The implementation of the Revised Annual Development Programme (RADP) recorded a slow pace during the first ten months (July-April) of the current 2025-2026 fiscal year, hitting an execution rate of 41.41 percent.

According to the latest report released by the Implementation Monitoring and Evaluation Division (IMED) of the Ministry of Planning, government agencies spent Tk 86,516.08 crore out of the total RADP allocation of Tk 2,08,935.53 crore earmarked for the fiscal year, UNB reports.

This performance indicates a notable slowdown in project execution compared to previous fiscal years, highlighting persistent challenges in administrative momentum and development spending following recent structural and political changes.

An analysis of the IMED data reveals a consistent downward trajectory in both RADP allocations and execution rates over the last few fiscal years.

In the current FY 2025-2026, out of a reduced RADP allocation of Tk 2,08,935.53 crore, the ten-month expenditure stands at Tk 86,516.08 crore, reflecting an execution rate of 41.41 percent.

During the same July-April period of FY 2024-2025, the expenditure was Tk 93,424.83 crore against an allocation of Tk 2,26,166.88 crore, yielding an implementation rate of 41.31 percent.

In FY 2023-2024, the implementation rate stood significantly higher at 49.26 percent with an expenditure of Tk 1,25,315.68 crore out of a Tk 2,54,391.64 crore allocation.

For FY 2022-2023, the execution rate was 50.33 percent with Tk 1,19,064.39 crore spent out of Tk 2,36,560.67 crore.

In FY 2021-2022, the 10-month implementation reached 54.57 percent, with an expenditure of Tk 1,19,829.74 crore out of Tk 2,19,601.91 crore.

The monthly progress for April also reflected a sluggish development drive.

In April 2026 alone, the government managed to implement only 5.22 percent of the development budget, translating to an expenditure of Tk 10,908.84 crore.

This single-month progress is slightly higher in percentage than the previous year's performance, where April 2025 recorded a 4.66 percent implementation rate with a spending of Tk 10,530.75 crore, but it remains heavily constrained compared to historical trends. Planning Ministry officials cited multiple structural issues contributing to the slower release and utilisation of development funds this fiscal year.

The primary setbacks include the ongoing rigorous review of development projects to realign national priorities, which has temporarily paused funds for several major initiatives.

Furthermore, administrative reshuffles, delays in appointing new project directors, and strict compliance checks on new procurements have extended execution timelines.

The exit or inactivity of several contracting firms following political transitions late last year has also left numerous physical infrastructure projects partially stalled.

With only two months left in the current fiscal year (May and June), ministries and execution agencies face tremendous pressure to fast-track their pending bills and accelerate construction phases if they are to prevent large sums of development funds from returning unutilized.

The European Union and Mexico will on Friday sign a deal reducing tariffs on each other's goods as both seek to lessen their dependence on trade with the United States.

The expansion of an accord dating to 2000 comes as Mexico fights hard to preserve a three-way free trade agreement with the United States and Canada, which is crucial to all three economies.

The EU is Mexico's third-largest trading partner, lagging far behind the United States and China.

Mexican President Claudia Sheinbaum has stressed the importance of "opening other horizons" at a time when both Mexico and the European Union are grappling with US President Donald Trump's tariff offensive.

The updated agreement to be signed by Sheinbaum and European Commission President Ursula von der Leyen during the eighth EU-Mexico Summit removes most remaining barriers to trade and investment.

It facilitates trade in auto parts, a sector particularly affected by Trump's tariffs.

"Mexico wants to reduce its dependence on its northern neighbor, but also on Asian, or rather, Chinese, supply chains, and in Europe we are pursuing the same objectives," an EU official told AFP on condition of anonymity.

On a visit Thursday to Mexico City, the EU's foreign policy chief Kaja Kallas, said the deal would create new opportunities for "both economies to compete globally" and build on the momentum of the past decade, which has seen a 75-percent leap in EU-Mexican trade.

Earlier this week, the European Union moved to end a trade standoff with Trump by agreeing to implement a deal signed last year with the United States, which sets tariffs on most European goods at 15 percent.

Average US tariffs on Mexican goods are a quarter of that -- with many avoiding levies altogether under the USMCA (United States, Mexico, Canada) agreement.

The lower tariffs enjoyed by Mexico will benefit the European Union, according to Sergio Contreras, president of the Mexican Business Council for Foreign Trade.

Mexico will be "the point of convergence, the platform for the European Union and North America to come together," he said.

The Bangladesh Energy Regulatory Commission (BERC) has further reduced jet fuel prices in May following a series of sharp adjustments in recent months, amid fluctuations in the international oil market.

In a press release issued today (23 May), the energy regulator announced a cut of Tk39.57 per litre in aviation fuel prices, with the revised rates taking effect from midnight.

Under the latest revision, the price of Jet A-1 fuel for domestic flights has been reduced from Tk205.45 per litre to Tk165.88 per litre, inclusive of duty and VAT.

For international flights operated by local and foreign airlines, the price has been lowered from $1.3385 per litre to $1.0823 per litre, excluding duty and VAT.

The latest reduction follows another downward adjustment on 7 May, when BERC cut jet fuel prices by Tk22.35 per litre. Before that, the regulator raised prices by nearly Tk25 per litre on 7 April, while on 24 March aviation fuel prices saw a steep hike of around Tk90 per litre.

According to the commission, jet fuel prices are revised monthly under a market-based pricing mechanism linked to international benchmark rates.

The regulator said the revised prices were determined based on the average Platts rate of Jet A-1 fuel between 5 May and 21 May, the US dollar exchange rate used in BPC's LC settlement process, and prevailing diesel prices in the domestic market.

BERC also considered changes in coastal tanker and pipeline transportation charges before finalising the new rates.

The rate of development spending improved marginally in the first ten months of the current fiscal year 2025-26, but the amount of money spent during the period was actually lower compared to a year earlier.

Spending under the Annual Development Programmes (ADP) stood at Tk 86,516 crore during the July-April period, or 41.41 percent of the total revised allocation, according to data released yesterday by the Implementation Monitoring and Evaluation Division (IMED). In April alone, spending rose 5.22 percent.

The ten-month execution rate is slightly higher than the 41.31 percent achieved during the same period of FY25 but is Tk 6,908 crore less in absolute terms.

The revised ADP allocation for FY25 stood at Tk 2.16 lakh crore, while it was Tk 2.08 lakh crore for FY26.

The marginal uptick in the execution rate does little to reverse a multi-year slide in budget implementation.

The 10-month ADP execution rate stood at 49.26 percent in FY24, 50.33 percent in FY23, and 54.57 percent in FY22.

In FY25, the full-year development spending hit a historic low, with only 68 percent of the revised ADP implemented, the weakest performance since FY1976-77.

The decline in the actual money spent reflects the disruption of a mid-year political transition following the uprising, which prompted several project directors and contractors to step away from their positions. Economic uncertainty compounded the slowdown.

The Health Services Division has performed the worst, implementing only 22.15 percent of its July–April target despite rising concerns over healthcare access.

With two months left in the fiscal year, analysts say Bangladesh is on course for another year of weak ADP execution.

The shortfall may also dent revenue collection by the National Board of Revenue, which collects advance income tax and VAT from implementing agencies. However, lower execution could also help contain the budget deficit and reduce government borrowing from the banking sector.

Among top-allocated ministries, the Ministry of Science and Technology’s execution rate stands at 80 percent, driven largely by the Rooppur Nuclear Power Plant expenditures.

The Energy and Mineral Resources Division follows at 68 percent, and the Ministry of Agriculture at 62 percent.

Meanwhile, despite the sluggish implementation trend, the new BNP-led government has announced an ambitious development budget of Tk 3 lakh crore for the upcoming FY27.

Germany-based industrial sewing and embroidery thread manufacturer AMANN Group plans to expand its factory operations and make fresh investments in Bangladesh, the company's Chief Executive Officer Markus Nicolaus said at a meeting with Bangladesh Garment Manufacturers and Exporters Association (BGMEA) leaders in Dhaka.

The announcement came during a bilateral meeting between BGMEA President Mahmud Hasan Khan and an AMANN Group delegation at the BGMEA Complex in Uttara recently, according to a press release issued yesterday (23 May).

The meeting discussed the capacity of Bangladesh's readymade garment sector, current challenges in the international market and future investment strategies. BGMEA Director Md Hasib Uddin was also present.

Mahmud said Bangladesh's apparel sector was recovering after a slowdown in exports earlier this year caused by global economic uncertainty.

"Bangladesh's readymade garment industry is now going through a major transformation. We are putting strong emphasis on product diversification. But our current goal is not only to increase export volume, but also to produce higher-value garments," he said.

He said AMANN Group could support Bangladesh's apparel sector not only as a thread supplier but also as a strategic business partner.

Mahmud said many reputed German brands were still not sourcing from Bangladesh and requested AMANN to present Bangladesh's transformed apparel industry and production capacity to those brands.

Announcing the company's factory expansion plan in Bangladesh, Markus Nicolaus said Bangladesh's readymade garment sector had strong future potential.

"We are closely observing which other sectors here may attract new investment. There are major investment opportunities, especially in Bangladesh's high-tech textile sector," he said.

He said AMANN wanted to serve the premium segment and meet demand from high-end international brands through its products.

The AMANN delegation asked about global and local risk factors in the apparel sector, Bangladesh's labour standards, current US tariff policy and its impact on international trade.

The meeting also discussed the country's port, energy and logistics infrastructure and future development plans.

AMANN Group operates in Bangladesh through AMANN Bangladesh Ltd.

The Dhaka Stock Exchange (DSE) extended its rally for a fourth consecutive session today (23 May), as investor confidence strengthened following Finance and Planning Minister Amir Khosru Mahmud Chowdhury's pledge to ensure professional and skilled leadership at key financial institutions.

Speaking at a policy symposium in the capital, Finance and Planning Minister Amir Khosru Mahmud Chowdhury announced a complete ban on political appointments in the financial sector, including the Bangladesh Securities and Exchange Commission (BSEC).

He said the government would appoint only professional and competent individuals to key regulatory positions in a bid to restore investor confidence and strengthen corporate governance.

The announcement boosted market sentiment, triggering a broad-based rally and adding significantly to market capitalisation, according to market insiders.

The benchmark DSEX index rose 64 points, or 1.22%, to close at 5,328. Over the past four trading sessions, the index has gained a cumulative 125 points.

The blue-chip DS30 index also advanced strongly, climbing 34 points to finish at 2,030.

Market breadth remained positive, with 217 issues advancing, 117 declining, and 60 remaining unchanged.

Total market capitalisation at the premier bourse increased by Tk5,400 crore in a single day, while turnover rose 4% to Tk902 crore.

The minister also said the government would prioritise improving auditing standards and financial disclosure requirements to rebuild market credibility and attract foreign institutional investors.

According to EBL Securities' daily market review, the market opened strongly from the first trading bell, supported by aggressive buying in large-cap banking and telecom stocks.

The brokerage house said expectations of meaningful reforms, early signs of domestic macroeconomic stabilisation, and easing geopolitical tensions around the Strait of Hormuz – which had earlier dampened investor risk appetite – helped sustain the rally ahead of the Eid holidays.

Banking and telecom stocks led the gains, with major index contributors including BRAC Bank, Grameenphone, Robi Axiata, Square Pharmaceuticals, and City Bank.

Sector-wise, engineering stocks dominated turnover, accounting for 15.7% of total transactions, followed by pharmaceuticals at 15.4% and general insurance at 12.9%.

The cement sector posted the highest gain, rising 3.3%, followed by services at 2.8% and banking at 2.1%. The information technology sector was the only major laggard, declining 1.9%.

Several loss-making companies also featured among the day's top gainers, indicating renewed speculative activity among some investors. Meghna Cement Mills topped the gainers' list with a 9.86% rise, followed by Emerald Oil Industries, Aramit Cement, Regent Textile Mills, and Sena Insurance.

On the losing side, Daffodil Computers shed 9.36%, followed by Premier Leasing & Finance, Apex Spinning & Knitting Mills, and CAPM BDBL Mutual Fund 01.

In terms of liquidity, Asiatic Laboratories emerged as the most traded stock, followed by NCC Bank, RD Food, Mir Akhter Hossain, and Jamuna Bank.

The upbeat mood also spilled over to the Chittagong Stock Exchange (CSE), where key indices posted sharp gains. The Selective Categories' Index (CSCX) rose 81 points to 9,131, while the All Share Price Index (CASPI) gained 138 points to close at 14,838.

However, turnover at the port city bourse fell 20% to Tk24 crore.

Bangladesh's apparel exports to the European Union (EU) fell 19.26 percent year-on-year to €2.89 billion in January-February this year, according to data from Eurostat.

Exports stood at €3.57 billion during the same period a year earlier.

In terms of volume, Bangladesh’s apparel exports to the bloc declined 11.14 percent to 205.52 million kilogrammes during the two-month period.

Eurostat data also showed a decline in unit prices, with the average export price per kg falling 9.13 percent year-on-year to €14.04.

February saw export value falling 12.39 percent, volume dropping 3.30 percent, and unit prices declining 9.39 percent on a year-on-year basis.

During the January-February period, China’s apparel exports to the EU rose to €4.20 billion, although export value posted a negative growth of 4.01 percent. Unit prices declined 5.27 percent, while export volume increased 1.34 percent.

Meanwhile, Turkey recorded a 22.91 percent decline in apparel exports to the EU to €1.20 billion, while Vietnam posted a 2.06 percent fall to €711.73 million despite a 6.56 percent rise in unit prices.

During the same period, the EU’s total apparel imports saw negative growth at 11.27 percent year-on-year to €13.83 billion.

Apparel imports by the bloc also fell 6.23 percent in volume, while average unit prices declined 5.38 percent in 2026.

Bangladesh Bank yesterday announced a Tk 60,000 crore stimulus package aimed at reviving the struggling private sector amid slowing growth and persistent inflation concerns.

Announcing the package at a press briefing at the central bank headquarters, BB Governor Md Mostaqur Rahman said the initiative was designed to address industrial disruption and financial sector vulnerabilities while supporting employment generation.

The package has two main components.

The first is a Tk 41,000 crore refinancing fund to be mobilised from banks with surplus liquidity through long-term deposits of at least three years at a 10 percent interest rate. Under the arrangement, Bangladesh Bank will provide refinance at 4 percent interest, while the government will subsidise the remaining 6 percent.

The second component is a Tk 19,000 crore fund sourced directly from the central bank’s own resources with a government guarantee.

Under the overall scheme, large borrowers will be able to access loans at around 7 percent interest, while smaller loans may carry slightly higher rates because of administrative and operational costs. Detailed implementation guidelines will be issued through upcoming circulars, the central bank said.

A major portion of the refinancing fund -- Tk 20,000 crore -- has been allocated for reopening closed factories, making it the single largest allocation. Another Tk 10,000 crore has been earmarked for agriculture and rural economic activities.

The cottage, micro, small and medium enterprise (CMSME) sector will receive Tk 5,000 crore, while Tk 3,000 crore each has been allocated for export diversification and the North Bengal Agricultural Hub initiative.

The Tk 19,000 crore BB-funded portion will support 10 targeted schemes, including pre-shipment export financing, CMSME support, overseas employment financing, startup funding, and youth-focused employment programmes.

This is the largest stimulus package since the then government provided Tk 2,37,679 crore under 28 separate programmes to ensure a quick economic recovery from the fallout of the Covid-19 pandemic.

According to the governor, the latest package is expected to generate more than 25 lakh jobs across industries, SMEs, agriculture, exports, startups, and youth employment initiatives.

Mostaqur said Bangladesh’s GDP growth has slowed significantly over the past three years, falling from 5.8 percent to 4.2 percent and likely declining further to around 3.7 percent.

He attributed the slowdown to disruptions in industries including garments, textiles, steel, ceramics, information technology, and broader manufacturing.

He also pointed to mounting stress in the financial sector, including a sharp rise in classified loans, declining depositor confidence, and high borrowing costs that have discouraged SME expansion.

The governor further cited capital flight and alleged illicit financial outflows, saying financial irregularities had weakened the banking system and intensified liquidity pressures.

Despite the central bank’s optimism, bankers and economists have expressed concern over the package’s design, funding structure, implementation feasibility, and possible inflationary impact.

Mashrur Arefin, chairman of the Association of Bankers, Bangladesh (ABB), described the package as “an excellent plan” but said effective implementation would be crucial.

He questioned the sourcing of the fund, arguing that banks’ surplus liquidity is already largely invested in treasury bills and bonds. He also noted that banks need to maintain some idle funds for day-to-day operations, limiting their ability to participate.

Mashrur suggested that instead of relying solely on bank deposits, Bangladesh Bank could inject liquidity by lowering the repo rate against treasury bills and bonds or reducing the cash reserve ratio (CRR).

According to him, such measures would make the package more workable and allow banks to lend at the intended 4 percent spread.

He also acknowledged that the initiative could fuel inflation, but said boosting employment and economic activity was also necessary under current conditions.

Syed Mahbubur Rahman, managing director of Mutual Trust Bank, also supported the intent but warned that implementation would be difficult.

He said banks are unlikely to lend to closed or failed factories because of the high risks involved. Restarting such units would require operational restructuring, management changes, workforce rehiring, and resolution of underlying financial and operational problems.

If revival efforts fail, banks risk losing their funds entirely, he said.

Mahbubur said credit growth has slowed to around 4.7 percent not because of a liquidity shortage, but due to a lack of viable borrowers. He also cited structural bottlenecks -- including inadequate infrastructure, weak law enforcement, and energy shortages -- as major constraints on investment.

Even operational factories are struggling because of gas shortages and rising electricity and energy costs, he said, adding that unresolved Covid-era stimulus loans continue to burden the banking sector.

He warned that because Bangladesh Bank would eventually recover refinance funds from commercial banks when schemes mature, the package could add further pressure on lenders already grappling with high default rates.

Responding to journalists’ questions at the briefing, the governor clarified that the package does not involve printing new money, but rather reallocating idle liquidity already present within the banking system.

He said some banks have excess liquidity while others face shortages, and the objective is to channel idle funds into productive sectors through refinancing mechanisms.

Mostaqur also said Tk 6,000 crore from the Tk 19,000 crore central bank allocation had already been deployed from BB’s surplus funds. He said the central bank earns around Tk 20,000 crore annually in profit, allowing it to finance the initiative without triggering inflation through money creation.

The governor also acknowledged weaknesses in previous stimulus programmes, particularly during the Covid-19 period, when a small number of large business groups reportedly received a disproportionate share of funds.

He said stricter monitoring and safeguards would be introduced this time to prevent concentration of benefits and improve accountability.

Mostaqur further admitted the depth of the banking sector crisis, saying a significant amount of banking funds had been lost through irregularities, loan scams, and financial mismanagement.

Many of these bad loans, he said, were not traditional defaults caused by business failure, but funds siphoned off without adequate collateral.

As part of the overall package, Bangladesh Bank also announced a Tk 500 crore fund from corporate social responsibility (CSR) resources to support creative industries. Unlike the stimulus loans, this fund will not require repayment.

Economists, however, remained cautious.

Abdur Razzaque, chairman of Research and Policy Integration for Development (RAPID), said the package appeared well-intentioned but lacked sufficient evaluation and consideration of alternatives.

He argued that controlling inflation should remain the top priority and warned that such stimulus measures could intensify price pressures and increase public hardship.

He also noted that stimulus alone does not guarantee improvement in underperforming sectors and that global experience shows such measures can sometimes fuel inflation and create additional macroeconomic imbalances.

Zahid Hussain, former lead economist of the World Bank’s Dhaka office, described the package as a countercyclical measure typically suited to periods of weak demand and low inflation.

However, he said Bangladesh currently faces a more complicated situation, with slowing growth alongside persistently high inflation.

Under such conditions, he warned, additional stimulus may not necessarily increase output and could instead push prices up faster than production if supply-side constraints remain unresolved.

Depositors of six troubled non-bank financial institutions (NBFIs) yesterday demanded that the government issue a gazette notification ensuring full repayment of their deposits, along with profits, by the end of this year.
Speaking at a press conference at the National Press Club, an alliance of the affected depositors claimed that they were being kept in the dark about the government’s plans for them.
Neither the Bangladesh Bank nor the finance ministry had officially communicated with them despite a silent protest and memorandum submitted on May 6, they said.

In a press statement, the alliance said around 12,000 depositors were still waiting for clarity regarding the fate of their savings, many of whom had been unable to access their money since 2019.
“We are only hearing things through the media. No ordinance has been issued yet. No official government order has reached us,” said Jafar Ullah Khan, convenor of the Alliance of 6 NBFIs Depositors Recovery Committee.

“We will not accept any under process language as an alternative to a legal commitment. Issue the gazette notification. Fix a timeframe. Give it in writing,” he added.

The alliance argued that the central bank must take responsibility for ensuring their payment as the depositors had placed their life savings in institutions approved by the regulator.

The depositors did not gamble or make risky investments, they said, adding that teachers, pensioners, widows, and retired individuals deposited their savings relying on the regulator’s approval of the institutions.The depositors also rejected any proposal to return only the principal amount without profits.
Kawsar Hossain Chowdhury, co-founder and coordinator of the alliance, said contractual profits were promised under the deposit schemes and depositors should not bear losses caused by institutional failures and regulatory negligence.“Now, we are being offered only the principal money back -- as if years of waiting have no value, as if inflation does not exist,” he said.

Citing inflation data and contractual deposit rates, the alliance claimed that a depositor who invested Tk 10 lakh in 2019 had effectively suffered a loss of more than Tk 12 lakh due to inflation and loss of profit income.The platform also demanded criminal proceedings against directors, officials, and default borrowers responsible for the collapse of the institutions.

It called for recovery of assets from defaulters, publication of a public register naming responsible individuals, and ensuring that no one is exempted from liability.Munira Khan, former member of the National Human Rights Commission, said the affected depositors were not beggars seeking aid for underprivileged people, but rather demanding the return of their own funds stuck in the NBFIs.

She said they wanted an implementable roadmap for refunding the money, not verbal promises.The Bangladesh Bank did not issue any warning while the institutions, that the regulator itself had approved, were being looted, said Prof Farid Rashid Kamal, who is also one of the affected depositors.

Auditors and credit rating agencies also presented rosy pictures of the NBFIs, he added, noting that all those responsible for safeguarding the institutions failed in their duties.

“Now, it is a moral duty of the government to ensure the return of the funds,” he added.

India's growing reliance on Venezuelan crude comes as the closure of the Strait of Hormuz disrupts a major corridor for its oil imports, forcing a rapid shift in supply chains and energy diplomacy.

What is driving the crisis?

The escalation of conflict involving Iran has led to the closure of the Strait of Hormuz, a key maritime route through which nearly half of India's crude oil imports typically pass. A US naval blockade of Iranian ports has also halted Iranian shipments to India this month. Reports Al Jazeera.

At the same time, supply from other Gulf partners has tightened. Imports from Saudi Arabia have fallen sharply from about 670,000 barrels per day in April to roughly 340,000 barrels per day in May. Indian officials have also raised concerns about maritime security after multiple incidents involving India-linked vessels, including one ship that sank following a suspected attack.

Why is India turning to Venezuela?

With Gulf flows constrained, India has increased imports from Venezuela, which now ranks as its third-largest crude supplier this month.

Shipments have risen by nearly 50% from April to around 417,000 barrels per day in May, after a nine-month period with no exports to India.

The country holds the world's largest oil reserves, estimated at 303 billion barrels, and about 17% of global totals. Its re-emergence as a supplier is also linked to shifts in US policy following the removal of former President Nicolas Maduro by US forces in January 2026, which led Washington to push Venezuelan crude into global markets.

What role is the United States playing?

The United States is actively shaping this realignment. US Secretary of State Marco Rubio is visiting India from (23–26 May) to discuss energy security and trade, with Washington signalling it wants to sell India "as much energy as they'll buy".

At the same time, the US is encouraging Venezuelan exports to reduce Iran's leverage in negotiations and to push diversification away from Russian oil.

Venezuelan Acting President Delcy Rodriguez is also expected in India next week to discuss future oil sales.

Can Venezuelan crude replace Gulf supply?

Venezuela's crude is ultra-heavy and sulphur-rich, making it harder to process in many refineries. However, it is considered well suited for Reliance Industries' Jamnagar refinery in Gujarat, one of the few global facilities designed to handle such grades efficiently.

This compatibility gives India a limited but important alternative supply option as Gulf flows remain disrupted.

However, the scale of Venezuela's current exports to India—around 417,000 barrels per day—remains well below the combined volumes historically sourced from Gulf suppliers, particularly during normal Strait of Hormuz operations.

What does this shift mean globally?

The US-backed reopening of Venezuelan oil flows is also seen as part of a broader effort to reshape global energy supply chains. The strategy aims to reintegrate Venezuela's oil sector—home to the world's largest reserves—into global markets while reducing leverage held by Iran and Russia.

US companies including Chevron currently produce about 250,000 barrels per day in Venezuela, while ExxonMobil is reportedly seeking to re-enter the country after nearly two decades.

Venezuelan oil is helping India offset some immediate supply disruptions from the Gulf, but it does not fully replace the scale or strategic importance of routes affected by the Hormuz closure.

The shift instead reflects a broader reordering of energy flows, where Venezuela is becoming a temporary pressure valve in a system still heavily exposed to geopolitical risks in the Middle East.

Only one bank will be able to pay cash dividends next year after the Bangladesh Bank barred lenders with paid-up capital below Tk 2,000 crore from making such payouts.

In a circular issued yesterday, the Bangladesh Bank (BB) said the move is aimed at strengthening the capital base of the banking sector. It also seeks to improve the ability of commercial lenders to absorb future risks amid a challenging global and domestic financial environment.

Only BRAC Bank and National Bank PLC (NBL) meet the higher paid-up capital threshold among listed lenders.

However, National Bank remains in significant losses, leaving BRAC Bank as the only institution effectively positioned to meet the requirement for cash dividend payments.

Even for banks that meet the paid-up capital threshold, the central bank has capped cash dividends at 50 percent of the declared payout, with the remainder to be issued as stock dividends.

The new rules will take effect from dividend declarations for the year ending December 31, 2026 and onwards, according to the Supervision Policy and Coordination Department of Bangladesh Bank.

The policy is expected to affect most listed banks, raising concerns among market participants about shareholder returns.

While the measure may improve the resilience of the banking sector in the long run, it is likely to reduce flexibility for banks that are otherwise financially stable.

Mashrur Arefin, chairman of the Association of Bankers, Bangladesh (ABB), the apex body of the country’s commercial bank executives, said, “This is a good move towards strengthening the capital base of the banks.”

He said a few banks with weak capital bases did take cash out in the past. But the shareholders of healthy banks will now suffer. “That’s not good.”

The ABB chairman said the dividend rule should instead have been linked to the Capital Adequacy Ratio, which he argued would have been fairer for shareholders of well-performing banks.

“Shareholders have a reasonable expectation of cash returns when a bank is performing well. That incentive for supporting strong banking institutions is being overlooked,” said Arefin, who is also managing director and chief executive officer of City Bank.

“This will not help our agenda to encourage people to go to the capital market for their investments. I don’t know why CAR wasn’t considered. Is it because the government is seeking higher credit growth? But that connection is too distant.”

Banks can raise paid-up capital through rights shares to meet the Tk 2,000 crore threshold and retain eligibility for cash dividends. A rights issue allows existing shareholders to buy additional shares, usually at a discounted price, in proportion to their current holdings.

Asif Khan, president of CFA Society Bangladesh, also opposed linking dividend eligibility to paid-up capital, suggesting it should instead be tied to shareholders’ equity, capital adequacy ratio and provisioning levels.

He said that only one bank now effectively meets the Tk 2,000 crore threshold. So, most of the commercial lenders will be unable to pay cash dividends from next year, which could affect the capital market.

According to Dhaka Stock Exchange (DSE) data, National Bank PLC has the highest paid-up capital among listed lenders at Tk 3,219 crore, followed by BRAC Bank at Tk 2,289 crore and City Bank at Tk 1,749 crore.

Other major lenders include Eastern Bank (EBL), Islami Bank Bangladesh, United Commercial Bank, Pubali Bank, Bank Asia, Southeast Bank and Prime Bank, all of which fall below the paid-up capital threshold.

EBL’s paid-up capital stands at Tk 1,643 crore, Islami Bank Bangladesh’s at Tk 1,609 crore and United Commercial Bank’s at Tk 1,550 crore, according to Dhaka Stock Exchange (DSE) data.

Pubali Bank has Tk 1,496 crore, Bank Asia Tk 1,391 crore and Southeast Bank Tk 1,373 crore, while Prime Bank’s paid-up capital is Tk 1,218 crore.

Khan said many of these banks maintain strong capital adequacy ratios and have no provisioning shortfalls.

“So, why would they be barred from giving cash dividend?”

He also pointed to a possible policy conflict with the National Board of Revenue (NBR), which imposes higher tax on listed firms that do not pay cash dividends.

The Bangladesh Bank said the decision was taken considering the overall condition of the banking sector, depositor protection, financial resilience and the need to strengthen capital conservation buffers.

A senior central bank official said the policy was intended to improve the health of the banking sector and protect depositors’ interests.

Other eligibility criteria for dividend payout would remain unchanged, he added.