Heavy to very heavy rain, flash floods, flooding and waterlogging have affected 28,610 hectares of crops across 12 districts.

Preliminary data from the Department of Agricultural Extension (DAE) showed that Aush rice, Aman seedbeds and summer vegetables were the most affected.

The DAE assessment covered 5,34,570 hectares under the listed crops in the affected districts.DAE officials said the figure was preliminary. The actual extent of the damage would become clearer after floodwater receded, while the affected area could increase if rain continued.

Md Obaidur Rahman Mondal, director of the DAE's Field Services Wing said farmland in Chattogram, Rangamati, Khagrachhari, Bandarban and eight other districts had been affected by heavy rain.

"Continuous rain and standing water have affected Aush rice, Aman seedbeds, seasonal vegetables and betel leaf farms," he said.

He added that officials were continuing to collect field-level information to determine the full extent of the damage.

District-wise data showed that 3,495 hectares were affected in Rangamati, including Aush, summer vegetables, ginger, turmeric, Aman seedbeds and orchards.

In Khagrachhari, 1,031 hectares of Aush, summer vegetables, Aman seedbeds and orchards were affected.

In Bandarban, around 945 hectares under nine crop categories were affected, including Aman seedbeds, Aush, summer vegetables, orchards in the plains and hills, jhum Aush, ginger and turmeric.

Chattogram recorded 6,591 hectares of affected Aush, 565 hectares of Aman seedbeds and 4,167 hectares of summer vegetables.

Aush, Aman seedbeds, summer vegetables and betel leaf farms were affected in Cox's Bazar.

In Naogaon, 4,340 hectares of Aush were affected. Habiganj recorded 1,259 hectares of affected Aush, 150 hectares of Aman seedbeds and 233 hectares of vegetables.

Different areas under Aush, jute, chilli, banana, Aman seedbeds and summer vegetables were also affected in Jashore, Chuadanga, Meherpur, Sirajganj and Sunamganj.

Agriculture officials said Aush, summer vegetables and Aman seedbeds had so far faced the greatest impact.

If Aman seedlings are destroyed, farmers in many areas may have to prepare new seedbeds, delaying the cultivation schedule. Damage to vegetables still in the fields could also reduce supplies and raise prices, they said.

Meanwhile, the Flood Forecasting and Warning Centre (FFWC) said yesterday (12 July) that the flood situation in the north-eastern region could worsen over the next 24 to 72 hours.

Water levels in the Khowai, Manu, Kushiyara and Surma rivers were rising rapidly. The Kushiyara was already flowing above the danger level at Markuli in Sunamganj and Fenchuganj in Sylhet.

Water in the Sari-Gowain, Someshwari, Jadukata and Bhogai-Kangsha rivers could also cross danger levels at several points.

This could inundate more low-lying farmland in Sylhet, Sunamganj, Habiganj and Moulvibazar, officials said.

Mohammad Nazmul Kabir, additional deputy director for crops at the DAE's Sunamganj office, said relatively low rainfall in Cherrapunji had so far prevented major flooding.

"However, the area remains highly vulnerable to flash floods," he said.

Vegetable importer Farhan Hossain said actual supplies often declined during disasters, while artificial shortages were also sometimes created to raise prices.

Transport disruption could quickly push up the prices of green chillies, potatoes and other essential vegetables, he said.

Faruk Ahmed, director of the research wing at the Bangladesh Agricultural Research Institute, said most summer crops had been harvested before the monsoon, reducing the risk of a major impact on overall food production.

"However, vegetables, green chillies and newly prepared Aman seedbeds still in the fields could affect the market in the short term," he said.

He added that farmers in waterlogged areas could use the pyramid method, under which crops are grown on raised, pyramid-shaped beds, to improve drainage and reduce the risk of root rot.

Defaulted loans from Bangladesh's nine state-owned banks have risen to nearly Tk 1.89 trillion, prompting the government to begin overall banking-sector overhaul, the finance minister told parliament on Sunday.)

A series of short-, medium- and long-term reforms are being carried out for restoring discipline in the banking sector, said Amir Khasru Mahmud Chowdhury.

Responding to a supplementary question from reserved-seat lawmaker Sabikunnahar during the 23rd sitting of the second session-the first budget session under this government-of the 13th Jatiya Sangsad, the finance minister said total default loans from the state-owned banks stood at Tk 1,88,701.75 crore as of May 31.

The figures were compiled using data submitted to the Bangladesh Bank's Credit Information Bureau (CIB) by the nine state-owned lenders: Agrani Bank PLC, Janata Bank PLC, Rupali Bank PLC, Sonali Bank PLC, BASIC Bank PLC, Bangladesh Development Bank PLC, Bangladesh Krishi Bank, Rajshahi Krishi Unnayan Bank and Probashi Kalyan Bank.

Presided over by Speaker Hafiz Uddin Ahmed, the parliamentary session heard the finance minister stress that reducing the high volume of non-performing loans is essential to restoring order in the banking sector.

He notes that the issue has been given special importance in the government's election manifesto.

To address the problem, Bangladesh Bank has adopted a comprehensive reform strategy.

In the short term, the central bank is preparing guidelines on classified loan- resolution strategies and updating its credit-risk-management framework in line with international standards.

The medium-term plan includes implementing the International Financial Reporting Standard (IFRS-9), introducing accredited institutions to assess collateral value, updating agricultural loan-rescheduling policies, providing incentives to bank officials for recovering defaulted loans, and strengthening reward schemes for regular borrowers.

Long-term measures include setting a cap on the total amount an individual borrower can obtain from the entire banking sector, taking stricter action against willful defaulters, appointing experienced bankers to panels of judges in Money Loan Courts, preventing delays in loan recovery caused by writ petitions, and enacting legislation to establish private-sector asset-management companies.

The finance minister also has said the government has enacted the Bank Resolution Act 2026 to ensure effective management of troubled banks. In addition, it is preparing the Deposit Protection Act 2026 to safeguard depositors' interests.l

And amendments to the laws governing Bangladesh Bank, the Insurance Development and Regulatory Authority (IDRA), Bangladesh Securities and Exchange Commission (BSEC), as well as revisions of the Negotiable Instruments Act, have strengthened the legal framework for addressing cheque fraud and improving the adjudication of cheque-dishonour cases.

"The government is working to restore discipline in the financial sector through a stronger legal framework, a transparent bank-resolution process and enhanced protection for depositors," he told the House.

To another supplementary from Gazipur-4 lawmaker Salauddin, the finance minister said investigations were underway into irregularities, corruption and large-scale financial misappropriation that occurred in the banking sector over the past several years, including at Probashi Kalyan Bank.

He reaffirms that restoring order in the financial sector remains one of the government's highest priorities and describes the ongoing reforms as a comprehensive "cleaning process" across the sector.

During the session, Salauddin alleged that under the previous government, billions of taka had been siphoned off from Probashi Kalyan Bank through "politically influenced loan approvals, bribery and syndicate-based corruption".

As a result, he claims, nearly 61 per cent of the bank's loans have become non-performing. He also alleges that the same syndicates continue attempting to influence loan approvals and disbursements, calling for a thorough investigation and the dismantling of the nexus.

In response, the finance minister makes it clear that the investigation is not limited to a single institution but covers multiple banks.

He notes that action has already been taken against a number of individuals and acknowledges that the financial sector's longstanding irregularities cannot be eliminated overnight, but pledges that the cleanup drive would continue.

Bangladesh Securities and Exchange Commission (BSEC) has imposed fines totalling Tk1,497 crore on individuals and institutions over market manipulation, irregularities and corruption committed during the previous government's tenure, Finance Minister Amir Khosru Mahmud Chowdhury told parliament today (12 July).

Replying to a question from MP Kamrul Hasan during the question-and-answer session, the minister said the regulator has also taken punitive measures, including lifetime and fixed-term bans, licence cancellations, criminal cases, and referrals to the Anti-Corruption Commission (ACC) for further investigation and legal action.The finance minister said BSEC imposed Tk428 crore in fines on individuals and entities involved in the manipulation of Beximco shares.He said an investigation into the Tk1,000 crore IFIC Guaranteed Sreepur Township Green Zero Coupon Bond found evidence of irregularities in its issuance, prompting disciplinary action against those responsible.As part of the action, former IFIC Bank chairman Salman F Rahman and former vice-chairman Ahmed Shayan Fazlur Rahman have been permanently barred from participating in Bangladesh's capital market. Salman F Rahman was fined Tk100 crore, while Ahmed Shayan Fazlur Rahman was fined Tk50 crore.Former BSEC chairman Prof Shibli Rubayat-Ul-Islam has also been banned for life from all capital market-related activities, while former BSEC commissioner Dr Shamsuddin Ahmed has been barred for five years.

Former IFIC Bank managing director Shah Alam Sarwar was fined Tk5 crore, while former IFIC Investments chief executive Imran Ahmed has been banned from capital market activities for five years.

The minister said punitive action has also been taken following investigations into alleged irregularities involving the withdrawal of capital from Ring Shine Textiles Ltd.

He added that former CAPM Advisory managing director and CEO Tania Sharmin and former AFC Capital CEO Mahbub H Mazumdar have each been barred from participating in capital market activities for five years.

The BSEC is also taking enforcement action over irregularities in ABG Ltd's acquisition of a 25% strategic stake in the Chittagong Stock Exchange.

The regulator is continuing disciplinary proceedings over alleged irregularities involving Acme Pesticides Ltd, Al-Amin Chemical Industries Ltd, Emerald Oil Industries Ltd, Sonali Paper & Board Mills Ltd, and Beximco Green Sukuk Al-Istisna, the minister said.

He added that the BSEC has referred several cases involving alleged financial irregularities and possible money laundering to the ACC.

The regulator has also cancelled the brokerage licences of Tamha Securities Ltd, Banco Securities, Crest Securities Ltd and Mashiur Securities Ltd over allegations of misappropriating investors' funds. Criminal cases have already been filed against some of the firms, while others have been referred to the ACC.

Responding to a supplementary question, the finance minister said legal proceedings and investigations against former BSEC officials are already underway.

He also informed parliament that the securities regulator has been reconstituted with a chairman and three commissioners, while the process of appointing another commissioner is ongoing.

"The appointments were not made on political considerations. The recruitment process was so transparent that even I, as finance minister, did not know them personally beforehand," Amir Khosru said.

He said all members of the reconstituted commission are experienced professionals in the capital market and international financial markets.

The finance minister claimed the stock market has been on an upward trend since the new commission assumed office, with the market index recording greater gains over the past two months than in the previous five years.

He attributed the improvement to enhanced transparency, reforms and renewed investor confidence, adding that both domestic and foreign investors, including international fund managers from Hong Kong, New York and London, have expressed interest in investing in Bangladesh's capital market.

Spot gold eased on Friday and was on course for a weekly decline, as higher oil prices linked to the Middle East conflict fuelled inflation concerns and bolstered expectations of tighter US monetary policy.

Spot gold slid 0.4 percent to $4,103.23 per ounce by 2:10 p.m. EDT (1810 GMT), and was down 1.7 percent for the week so far.

US gold futures for August settled around 0.7 percent lower at $4,113.70 per ounce.

The major factor here is the restarting of tensions between the US and Iran, with investors broadly not wanting to hold on to gold and silver at this point, Bart Melek, global head of commodity strategy at TD Securities, said.

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 on Friday.

Oil prices were poised for a weekly rise, propelled by supply concerns amid fresh US-Iran strikes.

Higher energy prices fuel inflation concerns, strengthening expectations of interest rate hikes by central banks.

While gold is generally viewed as an inflation hedge, higher interest rates tend to weigh on the non-yielding metal by increasing the appeal of interest-bearing assets.

Every indication points toward the market worrying about inflation, particularly since oil has rebounded in the last few days, Melek said.

This will keep central banks diligent, particularly the Federal Reserve, he added.

Traders are pricing in about a 69 percent chance of a rate hike in September, according to the CME FedWatch Tool.

The minutes from the Fed meeting in June showed a hawkish split as concern about high inflation mounted.

Investors are now eyeing next week’s inflation data and Fed Chair Kevin Warsh’s testimony for further insight into the monetary direction.

Meanwhile, gold traded at a steep discount in India this week, while demand in China remained steady.

This followed the Chinese central bank reporting its largest monthly increase in gold reserves in more than 2-1/2 years in June.

Investor confidence in Bangladesh's capital market is gradually returning due to sweeping reforms, stronger regulatory oversight and strict action against those involved in past market manipulation, Finance Minister Amir Khosru Mahmud Chowdhury told parliament today (12 July).

Responding to a supplementary question from opposition MP Md Kamrul Hasan (Mymensingh-6), the minister said the country's capital market has shown visible improvement since the reconstituted Bangladesh Securities and Exchange Commission (BSEC) assumed office.

"The stock market has maintained an upward trend over the past two months, with significant gains in the market indices," he said, adding that the current commission is playing a positive role in restoring investor confidence by ensuring greater transparency and accountability.

The finance minister said the government has appointed a completely new BSEC comprising a chairman and three commissioners, while the process of appointing another commissioner is underway.

He said none of the commission members had been appointed on political considerations. Instead, they were selected based on professional competence, experience and integrity.

According to the minister, the commission, led by professionals with extensive experience in domestic and international capital markets, is working to strengthen governance in the market.

Highlighting actions taken against irregularities and market manipulation during the previous government's tenure, he said disciplinary measures had already been taken against individuals and institutions found responsible, while investigations and legal proceedings in several other cases remain ongoing.

Detailed information on these actions has also been published on the BSEC's website, he added.

The minister said financial penalties had been imposed on various individuals and organisations for market manipulation and fraud. Action has also been taken against those involved in manipulating Beximco share trading.

He added that the commission is implementing further measures based on the recommendations of a committee formed to investigate allegations of corruption and financial irregularities.

The government's objective, he said, is to transform Bangladesh's capital market into a transparent, accountable and internationally recognised investment destination.

He claimed that not only local investors but also listed companies and international fund managers have started showing renewed interest in the market.

Investment managers from major global financial centres, including Hong Kong, London and New York, have already begun visiting Bangladesh to assess investment opportunities in the capital market, he said, adding that the market's recent upward trend reflects improving investor confidence driven by the government's reform initiatives.

In response to another supplementary question, the finance minister said the government is implementing a comprehensive programme to make the tax system simpler, fairer and more taxpayer-friendly while expanding the country's tax base.

He said the National Board of Revenue (NBR) is identifying the market share of different businesses and assessing taxes based on their actual business capacity to ensure a more rational and transparent taxation system.

The government is also introducing a simplified flat-rate tax regime to bring individuals and small businesses currently outside the tax net into the formal tax system, he said.

Under the proposed system, taxpayers will pay a fixed amount based on their financial capacity and location, eliminating the need to file income tax returns or undergo lengthy assessment procedures.

The minister said the primary objective is to encourage voluntary tax compliance among new taxpayers and rapidly expand the tax base. Once a sufficient number of new taxpayers are brought into the system, they will gradually be integrated into the conventional tax regime, he added.

A private service holder, Rezaul Karim, first accessed the digital nano loan feature around four years ago, shortly after it was introduced, when the initial credit limit was Tk1,000.
TBS Illustration
TBS Illustration

Since then, he has used the service numerous times, with the credit limit gradually increasing to as much as Tk34,000 based on transaction history and repayment behavior.Sharing experience with The Business Standard, Karim said that digital loan services have become an important source of short-term financing for his everyday expenses.He first discovered the loan while making a payment through the bKash app, and after reviewing terms and conditions, he borrowed Tk1,000 to complete the purchase of a shirt.
"The service is particularly useful during emergencies or when immediate cash is needed, such as during Eid holidays when banking services are less accessible," said Karim. "On one such occasion, I borrowed Tk11,000 after running out of cash while away from home."Digital nano loan disbursement crossed Tk10,000 crore in July, marking a significant milestone in Bangladesh's first fully digital and collateral-free loan service introduced jointly by bKash and City Bank in December 2021.Over 35 lakh bKash customers availed the loan from City Bank so far under the digital nano loan platform, reflecting an improvement in democratising access to credit for marginal people.bKash data shows that users availed the loans service over 3 crore times when the platform offered a minimum of Tk500 to a maximum of Tk50,000 based on payment behavior.

Under the digital loan platform, around 1 lakh customers receive an average of Tk3,500 each every day through the bKash app. In contrast, all banks combined lend to only around 20,000-25,000 people or companies.

Over 1.2 crore bKash customers are currently eligible to avail loans based on users' transaction behavior on the bKash app, KYC information, and previous loan repayment history, according to bKash.

The service was initially started with only 2 lakh customers. After the pilot phase, it expanded to 8 lakh and gradually increased to 1.2 crore in 4 years, according to City bank.

Arup Haider, deputy managing director of City Bank, said digital nano loans tell a bigger story of democratising credit and financial inclusion, which was the fundamental idea.

He said people frequently face unexpected situations where they urgently need cash, but there was no system to address that need. Nano loans have now filled that gap.

This has improved the lives not only of vegetable sellers but also of corporate employees, journalists, and countless ordinary people, said Haider.

He expects that if today's borrowers continue to grow, the average ticket size may rise from Tk3,500 to Tk10,000, because customers are gradually building credit scores and repayment histories. When ticket size grows, it will be used for the productive sector, he added.

"What we're seeing today is only the tip of the iceberg," said the banker.

Eventually, perhaps by 2030 or 2031, as many as one million people could receive nano-loans every day. When that happens, informal moneylenders will largely disappear. Many local lending associations will also become obsolete," he said. He also believes a significant share of the NGO microfinance market will eventually shift toward nanolending.

How nano-loans are democratising credit

According to bKash data, nearly half of all Tk10,000 crore loans have been disbursed outside large cities like Dhaka and Chattogram, expanding access to formal finance in smaller cities, towns, villages, and underprivileged communities. More than one-quarter of the borrowers are women, strengthening their financial inclusion and economic participation.

Ali Ahmmed, chief commercial officer of bKash, said the milestone has significant economic implications because the loans are reaching people who largely lack access to formal banking, particularly outside major cities. Women, small traders, and micro-entrepreneurs are using the loans for productive purposes, such as purchasing inventory or working capital.

He said customer feedback and internal research indicate that many borrowers use the funds to support income-generating activities.

For instance, someone selling vegetables in the market may borrow Tk5,000 in the morning, purchase vegetables, transport them to Dhaka, and sell them. They may repay the loan within a week or a month, but during that period they could generate business worth Tk30,000. Since vegetables often have margins of 40-50%, they can earn substantial returns. The economic impact of thousands of such cases is difficult to quantify, he said.

The government's vision of a cashless Bangladesh begins with people shifting from cash to digital transactions. Once customers start using mobile financial services digitally, they create a credit history, he said.

The borrowers' list is continuously refreshed. Some customers qualify while others are removed, depending entirely on scoring models. Their loan limits also change over time as new transaction and repayment data becomes available.

Loan eligibility is determined using customers' transaction history in bKash accounts along with City Bank's credit policy. The repayment period is 3 months to 6 months.

The maximum six-month option is mainly for financing purchases of specific products using the Pay Later product, and only a very small percentage of borrowers use that option. About 99% of customers repay within three months, according to the bank.

The service has become a vital financial safety net—helping manage emergency expenses, education costs, household needs, and temporary business cash-flow gaps while reducing dependence on predatory informal lenders.

There is no charge for early settlement of the loan, and interest applies only for the period the loan remains outstanding.

Eligible customers simply tap the Loan icon on the bKash app, enter the desired amount within their approved limit, accept the terms and conditions, enter their bKash PIN, and instantly receive the approved loan amount in their bKash account.

Though the contribution of digital nano-loans to overall business is still negligible, City bank experienced rapid growth in users and strong repayment behavior, which kept the service at break-even.

With a default rate of less than 1%, the digital lending model has demonstrated strong portfolio quality. The bank noted that approximately Tk8,000 crore of the total disbursement occurred within the last 18 months, highlighting the product's rapid growth.

So far, out of the Tk10,000 crore the bank disbursed, around Tk80 crore has not yet been recovered, according to the lender.

How costly are nano-loans?

The bank charges 17% to 19% for digital nano loans, which looks high but is not burdensome, said Arup Haider. "Apparently it looks high, but most people don't find that unreasonable."

Citing an example, he said, "If you borrow Tk10,000, you'll repay around Tk10,400 over three months of the loan period."

He said in traditional banking, issuing a loan requires a large operational process. "That's where digital technology changes everything."

He added, "Also, think about the alternatives. If you cash out Tk10,000 through conventional channels, you might spend around Tk200 in fees. Here, you receive a three-month loan and repay it gradually in installments, paying only less than Tk400 extra in total when this loan solves your immediate problem."

Future of digital nano-loans

Ali Ahmmed sees two major opportunities. First, the number of customers with access to credit can increase substantially given the country's around 126.6 million adults with national identity cards and more than 84 million mobile financial service users.

Second, there are significant opportunities for small and medium enterprises (SMEs). Many small businesses currently have no meaningful access to formal finance. Many already use bKash for cash-in, cash-out, and merchant payments.

"If banks partnered with us to provide working capital loans, the funds could be used much more productively," he said.

"For example, suppose a pharmacy receives a Tk100,000 loan. Instead of receiving cash, the business could directly pay pharmaceutical companies to purchase medicines. The pharmacy would then sell those medicines and repay the loan after one week, 15 days, or a month."

"We often discuss the slow growth of private-sector credit. I believe that if we properly structure digital lending for SMEs, it could become an important driver of future private-sector credit growth," he said.

Bangladesh's apparel exports to the United States declined more than 8 per cent in the first five months of 2026 as weaker consumer demand weighed on imports, although a rebound in May signalled a potential recovery in export orders.

Data from the US Office of Textiles and Apparel (OTEXA) showed Bangladesh exported apparel worth US$3.25 billion to the US during January-May 2026, down 8.08 per cent from the same period a year earlier.

The decline came as the overall US apparel import market contracted sharply.

Total US apparel imports fell 9.25 per cent year-on-year to $28.78 billion during the five-month period, while import volumes dropped 9.48 per cent, reflecting softer consumer demand.

Average import prices edged up just 0.25 per cent.

Despite the weak cumulative performance, Bangladesh recorded a turnaround in May, with apparel exports rising 6.04 per cent year-on-year to $582 million, indicating improving sourcing demand.

In volume terms, Bangladesh shipped 6.21 per cent fewer garment pieces to the US market during January-May, while the average unit price declined by 2.0 per cent, underscoring continued pressure on both shipment volumes and prices.

The OTEXA data also pointed to an ongoing reshuffle in global sourcing patterns.

Vietnam, the largest apparel supplier to the US, recorded 1.46 per cent growth during the period, while Cambodia emerged as the fastest-growing major supplier with exports rising 14.9 per cent. Indonesia also expanded its apparel exports by 5.49 per cent.

By contrast, China's apparel exports to the US plunged 42.75 per cent, highlighting the continued impact of trade tensions and buyers' diversification strategies. India's exports declined 26.37 per cent, while Pakistan recorded a 12.35 per cent fall.

Cambodia also led volume growth, with shipments increasing 18.03 per cent, followed by Indonesia (13.16 per cent) and Vietnam (3.01 per cent). Bangladesh's export volume declined 6.21 per cent, while China's plunged 29.67 per cent.

Average unit prices fell across most major suppliers. China recorded the steepest decline at 18.59 per cent, followed by Pakistan (6.84 per cent) and Indonesia (6.78 per cent). Bangladesh's average unit price fell by a comparatively modest 2.0 per cent.

Mohiuddin Rubel, former director of BGMEA, said the latest figures reflected both weaker US import demand and an ongoing shift in global sourcing.

"The sharp contraction in China's exports and the continued growth of Cambodia and Vietnam suggest buyers are actively diversifying their sourcing. Bangladesh has also benefited from this trend to some extent, but the overall decline in US imports has constrained its export performance," he said.

He said Bangladesh's return to positive growth in May was an encouraging sign, but sustaining the momentum would require stronger competitiveness, shorter lead times and higher productivity.

"With China's share of the US market shrinking rapidly, Bangladesh has an opportunity to secure additional orders if it can strengthen logistics, enhance compliance and maintain competitive pricing," he added.

Rubel also expressed optimism that exports to the US market would continue to improve in the coming months as order inflows strengthened, a trend that is also reflected in Export Promotion Bureau (EPB) data.

The Asian Development Bank (ADB) has lowered Bangladesh’s economic growth forecast, projecting the country’s gross domestic product (GDP) to expand by 3.7 per cent in fiscal year (FY) 2026 and 4.5 per cent in FY2027.

The revised projections were published in ADB’s Asian Development Outlook (ADO) July 2026, released on Thursday, UNB reports.

The latest forecast reflects weaker export performance, sluggish private investment, elevated energy costs, persistent inflation, and a more challenging external environment.

“Bangladesh’s economy continues to show resilience amid a difficult global and domestic environment, supported by strong remittance inflows and steady services activity,” said Akira Matsunaga, Deputy Director (Officer-in-Charge) of ADB’s Bangladesh Resident Mission.

He said sustained reforms to strengthen macroeconomic stability, improve the investment climate, enhance financial sector governance, and address energy and infrastructure constraints would be critical to supporting a stronger and more inclusive recovery.

Such reforms would also help attract greater private investment, create quality jobs, and strengthen the country’s economic resilience, he added.

ADB expects inflation to remain high at 9.0 per cent in FY2026, unchanged from its April forecast, as recent increases in domestic petroleum, gas, and electricity prices continue to feed through to transport, utility, and other consumer costs.

Inflation is projected to ease slightly to 8.8 per cent in FY2027, higher than the 8.5 per cent forecast in April, owing to second-round effects from higher energy and transport costs, exchange rate pass-through, and persistent food and services inflation.

The report said economic growth in FY2026 would be supported by strong remittance inflows, steady expansion of the services sector, and targeted credit easing measures for priority sectors despite an overall tight macro-financial environment.

However, it noted that high inflation continues to erode household purchasing power and restrain private consumption, while weak exports and moderate import growth indicate subdued external demand and sluggish private investment.

On the supply side, export-oriented manufacturing is expected to remain under pressure from high energy prices, weak global demand, and structural bottlenecks. Agriculture also faces risks from fertiliser shortages, although the services sector is likely to support growth through remittance-backed household spending.

For FY2027, ADB expects moderate inflation, simplified business regulations, improved governance, tax administration reforms, and continued remittance incentives to support stronger consumption and investment.

Nevertheless, vulnerabilities in the banking sector, energy shortages, and weak competitiveness are expected to keep economic expansion gradual.

ADB also warned of significant downside risks to the outlook.

It said any further escalation of the conflict in the Middle East could push up global energy and shipping costs, intensify external pressures, weaken growth through higher inflation, and reduce remittance inflows.

The report added that higher global oil prices could widen Bangladesh’s import bill and increase fiscal pressure through larger energy subsidies, while higher tariffs, broader trade restrictions, or weaker growth in major economies could further dampen export demand and prolong weakness in the manufacturing sector.

Persistent exchange rate pressures, tight external financing conditions, and climate-related shocks also remain key risks to the country’s economic outlook.

Non-performing loans (NPLs) in banks with significantly higher trade-finance exposure range between 40 per cent and 50 per cent, according to a study of the Bangladesh Institute of Bank Management (BIBM).
And the rate exceeds 80 per cent in banks having both high overall NPLs and substantial trade-finance exposure, it revealed.

The study paper titled 'Trader Services Operations of Banks' was presented at a review workshop organised by the BIBM at its campus at the city's Mirpur area on Wednesday.

Presenting the findings, he said discussions with banks having significant trade finance exposure indicate that asset quality pressure has already become evident in trade-related portfolios.

The BIBM also identified the conversion of non-funded liabilities into forced loans as one of the principal drivers of trade finance-related Non-Performing Loans (NPLs).

Besides, financing associated with imports of capital machinery, raw materials such as cotton, commodities including sugar and fertiliser, fuel, and scrap vessels has significantly contributed to the deterioration of asset quality, it revealed.

The workshop brought together senior bankers, policymakers, regulators, academics, and researchers to deliberate on the emerging challenges and future direction of trade finance in Bangladesh.

Dr. Md. Ezazul Islam, Director General of BIBM presided over the workshop while the keynote paper was presented by Dr. Shah Md. Ahsan Habib, Professor (Selection Grade), BIBM, on behalf of the research team.

The research further identified structural weaknesses in export finance. Findings from the opinion survey showed that nearly all bankers considered the use of back-to-back letters of credit (LCs) without legally enforceable sale-purchase contracts to be a major cause of NPL formation.

According to the study, while back-to-back LC arrangements are designed to support export production by linking input procurement with confirmed export orders, weak or disputed underlying contracts can undermine the financing chain.

Delays or failures in realising export proceeds may quickly transform transaction-based trade finance facilities into forced loans, eliminating their self-liquidating nature and leaving banks exposed to significant credit risk.

In his address, Ezazul Islam emphasised the need for modernising the legal and digital infrastructure for electronic trade documents to facilitate faster, more secure, and paperless trade transactions.

He also stressed the importance of strengthening Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) measures and reinforcing controls against Trade-Based Money Laundering (TBML), while ensuring efficient and customer-friendly banking services.

Dr. Ezazul Islam further highlighted the importance of expanding the access of Small and Medium Enterprise (SME) to trade finance through innovative financial products and risk-sharing mechanisms.

He also underscored the need for improving product-level data, strengthening risk management practices, and enhancing asset quality monitoring.

He also called for stronger coordination among Bangladesh Bank, commercial banks, customs authorities, and other relevant stakeholders to develop a resilient, transparent, and efficient trade finance ecosystem capable of supporting Bangladesh's growing international trade.

The keynote paper was jointly prepared by Dr. Shah Md. Ahsan Habib, Professor (Selection Grade), BIBM; Tofayel Ahmed, Assistant Professor, BIBM; Rahat Banu, Assistant Professor, BIBM; Rajib Kumar Das, Lecturer, BIBM; Mohammad Arafat Ali, Additional Director, Foreign Exchange Policy Department-1, Bangladesh Bank; and A.T.M. Nesarul Hoque, Executive Vice President, Mutual Trust Bank PLC. All members of the research team were present at the workshop.

The workshop also featured comments from distinguished panellists, including Md. Ali Hossain Prodhania, Supernumerary Professor, BIBM and Chairman, NRBC Bank PLC; Mahmudur Rahman, CDCS, Deputy Managing Director, Islami Bank Bangladesh PLC; . Syed Sazzad Haider Chowdhury, Deputy Managing Director, Prime Bank PLC; and Faruk Ahmed, Deputy Managing Director, City Bank PLC.

The event concluded with an interactive open-floor discussion, where senior executives from commercial banks, Bangladesh Bank, and other stakeholders exchanged their views on strengthening trade finance operations and improving asset quality in the banking sector.

Bangladesh Economic Zones Authority (BEZA) is seeking approval for a Tk19.18-billion infrastructure-development project to carve out three sub-zones in the National Special Economic Zone (NSEZ) in Mirsarai ready for industrial operations.

The Prime Minister's Office has sent the development project proposal (DPP) titled "Infrastructure Development at Sub-Zones 6, 11 and 12 in National Special Economic Zone Project" to the Planning Commission for approval, officials say.

The proposed scheme will cover 1,292.08 acres of land, where investors have already received industrial plots but have been unable to set up factories for the absence of essential infrastructures, including roads, electricity and gas facilities, according to the DPP.

The proposed investment comes as BEZA is already implementing five projects for the NSEZ with a combined estimated cost of Tk57.55 billion, raising concerns over project-execution capacity and resource utilisation.

Experts have called for prioritising completion of ongoing schemes and ensuring effective use of public funds before taking up new projects to maintain discipline in public investment.

Under the proposed project, BEZA will construct 35.26 kilometres of roads, 49.36 kilometres of drainage networks and 51.11 kilometres of footpaths, along with bridges, to improve connectivity within the economic zone.

The scheme also includes a 22-kilometre gas-distribution network with two District Regulating Stations (DRS), a 21.15-kilometre electricity network with three substations, and development of 1.13 million cubic metres of land for industrial use.

Besides utility infrastructure, two residential buildings and a complex area will be developed for officials and employees working in the zone.

The DPP says, "The project aims to create an investment-friendly environment by ensuring basic services needed for factory establishment."

The NSEZ, being developed close by the port city of Chattogram, is the country's largest economic zone. BEZA has already acquired or received allocation of around 17,000 acres of land for the zone, which has been divided into 30 sub-zones under a master plan.

The authority expects the development to accelerate industrial expansion and create employment opportunities in Mirsarai and Sitakunda of Chattogram and Sonagazi of Feni.

However, the new project is being proposed while several major NSEZ-related schemes remain under implementation.

These include Tk7.62 -billion water-treatment plant and deep tube-well project launched in July 2019, Tk2.74-billion road and drainage infrastructure project started in April 2020, and Tk41.40-billion NSEZ development project initiated in January 2021.

The continuation of multiple large-scale schemes highlights the infrastructure needs of the country's largest economic zone but also raises questions over coordination, implementation efficiency and timely completion.

Dr Mustafa K Mujeri, former director-general of Bangladesh Institute of Development Studies (BIDS), says the government should prioritise completing ongoing projects and ensuring proper utilisation of existing investments before taking up new ones.

"Taking up a large number of projects at the same time creates pressure on public resources and reduces the expected economic benefits. Effective project selection, timely implementation and stronger monitoring are essential to maintain discipline in public investment," he adds.

Think of it like driving with one foot on the accelerator and the other pulling the handbrake. All you get is burnt tyres, a damaged engine, and no movement at all.

That's the direction Bangladesh's economic policy is heading. The government has announced an expansionary budget designed to jumpstart a sluggish economy, while the central bank holds the line on a bruising 10% policy rate to fight stubbornly high inflation. It's a classic macroeconomic standoff and in this collision, it is the private sector, the engine of growth, that takes the hit.
Economists say that when fiscal policy is expansionary and monetary policy is contractionary at the same time, the typical outcome is predictable: interest rates stay high, suppressing private investment; government spending crowds out private spending through the credit channel; inflation moderates, but at the cost of weaker growth than the fiscal expansion intended.

The newly elected government's first budget took an expansionary stance - cutting taxes, protecting local industries, boosting investment incentives, raising the development outlay, deregulating business processes, and expanding social protection. The message to businesses and investors: the cost of operating is lower, the environment more supportive, now is the time to invest and hire.The central bank's contractionary stance sends the opposite signal: borrowing is expensive, credit is constrained, conditions are tight.The million-dollar question is whether businesses will invest when lending rates sit at 12-14%. Businesses say they need 15-18% operating profit just to service debt but profits remain thin or nonexistent. Without that margin, investment stalls.The numbers bear this out. Private sector credit growth has stayed below 5% for months, down from the usual double digits. Many mills are shutting down for want of working capital and energy supply. Private investment as a share of GDP sits at around 21% and, per the government's own medium-term macroeconomic outlook, will stay there for the next two fiscal years. Against this backdrop, absorbing the roughly 25 lakh people entering the job market each year looks increasingly difficult.

Two legitimate priorities, one policy clash

This mismatch isn't accidental or irrational, according to Dr Fahmida Khatun, executive director of the Centre for Policy Dialogue (CPD). It reflects two genuinely competing priorities that are both legitimate given Bangladesh's current conditions: the government needs to stimulate growth through investment, while also reining in inflation.

"It's a double whammy for the government," she said. It creates a problem of policy coherence, yet an expansionary monetary policy now could have been more devastating.

Even with an expansionary fiscal stance, she said, the government must be disciplined about how public money is spent - earning real returns on that spending, and plugging leakages and corruption so investment actually pays off. She hopes fiscal and monetary policy will eventually align, and that the central bank may review its tightened stance within six to twelve months.

Dr Mustafa K Mujeri, former chief economist of Bangladesh Bank, agreed the two policies appear mismatched on the surface. But he argued that contractionary monetary policy has limited real impact on inflation in Bangladesh, since price pressures stem largely from market management and supply chain issues rather than credit conditions alone.

Still, he said the expansionary budget could work if the government channels spending into productive activity while controlling leakage and corruption. "If the government can do this, then there will be no mismatch visible but that is a tough task," he said.

How the mismatch plays out in practice

Tax cuts lower businesses' operating costs, but the interest rate environment determines the cost of the capital they need to expand. A factory owner who saves Tk50 lakh in annual taxes gains little if his working capital loan costs 14-15% and term loan repayments are eating into cash flow. For most businesses in Bangladesh right now, financing cost, not the tax rate, is the binding constraint.

The credit channel itself is broken. Private credit growth at 4.7% isn't primarily a function of high interest rates; it reflects a banking system stressed by over 32% classified loans, wary of borrower quality, and hoarding liquidity overnight rather than lending term. Bangladesh Bank's stance doesn't fix this structural problem - keeping interbank liquidity costly potentially makes it worse by discouraging lending further.

An investor weighing a new project looks at the whole environment: tax rates, energy supply reliability, regulatory ease, political stability, financing cost, and expected demand. The budget improves some of these variables; monetary policy worsens ao critical one. Whether the net effect is positive depends on which factor binds for that particular investor.

For many factories - from spinning, weaving, ceramics - energy supply is the constraint, and neither fiscal nor monetary policy touches it. For domestic-market businesses, weak consumer demand, itself partly a legacy of four years of inflation eroding real incomes - is the constraint. For new investment projects, financing cost and banking sector health are critical. The budget helps with some of these; monetary policy helps with none.

Rising government borrowing compounds the problem. The budget's NBR revenue target of Tk6.04 lakh crore is, by any honest assessment, unlikely to be met given the NBR's recent track record. When revenue falls short, as it has for years, the government borrows more from the domestic banking system to cover the gap and that borrowing competes directly with private credit for the same pool of funds. Every Tk1,000 crore the government borrows is Tk1,000 crore unavailable for private sector loans. With Bangladesh Bank keeping rates high and liquidity tight, that crowding-out effect is even larger than it would be in a looser monetary environment.

The United States in the early 1980s offers the textbook parallel: Reagan's expansionary fiscal policy - tax cuts, defence spending - collided with Paul Volcker's Federal Reserve holding extremely tight monetary policy. The result was high real interest rates, a strong dollar, a recession, and eventually lower inflation but the growth benefits of the fiscal expansion were significantly delayed and diluted.

Bangladesh's financial system is far less developed, its monetary transmission mechanism weaker, and its fiscal capacity more constrained than the US in the 1980s. But the directional logic holds. Perhaps Bangladesh's development partners have already priced this in as the ADB projected on Thursday that GDP will grow just 4.5% in FY27, well below the government's 6.5% target.

The Bangladesh Securities and Exchange Commission (BSEC) plans to overhaul listing rules to attract large, well-governed companies to the stock market by allowing them to list through direct listing after selling just 10% of their shares.

BSEC Chairman Masud Khan announced the plan today (9 July) at the "CMJF Talk" organised by the Capital Market Journalists' Forum (CMJF) in Dhaka.

Currently, only state-owned enterprises can use the direct listing mechanism, and they must float at least 25% of their shares. Masud said the rules would be amended within the next three months so that eligible private companies, including firms such as Unilever Bangladesh and Incepta Pharmaceuticals, can list by offloading only 10% of their shares.

He said the move is intended to address one of the biggest barriers to attracting quality companies to the capital market.

"The current IPO process is lengthy and cumbersome. Entrepreneurs have to submit stacks of documents and wait one and a half to two years for approval. As a result, many good companies prefer bank financing over raising funds from the stock market," he said.

The BSEC is simplifying the IPO and Public Issue Rules to make fundraising through the market faster and more efficient while maintaining regulatory oversight.

To strengthen market surveillance, the commission has delegated greater authority to the Dhaka Stock Exchange (DSE). The exchange will now be able to take immediate action against abnormal price movements and suspected market manipulation without waiting for prior approval from the BSEC. It has also been given the authority to determine circuit breakers.

The regulator is also considering suspending trading in companies that have remained non-operational for a prolonged period to improve market quality.

Highlighting the importance of institutional investment, Masud said the BSEC plans to introduce a certification system for financial advisers to help retail investors make informed investment decisions. The Mutual Fund Rules are also being revised to encourage greater participation by institutional investors.

On enforcement, he said legal reforms are underway to ensure stricter punishment for market manipulators.

"The previous commission imposed fines worth Tk1,500 crore, but only Tk33 lakh could be recovered because of legal complications," he said. The government is considering establishing special court benches for capital market cases and allowing the BSEC to file cases directly with capital market tribunals.

The BSEC is also working with Bangladesh Bank to reduce the securities settlement cycle from T+2 to T+1. Plans are also in place to strengthen the bond market by allowing bonds to be listed on the main board instead of the Alternative Trading Board, while preparations are underway to introduce a derivatives market.

The commission chairman said discussions with the finance ministry on reducing taxes on dividend income, easing restrictions on mutual fund investments and providing tax exemptions for zero-coupon bonds have been positive.

Responding to questions on recent layoffs at the DSE, he said staffing decisions are an internal matter for the exchange, though issues involving dismissed BSEC employees would be resolved this month.

The event was chaired by CMJF President Monir Hossain and moderated by General Secretary Ahsan Habib Russell.

Bangladesh's financial architecture is facing significant pressure as the state-backed contingent liabilities for underperforming State-Owned Enterprises (SOEs) and autonomous bodies reached Tk 400.12 billion in sovereign guarantees till the last fiscal year, officials say.

This massive debt pile, triggered by heavy overseas and domestic borrowing by core public sectors like Biman Bangladesh, Bangladesh Power Development Board (BPDB), and state-run fertiliser companies, has surfaced as a major macroeconomic threat, they add.

A series of independent reviews and global assessments warn that these liabilities are pushing public finances toward an unsustainable path.

A recent World Bank study jointly produced with the Policy Research Institute (PRI) reveals that structural inefficiencies, operational leaks, and subsidies to these SOEs cost the national exchequer nearly Tk 882 billion in a single fiscal year.

This massive drain accounts for roughly 1.7 per cent of the nation's gross domestic product (GDP), suffocating the budget available for critical sectors like education, healthcare, and social safety nets.

According to official sources, the concentrated accumulation of debt centres heavily on three capital-intensive sectors - power (BPDB and power plants), aviation (Biman Bangladesh), and agriculture (fertiliser/ Bangladesh Chemical Industries Corporation).

The energy and power sector stands as the single largest contributor to this fiscal risk with the highest amount of sovereign guarantees, bleeding the heaviest losses across the economy.

Driven by controversial contracts, independent power producer (IPP) capacities, and delays, the government has extended over Tk 416.9 billion in guarantees to back 16 massive projects, including the Patuakhali, Payra, and Rampal 1,320MW thermal plants.

Compounding the crisis, Energy Minister Iqbal Hassan Mahmood recently said in parliament that the state was legally bound by these sovereign guarantees, meaning the complex contracts could not be easily modified or cancelled, tying the government's hands over late payment fees and capacity charges.

The national flag carrier represents the second-highest consumer of government-backed security, officials say.

Biman Bangladesh Airlines has accumulated Tk 109.09 billion across 15 aircraft acquisition and engine procurement projects.

Despite massive state backing, the airline remains classified under "high to very high risk" due to operational mismanagement and poor revenue returns, officials say.

To insulate local farmers from international price volatility and ensure a steady domestic food supply, Bangladesh Chemical Industries Corporation (BCIC) and various state-run fertiliser entities secured Tk 64.38 billion in state-guaranteed loans, they say.

Operating on high-cost imports combined with heavily subsidised retail distribution, these corporations have been fundamentally unable to generate the independent revenues needed to clear their commercial liabilities. The Finance Division's latest audit outlines a bleak picture of the institutional stability of public assets.

Over 81 per cent of Bangladesh's SOEs are currently operating under moderate to very high levels of financial risk, the report says.

The World Bank performance index ranks Bangladesh's public enterprises significantly lower than its regional neighbours.

While state-backed entities in India recorded a positive 9.7 per cent return on assets (ROA) and Vietnam achieved an 11.9 per cent return, Bangladesh's non-financial SOEs crashed into the negative, posting a negative 5.2 per cent return on assets.

A Ministry of Finance official says amid a declining tax-to-GDP ratio, rising inflation, and tight foreign exchange reserves, the ministry has launched aggressive damage-control policies to rein in the long-term exposure like the Sovereign Guarantee Penalty Fees to disincentivise unchecked reliance on state cushions, while the government has introduced a 0.25 per cent upfront fee on all sovereign loan guarantees for state, autonomous, or government-controlled entities.Finance

A senior finance ministry official says although there was no incident of sovereign loan default by the SOEs, the government plans to amend the existing guideline to streamline the process and further strengthen the debt payment capacities of the SOEs.

While the total outstanding sovereign liabilities showed a microscopic dip by late last year due to temporary bank repayments, economists warn that without deep corporate governance changes, these Tk 400-billion-plus structural safety nets remain a critical ticking clock for the national economy.

Policy Exchange Bangladesh Chairman Masrur Reaz tells The Financial Express that although sovereign guarantees by the government of developing nations are not very unusual, the fruitful utilisation of the borrowing will have to be ensured.

If the return on the loans, where the government provides guarantees, is high, only those should be considered for providing the security, he says.Banking

He also says if the government goes for providing guarantees for the less important projects or programmes of the SOEs and autonomous bodies, the country's fiscal governance as well as the rating will be downgraded.

Although 360 companies are listed on the Dhaka Stock Exchange (DSE), just 10 account for nearly 40 percent of its total market capitalisation, showing the limited depth of the local capital market.

Analysts say the concentration leaves investors with relatively few quality stocks, discourages institutional participation and keeps the market small compared with regional peers.

Grameenphone, the country’s largest listed company, alone accounts for almost one-tenth of the DSE’s total market capitalisation of Tk 360,895 crore. It is followed by Square Pharmaceuticals and Robi Axiata. Together, the three companies make up about one-fifth of the market value.

Market capitalisation is calculated by multiplying a company’s share price by its outstanding shares. The combined value of all listed companies represents the total market capitalisation of the exchange.

Majority-owned by Norway’s Telenor, Grameenphone ended fiscal year 2025-26 with a market value of Tk 35,053 crore. It had 135 crore outstanding shares, while its stock closed the year at Tk 259.

According to DSE data, Square Pharmaceuticals ranks second with a market capitalisation of Tk 19,856 crore, followed by Robi Axiata at Tk 17,075 crore. BRAC Bank, Walton Hi-Tech Industries, British American Tobacco Bangladesh, Marico Bangladesh, United Power Generation, Berger Paints and LafargeHolcim Bangladesh complete the top 10.

“This shows that the market has a lower number of giant companies,” said Saiful Islam, president of the DSE Brokers Association (DBA). “When the market does not have enough good and big companies, investors do not feel interested in coming here.”

Weak investor participation is reflected in the sharp fall in beneficiary owner (BO) accounts, which dropped to 16.75 lakh at the end of fiscal year 2025-26 from 31.53 lakh on July 1, 2016.

Saiful said the market needed more large, fundamentally strong companies and suggested direct listing could be considered to bring some of them onto the exchange.

The shrinking pool of highly valued companies has become more visible after the removal of the floor price mechanism.

Beximco, which had a market value of Tk 10,385 crore only a few months ago while its share price remained fixed under the floor price, has since seen its valuation fall to Tk 2,763 crore as the stock declined sharply.

After the political changeover in August 2024, the company faced a series of setbacks. Its factories remained closed, it has not published financial statements for the past two years, and its share price dropped to Tk 28 on Thursday last week from Tk 110 two months earlier.
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FEW HIGH-VALUE COMPANIES

Shahidul Islam, chief executive officer of VIPB Asset Management, said Bangladesh simply has too few companies capable of achieving large market valuations.

“There are a few large business groups, but the number of truly large companies is limited,” he said.

According to him, multinational firms such as Standard Chartered, HSBC and MetLife could each have exceeded Tk 10,000 crore in market value had they operated as locally listed companies instead of branches. Unilever and several local banks also have similar potential.

Bangladesh has only five listed companies with market capitalisation exceeding $1 billion. Grameenphone is valued at $2.84 billion, followed by Square Pharmaceuticals at $1.61 billion, Robi Axiata at $1.38 billion, BRAC Bank at $1.23 billion and Walton Hi-Tech Industries at $1.08 billion.

By comparison, Pakistan’s largest listed company Oil & Gas Development Company has a market capitalisation of $5.17 billion. Six Pakistani companies are valued above $2 billion and nine exceed $1 billion.

Shahidul said many Bangladeshi businesses have failed to build sustainable, profit-driven enterprises. “One of the main reasons is that many businesses in Bangladesh are not run primarily to generate sustainable profits but rather to facilitate rent-seeking and asset extraction.”

“The banking sector, for example, should have produced several banks with valuations of this scale. Instead, widespread looting and capital flight have prevented them from reaching that level.”

“A company valuation is fundamentally based on its future profit potential. Therefore, if a company cannot generate strong and sustainable earnings, it will never achieve a high valuation,” he said.

He said highly valued companies usually shared several characteristics, including strong business fundamentals, genuine profitability, sound corporate governance, quality products and services, and a consistent ability to create value for shareholders.

“Unfortunately, many companies in Bangladesh lack this fundamental business mindset and good intentions. As a result, they fail to command high valuations.”

He also said many companies underreported profits to reduce tax liabilities, contributing both to Bangladesh’s exceptionally low tax-to-GDP ratio and its low market capitalisation-to-GDP ratio.

LARGE FIRMS REMAIN OFF THE MARKET

Prof Abu Ahmed, chairman of the Investment Corporation of Bangladesh (ICB), said Bangladesh’s largest companies remain much smaller than those in comparable economies.

“Leaving aside international comparisons, the gap is massive even when compared to our neighbours. For instance, compared to any of the top ten companies in India, our large companies are only a quarter of their size.”

“Even the pharmaceutical companies in Sri Lanka or Pakistan are much larger than ours,” he added. “Among the companies in our country, only Grameenphone might come close in size to similar telecom companies in Pakistan or Sri Lanka.”

Prof Ahmed said it is natural for the top 10 companies to account for around 40 percent of market capitalisation. However, the broader problem is the shortage of large listed companies.

“It is quite natural, nothing unusual at all, for the top ten companies in our market to contribute 40 percent of the total market share. In fact, this is a good thing in one aspect; at least these large companies adhere to rules and regulations and regularly pay out dividends, which works in favour of general investors.”

He said Bangladesh has several large and successful businesses that have chosen to remain outside the stock market.

He cited Unilever and Incepta as examples.

“A multinational company like Unilever is two to three times larger than others, and a pharmaceutical company like Incepta ranks second in terms of turnover, yet they are not on the stock exchange. It is vital for these kinds of good, large companies to enter the capital market.”

“One of the major limitations of our economy is that, to this day, not a single company from Bangladesh has become globally known. To change this scenario, our promising companies must not only maintain high quality but also grow significantly in size,” Ahmed concluded.

Five consecutive days of heavy rainfall and rough seas have severely disrupted cargo handling at Chattogram Port, slowing handling and deliveries and raising concerns among businesses over potential supply chain disruptions across the country.

The adverse weather has halted lighter vessel operations at the port's outer anchorage, preventing imported cargo from being transported to destinations nationwide.

At the same time, waterlogging at port terminals and inland container depots (ICDs) has allegedly damaged imported goods, prompting importers and customs clearing and forwarding (C&F) agents to seek compensation. However, the Chattogram Port Authority (CPA) has rejected liability, describing the damage as an "Act of God."

Business leaders warned that prolonged disruptions could lead to shortages of essential commodities, including wheat, edible oil, sugar, fertiliser, clinker and other industrial raw materials in regional markets.

The disruptions have already hit wholesale trade at Chattogram's Khatunganj, the country's largest food commodity market, where daily business has dropped sharply.

Cargo handling remains below normal

Port data show cargo handling and container delivery have remained significantly below normal levels over the past several days, although operations have gradually improved.

Container handling fell to 4,797 TEUs on 7 July, compared with the port's normal daily average of 9,000 to 11,000 TEUs. It increased to 5,230 TEUs on 8 July, 6,414 TEUs on 9 July and 7,146 TEUs on 10 July, yet well below the regular average.

Container deliveries also remained subdued. The port delivered only 2,606 TEUs on 8 July, rising to 2,820 TEUs on 9 July and 3,452 TEUs on 10 July, still well below normal operating capacity.

Businesses said the slower movement of cargo is delaying industrial production and affecting domestic distribution networks.

More than 60 ships stranded

Sarwar Hossain Sagar, president of the Bangladesh Berth Operator and Ship Handling Operators Association, said more than 60 vessels are currently waiting at Chattogram Port's outer anchorage because rough seas have prevented offshore cargo operations.

"Each idle vessel is incurring demurrage costs of around $25,000 to $30,000 per day," he said.

According to him, the industry is losing between $1.2 million and $1.5 million every day, equivalent to roughly Tk15 crore to Tk20 crore. Over the past five days, cumulative losses have exceeded Tk100 crore.

He added that between 4,000 and 5,000 workers involved in offshore cargo handling have remained without work during the suspension.

Parvez Ahmed, spokesperson for the Bangladesh Water Transport Cell, said no cargo has been transferred between mother vessels and lighter vessels for the past five days because of rough sea conditions.

"Lighter vessels are waiting in the Karnaphuli River and Patenga offshore until weather conditions improve," he said. "Cargo transportation through inland waterways will remain suspended as long as the sea remains rough."

He noted that more than 70% of the country's domestic cargo transportation moves through waterways. Continued disruption, he warned, could affect supplies in warehouses across the country, particularly for wheat, sugar, edible oil and other essential commodities.

The impact is already being felt at Khatunganj, Chattogram's largest wholesale market for food commodities.

Aminur Rahman Mintu, general secretary of Khatungonj Trade and Industry Association, said daily transactions that usually range between Tk200 crore and Tk250 crore have fallen to only around Tk30 crore because of transport disruptions and slower cargo arrivals.

He warned that if supplies from Chattogram continue to slow, rural markets may also experience shortages of essential food commodities.
Garment factories face production disruptions

The adverse weather has also affected the readymade garment sector.

SM Abu Tayyab, director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said flooding in low-lying residential areas prevented many workers from reporting to factories over the past five days.

"Attendance declined significantly on at least two working days, forcing some factories to reduce production while others temporarily suspended operations," he said.

Factories will have to operate additional shifts to recover lost production, he added.

He also warned that delays in releasing imported raw materials from the port could create shortages of industrial inputs and further disrupt garment manufacturing if normal operations are not restored quickly.

He urged authorities to ensure full-scale port operations as soon as weather conditions permit.
Importers seek compensation for damaged cargo

Importers and freight operators alleged that waterlogging at port yards and several private container terminals damaged imported cargo stored in containers.

Captain Salahuddin, president of the Bangladesh Shipping Agents Association, said water accumulated because of inadequate drainage facilities inside the port.

"A considerable amount of cargo has reportedly been damaged, but no formal assessment has yet been conducted," he said.

He urged the port authority to assess losses and compensate affected importers.

Khairul Alam Sujan, former vice-president of the Bangladesh Freight Forwarders Association, said the flooding exposed weaknesses in the port's drainage infrastructure.

"Modern ports should have alternative drainage systems capable of quickly removing rainwater during extreme weather," he said.

He alleged that waterlogging occurred not only inside the port yard but also at four or five private container depots, causing damage to importers' goods.

According to him, depot operators should also share responsibility where inadequate infrastructure contributed to the losses.

Despite repeated attempts, Ruhul Amin Sikder, secretary general of the Bangladesh Inland Container Depot Association (BICDA), could not be reached for comment on the alleged damage to goods at the depots as he did not respond to calls from this correspondent.
Port disclaims liability

On Friday, the Chattogram Port Authority issued a public notice informing importers, exporters, shipping agents and other port users that it would not accept responsibility for any losses or damages caused by continuous rainfall and flooding inside port-protected areas since 5 July.

The notice described the incident as an "Act of God" and cited Regulation 199(14) of the Regulations for Working of Chittagong Port (Cargo & Container), 2001, stating that the authority is legally immune from compensation claims arising from such natural calamities.

The notice further said the CPA disclaims any liability for compensation under both the Chittagong Port Authority Act, 2022 and the Regulations for Working of Chittagong Port (Cargo & Container), 2001.

Despite repeated attempts, CPA Secretary Refayet Hamim could not be reached for comment on the alleged damage to goods at the port terminals as he did not respond to calls from this correspondent.

The stock market regulator is set to suspend trading in shares of non-operational companies as part of a broader market reform aimed at protecting investors and improving market integrity, said its new chief.

"There is no other market in the world where shares of closed companies continue to be traded," said Masud Khan, chairman of the Bangladesh Securities and Exchange Commission (BSEC), as the chief guest at the CMJF Talk, organised by the Capital Market Journalists' Forum (CMJF) at the CMJF Auditorium in the capital on Thursday.

"In many countries, [share] trading is automatically halted if a company's production remains suspended for three consecutive months." In Bangladesh, many companies have remained non-operational for 10-20 years but their shares are still transacted on the bourses.

The BSEC chairman said the commission had already delegated greater regulatory authority to the Dhaka Stock Exchange (DSE), enabling it to take real-time action against abnormal price movements and suspicious trading without seeking prior approval from the regulator.

Previously, the DSE needed approval from the BSEC before any action, creating scope for irregularities to continue for longer periods.

"We have empowered the stock exchanges to take immediate action and also given them the authority to determine circuit breakers. Such deregulation is essential for a more efficient market," Mr Khan said.

Meanwhile, the DSE on Thursday suspended trading of shares of two more closed companies-Usmania Glass Factory and Meghna Pet Industries-after detecting abnormal price surges.

Presently, the number of closed companies is 34.

The BSEC chief also outlined plans to introduce day netting for selected quality stocks to improve liquidity and attract more investors to the secondary market.

He said the proposal for introducing day netting had recently been submitted by the DSE Brokers Association. However, the facility cannot be implemented for all listed securities under the current market conditions.

"We are considering introducing day netting initially for quality companies. The facility may begin with around 30 fundamentally strong stocks," Mr Khan said.

The BSEC chief also described the revival of the mutual fund industry as one of his top priorities, saying a strong mutual fund sector is essential for the development of the country's capital market.

"Retail investors often lack the expertise to identify fundamentally sound companies. We want to encourage them to invest through professionally managed mutual funds," he said.

To improve investment decisions, the regulator plans to introduce an internationally benchmarked certification programme for financial advisers while revising the Mutual Fund Rules.

To strengthen oversight of brokerage houses, the BSEC will classify brokers into three risk categories-low, medium and high risk.

Brokerage firms labelled as highly risky will be subject to surprise inspections, the BSEC chief said, adding that investor approval through mobile phone or email before share transactions would be made mandatory to strengthen investor protection.

Responding to a question on bringing multinational and large domestic corporations to the stock market, Mr Khan said the BSEC will amend the rules to allow private companies to be directly listed.

"If they still do not come to the market, despite using public money through bank loans, we will fix a ratio. Companies exceeding that threshold will be required to list in the public interest," Mr Khan added.

The BSEC is also reviewing the margin rules and public issue rules to make the market more investor-friendly.

The BSEC chairman said the existing margin loan regulations contain too many restrictions, making it difficult for investors to access leverage. A draft of the revised rules will be published next week, after which obtaining margin loans is expected to become much easier for good investors, Mr Khan added.

As part of broader market reforms, the securities regulator is also preparing to simplify the initial public offering (IPO) process and introduce a direct listing framework to encourage more fundamentally strong and reputable companies to enter the stock market.

Mr Khan said the existing IPO process discourages quality companies from going public because of lengthy approval procedures and excessive documentation.

"Companies have to wait nearly one-and-a-half years and submit piles of documents for an IPO. Bank financing is much quicker. We have to simplify the IPO process if we want fundamentally strong companies to come to the market," he said.

The regulator also plans to expand direct listing facilities. Under the proposed framework, private companies will be allowed to list by offloading only 10 per cent of their shares, compared with the existing provision under which only state-owned enterprises can directly list by offering at least 25 per cent of their shares.

To deepen the debt market, government and corporate bonds will be shifted from the Alternative Trading Board to the main board of the stock exchanges, while preparations are also underway to introduce derivatives trading.

The BSEC is also gearing up to install T+1 settlement, reducing the settlement cycle from T+2. Bangladesh Bank is currently working with the commission on the implementation framework.

To strengthen market surveillance, Mr Khan said an artificial intelligence (AI)-based monitoring system would be introduced within a year. The DSE has already been instructed to bring the necessary changes for the new surveillance platform.

Mr Khan acknowledged that enforcement has long been one of the weakest aspects of Bangladesh's capital market.

He said the BSEC is considering filing criminal cases instead of civil suits when taking action against market manipulation, irregularities and fraud to make enforcement more effective.

The BSEC chief said the previous commissions had imposed around Tk 15 billion in penalties, of which only about Tk 3.3 million was recovered because most cases remained pending with the courts.

To address the problem, the commission is pursuing legal reforms, including the establishment of a dedicated HC bench for capital market cases and authority to file cases directly with the capital market tribunal to ensure quicker punishment for offenders.

The BSEC chairman also defended the commission's decision to remove the floor prices of two stocks despite criticism, saying the move was necessary to restore normal market functioning.

Referring to the recent regulatory initiatives, Mr Khan said the regulator had intervened to prevent the delisting of Beximco Pharmaceuticals from the London Stock Exchange in order to protect Bangladesh's reputation in international capital markets.

Responding to a query on the dismissal of DSE employees, Mr Khan said recruitment and termination of the exchange's employees fall entirely under the authority of the stock exchange and that the BSEC has no role in such administrative decisions.

However, he expressed hope that issues relating to dismissed BSEC employees would be resolved within this month.

Reflecting on his appointment, Mr Khan said he had initially declined the position because many people warned him that almost everyone who had previously served at the BSEC had left office with a damaged reputation.

"I accepted the responsibility only after receiving assurances from the government's top leadership that I would have complete independence to carry out reforms."

CMJF President Md Munir Hossain presided over the event, while General Secretary Ahsan Habib conducted the programme.

A significant amendment to Bangladesh's income-tax law has paved the way for taxing foreign digital businesses that have no physical presence in the country but serve 0.1 million or above Bangladeshi users.

The new provision, effective from July 1, targets non-resident entities-both companies and individuals -- that earn income from digital activities involving users in Bangladesh. Only the portion of income attributable to Bangladesh would be subject to tax.

Under the amendment, a non-resident entity will be deemed to have a permanent establishment (PE) in Bangladesh if it has 100,000 or more digital or online customers or subscribers in the country.

Tax officials say information on the subscriber base of such digital businesses, including online content creators and "view-based" businesses, would be obtained from the Bangladesh Telecommunication Regulatory Commission (BTRC).

However, Bangladeshi freelancers and local content creators will not fall within the scope of the new provision.

A senior tax official says view-based businesses, including YouTube channels, have grown rapidly in recent years, with many individuals and companies attracting millions of subscribers or viewers.

"The owners of such pages will be taxed under the new provision if they are non-resident entities and meet the prescribed threshold," says the official.

He adds that identifying the number of subscribers would not be difficult because subscriber counts are publicly displayed on most digital platforms.

"Bangladesh is already collecting tax at source on payments made to Google, YouTube, Netflix, Meta and other global technology companies when users pay subscription fees," he told The Financial Express.

The change has been introduced through the Finance Act 2026 by expanding the definition of Permanent Establishment under Section 2(92) of the Income Tax Act.

The amended provision now includes: "Any digital or online activity or presence in Bangladesh by a non-resident entity where such entity has 100,000 or more digital or online customers or subscribers."

Tax experts say the amendment represents one of Bangladesh's most significant attempts to bring the digital economy within the tax net by recognising a substantial digital presence even without a physical office.

Adeeb H. Khan, Senior Partner at Rahman Rahman Huq, says the measure could be viewed as a step forward in taxing digital businesses at a time when countries worldwide are struggling to determine how to tax cross-border digital activities.

"However, it could also give rise to double-taxation issues, depending on the provisions of Bangladesh's tax treaties with other countries," he notes.

Bangladesh currently has Double Taxation Avoidance Agreements (DTAAs) with 36 countries to prevent taxpayers from being taxed on the same income in both jurisdictions.

Snehasish Barua, Chartered Accountant and Partner at Snehasish Mahmud & Co., thinks the practical effectiveness of the new provision could be limited by those international tax treaties.

"Under Bangladesh's income tax law, the provisions of Double Taxation Avoidance Agreements prevail over domestic law," he says.

"Most existing tax treaties require a physical presence before a country can impose tax. Therefore, unless these treaties are amended, the new provision may not, in practice, enable Bangladesh to collect taxes from many foreign digital businesses."

He also cautions that implementing the measure without adequate research and careful consideration could create complications with Bangladesh's trading partners.

The amendment strengthens Bangladesh's legal framework for taxing the digital economy. Although the income-tax law already taxes income derived from electronic sales and digital services connected to Bangladesh, the revised definition of permanent establishment provides a stronger legal basis by treating a significant digital user base as creating a taxable presence.

The key challenge, however, will be implementation.

Tax analysts say the success of the measure will depend on whether the National Board of Revenue (NBR) can identify qualifying individuals and companies, determine the portion of profits attributable to Bangladesh, and enforce tax collection from non-resident digital businesses, particularly where tax treaty-obligations apply.

A high-level International Monetary Fund (IMF) delegation will arrive in Dhaka tomorrow (12 July) 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.

On the first day of the visit, IMF officials are scheduled to hold meetings with representatives from the finance ministry, Bangladesh Bank and other relevant agencies.
During the mission, which runs through 16 July, the delegation, led by IMF Bangladesh Mission Chief Ivo Krznar, will assess the government's economic reform agenda, policy priorities and the current macroeconomic situation.In tomorrow's meetings, the IMF is expected to seek the government's position on its reform plans, revenue mobilisation, subsidy reforms, banking sector restructuring, exchange rate policy and broader macroeconomic objectives.Finance ministry officials said the IMF will review Bangladesh's current economic conditions before deciding whether the institution will formally consider the country's request for a new lending programme.
Finance ministry officials expect that, if the current mission delivers a favourable assessment, formal negotiations on a new lending programme could begin after the IMF-World Bank Annual Meetings in October.During the five-day visit, the IMF will also review the BNP government's FY2026-27 budget, the medium-term budget framework, the Annual Development Programme (ADP) and major infrastructure projects.

The discussions will also cover revenue collection, tax policy, public expenditure, social safety net programmes, public sector wages and recruitment, as well as subsidies for electricity, gas, fuel, fertiliser and food. Officials will also discuss power sector capacity payments, banking reforms, implementation of the Bank Resolution Act, financing of state-owned enterprises, external debt management, commercial borrowing and risks related to foreign financing.

The IMF delegation is also scheduled to hold a separate roundtable discussion on Bangladesh's banking sector.

In an email sent on 26 June to the finance secretary and the Bangladesh Bank governor, Ivo Krznar wrote: "This is not a loan negotiation mission, but rather a 'fact-finding staff visit'. The purpose of the visit is to gain a direct understanding of the government's policy objectives, reform agenda and priorities, and to prepare the IMF's internal assessment based on that information."

Krznar added: "The information gathered during this visit will form the basis for the IMF's macroeconomic assessment and policy assumptions before any potential loan negotiations begin. It will also help determine where technical assistance may be required."

In 2023, the then Awami League government signed a $4.7 billion loan agreement with the IMF to address Bangladesh's foreign exchange reserve crisis. During the tenure of the interim government, additional financing under the Resilience and Sustainability Facility (RSF) increased the total programme size to $5.5 billion.

However, after disbursing $3.595 billion in five tranches, the IMF suspended further disbursements in December last year because Bangladesh failed to meet programme conditions. After taking office, the BNP government cancelled the previous programme and applied for a new loan package after accepting those conditions.

In his email, the IMF mission chief also referred to recommendations made in the latest Article IV Consultation report, which called for stronger revenue mobilisation, rationalisation of subsidies, accelerated banking sector reforms and a more market-based exchange rate regime.

The letter said the mission will examine how the current government plans to implement those recommendations, making the issue one of the central topics of the visit.

Krznar also wrote that the IMF primarily wants to listen to the government's views. The delegation will seek to understand the government's policy priorities, reform plans and responses to recent global and regional economic developments.

A senior finance division official, speaking on condition of anonymity, told The Business Standard that the government will highlight progress on adopting a market-based exchange rate, modernising monetary policy, implementing the Bank Resolution and Deposit Protection Act, introducing risk-based supervision and advancing climate-related reforms.

Several finance ministry officials said that if the mission's assessment is positive, formal negotiations on a new lending programme could begin after the IMF and World Bank Annual Meetings in Thailand in October. The government is seeking between $4 billion and $4.5 billion under the new programme.

A finance division official said, "If the IMF concludes that the government's reform agenda is realistic, its economic policy direction is credible and the foundation for a new programme has been established, it may send a negotiation mission to Bangladesh after the IMF-World Bank Annual Meetings in October. Formal discussions would then begin on the size of the new lending programme, reform conditions and the disbursement schedule."

The government should craft a single, comprehensive strategy covering every sector of the creative economy, from film and theatre to crafts and publishing, according to industry insiders.

Building a supportive policy ecosystem and setting clear result benchmarks are central to unlocking the sector’s potential nationally, they said at a virtual event organised by the Power and Participation Research Centre (PPRC) today.

The national budget for FY2026-27 has, for the first time, set aside Tk 800 crore for the creative economy -- Tk 300 crore in direct allocation and a further Tk 500 crore through Bangladesh Bank’s CSR fund.

The initiative aims to lift the sector's GDP contribution, create jobs for nearly five lakh people, and build a "Created in Bangladesh" brand spanning film, music, publishing, digital content, and design.

Redoan Rony, film director, producer, and CEO of streaming platform Chorki, said the country needs “a core strategy across all sectors, not just film or theatre, but crafts as well.”

He believes that Bangladesh has many talented people, but they need better skills development and training based on successful international models “We have a large workforce and low labour costs, from film to every other area. We can do this.”

Tanim Noor, film director and producer, said a dedicated taxation policy, such as a 50 percent tax exemption for the film industry, could significantly boost investment in Bangladeshi cinema.

He noted that nearly 200,000 people were directly employed in the industry during its golden era in the 1970s and '80s, counting cinema halls and related sub-sectors. Today, combining OTT platforms, cinema halls, and technologies like post-production and VFX, the sector could employ up to 10 lakh people.

The market size of this sector could be expanded to Tk 5,000 to Tk 10,000 crore, he said, adding that this would generate Tk 500 to Tk 1,000 crore in annual government revenue.

Luva Nahid Choudhury, director general of Bengal Foundation, called structural reforms and a central commission essential for the sector's sustainable development, along with legal enforcement of artists' intellectual property rights and royalties.

She noted that Indian artists have a right to non-transferable remuneration, while Bangladesh lacks proper copyright enforcement.

Mahrukh Mohiuddin, managing director of publishing company University Press Limited, said piracy, both traditional and digital, particularly the illegal spread of books online, has taken on epidemic proportions, breaking the backbone of publishers.

She blamed the country's “weak” copyright law and lack of proper enforcement for the rise in the illegal activity.

Bakar Bokul, playwright and creative director of theatre troupe Tarua, said governments have historically used the arts as a "propaganda machine," implementing their own agendas under the guise of cultural activism while genuine artists go unsupported, leaving theatre and other art forms trapped in this cycle.

Tauhid Bin Abdus Salam, managing director of Classical Handmade Products BD Limited, said expanding handicrafts into international markets requires blending traditional skills with designs and colours that meet global demand.

Hossain Zillur Rahman, executive chairman of PPRC, said Bangladesh's creative economy now needs a policy ecosystem to match its potential.

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

The country's premier bourse orchestrated a robust rally last week as the benchmark index successfully reclaimed the psychological threshold of 5,800 points, marking its highest level in nearly two years.

Buoyed by high-level political commitments toward capital market development and the prospect of significant regulatory easing, an aggressive buying spree by investors added approximately Tk6,000 crore to the total market capitalisation of the Dhaka Stock Exchange (DSE), said market participants.

The DSEX, the broad index of the Dhaka bourse, gained 60 points or 1.04% over the five trading sessions to settle at 5,804. This is the first time the index has closed above this level since September 2024.The blue-chip segment also mirrored this upbeat sentiment, with the DS30 index – comprising fundamentally strong companies – advancing by 15 points to settle at 2,177.The week's trading reflected a dominant bullish sentiment, as 251 issues managed to post gains against 122 that declined, while 15 remained unchanged.The primary catalyst for this sustained upward momentum was a dual dose of optimism from the highest levels of government and the regulator. Investor conviction was significantly restored after Prime Minister Tarique Rahman unveiled a comprehensive 17-point capital market reform agenda in parliament. Market participants perceived this move as a definitive signal that the government is prioritising the stability and growth of the financial sector, according to the market insiders.

Simultaneously, sentiment was further bolstered by reports that the newly appointed Chairman of the Bangladesh Securities and Exchange Commission (BSEC), Masud Khan, plans to overhaul and simplify margin loan regulations within the next fortnight. Investors expect these revisions to increase the liquidity flow and make trading more accessible for retail participants.

According to the weekly market review by EBL Securities, the indices maintained a positive trajectory for most of the week, despite a brief corrective phase mid-week. While a bout of profit-taking in recently appreciated blue-chip scrips caused a slight dip in the middle of the week, the downside was effectively checked by selective buying in momentum-driven stocks. Sentiment recovered fully in the final session as investors reacted positively to the reaffirmed policy commitments, allowing the index to finish the week higher.

Sheltech Brokerage Limited noted in its weekly review that the market's performance was largely shaped by this persistent buying interest. Although selling pressure intensified during the mid-week sessions as traders moved to lock in short-term gains, the resurgence of buyers following the prime minister's announcement and the BSEC Chairman's reform roadmap enabled the benchmark index to extend its winning streak.

The brokerage observed that while geopolitical uncertainties remain a background concern, the focus has shifted firmly toward domestic structural improvements.

Market participation remained healthy throughout the week, even though the daily average turnover saw a marginal decline of 3.49%, settling at Tk1,383 crore compared to the previous week's Tk1,433 crore.

Sector-wise participation showed that the textile sector was the most active, accounting for 18.3% of the total turnover, followed by general insurance at 11.9% and pharmaceuticals at 10.1%.

In terms of returns, the travel and leisure sector emerged as the top gainer with a 12.3% surge, followed by the jute sector at 6.3% and mutual funds at 5.6%.

In the individual scrip segment, Usmania Glass led the gainers' chart with a staggering 38.7% price appreciation, followed by Emerald Oil, which jumped 36.5%, and Renwick Jajneswar, which rose by 32.6%. Other notable performers included CAPM IBBL Mutual Fund and Phoenix Finance First Mutual Fund.

On the liquidity front, Malek Spinning, Beximco Pharmaceuticals, ITC, Beximco Limited, and BRAC Bank remained the most traded stocks, indicating sustained interest in both manufacturing and high-cap banking entities.

Conversely, the losers' list was dominated by several non-bank financial institutions and textile firms. FAS Finance faced the steepest decline, shedding 14.3% of its value, followed by Intech at 13.9% and Dulamia Cotton at 9.6%.