, and fewer claim settlements helped cut costs, lifting profit, operating cash flow, EPS, and NOCFPS.

Phoenix Insurance recorded a 67% rise in profit, earning Tk2.62 crore compared with Tk1.57 crore in the same period last year. The company cited higher premium and other income for the growth, while investment gains improved NAV per share and stronger cash collections boosted NOCFPS. Its share price rose 4.36% to Tk43.10 today.

Pragati Insurance posted a 55% increase in profit, with EPS rising to Tk1.63 from Tk1.05 a year earlier. The company attributed the growth to higher operating and other income, improved premium cash collections, and gains in investments, dividend and interest receivables, and cash equivalents, all of which strengthened NAV per share. Its share price also rose 3.07% to Tk70.40 today.

Under pressure

Agrani Insurance reported a 48% decline in profit, with EPS falling to 17 paisa from 33 paisa a year ago. The company cited lower premium and other income alongside higher claim settlements as the key drivers of the weaker performance.

United Insurance posted a 46–47% decline in profit, with net profit falling to Tk1.07 crore from Tk2 crore, and EPS dropping to Tk0.24 from Tk0.45.

Speaking to TBS, Managing Director of United Insurance Khawja Manzer Nadeem said, around 15% of total income went towards claim settlements during the quarter, largely tied to a fire incident at the airport that required payouts to clients including Unilever. He noted that the company's underlying business performance was otherwise positive, but the elevated claims overshadowed the gains.

Green Delta Insurance saw profit fall 29%, Mercantile Islami Insurance by 19%, and Rupali Insurance by 18% during the same quarter.

Overall, the majority of non-life insurers reported profit growth in the first quarter, though higher claims and softer investment income continued to weigh on a handful of companies.

India and the United States are “about 99 percent” done with the first tranche of a trade deal, the commerce minister said, as a US delegation began talks in New Delhi on Tuesday.

The delegation, led by Assistant US Trade Representative for South and Central Asia Brendan Lynch, is holding three days of talks with Indian trade officials, as the two sides seek to close negotiations.

“About 99 percent of the issues have been settled,” Indian commerce minister Piyush Goyal told reporters in Delhi late Monday.

The two countries reached an initial understanding for the trade deal in February, but negotiations slowed after President Donald Trump’s sweeping tariff measures were struck down by the US Supreme Court.

After the court order, the Trump administration launched investigations into unfair trade practices against several countries, including India, while imposing a blanket 10 percent tariff.

Goyal said negotiators were examining how recent legal changes in the United States should be reflected in the final text of the agreement.

“I am fully confident that we will conclude and sign the first tranche of the bilateral trade agreement with the United States,” Goyal said, adding that discussions would then continue on a broader and more comprehensive pact.

“Discussions are continuing on minor details, essentially the commas and full stops.”

Last week, US ambassador Sergio Gor said he expected the interim trade deal to be signed “in the next few weeks”.

Washington and New Delhi have set a target of boosting bilateral trade to $500 billion by 2030, holding multiple rounds of negotiations since March to resolve market access and tariff disputes.

India says the deal protects its sensitive dairy and agricultural products while opening a $30 trillion market for exporters.

Oil prices rose more than 3 percent on Monday after Iran and the US traded strikes and Israel ordered troops to move further into Lebanon in its battle with Tehran-backed Hezbollah.

Brent futures rose $2.93 or ​3.2 percent to $94.05 a barrel at 0906 GMT. US crude futures rose $3.36 or 3.9 percent to $90.72 a ​barrel. Over May, Brent and WTI lost around 19 percent and 17 percent, respectively.

The fighting in ⁠the Middle East, after Washington hosted Israel-Lebanon peace talks on Friday, dimmed hopes that the US ​and Iran could soon announce an extension to their ceasefire.

The US said on Sunday it conducted "self-defence strikes" ​while Iran's Islamic Revolutionary Guard Corps said on Monday its aerospace force targeted an air base used for US attacks.

US President Donald Trump said on Friday he would soon decide on a proposed deal to extend a ceasefire announced in early ​April.

Israel would be key to any such deal, and Iran has said repeatedly that Hezbollah must be ​included. The US has proposed a "gradual de-escalation" plan, a US official said on Sunday.

Concerns are rising about mines in the ‌Strait ⁠of Hormuz, a key oil and gas shipping lane, IG analyst Tony Sycamore said in a note. "Even if an agreement is reached, it won't deliver a flood of supply," Sycamore said.

An Axios reporter said on X on Friday that Iran had dropped more mines in the strait earlier in the week.

Iran's ​Foreign Ministry spokesperson Esmaeil ​Baghaei said on Monday ⁠the delay in the diplomatic process to end the war can be explained by a lack of trust, Washington's contradictory positions and Israel's attacks on Lebanon.

Concerns ​over supply outweighed weekend economic data from China which showed stalling factory activity. ​This added to ⁠concerns the world's second-largest economy is losing momentum.

Saudi Arabia is likely to cut its official selling prices (OSPs) for crude oil to Asia in July for a second month, a Reuters survey showed.

Goldman Sachs said on Sunday weak ⁠oil demand ​in China and Europe poses a major downside risk to ​its fourth-quarter Brent crude forecast of $90 a barrel and WTI forecast of $83, although Middle East supply disruptions could still push prices ​higher.

Bangladesh is entering a critical phase in its trade outlook as it prepares for graduation from least developed country (LDC) status, according to a recent assessment by the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).The transition is expected to reshape the country’s access to key global markets and expose exporters to higher tariffs unless new trade arrangements are secured.

Bangladesh has formally requested a deferral of its LDC graduation from November 2026 to 2029, reflecting concerns over the loss of preferential access under key schemes, particularly the European Union’s Everything but Arms (EBA) initiative.The EBA framework has long underpinned Bangladesh’s export growth, especially in the ready-made garments sector, by providing duty-free access to European markets.

Under the current regional transition timeline, Bangladesh is still expected to graduate alongside other Asian LDCs in 2026, with most major trading partners likely to offer a three-year transition buffer. This would extend EBA-level benefits until around 2029, softening the immediate impact but not fully replacing long-term preferential access.A central concern highlighted by ESCAP is the erosion of trade preferences, which could affect billions of dollars in export earnings across Asia-Pacific LDCs. For Bangladesh, the impact is expected to be most pronounced in the garments sector, where preferential margins remain a key factor in global competitiveness.The EU is also preparing a revised Generalised Scheme of Preferences (GSP) for 2027-2034, including a strengthened GSP+ framework. Bangladesh may be eligible to apply for GSP+ after graduation, but access will depend on strict compliance with international standards covering labour rights, environmental protection and governance, alongside legal commitments under conventions of the International Labour Organization.

Bangladesh has already ratified several key ILO conventions, though implementation remains under close scrutiny, particularly in areas such as workplace safety, inspections and freedom of association.

Other major markets are also undergoing policy shifts. The United Kingdom’s Developing Countries Trading Scheme (DCTS) and Japan’s Generalised System of Preferences remain important for Bangladesh’s exports, but both are increasingly linking market access to sustainability and governance conditions.

China has introduced a zero-tariff regime for all LDCs, supporting exports from the poorest economies. However, Bangladesh is expected to lose this benefit after graduation, as China does not offer a comparable preferential framework for higher-income developing countries.

At the same time, the United States’ Generalized System of Preferences remains expired, meaning Bangladesh continues to face standard Most Favoured Nation tariffs in the US market, further limiting preferential access options.

ESCAP notes that Bangladesh’s long-term trade strategy will need to shift away from reliance on unilateral preferences towards deeper regional integration and reciprocal trade agreements. Frameworks such as the Asia-Pacific Trade Agreement and broader regional integration efforts are seen as key pathways to sustaining market access after graduation.

Remittance inflows in Bangladesh remained above $3 billion for the sixth consecutive month, hitting $3.42 billion in May, as expatriates sent more money home to support family spending for Eid.

Bangladesh Bank data showed that inflows rose by 15.34 per cent in May compared with those of $2.96 billion in May 2025.

The figure was $3.12 billion in April, $3.75 billion in March, $3.02 billion in February, $3.11 billion in January and $3.22 billion in December

In the first 11 months of the 2025-26 financial year, remittance receipts increased by about 19 per cent to $32.75 billion, compared with those of $27.5 billion in the corresponding period of the previous fiscal year, reflecting sustained growth in inflows.

Bankers said that seasonal factors played a key role in the surge, as migrant workers typically send higher amounts to support family spending for Eid.

This year, Eid-ul-Azha, one of the biggest religious festivals of the Muslims, was observed on May 28.

They also pointed to the ongoing Middle East conflict as an additional factor.

Many expatriates reportedly sent larger sums or transferred savings back home due to concerns over potential disruptions in host countries and financial uncertainty linked to the war.

The interbank dollar rate rose to about Tk 122.75 in May from Tk 122.27 in late February, indicating growing pressure on the local currency.

Bangladesh recorded more than $30 billion in remittance inflows for the first time in the 2024-25 financial year, with total receipts reaching $30.32 billion, up from $23.91 billion a year earlier.

Monthly inflows have remained above $2 billion since August 2024.

Officials said that policy support had contributed to the steady rise.

Since January 2022, the government has provided a 2.5 per cent cash incentive on remittances sent through formal banking channels.

Improved exchange rates and stricter monitoring of cross-border transactions have also encouraged expatriates to avoid informal transfer systems.

Higher remittance earnings have helped ease pressure on the balance of payments and support foreign exchange reserves.

According to the Bangladesh Bank, reserves stood at $30.1 billion under IMF methodology on June 1, while gross reserves were around $34.76 billion.

The Bangladesh Securities and Exchange Commission (BSEC) has again rejected Daffodil Computers Limited's plan to issue shares against loans, according to a stock exchange disclosure.

After facing the rejection of its initial plan, the IT sector firm in November last year reapplied to the commission for converting Tk49 crore loans, availed from one of its associate firms of the Daffodil Group, into equity.

With the shareholders' approval through an extra-ordinary general meeting (EGM), after revising its plan, it again applied to the commission, but the commission rejected converting loans into equity citing that the regulator is not in a position to accord its consent.

Daffodil Computers had availed Tk49.03 crore loans from Creative International, a concern of Daffodil Group. To offset the loan, it had planned to issue shares in favour of the lender company.

In its revised plan, the listed company sought stock market regulator nod to issue shares at Tk15 each with a plan of issuing total 3.27 crore shares.

In December 2024, its board had approved and subsequently submitted the plan to the commission to issue shares at Tk10 each against the loans.

Then, the commission rejected its share issuance plan as it had not secured its shareholders' nod. Later in December 2025, the company secured shareholders' nod on share issuance decision.

At that time, too, the securities regulator turned down the plan, citing that the move would unfairly favour the group's controlling interests while diluting the holdings and earnings of ordinary investors.

Now, Daffodil Computers faced a second time rejection for a share issuance plan for repayment of loans.

Daffodil Computers, one of the early technology companies listed on the stock exchange, remains a key entity within the Daffodil Group, which has diverse interests in IT, education, and media.

According to its quarterly financial statements, in the first nine months of the current fiscal year, it had reported declining revenue and profitability slightly.

In the July to March period, its revenue declined to Tk28.79 crore and net profit after tax to Tk1.16 crore, which was Tk30.28 crore and Tk1.56 crore respectively.

Daffodil Computers' shares closed 4.24% higher at Tk142.50 each on the Dhaka Stock Exchange (DSE).

Earlier, the company decided not to pay any dividend to its shareholders for the fiscal year of 2024-25. During the fiscal year, its earnings per share dropped by 24% to Tk0.16, compared to the previous year.

BRAC Bank PLC has signed two refinancing agreements with Bangladesh Bank.

The aim is to improve access to affordable finance for cottage, micro, small, and medium enterprises (CMSMEs). This step shows BRAC Bank's commitment to entrepreneurship and financial inclusion.

The agreements allow BRAC Bank to provide financing to entrepreneurs in different clusters across the country. Through Bangladesh Bank's Financial Sector Fund for MSMEs, the bank can offer low-cost credit support.

Through the Tk3,000 crore Cluster Finance Refinance Scheme, BRAC Bank will provide term loans and working capital. These loans support entrepreneurs in various industrial clusters. Eligible businesses can access financing at concessional rates starting from 7 per cent. This support helps expand businesses, boost productivity, and create jobs.

The second agreement lets BRAC Bank use the Tk1,500 crore Financial Sector Fund for MSMEs. MSMEs in the manufacturing and service sectors can get financing at a 7 per cent interest rate. The facility offers loans of up to Tk1 crore for microenterprises and up to Tk5 crore for small and medium enterprises.

Tareq Refat Ullah Khan and Nawshad Mustafa exchanged agreement documents at a ceremony at the Bangladesh Bank on 18 May 2026. Deputy Governor Nurun Nahar was present.

Husne Ara Shikha, Executive Director of Bangladesh Bank, and Mahbubur Rahman, Head of Cottage, Micro and Small Business and Liability and Cash Management, SME Banking, BRAC Bank, also attended.

BRAC Bank, as the country's leading SME-focused bank, continues to pioneer the expansion of access to finance for grassroots entrepreneurs, leveraging Bangladesh Bank's refinancing schemes. The bank states that these initiatives will foster business growth, job creation, and sustainable economic development across Bangladesh.

The government is going to expand social safety net programmes in the upcoming budget to check growing poverty amid an economic slowdown made complicated by regional wars.

This is one of the priorities of the newly elected government led by the Bangladesh Nationalist Party to set the platform for a welfare economy, said finance division officials.

In its first budget of the current five-year tenure on the back of war in the oil-rich Middle East, about 41 lakh family cards will be distributed at a cost around Tk 12,373 crore in the next financial year of 2026–27.

Farmer Cards would also be provided to 42 lakh beneficiaries with a financial allocation of Tk 1,062 crore in FY27.

Finance and planning minister Amir Khosru Mahmud Chowdhury has already said they are committed to the Family Card project referring it a cornerstone of the government›s commitment to social welfare and inclusive development.

Economists say targeting needy and poor through the card programme was a good idea, but it has implementation challenges like politics on selection and wastes of money.

Family Card holders will receive cash assistance of Tk 2,500 per month, while Farmer Card holders will receive Tk 2,500 once a year.

Both cards have already been launched on an experimental basis in line with the BNP’s electoral pledges.

The government will also increase the number of old-age allowance beneficiaries by one lakh in FY27 with a recipient currently getting Tk 700 a month.

The allowance is one of the government’s 95 social safety net programmes for which around Tk 1.17 lakh crore was allocated in FY26 national budget.

In FY27 national budget, the amount will go up to Tk 1.30 lakh crore, said the finance ministry officials.

Through the new budget, the government will also implement a decision that beneficiaries enjoying the privileges of Family Cards would not qualify for any other benefits under the social safety net programmes.

Even the government employees, pensioners, savings certificate holders, Trading Corporation of Bangladesh cards or vehicles registered with the Bangladesh Road Transport Authority will not be eligible, said the finance ministry officials.

The finance and planning minister said the government was actively identifying and rectifying initial implementation errors to ensure a long-term success of the family cards.

Bangladesh Institute of Development Studies director general AK Enamul Haque has suggested that the government should made randomised controlled trial on piloting cards distribution.

Randomised controlled trial is a type of statistical experiment designed to evaluate the efficacy or safety of an intervention by minimising bias, he said.

Terming the overall card programme as a good step, the BIDS DG says more important was overcoming the implementation challenges like political selection, duplication and wastes of money.

Institute for Inclusive Finance and Development Executive Director Mustafa K Mujeri says the government needed to expand social safety net progrmme to check growing poverty.

A recent World Bank report titled ‘Bangladesh Development Update: Special Focus – A Business Environment that Delivers Jobs’ projected around 1.4 million more people falling into poverty in the country in 2025, the rate reaching 21.4 per cent, which was 20.5 per cent in 2024.

Economists attribute falling growth in gross domestic products below 4 per cent in 2024-25 from 7 per cent 2021-22 on the back of double-digit inflation for the growing poverty.

Post service benefits of the public employees shown in the social safety net programme to show a bigger allocation should be excluded for the benefit of poor and needy people, economists say.

Almost a quarter of the overall allocation under the social safety net prograame is included with pension fund, added the economists.