Bangladesh has retained its position as the world's second-largest apparel exporter, but its export growth slowed sharply in 2025, trailing almost all of its major Asian competitors as rivals gained ground in the global market.

According to World Trade Organization (WTO) data released recently, Bangladesh exported $38.82 billion worth of garments in 2025, up just 0.89% from $38.48 billion a year earlier.

The slight increase was well below the 4.46% growth recorded by the global apparel market, reflecting that Bangladesh is losing momentum even as worldwide demand recovers.

Only China, Türkiye and the United States posted declines among the major exporters.

Vietnam, Bangladesh's closest competitor, recorded 10.53% growth to $37.51 billion, narrowing the gap between the two countries to just $1.31 billion. Cambodia registered the fastest expansion among leading exporters at 16.88%, while Pakistan grew 6.83%, Indonesia 5.79%, and India 5.47%.

Fazlul Haque, former president of the Bangladesh Knitwear Manufacturers and Exporters Association, said the slowdown in Bangladesh's export growth was the main concern as competing countries were outperforming it in the global market.

"China and Vietnam pursued aggressive marketing over the past year, particularly after Trump imposed tariffs and Bangladesh could not match that effort. As a result, we have fallen behind in this challenging market, while our competitors have moved ahead," he said.

He warned that unless Bangladesh regains its lost ground quickly, the decline in market share could become permanent. "If buyers who once sourced 50% of their orders from Bangladesh cut that to 45% and shift the rest elsewhere, it may be difficult to win them back. We need to act now and take prompt measures to regain our lost position."

Bangladesh retains 2nd positon

Despite the sluggish performance, Bangladesh maintained a 6.76% share of global apparel exports, behind only China, which accounted for 27.35% of the market.

However, Bangladesh's market share slipped from 7% in 2024, while Vietnam's rose from 6.17% to 6.53%, bringing it closer than ever to overtaking Bangladesh.

Exporters said Bangladesh is struggling to capture new orders at a time when many competing manufacturing hubs are expanding rapidly.

The country's apparel industry has faced a series of challenges in recent years, including persistent energy shortages, elevated borrowing costs, political uncertainty and weaker investment in manufacturing capacity. Industry leaders have also repeatedly warned that gas shortages and rising production costs are eroding Bangladesh's competitiveness.

China, the world's largest exporter, continued to lose market share as exports fell 4.92% to $157.11 billion in 2025. Since 2021, China's share of global apparel exports has dropped from 31.71% to 27.35%.

Much of the business shifting away from China appears to be benefiting other Asian producers. Vietnam, Cambodia and Pakistan all outpaced global growth, while Bangladesh's expansion remained largely stagnant.

Bangladesh's export performance has also become increasingly volatile. After surging 27.64% in 2022 as global demand rebounded following the pandemic, exports fell 21.49% in 2023 before recovering 7.23% in 2024. The slowdown to less than 1% growth in 2025 suggests the recovery has lost momentum.

The Bangladesh Securities and Exchange Commission (BSEC) has undertaken a series of plans to revive the country's long-sluggish stock market by increasing the participation of institutional investors through removal of regulatory barriers in existing policies.

The newly appointed commission plans to review IPO (Initial Public Offering) rules to revive the primary market, simplify margin rules to improve money flow, and introduce performance-based mechanisms for mutual funds to attract institutional investors.

In an interview with The Business Standard, the newly appointed BSEC Chairman Masud Khan said his immediate priority is to maximise deregulation to ensure the market's natural growth, and aggressively bring fundamentally strong scrips and listings into the market.

He also plans to ease bureaucratic bottlenecks by cutting down paper work through the introduction of automation in his office.

"The fundamental weakness of Bangladesh's stock market is that it has historically been dominated by retail investors. Institutional participation is virtually absent in the true sense," Masud Khan said.

He said the commission has already begun implementing reforms. "On my second day in office, I abolished the floor price mechanism. It had paralysed the market for nearly two years and caused unprecedented suffering."

He also cited resolving the Beximco Pharmaceuticals GDR issue on the London Stock Exchange and strengthening market surveillance as early achievements.

"The Dhaka Stock Exchange has been instructed to modernise its surveillance system within six months and introduce AI-based market monitoring within a year," he said.

IPO proceeds to be allowed for debt repayment

Current regulations limit the use of IPO proceeds for repaying bank loans to 30%.

Masud Khan said the commission is considering removing or substantially relaxing the restriction. "Companies burdened with expensive debt should be able to raise equity to deleverage. Lower borrowing costs ultimately benefit shareholders."

He also said IPO approvals have become excessively slow because past financial scandals prompted regulators to adopt an overly cautious approach.

According to him, the current Public Issue Rules contain several impractical provisions, including the requirement for at least 40 eligible institutional investors to participate in book building before price discovery can begin.

"In a market as shallow as Bangladesh's, that threshold is unrealistic," Masud said.

He added that the Dutch auction mechanism under the book-building system also needs reform. "We are re-examining the entire pricing mechanism to ensure companies receive fair, market-driven valuations."

Direct listing to be opened for high-cap private companies

The BSEC chairman said one of his biggest priorities over the next five years is to reform Bangladesh's direct listing regulations.

Current rules allow only state-owned enterprises to use direct listing.

"Right now, our direct listing rules are incredibly archaic; they explicitly state that only state-owned enterprises can utilise direct listing, completely barring the private sector. This is ridiculous, and I am going to change it immediately." he said.

"Furthermore, the old rules forced companies to offload a mandatory 25% of their shares right away. I am going to slash that threshold down to 10%," he added.

According to Masud, companies such as Banglalink or Incepta Pharmaceuticals should not have to undergo lengthy evaluations because they are already well-established businesses.

"The only time required will be for price discovery and the actual market offer," he said.

Large companies may be required to list

Masud Khan also wants legislation requiring large companies operating with substantial public funds to become listed entities.

He proposed defining Public Interest Entities (PIEs) as companies whose combined equity and outstanding debt exceed Tk300 crore. "If a private company's total capital employed (equity plus outstanding debt) crosses a threshold of, say, Tk300 crore, it is effectively operating on massive public funding. In my view, such companies should be legally mandated to list on the stock exchange."

He also proposed requiring multinational companies operating in Bangladesh to incorporate locally and list on the domestic bourse.

"Institutions such as HSBC and Standard Chartered operate as branches. I believe they should register as local companies and become listed," he said.

Pension, provident funds should invest in the market

Masud said provident, pension and gratuity funds represent a major untapped source of institutional investment.

Although legal amendments already allow up to 25% of these funds to be invested in listed equities, fund managers have largely avoided doing so because of market volatility.

"We must fix the institutional pipeline by enforcing the Trust Act. Right now, countless companies are flagrantly violating the Trust Act by taking their provident and gratuity funds and simply parking them as standard deposits in commercial banks," he said.

BSEC to introduce key performance indicators of mutual funds

The BSEC also plans to introduce internationally recognised key performance indicators (KPIs) for mutual funds.

These would include measures such as one-year NAV growth, rolling returns and expense ratios, with all data published on a central website.

"Investors will easily see which funds perform well and which consistently underperform," BSEC chairman said.

He ruled out extending the tenure of closed-end mutual funds. "Let me state this with absolute clarity: As long as I am the Chairman of the BSEC, no extension for any closed-end mutual fund will ever be granted."

Margin rules to be simplified

Masud Khan said existing margin lending regulations are overly restrictive and limit liquidity in the market.

Commercial banks currently have plenty of liquidity, but much of it cannot flow into the stock market because of rigid lending rules.

He said regulations such as suspending margin lending once a stock's price-to-earnings ratio exceeds 30 are too inflexible.

"BSEC will only set broad KPI boundaries. Beyond that, brokers will have the freedom to design their own risk management frameworks and determine who to lend to," Masud khan stated.

The International Monetary Fund (IMF) has asked the National Board of Revenue (NBR) how it plans to achieve its Tk6.04 lakh crore revenue target for the fiscal 2026-27, which is about 45% higher than the FY26 collection.

The IMF mission also sought details of the tax and fiscal measures introduced in the latest national budget during a meeting with senior NBR officials at the revenue authority's headquarters in Dhaka today (13 July), according to sources who attended the meeting.

On the same day, the IMF delegation led by Ivo Krznar, the mission chief for Bangladesh and Hong Kong, also met Finance Minister Amir Khosru Mahmud Chowdhury.

The IMF representatives arrived on Sunday for a five-day fact-finding mission to assess the feasibility of a fresh loan package worth nearly $4.5 billion proposed by the government.

The finance minister told journalists after the meeting that the IMF delegation had expressed appreciation for the government's financial reforms and its political commitment.

He said the government had clarified the principles on which its new programme with the IMF would be based, and that the IMF had fully agreed with the proposed framework.

"Major changes cannot be made overnight, and the IMF has agreed with this approach," the finance minister said, adding that reforms would be introduced in phases while taking into account the country's economic conditions and maintaining the continuity of the reform programme.

An NBR senior official, who attended the meeting and spoke to The Business Standard on condition of anonymity, said, "The representatives wanted to know how the revenue target for the new fiscal year would be achieved and what plans have been put in place to meet that goal.

"They also wanted to know what changes had been made in the latest budget. We briefed them on those changes."

He further said, "The mission also sought detailed explanations about the 0.20% tax imposed under the Finance Bill on the value of goods purchased by retailers, which will be collected at the dealer level."

NBR officials also told the IMF that a newly elected political government could not immediately withdraw all expenditure-related measures or tax incentives.

The official said, "The delegation were also informed that tax exemptions granted to various sectors are subject to sunset clauses. These cannot be withdrawn before their expiry, and a political government cannot simply abolish all exemptions whenever it wishes."

IMF 'satisfied' with revenue collection progress

According to the finance ministry, the IMF delegation expressed satisfaction with the growth in revenue collection during the first four months since the BNP-led government assumed office.

"The IMF delegation expressed satisfaction with the visible progress made during the current government's first four months in financial sector reforms, the development of the stock and capital markets, and revenue collection," Finance Minister Amir Khosru said.

The ministry said the IMF described the rise in tax collection over the four-month period as a significant achievement. It also held positive discussions with the government on proposals to further increase Bangladesh's tax-to-GDP ratio while maintaining the current momentum in revenue collection.

Khosru reiterated that reforms would be implemented gradually, based on priorities and in line with the country's overall economic conditions, adding that the IMF had endorsed this phased approach.

He said the IMF had also shown respect for the responsibilities and public welfare obligations of an elected government, adding that economic decisions would continue to be made with the public's interests in mind.

On subsidies, Khosru said no detailed discussions had yet been held on specific conditions or measures. The talks focused primarily on establishing the framework for a new IMF programme, while detailed issues would be discussed at a later stage.

He said the discussions were part of an ongoing process, with the next round of talks expected during the World Bank's annual meetings in September or October.

The finance minister added that the IMF was satisfied with the current government's reform-oriented performance and that a new programme would be finalised on that basis.

The Export Promotion Bureau (EPB) has proposed a total export target of $66 billion for the 2026-27 fiscal year, comprising $57 billion from merchandise exports and $9 billion from services sector.
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The EPB has submitted the draft proposal to the commerce ministry, requesting prompt review and approval of the targets.

The proposed benchmarks were finalised during a stakeholder consultation, chaired by EPB Vice Chairman and CEO Mohammad Hasan Arif.

Representatives from government ministries and agencies, and export-oriented trade organisations, including BGMEA, BKMEA, BAPA, the Metropolitan Chamber of Commerce and Industry (MCCI), and the Bangladesh Frozen Foods Exporters Association attended the meeting held at the end of last month.

During the consultations, officials and trade leaders evaluated the global economic outlook, domestic macroeconomic indicators, supply chain readiness, and market diversification strategies before recommending the export target, according to official documents.

According to the EPB, while the export sector has shown resilience, it continues to face persistent global headwinds. The economic ripple effects of the Russia-Ukraine war, escalating Middle East tensions involving Israel and Iran, soaring inflation, and the high cost of imported raw materials have squeezed exporters' profit margins.

The bureau also raised concerns that the country's graduation from Least Developed Country (LDC) status will gradually reduce access to preferential trade benefits.

When contacted, Commerce Secretary Md Ataur Rahman Khan said, "We have already held a meeting on the export target, which will be announced soon after finalising it for the current fiscal year. The EPB is currently working on the issue."

At the meeting, business leaders urged the government to introduce targeted policy support to help exporters meet the ambitious target.

They called for lower logistics costs, faster implementation of automated customs and trade facilitation systems such as the National Single Window, rationalisation of import duties on industrial raw materials, particularly for the furniture, plastics and leather sectors, and timely disbursement of cash incentives.

Furthermore, exporters stressed the need to accelerate negotiations on bilateral and regional trade agreements, including Free Trade Agreements (FTAs), Comprehensive Economic Partnership Agreements (CEPAs) and Economic Partnership Agreements (EPAs), with major markets such as the European Union, Japan and South Korea to safeguard market access post-LDC graduation.

The Ready-Made Garment (RMG) sector, which faced a slight negative growth curve recently due to weakened consumer purchasing power in Western markets, is expected to remain the primary engine of the country's export earnings.

According to official documents, the EPB has proposed an export target of $45.8 billion for the sector in FY27, including $24.11 billion from knitwear and $21.69 billion from woven garments.

The EPB has also set ambitious goals for other export-oriented manufacturing sectors.

Among other sectors, leather and leather goods have been assigned a target of $1.44 billion, including $810 million from leather footwear.

Agricultural products are expected to generate more than $1.17 billion, including $230 million from tobacco and $170 million from fruits.

Jute and jute goods exports have been targeted at $1.017 billion, with jute yarn and twine projected to contribute $620 million.

Home textiles are expected to earn $1.065 billion, engineering products $803.8 million, and pharmaceutical exports $290 million.

The EPB has set a $9 billion target for service exports in FY27.

Transportation services are expected to generate $1.65 billion, followed by other business services at $1.54 billion.

Computer and IT services have been assigned a target of $855 million, including $750 million from data processing and hosting services, while telecommunications services are projected to earn $935.82 million.

Officials said achieving the overall export target would depend on stronger performance across both the manufacturing and services sectors amid an increasingly challenging global trade environment.

Bangladesh's strategic pivot toward non-traditional markets has hit a major milestone as its year-on-year exports to Latin American nations are increasing significantly.

Rising imports by Brazil and Chile have helped Bangladesh make a strong foothold in the South American market, analysts say.

Merchandise shipments to Latin America, especially ready-made garment (RMG), saw a 29.15 per cent growth over the last four fiscal years, pushing Bangladesh one step ahead in diversifying its export market, according to the Export Promotion Bureau's (EPB) official data.

The robust growth underscores the expanding footprint of local manufacturers in the South American continent.

This surge comes at a critical juncture as the nation actively pursues aggressive market diversification strategies to mitigate geopolitical vulnerabilities in its conventional Western strongholds.

According to the EPB data, Bangladesh exported goods worth $367.82 million to the South American market in the fiscal year 2022-23, which grew to $475.04 million in FY26.

In FY24, Latin American countries imported Bangladeshi products worth $362.02 million, which rose to $442.06 million in the following year.

Some Bangladeshi garment makers say if MERCOSUR - the Southern common market trade bloc comprising Brazil, Argentina, Uruguay, and Paraguay - eliminates tariff barriers, exports would boost significantly.

Bangladeshi products face high tariffs of up to 35 per cent when entering MERCOSUR.

This rate is part of the bloc's Common External Tariff (CET).

The high duty applies to non-member countries and makes Bangladeshi goods like clothing more expensive to sell in South America.

Local businessmen say men and women suits, sweaters, shirts, T-shirts, jute and jute goods, and leather and leather goods are the major export items from Bangladesh to South America.

According to the EPB, Brazil is the leading importer of Bangladeshi products.

Bangladesh exported goods worth $109.2 million to Brazil in FY23, which increased to $147.58 million in FY2024.

In FY25, shipments maintained momentum and reached $187.34 million, which jumped further to $ 214.69 million in FY26.

Beyond Brazil, Bangladeshi goods are seeing a notable momentum in a trio of South American economies.

Benefiting from a long-standing zero-duty benefit arrangement enacted for developing nations, Chile has evolved into a vital partner.

In FY26, Bangladesh exported goods worth $169.64 million to Chile.

Major shipments to the market included knitted T-shirts, formal men suits, and women's apparel.

Steadily moving up the ranks, Uruguay has absorbed escalating volumes of knitwear, sweaters, and specialised woven items as it imported $39.28 million worth of goods in FY26.

This absorption helped solidify Bangladesh's position in the Southern Cone of the continent.

While the overall trade volume remained relatively modest at $34.93 million in FY26, Argentina recorded a dramatic, multi-fold percentage increase in its imports from Bangladesh over the mid-term. Demand was spearheaded by knit sweaters, activewear, raw jute products, etc.

Analysts say the 29.15 per cent upward trajectory in Latin American shipments indicates that local exporters are successfully penetrating new geographical frontiers.

Trade experts highlight that navigating South America's high tariff barriers remains an operational hurdle.

To lock in these hard-won gains, trade groups like the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) are advising the government to initiate formal Free Trade Agreement (FTA) negotiations with MERCOSUR.

Securing preferential access is deemed essential for preserving cost competitiveness following Bangladesh's official graduation from the Least Developed Country (LDC) status.

The Bangladesh Securities and Exchange Commission (BSEC) has launched an ambitious reform drive to modernise the country's capital market by reducing operational barriers, introducing technology-based solutions and strengthening investor protection.

The reform roadmap includes faster share settlement, digital order placement, artificial intelligence-based market surveillance, revised margin lending rules and greater flexibility for stock exchanges in setting market protection measures.

At the centre of the reform agenda is the plan to reduce the securities settlement cycle from the current T+2 to T+1, with a long-term target of introducing same-day settlement, or T+0.

The BSEC and stock exchanges are working with Bangladesh Bank to implement the transition. Dhaka Stock Exchange (DSE) Managing Director Nuzhat Anwar told The Business Standard that a Bangladesh Bank team recently visited the bourse to review its clearing and settlement infrastructure.

She said the DSE has requested the central bank to extend the Real-Time Gross Settlement (RTGS) window by two hours from 4pm to facilitate faster transactions. Once necessary regulatory changes are approved, the move could significantly increase trading efficiency.

To improve market liquidity, the regulator is also preparing to introduce intraday trading, commonly known as script netting. Initially, the facility will be available for fundamentally strong companies, including those listed under the DSE 30 index.

The system will allow investors to buy and sell the same security within a single trading session, giving active investors more flexibility and potentially increasing market turnover.

The BSEC is also reviewing margin lending regulations. BSEC Chairman Masud Khan said the current rules are overly restrictive, particularly the provision that stops margin facilities when a stock's price-earnings (P/E) ratio crosses 30.

Under the proposed framework, the regulator will set broad guidelines while allowing brokerage firms to develop their own risk management systems and determine lending decisions based on their internal assessments.

A major reform initiative is the introduction of digital share order placement to reduce risks associated with the existing paper-based system. The BSEC chairman said physical signatures on buy and sell orders have created opportunities for fraud and misuse.

Under the proposed digital system, investors will be able to place orders directly through mobile applications and secure online platforms. Each transaction will be followed by instant SMS and email confirmations, while the Central Depository Bangladesh Limited (CDBL) will provide daily automated transaction summaries.

The regulator has also directed the DSE to upgrade its surveillance system within six months and transition to a fully artificial intelligence-based monitoring system within one year.

Unlike the existing system, where investigations into suspicious transactions can take months, the AI-powered system will be designed to identify market irregularities instantly and allow quicker regulatory action against manipulation.

The BSEC has also restored the authority of stock exchanges to independently determine trading control measures, including circuit breakers and market protection limits.

Meanwhile, the DSE Brokers Association (DBA) has proposed further reforms, including calculating broker margin requirements on a net basis instead of the current gross basis. Brokers argue that the existing system forces them to maintain excessive margins and borrow additional funds from banks.

The BSEC has indicated that it is considering stakeholder demands as part of its broader effort to remove unnecessary regulatory hurdles and improve market efficiency.

"The stock market is a science, and we are restoring the science of valuation to protect the hard-earned capital of every investor," BSEC Chairman Masud Khan said.

The government's outstanding debt has reached Tk22.06 lakh crore, including Tk9.59 lakh crore in external debt, Finance Minister Amir Khosru Mahmud Chowdhury told parliament today (12 July).

Responding to a question from MP Golam Rasul during the question-and-answer session, the finance minister said the government is pursuing policies to reduce reliance on borrowing by increasing revenue collection and transitioning from a debt-driven economy to an investment-led one.

He said the government is placing greater emphasis on boosting tax and non-tax revenues to cope with the growing burden of domestic and external debt.

"For the current fiscal year, the revenue-to-GDP ratio has been set at around 10.4%, with the primary objective of increasing revenue collection and reducing dependence on borrowing," he said.

The finance minister also said the government has adopted a Medium-Term Debt Management Strategy (MTDS) to lower borrowing costs, mitigate risks and strengthen debt management.

He said the strategy would enable more efficient management of the country's overall debt portfolio.

Referring to the policies announced in the budget for the current fiscal year, Amir Khosru said the government has launched initiatives to transform Bangladesh from a debt-dependent economy into an investment-driven one.

He said higher returns from public investment would help increase government revenue and reduce the need for borrowing to finance budget deficits.

The minister added that the government is also diversifying financing instruments to reduce interest costs, including expanding the use of sukuk and asset securitisation, alongside other alternative financing mechanisms.

While Bangladesh will continue to borrow from bilateral and multilateral development partners, the government will prioritise long-term concessional loans carrying lower interest rates and favourable repayment terms, he said.

In response to another question from MP Shahjahan Chowdhury, the finance minister said the government repaid external loans worth $4.65 billion during the recently concluded FY2025-26.

Of the total repayment, $3 billion was principal, while $1.65 billion was paid as interest, he added.

The minister said the government's election manifesto pledged to transform Bangladesh from a debt-driven economy into an investment-led one, and efforts have been underway since the government assumed office to keep external debt at a sustainable level.

He also said all externally financed projects and related loan proposals are being subjected to rigorous scrutiny before approval to ensure that unnecessary projects are not implemented using foreign borrowing.

The government is also giving priority to ensuring that externally financed projects align with its broader objectives of rebuilding and restoring the economy and implementing its election commitments, the finance minister added.

Sonali Aansh Industries PLC has been elevated to the "A" category from the junk "Z" category by the Dhaka Stock Exchange after completing the distribution of a 15% cash dividend to shareholders for the financial year ended 30 June 2025.

According to a DSE notification issued today (12 July), the company successfully disbursed the declared dividend, prompting the bourse to restore its status to the regular trading category with effect from the same day.

The company's share price rose 3.45% to Tk224.7 following the announcement.

Under the DSE's listing regulations, companies are placed in the "A" category if they comply with key regulatory requirements, including holding annual general meetings (AGMs) on time and declaring and distributing the required dividends.

On the other hand, companies are classified under the "Z" category for failing to meet one or more listing requirements, such as not holding AGMs, failing to declare or distribute dividends, remaining non-operational for a prolonged period, or violating other regulatory obligations.

Market analysts said Sonali Aansh's return to the "A" category marks a positive step in terms of regulatory compliance. The company will regain the benefits associated with a regular trading category, and subject to meeting other eligibility criteria, its shares may once again qualify for margin loan facilities. The reclassification is also expected to improve investor confidence and enhance the stock's trading liquidity.

However, analysts cautioned that investment decisions should not be based solely on a company's trading category. Investors should also consider its earnings, cash flows, financial strength and long-term business prospects.

According to the company's latest unaudited financial statements, earnings per share (EPS) stood at Tk1.97 for the January-March quarter of 2026, compared with Tk1.81 in the same period a year earlier.

For the first nine months of fiscal 2025-26, EPS rose to Tk5.62 from Tk5.23 in the corresponding period of the previous fiscal year.

Meanwhile, net asset value per share jumped to Tk234.34 as of 31 March 2026 from Tk32.81 as of 30 June 2025. The company attributed the sharp increase to the revaluation of its assets carried out up to 31 December 2025.

A company's trading category is considered an important indicator for investors as it reflects its level of compliance with regulatory requirements, corporate governance standards and shareholder obligations. The DSE regularly reviews the compliance status of listed companies and revises their trading categories accordingly.

Analysts said regulators have recently tightened oversight of listed companies, particularly regarding dividend distribution, corporate disclosures and investor protection. As a result, companies that fulfil their regulatory obligations on time are increasingly being restored to higher trading categories.

Bangladesh Bank has increased the cash incentive for exports of domestically sourced textile products to 5% from 1.5% for FY2026-27, aiming to boost local value addition and strengthen export competitiveness, according to a circular issued today (12 July).

The enhanced support will apply to export-oriented domestic textile products receiving alternative cash assistance instead of bonded warehouse and duty drawback facilities.

The move is expected to particularly benefit the country's readymade garment sector by encouraging greater use of locally produced yarn and fabrics.

To qualify for the incentive, exporters must meet specific conditions. Members of the Bangladesh Garment Manufacturers and Exporters Association, Bangladesh Knitwear Manufacturers and Exporters Association, and other relevant trade bodies will be required to submit documentary proof that their raw materials, including yarn and fabrics, were sourced from domestic suppliers.

Industry stakeholders said the higher incentive would encourage the use of local inputs, increase domestic value addition and enhance the competitiveness of Bangladesh's export sector in global markets.

The Bangladesh Securities and Exchange Commission (BSEC) on Sunday issued a clarification, rejecting media reports that claimed the regulator had decided to immediately delist companies that have remained closed or inactive.

In a press release, the Commission described the reports as completely misleading and baseless, saying they did not accurately reflect the remarks made by BSEC Chairman Masud Khan during an exchange of views with the Capital Market Journalists' Forum (CMJF) on July 9.

The BSEC said the Chairman had referred to international practices, where companies that remain closed or inactive for prolonged periods are generally not allowed to stay listed on stock exchanges.

He also noted that Bangladesh is an exception, with several inactive companies continuing to remain listed, exposing particularly small investors to financial risks, reports BSS.

The Commission clarified that no decision has been taken to delist such companies.

According to the BSEC, the Dhaka Stock Exchange (DSE), as the frontline regulator, is currently reviewing the status of inactive listed firms to develop a logical and transparent process for addressing the issue.

As part of the review, a proposal has been discussed to allow inactive companies a grace period, possibly one year, to resume operations.

If they fail to do so within the stipulated period, any further action will be taken in accordance with the existing laws, rules and listing regulations, it said.

The regulator also urged investors to exercise caution while making investment decisions, particularly regarding companies that have remained inactive for a prolonged period, face going concern risks, fail to hold mandatory annual general meetings (AGMs), or do not pay dividends to shareholders.

The clarification was issued through an official press release signed by the BSEC spokesperson.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) will launch a series of roadshows in major trading hubs, including Hong Kong, Singapore and Dubai, to attract global apparel buyers that currently do little or no business with Bangladesh.

The initiative will begin with a roadshow in Hong Kong, while HSBC will support the programme by helping identify and engage potential buyers and encouraging them to participate in the events. The announcement was made at a programme held at the BGMEA headquarters in Dhaka yesterday (12 July).

To formalise the collaboration, BGMEA and HSBC signed a MoU. The agreement was signed by Mahmud Hasan Khan Babu, president of BGMEA, and Md Mahbub ur Rahman, CEO of HSBC Bangladesh, on behalf of their respective organisations.
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Speaking at the event, Shah Rayeed Chowdhury, a BGMEA director, said the initiative would begin in Hong Kong before expanding to other global trading centres. "We will start with Hong Kong, but later we will also go to places such as Singapore and Dubai," he said.

After the event, he told TBS that BGMEA's current focus was largely on major existing buyers, but the organisation now wanted to showcase Bangladesh's capabilities to brands that either do not source from the country or have only a limited presence.

"We want to let those buyers know how Bangladesh's capabilities have evolved. Our main objective is to strengthen Bangladesh's brand image," he said.

Explaining why Hong Kong had been chosen as the first destination, Chowdhury said it was an important global trading hub where many international brands have a presence.

"We will target those brands there. Singapore and Dubai are also global trading hubs, so we will organise similar programmes there in the future and engage with buyers. There will also be matchmaking sessions," he said.

He added that the events would be jointly organised by BGMEA and HSBC.

Explaining HSBC's role, Chowdhury said many global brands already work with the bank because of its international reputation.

"Global brands work with trusted and reliable institutions like HSBC. Partnering with them will also strengthen our credibility," he said.

Speaking at the event, HSBC CEO Mahbub said understanding buyers' changing priorities would be key to the initiative.

"We need to research what customers want and where they are heading. We want to identify three to five priorities over the next five years. We will set our priorities based on customers' needs," he said.

BGMEA President Babu called on HSBC to help attract brands that have yet to source products from Bangladesh. He said one international brand that previously did not purchase from Bangladesh had now decided to start sourcing from the country.

He also said BGMEA planned to expand business with Japan and would establish a dedicated help desk at the association to support that effort.

Agreeing with the HSBC chief executive, Babu said Bangladesh had many world-class garment factories, but negative images often affected buyers' perceptions.

"There are many excellent factories in Bangladesh. But when images of the polluted waters of the Turag River are shown abroad, many premium brands become reluctant to place orders in Bangladesh," he said.

Oil prices settled lower on Friday after the latest round of US-Iran fighting as traders grew hopeful that shipping would eventually resume in the Strait of Hormuz, but prices finished with sharp weekly gains.

Brent futures settled at $76.01 a barrel, down 29 cents, or 0.38 percent. US West Texas Intermediate crude finished at $71.41 a barrel down 67 cents or 0.93 percent.For the week, Brent gained about 5.50 percent and WTI nearly 4 percent.“This market is ready, willing and able to jump on good news or at least no bad news,” said John Kilduff, partner with Again Capital. “And it looks like the escalation won’t get any worse.”

With the end of tit-for-tat air strikes and the promise of renewed talks between the US and Iran next week, traders looked forward to the Strait of Hormuz reopening.Brent futures settled at $76.01 a barrel, down 29 cents, or 0.38 percent“Amazingly though, oil prices are coming down after a spike near $76 a barrel, even as the Strait of Hormuz was effectively shut down once again,” said Phil Flynn, senior analyst with Price Futures Group.

Flynn added this was mainly on confidence that the United States’ military strength will not allow the Strait of Hormuz to be shut down for an extended period of time.

On Thursday, Iranian armed forces launched attacks on US military infrastructure in Gulf states after US strikes on Iran’s southern coastal and eastern provinces.

Prices pared gains after a Reuters report said Qatari negotiators were in Iran to meet Iranian officials in an effort to de-escalate tensions and create conditions for broader negotiations to continue.

Separately, Iranian media reported multiple explosions across southern Iran. The area included Bushehr, where one of the country’s nuclear plants is located.

The recent escalation in hostilities between the US and Iran could upend the International Energy Agency’s forecast of a significant oil market surplus next year, the agency said.

The developments have delayed a full reopening of the Strait of Hormuz, which carried about 20 percent of daily global oil and gas supplies before the start of the war on February 28.

The lack of any new US strikes on Iran overnight is probably weighing on oil prices, though a drop in flows through the Strait of Hormuz is limiting the downside, said UBS analyst Giovanni Staunovo.

Liquefied natural gas tankers have passed through the strait in recent days, ship-tracking data showed, but overall daily traffic has slowed.

US President Donald Trump said this week that he did not think the war would restart and that “anything that happens is going to be over very quickly”.

“Despite the US ramping up attacks on military sites in Iran, the market drew some reassurance from the Trump administration’s decision to avoid targeting Iranian energy infrastructure,” said ANZ commodity strategist Daniel Hynes.

Elsewhere, the IEA downgraded its projections on Russian oil production because of Ukrainian attacks on the country’s energy infrastructure, the agency said on Friday.

Russian gasoline output fell to a level equivalent to only around 65 percent of the seasonal average consumption after Ukrainian drone attacks led to stoppages at large oil refineries, according to two industry sources.

For the local bike market, the recently concluded fiscal year was dull, as retail sales were almost unchanged from the previous year, due mainly to weak economic conditions, sluggish farming activity and fuel price shocks.

Even in the subdued market, Japanese brands posted double-digit sales growth, while their Indian rivals struggled.

Sellers said the demand for Japanese motorcycles in the entry and mid-segment was strong, driven by fuel efficiency, low running costs, competitive pricing and practical features.

In contrast, Indian brands said the absence of new product launches in FY26 eventually hurt their sales.

Industry data showed that 422,655 motorcycles were sold in FY26, almost unchanged from 422,593 units in the previous fiscal year. Companies blamed weak demand for the stagnant market.

“The industry should have reached annual sales of 700,000 to 800,000 motorcycles by now, but remained below 500,000 units, discouraging deeper localisation and investment in domestic component manufacturing,” said Subrata Ranjan Das, deputy managing director of ACI Motors.

ACI Motors is the sole distributor of Japanese brand Yamaha in Bangladesh.

He said the market had failed to realise its potential because weak economic conditions, sluggish agricultural activity in the northern region and policy uncertainty curbed demand.

Yamaha retained its position as the country’s best-selling motorcycle brand after retail sales rose 19 percent year-on-year to 95,531 units, giving it a 23 percent market share.

Another Japanese brand Suzuki ranked second with sales of 90,657 units, up 10 percent, while Honda recorded the fastest growth among these three Japanese brands. Its sales jumped 18 percent to 83,122 units, lifting its market share to 20 percent.

Together, the three brands accounted for nearly two-thirds of all motorcycles sold in Bangladesh during the last fiscal year.

Several competitors, particularly Indian manufacturers, struggled to maintain their position.

Hero’s sales fell 6 percent to 73,762 units, although it remained the fourth-largest player with a 17 percent market share. Bajaj posted a steeper decline of 22 percent to 63,256 units, while Royal Enfield’s sales slipped 9 percent to 7,568 units.

TVS recorded the sharpest decline among the major manufacturers, with sales plunging 67 percent to 6,370 units from 19,167 a year earlier.

Sales by smaller brands grouped under the “Others” category edged up 3 percent to 2,389 units.

Industry executives said weak economic conditions, policy uncertainty and subdued consumer spending continued to weigh on the market despite strong performances by a handful of brands.

“At the current volume, it is difficult to justify deep manufacturing or build a competitive vendor base. We need a market of at least 10 lakh units,” Subrata Ranjan Das of ACI said.

He noted that Pakistan’s motorcycle market stands at around 25 lakh units despite having a population only slightly larger than Bangladesh’s.

Das also said Bangladesh remains one of the least-penetrated motorcycle markets in South Asia, with roughly one motorcycle for every 80 people, compared with about one for every two people in India.

He attributed Yamaha’s continued market leadership to the company’s customer-centric approach, strong after-sales service, reliable braking performance, fuel efficiency and high resale value.

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He also credited regular customer engagement and follow-up services with helping build long-term trust and customer loyalty.

TVS Auto Bangladesh Chief Executive Officer Biplob Kumar Roy said the absence of new product launches, coupled with weak economic conditions, had hurt the company’s performance.

“We could not introduce any new products, so our business did not perform as expected,” he said.

He added that the broader economic slowdown and prolonged uncertainty had further dampened consumer demand.

“The industry could not grow the way it was expected to,” Biplob said, adding that the sector still has significant growth potential, but subdued consumer sentiment has prevented it from reaching that trajectory.

Honda, however, bucked the broader market trend.

Shah Muhammad Ashequr Rahman, chief marketing officer at Bangladesh Honda Private Limited (BHL), attributed the company’s sales growth to strong demand for its entry and mid-segment motorcycles, particularly the 110cc and 125cc models.

Popular commuter models such as the Dream 110, Shine 100, Shine 100 DX and SP 125 have continued to attract buyers because of their fuel efficiency, low running costs, competitive pricing and practical features, said Ashequr.

“We are resolving customer issues much faster than before. Our motorcycles offer advanced technology at competitive prices with low running costs,” he said.

He added that Honda’s strengthened brand image had also contributed to the company’s improved sales performance.

Finance Minister Amir Khosru Mahmud Chowdhury today (Sunday) said that any future partnership with the International Monetary Fund (IMF) would be pursued only if it safeguards public interest and protects the country's economic security.

"The government would not join any IMF programme that goes against the interests of the people," he said while speaking to reporters at the Secretariat, BSS reports citing a press release.

Referring to the previous IMF programme undertaken by the former government, the minister said that it included a number of conditions that the present elected government considered inconsistent with its policy priorities and, therefore, decided to withdraw from that arrangement.

He said the government's objective is not merely to secure external financing but to ensure economic stability while protecting the interests of the people.

Any future engagement with the IMF, he added, would be based on terms that fully safeguard Bangladesh's national interests.

The minister also said the government is working to modernise the country's visa policy as part of its broader vision of building a modern Bangladesh.

He said the existing visa regime would be simplified to facilitate greater tourist arrivals, attract foreign investment and strengthen international confidence in Bangladesh's economy.

During the briefing, Amir Khosru also expressed deep sorrow at the death of Barrister Jamiruddin Sircar, former Speaker of the Jatiya Sangsad and former Acting President of Bangladesh.

He described Jamiruddin Sircar as a capable and principled statesman, saying his contributions to the country's politics would be remembered with respect and that his death is an irreparable loss to the nation.

The government has intensified discussions with the BRICS-led New Development Bank (NDB), the World Bank, the Asian Development Bank (ADB) and other multilateral development partners to secure budget support and concessional financing, Finance Minister Amir Khosru Mahmud Chowdhury told parliament yesterday (12 July).

Responding to a question from MP Md Fazle Huda of Naogaon-3 during the question-and-answer session, the finance minister said the initiative is aimed at easing pressure on the country's foreign exchange reserves while ensuring adequate financing for priority development projects.

He said the government is exploring alternative sources of funding to maintain the continuity of development activities without placing additional strain on foreign exchange reserves.
"To this end, discussions are underway with the BRICS-led New Development Bank and other multilateral lending institutions on the possibility of obtaining budget support and loans on more flexible terms," the minister said.Khosru added that successful negotiations with development partners would strengthen the government's financial capacity and make it easier to secure funding for the implementation of priority development projects.

Bangladesh’s inward remittance recorded a robust double-digit growth at the start of the new fiscal year 2026–27, with US$1.15 billion in the first 11 days of July, according to the latest data released by Bangladesh Bank.

This marks a significant 11.6 percent monthly growth compared to the corresponding period of the previous fiscal year, when the country received $1.03 billion between July 1 and July 11, 2025.

The central bank’s detailed breakdown indicates that the flow of foreign currency picked up pace significantly toward the end of the first week of July. In just a three-day window between July 9 and July 11, 2026, Bangladeshi expatriates sent$191 million through banking channels.

Financial analysts and central bank officials attribute this strong upward trajectory to the recent stabilization of the interbank foreign exchange market and competitive exchange rates offered by commercial banks. The steady use of banking channels instead of informal networks (like Hundi) has significantly buoyed the state’s incoming foreign currency receipts.

The sustained surge in remittance inflows brings a much-needed sigh of relief for macroeconomic policymakers.

This steady influx is expected to provide a crucial buffer to Bangladesh’s gross foreign exchange reserves and help ease the ongoing balance of payment pressures during the first quarter of the current fiscal year.

The Bangladesh Bank will issue non-performing loan (NPL) resolution guidelines by December as part of its banking sector reform commitments under the proposed new loan programme with the International Monetary Fund (IMF), according to central bank officials.

The commitment was conveyed to an IMF delegation during a meeting at Bangladesh Bank yesterday (12 July), senior officials familiar with the discussions told The Business Standard. The meeting was attended by the central bank governor and deputy governors.

A senior official who attended the meeting said the central bank is preparing the guidelines primarily for banks with non-performing loan ratios above 10%. "If the guidelines are issued by December this year, they are expected to come into effect from 2027.

The official said the guidelines form part of Bangladesh's commitments under negotiations for a new IMF loan programme and are aimed at reducing bad loans in the banking sector. As of March this year, the country's overall NPL ratio stood at more than 32%.

The IMF delegation, led by Bangladesh Mission Chief Ivo Krznar, arrived in Dhaka yesterday for a five-day visit to assess the feasibility of the proposed $4.5 billion loan programme.

What were discussed at meeting

During yesterday's meeting, IMF officials also sought an update on the repeal of the controversial Section 18(ka) of the Bank Resolution Act. Bangladesh Bank informed the delegation that the government would remove the provision soon, according to officials.

The provision has drawn criticism because it could allow former owners of resolved or merged banks to regain ownership or control. Concerns have been particularly acute over banks previously controlled by the S Alam Group, especially several Islamic banks.

The IMF delegation also sought updates on Bangladesh's overall macroeconomic situation, including inflation, the exchange rate and the central bank's monetary policy stance.

According to officials, the IMF questioned why Bangladesh Bank's US dollar purchases through auctions were consistently clustered within a narrow price range.

The central bank explained that the interbank exchange rate serves as the benchmark, with recent dollar purchases made between Tk122.60 and Tk122.75, while the prevailing interbank rate currently stands at Tk122.85.

The official said the IMF sought an explanation for the central bank's recent decision to lower the interest rate on trade finance. The IMF also asked whether banks would be able to access trade finance at SOFR plus 3% under the revised pricing framework.

Bangladesh Bank officials replied that the decision had been taken after consultations with commercial banks and was intended to stimulate private sector credit growth.

Bangladesh Bank recently issued a circular reducing the interest rate ceiling on trade finance to SOFR plus 3%. Following the announcement, the Association of Bankers, Bangladesh urged the central bank to reconsider the decision in a letter.

The IMF delegation also raised concerns over restrictions on the foreign exchange forward market. Officials noted that during the Iran conflict, importers sought to hedge exchange rate risks by entering into forward contracts while opening letters of credit (LCs).

At the time, Bangladesh Bank verbally instructed banks not to facilitate forward bookings, fearing they could fuel demand for dollars and push up the exchange rate.

The IMF, however, stressed that Bangladesh should develop a more active forward foreign exchange market, arguing that forward contracts are an essential risk management tool that allows businesses to hedge against future currency volatility.

The delegation advised the central bank to facilitate, rather than discourage, the use of forward bookings in the dollar market.

Bangladesh Bank officials said the IMF would review the country's current economic conditions before formally considering the request for a new lending programme.

Bangladesh first secured a $4.7 billion IMF programme in 2023 to help address a foreign exchange reserve crisis. The programme later expanded to $5.5 billion after additional financing was approved under the Resilience and Sustainability Facility (RSF).

After disbursing $3.59 billion in five instalments, the IMF suspended further disbursements last December after Bangladesh failed to meet several programme conditions.

Following the change in government, the BNP administration cancelled the previous programme and applied for a new IMF loan package under revised reform commitments.

Meanwhile, Finance Minister Amir Khosru Mahmud Chowdhury said Bangladesh will pursue the new IMF loan that safeguards public interest and the country's economic security.

The government will not participate in any loan programme that undermines the interests of the people, he said while speaking to journalists at the Secretariat yesterday.

Bangladesh's stock market extended its rally today (12 July), the first trading day of the week, as investor optimism over regulatory reforms and the government's commitment to developing the capital market remained strong.

Driven by robust buying pressure, the benchmark DSEX index of the Dhaka Stock Exchange (DSE) gained 45 points to close at 5,849. Daily turnover also crossed the Tk1,600 crore mark for the first time in nearly two years, reaching Tk1,669 crore.

Turnover increased by around 16.9% compared with the previous trading session. Market participants attributed the rise to growing demand for fundamentally strong stocks trading at attractive valuations, alongside expectations of market reforms.

Buying interest was particularly strong in banking and insurance stocks from the opening bell. The blue-chip DS30 index rose 22 points to 2,200, while the DSES, which tracks Shariah-compliant companies, also ended the day in positive territory.

Of the 392 listed companies and mutual funds traded on the DSE, 199 advanced, 156 declined, and 37 remained unchanged.

The Chittagong Stock Exchange (CSE) also maintained its positive momentum. The CSCX index gained 66.8 points, while the broader CASPI index advanced 77.4 points. Strong buying in banks, insurers and other large-cap stocks helped the market close higher.

In its daily market review, brokerage firm EBL Securities said investor confidence, supported by regulatory and political commitments to capital market reforms, generated broad-based buying across sectors.

Although some profit-taking emerged during the session, fresh buying quickly absorbed the selling pressure, allowing the market to retain most of its gains and extend its upward trend, the brokerage said.

According to EBL Securities, the banking sector accounted for the largest share of turnover at 12.8%, followed by textiles (12.6%) and general insurance (12.4%).

In terms of price movement, the general insurance sector was the most active, contributing 16.9% of total traded value, followed by textiles (12.2%) and engineering (8.7%).

The mutual fund sector posted the biggest gain, rising 3.7%. The life insurance index climbed 3.2%, while the jute sector advanced 2.9%.

On the downside, the information technology (IT) sector recorded the steepest decline, falling 1.8%. The miscellaneous sector lost 0.5%, while the travel and leisure sector slipped 0.3%.

Lovello Ice Cream topped the turnover chart, followed by Bangladesh Shipping Corporation, Malek Spinning, Eastern Housing, and ITC.

Among the top gainers, Union Insurance rose 9.82%, followed by Meghna Insurance (9.78%), Sandhani Insurance (9.57%), EBL First Mutual Fund (9.52%), and MBL First Mutual Fund (9.52%).

On the losing side, Apollo Ispat Complex fell 9.37%, matching the decline of Zaheentex Industries. Intech lost 9.31%, Shurwid Industries dropped 8.95%, and AFC Agro Biotech declined 8.86%.

During the trading session, rumours that several long-suspended listed companies might be delisted created temporary volatility in the market.

The Bangladesh Securities and Exchange Commission (BSEC) later dismissed the reports as completely baseless and misleading in a press release.

The regulator clarified it had not taken any decision to immediately delist companies that have remained out of production or commercial operations for a prolonged period.

However, the commission urged investors to exercise extreme caution when investing in companies that have remained inactive for a long time and whose going concern status is under serious threat. It also advised investors not to make investment decisions based on rumours or incomplete information.

The Dhaka Stock Exchange has finalised its semi-annual rebalancing of the DS30 index, the premier "elite club" of investable stocks on the country's main bourse.

In the latest review, steel giant BSRM Limited, pharmaceutical leader The Acme Laboratories Limited, and the state-owned Power Grid Company of Bangladesh Limited have secured their positions among the top 30 stocks. These new entrants will replace Kohinoor Chemicals, Unique Hotel and Resorts, and the multinational industrial gas supplier Linde Bangladesh Limited.

The reshuffle, which is scheduled to take effect from 19 July, is based on a rigorous index methodology developed in 2013 in collaboration with S&P Dow Jones Indices, said the DSE in a press release today (12 July).

The rebalancing is conducted twice a year to ensure that the index accurately reflects the most liquid and fundamentally sound companies available to investors, according to the DSE.

Market insiders noted that the DS30 serves as a critical benchmark for both domestic and foreign institutional investors, helping them identify the most reliable "investable" scrips in an often-volatile market.

To qualify for the DS30 index, a company must meet several stringent criteria. These include maintaining a minimum free-float market capitalisation of Tk50 crore and an average daily turnover of at least Tk50 lakh over the preceding three months. For companies already residing within the index, the turnover requirement is slightly relaxed to Tk30 lakh to maintain stability.

Furthermore, any candidate for the blue-chip index must have posted a positive net profit over the latest 12-month period. To ensure sectoral diversity, the DSE also limits the number of companies from a single sector to a maximum of five.

How non-compliant firms placed in DS30

The presence of certain non-compliant firms in the DS30 list has raised concerns among market participants regarding the integrity of the index.

For instance, Fine Foods Limited remains a member of the DS30 despite its sponsors and directors holding only 13.92% of the company's shares – far below the regulatory mandate of 30% for all listed firms.

Similarly, LankaBangla Finance has retained its spot in the elite club despite a significant lack of financial transparency. The non-bank financial institution has not published any financial statements since September 2025, leaving investors in the dark regarding its performance for the full year of 2025 and the first two quarters of 2026.

A managing director of a prominent brokerage firm told TBS that while investors traditionally trust the blue-chip index, the inclusion of companies with poor track records or compliance failures can be misleading.

He pointed out that this lack of qualitative screening is a primary reason why many professional fund managers choose not to follow the DS30 index strictly when building their portfolios.

He argued that an index meant to represent the best of the market should not harbour companies that flout basic listing and transparency regulations.

Responding to these criticisms, a senior officer of the DSE, speaking on condition of anonymity, explained that the bourse is currently bound by the mathematical model provided by S&P Dow Jones.

According to him, if a company meets the market cap, turnover, and profitability numbers defined in the 2013 methodology, the system automatically includes them.

He noted that the current methodology does not provide a specific timeframe for quarterly earnings valuations, which allows a firm like LankaBangla Finance to remain in the index based on historical data.

However, he revealed that the DSE is aware of these loopholes and is considering consulting with stakeholders to modify the index rules to incorporate stricter compliance and corporate governance standards in the future.

The DS30 index, which launched with a base value of 1,000 points in 2013, remains the most-watched indicator of large-cap performance in Bangladesh.

Bangladesh's creative economy needs supportive policies, structural reforms and measurable performance benchmarks to emerge as a sustainable driver of economic growth, experts said at a discussion on Saturday.

They welcomed the government's first dedicated budget allocation for the sector but said its success would depend on effective implementation, regulatory reforms and stronger public-private collaboration.

The observations came at a webinar titled "Creative Economy: Slogan or Untapped Potential?" organised by the Power and Participation Research Centre (PPRC).

In a major policy shift, the FY2026-27 national budget has, for the first time, earmarked a Tk 8.0 billion work plan for the creative economy. The package includes Tk 3.0 billion in direct budgetary support and another Tk 5.0 billion from Bangladesh Bank's corporate social responsibility (CSR) fund.

The initiative aims to increase the sector's contribution to GDP, create nearly 500,000 jobs and build a "Created in Bangladesh" brand across industries such as film, music, publishing, digital content and design.

The discussion was moderated by PPRC Executive Chairman Hossain Zillur Rahman. Participants included filmmaker and creative entrepreneur Tanim Noor, Chorki CEO Redwan Rony, Bengal Foundation Director General Luva Nahid Choudhury, playwright and actor Bakar Bakul, UPL Managing Director Mahrukh Mohiuddin, and Classical Handmade Products (CHP) Managing Director Md. Tauhid Bin Abdus Salam.

Tanim Noor called for a dedicated tax policy for the creative economy, saying targeted incentives would help attract greater investment.

"Providing tax incentives, such as a 50 per cent tax exemption for the film industry, could significantly increase investment in Bangladeshi cinema, making the sector more attractive to both existing and new investors," he said.

Redwan Rony said the government should prioritise infrastructure development alongside reforms to taxation and licensing policies to strengthen the film industry.

He noted that Bangladeshi content produced for over-the-top (OTT) platforms is currently taxed under the general corporate tax structure, while no dedicated policy framework exists for the sector.

As a result, global streaming platforms such as Netflix and Amazon generate revenue from Bangladeshi audiences without facing the same tax obligations as domestic OTT platforms, leaving local companies at a competitive disadvantage, he said.

Luva Nahid Choudhury said Bangladesh has no shortage of creative talent, but the ecosystem needed to nurture, commercialise and scale that talent remains underdeveloped.

Summing up the discussion, Dr Hossain Zillur Rahman said Bangladesh now needs a policy ecosystem that reflects the creative economy's growing potential.

"A one-dimensional infrastructure approach will not take us forward. We need quality infrastructure backed by sustainable management models based on public-private partnerships," he said.

He also called for policy reforms covering taxation, royalty sharing, copyright protection and licensing.

"The government has expressed an interest in taking the sector forward. But to ensure sustainable results, stakeholders within the sector must also come together independently to develop a strategic roadmap for its future," he added.