Benapole Customs House, the country's largest land port, missed its revised revenue target by Tk4,731 crore in FY2025-26, amid lower imports, slower trade and growing concerns over alleged irregularities in customs management.The revised revenue target for the fiscal year was Tk11,290 crore. However, the actual collection stood at Tk6,559 crore, according to customs data. In FY2024-25, revenue collection was Tk7,029.38 crore.Imports through the port also declined to 1.40 million tonnes in FY2025-26 from 1.60 million tonnes a year earlier, a drop of nearly 197,000 tonnes. NBR data also show lower imports of high-duty items, including fruits, sarees and three-piece suits.While officials cite lower imports, sluggish international trade and changes in the tariff structure as reasons for the shortfall, recent allegations of weighbridge manipulation, customs evasion, undeclared imports, misuse of South Asian Free Trade Area (SAFTA) facilities and theft of goods from port sheds have raised fresh concerns.Business leaders and customs-related stakeholders claim better control of such irregularities could have positively affected revenue collection.

According to traders and importers, an organised syndicate has long been exploiting false declarations, weight manipulation and duty concessions to evade customs duties.

Data from Benapole Land Port show duty rates on SAFTA imports rose from 7% in FY2023-24 to 11% in FY2024-25 and 35% in FY2025-26. Traders allege the increase has encouraged attempts to clear high-duty goods under declarations for lower-duty items.

A recent letter signed by Benapole Customs Assistant Commissioner Atal Goswami triggered fresh scrutiny. On 14 June, two different empty-weight records were generated at the same time for the same Indian truck at a digital weighbridge. One record showed 4,880kg and the other 4,920kg.

Customs sought a written explanation from port authorities within three working days. A customs official, speaking on condition of anonymity, said the consignment contained bicycle parts and was later detained for investigation.

Several incidents between March and June have intensified concerns. On 12 March, customs uncovered the alleged theft of Indian sarees and three-pieces worth nearly Tk6 crore, imported under a declaration for baking powder. After an investigation, customs filed a case against 18 people on 10 June.

Five days later, goods worth about Tk1.5 crore were seized from Shed No. 26 after being imported under declarations for erasers and pencils.

On 25 April, customs detected weight discrepancies involving a truck carrying imported grapes. Although an investigation followed, those concerned attributed the issue to a technical fault in the weighing equipment.

On 21 June, BGB seized a truck carrying Indian sarees and cosmetics worth about Tk2.5 crore. Assistant Revenue Officer Indrajit Mukherjee was detained, while Assistant Revenue Officer Ariful Islam Chowdhury, customs sepoy Mohammad Sagar and several others faced departmental action.

On 25 June, CCTV footage captured the transfer of 40 packages from an Indian truck to a Bangladeshi truck in the chemical zone. Customs later found a discrepancy involving 2,784kg of goods.

Port authorities filed a case against 10 people, including Ansar members, private security personnel, truck drivers, helpers and customs officials. The FIR claimed that goods had been removed from within the port using counterfeit entry passes, contravening established security protocols.

Between March and June, four separate cases were filed over customs evasion, theft of goods and security breaches. A total of 54 people, including unidentified suspects, were accused. During this time, the licences of nine clearing and forwarding agents were suspended on a temporary basis.

While departmental action has been initiated against several customs officials, investigations into the majority of the high-profile incidents remain ongoing.

Benapole Import-Export Association General Secretary Ziaur Rahman said incidents of theft or duty evasion inside port sheds should be investigated impartially, including the role of those responsible for supervision. "Unless the actual culprits are identified, such irregularities will persist," he stated.

Businessman Habibur Rahman Hobi said even minor manipulation of digital weighbridges could cause the government to lose crores of taka in revenue and called for round-the-clock technology-based monitoring.

Benapole Land Port Director Shamim Hossain stated that allegations of weighbridge manipulation and other irregularities are being taken with the utmost seriousness. An inquiry committee has been formed, and action will be taken if wrongdoing is found.

Benapole Customs Commissioner Md Faizur Rahman said customs remained fully committed to preventing revenue leakage. "No one involved in weighbridge manipulation, false declarations or duty evasion will be spared," he said, adding that criminal as well as departmental action would be taken if evidence is found.

Jashore Chamber of Commerce Secretary Tanvirul Islam Sohan said repeated allegations involving weight discrepancies, recovery of high-duty goods, theft, duty evasion and administrative action had naturally raised questions about revenue management at the country's largest land port.

He called for impartial investigations, stronger technology-based monitoring and visible action against those responsible, alongside improved port facilities.

Bangladesh’s economy is expected to grow by 4.4 percent in the current fiscal year 2026-27, supported by easing global headwinds and domestic economic reforms, according to HSBC.

Lower oil prices, a stabilising outlook for US tariffs and resilient global growth should help revive Bangladesh’s export sector, the multinational lender said, while reforms undertaken at home are expected to strengthen private investment and consumption.

“Bangladesh’s economy continues to impress with its resilience,” Frederic Neumann, chief Asia economist and co-head of global investment research for Asia at HSBC, said at an economic outlook event held at Sheraton Dhaka on Tuesday.

With oil prices easing, the outlook for US tariffs stabilising, and global growth remaining robust, garment exports are expected to recover in the second half of the year, he said.

“Ongoing economic reforms are also gaining traction domestically, ultimately supporting private investment and consumption. Bangladesh is, therefore, on a steady path to recovery, with growth expected to accelerate to 4.4 percent over the coming fiscal year,” Neumann said.

The forecast comes as Bangladesh seeks to consolidate its macroeconomic recovery following two years of high inflation, pressure on foreign exchange reserves and weaker economic activity.

The pace of reforms and the strength of external demand will remain key factors shaping the country’s growth outlook.

The country recorded 4.14 percent growth in its gross domestic product in FY26, up from 3.49 percent a year earlier, according to provisional data from the Bangladesh Bureau of Statistics (BBS).

The government has set a 6.5 percent GDP growth target for the current financial year.

At the event, Finance and Planning Minister Amir Khosru Mahmud Chowdhury acknowledged that restoring confidence while maintaining macroeconomic stability would be the government’s biggest challenge in implementing the national budget amid continued global uncertainty.

He said the government was working to strengthen institutions and reduce bureaucracy to improve the business environment and support investment.

The minister also stressed the need to diversify exports beyond the ready-made garment sector.

He said improving competitiveness, removing regulatory barriers, expanding market access and creating opportunities for new industries through economic zones and private-sector investment would be crucial to broadening Bangladesh’s export base.

Priya Kini, managing director and head of banking for international markets in Asia at HSBC, said businesses needed timely economic insights to navigate an increasingly uncertain global and geopolitical environment.

Md Mahbub ur Rahman, chief executive officer of HSBC Bangladesh, said the country’s next phase of development would depend not only on higher growth but also on improving its quality and sustainability.

He said Bangladesh would need stronger risk governance, greater competitiveness and progress up the global value chain to build a more diversified and resilient economy.

The country's financial account staged a major recovery to register a surplus of $4.16 billion during the first 11 months of the fiscal 2025-26, rebounding from a deficit of $214 million in the same period of the previous fiscal year.

The balance of payments data, released by the Bangladesh Bank yesterday (8 July), indicates that a sharp turnaround in trade credit was the primary driver behind this financial account surplus.

The trade credit position – which involves short-term capital flows from deferred payments on imports – surged to a surplus of $2.90 billion during the July-May period, recovering from a deep deficit of $2.57 billion recorded during the corresponding period of FY25.

Economists see stronger external financing

Former Bangladesh Bank governor Ahsan H Mansur said the financial account should remain in a healthy surplus as the trade credit position has turned positive after remaining in deficit in the previous fiscal year.

Mustafizur Rahman, a distinguished fellow at the Centre for Policy Dialogue, said the financial account had improved significantly, reflecting stronger external financing. However, he noted that a stronger financial account also implies higher debt obligations in the future because loans received today increase future debt servicing liabilities.

He added that inflows from development partners such as the World Bank, the Asian Development Bank and the International Monetary Fund also strengthen the financial account by increasing foreign currency inflows.

Trade deficit widens on weaker exports

Despite the improvement in the financial account, the country's trade deficit widened to $23.98 billion during the first 11 months of FY26 from $19.38 billion in the corresponding period of FY25.

Exports declined by 2% during the period, while imports rose by 6.30%.

Mansur said the larger trade deficit reflected sluggish export growth, adding that higher imports are generally positive for the economy as they support production and economic growth.

Remittances support current account

The current account deficit narrowed despite the widening trade gap, supported by robust remittance inflows.

The current account deficit stood at $301 million during July-May of FY26, compared with a deficit of $778 million in the same period of FY25.

Remittance inflows during the first 11 months of FY26 totalled $32.77 billion, marking a 19.10% year-on-year increase.

Mansur said remittances had played a key role in improving the current account balance. However, he cautioned that remittance inflows weakened in June after several months of stronger performance and said sustained inflows would be important for maintaining external sector stability.

He added that a prolonged decline in remittances could indicate a resurgence of informal channels for transferring funds abroad.

Depositors of troubled banks will receive their full deposits with interest, with no "haircut" imposed, Finance Minister Amir Khosru Mahmud Chowdhury told parliament today (8 July), adding that the process would take time due to the banks' mounting losses.

He made the remarks in response to an urgent public interest notice under the Rules of Procedure during the 21st working day of the 13th parliament's second session.

Earlier, reserved women's seat MP Rehana Akter Ranu demanded strict action against those involved in banking irregularities and money laundering, including auctioning their assets to repay depositors.Khosru said the government was implementing a multi-dimensional resolution framework under the Bank Resolution Act, 2026 to address the banking sector crisis. Under the framework, five troubled banks – EXIM Bank, First Security Islami Bank, Global Islami Bank, Social Islami Bank, and Union Bank – have been merged into Islami Bank PLC, with all depositors' claims transferred to and preserved under the new entity.

He said the Deposit Protection Act, 2026 raised the protected deposit limit to Tk2 lakh from Tk1 lakh. Special forensic audits into loan irregularities and money laundering involving the five banks are underway, with asset recovery and legal action to follow based on investigation findings.

He added that Section 57 of the Bank Resolution Act allows the government to take control of the assets and income of responsible individuals and recover depositors' money through sales or auctions. The government is also working to recover laundered money abroad through international legal firms.

Ranu said corruption and money laundering in the banking sector had left millions of depositors unable to access their savings, creating a humanitarian crisis affecting medical treatment, children's education, marriages and small businesses. She opposed any "haircut" policy, saying depositors should not bear the consequences of bank owners' misconduct.

The country’s current account deficit narrowed in the first 11 months of fiscal year 2025-26, helped by record remittance inflows, although weak economic activity continued to hold back trade and investment.

During the July-May period of FY26, the current account deficit stood at $301 million, down from $778 million in the same period of the previous fiscal year, according to the latest Bangladesh Bank (BB) data.
The current account measures a country’s trade in goods and services, cross-border income flows, and current transfers such as remittances and foreign aid. It tracks the net flow of goods, services and income between a country and the rest of the world.

“Remittances played the biggest role in narrowing the current account deficit,” said Ashikur Rahman, principal economist of the Policy Research Institute of Bangladesh (PRI).

Remittance inflows reached a record $35.5 billion in FY26 as Bangladeshis staying abroad sent more money home. The inflow rose 17.3 percent year-on-year from $30.3 billion in FY25.

Ashikur said that, apart from remittances, neither exports nor imports performed particularly strongly, while investment also failed to recover during FY26.

During the July-May period of the recently concluded fiscal year, the trade deficit widened to $23.98 billion from $19.37 billion in the same period a year earlier, mainly because imports grew faster while export earnings declined, according to BB data.

Import payments reached $64.02 billion in the first 11 months of FY26, up 6.3 percent from $60.25 billion in the corresponding period of the previous fiscal year.

Export earnings, by contrast, fell 2 percent to $40.03 billion from $40.87 billion over the same period, according to the central bank data.

The PRI economist said subdued economic growth made the external sector appear stronger than it actually was.

“In reality, remittances were the only strong pillar, while almost all other indicators remained weak,” he added.

During the July-May period of FY26, the financial account, which records cross-border investment and other capital flows, returned to surplus as net financial inflows exceeded outflows. It recorded a surplus of $4.16 billion during the period, compared with a deficit of $214 million in the same period of FY25.

The financial account is a key component of the balance of payments. It records transactions involving financial assets and liabilities between residents and non-residents, including foreign direct investment, medium- and long-term loans, trade credit, net aid flows, portfolio investment and reserve assets.

The overall balance of payments also returned to surplus, reaching $4.01 billion in the first 11 months of FY26, compared with a deficit of $1.15 billion in the same period of the previous fiscal year.

The overall balance of payments (BoP) shows the net result of all transactions between a country and the rest of the world over a given period. It shows whether the country records an overall surplus or deficit after accounting for the current account, capital account, financial account, and errors and omissions.

Bangladesh's current- account deficit (CAD) narrowed sharply in the first 11 months of the fiscal year 2025-26, helped by record remittance inflows and slower import growth, according to the Bangladesh Bank data released Wednesday. Maps

The deficit narrowed to $301 million during the July-May period of FY26 from $1.23 billion in the first 10 months.

The improvement was driven largely by stronger remittance inflows and relatively contained import growth.

Expatriate Bangladeshis sent home $32.8 billion during the July-May period, up nearly 12 per cent from the July-April period of FY26 and more than 19 per cent higher than a year earlier.

Imports rose 5.9 per cent year on year to $67.7 billion in the said period, reflecting stronger domestic demand but remaining below the pace of remittance growth.

Energy imports remained broadly stable, although petroleum imports climbed 18.6 per cent to $9.0 billion during the period under review.

Exports increased more than 11 per cent from the previous months to $44.2 billion.

However, exports were still down about 2.0 per cent from a year earlier.

The current account measures a country's transactions with the rest of the world, including trade in goods and services, investment income, and transfers such as workers' remittances.

Bangladesh typically runs a current account deficit because it imports more than it exports.

The country's export-oriented manufacturing sector relies heavily on imported raw materials and intermediate goods, while consumers also depend on a wide range of imported products.

The improvement in the current account helped lift the overall balance of payments (BoP) surplus to $4.0 billion during the July-May period, compared with $3.7 billion in the first 10 months of the fiscal year.

A year earlier, the BoP recorded a $1.1 billion deficit.

The financial account posted a surplus of $4.16 billion, although it declined by about 8.0 per cent from the July-April period.

Meanwhile, the capital account surplus increased to $366 million from $325 million.

Economists said the stronger external position reflected robust remittance inflows and resilient export earnings, helping ease pressure on Bangladesh's foreign exchange reserves.

They cautioned, however, that sustaining the improvement would depend on continued export growth, stable energy prices, and a recovery in foreign direct investment.

They said there was another sign: the capital machinery import surged by both year-on-year and on a monthly basis, 11.5 per cent and 8.6 per cent, respectively.

Persistent inflation in Bangladesh is being driven largely by structural supply constraints and rising import costs, according to the latest Economic Update from the General Economics Division published today (8 July).

The report finds that inflationary pressures are no longer confined to a few sectors but have broadened across the economy, reflecting deeper underlying challenges. Headline inflation rose to 9.42% in May 2026, up from 9.04% in April, as both food and non-food components continued to climb.

Analysts at the GED point to a combination of supply-side disruptions, global price volatility, and higher energy import costs as key drivers behind the sustained inflation. These factors have intensified production and transportation expenses, which are gradually being passed on to consumers.

Food inflation, in particular, remains vulnerable to supply chain inefficiencies. While seasonal factors such as the Boro harvest provided some temporary relief in rice prices, inflation in other essential items – including vegetables, fish, and protein products – remains elevated. The report notes that inadequate storage facilities, weak logistics, and market inefficiencies continue to amplify price volatility in perishable goods.

At the same time, import-dependent inflationary pressures are becoming more pronounced. Rising global fuel prices have pushed up domestic energy and transport costs, contributing to a ripple effect across multiple sectors. Transport services and liquid fuel prices recorded sharp increases in May, reflecting the growing burden of imported inflation on the domestic economy.

Data from the Bangladesh Bureau of Statistics show that non-food inflation is also rising steadily, indicating that cost pressures are spreading beyond food into services and other consumer goods. This broad-based inflation suggests that both supply-side and cost-push factors are reinforcing each other.

The report further highlights that demand-side dynamics, while present, are not the primary drivers of current inflation trends. Instead, structural weaknesses – such as fragmented supply chains, limited market integration, and dependence on imported energy – are playing a dominant role.

Economists warn that without targeted reforms, inflation may remain sticky in the coming months. Suggested measures include improving agricultural supply chains, investing in cold storage and transport infrastructure, and reducing import dependency in key sectors where feasible.

The GED emphasises that addressing these structural issues is critical to restoring price stability. Otherwise, prolonged inflation could continue to erode purchasing power and complicate macroeconomic management in the near term.

Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood yesterday said the government cannot cancel contracts with private power producers at will because they are backed by sovereign guarantees, making the process legally complex and time-consuming.

“The previous fascist government handed over several power plants to private companies,” he said while responding to a supplementary question from reserved-seat member of parliament Mardia Mumtaz during the question hour in parliament.

“In those agreements, sovereign guarantees were provided, meaning the state itself guaranteed the contracts. Cancelling such guarantees is a lengthy process. We are negotiating with the companies on several issues, particularly late payment fees, which we are refusing to pay. Hopefully, these discussions will be fruitful,” he said.

Mahmood said power plants already in operation could not be managed through ad hoc arrangements.

“As long as the contracts remain valid, we will work to reduce costs and ensure electricity is supplied at affordable rates,” he added.

Replying to a question from Mostafizur Rahman, a member of parliament from the Jamalpur-3 constituency, the minister said no quick rental power plants are currently operational, and there are no active contracts with such facilities.

However, he said the contracts of two rental power plants were renewed after expiry on a “no electricity, no payment” basis, and the plants remain in operation. Since no quick rental plants are operating, the government is not paying any capacity charges for them.

Responding to a question from Mohammad Kamal Hossain, the Dhaka-3 constituency MP, Mahmood said the country currently supplies around 2,700 million cubic feet of gas a day against a demand of about 3,800 million cubic feet.

The shortfall has left Dhaka and other parts of the country receiving significantly less gas than required, disrupting supply, he said.

Answering a question from Golam Rasool, the Jessore-4 constituency MP, the minister said transmission loss stood at 3.04 percent and distribution loss at 7.38 percent in fiscal year 2024-25 (FY25). Up to April of FY26, transmission loss was 3.27 percent, while distribution loss declined to 6.29 percent.

Replying to a question, Mahmood said international fuel prices had started to decline following the end of the Iran-Israel-US conflict.

However, he said prices remain above the break-even level, leaving the Bangladesh Petroleum Corporation to incur daily losses of Tk 78 crore on diesel, octane and petrol sales.

He said the BPC incurred total losses of Tk 18,699 crore between March and June 23.

“If international prices fall further to a sustainable level, the government will consider reducing domestic fuel prices to ease public hardship,” he said.

In response to another question, Iqbal Hassan said two committees formed to review power purchase agreements signed under the Electricity and Energy Supply Enhancement (Special Provisions) Act, 2010, had submitted separate reports, and the government was taking necessary steps based on their recommendations.

The US dollar was steady at around its highest level in roughly a week on Wednesday.

This came after US President Donald Trump said an interim memorandum of understanding signed with Iran to end their conflict was “over”.

Meanwhile, New Zealand’s currency jumped after the country’s central bank lifted interest rates.

The US dollar index, which measures its strength against a basket of six currencies, was little changed on the day at 101.17.

It was last hovering around its highest since July 2, in a somewhat choppy session for the safe-haven currency.

“The USD has reacted, but the market has learnt to take Trump’s comments with a pinch of salt,” said Jane Foley, head of FX strategy at Rabobank.

“The remarks may be meant to bring the opposition to the table. Nevertheless, they will raise anxiety levels another notch,” Foley added.

Brent crude was last up 6.24 percent at $78.82 a barrel, extending a rally into a second day. Trump’s comments come after Iran’s Revolutionary Guards on Wednesday said they attacked US military sites in Bahrain and Kuwait.

This followed a wave of US airstrikes against Iran in response to attacks on tankers in the Strait of Hormuz.

Meanwhile, the kiwi dollar was last 0.26 percent higher at $0.5691, having pared earlier gains.

This occurred after the Reserve Bank of New Zealand hiked rates by 25 basis points to 2.5 percent to curb inflation pressures, as most economists had expected.

The central bank said “some further reduction in monetary stimulus is likely to be required” to control inflation.

“A key argument for the hike is a concern that financial conditions would have eased further if the OCR was left unchanged,” Westpac analysts wrote, referring to the official cash rate.

Later in the day, traders will be watching out for minutes from the Federal Reserve’s June meeting.

The Dhaka Stock Exchange has downgraded Intech Limited to the "Z" category - commonly known as the junk stock segment - following a regulatory directive after the company's accumulated losses wiped out its entire paid-up capital.

The regulatory move, effective from today (8 July), follows a mandatory policy by the Bangladesh Securities and Exchange Commission requiring companies with negative retained earnings exceeding their total paid-up capital to be shifted to the lowest trading tier.

The announcement triggered an immediate sell-off, causing Intech's share price to hit the lower circuit breaker, plunging 9.77% to close at Tk31.40. Under the BSEC (Margin) Rules 2025, stockbrokers and merchant bankers are now strictly prohibited from providing margin loan facilities to investors for purchasing Intech securities.

Capital erosion deepens financial distress

According to the company's unaudited financial statements for the first nine months of the fiscal 2025-26, Intech reported negative retained earnings of Tk33.58 crore during the July-March period, exceeding its paid-up capital of Tk31.32 crore.

The capital erosion pushed the company's net asset value (NAV) per share into negative territory at negative Tk0.72.

Its operating performance also deteriorated during the period. Revenue declined by 12% to Tk0.55 crore, while the company posted a net loss of Tk0.87 crore.

Years of weak performance

The downgrade marks the latest setback for the company following several years of financial difficulties.

Intech has reported recurring losses since 2020, including losses of Tk2.32 crore in FY23 and Tk1.18 crore in FY25. Although it returned to a modest profit of Tk0.50 crore in FY24 and declared a 0.20% cash dividend, the recovery proved short-lived.

In its audit report for FY25, the company's statutory auditor expressed "substantial doubt" about Intech's ability to continue as a going concern, citing negative shareholders' equity of Tk1.39 crore as evidence of severe financial weakness.

Management cites legacy issues

Listed on the stock exchanges in 2002, Intech restructured its board in November 2021 to include individuals associated with major business groups, including S Alam Group and KDS Group.

Responding to the auditor's observations, the current management said the company's financial problems stemmed from "fabricated and overstated assets" inherited from the administration before 2020.

The company said it had requested the BSEC to appoint a special audit to determine the full extent of the alleged irregularities and had restated its historical financial statements. It also said directors had been providing interest-free loans to support the business while pursuing new projects and operational improvements aimed at restoring profitability.

The benchmark index of the Dhaka Stock Exchange (DSE) extended its correction for a second consecutive session today (8 July) as investors continued to book profits in blue-chip stocks following their recent gains.

While selective buying interest in low-cap and momentum-driven stocks provided some support, it was insufficient to offset the selling pressure in heavyweight counters, leaving the market in negative territory at the close of the day, according to market insiders.

The broad DSEX index shed 11 points, or 0.19%, to settle the session at 5,770. The downturn was also evident in the blue-chip segment, where the DS30 index slipped by 12 points to finish at 2,169.

Market breadth remained skewed toward the bears, as 192 issues declined compared to 145 that managed to advance, while 56 scrips remained unchanged on the DSE floor.

According to the daily market review by EBL Securities, the indices opened under pressure as profit-taking weighed on investor sentiment from the outset. Although buying interest picked up in the second half of the session, largely driven by demand for attractively valued small-cap stocks, persistent selling in heavyweight constituents kept the benchmark index in the red.

The market's volatility underscores investors' cautious approach as they assess whether the recent rally can be sustained.

Market participation saw a notable contraction, with daily turnover on the DSE dropping by 17% to stand at Tk1,156 crore, compared to the previous session's volume.

On the sectoral front, the textile sector dominated trading activity, accounting for 21% of the day's total turnover. This was followed by general insurance at 9.6% and the engineering sector at 8.8%.

In terms of sectoral returns, the travel and leisure sector emerged as the top performer with a 2.8% gain, followed by information technology and textiles.

On the flip side, the financial institutions sector faced the steepest correction of 1.3%, while the cement and banking sectors also recorded notable price dips, acting as the primary drags on the index.

Individual stock performance was highlighted by Sea Pearl Beach Resort, which topped the gainers' list with a 10% price surge. Other significant gainers included Genex Infosys, Emerald Oil, and Sharp Industries.

On the losing end, Intech Limited hit the lower circuit breaker, shedding 9.77% of its value, while Fareast Finance and Familytex also featured among the top losers.

In terms of liquidity, Malek Spinning emerged as the most traded stock, followed by BRAC Bank, Sea Pearl Beach Resort, and IPDC Finance.

The bearish sentiment was mirrored at the Chittagong Stock Exchange (CSE), where the Selective Categories' Index (CSCX) fell by 33 points to finish at 9,481. The broad CASPI index at the port city bourse ended 47 points lower at 15,485.

Turnover at the CSE also witnessed a decline of 13%, settling at Tk26.89 crore.

Oil ​prices jumped more than 6% today (8 July), hitting a two-week high after US President Donald Trump said ‌ the memorandum of understanding to end the conflict with Iran was "over", renewing fears of disruptions to Middle East oil supplies.

Brent crude futures were up $4.57, or 6.16%, to $78.73 a barrel at 0948 GMT, while US West Texas Intermediate crude climbed $4.23, or 6.01%, to $74.67 a barrel. The benchmarks ​are at their highest levels since 22 June.

Both rose about 3% yesterday after the US revoked the general ​licence authorising the sale of Iranian crude.

Trump said today that the memorandum of understanding signed with ⁠Iran to end the conflict was "over", adding he didn't want to engage with Tehran.

The agreement, brokered by Pakistan last month ​to provide a 60-day window for negotiations, came under strain after the US launched fresh strikes on Iran.

"The market is again ​being forced to price the risk that renewed attacks on shipping, or a broader breakdown in US-Iran relations, could slow the normalisation of flows through the Strait of Hormuz," Saxo Bank analyst Ole Hansen said.

The US airstrikes were in response to Iranian attacks on three commercial vessels that were ​transiting the Strait of Hormuz, US Central Command said on yesterday. Iran's Revolutionary Guards then said they targeted US military ​sites in Bahrain and Kuwait early on today.

The attacks renewed concerns about tanker traffic through the Strait of Hormuz, which carried about ‌one-fifth of ⁠global energy supply before the war began in late February.

Supply fears resurface

"Trump's assertion that the MOU is over raises the prospect of a re-closing of the Strait as an escalatory cycle begins again," Sauk Kavoniv, head of research at MST Marquee, said.

At least four oil and gas tankers have turned back from attempting to transit the strait, ship-tracking data showed, as renewed ​attacks on vessels heightened safety concerns.

"(The) ​underlying supply challenge has ⁠not disappeared, but the latest escalation has interrupted it," Hansen added.

After the US and Iran signed their truce last month, oil prices tumbled to pre-war levels and traders amassed large short positions in ​oil futures, betting prices would fall further.

Since the start of the conflict, nations have drawn ​down their inventories ⁠to make up for the supply shortfall.

"In my view, a price closer to $80 a barrel is more consistent with current market fundamentals than $70," said Bjarne Schieldrop, chief commodities analyst at SEB.

Meanwhile, China has lifted refined fuel export restrictions for the rest of July and ⁠allowed a ​private refiner to resume shipments after a four-month halt, trade sources said ​today, as the world's biggest refiner returns towards normal after disruptions from the Iran war.

The government will adopt a comprehensive roadmap this month to transform Bangladesh's leather industry into a more competitive and environmentally sustainable sector in the global market, Industries Minister Khandakar Abdul Muktadir told parliament today (8 July).

"The roadmap will help raise annual leather export earnings to $10-12 billion by improving environmental compliance, waste management, and global standards," he said while replying to a question from Sirajganj-4 lawmaker Rafiqul Islam Khan.

He also said the government has been taking technological and administrative measures as well.

As part of the initiative, an Italian firm, Italprogetti, has completed a technical assessment of the Central Effluent Treatment Plant (CETP) at Savar BSCIC Leather Industrial City, he added.

"Based on the assessment, the CETP's treatment capacity will be urgently increased to 25,000 cubic metres. We also plan to prepare designs to gradually raise the capacity to 40,000 cubic metres and eventually to 50,000 cubic metres to meet future demand," he mentioned.

The minister said six tanneries have been allowed to set up their own effluent treatment plants (ETPs) to reduce pressure on the central treatment facility. Two of them are already operational, while another 20-25 large tanneries have been encouraged to install their own ETPs.

Highlighting the government's efforts to turn waste management into a value-added industry, Muktadir said production of industrial-grade protein powder from chrome shaving dust has already started.

He further said that initiatives are also underway to produce tallow and organic fertiliser from fleshing waste and gelatin from raw cutting waste for export.

Consumer lending in the country's banking sector continued its upward trajectory in the January-March quarter of FY26, with outstanding loans surpassing Tk 1.58 trillion despite elevated lending rates and persistent inflation.

The steady increase indicates that households are increasingly relying on bank financing to meet housing, education, healthcare and other personal expenses as rising living costs continue to strain purchasing power.

According to the latest Bangladesh Bank (BB) data, outstanding consumer loans climbed to more than Tk 1.58 trillion during the January-March quarter, up from Tk 1.51 trillion in the October-December quarter and Tk 1.50 trillion in the July-September quarter of FY26.Maps

The figure was also higher than Tk 1.47 trillion recorded in the same quarter of FY25. The quarter-on-quarter growth was driven mainly by higher borrowing for housing, salary-backed loans, credit cards, land purchases and other personal financing.

Loans for purchasing flats and apartments increased to Tk 320 billion in the January-March quarter from Tk 310.85 billion in the previous quarter, while outstanding salary-backed loans rose to Tk 232.35 billion from Tk 225.95 billion.

Credit card loans climbed to Tk 135.19 billion from Tk 131.03 billion, while loans for land purchases increased to Tk 71.81 billion from Tk 69.36 billion. Financing for motor vehicles and motorcycles also rose to Tk 63.74 billion from Tk 60.85 billion.

One of the sharpest increases was recorded in personal loans secured against fixed deposits and other savings instruments, which jumped to Tk 276.25 billion from Tk 225.91 billion.

Doctors' and professional loans edged up to Tk 10.63 billion from Tk 10.38 billion, while loans against provident funds rose to Tk 18.87 billion from Tk 17.50 billion. Other personal loans also increased to Tk 30.66 billion from Tk 29.90 billion.Credit & Lending.

However, financing for household appliances, including televisions, refrigerators and computers, declined slightly to Tk 345.35 billion from Tk 346.62 billion.

Bankers said consumer loans are increasingly being used to finance essential spending rather than discretionary purchases, as many households seek credit to cover education, healthcare, marriage, travel and other day-to-day expenses amid persistent inflation and erosion of purchasing power.

They also noted that banks have expanded their consumer lending portfolios as demand remains resilient despite relatively high lending rates.

Arif Hossain Khan, spokesperson for Bangladesh Bank, said rising consumer demand for small-ticket financing, coupled with aggressive promotional campaigns by banks, has contributed to the continued growth in consumer lending.

"Banks have faced challenges in expanding corporate lending amid weak private-sector investment and rising credit risks. As a result, many lenders are increasingly focusing on consumer finance, which offers relatively quicker loan disbursement and diversification of their credit portfolio," he said.

Syed Mahbubur Rahman, managing director and CEO of Mutual Trust Bank PLC, said rising living costs and persistent inflation were prompting more people to rely on consumer loans to meet everyday expenses.

Banks are also diversifying their loan portfolios by expanding consumer lending as private-sector credit growth had remained below 5.0 per cent amid weak demand for business loans, Rahman said, adding that at the same time, lenders have stepped up promotional activities to attract retail borrowers.Business & Corporate Law

Mutual Trust Bank alone disbursed around Tk 1.0 billion in consumer loans over the past three months, reflecting growing demand for such financing, he added.

Economists, however, warned that while consumer credit can provide short-term financial relief to households, excessive reliance on borrowing could increase debt burdens and financial vulnerability over time.

They also cautioned that if a growing share of bank lending continues to flow into consumption rather than productive sectors, it could undermine private investment, employment generation and long-term economic growth.

Dr Masrur Reaz, chairman of Policy Exchange Bangladesh, said the continued growth in consumer lending suggests many households are increasingly relying on bank borrowing to cope with rising living costs rather than finance discretionary spending.

"Inflation has eroded purchasing power, prompting consumers to borrow for essential expenses such as education, healthcare and housing," he said.

While consumer credit can support domestic demand in the short term, excessive dependence on such borrowing could increase household debt and financial vulnerability if income growth fails to keep pace, he added. Economic Revival Strategies

Dr Reaz said banks should ensure credit expansion remains balanced by directing a larger share of lending to productive sectors to stimulate private investment, create jobs and sustain long-term economic growth.

Otherwise, an economy driven mainly by consumption-led credit may not be sustainable, he added.

He suggested that lenders should strengthen their credit assessment and risk management, warning that high interest rates and weak economic conditions could affect borrowers' repayment capacity in the coming months.

Appliance maker Singer Bangladesh's revenue was Tk670 crore in 2012, yielding a net profit of Tk49 crore. Thirteen years later, although its revenue surged to Tk2,133 crore, the company plunged into a staggering net loss of Tk225 crore. The downward course has continued into this year.

This raises a critical question: How did a former market giant dive so deep into the red, failing to pay a dividend from its 2025 earnings for the first time in its history? As the accumulated losses exceeded its capital, the Dhaka Stock Exchange (DSE) downgraded the company's shares to the junk "Z" category.

An analysis of the company's financial reports by The Business Standard reveals that Singer Bangladesh has been crippled by escalating borrowing costs that completely wiped out operational profits gained from higher sales.

The company, majority-owned by Turkish conglomerate Arcelik, and listed on the DSE, reported a net loss after tax of Tk225 crore for 2025, widening significantly from a loss of less than Tk50 crore a year ago.

Earnings per share dropped further into negative territory to Tk22.56 from negative Tk4.91 in 2024.

The losses came despite a 14.3% increase in full-year revenue to Tk2,133 crore, driven by the transition to production at its new manufacturing facility. Gross profit also rose to Tk516 crore, up from Tk471 crore a year earlier.

However, an intense financing burden crippled the company's bottom line, according to the annual report. Finance costs skyrocketed to Tk322 crore in 2025 from Tk143 crore the previous year, far more than the company's modest operating profit of Tk55 crore.

According to the company's annual report, Singer's reliance on short-term debt to fund its capital investment and operations triggered the liquidity strain. The company's secured short-term borrowings, including bank overdrafts, soared to Tk1,394 crore from Tk1,191 crore a year ago.

Singer utilised credit facilities from a consortium of commercial banks. Its short-term borrowings included Tk305 crore from Commercial Bank of Ceylon, Tk249 crore from Pubali Bank, including a Tk99 crore overdraft, Tk177 crore from Dutch-Bangla Bank and Tk100 crore from Prime Bank.

Direct interest payments on borrowings and leases swallowed up Tk264 crore in cash outflows during the year. Consequently, Singer's closing cash and cash equivalents position sat deep in negative territory at Tk1,328 crore, offset by bank overdrafts.

Net operating cash flow per share did provide a silver lining, recovering to a positive Tk14.56 per share from a negative Tk7.96 in the previous year on the back of stronger turnover collection.

The company's board did not immediately outline a restructuring plan for its short-term debt portfolio to combat high local interest rates, the company said in its annual report for 2025.

The report also said despite revenue growth in 2025, profitability remained under significant pressure. Elevated inflation and higher input costs limited gross profit growth to 4%, reaching nearly Tk516 crore.

Consequently, gross margin contracted from 27% to 24%, reflecting the company's constrained ability to fully pass on cost increases to consumers in a competitive market.

"Nevertheless, the gross margin remains broadly competitive within the industry, underscoring underlying pricing resilience," says the annual report.

On the dividend, the report said that due to the net loss experienced during the year and the increased leverage resulting from capital expenditures, the board has decided not to propose a dividend for 2025.

On the outlook, Singer Bangladesh said that despite near-term headwinds, it remains focused on long-term growth. The commissioning of its new manufacturing facility is expected to lower costs, increase localisation and improve product quality, while strengthening its product portfolio to better serve Bangladesh's growing middle-income consumers with rising purchasing power.

The Business Standard sought comments from Kazi Ashiqur Rahman, company secretary of Singer Bangladesh, but he neither responded to text messages nor answered repeated telephone calls.

Industry insiders say Singer Bangladesh's turnaround is being hampered by fierce competition from local manufacturers, particularly Walton and Pran-RFL.

According to a Walton official, the company now holds around 70% of the domestic refrigerator market, a segment in which Singer was once a dominant player. At the same time, Pran-RFL has been steadily expanding its presence in the home appliances market through an aggressive rollout of new retail outlets.

What Singer's Q1 financials reveal

Singer Bangladesh's total turnover edged up to Tk578 crore in the first quarter of 2026 from Tk559 crore a year earlier, according to its quarterly financial statement filed with the Dhaka Stock Exchange.

The growth was driven entirely by exports. While domestic revenue slipped marginally to Tk555 crore from Tk558 crore, export earnings reached Tk21.7 crore, compared with virtually nil in the corresponding period of 2025.

Despite the higher turnover, operating profit fell to Tk15.8 crore from Tk17.3 crore, as operating expenses rose to Tk127 crore from Tk119 crore.

The biggest drag, however, came from financing costs. Net finance costs surged nearly 60% year-on-year to Tk67 crore from Tk47 crore, while total finance expenses exceeded Tk72 crore due to the company's substantial borrowing requirements.

As a result, Singer's net loss widened to nearly Tk56 crore in the January-March quarter, compared with Tk35 crore a year earlier. Its loss per share also deepened to Tk5.60, from Tk3.50 in the same period last year.

The weak earnings further dented investor confidence. Yesterday, after the company disclosed its quarterly results, there were virtually no buyers for Singer shares on the DSE, reflecting bearish sentiment over its deteriorating financial performance.

The AI boom has helped drive investments in intangible assets such as software, data and research to a record high in 2025, the United Nations’ patent and innovation agency said Wednesday.

These investments, which encompass research and development, software and data, brands, design and organisational know-how, represent a large and growing share of the global economy, the World Intellectual Property Organization said.

Across the 29 economies studied, which account for 57 percent of global GDP, intangible investment “reached an all-time high” of over $10 trillion in 2025, according to WIPO.

The study included the United States, EU nations, Britain, Japan, India as well as other countries. However, China, the world’s second-largest economy, was not among the nations covered.

The record figure was detailed in the World Intangible Investment Highlights 2026, which WIPO co-published with the Rome-headquartered Luiss Business School.

Since 2008, intangible investment has grown by 3.5 percent annually in real terms; way ahead of tangible investments, which saw annual growth of just 0.98 percent over the same period, the study said.

“These figures point to a durable structural shift in the composition of investment, with intangible assets playing a growing role in value creation,” WIPO said.

The United States accounts for the largest share of intangible investment by far, reaching nearly $5 trillion in 2025.

This was around six times the level in second-placed Japan, with Germany third.

Sweden retains its position as the most intangible-intensive economy, reaching 17.4 percent of GDP in 2025, followed by the United States at 15.6 percent and France at 15.2 percent.

Meanwhile India, Japan and the Philippines recorded the fastest growth, said WIPO.

The report said intangible investments proved more resilient than tangible ones in the face of high interest rates, trade tensions and the economic slowdown seen in recent years.

Between 2020 and 2025, they grew by 5.5 percent annually in real terms, compared to 3.2 percent for tangible investments.

The report said artificial intelligence was playing a major role in the transformation.

While it initially drives physical investments in data centres, semiconductors and energy infrastructure, WIPO estimates that its lasting impact stems primarily from investments in software, data, research and development, and corporate reorganisation.

Investment in software and databases recorded the highest aggregate real growth rate across all intangible asset categories between 2013 and 2023, at 7.3 percent annually, ahead of organisational capital (4.9 percent) and brands (4.4 percent).

The report also highlights the economic importance of brands, with investments across the 29 economies reaching $1.4 trillion in 2025.

The US leads global brand investment by a wide margin, exceeding $566 billion in 2025 -- more than four times the figure for Britain, in second place on $137 billion, followed by Japan on $112 billion.

Established in 1967, Geneva-based WIPO helps creators and entrepreneurs protect their intellectual property across borders.

The Indian rupee eked out gains on Tuesday, tracking an uptick in most Asian peers even as dollar demand from merchant payments and maturing non-deliverable forward contracts limited room for the currency to gain.

The rupee traded at 95.28 against the dollar as of 11:25 am IST, up 0.1 percent from its previous close.

The RBI’s daily reference rate, called the daily fix, was last quoted at a premium of around 0.45/0.55 paisa, signalling elevated dollar demand. The fix usually attracts concentrated dollar buying or selling related to maturing contracts.

“Despite the central bank’s interventions and measures to boost flows, (the) rupee is struggling to cling to gains, which points to the scale of underlying USD demand,” a trader at a foreign bank said.

Analysts and traders are keeping a close eye on the scale of inflows mustered by recent policy measures such as removing tax on foreign investment in debt and offering foreign currency deposits with high interest rates. Goldman Sachs anticipates about $60 billion of inflows over the remainder of 2026.

In the near-term though, FX advisory firm Mecklai says that the dollar-rupee pair is trading with a “neutral to bullish” bias and is expected to encounter resistance in the 95.50-95.80 zone, while support is pegged in the 94.0-93.90 band.

Elsewhere, Asian currencies were mostly trading firmer, while regional stocks fell. Indian equities bucked the trend with the Nifty 50 index up 0.4 percent.

Investors are now looking ahead to the release of the minutes of the US Federal Reserve’s June meeting, due Wednesday. Traders are currently pricing in about 30 bps of rate hikes in the rest of 2026.

Closer public-private collaboration is essential to make healthcare affordable for all, the finance minister said yesterday, noting that Bangladesh has one of the highest rates of out-of-pocket healthcare spending in the world.

The country also needs a stronger focus on entrepreneurship to ensure the sustainable transformation of its healthcare sector, Amir Khosru Mahmud Chowdhury said at an event on health entrepreneurship at Amari Dhaka.

According to the Bangladesh National Health Accounts 1997-2020, nearly 69 percent of total health expenditure is paid directly by households out of their own pockets.

The minister said increasing budget allocations alone would not fix the problem, and that the priority was optimal use of existing resources, with joint public-private discussions serving as a roadmap for the future.

Bangladesh already has skilled entrepreneurs, diagnostic centers, private hospitals and a strong pharmaceutical industry, Khosru said.

This year’s budget allocates substantial support for the pharmaceutical sector’s Active Pharmaceutical Ingredients (API) industry, including a dedicated API zone.

The key question, however, the minister said is how to integrate that capacity into the mainstream healthcare system.

Stating that healthcare a fundamental right for all, Khosru said the government is placing greater emphasis on primary and preventive care, with plans to deploy about 100,000 health workers to raise awareness at the grassroots level.

Rather than build additional public healthcare infrastructure, he said, the government has made a policy decision to utilise private sector capacity and expertise instead.

The current budget also offers significant incentives for domestic and foreign entrepreneurs to invest in manufacturing healthcare equipment in Bangladesh, an initiative that has already drawn a strong response, he said.

The finance minister said the people of Bangladesh have the potential to become among the world’s finest entrepreneurs if given the right opportunities and policy framework.

He said the current government’s political philosophy is centered on private sector-led growth, with the country’s leadership viewing the private sector as the driving force of economic development.

He expressed optimism that visionary leadership, supportive policymaking and the hard work of Bangladesh’s entrepreneurs would make a transformative contribution to the healthcare sector and bring quality care to people’s doorsteps.

The event was attended by Zubaida Rahman, Vice President of the Ziaur Rahman Foundation, as the chief guest. Special guests included the finance minister, Health Minister Sardar Md Sakhawat Husain and the PM’s Special Assistant on Health Affairs Dr SM Ziauddin Haider.

German industrial production ticked up more than expected in May, official data showed Tuesday, as Europe’s top economy defied the worst following the virtual closure of the Strait of Hormuz.

Factory production rose 0.9 percent on the month, statistics office Destatis said, beating expectations in a FactSet poll of analysts who had expected a rise of 0.3 percent.

The automotive industry led the way with production volumes up 3.6 percent, Destatis said, while production of industrial machinery also rose 1.3 percent.

“Despite the war in the Middle East and soaring energy prices, industrial production is proving resilient,” ING analyst Carsten Brzeski said.

“Some industries or companies actually seem to have benefited from the war in the Middle East, as Asian competitors were hit harder by the closure of the Strait of Hormuz.”

The Strait of Hormuz was at the centre of tensions during the Middle East war, when Iran blockaded the waterway and a number of commercial vessels came under attack, sending global energy prices sharply higher.

The United States responded with its own naval blockade and later launched retaliatory strikes against Iran after accusing Tehran of targeting commercial shipping.

Maritime traffic resumed after Washington and Tehran signed a memorandum of understanding last month aimed at ending the conflict and reopening the strategic route.

A less volatile comparison by Destatis over the past three months showed production rising just 0.1 percent, and production in May was flat versus the same month last year.

Germany’s economy has barely grown since a burst of pent-up pandemic demand at the end of 2022, hit by high energy prices and increasingly fierce Chinese competition in key export markets.

Overall production volumes in May were eight percent below the monthly average for 2021, according to Destatis data.

The government has approved a $1,004 million loan from the Islamic Development Bank (IsDB) to finance the construction of the second unit of Eastern Refinery Limited (ERL), with officials describing the financing as being on highly non-concessional terms.

The approval for the approximately $1 billion loan was granted yesterday by the Standing Committee on Non-Concessional Loan (SCNCL) at a meeting chaired by Finance Minister Amir Khosru Mahmud Chowdhury at his office in Sher-e-Bangla Nagar.

Officials at the Economic Relations Division (ERD) said the refinery expansion remains a commercially viable and strategically important project for Bangladesh's long-term energy security, despite the relatively expensive financing.
According to documents presented at the meeting, the IsDB financing consists of two packages. Under "Forward Lease 1", the bank will provide $520.59 million, while "Forward Lease 2" will provide $483.10 million. A $0.6 million technical assistance grant will also be provided under the first package.As per an ERD working paper, the loan carries a relatively high financing cost compared with prevailing rates in the international market.

Based on the six-month Term Secured Overnight Financing Rate (SOFR) of 3.84627% as of 5 July 2026, the total mark-up rate is 5.44627%, including a 1.60% spread and risk premium. The loan has a 20-year tenure, including a five-year grace period, with repayments every six months over the remaining 15 years.

The ERD classified both financing packages as "highly non-concessional", with grant elements of minus 3.12% for Forward Lease 1 and minus 3.24% for Forward Lease 2.

Officials said the division had raised several observations before recommending approval. Because repayments will be made every six months, the SOFR benchmark, along with the applicable spread and risk premium, will change over time, meaning both the grant element and the level of concessionality will fluctuate throughout the repayment period.

The ERD also recommended that, before the government on-lends the funds to Bangladesh Petroleum Corporation (BPC) or ERL, the Finance Division should assess BPC's financial capacity to ensure the refinery can service the loan without creating an additional burden on the government.

The division also instructed that all project readiness conditions set by the ERD must be fulfilled before the loan agreement is signed. Repayments are expected to fall on 30 June and 31 December each year.

According to the ERD working paper, Eastern Refinery currently has an annual crude oil refining capacity of 1.5 million tonnes. The second unit will add another 3 million tonnes, tripling total annual refining capacity to 4.5 million tonnes and significantly reducing Bangladesh's dependence on imported refined petroleum products.

Officials said the project preparation mission was completed between 8 and 11 February 2026, followed by the appraisal mission from 8 to 12 March.

Negotiations with IsDB representatives were held on 28 April, an inter-ministerial meeting chaired by the ERD secretary took place on 14 May, and the negotiation minutes were signed on 20 May.

After the IsDB Dhaka Regional Hub sent draft loan agreements on 3 June, the proposal was placed before the 45th SCNCL meeting for approval.

ERD officials said the loan agreement could be signed in mid-August during a visit by IsDB President Dr Muhammad Sulaiman Al Jasser.

An official present at the meeting said the finance minister urged authorities to complete the project within the stipulated timeframe and expressed frustration that it had not been implemented earlier.

According to the official, the minister said an earlier expansion would have better positioned Bangladesh to cope with disruptions to global fuel supplies caused by the Iran-Israel conflict and tensions involving the United States.

Project cost revised

The modernisation and expansion of Eastern Refinery in Chattogram is now estimated to cost Tk31,000.57 crore. Of the total, the government will provide Tk18,566.74 crore, while BPC will contribute Tk12,433.83 crore from its own funds. The project is scheduled to run from January 2025 to June 2030.

The Executive Committee of the National Economic Council (Ecnec) approved the project in principle on 23 December last year at an estimated cost of Tk35,465 crore, subject to conditions. Following further scrutiny, the project cost was reduced by Tk4,465 crore.

According to the Energy Division, Eastern Refinery currently meets only around 20% of Bangladesh's petroleum demand, with the remainder met through imports at significant foreign exchange cost.

BPC officials said the new refinery will produce Euro-5 standard gasoline and diesel while upgrading diesel, motor spirit and octane from the existing refinery to Euro-5 specifications.

Officials added that BPC has already completed the "Installation of Single Point Mooring (SPM) with Double Pipeline" project, enabling the transport of up to 4.5 million tonnes of crude oil annually.

Once operational, the expanded refinery is expected to produce about 400,000 tonnes of furnace oil, 60,000 tonnes of LPG, 600,000 tonnes of Euro-5 gasoline, 1.1 million tonnes of Euro-5 diesel, 200,000 tonnes of lube base oil and 500,000 tonnes of jet fuel each year, reducing import dependence and government subsidy requirements.

Project delayed for years

Eastern Refinery, Bangladesh's only oil refinery, was established in Chattogram in 1968 by France's Technip.

Plans for a second refining unit were first announced in 2010, and the government approved a Tk13,000 crore project in 2013. However, repeated bureaucratic delays, implementation challenges and financing constraints prevented construction from beginning.

BPC revived the project in 2022 using its own financing, by which time the estimated cost had risen to Tk23,000 crore. In early 2024, S Alam Group proposed constructing ERL-2 at a cost of Tk25,000 crore, and the Energy Division approved the proposal on 9 July.

The project was later suspended following the student-led mass uprising in August that led to the fall of the Sheikh Hasina government.

After taking office, the interim government revived the project and initially sought foreign financing. At that stage, the estimated cost stood at Tk36,410 crore, including Tk25,500.77 crore in external financing and Tk10,909.32 crore from BPC.

When external funding did not materialise, the government decided to finance the project through public funds alongside BPC's contribution. The revised estimate initially rose to Tk42,973.70 crore before the Planning Commission reduced the cost following further scrutiny.

Eastern Refinery Limited was approved in 1960 and began commercial production in 1968. At the time, 35% of the company was owned by the former East Pakistan Industrial Development Corporation, another 35% by private businessmen led by former West Pakistan commerce secretary and ICS officer Abbas Khaleeli, while the remaining 30% was held by the UK's Burmah Oil Company.