Bank loans tied up under court stay orders jumped more than eightfold over the three years to the end of 2025, reaching Tk 182,419 crore, according to a Bangladesh Bank (BB) report.

The amount rose by 80 percent from Tk 101,429 crore in 2024 to Tk 182,419 crore by the end of 2025, showing a sudden increase in borrowers seeking court protection.
Tap here to add The Daily Star as a trusted source google-preferred-source-badge

This upward trajectory began from a base of Tk 21,226 crore at the end of 2022. The growth shifted from steady to explosive during the 2023-2024 period, when the value of funds blocked by stay orders more than doubled in just twelve months.

This momentum peaked in 2025, with the final 80 percent surge completing an eightfold expansion of frozen capital over the full three-year window.

Meanwhile, the number of stay order cases rose nearly fourfold, from 226 in 2022 to 845 in 2025, as more borrowers turned to the courts.

The sharp rise in loans under stay orders comes as the country’s banking sector is already struggling with a record volume of bad loans, adding to pressure on an already fragile financial system.

The central bank said the steady rise in loans under stay orders is delaying recoveries and putting pressure on liquidity and earnings of banks.

“The persistent growth in loans under stay orders suggests considerable stress on the banking sector’s liquidity and earnings,” said the BB in its Financial Stability Report 2025.

It recommended faster disposal of banking cases and policy measures to remove legal bottlenecks, saying this would help strengthen financial stability.

At the end of 2025, defaulted loans stood at Tk 557,217 crore. Unclassified rescheduled loans totalled Tk 268,733 crore, while written-off loans reached Tk 83,479 crore. All three increased during the year.

Mati Ul Hasan, managing director of Mercantile Bank PLC, said banks are making a concerted effort to recover defaulted loans. Some borrowers are seeking stay orders to block those efforts.

“A stay order means that all our recovery proceedings come to a halt,” he said. “If we take steps to auction a property and a stay order is issued, we cannot proceed until it is vacated.”

“This is a major challenge to loan recovery. The overall effect is that our cash flow is affected, and funds remain blocked, reducing our capacity to extend new loans.”

Barrister Shamim Khaled Ahmed said many defaulters obtain stay orders from the High Court to stop banks from classifying them as defaulters. However, not all stay orders involve defaulting borrowers.

“In some cases, bank directors also seek stay orders,” he said.

“But the number of stay orders related to loans is growing because there are only two courts dealing with banking matters. We should increase the number of courts to speed up the settlement of these cases. The longer the delay, the more serious the damage to the banking sector,” he said.

Fahmida Khatun, executive director of local think tank Centre for Policy Dialogue (CPD), said the increase shows another weakness in the banking sector, which is already burdened by a high volume of non-performing loans.

“It looks like Bangladesh is dealing with several issues simultaneously, including officially recognised NPLs, major gaps in provisions, loans that have been written off but still have not been recovered, and a rapidly increasing number of loans under judicial stay orders,” she added.

Fahmida said the stay order issue is especially important from a governance perspective.

“Courts play a vital role in protecting honest borrowers’ rights, and not every borrower requesting a stay should be viewed as intentionally defaulting.”
Google News LinkFor all latest news, follow The Daily Star's Google News channel.

However, when such a large amount of bank credit is tied up under stay orders, the wider economic impact can be serious, she added.

“Lengthy legal proceedings can slow down recovery efforts, weaken the rights of creditors, and encourage strategic borrowers to use litigation as a way to delay repayment.”

The CPD executive director said capital is another concern. If banks cannot set aside enough provisions for deteriorating assets, their reported capital might not truly reflect the financial losses in their loan portfolios.

She said recognising these losses and setting aside enough reserves could reveal capital weaknesses in some banks. So, this issue goes beyond just loan recovery. It is really about maintaining financial stability.

Syed Mahbubur Rahman, managing director and CEO of Mutual Trust Bank PLC, said the growing number of defaulters has also led to more borrowers seeking stay orders.

“While I understand that going to court is a fundamental right, there should be a provision requiring borrowers to make a down payment of a certain portion of the loan before obtaining a stay order. This would discourage many borrowers from going to court,” he added.

Mashrur Arefin, chairman of Association of Bankers, Bangladesh (ABB), said the growing use of writ petitions has shifted from protecting the constitutional rights of aggrieved parties to becoming an operational tool for serial defaulters.

He said the practice generally follows three stages.

First, borrowers obtain a High Court stay order on their Credit Information Bureau records, allowing them to maintain their reputation, continue banking activities and even secure fresh loans.

Second, when banks move to auction mortgaged properties to recover dues, borrowers seek another stay order, making it much harder for banks to convert collateral into cash.

Finally, banks become caught in lengthy legal proceedings between lower courts and the High Court, delaying recovery efforts for three to four years and allowing cases to pile up, he said.

“The ultimate victim is the financial ecosystem. With time being taken that way, the value of recovery reduces, legal costs go up, liquidity gets locked, and credit discipline suffers,” said Mashrur, who is also managing director and CEO of City Bank.

Nvidia is in talks to provide roughly $250 billion in financing guarantees for OpenAI as part of a massive data center project, the Wall Street Journal reported on Sunday.

The backstop from Nvidia would help the ChatGPT maker lease a 10-gigawatt project that SoftBank’s energy subsidiary is developing in southern Ohio, the newspaper said, citing people familiar with the matter.For OpenAI, a deal would be the first step toward controlling its own infrastructure instead of renting it from Microsoft, Amazon and Oracle, while for Nvidia, it would guarantee demand for its chips for years to come.The project is expected to cost more than $500 billion in total, including the chips inside the data center, according to the WSJ.The $250 billion guarantee covers the data center lease and debt financing, but would not cover the Nvidia chips inside the center, the WSJ said.The chipmaker was also discussing financing OpenAI’s chip purchases worth up to $350 billion.

Nvidia’s backing would support financing vehicles aimed at reassuring lenders about the project’s funding, the report added.The first phase of the project is expected to be finished in 2028, with around 800 megawatts of power, the Journal said.The power is controlled by the US government and funded separately by Japan under a recent trade deal, tied to Tokyo’s pledge to invest $33 billion in a natural gas plant.US Commerce Secretary Howard Lutnick is involved in deciding who gets access, according to the report.Reuters could not immediately verify the report.Nvidia, OpenAI and the US Commerce Department did not respond to requests for comment outside regular business hours.OpenAI, in advanced talks for several weeks to lease the site, is among the companies showing the strongest interest in the project, while Anthropic, Microsoft and Google have also spoken to Lutnick in recent weeks, the report said.

The deal underscores a broader shift as tech giants increasingly tap debt and equity markets to fund AI infrastructure, with spending set to top $700 billion this year.

যার ইতিবাচক প্রভাব পড়েছে জ্বালানি তেলের বাজারে। গতকাল আন্তর্জাতিক মানদণ্ড ব্রেন্ট ক্রুডের দাম ব্যারেলপ্রতি ৭ ডলার ৫৫ সেন্ট বা প্রায় ৭ দশমিক ৮ শতাংশ কমে ৮৯ ডলার ২৩ সেন্টে নেমেছে। একই সময়ে যুক্তরাষ্ট্রের বেঞ্চমার্ক ডব্লিউটিআইয়ের দাম ৬ ডলার ১ সেন্ট বা ৬ দশমিক ৭৩ শতাংশ কমে দাঁড়িয়েছে ব্যারেলপ্রতি ৮৩ ডলার ৩০ সেন্টে। উভয় বেঞ্চমার্কের দামই ২০ জুলাইয়ের পর সর্বনিম্ন পর্যায়ে রয়েছে।

ইরান সংঘাতের কারণে হরমুজ প্রণালি দিয়ে জ্বালানি তেল পরিবহন ব্যাপকভাবে কমে যাওয়ায় গত সপ্তাহে ব্রেন্টের দাম ব্যারেলপ্রতি ১০০ ডলার ছাড়িয়ে গিয়েছিল। সংঘাত লোহিত সাগরেও ছড়িয়ে পড়ায় সৌদি আরব থেকে বাব এল-মান্দেব প্রণালি হয়ে এশিয়ায় তেল রফতানি বাধাগ্রস্ত হয়। তবে হামলা বন্ধের ঘোষণার পর সরবরাহ পরিস্থিতি স্বাভাবিক হওয়ার সম্ভাবনায় বাজারে মূল্যচাপ কমতে শুরু করেছে।

জাতিসংঘে যুক্তরাষ্ট্রের রাষ্ট্রদূত মাইক ওয়াল্টজ জানিয়েছেন, কূটনৈতিক উদ্যোগের জন্য সময় দিতে প্রেসিডেন্ট ডোনাল্ড ট্রাম্প ইরানে যুক্তরাষ্ট্রের হামলা স্থগিতের সিদ্ধান্ত নিয়েছেন। টানা ১৩ রাত হামলার পর অভিযান বন্ধ করে ওয়াশিংটন। এর জবাবে ইরানও জানিয়েছে, যুক্তরাষ্ট্র হামলা বন্ধ রাখলে তারাও পাল্টা আক্রমণ স্থগিত রাখবে।

তবে বিশ্লেষকরা সতর্ক করে বলেছেন, এ বিরতি এখনো আনুষ্ঠানিক যুদ্ধবিরতি নয়। এসইবি রিসার্চের বাজার বিশ্লেষক ওলে হভালবাই বলেন, দুই পক্ষের মধ্যে কোনো স্বাক্ষরিত কাঠামো, যাচাই ব্যবস্থা কিংবা নির্দিষ্ট সময়সীমা নেই। পণ্য পরিবহনবিষয়ক তথ্য সরবরাহকারী প্রতিষ্ঠান কেপলারের হিসাবে, সপ্তাহান্তে প্রতিদিন ১০টিরও কম পণ্যবাহী জাহাজ হরমুজ প্রণালি অতিক্রম করেছে। যুদ্ধের আগে এ পথে প্রতিদিন প্রায় দুই কোটি ব্যারেল জ্বালানি তেল পরিবহন হতো। বর্তমানে প্রবাহ যুদ্ধপূর্ব সময়ের প্রায় ১৫ শতাংশে নেমে এসেছে।

এদিকে ইরান জানিয়েছে, তারা এখনো হরমুজ প্রণালির নিয়ন্ত্রণে রয়েছে এবং যুক্তরাষ্ট্রের সঙ্গে নতুন করে শান্তি আলোচনা চায়নি। দেশটির পররাষ্ট্র মন্ত্রণালয়ের মুখপাত্র ইসমাইল বাঘাই বলেছেন, মধ্যস্থতাকারীদের মাধ্যমে বার্তা আদান-প্রদান অব্যাহত থাকলেও আলোচনার জন্য ইরানের অনুরোধের খবর সঠিক নয়।

ইরানের রাষ্ট্রীয় গণমাধ্যম জানিয়েছে, অনুমতি ছাড়া হরমুজ অতিক্রমের চেষ্টা করায় গতকালও ছয়টি জাহাজকে ফিরিয়ে দেয়া হয়েছে। তেহরানের দাবি, জাহাজগুলোকে ইরান নির্ধারিত নৌপথ ব্যবহার করতে হবে। ফলে হামলা বন্ধ ও তেলের দাম কমলেও হরমুজ দিয়ে স্বাভাবিক নৌ-চলাচল কত দ্রুত ফিরবে, তা নিয়ে অনিশ্চয়তা রয়ে গেছে।

Only 11 of Bangladesh's 122 state-owned enterprises (SOEs) and autonomous bodies have been assessed as financially solvent, signifying the fragile financial condition of much of the country's public sector.

A recent assessment by the Finance Division found that the 11 organisations had cash and liquid assets exceeding their total debt, leaving them with negative net debt - a key indicator of financial strength.

The 11 entities are the Bangladesh Energy Regulatory Commission, Bangladesh Industrial Technical Assistance Centre, Eastern Lubricants Blenders, Hotels International, Jamuna Fertiliser Company, National Housing Authority, Nuclear Power Plant Company Bangladesh, Petroleum Transmission Company, Rajshahi WASA, SME Foundation, and TSP Complex.

The assessment formed part of a broader review by the SOE Wing of the Finance Division, which scrutinised the financial performance, debt exposure, contingent liabilities, and governance practices of 122 state-owned enterprises and autonomous bodies.

The report said these organisations play an important role in economic development by providing strategic goods and services and promoting fair competition in key sectors.

Mohammad Jahangir Hossain, general manager (Accounts and Fund Management, Research and Policy Advocacy, Communication and Branding) at SME Foundation, attributes his organisation's financial strength to prudent fund management.

About 90 per cent of the foundation's funds have been invested in government treasury securities that generate returns of around 12 per cent, he tells The Financial Express.

He also says the recovery rate on loans disbursed through banks and non-bank financial institutions is "nearly 100 per cent", reflecting strong credit discipline among beneficiaries.

Abu Mohammad Saifuddin, company secretary of Eastern Lubricants Blenders, says the company's financial position is supported by sound corporate governance, a strong customer base, and steady market demand.

He says the government-owned entity distributes its products through the marketing networks of Padma, Meghna, and Jamuna petroleum companies while competing with a small number of private-sector firms.

"As a listed company on the Dhaka Stock Exchange, we maintain good corporate governance and compete fairly in the market," he says.

The Finance Division's assessment comes as concerns grow over the financial sustainability of many state-owned enterprises, several of which continue to rely on government support because of mounting losses and debt burdens.

People's Insurance Company Limited posted a sharp increase in earnings for the second quarter of 2026, driven by higher interest income, rental income and other operating income.

According to a disclosure filed with the Dhaka Stock Exchange (DSE) yesterday (26 July), the listed non-life insurer reported earnings per share (EPS) of Tk1.64 for the April-June quarter, up from Tk0.86 in the same period last year, marking a year-on-year increase of about 91%.

For the January-June period, EPS rose to Tk2.93, compared with Tk1.49 in the same period last year, representing a 97% year-on-year increase.

The company said the improved earnings were driven by higher interest income, rental income and other operating income during the period.

Its net operating cash flow per share increased to Tk2.68 in the first six months of 2026 from Tk1.66 a year earlier.

Meanwhile, net asset value (NAV) per share rose to Tk40.88 as of 30 June 2026, from Tk36.30 a year earlier, indicating a stronger financial position.

Following the earnings announcement, People's Insurance shares gained 4.9% to close at Tk59.90 on the Dhaka Stock Exchange today (27 July).

The earnings growth comes as Bangladesh's insurance sector gradually recovers amid regulatory efforts to strengthen governance, improve claims settlement and restore investor confidence. While many insurers continue to grapple with weak underwriting margins and sluggish premium growth, stronger investment returns have helped boost the profitability of several companies.

Established in 1985, People's Insurance Company is one of Bangladesh's oldest private-sector non-life insurers. It offers a range of general insurance products, including fire, marine, motor, engineering and miscellaneous insurance, serving both corporate and individual clients.

The company operates through an extensive branch network across the country and relies on a combination of underwriting and investment income to support its profitability.

Bangladesh received US$2.437 billion in workers' remittances during the first 26 days of July, registering a 26.1 percent year-on-year growth, according to the latest data released by Bangladesh Bank.

The country had received US$1.933 billion in remittances during the corresponding period of July last year.

Expatriate Bangladeshis sent home US$138 million on July 26 alone, reflecting the continued strong pace of inward remittance flows.

The sustained growth in remittance earnings is expected to strengthen the country's foreign exchange reserves, support external sector stability, and help meet the rising demand for foreign currency to finance imports, BSS reports.

Remittance has remained one of Bangladesh's key sources of foreign exchange, alongside export earnings, playing a vital role in supporting the national economy and household consumption.

Finance Minister Amir Khosru Mahmud Chowdhury today (27 July) urged Chinese investors to back high-tech and strategic sectors in Bangladesh, including semiconductor chip manufacturing.

Addressing the foundation stone laying ceremony for the proposed Chinese Economic and Industrial Zone (CEIZ) in Anwara, Chattogram, the minister highlighted the shifting focus of the country's economic priorities.

"While investment in readymade garments, medical equipment, and other traditional manufacturing sectors remains important, the time has come to pivot towards higher-tech and strategic industries. Bangladesh offers immense potential for advanced, tech-driven sectors, including semiconductor chips," he said.

Emphasising the need for knowledge sharing, Khosru added, "We are not looking merely for capital investment; technology transfer and the development of a skilled workforce are equally vital. The industries set up here will demand a large volume of highly skilled personnel."

The minister outlined the government's broader economic vision, noting that investment would serve as the primary driver for economic growth, job creation, and achieving a $1 trillion economy by 2034.

Reaffirming the government's commitment to creating a business-friendly environment, Khosru added, "Bangladesh is now open for business. Investment is the top priority for the current administration, and we are working continuously to implement the changes required to facilitate it."

Furthermore, the minister reassured investors regarding the repatriation of capital and profits, addressing a long-standing concern for foreign companies. "In the past, this was a major hurdle. Investors will now be able to easily repatriate their earned profits or capital back to their home countries whenever necessary."

Turning to the financial markets, Khosru invited Chinese enterprises to get enlisted on the Bangladeshi stock market. Listing locally would enable Chinese firms to raise capital more efficiently while allowing Bangladeshi retail investors to participate in their growth — ultimately reducing reliance on high-interest bank loans.

Chinese Ambassador to Bangladesh Yao Wen; Li Changgui, vice president of the China Road and Bridge Corporation (CRBC); Home Affairs Minister Salahuddin Ahmed; State Minister for Land Mir Mohammed Helal Uddin; Chattogram-13 MP Sarwar Jamal Nizam; and Chittagong Chamber of Commerce and Industry President Amirul Haq; and Bangladesh CEIZ Company Limited Chairman Wang Benqian also addressed the event, which was chaired by Chowdhury Ashik Mahmud Bin Harun, the executive chairman of Bangladesh Economic Zones Authority (Beza).

Based on an agreement between China's commerce ministry and the Prime Minister's Office of Bangladesh, the economic and industrial zone will be developed on approximately 800 acres of land in the Belchura area of Anwara.

To develop and operate this zone, Beza is implementing the "Supporting Infrastructure Project for Chinese Economic and Industrial Zone Project", to construct the necessary supporting infrastructure.

Strategic location

The proposed economic zone will be located 12 kilometres from Chattogram Port, seven kilometres from Shah Amanat International Airport, and adjacent to the Karnaphuli Tunnel. As a result, it will benefit from strong transportation and logistics connectivity, making it an attractive location for industrial and economic activities.

Calling it one of the flagship projects of China-Bangladesh cooperation, Ambassador Yao Wen said the industrial zone has so far hosted visits from more than 110 companies, signed over 30 Letters of Intent (LoIs) with potential investors, and attracted prospective investments worth nearly $500 million.

These investments are expected to create more than 1,00,000 direct and indirect jobs, he said.

The envoy said the zone is expected to attract investment not only in the readymade garment and textile sectors but also in high-tech industries such as electric vehicles (EVs), batteries, and medical equipment. "It is set to become a key foundation for the development of Bangladesh's high-tech manufacturing sector."

According to Beza, Bangladesh and China signed a memorandum of understanding on the project in 2014, and land acquisition was completed in 2016. However, the project remained stalled for years due to delays in appointing a developer, finalising financing arrangements, and resolving administrative issues.

Initially, China Harbour Engineering Company (CHEC) was considered for the role of developer, but negotiations did not progress. In 2022, the Chinese government nominated CRBC to take over the project development, paving the way for its implementation.

Later, Beza and CRBC formed a joint venture company, with Beza holding a 30% stake. The share was determined based on the value of a 50-year land lease. In return for investing $100 million in developing the economic zone, the Chinese company acquired a 70% stake.

The government-to-government project gathered pace following Prime Minister Tarique Rahman's official visit to China on 22-26 June, during which the two countries signed several investment-related deals.

Shortly before the PM's China visit, the Executive Committee of the National Economic Council (Ecnec) approved a Tk4,189 crore supporting infrastructure project for the economic zone on 16 June. Of the estimated budget, the Chinese government will provide Tk2,467 crore through preferential buyer's credit, while the Bangladesh government will fund the rest.

The supporting infrastructure includes a 1,235-metre jetty link road; a 330-metre bridge; a 1,181-metre four-lane road; a 25-million-litre central effluent treatment plant (CETP); a multipurpose jetty capable of handling 20,000 deadweight tonnes; gas transmission facilities; power substations and transmission lines; water reservoirs; and nearly 12 kilometres of boundary wall.

The project is expected to be completed by 31 December 2031.

Shares of CXMT Corp surged more than 500% on their Shanghai trading debut on Monday following Asia's biggest IPO this year, catapulting the chipmaker to the top of China's stock market by valuation despite a recent selloff in global tech stocks.

The stock reached 54.65 yuan mid-session compared to its sale price of 8.66 yuan per share. The rally lifted CXMT's market capitalisation to 3.65 trillion yuan ($539.21 billion), sharply up from $85.5 billion during the IPO process.

The explosive debut makes CXMT the most valuable company listed in China, overtaking Industrial and Commercial Bank of China (ICBC), the market's previous heavyweight.

With US restrictions raising the stakes in the global technology race, the chipmaker has become a cornerstone of China's effort to anchor its semiconductor ecosystem and narrow the gap in strategic sectors such as AI.

CXMT's first-day rally easily outstripped the more-than-doubling recorded by China Resources New Energy after its $3.6 billion IPO in China earlier this month.

Marquee Chinese chipmaker

The strong debut provides a gauge of how much investors are willing to pay for a marquee Chinese chip firm, as local markets navigate volatility following an AI-led selloff.

There was 122 billion yuan worth of CXMT shares traded in Shanghai during the morning session. CXMT became the first A-share stock to exceed 100 billion yuan turnover in a day, according to local media reports.

Chinese chipmaking and semiconductor stocks fell on Monday, as fund managers repositioned for CXMT shares.

CXMT's astronomical rally, which values it at nearly half of US rival Micron, has also sparked concerns of a bubble. Its expanding dominance in China has enabled it to raise prices for tech customers such as Huawei.

"At such a price, I don't dare to hold, or buy the stock," said Wu Zhou, fund manager at Shenzhen Deyuan Investment, who bought CXMT's IPO shares, adding he sold them all when the stock began trading.

AI-linked stocks, including chipmakers, have been at the forefront of global equity market gains this year. But concerns about stretched valuations and whether hefty AI-related capital expenditures will generate earnings growth quickly enough have recently dampened investor enthusiasm.

"The (CXMT) stock is too expensive and smells of speculation," said Yuan Yuwei, hedge fund manager at Trinity Synergy Investments, adding that "it's hard to say the optimism is sustainable."

In other Asian markets, tech-heavy South Korea's KOSPI and Taiwan stocks were down over 1% on Monday, while MSCI's IT index for Asia-Pacific shares outside Japan fell 0.5%.

Only 6.73% of CXMT's enlarged share capital was freely tradable at listing, as most shares are locked up. The small initial float could magnify price swings and attract strong turnover.

Severe memory shortage

CXMT, formerly ChangXin Memory Technologies, raised 57.92 billion yuan ($8.6 billion) in the IPO, the biggest mainland Chinese semiconductor offering on record. It surpasses SMIC's $7.5 billion Shanghai share sale in 2020 and the IPO proceeds could rise to 66.61 billion yuan if an over-allotment option is fully used.

Asian chipmakers and companies building data centres and related infrastructure have ridden a wave of spending worth hundreds of billions of dollars from big tech firms. Earnings from so-called hyperscalers this week are likely to set the tone for near-term sentiment around the AI trade.

"The memory market remains tight with price increases expected to continue through the end of 2027," Ellie Wong, an analyst at TrendForce, a technology research firm, said.

"Amid persistent supply shortages, many customers are seeking to diversify their memory supplier base, which should significantly benefit CXMT and create more business opportunities."

Morningstar analyst Jing Jie said CXMT was well-placed to benefit from rising domestic AI demand, but its technology gap with global leaders could limit its share of the market for memory chips used in AI systems.

In its prospectus, CXMT said AI demand had fuelled the latest upswing in memory chips, but warned the market could weaken if AI investment slowed or rivals added too much supply.

The company expects first-half revenue to rise more than sevenfold to 110 billion yuan to 120 billion yuan. It expects net profit of 66 billion yuan to 75 billion yuan, reversing a year-earlier loss.

Bata Shoe Company (Bangladesh) Ltd has reported a stellar financial performance for the second quarter of 2026, navigating a complex retail landscape to deliver a staggering 238% year-on-year growth in net profit.

Despite persistent macroeconomic challenges, including high inflation and reduced operating hours for retail outlets, the company successfully transitioned from a loss-making position last year to a robust profitable one this year, according to the company's press release.

According to the company's unaudited financial statements for the April-June 2026 quarter, approved during a board of directors meeting today (27 July), the multinational footwear major recorded a total revenue of Tk188.98 crore. This represents a healthy 19% increase compared to the Tk158.8 crore earned during the same period in 2025.

The most significant highlight, however, was the bottom-line turnaround. While the company had incurred a net loss of Tk9.64 crore in the second quarter of the previous year, it posted a net profit of Tk12.6 crore in the recently concluded quarter.

The company's half-yearly performance also reflected a strong upward trajectory. For the first six months of 2026 (January-June), Bata reported a consolidated revenue of Tk568.68 crore, marking a 10% growth on a year-on-year basis. The net profit after tax for the first half reached Tk50.4 crore, representing an 86% increase over the Tk27.2 crore recorded during the first half of 2025. Consequently, the earnings per share (EPS) for the six-month period improved significantly to Tk36.87, up from Tk19.87 in the corresponding period of the previous year.

Bata Bangladesh attributed this sustained growth momentum to the focused execution of business strategies and effective management of operating expenses.

The management noted that the business demonstrated remarkable resilience despite global geopolitical uncertainties, seasonal market volatility, and a general slowdown in domestic economic activity. A key factor in this success was the timing of the major religious festivals. With Eid-ul-Fitr falling in the first quarter and Eid-ul-Adha in the second, the company was able to capitalise on heightened consumer demand through integrated marketing campaigns and the timely launch of several new product collections.

These commercial initiatives, paired with disciplined cost management and operational efficiencies, served as the primary drivers of profitability throughout the first half of the year, said the company in its statement.

However, the path to recovery was not without hurdles. The company pointed out that persistent food inflation, which exceeded 10% during the period, continued to squeeze consumer purchasing power and restricted discretionary spending on non-essential items like high-end footwear. Additionally, the government-imposed retail closing hour of 7pm, introduced as an energy conservation measure, reduced the effective trading time for retail outlets across the country, limiting potential sales opportunities during peak evening hours.

Despite these constraints, the company expressed optimism about its long-term prospects. The management reaffirmed its commitment to a strategy centred on innovation and operational excellence to create value for both customers and shareholders.

Bata has been a household name in Bangladesh since 1962, operating as a subsidiary of Bafin (Nederland) BV, which holds a 70% stake. With two manufacturing units in Tongi and Dhamrai producing 1,60,000 pairs of shoes daily and selling nearly three crore pairs annually, the company remains a cornerstone of the local footwear industry.

Bata's share price rose by 0.91% to close at Tk898.60 on the Dhaka Stock Exchange yesterday, bringing its total market capitalisation to Tk1,229.28 crore.

The National Board of Revenue has ordered a nationwide drive targeting high-yield revenue sectors, including tobacco, and the speedy disposal of major tax disputes as it seeks to raise revenue collection by nearly 47% in the fiscal 2026-27 despite concerns from field officials over the feasibility of the target.

The directives were issued at a meeting between senior NBR officials and field-level revenue officers at the revenue board's headquarters in Agargaon yesterday (26 July), according to sources familiar with the discussions.

Field officials told the meeting that achieving the ambitious revenue target would be challenging under current economic conditions. However, the NBR leadership instructed officials to work towards meeting the goal by focusing on sectors with the highest revenue potential.

Tobacco, audits and tax disputes

According to officials who attended the meeting, the NBR decided to intensify oversight of the tobacco sector, the country's single largest source of tax revenue, while accelerating the resolution of major revenue-related legal disputes.

The meeting also decided to expedite audits of around 66,000 income tax and VAT files that had been selected through an automated system.

An NBR VAT commissioner, speaking on condition of anonymity, told The Business Standard that discussions included introducing QR codes on cigarette packets to strengthen monitoring and installing AI-powered cameras at tobacco manufacturing facilities to curb tax evasion.

The government collects more than Tk40,000 crore in revenue annually from the tobacco sector. However, various studies have shown that a huge amount is being evaded in this sector due to counterfeit cigarettes, smuggled tobacco products and other reasons.

The official added that the NBR had identified 23 major tax-related cases involving substantial amounts of disputed revenue and would seek their early disposal. If necessary, the cases could be resolved through the Alternative Dispute Resolution mechanism following directions from the finance minister, the official said.

According to NBR sources, the 23 cases involve more than Tk50,000 crore in disputed revenue.

The commissioner said NBR Chairman Ahsan Habib has instructed officials to complete audits of the selected files promptly and intensify field-level enforcement drives to detect tax evasion.

Field concerns

Field officials also warned that a proposal to collect VAT every three months instead of monthly could negatively affect revenue collection.

The NBR asked field offices to submit within one week details of the operational challenges affecting revenue collection. The issues will be presented to the finance minister and the prime minister's economic adviser, according to the meeting.

Officials also discussed the possibility of the prime minister meeting field-level revenue officials to boost their confidence. According to one commissioner who attended the meeting, officials were informed that the meeting could take place on 18 August.

Confidence and institutional challenges

According to NBR sources, the meeting also addressed the impact of recent institutional changes on revenue administration.

Following the fall of the Hasina government in 2024, the government's decision to abolish the NBR and divide its functions into two separate departments triggered protests by revenue officials, who objected to the transfer of administrative authority to officers from the administration cadre.

The protests led to the temporary closure of customs houses. After the government adopted a tougher stance, at least five officials were sent into forced retirement, more than 20 were dismissed, and several hundred officials and employees were transferred as disciplinary measures, according to the sources.

The sources also said allegations of bribery and corruption against some field officials, combined with concerns over inadequate institutional support following attacks during anti-evasion operations, had weakened enforcement efforts and reduced officers' confidence.

The meeting was also informed that Finance and Planning Minister Amir Khosru Mahmud Chowdhury and Prime Minister's Economic Adviser Rashed Al Mahmud Titumir would work from the NBR headquarters one day each week to strengthen oversight of the revenue authority's activities.

The country's premier bourse extended its losing streak for a third consecutive session today (26 July), as a combination of domestic energy concerns and global geopolitical instability continued to weigh heavily on investor sentiment.

The persistent downturn has significantly eroded market value, pushing the Dhaka Stock Exchange's (DSE) total market capitalisation below the psychological threshold of Tk7 lakh crore for the first time in recent weeks.

The benchmark DSEX index fell 19 points, or 0.34%, to close at 5,784. Over the past three trading sessions, the broad index has lost a cumulative 114 points, marking a sharp reversal from the bullish momentum seen the previous week.

The blue-chip DS30 index followed a similar trajectory, edging down by 6 points to close at 2,186.

The market breadth remained overwhelmingly bearish as 240 issues declined compared to 116 that managed to advance, while 33 scrips remained unchanged on the DSE floor.

Market participation also saw a notable contraction, with daily turnover dropping by 17% to stand at Tk780 crore, down from the previous session's volume.

The three-day slump has wiped out approximately Tk8,500 crore from the bourse's market valuation, dragging the total market capitalisation down to Tk6.98 lakh crore.

According to the daily market review by EBL Securities, the capital bourse remained in a corrective phase as lingering concerns over potential gas supply disruptions to industrial units and heightened geopolitical tensions in the Middle East kept investors cautious.

Persistent uncertainty surrounding the proposed amendments to margin lending rules further dampened sentiment, preventing investors from taking fresh positions in fundamentally strong stocks.

The trading session was volatile from the opening bell. Although investors remained active on both the buying and selling sides, a late sell-off in several large-cap stocks during the final hour dragged the indices back into negative territory.

In a rare divergence from the broader market weakness, the general insurance sector attracted renewed buying interest, driven by selective accumulation following the release of positive earnings reports from several companies, EBL Securities added.

On the sectoral front, the textile sector led trading, accounting for 19.2% of the day's total turnover, followed by general insurance at 11% and pharmaceuticals at 10.4%.

Most sectors ended in negative territory, with mutual funds suffering the sharpest decline of 2.2%, followed by ceramics and financial institutions.

In contrast, general insurance was the best-performing sector, gaining 2.9%, while the services and food sectors also posted modest gains.

Among individual stocks, Bangladesh National Insurance topped the gainers with a 9.96% surge, followed by ML Dyeing, BD Thai Food and Aamra Technologies.

CAPM IBBL Mutual Fund was the day's biggest loser, plunging 9.02%, followed by Fareast Life Insurance, Meghna Pet and National Housing.

The bearish sentiment was even more pronounced at the Chittagong Stock Exchange (CSE), where the Selective Categories' Index (CSCX) dropped by 91 points to close at 9,444 and the broad CASPI index plunged by 141 points to settle at 15,478.

Trading activity at the port city bourse saw a catastrophic decline, with turnover plummeting by 74% to reach a meagre Tk5.15 crore.

Although corporate tax contributes around one-quarter of the country’s total tax revenue, the government collects relatively little from companies compared with the size of the economy.

Corporate income tax revenue in Bangladesh stands at around 1.5-1.8 percent of gross domestic product (GDP), around half the level of many peer economies, according to the latest report by the Organisation for Economic Co-operation and Development (OECD).

Bangladesh also trails several small economies in Latin America and the Caribbean, the report showed.

The poor collection leaves the government with less money to fund public services and increases its reliance on value-added tax (VAT), customs duties and borrowing. Ordinary people ultimately bear the cost of that dependence.

Business leaders and economists blame the weak collection on underreporting, the large informal economy, poor tax audits and weak enforcement. They also question the government’s generous tax exemptions for businesses every year.

For example, companies in the power, readymade garments, export processing zones and electronics sectors received Tk 73,989 crore in corporate tax exemptions in fiscal year 2022-23. Tax exemptions and reduced rates together amounted to 69 percent of the total direct tax collected that year.

The OECD findings come at a time when Bangladesh is under growing pressure to strengthen domestic revenue collection.

With one of the world’s lowest tax-to-GDP ratios, the National Board of Revenue (NBR) has repeatedly missed its annual targets, while the IMF reform programme calls for stronger domestic resource mobilisation.

WHY COMPANIES PAY LESS TAX

The country’s large informal economy is one of the main reasons corporate tax collection remains weak, as many businesses operate outside the tax net.

Nearly two-thirds of businesses still operate in the informal economy and remain outside the tax net, making formalisation the government’s first priority, according to Khondaker Golam Moazzem, research director at local think tank Centre for Policy Dialogue (CPD).

Meanwhile, compliance is weak even among registered companies. According to the NBR, about 1.60 lakh companies have tax identification numbers (TIN), but only 42,000 submitted tax returns in FY26.

Pointing to this widespread tax evasion and avoidance, Moazzem cited a CPD study estimating that Bangladesh lost about Tk 1.13 lakh crore in corporate tax revenue in FY23.

The revenue loss was equivalent to around 17 percent of the national budget that year.

The study also found that corporate tax evasion had risen steadily over the years from Tk 96,503 crore in 2012.

Moazzem said even among registered taxpayers, many companies fail to fully report their financial position.

“Incomplete or inaccurate financial statements, aided by weak auditing and, in some cases, collusion between auditors and tax officials, mean firms often pay less tax than their actual financial capacity warrants,” he said.

On the weak collection, Rupali Haque Chowdhury, president of the Foreign Investors’ Chamber of Commerce and Industry (FICCI), pointed to two possible reasons.

She said either many companies are genuinely unprofitable and pay only the minimum tax, or profitable firms are underreporting earnings or failing to comply with tax laws.

“A company may not make a profit in a particular year, and that is understandable. But if a company has been operating for 10 or 20 years without ever paying corporate tax, it points to a serious compliance issue that deserves scrutiny,” she said.

She urged regulators to strengthen enforcement, develop mechanisms to identify VAT and corporate tax evaders, and closely examine long-operating businesses that consistently report no taxable profits, in the interest of a level playing field for honest taxpayers.

A SMALL TAX BASE, HEAVY RELIANCE

Despite collecting relatively little corporate tax, Bangladesh depends heavily on it because the country’s overall tax collection is weak.

Corporate income tax accounts for about one-quarter of total tax revenue, compared with 19.5 percent across Asia-Pacific economies and 11.9 percent in OECD countries, according to the OECD report.

“It’s because Bangladesh’s overall tax collection is low, not because the corporate tax system is particularly strong,” Moazzem said.

“A sound tax structure should rely primarily on direct taxes, with direct taxes contributing about two-thirds of total revenue. Bangladesh still depends heavily on indirect taxes, indicating that the tax system remains structurally weak,” he added.

Others say weak corporate profitability has also held back tax collection.

Sabbir Ahmed, president of the Institute of Chartered Accountants of Bangladesh (ICAB), said successive economic shocks had squeezed company profits.

“Corporate income tax is levied on profits. Since the Covid pandemic, businesses have faced multiple headwinds -- from the Russia-Ukraine war and currency depreciation to high inflation -- which have eroded profitability. Lower corporate tax collection is therefore not unexpected,” he said.

Sabbir said Bangladesh has also failed to broaden its tax base, with many sole proprietorships and informal businesses still running outside the formal reporting framework despite recent digitalisation efforts.

Non-listed companies currently pay a corporate tax rate of 27.5 percent, one of the highest statutory rates in the region, while listed companies pay 22.5 percent under the five-year corporate tax roadmap announced in this year’s budget. Banks, insurance companies and other financial institutions pay 37.5 percent.

Asked whether Bangladesh’s relatively high corporate tax rate discourages compliance, Sabbir said the statutory rate is “not the major issue”.

“The bigger concern is the minimum tax, which raises the effective tax burden even when companies earn little or no profit,” he said, adding that many businesses continue to struggle with high costs and weak profitability.

He also called for faster digitalisation of tax administration, greater automation to reduce contact between taxpayers and officials, and stronger engagement between the NBR and professional bodies to improve compliance and revenue collection.

TAX EXEMPTIONS TAKE A TOLL

The country’s extensive tax incentives are also reducing corporate tax collection, according to Apurba Kanti Das, a former member of the NBR.

Over the years, the government has offered tax holidays and reduced tax rates to a wide range of industries, including businesses in economic zones and high-tech parks, power generation companies, electronics manufacturers and the readymade garment sector.

“When so many major sectors enjoy tax exemptions or concessional rates, it is only natural that corporate income tax collection remains relatively low compared with many other countries,” Apurba said.

Apurba said the country’s graduation from the least developed country (LDC) category should prompt a gradual shift in tax policy.

“As Bangladesh becomes a developing country, domestic revenue will have to play a much bigger role. The government should gradually move away from the culture of widespread tax exemptions and bring businesses under a more uniform corporate tax regime,” he said.

Apurba, also a former commissioner of the Large Taxpayers Unit (LTU), said tax holidays should be reserved for genuinely new industries rather than sectors that have long been established.

“This cannot happen overnight,” he said. “The government should adopt a clear five to ten-year roadmap to gradually phase out unnecessary tax exemptions instead of making abrupt policy changes.”

Snehasish Barua, director of SMAC Advisory Services Limited, said Bangladesh’s narrow tax base, generous tax incentives and large informal economy meant a relatively small group of compliant taxpayers bore a disproportionate share of the tax burden.

“The high VAT rate encourages underreporting of sales, while generous tax exemptions and sector-specific incentives continue to erode the revenue base,” he said.

Snehasish also pointed to weak enforcement and the lack of integration between income and asset databases as major obstacles to improving tax compliance.

Bangladesh and the Maldives are exploring a direct shipping link to facilitate bilateral trade and strengthen maritime connectivity between the two countries.

The proposal came up during a bilateral meeting between Foreign Minister Khalilur Rahman and his Maldivian counterpart Iruthisham Adam in Male today (26 July), according to a press release from Bangladesh's Foreign Ministry.

The two ministers discussed ways to expand cooperation in migration and expatriate welfare, tourism, education, health, blue economy and maritime connectivity.

They exchanged views on the proposed direct shipping link, which is expected to facilitate bilateral trade and improve connectivity between the two South Asian nations.

The two sides also discussed possible high-level visits as part of efforts to further deepen bilateral engagement.

Khalilur reaffirmed the government's "Bangladesh First" foreign policy and underscored the importance of strengthening people-to-people ties between the two friendly countries.

The foreign ministers also explored ways to enhance cooperation in areas that could contribute to stronger economic and people-to-people links between Bangladesh and the Maldives.

Maldives' State Minister for Foreign Affairs Mohamed Fahmy Hassan and Bangladesh High Commissioner to the Maldives Md Nazmul Islam were also present at the meeting.

The proposed shipping link comes as the two countries seek to strengthen maritime connectivity and expand bilateral trade. Improved direct connectivity could help facilitate the movement of goods between the two countries while supporting broader economic cooperation.

The securities regulator has extended the deadline for listed companies to appoint at least one female independent director to their boards by one year, to December 2026, after many firms said they were struggling to find qualified candidates.

In a directive issued on Sunday, the Bangladesh Securities and Exchange Commission (BSEC) revised the compliance deadline for the requirement under the Corporate Governance Code, 2018, from December 2025 to December 2026.

The extension follows requests from listed companies and market stakeholders, who cited difficulties in identifying eligible and qualified female professionals to serve as independent directors within the stipulated timeframe.

The requirement, stipulated under Condition 1(2)(a) of the Corporate Governance Code, mandates every listed company to appoint at least one female independent director as part of efforts to strengthen corporate governance, board diversity and independent oversight.

According to the Dhaka Stock Exchange (DSE), more than 100 listed companies had yet to comply with the provision as of June this year.

A BSEC official said the requirement remains an important component of the Corporate Governance Code. However, considering the practical challenges faced by companies and their requests, the commission decided to grant additional time for compliance.

The directive also instructed the Dhaka Stock Exchange and the Chittagong Stock Exchange to immediately notify all listed companies and relevant stakeholders of the revised deadline to facilitate timely complisance.

MEP Hi-Tech Industrial Park Limited, a concern of MEP Group, has started construction of a Tk200 crore electrical and electronics manufacturing facility at the National Special Economic Zone (NSEZ) in Mirsarai, Chattogram, with commercial production targeted for 2029.

The project is being developed on around 10 acres of land and will manufacture a range of electrical products, including electric wires, switches and sockets, fans, LED lights and circuit breakers.

Once fully operational, the facility is expected to create around 2,000 direct and indirect jobs. The company also plans to expand exports of its "Made in Bangladesh" electrical products alongside meeting domestic demand.
The Bangladesh Economic Zones Authority (Beza) and MEP Hi-Tech Industrial Park Limited laid the foundation stone of the project today (26 July), according to a Beza press release.

Beza said the fully locally-funded project will establish a modern, technology-driven and environment-friendly electrical products manufacturing cluster at the NSEZ.

Jahangir Alam Chaklader, managing director of MEP Hi-Tech Industrial Park Limited, said the company is committed to developing a world-class, technology-driven and environmentally friendly manufacturing facility.

He expressed hope that the project would help meet domestic demand while strengthening the competitive position of Bangladeshi electrical products in international markets.

MEP Hi-Tech Industrial Park Limited is a concern of MEP Group, which was established in 1974. According to Beza, the group has around 2,000 corporate clients and a distribution network of more than 1,000 outlets across the country.

The group's businesses include Mohammadi Electric Wire & Multi Products (MEP) Ltd, MEP Fan Ltd, MEP Energy Saving Lamps Industries Ltd, MEP Polymer Industries Ltd, Chaklader Shipping Lines Ltd, MEP Light Industries Ltd, MEP Printing and Packaging Industries and MEP Agro Ltd.

The project follows a land lease agreement signed between Beza and MEP Hi-Tech Industrial Park Limited on 18 February 2026 for establishing a modern electrical products manufacturing facility at the NSEZ.

Beza has recently introduced time-bound plans to accelerate construction and development work by investors. MEP Hi-Tech Industrial Park Limited started construction in line with the timeline, the authority said.

Seventeen industrial enterprises are already operating at the NSEZ, while around 20 others are under construction.

The NSEZ, the country's largest planned industrial zone, is being developed along a 25-kilometre stretch of the coast in Mirsarai, with industrial facilities and integrated urban amenities.

The government has intensified efforts to attract foreign investment as it seeks to transform Bangladesh into a $1 trillion economy by 2034, State Minister for Foreign Affairs Shama Obaed Islam said on Sunday (26 July).

Speaking to reporters after a closed-door roundtable titled "Roadmap for Trade, Growth and Economic Diplomacy-2026: The Capital Dialogue" at the Ministry of Foreign Affairs, she said several countries are already in discussions with Bangladesh over potential investments in different sectors.

"Many investors are already contacting the Bangladesh Investment Development Authority (Bida) and working with both Bida and the Commerce Ministry," she said, adding that China, Japan, the United States and several other countries have expressed interest in investing in Bangladesh.

The roundtable was attended by Finance and Planning Adviser Rashed Al Mahmud Titumir, alongside senior government officials and policymakers.

Shama Obaed said the government is placing particular emphasis on the blue economy, describing it as one of the country's priority sectors for future investment.

"We want various European countries to invest in the blue economy," she said, adding that Bangladesh sees significant untapped potential in marine resources and plans to hold more policy dialogues to identify challenges and attract investment.

She said the Ministry of Foreign Affairs is prioritising economic diplomacy in line with the government's broader policy agenda, with discussions focusing on ways to strengthen investment, trade and long-term economic growth.

The government is also developing a new economic model to address current financial challenges through higher investment, administrative reforms, industrial revitalisation and long-term agricultural transformation, with the goal of building a $1 trillion economy by 2034, she said.

According to the state minister, efforts are under way to restore economic momentum and build a more resilient and competitive economy.

The discussion follows the Bangladesh Trade and Investment Conference 2026, held in Dhaka on 13 June, where government officials, diplomats, development partners and business leaders explored strategies to strengthen trade, attract foreign direct investment and enhance economic resilience.

The conference, jointly organised by the Ministry of Foreign Affairs and Bida under the theme "Navigating Risks – Unlocking Resilience," focused on trade and investment policy, financing, market access, industrial competitiveness, artificial intelligence, creative industries and sports, as Bangladesh prepares for graduation from least developed country (LDC) status.

Bangladesh has set an ambitious export goal for the current fiscal year, targeting a 15% jump in earnings to $63.4 billion despite factories operating well below capacity for months amid a persistent shortage of orders.

The challenge is clear, considering exports shrank 0.58% in the last fiscal year.

Economists and exporters say meeting the target will require far more than a rebound in global demand. Manufacturers continue to struggle with gas shortages, double-digit borrowing costs, weak investment and US tariffs, while sluggish consumer spending in major Western markets and geopolitical tensions continue to cloud the global trade outlook.

Commerce Minister Khandaker Abdul Muqtadir today (26 July) announced the export target for 2026-27 fiscal year at a press conference at the ministry.

The government aims to earn $63.4 billion from exports–- $55.2 billion from merchandise shipments and $8.2 billion from services. The target represents a 15% increase over the actual export earnings recorded in FY26.

Of the merchandise export target, the government expects the ready-made garment sector to earn $44.5 billion, up from the $38.7 billion earned in previous fiscal.

For FY26, the government had targeted $63.5 billion in total exports, including $55 billion from goods and $8.5 billion from services. However, the target was missed.

Merchandise exports fell 0.58% year-on-year to $48 billion, while services exports stood at $7 billion. The services figure will be finalised in two to three months, Muqtadir said.

As a result, the overall export target for FY27 is effectively lower than the previous year's target, despite being higher than last year's actual export earnings.

'Realistic opportunity to recover'

At the press conference, Muqtadir, on the feasibility of achieving the export growth target, said business confidence had improved following the restoration of policy certainty.

He added that clarity over Bangladesh's LDC graduation and the country's market access during the transition period, together with ongoing trade negotiations, should support export growth despite domestic challenges, including the energy shortage.

He mentioned that the government had launched initiatives to accelerate exports by improving the business environment, facilitating investment and simplifying public service delivery, which he expected would produce tangible results in the near term.

He said negotiations on free trade agreements (FTA) with South Korea and the UAE are in final stages. The government aims to conclude FTAs with several other countries within this year and expects to begin formal negotiations with the European Union on an FTA shortly.

Asked when the Economic Partnership Agreement (EPA) with Japan would take effect, he said the deal would be tabled at the next session of parliament for ratification.

Regarding the trade deal with the US, Muqtadir said only the tariff's name had changed, not its rate, and it would not pose an additional obstacle to exports.

On export diversification, he said to reduce reliance on the ready-made garment sector, the government is prioritising leather, footwear, shipbuilding, ship recycling, light engineering and information technology, with sector-specific action plans to be rolled out soon.

"We want garment exports to reach $80 billion, while other sectors together contribute another $100 billion," he said.

The minister acknowledged that domestic gas production had reached its limit and Bangladesh was already importing 900 million cubic feet of liquefied natural gas a day.

With only two FSRUs in operation, the country cannot increase imports further, making any near-term improvement in energy supplies unlikely. He said the government plans to install two more FSRUs and is treating the issue as a priority.

Muqtadir said the gas shortage has left 30% of the country's installed industrial capacity idle. "While there is no quick fix, the government is working to address the problem."

'May not reach 15%, but could come close'

Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue (CPD), said the government targeted 9% export growth in FY26 over the previous year's actual earnings, but merchandise exports ultimately contracted.

He cited the US' 10% new tariff, LDC graduation uncertainty and global headwinds, alongside high business and borrowing costs at home, as major obstacles to export growth. "Given these domestic and global conditions, a 15% export growth target is highly ambitious."

However, the economist said stronger export growth remains achievable if the government effectively implemented the positive measures announced in the budget, including the national single window, faster port clearance, and reliable gas supplies.

"It may not reach 15%, but it could come close," he added.

Shehab Udduza Chowdhury, vice-president of BGMEA, said the government has announced some positive policies, but implementation remains weak.

"Overall, the challenges are mounting, making the target unrealistic," he said.

For instance, he said India's FTA with the European Union will allow its exports to enter the bloc duty-free within the next five to six months, creating a fresh challenge for Bangladesh.

He warned that renewed tensions in the Middle East could trigger another energy shock, while gas shortages at home had already intensified.

Shehab further said manufacturers were being squeezed by rising production costs while weak demand prevented them from raising export prices.

"If the government can at least resolve domestic bottlenecks, particularly the gas crisis, exporters may be able to achieve modest positive growth," he said.

Md Fazlul Hoque, managing director of Plummy Fashions and former president of the BKMEA, shared a similar view, saying that there is little indication that global apparel demand will rebound sharply anytime soon

"At the same time, high borrowing costs, gas shortages and a weakened banking sector are making financing more difficult and driving up production costs. Bangladesh also lags competitors in productivity," he told TBS.

He added that uncertainty over global energy prices persists despite the easing of recent conflicts. "The government's target does not reflect the realities facing exporters."

Bangladesh is seeking to deepen economic ties with China as part of a broader strategy to accelerate industrialisation, modernise infrastructure and reduce vulnerability to global economic shocks, Finance Adviser Dr Rashed Al Mahmud Titumir said on Sunday, outlining what he described as a pragmatic, interest-driven approach to foreign policy under the country's new government.

Speaking at a seminar titled "Bangladesh-China Relations: Enhanced Trust and New Direction", Titumir said the relationship with Beijing would be guided by Bangladesh's national priorities rather than geopolitical alignments, as Dhaka pursues an ambitious target of becoming a US$1.0 trillion economy by 2034.

"China occupies a place of special importance," he said. "Our foreign policy is primarily driven by our social, economic and political factors. Our task now is to translate our shared vision into tangible outcomes that benefit the peoples of both countries."

South Asia Institute of Policy and Governance (SIPG) of the North South University organised the seminar.

His remarks reflect Bangladesh's efforts to position itself amid intensifying strategic competition between China, the United States and India, while maintaining a foreign policy centred on economic development. The government has repeatedly described its approach as "Bangladesh First", emphasising national interest over bloc politics.

Titumir said Bangladesh's newly approved five-year strategic framework for reform and development closely complements China's forthcoming 15th Five-Year Plan, creating opportunities for cooperation in industrial development, infrastructure and investment.

Rather than pursuing growth through consumption-led investment, Bangladesh is prioritising production-oriented foreign investment, he said, arguing that Chinese expertise in manufacturing and industrial upgrading makes Beijing a natural partner for the country's economic transformation.

"We are looking for investment for industrialisation," he said. "China has followed that particular form of economic modernisation."

He said the government had inherited an economy and public institutions weakened by years of mismanagement and was pursuing a phased strategy of recovery, restoration and reconstruction before accelerating growth.

The finance adviser also linked the government's economic philosophy to the Bangladesh Nationalist Party's historical development policies, crediting former Prime Minister Begum Khaleda Zia with overseeing one of the country's fastest periods of poverty reduction and describing the economic vision of late President Ziaur Rahman as rooted in indigenous solutions rather than externally prescribed austerity.

Without naming previous governments directly, Titumir said Bangladesh's development strategy would reflect its own historical experience rather than copy any foreign economic model.

Infrastructure emerged as a central theme of his address. Bangladesh is seeking Chinese participation in rail modernisation, expressways, port expansion and multimodal logistics networks, including implementation of the framework agreement on Mongla Port modernisation signed during Prime Minister Tarique Rahman's recent visit to China.

He also welcomed President Xi Jinping's proposal for a transport corridor linking Kunming and Chattogram and reiterated Bangladesh's interest in discussions on the China-Bangladesh-Myanmar Economic Corridor, saying improved regional connectivity would stimulate trade, investment and tourism.

The government is encouraging Chinese companies to relocate manufacturing operations to Bangladesh and integrate the country into regional and global value chains, while also attracting investment from a broader range of international partners.

"We do not believe in exclusive relationships; we believe in inclusive relationships," Titumir said.

Trade remains heavily skewed towards China, however. Bilateral trade has reached nearly US$24bn annually, while Bangladesh's exports remain below US$1bn.

Titumir said narrowing that imbalance had become a priority and urged greater utilisation of China's duty-free and quota-free market access. Bangladesh hopes to expand exports of garments, jute products, leather goods, pharmaceuticals, agricultural products and processed foods.

He welcomed recent Chinese approval for import of Bangladeshi guava and jackfruit and called for similar access for additional products.

The finance adviser also identified water management as another priority area for bilateral cooperation, highlighting Bangladesh's interest in Chinese expertise on flood control, river management, hydrological forecasting and irrigation.

He described the Teesta River Comprehensive Management and Restoration Project as one of Bangladesh's most important development priorities and expressed hope for continued Chinese technical and financial support.

Beyond economics, Titumir called for closer cooperation in renewable energy, healthcare, digital infrastructure, education and cultural exchanges to broaden public engagement between the two countries.

On regional diplomacy, he thanked China for its role in supporting efforts to resolve the Rohingya refugee crisis and urged Beijing to continue facilitating conditions for the refugees' safe and sustainable return to Myanmar.

He also expressed Bangladesh's support for revitalising the South Asian Association for Regional Cooperation (SAARC), while seeking Chinese backing for Dhaka's aspirations to join groupings including BRICS, the Shanghai Cooperation Organisation and the Regional Comprehensive Economic Partnership.

The speech signals that Bangladesh intends to deepen engagement with China while simultaneously pursuing diversified international partnerships - an approach the government argues will strengthen economic resilience in an increasingly fragmented global economy.Stock Market Data

Dr Liu Zongyi, director of the South Asia Studies of the Shanghai Institute for International Studies, said "Not long ago, Bangladesh Prime Minister Tarique Rahman hit a successful visit to China.When President Xi Jinping met with Prime Minister Tarique Rahman, the two sides announced the building of a China Bangladeshi community with a shared future in the new era, opening a new chapter for bilateral relations". He noted that this high-level visit helped bilateral relations achieve stronger political mutual trust, a deeper practical cooperation, and more effective international coordination.

"Our two countries aim to realize organization together. We are driven by shared development. We take shared governance as our responsibility and connected each other through exchanges between civilizations. We work hands in hand for a shared future".

He noted that present Bangladesh-China partnership goes beyond its ordinary bilateral friendship.

Foreign Secretary Asad Al Siam said during his bilateral meeting with Bangladesh PM Tarique Rahman, Chinese President Xi assured that China would stand beside Bangladesh regardless of changes in the international environment which conveys a message of confidence in the bilateral partnership at a time of increasing global uncertainty.

According to the foreign secretary, the visit has set a high benchmark. "The agreements are ambitious. The political understanding has been refreshed. The economic opportunities are substantial. Our task now is to translate these achievements into tangible outcomes for the people. Together with our colleagues, both in public and private sector, we are ready to do so".

Moderated by Professor Sheikh Tawfique M Haque, Director, South Asia Institute of Policy and Governance (SIPG) of the North South University, the seminar was also addressed by Benazir Ahmed, a member of the Board of Trustees of the university.

Foodpanda Bangladesh’s losses rose 40 percent to €11.76 million last year, extending a losing streak that now stretches back a full decade, according to parent company Delivery Hero’s annual financial statements.

The Bangladesh operations of the German company comprise four entities: the core food delivery business; the quick-commerce arm Pandamart; cloud kitchen unit DH Kitchens; and a holding company, Jade 1343 GmbH & Co Vierte Verwaltungs KG.

Together they have lost €110.66 million since 2016 and have yet to turn a profit in any year, the statements show.

Food delivery accounts for the largest share of that total, with cumulative losses of €79.22 million. Its losses widened 65 percent last year to €7.14 million, accounting for over 60 percent of the group’s total loss.

Among the other entities, Pandamart logged a loss of €2.27 million last year, reaching a total of €20.27 million since its launch in 2020. DH Kitchens narrowed its losses by 15 percent to €0.34 million, with €2.28 million lost since 2020. Jade 1343 lost €2.01 million last year, taking its cumulative losses since 2021 to €8.89 million.

THE UBER DEAL

Foodpanda has yet to turn a profit in Bangladesh since entering the market in 2013. Its decade of losses now intersects with Uber’s $13 billion acquisition offer for Delivery Hero, announced last week.

The logic behind the deal, according to Uber, is to cross-sell by gaining access to takeaway customers in markets where it offers rides but not food, such as South Korea and the Middle East, and converting them into users of both.

Uber reckons that its cross-platform users generate roughly three times the gross bookings and higher profits than single-product users.

But in the case of Bangladesh, Uber exited the food delivery business within 14 months in June 2020 after failing to gain any ground despite considerable cash burn in the intensely competitive market.

There are two possible scenarios regarding the acquisition, said AKM Fahim Mashroor, former president of the Bangladesh Association of Software and Information Services. One possibility is that Uber retains the Foodpanda brand and the business continues to operate largely as it does now, he said.

The other scenario is that Uber discontinues the brand altogether, said Mashroor, also the chief executive officer of BDjobs.com. “Since Bangladesh is not a particularly lucrative market, that is also a real possibility -- everything could change.”

Meanwhile, responding to queries from The Daily Star, Foodpanda Bangladesh said it is yet to receive any indication of changes to its operations following the acquisition announcement.

“Nothing changes today. Any organisational decisions and specific branding decisions will be worked through after closing, which is expected in the second half of 2027,” the company said in a statement.

“Bangladesh is one of Delivery Hero’s most dynamic markets, possessing immense potential for long-term growth. Our focus and investments over the last decade have been dedicated to building cutting-edge technology, empowering communities economically and fostering ecosystem development for customers and partners,” the company added.

Uber did not respond to The Daily Star’s request for comment.

The government yesterday set a merchandise export target of $55.2 billion and a services export target of $8.2 billion for fiscal year 2026-27. Economists and business leaders said achieving the targets would be difficult amid an uncertain global environment and persistent domestic constraints.

The targets are 15 percent higher than the actual export earnings in the last fiscal year, Commerce Minister Khandakar Abdul Muktadir said at a press conference at the commerce ministry.

Bangladesh exported $48 billion worth of goods in FY2025-26, down 0.58 percent from the previous year.

Garment exports, which account for more than 80 percent of the country’s export earnings, fell 1.64 percent year on year to $38.70 billion in FY26. Industry leaders said exports are unlikely to recover quickly as higher energy costs, weaker consumer demand in key markets and rising inventories continue to weigh on global orders.

Before FY2024-25, merchandise exports had declined for two consecutive years after reaching a record $52 billion in FY22.

Abdur Razzaque, chairman of the Research and Policy Integration for Development, said achieving 15 percent export growth was possible, but considerable uncertainty remained.

Even the latest 10 percent tariff imposed by the US could affect exports. However, since shipments were weak in the last fiscal year, they may rebound this year, he added.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association, said achieving even 10 percent export growth would be difficult given the ongoing gas shortage, which has disrupted industrial production over the past 10 days.

“The current situation does not suggest the target is achievable. Exporters will be satisfied if they can achieve 2 percent to 4 percent growth by the end of the year,” Hatem said.

M Masrur Reaz, chairman and CEO of Policy Exchange Bangladesh, also said the target would be difficult to achieve because of both domestic and external pressures.

At the briefing, Muktadir did not provide a sector-wise breakdown of the export target but said he remained optimistic that exports would recover and the goal could be achieved.

The government is counting on business stimulus measures, budget support and greater policy stability following the return of an elected government to help revive exports.

He also said exports could receive a further boost from new trade agreements. The Economic Partnership Agreement (EPA) with South Korea is expected to be signed within the next few months, while the EPA signed with Japan in February is expected to take effect after Parliament ratifies it in its next session.

Bangladesh also plans to sign at least six free trade agreements by the end of the year as negotiations progress. It is also negotiating a free trade agreement with the European Union to retain duty-free access to its largest export market after graduating from the group of Least Developed Countries (LDCs).

The country’s graduation to developing-country status may be delayed by another three years after two UN bodies, including the United Nations Committee for Development Policy (UNCDP) and the United Nations Economic and Social Council (ECOSOC), backed Bangladesh’s request.

The extension could provide greater certainty for businesses and trading partners by allowing Bangladesh to retain its LDC status until 2029, the minister said.

Replying to a question, Muktadir said improving energy supplies to industry remained a top priority, although it could not be done overnight. The government is procuring two more Floating Storage and Regasification Units (FSRUs) to increase gas supplies to factories.

He said lower exports in the last fiscal year were driven by both domestic political uncertainty and adverse global conditions. With an elected government in place, policy stability and predictability would help boost exports of goods and services, he added.