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.

Sri Lanka has expressed that the time is opportune to elevate its relations with Bangladesh to a higher level, underscoring the importance of arranging a state-level visit between the two friendly nations in the near future.

The observation was made by Sri Lanka's acting Foreign Minister Arun Hemachandra during a farewell call by Bangladesh High Commissioner to Sri Lanka Andalib Elias in Colombo yesterday, according to a press release issued on the occasion.

During the meeting, Hemachandra highly appreciated the Bangladeshi envoy's contributions to strengthening bilateral relations throughout his tenure in Colombo.

Expressing satisfaction over the progress achieved in bilateral cooperation, the acting Foreign Minister said Dhaka and Colombo should seize the opportunity to further advance their partnership through enhanced political engagement and high-level exchanges.

He particularly stressed the need for arranging a state-level visit between the two countries at an early date to open new avenues of cooperation.

High Commissioner Elias reaffirmed Bangladesh's commitment to deepening bilateral cooperation and expanding engagement with Sri Lanka in areas of mutual interest.

The envoy also expressed gratitude to the acting Foreign Minister for his personal support, guidance and goodwill throughout his diplomatic assignment in Sri Lanka.

The meeting reflected the longstanding friendship between Bangladesh and Sri Lanka and their shared determination to further strengthen and elevate bilateral relations in the years ahead.

Every budget season in Bangladesh unfolds with a familiar ritual. The finance ministry unveils an ambitious revenue collection target, wrapped in promises of growth, macroeconomic stability, and development, while economists raise quiet eyebrows. The National Board of Revenue then spends the rest of the fiscal year scrambling to close an ever-widening gap.

The current fiscal year 2025-26 is proving to be no different. Revenue growth has remained sluggish amid a slowing economy, weakening private sector expansion, persistent inflation, and mounting pressure on businesses already struggling with rising costs and deep financial uncertainty.

Compounding these challenges are the NBR’s own institutional inefficiencies, which have further undermined collection efforts, leaving the revenue authority staring at a shortfall approaching Tk 1 lakh crore in the first nine months of FY26.

Despite these strains, the state’s appetite for revenue continues to grow. Rising expenditure demands are driven by the new government’s pledges on social protection programmes, including several targeted cards and higher allocations for health and education. This has only widened the distance between what Bangladesh needs and what it can raise.

Against this backdrop, the government is preparing another ambitious target for FY27 of over Tk 6 lakh crore, a 20 percent increase over this fiscal year’s revised budget, aimed at lifting the tax-to-GDP ratio that fell to just 6.8 percent last year, one of the lowest in the world for an economy of Bangladesh’s size and trajectory.

This reality is difficult to avoid: Bangladesh’s fiscal framework is increasingly caught between rising expenditure demands and a revenue system struggling to keep pace with economic reality. Each year, the targets grow taller. But the gap between ambition and achievement widens.

Over the last decade, the tax administration has been missing its targets.

For instance, the last fiscal year (FY25), the tax authority’s overall receipts were Tk 370,874 crore, falling short of its revised target by Tk 92,626 crore. The government initially aimed to collect taxes of Tk 480,000 crore in FY25 but ultimately slashed the target by Tk 18,500 crore.

Although such shortfalls have become almost routine, they are increasingly exposing deeper structural weaknesses in the country’s tax administration and broader economic governance. The problem lies not only in poor collection performance, but also in the way revenue targets are set-- often unrealistically and without adequate alignment with prevailing economic conditions.

This ‘unplanned’ targeting system has turned into a persistent institutional failure, placing enormous pressure on NBR officials to meet ambitious goals through ad hoc and often arbitrary tax collection measures. In many cases, that pressure ultimately trickles down to ordinary citizens and compliant businesses, further worsening public frustration and weakening confidence in the tax system itself.

On top of that, the tax system badly needs rigorous reform and automation, with the separation of tax policy from tax administration. Unfortunately, the process that began with the interim government has now stalled after being lapsed by the Parliament.

Following widespread criticism, the BNP-led government later formed a nine-member committee to review the Revenue Policy and Revenue Management Ordinance, 2025, along with its subsequent amendment. The committee, headed by Prime Minister’s Adviser on Public Administration Ismail Zabiullah, has been tasked with scrutinising the contentious reform measures and assessing their administrative and policy implications.

Finance Minister Amir Khosru Mahmud Chowdhury has recently acknowledged as much and gone further, offering a rare public critique of the mindset that has long governed tax policy in Bangladesh.

“Tax policymakers need to understand the pain of business, the pain of industry, and the pain of ordinary people,” he said at a recent discussion in Dhaka.

“A certain mindset has developed in taxation: ‘I need tax, so take this much percent from here, that much percent from there.’ When tax falls short, the thinking becomes-- take this much from here, that much from there. It is simply a matter of making the numbers add up.”

“By trying to make the numbers add up through taxation, you cannot bring about any real change,” he said.

That is precisely why policymakers are now speaking of the need for a qualitative transformation, one that moves beyond bureaucratic entanglements, arbitrary target-setting and reactive tax measures.

If pursued properly, the ongoing reform efforts could provide Bangladesh with an opportunity to rebuild a more rational, efficient and credible tax system.

Unless the country can break free from this pattern of “big budgets and bigger revenue deficits”, the ritual will continue unchanged. Targets will rise, collections will fall short, deficits will deepen, and next year, someone will once again sit down, sharpen a pencil, and write an even bolder number than before.

Stalled mass rapid transit (MRT) projects receive a substantial sum of Tk 126.49 billion in ADP allocations for the upcoming fiscal year as the government vows to construct three Dhaka metro-rail lines after prolonged dilemmas, officials say.The long-stalled MRT-1 and MRT-5 (Northern) lines have got significant allocations in the FY27 Annual Development Programme (ADP).The ongoing MRT-6 project has also been given a hefty allocation, Planning Commission officials say.

The National Economic Council (NEC) has approved a Tk 3.0-trillion ADP for FY27, where nearly 1,150 development projects, including the MRTs, have got large allocations.Economy Forecast Reports.In the new ADP, the MRT-1 line from Dhaka airport to Kamalapur has grabbed Tk 73.50 billion, 817-percent higher than that in the FY26 Revised ADP (RADP).

MRT-5 (Northern route) from Hemayetpur to Vatara secures Tk 34 billion, which is 431-percent higher.

Besides, MRT-6 from Uttara to Kamalapur, which is near completion, gets Tk 18.99 billion, in an 86-percent increase.

The Executive Committee of the National Economic Council (ECNEC) approved both the MRT-1 and MRT-5 (northern) projects in October 2019 with a combined estimated cost of Tk 937.9998 billion.

The estimated project cost for MRT-1 was Tk 525.61 billion and that for MRT-5 was Tk 412.39 billion.

Japan International Cooperation Agency (JICA) is financing all three MRTs.A senior Roads and Highways Division official told The Financial Express they had sought higher funds for the three projects."We are trying to restart the construction of MRT-1 and MRT-5 stalled for long. We recently held a meeting with all the parties, including the fund provider, for expediting work," he added.

Another official of the division says since the bidding prices of some of the packages of MRT-1 and MRT-5 are much higher than official estimations, they are working to renegotiate with the bidders to reduce prices.Finance Daily Reports

"We are hopeful of settling the issues within a short period of time and restarting construction," he adds.

A senior Planning Commission official says they have allocated higher funds for the stalled MRT projects in response to the demand of the Roads and Highways Division.

"Since they've vowed to restart construction, we have allocated higher funds," he adds.

Information and Broadcasting Minister Zahir Uddin Swapon says that due to Bangladesh’s import dependence on fuel oil, prices been increased to keep pace with the ongoing international crisis.

“Populist decision-making is not the only job of the government, the job of the government is to maintain good governance in the long term,” he said in response to a question while speaking to the media at the Secretariat on the first working day after the Eid holidays on Monday.In response to reporters’ questions regarding the increase in fuel oil prices, the information minister said, “You probably know that since the day the energy crisis began, all the countries that are dependent on import-based energy have been increasing prices in line with the international crisis. Everyone knows that even though everyone else has increased prices, our government has maintained fuel prices at their old level for a long time, despite being an import-dependent country.

“We have to import fuel. Our power minister and state minister have regularly informed the nation about this and provided the statistics. But if it is true that we have to continue importing, then we will have to continue relying on import capacity.”The Ministry of Finance and the Ministry of Power, Energy, and Mineral Resources have already formed an advisory committee under the leadership of Wahiduddin Mahmud to deal with the war situation, the minister said.Financial Planning Services.He said, “The government is acting on the advice of the advisory committee and the advice of Wahiduddin Mahmud, a prominent economist in the country. According to his counsel, prices have not been increased for a long time.“Again, the crisis is not over yet, and we will have to continue importing. The government has to keep running while keeping all these things in mind.”

Gold prices fell on Monday ‌as renewed US-Iran tensions pushed the dollar and oil prices higher, fuelling fears of inflation and reinforcing the higher-for-longer interest rate outlook.

Spot gold was down 0.8 percent at $4,498.89 per ounce at 0909 GMT after ​hitting a two-week high on Friday. The yellow metal dropped 0.9 percent in May, ​its fourth consecutive monthly fall.

US gold futures for August delivery fell 1.4 percent to $4,528.90.

The dollar edged higher, making greenback-priced bullion more expensive for holders of other currencies.

The ​US said it struck Iranian military sites over the weekend and Iran’s Revolutionary Guards on Monday ​said they had targeted a US base in response, the latest exchange of attacks amid negotiations to end the three-month-old war.

“The optimism surrounding negotiations between the US and Iran aimed at ending the standoff ​in the Strait of Hormuz faded over the weekend,” ActivTrades analyst Ricardo Evangelista said. “As a ​result, energy prices rebounded, reviving inflation concerns and reinforcing hawkish Federal Reserve expectations.”

Brent crude oil prices gained ‌more than 3 percent after the latest strikes. Higher oil prices can accelerate inflation and keep interest rates higher for longer. While gold is traditionally seen as a hedge against inflation, it loses its appeal in a high-interest-rate environment as a non-yielding asset.

Traders are now pricing ​in a Fed rate ​hike this year, with a 40 percent chance of a quarter-point increase in December, according to CME Group’s FedWatch tool.

A host of Fed board members are set ​to speak this week, while major data releases are scheduled to ​include the ⁠ISM survey of manufacturing and the May payrolls report on Friday.

“Traders will be closely watching this week’s key data releases as these have the potential to reshape expectations regarding the future ⁠path ​of Fed monetary policy, influencing demand for the US ​dollar and, consequently, the performance of gold prices,” Evangelista said.

Spot silver rose 0.7 percent to $75.79 per ounce, platinum gained 0.4 percent ​to $1,925.26 and palladium fell 0.8 percent to $1,343.55.

Chinese companies in 15 key industrial sectors received vastly more state support than their international competitors between 2005 and 2024, according to an OECD report released on Monday.

The 15 sectors received $108 billion in 2024 alone, according to data compiled by the Organisation for Economic Cooperation and Development in its Manufacturing Groups and Industrial Corporations (MAGIC) database.

Between 2005 and 2024, it added, “Chinese firms received on average three to eight times more government support than firms based in the OECD, a conservative estimate.”

“These subsidies were also considerably higher than the support received by firms based in non-OECD economies such as Brazil, India and Indonesia.”

The Paris-based organisation of 38 member countries said its “conservative” estimate was based on disclosures by the biggest companies in the 15 sectors, which underpin entire segments of the global economy.

It considers direct subsidies, tax breaks and favourable loans from banks and public financial institutions -- at times below their base lending rates -- to be public support.

“For Chinese firms, almost 60 percent of their global market share gains can be explained by the subsidies they received,” the OECD said.

Chinese firms have carved out huge market shares over 20 years in sectors such as solar panels, shipbuilding and steel, not because they are better than their US or European competitors but because of their unparallelled state support, it added.

- Effect of subsidies -

With subsidies, they have more financial leeway to invest in new production sites, more time to reach profitability and greater support against economic headwinds, according to the report.

This has led to overcapacity in some sectors, pushing down global prices to the detriment of other international players.

“Just like doping in sports, the risk is that subsidies help less productive players win unfairly at the expense of better, more innovative and more efficient ones,” the OECD’s Secretary-General Mathias Cormann told a press conference.

“Subsidies increased market share but that did not lead to significant gains in productivity or profitability,” Cormann added.

“Firms won market share not by being more efficient or more innovative but by being more heavily subsidised.”

The OECD looked at aerospace and defence; aluminium; car manufacturing; cement; chemicals; fertilisers; glass and ceramics; heavy machinery; semiconductors; shipbuilding; photovoltaic panels; steel; telecommunications equipment; rolling stock; and wind turbines.

Worldwide state support in these sectors reached its highest level since the 2008 financial crisis in 2023-24, amounting on average to 1.3 percent of companies’ revenues in 2024.

The OECD noted that the peak observed in 2009 coincided with a severe global recession, which was not the case in 2023-24.

That “indicates the recent increase in industrial subsidies to be more structural”, it added.

The global smartphone market is heading for its steepest annual contraction on record, with shipments projected to slump by 13.9% this year to 1.08 billion units, Counterpoint Research said on Monday, citing a worsening shortage of memory chips.

The forecast is a downgrade from the 12.4% decline projected in February, with the squeeze in global chip supply exacerbated by the Iran war.

Impact most acute at budget end of market

The impact is being felt most acutely in lower-end smartphones as chipmakers shift production capacity to AI-related chips, making entry-level devices less economical to produce.

Global smartphone wholesale prices rose 14% in the first quarter while shipments fell 3.1% year on year. That trend is expected to continue as inventory built before the supply shock becomes depleted, with some models priced below $150 likely to disappear from the market.

"Smartphone makers in the low and mid-tier are caught between cost increases they cannot absorb and consumers with limited spending power," said Wang Yang, a principal analyst at Counterpoint, an independent research company that publishes quarterly smartphone shipment data.

"The question is no longer how to grow shipments or market share, but whether to remain in the market at all."

The memory chip shortage is the most severe supply-side disruption the smartphone industry has faced, Wang said, adding that manufacturers are unable to offset the impact through pricing or product changes.

Premium end of the market more resilient

The premium segment has proven more resilient. Apple posted record revenue for the first three months of the year, helped by customers upgrading to its iPhone 17 series. Apple's 2026 shipments are expected to remain flat before rising 5% next year, Counterpoint projections show.

With more stable chip supply and stronger margins than many rivals, Apple is well placed to gain market share and could face less pressure to raise prices.

Samsung Electronics kept volumes steady in the first quarter and is expected by Counterpoint to register only a 4% decline in shipments over the full year, outperforming the wider market thanks to stable supply and a consistent product line-up.

Transsion, which is heavily exposed to the market for smartphones priced below $150, is forecast to suffer a 32% drop in shipments this year. Rivals Xiaomi and Honor, meanwhile, are projected to post full-year declines of 28% and 20% respectively, Counterpoint said.

Stocks edged higher in the first trading session after the week-long Eid vacation today (1 June), driven by strong investor participation on the buying side, which lifted both indices and turnover.

According to market data, the DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), rose 37 points to close at 5,372. Turnover also increased by 17% to Tk 912.38 crore.

Market momentum was largely supported by banking stocks, with strong buying interest in fundamentally sound issues. The banking sector alone accounted for seven of the top 10 contributors to the index gain.

BRAC Bank emerged as the single largest contributor, adding 5 points to the DSEX, according to data from the LankaBangla Financial Portal.

A majority of listed stocks recorded price gains. Of the traded securities, 179 advanced, 152 declined, while 55 remained unchanged at the DSE.

In its daily market commentary, EBL Securities said the benchmark index opened the post-Eid trading session on a positive note, supported by buoyant investor sentiment and continued interest in selective high-momentum stocks.

"The market was upbeat from the opening bell, building on post-Eid optimism that continued to fuel buying interest and drive broad-based price appreciation across most scrips for a sixth consecutive session," it said.

On the sectoral front, engineering stocks accounted for the highest share of turnover at 17.4%, followed by banking (16.0%) and pharmaceuticals (12.4%).

Most sectors posted positive returns, with IT, life insurance and banking leading the gains. In contrast, jute, tannery and general insurance sectors recorded the highest corrections.

Among individual movers, Sonargaon Textiles topped the gainers' list, rising 10% to Tk49.5 per share, followed by Golden Son, which gained 9.93% to Tk16.6, and Nahee Aluminum, up 9.32% to Tk37.5.

On the other hand, Premier Leasing led the losers, falling 7.40% to Tk2.5 per share, followed by Union Capital, down 6.52% to Tk4.3, and Prime Finance, which declined 6.06% to Tk3.1.

The Chittagong Stock Exchange (CSE) also ended the session in positive territory. The CSCX and CASPI indices advanced by 45.2 points and 61.0 points, respectively.

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.