The US trade deficit widened sharply in May to its largest in over a year as imports rose, government data showed Tuesday, with analysts noting that businesses could be gearing up for further tariffs.

The shift came as the world’s biggest economy grappled with fallout from war in the Middle East, while imports of tech goods linked to the country’s data center buildout remained strong.

The overall trade gap surged from the month prior by 42.2 percent to $77.6 billion, according to data from the Commerce Department. This was slightly less than a consensus forecast by Briefing.com.

In May, imports climbed by 3.3 percent to $395.3 billion, while exports dipped by 3.2 percent to $317.7 billion.

In May, imports climbed by 3.3 percent to $395.3 billion, while exports dipped by 3.2 percent to $317.7 billion
While imports of capital goods like computer accessories and semiconductors showed just a modest increase, “They are up 42 percent year-over year, thanks to ongoing demand for AI hardware,” said economist Grace Zwemmer of Oxford Economics.

She added that the latest imports uptick was broad-based and led by consumer goods, with “about half the strength attributed to pharmaceutical preparations.”

“This could be a sign that businesses are beginning to frontload pharmaceutical imports ahead of the 100 percent tariffs that are set to go into effect on July 31, although there are many exemptions embedded in the policy,” Zwemmer noted.

US trade data has been fluctuating widely over the past year as President Donald Trump imposed sweeping tariffs on various trading partners, sending businesses scrambling to avoid them.

“Imports convey solid US domestic demand,” said Nationwide financial market economist Oren Klachkin in a note.

But he added that companies’ attempts to get ahead of planned tariff hikes “likely lent a hand.”

Meanwhile, US exports of crude oil and petroleum products advanced after US-Israeli strikes on Iran from late February, which triggered Tehran’s retaliation in virtually blocking the Strait of Hormuz.

The strait is a key waterway for energy transit, sending prices soaring at the time.

While crude exports were still up in May, the partial reopening of the strait after the United States and Iran signed a memorandum of understanding helped push petroleum exports towards pre-war levels, Zwemmer said.

For now, the temporary deal saw a pause in hostilities while officials seek a longer term solution, and energy costs have cooled.

The government is planning to merge four investment promotion agencies into a single authority under a draft law aimed at simplifying investor services, reducing bureaucratic hurdles and improving coordination among state institutions.

The proposed Integrated Investment Development Authority Act, 2026 seeks to establish the Unified Investment Development Authority (UniDA).
The agency would bring the Bangladesh Investment Development Authority (Bida), Bangladesh Economic Zones Authority (Beza), Bangladesh Hi-Tech Park Authority (BHTPA) and the Public-Private Partnership Authority (PPPA) under one umbrella.The draft law, prepared by Bida, aims to boost domestic and foreign investment, support industrialisation, improve service delivery and ensure more effective use of state-owned industrial and commercial assets.

UniDA would be a statutory body with administrative and financial powers, headquartered in Dhaka, with the authority to open branch offices at home and abroad.

Ashik Chowdhury, executive chairman of Bida, said the proposal was designed to create a single point of contact for investors who now have to approach multiple agencies depending on the nature and location of their projects.

“Investors have repeatedly told us that they want to deal with a single entity instead of navigating multiple organisations for different approvals and services,” he said. “The objective is to reduce hassle for investors and make the entire process more coordinated.”

The merger would not change the services currently offered by the four agencies, Ashik said. “The difference is that the services will be coordinated through one institutional framework.”

Under the draft law, UniDA would be governed by a board chaired by the prime minister or a nominee holding ministerial rank, including key economic ministers or advisers, the Bangladesh Bank governor, heads of the constituent agencies and three private-sector representatives.

An executive council headed by an executive chairman would oversee day-to-day operations. The authority would oversee investment promotion, economic zones, hi-tech parks and public-private partnership projects.

It would formulate investment policies, approve projects, coordinate infrastructure support, monitor approved projects and help remove administrative and legal bottlenecks delaying investment.

If the law is enacted, all private industrial projects not governed by specialised authorities would require registration or approval from UniDA, as would foreign companies seeking to establish branch, liaison or representative offices in Bangladesh.

Once an investment is approved, UniDA would set binding timelines for key services, including land allocation, utility connections, customs clearance and environmental approvals.

The law would also empower the government to declare industrial areas, economic zones and hi-tech parks through gazette notifications, acquire land where necessary under the Acquisition and Requisition of Immovable Property Act, 2017, and transfer unused government-owned industrial and commercial assets for investment projects.

The proposal, however, has drawn concern from some public-private partnership specialists.

Tapas Chandra Bose, a deputy director and researcher on PPPs, said Bangladesh’s low tax-to-GDP ratio and declining access to concessional foreign financing have made PPPs increasingly important for infrastructure development.

He said the PPP Authority’s institutional independence had helped develop a project pipeline worth more than $41 billion, and warned that folding it into a broader investment authority could undermine investor confidence and weaken private-sector participation in infrastructure projects.

He called for wider consultation before the legislation is finalised.

M Masrur Reaz, chairman and CEO of Policy Exchange Bangladesh, questioned whether merging only a few agencies would substantially improve the investment climate, saying the reform overlooks deeper institutional issues.

He said Bangladesh has created multiple agencies with overlapping mandates, with investment-related regulatory services delivered by more than 50 organisations -- yet the proposed merger covers only four bodies, which have fundamentally different functions.
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He explained that Beza and BHTPA manage industrial estates, Bida is the country’s main investment promotion agency, and PPPA structures public-private partnership projects.

The priority, he said, should be cutting unnecessary licences, registrations and approvals, rather than relying on institutional mergers alone.

The draft law is in its final stage after stakeholder consultations and is expected to be sent to the Cabinet Division by the end of this month, said Nahian Rahman Rochi, executive member (investment) at Bida.

Rochi said the initiative comes as Bangladesh seeks to attract more foreign investment after several years of relatively weak FDI inflows and amid intensifying competition from regional peers.

“The objective is to create a single, integrated platform for investors without reducing the scope of services currently provided by the existing agencies,” he said.

Bangladesh is borrowing US$1.0-billion hard-term loan from the Islamic Development Bank (IsDB) for much-needed upgrading of Eastern Refinery's oil-refining capacity by 3.0 million tonnes a year, officials say.Bangladesh Politics News
The government's Standing Committee on Non-Concessional Loans, headed by Finance and Planning Minister Amir Khosru Mahmud Chowdhury, approved the borrowing of this foreign loan, recently assured by the Islamic Development Bank.

The credit facility marks one of the largest single-project financial packages ever extended by the Jeddah-based IsDB to a member-country.

The critical funding package is explicitly earmarked for the long-delayed Unit-2 expansion project of the state-owned Eastern Refinery Limited (ERL) in Chittagong, a senior Economic Relations Division (ERD) official has said.

The decision signals a tactical pivot in the country's macro-energy strategy. The government is intentionally leaning into market-based, high-cost foreign debt to finance critical infrastructure.

This happens at a time when traditional concessional financing windows from development partners are getting tightened globally.

As the loan features a grant element of less than 25 per cent, it is classified under International Monetary Fund (IMF) guidelines as non-concessional or "hard-term" loan.

Situated in the port city of Chittagong, ERL, a subsidiary of the state-owned Bangladesh Petroleum Corporation (BPC), would have its second unit with a crude-refining capacity of 3.0 million tonnes per year by investing some Tk 354.65 billion or $2.89 billion.

As per the project, the government would provide Tk 212.78 billion as loans from its internal resources while the remaining Tk 141.88 billion will come from the Eastern Refinery's internal resources.

Currently, ERL has its first unit with 1.5-million-tonne capacity for refining crude oil, mostly imported from the now-troubled Gulf region.

According to the official sources, the $1.0-billion credit will come under the IsDB's "Lease Financing" model where interest rate is charged on the Secured Overnight Financing Rate (SOFR) rate plus a 1.60-percent spread.

According to the Federal Reserve Bank of New York, the SOFR rate on a 6-month basis on Tuesday was recorded at 3.66892 per cent.

Total maturity tenure of the credit will be 20 years with a grace period of five years.

Economic Relations Division (ERD) officials say the interest rate, floating on top of the global SOFR benchmark, "exposes the treasury to international market volatility".Economics

"With global benchmarks remaining elevated, the interest burden is expected to test state coffers significantly," says one official.

Furthermore, the IsDB deal incorporates a rigid Shariah-compliant "forward lease" model.

The core objective of the capital injection is the total modernisation and capacity scaling of ERL's plant, in the wake of worldwide fuel woes amid the Middle East turmoil.

Originally built back in 1968 using French technology, ERL has long struggled to meet the nation's rapidly ballooning fuel demands.

Currently, the ancient refinery processes roughly 1.5 million tonnes of crude annually, fulfilling a meagre 20 per cent of local petroleum demand. The remaining 80 per cent must be imported as pre-refined fuel at a massive premium.

The Unit-2 (ERL-2) expansion project will construct an entirely new, highly sophisticated processing wing next to the existing facility.

By tripling the plant's total processing limits to 4.5 million tonnes per year, the expansion will enable Bangladesh to import cheaper raw crude oil and refine it domestically.

This shift will significantly reduce the country's dependence on expensive, pre-refined foreign petroleum.

Additionally, the new plant is architected to yield clean, Euro-5-standard diesel and gasoline, mitigating growing domestic environmental concerns regarding fuel quality.

The total capital expenditure was initially estimated by the Executive Committee of the National Economic Council (ECNEC) at Tk 354.65 billion.

Independent energy experts and ERD officials agree that the commercial survival of this loan hinges entirely on swift, corruption-free project execution.

Because the interest rate floats with the SOFR benchmark, any construction delay beyond the targeted November 2030 completion time will exponentially escalate the state's debt-servicing liabilities.

Conversely, if ERL-2 goes operational on schedule, massive foreign-exchange savings achieved by cutting refined-fuel imports will easily offset the aggressive borrowing terms.

The government will act as the primary procurement agent under the IsDB model, taking full ownership of contract negotiations, risk compliance, and project-management oversight.

With the official go-ahead now granted by the non-concessional committee, the ERD is poised to conclude final signatures with IsDB delegates to pave the way for construction mobilisation in Chittagong.

"Since the loan is endorsed by the government's standing committee on non-concessional loans, we will now go for signing contract with the IsDB in a bid to confirm the disbursement for the procurement of the refinery-upgradation works," says the ERD official.

The government has extended the state guarantee for the Investment Corporation of Bangladesh (ICB), a state-owned investment bank, for a Tk3,000 crore loan from Bangladesh Bank, granting a three-year extension until 2029 with a view to stabilising the country's capital market.

Amid mounting pressure and failure to repay the outstanding loan despite the expiration of the original deadline in May, the ICB applied to the government urging an extension, as it is struggling to repay due to a severe liquidity crunch.

In a letter expressing its concerns, the ICB stated that if it is forced to repay the loan now, it would have to sell shares in the secondary market, which would have a negative impact on the market.

According to an official letter from the Financial Institutions Division (FID) of the Ministry of Finance, the sovereign guarantee has been extended for three years, effective from 13 May, 2026 with the primary objective of stabilising the country's capital market.

However, the relief comes with strict financial strings attached that ICB must ensure full repayment of the principal amount within the extended deadline, while keeping all other original terms of the loan agreement unchanged.

The letter states that the primary objective of extending the state guarantee is to ensure stability in the capital market. To this end, ICB's share trading activities and portfolio restructuring activities during the extended period must be closely monitored by the FID.

Also, with the aim of bringing ICB's administrative and operational expenses down to a rational level, reducing the burden of rising interest costs, and overcoming the erosion of portfolio capital, a specific, time-bound, and implementable "Business Recovery Plan" must be formulated and submitted to the FID, and the progress of the implementation of the said plan must be monitored regularly.

The ICB must submit an updated report on ICB's financial liquidity position, capital market investment activities, and the progress of loan repayment preparations must be sent to the Finance Division and the FID every 3 months during the extended period.

Also, the ICB is directed to finalise an updated repayment Schedule, coordinated with Bangladesh Bank, which must be submitted to the Finance Division.

Currently, the ICB is facing a severe capital shortage with around Tk5,506 crore fund erosion due to volatile capital market.

The corporation has invested around Tk12,500 crore in the capital market, but the current market value of those investments has fallen to about Tk8,000 crore as of December 2025.

As a result, ICB is facing an acute capital shortage. It has failed to pay nearly Tk1,200 crore in accrued interest on loans from state-owned banks.

The ICB, once one of the country's most profitable institutional investors, earning hundreds of crores of taka from stock market investments, is now facing mounting losses.

ICB officials said the current board has overhauled the management of government funds following allegations of irregularities in previous years.

The board has strengthened oversight of the Portfolio Management Committee, responsible for buying and selling shares using ICB funds. Officials said weak monitoring previously allowed some corrupt officials, allegedly influenced by market operators, to purchase highly overpriced shares.

A senior ICB official, speaking on condition of anonymity, said, "The loopholes that previously existed at ICB have now been closed. Oversight of the portfolio committee has increased, and purchases through the block market have been stopped. As a result, the erosion of the portfolio has slowed, although the damage has already been done."

The official said investment decisions are now reviewed daily.

"After decisions to buy or sell shares are taken in the morning, a progress report is prepared and discussed at the end of the trading day. That report is presented to the board every 15 days for review, which has helped reduce losses."

The official said ICB urgently needs further government financial support or low-interest funding.

"The government has already provided funds at an interest rate of 4%. If additional low-interest funds are provided solely to repay existing loans, the institution can be saved. Our annual operating expenses are only around Tk100-120 crore, but interest payments alone amount to nearly Tk1,000 crore. It is simply not possible to sustain ICB under these circumstances."

According to ICB's financial statements, income from capital gains, dividends and subsidiary companies is now lower than its interest expenses. The corporation is also incurring substantial losses because of operating costs and provisions against investments.

After posting a record loss of Tk1,213 crore in the 2024-25 financial year, ICB reported a further loss of Tk588 crore during the first nine months of FY26. Although the final quarter's accounts have yet to be published, the corporation expects to remain in the red for the full year.

Saudi Arabia is considering expanding the capacity of its crude oil pipeline to the western Red Sea coast, five sources close to the matter said, enabling the kingdom and possibly neighbours to transport more oil without crossing the Strait of Hormuz.

The East-West pipeline was built in the early 1980s and has become crucial since the start of the Iran war in February and the resulting halt to shipping through the Strait of Hormuz.

It can transport up to 7 million barrels per day (bpd) of crude to the Red Sea port of Yanbu. About 2 million bpd feed refineries on the west coast and roughly 5 million bpd are for export, the CEO of state-backed oil company Aramco said in May.

The kingdom is in preliminary talks with some of its neighbours about the potential expansion of the pipeline’s capacity by up to 2 million bpd, the sources said.

It was unclear if Aramco’s planned capacity increase would involve upgrades to existing infrastructure or construction of a new pipeline. One of the sources said the increase would include a smaller second pipe for oil products. Kuwait, Bahrain and Qatar all lack routes that can bypass Hormuz while Iraq’s pipeline to Turkey, dogged by disputes and repeated shutdowns, runs well below capacity.

“We are in discussions with our brothers in Saudi Arabia and in the emirates to look at how to expand the pipeline system that they have to accommodate Kuwaiti barrels,” Kuwait Petroleum Corporation CEO Sheikh Nawaf al-Sabah told the Atlantic Council Global Energy Forum last month.

The expansion could be for 1 million to 2 million bpd, two of the sources said, with refined products also under consideration. It would take years, cost billions of dollars and require changes to Saudi crude’s pricing mechanism, another source said.

Iran’s blockade of the strait forced Gulf producers to shut in as much as 12 million bpd, sending prices surging. Flows have resumed partially after a preliminary US-Iran deal last month, but they remain below pre-war levels.

Iraqi output collapsed from 4.3 million bpd to less than 1.5 million bpd in May, Kuwait declared force majeure in March and Bahrain’s Sitra refinery was struck by Iranian missiles several times.

“The recent talks about new pipeline corridors involving Saudi Arabia, Kuwait and Qatar reflect a broader strategic reality. The conflict has focused minds regionally on the perils of relying solely on Hormuz,” said Zaid Belbagi, managing partner at London-based Hardcastle Advisory.

Aramco declined to comment while the Saudi and Bahraini government communications offices, the Iraqi oil ministry and QatarEnergy did not respond immediately to requests for comment. Qatar, which mainly exports LNG, faces greater technical hurdles and is considering several potential alternatives, including via Saudi Arabia, three sources said.

The UAE, the only other Gulf state with meaningful Hormuz-bypass capacity, has completed half of a new West-East pipeline that will double crude capacity to Fujairah when it becomes operational next year. Its existing Abu Dhabi pipeline carries up to 1.8 million bpd. An expansion by Saudi Arabia “suggests that after the war, the next phase of the Saudi-UAE rivalry could be a race to the top on oil production, and therefore a race to the bottom on prices,” one industry source said.

The Bangladesh Bank has made it mandatory for banks to obtain certifications confirming that applicants were not involved in money laundering, fraud, fund diversion or misuse of previous loans before extending financing under the government's Tk20,000-crore pre-financing scheme aimed at reviving closed industrial and service sector enterprises.

The central bank issued a circular to all banks today (7 July), introducing additional conditions for lending under the scheme.

Under the new instructions, enterprises that are loan defaulters or have been involved in money laundering, fraud, forgery, diversion of funds or misuse of previous loan proceeds will not be eligible to receive financing from the fund.

To enforce these restrictions, banks must obtain certifications confirming that prospective borrowers have not engaged in such activities before approving loans.

The circular also requires banks with surplus liquidity to certify that those funds have been invested in the country's productive sectors.

The Bangladesh Bank first announced the scheme in a circular issued in June. The Tk20,000-crore fund forms part of the government's previously announced Tk60,000 crore "Production and Employment Revival" stimulus package.

The initiative is intended to restart closed factories, revive stalled export activities and create employment opportunities for unemployed young people through targeted credit support.

Under the scheme, participating banks will pay 4% interest to the Bangladesh Bank, while the maximum lending rate for borrowers has been capped at 7%. Borrowers will receive a six-month grace period on interest payments, after which interest servicing will commence.

The maximum loan available to any single company or business group under the scheme has been set at Tk200 crore. Each loan will have a maximum tenure of one year, although renewals will be allowed subject to the availability of funds and satisfactory repayment performance.

Foreign currency reserves have remained above the $31 billion mark after Bangladesh cleared nearly $1.5 billion in import bills through the Asian Clearing Union (ACU).
Net reserves stood at $31.72 billion, while gross reserves were $36.17 billion.

Bangladesh Bank reported these amounts at the end of Monday, using the International Monetary Fund's Balance of Payments (BPM-6) accounting method.
The net reserves were $33.20 billion and the gross amount was $37.85 billion at the end of Sunday.

Central bank spokesperson Arief Hossain Khan said the country's import bill of $1.48 billion for May and June was paid on Monday.

The reserves that remain after the adjustment can also cover four and a half months of import expenses, he said.
The reserves have been on a positive trend for the past few months.

Continued inflow of remittances coupled with the addition of a $1 billion budget support loan from the Asian Development Bank led to the net reserves exceeding $31 billion to $31.07 billion on Jun 14.

The gross reserves soared to $35.62 billion at that time.

Two weeks later, the BPM-6 estimate increased to $32.47 billion with the addition of $667.1 million in World Bank budget support loans.

On Jun 29, the gross reserves surged to $37.05 billion.

The net reserves jumped to $33.01 billion on Jul 2, boosted by remittances and export earnings. On that day, the gross reserves were $37.65 billion.

Bangladesh's infrastructure drive is reshaping not only the country's skyline but also the future of its steel industry.

As major projects such as the Padma Bridge, Dhaka Metro Rail, elevated expressways, economic zones and high-rise buildings require stronger and more durable materials, engineers and industry people say the focus must gradually shift from producing more steel to producing better-quality steel through advanced technology.

Industry insiders estimate that the country now consumes around 8 million tonnes of steel annually, with nearly 80% used in construction.

Backed by investments worth tens of thousands of crores of taka, the sector has reduced dependence on imported finished steel and created employment for hundreds of thousands of people.

Globally, steelmaking is undergoing a technological shift.

According to the World Steel Association, production through electric arc furnaces is expanding as countries focus on cleaner manufacturing, greater recycling and higher-quality steel.

Unlike conventional induction furnaces, modern electric arc furnaces combined with ladle refining furnaces allow manufacturers to better control chemical composition, remove impurities and produce more consistent steel.

Such qualities are increasingly needed for bridges, ports, airports, power plants and high-rise buildings, industry people said.

Despite its rapid expansion, much of Bangladesh's reinforcing bar production still relies on induction furnace technology, particularly among small and medium-sized mills.

While the technology helped build the domestic steel industry through lower investment and quick capacity expansion, engineers say future infrastructure will require better refining and stronger quality control.

Prof Md Aminul Islam, professor at the Department of Materials and Metallurgical Engineering of Bangladesh University of Engineering and Technology (Buet), said higher-grade construction materials could improve both structural efficiency and sustainability.

Upgrading from Grade-400 to Grade-500 reinforcing steel, while increasing concrete strength from 30MPa to 60MPa, could reduce structural weight by nearly 28% without compromising safety, he said.

He also said steel and cement together account for a significant share of global carbon emissions, underscoring the need for cleaner steelmaking technologies as Bangladesh prepares for its next phase of industrial and infrastructure development.

Leading producers invest in advanced technology

Some of Bangladesh's largest steelmakers have already begun shifting towards advanced production technologies.

Abul Khair Steel introduced one of the country's early electric arc furnace facilities in 2015. GPH Ispat followed with a Tk2,500 crore Quantum Electric Arc Furnace project at Sitakunda in 2020, while BSRM and KSRM have continued investing in automation, quality assurance and higher-specification production lines.

Manufacturers say these investments improve product consistency, reduce energy consumption, lower emissions and strengthen Bangladesh's ability to compete in export markets, where buyers increasingly demand certified and environmentally compliant products.

Industry executives believe technological upgrading is gradually becoming a competitive necessity rather than simply an engineering choice.

Real estate sector seeks higher standards

The country's real estate developers, among the largest consumers of construction steel, are also calling for higher-quality materials as urban buildings become taller and more technically demanding.

Ali Afzal, president of the Real Estate and Housing Association of Bangladesh (Rehab), said developers are increasingly prioritising structural durability over short-term cost.

"Buildings are expected to serve for generations. As Bangladesh is located in a seismically active region, earthquake resilience must remain a priority," he said.

"It is now time to gradually implement the mandatory use of refined, high-quality steel in major construction projects and ensure wider compliance with the Bangladesh National Building Code."

Industry insiders said stronger material standards would improve buyer confidence while supporting the long-term sustainability of Bangladesh's real estate sector.

Engineers call for updated practices

Construction engineers said building codes and industry practices should evolve alongside technological advancements.

Md Nurul Islam, chief engineer (implementation) of Rajuk, said demand from both government and private developers would ultimately determine the industry's direction.

"If demand for refined and higher-quality steel increases, manufacturers will naturally invest in producing it," he said.

He noted that public infrastructure projects account for a major share of steel consumption. While manufacturers are already capable of producing reinforcing bars up to Grade 700, the Bangladesh National Building Code currently allows Grade 500 reinforcement for most applications.

"We are gradually preparing our engineering workforce for greener and more advanced construction technologies," he added.

Md Shamsuddoha, additional chief engineer of the Public Works Department, said steel would remain indispensable for Bangladesh's development, but the industry must also reduce its environmental footprint through modern production technologies and greater recycling.

Investment remains a challenge

Industry leaders acknowledge that modernising Bangladesh's steel industry will require significant investment, reliable electricity supply and supportive industrial policies.

Electric arc furnace projects involve substantially higher capital expenditure than conventional melting technologies, making access to long-term financing and affordable energy essential for wider adoption.

M Zakir Hossain Khan, chief executive of Change Initiative, said Bangladesh now needs a national roadmap for cleaner steel production.

"Bangladesh should define how the steel industry will become cleaner, smarter, safer and more resilient by 2030 or 2035," he said.

He added that greater use of renewable energy, improved scrap recycling and adoption of Environmental, Social and Governance standards could help Bangladesh strengthen export competitiveness and position itself in the emerging green steel market.

Bangladesh recorded a strong rebound in foreign direct investment (FDI) in 2025, ending two consecutive years of decline, but the gains were not enough to close the gap with regional players.

The country remained the third-largest recipient of FDI in South Asia after India and Pakistan, according to the World Investment Report (WIR) 2026, released yesterday by the UN Conference on Trade and Development (UNCTAD).

As per the report, FDI inflows into Bangladesh rose 45 percent to $1.78 billion in 2025 from $1.23 billion a year earlier.

Separately, Bangladesh Bank data showed a similar trend, with FDI rising 45.5 percent to $1.79 billion, which it attributed to higher reinvested earnings from existing foreign investors.

Earlier in mid-May, the Bangladesh Investment Development Authority (Bida) said FDI inflows increased 39.36 percent year-on-year to $1.77 billion in 2025.

“A series of measures to improve investment facilitation and bring greater discipline to the approval process contributed to last year’s rebound,” said Nahian Rahman Rochi, executive member (investment) at Bida.

“All three components of FDI -- equity investment, reinvested earnings and intra-company loans -- posted positive growth last year. Although equity investment declined globally, Bangladesh recorded around 8 percent growth in equity inflows, which is encouraging given the country’s political transition,” he said.

Rochi said Bida also maintained regular communication with existing and prospective investors. “That engagement gave them confidence, and we believe it contributed to the recovery in FDI.”

He, however, said the growth remained well below Bangladesh’s investment needs.

Rochi said Bida has an investment pipeline worth about $1.5 billion that could materialise over the next 18-24 months.

GLOBAL FDI RECOVERY UNEVEN

Globally, FDI rose 6 percent to $1.6 trillion following two years of decline, though UNCTAD said the recovery was “fragile and uneven”. Inflows rose 11 percent to $723 billion in developed economies and 2 percent to $901 billion in developing economies.

Developing Asia remained the largest recipient among developing regions, at $644 billion, though trends diverged within it: inflows declined in East Asia, including China, but rose in South-East Asia, South Asia, West Asia and Central Asia.

S ASIA GETS $46b

Total inflows into South Asia climbed to $46.1 billion in 2025 from $34.1 billion a year earlier.

India remained the region’s dominant investment destination, attracting $38.9 billion in 2025, up 44 percent from $27.1 billion in the previous year, supported by strong investments in manufacturing, services and supply-chain diversification.

Pakistan received the second-highest amount in the region, $1.85 billion, though inflows fell from $2.67 billion in 2024; it remained marginally ahead of Bangladesh.

Among smaller South Asian economies, the Maldives attracted $857 million, up from $806 million, largely on tourism projects; Nepal’s inflows fell to $44 million from $57 million; Bhutan received $9 million, unchanged.

China remained one of the world’s largest FDI recipients despite a decline from about $116 billion to $105 billion, continuing to draw higher value-added investment in R&D and pharmaceutical manufacturing.

ASIA SHAPING FUTURE, BUT OUTLOOK CLOUDED

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The WIR report said Asia is increasingly shaping where future industries are being built, even as investment patterns within the region evolve.

The report noted that investment worldwide is increasingly flowing into semiconductors, digital infrastructure, artificial intelligence, advanced manufacturing and energy-transition technologies.

Many Asian economies are entering this period with important advantages, including established manufacturing capacity, supplier networks, large consumer markets, growing industrial ecosystems and deep integration into regional production networks, it added.

“But these advantages are uneven, and not all economies can compete for the same projects,” UNCTAD said, adding that competition for global capital is becoming more intense.

The report said success in attracting investment is becoming harder to take for granted as governments increasingly use industrial policies and incentives to attract projects linked to future growth industries, while investors become more selective about where they commit long-term capital.

Bangladesh's Purchasing Managers’ Index (PMI) for June has recorded a sharp slowdown, falling 9.9 points from May to settle at 52.9, as manufacturing and construction sectors slipped back into contraction while agriculture and services continued to expand at a softer pace, according to a report released on Tuesday.Bangladesh Politics News
The Bangladesh PMI, jointly compiled by the Metropolitan Chamber of Commerce and Industry (MCCI), and Policy Exchange Bangladesh (PEB), is developed with support from the UK government and technical assistance from the Singapore Institute of Purchasing & Materials Management (SIPMM).The index is designed to provide timely and reliable insights into the country's economic health to help businesses, investors and policymakers make informed decisions.Commenting on the findings, M Masrur Reaz, Chairman and CEO of Policy Exchange Bangladesh, said the June reading suggested Bangladesh's economy remained in expansion overall, but with clear sectoral divergence.He said agriculture and services continued to grow, though more slowly, while manufacturing returned to contraction on weaker orders, exports, employment and supplier deliveries.

Construction also contracted amid softer activity and new business, he said, adding that long Eid holidays, the onset of the monsoon and fading pre-Eid demand had weighed on business conditions during the month.

The agriculture sector recorded its tenth consecutive month of expansion in June, although growth moderated from May. New business, business activity, employment and input costs all continued to expand, while the order backlogs index remained in contraction for the second straight month.

The manufacturing sector returned to contraction after two months of expansion, dragged down by weaker new orders, new exports, employment, supplier deliveries and order backlogs. Factory output, input purchases and imports continued to grow, though at a slower pace, while input prices accelerated and the finished goods index swung back into expansion.Economic Policy Reviews

The construction sector also reverted to contraction after posting expansion in May, with new business, construction activity and employment all falling back. Input costs and order backlogs, however, continued to expand at a faster pace within the sector.

The services sector expanded for the 21st consecutive month in June, though growth slowed across new business, business activity, employment and input costs, while the order backlogs index contracted at a faster rate.

Looking ahead, the Future Business Index points to continued expansion in agriculture, construction and services, while manufacturing is expected to return to expansion, reflecting cautious optimism about business conditions in the coming months.

Respondents across major economic sectors described business conditions in June as challenging amid rising production costs and weaker market conditions. Many firms cited higher LPG and fuel prices, rising transportation and operating costs, and increasing labour expenses as key pressures squeezing profit margins.

Several businesses also pointed to financial constraints, disruptions from ongoing road construction activities, and concerns over the recently imposed 15 percent VAT, which they said had raised the cost of doing business. Agricultural respondents flagged weather-related uncertainties affecting production and seasonal demand, while some firms noted that local economic activity remained subdued.

Despite the challenges, respondents expressed hope that improvements in the business environment, stable energy supplies and supportive government policies would help strengthen business confidence and economic activity in the months ahead.Capital Market Insights

Several respondents also recommended maintaining a representative and high-quality respondent panel to further enhance the reliability of the Bangladesh PMI.

The report was signed by Farooq Ahmed, Secretary-General and CEO of MCCI, and M Masrur Reaz, Chairman and CEO of Policy Exchange Bangladesh.

Bangladesh netted a phenomenally higher annual foreign direct investment worth US$1.78 billion in 2025 as the global flow of FDI marked resurgence last year after two barren years.
The global and local FDI rises are quantified in the World Investment Report (WIR) 2026 just released in Geneva on Tuesday morning by the UN Conference on Trade and Development (UNCTAD).

Bangladesh's FDI inflow recorded 44-percent growth in 2025 against $1.23 billion in 2024, according to the UNCTAD report.The amount is the highest in the last five years. As a result, FDI as percentage of gross fixed capital stood at 1.40 per cent in the past year which was 0.90 per cent in 2024.Outstanding stock of FDI reached $19.63 billion at the end of 2025, according to UNCTAD estimate.The report also shows that outward FDI from Bangladesh to the rest of the world increased by 72.60 per cent to $25 million in the last year from $15 million in 2024.The amount of global FDI stood at $1.62 trillion in 2025 which was $1.53 trillion in 2024 and $1.32 trillion in 2023.

"But the recovery remains narrow, fragile and uneven," says the report, prepared and published by the UN agency.

Inflows of FDI to developed economies rose 11 per cent although developing economies recorded only 2,0-percent growth, reaching $901 billion.

"The figures point to a rebound that is not translating evenly into development opportunities," observed the UNCTAD.

"The issue is not only how much capital is moving, but where it is going, what it is building and whether it is expanding productive capacity, creating jobs, strengthening skills and supporting technology transfer."

The world's top 20 host economies attracted more than 80 per cent of global FDI in 2025, according to the WIR 2026. The figure underscores a trend: "investment is becoming more concentrated across countries, sectors and projects".

"The recovery should also be interpreted with caution: headline FDI numbers do not always translate into new factories, infrastructure, jobs or technology transfer," adds the annual flagship report of the UNCTAD under the theme 'International Investment in a Turbulent Era'.

It also shows that strategic sectors are reshaping flows: they accounted for 44 per cent of greenfield project value, up from 16 per cent in 2020.

"Developing impact remains uneven: what matters is where investment goes, what it builds and who benefits," WRI 2026 further adds. "Policy is becoming more selective, as governments steer investment towards strategic sectors and national priorities."

Though developing nations received more than half of the global FDI in the last year, growth was modest and uneven across regions. For instance, developing Asia remained the largest recipient region, attracting FDI worth $644 billion, while FDI in Latin America and the Caribbean rose 14 per cent to $188 billion.

Again, Africa received about $70 billion as FDI, which is one third above its 2010-2024 average.

Inflow of FDI in least-developed countries (LDCs) rise 21 per cent to $43 billion, but the group still accounted for only 2.7 per cent of global FDI, with flows concentrated in a small number of mostly resource-rich economies.

"This concentration is particularly visible in industries linked to technology, energy and industrial policy," says the report.

Strategic sectors such as AI infrastructure, semiconductors, critical minerals and energy-transition technologies and services accounted for 44 per cent of global greenfield project values in 2025, up from 16 per cent in 2020.

"The growth in project values was driven mainly by data centres, followed by oil and gas and semiconductors," the report explains. "Most other sectors registered declines, including renewable energy, infrastructure and manufacturing, showing how narrow the recovery remains."

Bangladesh Bank (BB) has issued comprehensive guidelines for scheduling banks to access its newly formed Tk 200 billion (Tk 20,000 crore) revolving pre-finance scheme, aimed at revitalising closed and capital-starved units in the country’s large industry and service sectors, particularly export-oriented ones.Bangladesh Politics News
The central bank's Banking Regulation and Policy Department-3 (BRPD-3) issued a circular for the managing directors and chief executive officers of all scheduled banks on Tuesday, detailing the operational modalities, reports UNB.According to the circular, the three-year revolving fund titled “Closed Industry and Service Sector Facilitation Pre-finance Scheme” will be sourced from the surplus liquidity of scheduled banks.To participate in the scheme, interested banks must execute a "Participation Agreement" with the BRPD-3. After obtaining approval from their respective boards of directors, banks can apply for the pre-finance facility using a designated format, complete with necessary documentation, before disbursing the loans to end-borrowers.

The central bank stipulated that borrowers who are already availing working capital facilities from other BB re-finance or pre-finance schemes must undergo a thorough review of their requirements before a fresh application is submitted.

To ensure transparency and prevent financial irregularities, Bangladesh Bank has mandated that participating banks must collect specific declarations and reports from applicants alongside standard documentation.

These include a declaration from the borrower confirming that they have never been involved in money laundering, forgery, fund diversion, or loan misuse, a certification verifying the client’s production or service delivery capability, sales and revenue reports from the beneficiary entities, a commitment from banks to conduct quarterly factory inspections and submit inspection reports.

Reporting and Compliance

Participating banks will be required to submit quarterly statements on loan disbursement and recovery to Bangladesh Bank by the 10th of the month following the end of each quarter.

The Bangladesh Securities and Exchange Commission (BSEC) has approved United Commercial Bank PLC (UCB) to raise Tk775.18 crore through a rights share offering, enabling the bank to meet the central bank's minimum paid-up capital requirement for dividend eligibility.

The approval came at the regulator's commission meeting yesterday, according to a BSEC press release.

Under the offer, UCB will issue 77.51 crore rights shares at a face value of Tk10 each, with shareholders entitled to one rights share for every two existing shares. The bank said the proceeds will be used to strengthen its capital base and support business operations.

The rights issue will increase UCB's paid-up capital from Tk1,550.37 crore to Tk2,326 crore, taking it above the Tk2,000 crore minimum threshold recently set by Bangladesh Bank for commercial banks seeking to declare dividends.

For the January-March quarter of 2026, UCB reported consolidated earnings per share (EPS) of Tk0.07, up from a restated Tk0.04 in the same period a year earlier. The bank attributed the improvement to stronger performance by its subsidiaries.

However, consolidated net operating cash flow per share (NOCFPS) fell to negative Tk4.22 from positive Tk6.98 a year earlier. According to the bank, the decline resulted from higher loan disbursements and investments relative to deposit growth, alongside lower net interest income.

As of 31 March 2026, UCB's consolidated net asset value (NAV) per share stood at Tk25.97.

At the same meeting, the BSEC also approved the draft prospectus of the Blue-Wealth First Stable Return Fund, an open-end mutual fund with an initial target size of Tk30 crore.

Its sponsor, Blue-Wealth Assets Limited, has contributed Tk3 crore, while the remaining Tk27 crore will be raised from general investors. The fund's unit price has been fixed at Tk10.

Blue-Wealth Assets Limited will serve as the fund manager, while Sandhani Life Insurance Company and Commercial Bank of Ceylon PLC will act as the trustee and custodian, respectively.

Oil prices fell by more than 1 percent on Monday after Opec+ agreed to further increase its output targets from August while exports from key producers via the Strait of Hormuz are recovering, potentially adding to global supplies.

Brent crude futures fell $1.02, or 1.41 percent, to $71.10 a barrel at 0756 GMT after settling 0.45 percent higher on Friday. US West Texas Intermediate crude was at $67.89 a barrel, down 80 cents, or 1.16 percent. There was no settlement for WTI on Friday as US markets were closed ahead of the Independence Day holiday on Saturday.

Both contracts were little changed last week after mostly falling over the past few weeks, as investors kept a close eye on talks between the US and Iran over the fate of shipping through the Strait of Hormuz while keeping tabs on the recovery in Gulf oil exports.

The Organization of the Petroleum Exporting Countries and their allies including Russia agreed on Sunday to further increase output targets by 188,000 barrels per day from August, on top of similar increases for June and July.

However, the increase has remained largely on paper because of the US-Israeli war on Iran, which closed the Strait of Hormuz to tanker traffic for key Opec producers, including Saudi Arabia, Kuwait and Iraq, capping their output.

“They are selling into a falling market, offering little hope of an imminent price recovery,” PVM analysts said in a note. “However, lower oil prices will undoubtedly stimulate demand further down the line.”

Gulf oil exports in June jumped more than 3 million barrels from May to exceed 10 million barrels per day, although volume remained 40 percent below pre-war levels, data showed.

“We now expect global oil demand to contract by 1.5 million barrels per day in 2026, reflecting a sharper-than-expected downturn in Q2, when year-on-year declines could reach 4 million bpd based on preliminary data,” ANZ said.

“However, we expect demand losses to moderate in the second half of the year as supply improves and some deferred consumption returns,” the bank added.

Abu Dhabi National Oil Company has sold about 16 million barrels of Emirati crude at wider discounts in a fifth spot tender issued since June, trade sources said, underscoring a surge in spot supply.

In addition, oil shipments from Russia’s western ports hit a record high in June and are expected to maintain that level in July as its refineries have been damaged in drone attacks by Ukraine that have forced Moscow to boost crude exports, industry sources said.

The total market capitalisation of the Dhaka Stock Exchange (DSE) crossed the Tk7 lakh crore mark today (6 July) for the first time in more than three months, signalling a continued recovery in investor confidence amid sustained gains in the country's stock market.

The market capitalisation of the country's premier bourse rose to over Tk7 lakh crore, the highest level since 16 March, when it stood at Tk7.06 lakh crore. The milestone comes as the benchmark DSEX index has extended its recent rally, supported by expectations of market-friendly regulatory reforms and a series of policy initiatives aimed at strengthening the capital market, according to analysts.

They said reclaiming the Tk7 lakh crore threshold carries strong psychological significance, reflecting a rebound in the overall value of listed companies as investors continue to accumulate fundamentally strong blue-chip and large-cap stocks after a prolonged bearish spell.

The DSEX advanced 12 points, or 0.22%, to close at 5,799 today, hovering just below the key 5,800-point resistance level. The blue-chip DS30 index also edged up one point to settle at 2,192.

Market breadth remained slightly positive, with 166 issues advancing, 155 declining and 71 remaining unchanged.

Despite the gains, trading activity moderated. Daily turnover declined 7% to Tk1,416 crore from the previous session, indicating some investors opted to book profits following the market's recent rally.

According to Sheltech Brokerage Limited's daily market review, selective buying in heavyweight and fundamentally strong stocks continued to drive the market higher.

The brokerage said optimism over recent policy measures aimed at deepening the capital market and improving transparency supported investor sentiment. Although profit-taking emerged midway through the trading session, sustained buying interest in selected large-cap stocks outweighed the selling pressure, allowing the benchmark index to extend its winning streak.

Sector-wise, the textile sector accounted for the largest share of turnover at 16.8%, followed by insurance at 12.67% and pharmaceuticals at 12.17%.

An analysis by BRAC EPL Stock Brokerage showed that most major sectors ended in positive territory. The fuel and power sector led the gains, rising 1.08%, followed by telecommunications, which added 0.63%, and food and allied, up 0.57%.

The non-bank financial institution (NBFI) sector was the day's worst performer, slipping 0.25% as investors remained cautious over the sector's ongoing liquidity concerns.

The positive momentum also extended to the Chittagong Stock Exchange (CSE). The Selective Categories' Index (CSCX) climbed 42 points to 9,488, while the All Share Price Index (CASPI) gained 73 points to close at 15,489. However, turnover at the port city bourse plunged 75% to Tk16.59 crore.

Uttara Finance and Investments Limited has r restated its 2019 financial statements, posting a consolidated net loss of Tk308 crore in place of an earlier reported profit after a Bangladesh Bank-ordered forensic audit uncovered widespread irregularities in the non-bank financial institution's accounts.

The revised financial statements, published through the Dhaka Stock Exchange (DSE) today (6 July), showed a consolidated loss per share (EPS) of Tk23.43, a restated net asset value (NAV) per share of Tk29.55 and net operating cash flow per share (NOCFPS) of Tk13.24 for the year ended 31 December 2019.

The restatement marks a sharp reversal from the original audited accounts, which had reported a consolidated net profit of Tk118 crore in 2019, up 14% from the previous year. Based on those results, the board had recommended a 15% cash dividend and a 5% stock dividend.

However, Bangladesh Bank later rejected the financial statements audited by SF Ahmed and Co after a special audit by KPMG Bangladesh uncovered discrepancies involving about Tk5,300 crore in the company's financial records.

The audit, conducted under the central bank's Resolution and Recovery Department (RRH), prompted the company to restate its financial statements in line with regulatory directives.

Uttara Finance also released revised financial statements for 2020 and 2021, showing continued financial deterioration.

For the year ended 31 December 2020, the company reported a consolidated loss per share of Tk35.98, while NAV per share turned negative at Tk9.26. Net operating cash flow per share stood at Tk12.04.

In 2021, it posted a consolidated loss per share of Tk23.48. NAV per share further declined to negative Tk32.74, while net operating cash flow per share fell to negative Tk20.38.

The company told the stock exchange that AGMs for 2020 and 2021 have become time-barred due to delays in finalising audited financial statements. It plans to seek High Court permission to hold the overdue AGMs after completing and auditing its pending financial statements for 2022-2025. Record dates and AGM schedules will be announced after court approval.

Following the financial irregularities, Bangladesh Bank dissolved the NBFI's sponsor-director board in 2022 and appointed a new board to restore governance, transparency and accountability.

The company remains in the "Z" category on the stock exchange for failing to hold annual general meetings within the stipulated timeframe.

As of June 2026, sponsors and directors held 44.44% of the company's shares, institutional investors 31.71%, foreign investors 7.82% and general investors 16.03%.

Bangladesh’s foreign exchange reserves stood at $37.85 billion, according to the latest data released by the Bangladesh Bank (BB) on Monday.Bangladesh Politics News

The central bank said that under the International Monetary Fund’s (IMF) Balance of Payments and International Investment Position Manual (BPM-6) accounting standard, the country’s reserves were recorded at $33.20 billion.

Officials noted that the reserve position reflects the country’s external sector stability amidst ongoing global economic uncertainties.

The country’s plastic industry has slowed sharply following the recent Middle East crisis, as rising raw material prices and weak consumer demand continue to hit manufacturers hard, industry leaders said.

The steep rise in the cost of imported plastic raw materials has severely affected producers, Shamim Ahmed, president of the Bangladesh Plastic Goods Manufacturers & Exporters Association (BPGMEA), told journalists at the association’s office in Dhaka’s Paltan yesterday.
Before the conflict, key raw materials were imported at around $800 to $900 per tonne. Prices have now increased to between $1,500 and $1,600 per tonne, he said.

“The sharp rise in raw material costs is putting immense pressure on the industry. Higher production costs are also driving up the prices of finished products,” Shamim said.

The country’s plastic and packaging industry, worth around Tk 60,000 crore annually, recorded monthly sales of about Tk 5,000 crore before the conflict. This has now fallen to around Tk 3,750 crore, a decline of at least 25 percent, according to the BPGMEA.

Shamim said at least 25 percent of customers have reduced their orders since the conflict began, while some segments have seen demand drop by as much as 40 percent.

The packaging segment, which accounts for about 40 percent of the industry, has been the worst affected as demand for fast-moving consumer goods weakens amid lower household spending, he added.

“We are not the end product; we supply other industries,” Shamim said. “When consumers buy less detergent, food or household products, demand for our packaging and plastic components drops immediately.”

According to him, Bangladesh has around 6,000 plastic manufacturing units, of which 4,000 to 4,500 supply products to other sectors, including garments, pharmaceuticals, food processing and beverages. The industry serves around 30,000 businesses in total.

“Many people still think plastic means buckets, mugs and kitchenware. But plastic has become an essential part of industrial production and supply chains,” he said.

He warned that any disruption in the sector would quickly affect the wider economy, as most manufacturing industries depend heavily on plastic packaging and components.

Shamim also alleged that customs authorities often assess imported raw materials at higher values than invoice prices to meet revenue targets, even though such materials are sourced from large international suppliers where under- or over-invoicing is unlikely.

On recycling, Shamim said Bangladesh has a relatively high plastic recycling rate in the region, but investment in waste-to-energy infrastructure remains behind neighbouring countries.

KM Iqbal Hossain, senior vice-president of BPGMEA, said manufacturers have been absorbing much of the increased production costs instead of passing them on to buyers.

“We are negotiating with our clients to raise prices because production costs have increased by at least 30 percent, but we have not yet fully adjusted our prices,” he added.

Industry leaders said higher costs and weak consumer demand are putting severe pressure on profit margins, with many firms struggling to stay viable.

Iqbal also said Bangladesh is lagging in developing waste-to-energy projects. “Countries like Indonesia are rapidly expanding waste-to-energy projects. In Bangladesh, we have been trying to set up even one large-scale waste-to-energy plant for the past five years,” he said.

Despite the slowdown in traditional plastic manufacturing, Shamim said the recycling segment continues to grow and is creating new jobs as businesses place greater focus on sustainability.

Iqbal criticised high industrial land prices, weak incentives and complex regulations, saying these factors are discouraging investment and job creation.

He questioned why industrial plots developed by the Bangladesh Small and Cottage Industries Corporation are sold at prices much higher than acquisition costs, forcing entrepreneurs to spend heavily on land instead of production.
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Comparing with neighbouring countries, Iqbal said governments in India provide industrial land, utilities and incentives to support manufacturing and exports.

He also highlighted challenges faced by plastic and toy manufacturers, saying many key components must be imported because local production is not commercially viable. However, manufacturers still pay commercial import duties on these inputs, reducing competitiveness against producers in countries such as China and Sri Lanka.

The National Board of Revenue’s (NBR) collection of more than Tk360,000 crore during the first eleven months of the fiscal year deserves recognition. At a time when Bangladesh is grappling with mounting fiscal pressures, this performance signals improvement in revenue administration despite a challenging economic environment.

Higher revenue collection strengthens the government’s ability to finance infrastructure, education, healthcare, and social protection while reducing excessive dependence on domestic and external borrowing.
Yet, beyond the headline figure lies a more important policy question: Is Bangladesh pursuing revenue growth in a sustainable manner?

The answer depends not only on how much revenue is collected today, but on whether the country’s revenue strategy is built on realism, efficiency, and trust.

Every year, Bangladesh announces ambitious revenue targets as part of the national budget. While optimism has its place in public finance, persistent gaps between targets and actual collections have become a recurring feature of our fiscal landscape.

When revenue targets consistently prove unattainable, they gradually lose their value as planning instruments. Revenue forecasting must therefore be grounded in economic realities rather than aspirations. Tax collection ultimately reflects economic activity. Ignoring these realities while setting ambitious targets only widens the gap between expectations and outcomes.

A balanced revenue strategy begins with acknowledging the economy’s actual capacity.

Bangladesh continues to have one of the lowest tax-to-GDP ratios among comparable developing economies. However, the real issue is not necessarily tax rates but a narrow tax base and uneven compliance. A small segment of formal businesses and salaried individuals continues to shoulder a disproportionate share of the tax burden, while large parts of the economy remain outside the formal tax net.

Expanding the taxpayer base should therefore become the central objective of tax reform.

Rather than repeatedly imposing additional obligations on compliant taxpayers, policymakers should focus on identifying new taxpayers, formalising informal businesses, strengthening digital record-keeping, and improving data sharing among government agencies. Technology offers opportunities to detect tax evasion while reducing compliance costs for honest taxpayers. Equally important is simplifying the tax system. Businesses are more likely to comply when tax rules are clear, predictable, and consistently applied. A modern tax administration should view taxpayers as partners in national development rather than merely subjects of enforcement.

This is particularly important as Bangladesh seeks greater domestic and foreign investment. Frequent regulatory changes and inconsistent interpretation of tax laws increase business uncertainty and discourage long-term investment. A stable and transparent tax environment ultimately generates more sustainable revenue than short-term collection drives.

Another often overlooked aspect of revenue mobilisation is public trust. Citizens are more willing to pay taxes when they see visible improvements in public services and infrastructure. Revenue collection should therefore be viewed not merely as a fiscal exercise but as part of a broader governance framework where accountability and service delivery strengthen voluntary compliance.

Bangladesh’s development ambitions will require steadily rising public revenues in the coming years. These objectives cannot be financed indefinitely through borrowing alone. The solution lies in building a tax system that is broader, fairer, more efficient, and more trusted.

The recent progress made by the NBR demonstrates that improvements are possible. The next phase of reform should focus less on announcing ambitious collection numbers and more on strengthening institutional capacity, expanding the formal economy, reducing tax evasion, and making compliance easier.

Balanced revenue growth is not about collecting the maximum amount in a single fiscal year. It is about creating a tax system capable of supporting Bangladesh’s long-term economic transformation. Realistic target-setting, efficient administration, and greater taxpayer confidence will ultimately produce more credible fiscal outcomes and a stronger foundation for sustainable economic growth.

Bangladesh's export competitiveness is coming under increasing pressure ahead of its graduation from the least- developed country (LDC) status due to uncertainty over post-graduation market access, tougher compliance requirements, and new free-trade agreements (FTAs) signed by competing exporting countries, according to the Research and Policy Integration for Development (RAPID). Geographic

Weak infrastructure, high production costs, inefficient logistics, and slow export diversification are further constraining export growth, it says.

With Bangladesh preparing for LDC graduation, the research organisation has called for an urgent and coordinated competitiveness reform programme.

The observations came in a keynote paper presented at a workshop titled "LDC Graduation and Trade Competitiveness" and held at the National Press Club in the capital on Monday.

The presentation was delivered by RAPID Chairman Dr Mohammad Abdur Razzaque.

Speaking as the chief guest, Information and Broadcasting Minister Zahir Uddin Swapon called for making the most of the possible three-year LDC graduation extension by strengthening export competitiveness, implementing policy reforms, and preparing for post-LDC challenges.

He also stressed that sustainable development would not be possible without economy-friendly politics.

" Politics must support the economy. Otherwise, discussions on these issues will remain merely theoretical," he said.

The minister said although Bangladesh had not yet formally graduated from the LDC category, effective preparations must begin immediately to address the challenges in the export sector.Politics

Those challenges were expected to intensify after graduation, he added.

Swapon noted that the government had applied to the relevant United Nations committee in February this year to defer the graduation until November 2029.

The additional period, he said, should not be viewed as an opportunity for delay but as a window to complete the necessary preparations for a smooth transition.

"The government's policymakers and relevant officials are already working on the issue," he said, adding that if the extension was approved, it would facilitate policy reforms, boost export growth, remove administrative bottlenecks, and help the country better adapt to the post-LDC environment.

Presenting the keynote, Dr Razzaque said Bangladesh's export sector was entering a far more challenging global trading environment as competition intensified and preferential market access gradually eroded.

He noted that competitors such as India and Vietnam were expanding their network of free trade agreements, strengthening their position in key export destinations, including the European Union, while Bangladesh risked losing its traditional competitive edge after graduation.Economic Policy Reviews

He warned that the withdrawal of duty-free market access following graduation could expose Bangladeshi exports to higher tariffs, undermining their price competitiveness unless the country undertook comprehensive reforms.

At the same time, he observed that global trade was increasingly being shaped by environmental, climate, and labour-related standards, making compliance an essential requirement for sustaining market access.

According to Dr Razzaque, Bangladesh can no longer rely solely on low production costs.

Enhancing productivity, improving trade competitiveness, and meeting evolving sustainability and compliance requirements would be critical to maintaining export growth in the post-LDC era, he said.

Doulot Akter Mala, president of the Economic Reporters' Forum (ERF), attended the programme as the guest of honour.

She stressed the need for urgent strategic preparations ahead of graduation, saying the absence of a revised transition strategy, declining foreign direct investment (FDI), and weak competitiveness remained major concerns.Geographic Reference

Mala also called for restoring business confidence through stable policies, reducing bureaucratic hurdles, strengthening research and development, and aligning budgetary commitments with the country's economic realities.

Dr M Abu Eusuf, executive director of RAPID, delivered the address of welcome.