Private sector credit growth edged up to 4.98% in May from 4.75% in April, but weak loan demand continues to push banks towards government securities as a key source of earnings.

With businesses borrowing less, banks have increasingly relied on investment income from treasury bills, bonds and other government securities rather than traditional interest income. The trend marks a sharp reversal from 2021, when interest income accounted for the bulk of banks' earnings.

Bankers and analysts attribute the shift to sluggish private investment, rising non-performing loans (NPLs) and weak loan recovery from several large business groups.

They say political and economic uncertainty has also discouraged fresh investment, prompting banks to channel excess liquidity into government securities, which offer attractive yields and carry virtually no credit risk.

Requesting anonymity, a treasury head at a commercial bank told The Business Standard that income from treasury bills and bonds is recorded as investment income.

State-owned Sonali Bank's net interest income fell by more than Tk1,100 crore in 2025 to Tk337.23 crore from Tk1,490 crore a year earlier. In contrast, its investment income rose to Tk9,799 crore from Tk6,414 crore.

Eastern Bank's annual report showed net interest income declined 7% in 2025, while non-interest income increased 32%.

BRAC Bank reported a 13% fall in net interest income in 2025 after a 24% decline in 2024. Meanwhile, its investment income jumped 78% in 2025 following a 181% surge the previous year.

The contrast is stark with 2021, when the country's 52 major banks generated a combined Tk40,793 crore in income, with interest income contributing 47% of the total.

A deputy managing director of a private bank said many businesses scaled back or shut operations following the fall of the Awami League government, sharply reducing demand for bank credit.

Several factories owned by large business groups, including Nassa Group, Beximco Group and Gazi Group, have closed, while many others are operating at only 30-40% of capacity, he said. "When factories were operating normally, they imported capital machinery. Now even those that remain open have cut production by 60-70%."

A senior commercial banker said sustainable banking growth ultimately depends on expanding credit rather than investment in government securities. While treasury bills and bonds currently provide attractive returns, lower yields in future could reduce banks' investment income.

Stronger private-sector borrowing, he said, remains essential for both banks and the broader economy.

The government has decided to continue export incentives and cash assistance for 43 sectors in fiscal year (FY) 2026-27, despite having its previous plan to phase out such subsidies ahead of Bangladesh's LDC graduation.

The Foreign Exchange Policy Department (FEPD) of Bangladesh Bank (BB) in a circular on Sunday said the revised incentive structure will remain applicable for export shipments between July 1, 2026 and June 30, 2027.

The export support was available for 43 sectors in the entire previous fiscal year from July 1, 2025 to June 30, 2026.

The government maintained the incentive support for both traditional and non-traditional export sectors, aiming to help sustain their competitiveness in global markets.

However, some changes have been brought in the export support for footwear and bags that are made from a blend of synthetic and fabric materials.

Under the change, exporters of footwear and bags made from synthetic-fabric blends, which do not avail customs bond or duty drawback facilities, will receive the full cash incentive, with the rate keeping unchanged at 8.00 per cent.

In contrast, under the revised second category, exporters using bond or duty drawback facilities will see a drastic cut in their support to 2.00 per cent from the previous level of 8.0 per cent.

Under the highest incentive bracket, exporters of diversified jute goods with at least 50 per cent local value addition, leather products, agricultural and agro-processed items, potatoes, light engineering products, 'halal' processed meat and accumulator batteries will receive 10 per cent cash assistance. Insights

In the textile sector, exporters will get 1.5 per cent alternative cash support against customs bond and duty drawback facilities, while shipments to Eurozone countries will qualify for an additional 0.5 per cent special incentive.

Small and medium enterprises (SMEs) in the readymade garment sector, including knitwear, woven garments and sweaters, will continue to enjoy an additional 3.0 per cent cash support.

For the jute sector, incentives have been fixed at 5.0 per cent for hessian, sacking and carpet backing cloth (CBC), while jute yarn and twine exports will receive 3.0 per cent support.

Under the technology segment, software, hardware and information technology-enabled services (ITES) exports will get 6.0 per cent incentives, while freelance IT professionals will receive 2.5 per cent cash support.

The central bank also retained 6.0 per cent incentives for a number of emerging manufacturing sectors, including furniture, plastic products, paper and paper goods, pharmaceuticals, medical and surgical equipment, motorcycles, ceramic items and bicycles and their parts.

However, the BB has instructed banks concerned to ensure strict compliance and verification before disbursing the incentives.

The National Board of Revenue (NBR) on Sunday warned taxpayers against fraudsters posing as tax officials and demanding money on the pretext of exempting tax files from audits.

In a press statement, the revenue authority said it had recently noticed that a group of scammers has been contacting taxpayers from different mobile phone numbers, falsely claiming that their tax files have been selected for audit.

The fraudsters reportedly offer exclusion of the files from audit or threaten taxpayers with legal complications unless they pay money, the NBR said.

The revenue board clarified that its officials never communicate with taxpayers regarding tax audits through personal mobile phone numbers or any unauthorised channels.

If a tax file is selected for audit, the taxpayer is informed only through an official written notice in accordance with the law.

The NBR also reminded taxpayers that all tax payments, fees and other government dues must be deposited directly into the state treasury through authorised government payment channels.

No tax official is authorised to receive money personally or through mobile financial services such as bKash, Rocket or Nagad, or through any personal bank account.

Taxpayers have been advised to verify the authenticity of any suspicious phone call, SMS or email by immediately contacting the office of the Deputy Commissioner of Taxes in their respective tax zones.

The revenue authority further urged taxpayers to report any individual impersonating an NBR official and demanding money to the nearest law enforcement agency and to preserve the caller's phone number as evidence.

Reaffirming its commitment to providing transparent and harassment-free taxpayer services, the NBR requested all taxpayers to remain vigilant and refrain from making any financial transactions with such fraudsters under any circumstances.

The government has retained export cash incentive rates for 43 sectors in the 2026-27 fiscal year to encourage the country's export trade, according to a Bangladesh Bank circular issued today (5 July).

The Foreign Exchange Policy Department of the central bank said the incentive rates, unchanged from the previous fiscal year, will apply to goods shipped between 1 July 2026 and 30 June 2027.

Under the revised guidelines, alternative cash assistance for export-oriented domestic textiles has been maintained at 1.5%, while an additional 0.5% special incentive for textile exports to the eurozone will continue.

Small and medium-sized enterprises (SMEs) in the ready-made garment (RMG) sector will continue to receive an additional 3% incentive, while exporters expanding into new products or new markets in the textile sector will be eligible for 2% support. A special cash incentive of 0.3% for the RMG sector has also been retained.

The government has also maintained strong support for agriculture and jute exports. Agricultural and processed agricultural products, as well as potato exports, will continue to receive a 10% incentive. Diversified jute products and leather goods will each receive 10%, while handicraft exports will remain eligible for 6% cash assistance.

Among emerging sectors, software and IT-enabled services (ITES) exports will continue to receive a 6% incentive, while freelancers will be eligible for 2.5% support. Pharmaceutical exports will receive 6%, while active pharmaceutical ingredients (API) exports will qualify for 5% cash assistance.

The incentive rates for ship exports and furniture exports have also been kept unchanged at 6% and 8%, respectively.

Bangladesh Bank said applications for export incentives must be audited by audit firms approved by the central bank. All other conditions and guidelines stipulated in previous circulars regarding the disbursement of export incentives will remain in force.

The number of beneficiary owner (BO) accounts -- the depository accounts investors must hold to trade shares in the stock market -- has nearly halved over the past decade, as a dry primary market and an unattractive secondary market pushed investors away.

BO accounts stood at 16.75 lakh at the end of the recently concluded fiscal year 2025-26, down from 31.53 lakh on July 1, 2016, according to Central Depository Bangladesh Ltd (CDBL) data. Such account holders now make up around 0.98 percent of Bangladesh’s population, compared with over 9 percent in India.

“Naturally, investors will remain in the market only when they are assured of earning a reasonable return. We have failed collectively to ensure that, so investors left the market,” said Saiful Islam, president of the DSE Brokers Association (DBA).

Investors who entered the market over the past 10 years now face average losses of nearly 50 percent, he said, as prices of many stocks have fallen by more than half over the decade and many companies have failed to pay dividends.

Islam added that investor protections have been inadequate and corporate governance has deteriorated to such an extent that many investors have suffered losses through certain brokerage houses and asset management companies.

Since 2020, five brokerage houses -- Salta Capital, Moshihor Securities, Banco Securities, Crest Securities and Tamha Securities -- were involved in the embezzlement of around Tk 370 crore combined.

Several banks and non-bank financial institutions have also come close to collapse, compounding investor losses, the DBA president said.

As a result, new investors are reluctant to enter the market while many existing ones have gradually exited, he added.

Furthermore, he noted that many BO account holders keep accounts open solely to apply for initial public offerings (IPOs), but no IPOs have been launched in the past two years, and earlier offerings were generally of poor quality.

Even after BO account maintenance fees were reduced, new account openings remain weak due to the absence of IPOs from fundamentally strong companies, Islam added.

No companies raised funds through IPOs in the last two fiscal years, according to the Dhaka Stock Exchange (DSE). Nine companies raised Tk 841 crore in FY24, and six companies raised Tk 641 crore in FY23. In FY22, eight companies raised Tk 674 crore, while FY21 saw a record 16 companies raise Tk 1,684 crore.

Under these circumstances, stock brokers want to bring 50 lakh investors into the capital market during the tenure of the current government, the DBA President said.

This, however, can only be achieved by bringing quality IPOs to the market, ensuring attractive returns for investors, strengthening corporate governance, and establishing a healthy and well-functioning capital market, he noted.

“We have already discussed these issues with the new commission. Since the reasons behind the market’s poor performance are well known to everyone, and the commission has assured us that these problems will be addressed, I am hopeful that our vision will eventually become a reality,” he said.

Speaking at a DBA event last week, Masud Khan, chairman of Bangladesh Securities and Exchange Commission (BSEC), said the regulator realises the difficulties companies face in listing, and is now trying to ease the process.

“We are going to simplify these rules significantly through amendments,” he said.

As many as 44 closed, loss-making or partly operational state-owned enterprises are ready to welcome private investors as the government seeks to revive idle industrial assets and attract fresh investment.

“We are inviting investors to partner in reviving state-owned enterprises through private sector investment,” Ashik Chowdhury, executive chairman of the Bangladesh Investment Development Authority (Bida), announced yesterday as the authority unveiled details of the factories.

The sites cover about 10,000 acres, and most already have gas, electricity and other essential infrastructure in place.

Businesses will be able to use idle land and underused assets through a range of investment models, including local and foreign investment, joint ventures, public-private partnerships and other strategic arrangements.

Officials said the sites offer opportunities for investment in electric vehicles, green steel, lithium batteries, packaging paper, agro-processing, textiles, chemicals, logistics and renewable energy.

“This offers a win-win opportunity: businesses can expand using ready industrial facilities, while the government benefits from increased employment and reduced fiscal pressure,” said Bida Executive Chairman Ashik.

At a meeting with prominent industrialists and business leaders last month, Prime Minister Tarique Rahman assured both domestic and foreign investors of full cooperation and policy support to revive the factories.

The factories fall under five state corporations -- Bangladesh Chemical Industries Corporation (BCIC), Bangladesh Sugar and Food Industries Corporation (BSFIC), Bangladesh Steel and Engineering Corporation (BSEC), Bangladesh Textile Mills Corporation (BTMC) and Bangladesh Jute Mills Corporation (BJMC).

They span major industrial sectors and are spread across the country’s major industrial belts.

Under the Bangladesh Steel Engineering Corporation, there are four industries, with three being operational but having unused land.

Of the 10 units under the Bangladesh Chemical Industries Corporation (BCIC), four factories are closed and two have become sick.

Of the 13 mills under the BSFIC, five are closed while the rest are operational.

In the case of the 13 mills under the BTMC, the tender process is underway for running most of the factories under a public-private partnership. The BJMC has five closed mills that have investable land with old structures.

The premises of two factories -- Latif Bawany Jute Mills Ltd and Karim Jute Mills Ltd -- are being converted into economic zones under the BEZA. The areas of two mills could be used for urban development, according to Bida.

Of the investment opportunities identified so far, only BCIC has disclosed a quantified investment pipeline, estimated at Tk 54,685 crore. The Ministry of Industries says the total investment potential across all state-owned enterprises runs into several billion dollars.

According to Bida, some assets could be revived for their original purpose, while others may be repurposed for industries that reduce import dependence or boost exports.

Ashik said investors would be offered transparent investment structures, faster approvals and coordinated government support.

He said the government believes the private sector is better placed to operate commercial enterprises efficiently, while the state should focus on facilitating investment rather than competing with private businesses.

Officials said ownership of the industrial units would remain with the government, with private sector participation taking place through lease and rental arrangements.

Mohammad Sabbir Awwal, additional chief engineer of Bangladesh Steel and Engineering Corporation, said the government plans to attract private investment to make productive use of idle land and underused assets while retaining public ownership of the enterprises.

He acknowledged that private investment procedures are often lengthy but said efforts are under way to speed up approvals.

According to Awwal, Steel and Engineering Corporation has identified investment opportunities at three operating enterprises: Progoti Industries Limited, Eastern Cables Limited and Atlas Bangladesh.

Around 10 acres at Progoti’s Sitakunda facility and more than 6 acres at Atlas have remained unused for years, while Eastern Cables also has substantial idle land.

The corporation is also seeking investors for a proposed green steel mill in Bogura through joint venture or public-private partnership arrangements, said Sabbir. Several business groups have expressed preliminary interest, although no formal commitments have yet been made.

Selim Raihan, executive director of the South Asian Network on Economic Modeling (Sanem), said Bangladesh’s previous experience with public asset disposal and privatisation underscored the need for a transparent process.

“I believe there is a need to put unused land to more productive use. However, the process must be transparent, especially given that our past experience has not been very encouraging,” he said.

According to Raihan, industrial land has often been diverted to purposes unrelated to industrial development, undermining the original objectives of such initiatives.

He argued that investors should be selected through a competitive process based on efficiency, capability and long-term business plans, and that investment decisions should align with a broader national strategy for industrialisation.

“In many countries, public sector enterprises operate efficiently through innovative management practices and public-private partnerships. These are areas we should explore,” he said.

Khodaker Golam Moazzem, research director at local think tank Centre for Policy Dialogue (CPD), said the initiative could attract investors because many state-owned industrial sites already have land, gas, electricity and other essential infrastructure.

However, he cautioned that investors would need long-term policy certainty before committing capital.

He also noted that much of the infrastructure at state-owned industrial enterprises is outdated and may have to be demolished or modernised to accommodate new investment.

Rather than requiring investors to revive closed factories, the government should allow them to establish industries that are economically viable and environmentally sustainable, he said.

Moazzem pointed out that many industrial sites, once located outside urban centres, are now surrounded by densely populated areas, making commercial or alternative industrial uses more practical in some cases.

He said the government must ensure that the assets offered are free from legal disputes, financial liabilities and outstanding obligations to banks, workers and other stakeholders.

“Without such assurances, private investors are unlikely to show interest,” he said.

At the end of the 2025-26 fiscal year, Bangladesh's capital market saw a 25% rise in foreign portfolio investors' stock trading activity, both buying and selling, driving total foreign stock turnover to a four-year high.

Yet the market continued to suffer a net capital outflow as foreign investors ultimately pulled more money out of equities than they put in, according to market data and officials.

Although the overall market turnover rose by nearly Tk1,000 crore year-on-year to Tk4,943.09 crore in FY26 from Tk3,943 crore in the previous fiscal year, foreign investors remained net sellers for most of the year.

The Dhaka Stock Exchange (DSE) data showed that foreign stock turnover in last fiscal year hit a four-year high, matching levels not seen since FY22.

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Heavy foreign selling ahead of the February national election, driven by political uncertainty and macroeconomic concerns, was followed by a brief rebound in inflows after the BNP-led government took office.

However, the momentum faded with the outbreak of the Iran-US conflict, which triggered another wave of foreign selling.

Market insiders attribute this shift to foreign portfolio investors pulling funds from Asian markets to concentrate on highly regulated capital markets, leading them to retreat from Bangladesh.

"Despite increased trading activity, foreign investors remained net sellers for most of the fiscal year, with particularly heavy selling pressure in June," a DSE official said on condition of anonymity.

"Following the assumption of office by the new BNP-led government, foreign portfolio investment in stocks surged as overseas investors poured funds into the market.

However, expectations of sustained foreign inflows faded after the beginning of the US-Iran war, the official added.

"Foreign investors' trading activity has picked up, but their selling volumes still exceed purchases, although the selling pressure has eased somewhat in recent months," said Saiful Islam, president of the DSE Brokers Association (DBA).

He said concerns over Bangladesh's vulnerability to energy price shocks during the Iran-US conflict prompted foreign investors to cut their exposure, adding that participation could recover once geopolitical tensions ease.

Saiful Islam also identified the capital gains tax regime and its calculation method as major impediments to attracting foreign investment, saying the DBA has repeatedly raised the issue with regulators.

"A new commission, comprising a chairman and three commissioners, has taken charge, and we hope that if it introduces initiatives to attract foreign investment, overseas investors will return to the market," he added.

A senior brokerage official said foreign investors have been pulling money from several Asian markets, including Bangladesh and India, to increase investments in developed markets.

"They are moving away from riskier markets and shifting to highly regulated ones. In 2025, foreign investors also withdrew a record amount of capital from the Indian stock market," the official added.

According to a Reuters report, foreign portfolio investors withdrew a record 1.6 trillion rupees ($18 billion) from Indian equities in 2025 amid valuation concerns, weak earnings, geopolitical risks and worries over steep US tariffs on Indian exports.

A previous TBS report showed that foreign capital outflows from Bangladesh's stock market hit a new high in May as overseas investors aggressively cut holdings in blue-chip and fundamentally strong stocks.

Amid escalating geopolitical tensions in the Middle East and persistent domestic economic challenges, foreign investors sold shares worth Tk161 crore during the month, while fresh purchases fell to just Tk6 crore.

The sharp imbalance underscores growing risk aversion among global fund managers, who are increasingly favouring liquidity and safe-haven assets over exposure to frontier markets.

The selling was concentrated in blue-chip and fundamentally strong stocks, according to DSE data.

Regulatory panacea works little to resuscitate investment and economic expansion as formal private credit growth stays almost stagnant in signs of prolonged slowdown in Bangladesh's private-sector-led economy.

To breathe life into the $500-billion-plus economy after months of sluggishness, Bangladesh Bank (BB) has taken up numerous remedial measures, including a stimulus package involving Tk 600 billion to revitalise the economy by way of reopening the stalled manufacturing bases across the country,

But the stimulating regulatory moves have worked little to regenerate confidence in the private-sector players yet, as is reflected in the recent data with the central bank.

According to the BB, the private-sector-credit growth reached 4.98 per cent by end of May last -- the third-lowest monthly count in the history of Bangladesh. The previous lowest growth recorded in the previous two months was 4.72 per cent in March and 4.75 per cent in April.

In fact, growth in private-sector credits has hovered around single digits since August 2024, reflecting prolonged sluggishness in the economy, which is largely private-sector-led.

Even in the just-concluded half-yearly monetary policy statement (MPS) for January-to-June period, the central bank made a private-sector-credit-growth projection at 8.50 per cent by end FY'26 but the actual level was much lower.

Such reluctance in investment credits is attributed to banks becoming more cautious amid higher non-performing loan (NPL) regime and private borrowers losing their credit appetite for perceived multiple anti-business factors, like energy crisis, higher cost of funds, exchange-rate shocks, and the existing taxation policy which is deemed not investment-friendly.

Seeking anonymity, a BB official says the regulator, as part of its plan to promote growth and employment, provided policy perks to the struggling borrowers by ways of allowing them to get regularized just paying 2.0 per cent of the outstanding loans as down payment.

Later, he recounts, the central bank eased the down-payment rules in February last as many of such borrowers were facing difficulties to pay 2.0 per cent. Under revised instructions, half of the stipulated amount must be paid at the time of approval, with the remaining 50 per cent due within six months from the date of effect.

"Despite these facilities, the credit growth for private sector has not got momentum yet," he says.

But the central banker appeared optimistic about a spur in the credit demand in the days ahead as the banking regulator announced the Tk 600-billion stimulus package in May last to boost investment.

Simultaneously, the BB official says, the central bank also capped deposit-lending rate spread within 4.0 per cent last month, which will help reduce the cost of formal credits for businesses amid contractionary monetary-policy regime.

While unveiling MPS for July-December of this year on June 30, BB Deputy Governor Dr Md. Habibur Rahman said the central bank projected the private-sector-credit growth to be increased to 5.50 per cent by June last.

President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Mohammad Hatem says entrepreneurs have been hit too hard to survive on the market under these prevailing extreme business-and investment climate.

He lists multiple factors, like ongoing prolonged energy crisis, higher borrowing costs and 'anti-business taxation policy', which make survival of the businesspeople difficult.

"Under such circumstances, who dares think of business expansion? I don't know how the growth (4.98 per cent) has happened and who are the borrowers? Will they be able to repay the loans? I have enough doubt," he says.

Chairman of Bangladesh Association of Banks (BAB), an apex body of bank shareholders, Abdul Hai Sarker mentions many factors which discourage the investors from putting their hard-earned money in productive ventures.

He says the supply of power and gas to the industries is uncertain.

"By the end of the day, you need power. Everything will become standstill without this basic thing."

Mr. Sarker, a business leader and also Chairman of Dhaka Bank, says a concerning matter is that the government is facilitating foreign investment by developing special economic zones (SEZs) where investors are getting integrated facilities.

But, he adds, local investors who set up manufacturing bases outside the SEZs in a scattered way faced many difficulties in securing such facilities, which badly affected their competitiveness.Bangladesh Investment Guide

"Yes, we want foreign investment but the government should also look at the local investors so that they can remain competitive with their global partners," he told The Financial Express about perceived local-foreign divide.

Managing Director and Chief Executive Officer of Mutual Trust Bank (MTB) PLC Syed Mahbubur Rahman notes that the volume of LC (letter of credit) opening has dropped significantly in recent times because of persisting prolonged economic sluggishness.

Because of the low credit appetite from the private sector, he notes, the commercial banks have intensified their concentration on investing in state-secured government securities -- treasury bills and bonds -- to make some gains amid the ongoing slowdown in economic activity.

The experienced banker thinks the country is basically heading for stagflation as job creation is not taking place and growth is slowing down while inflationary pressure keeps rising.

Chairman of Policy Exchange Bangladesh Dr M Masrur Reaz says the private-sector-credit growth remains a matter of concern for the country for more than a year whereas the growth was over 6.0 per cent.

"Now, it dropped below 5.0 per cent. It goes to severe worrying level from concerning level," he notes.

About the reasons, the economist says Bangladesh under the immediate- past interim government saw scanty reform activities in streamlining trade-and-investment ecosystem here.

As a matter of fact, the business environment significantly weakened in recent times and the recent

crisis in the Middle-Eastern countries worsened the situation further,

according to him.

=The Dhaka Stock Exchange (DSE) has drafted an amendment to its listing regulations to allow direct listing of private and multinational companies through a watered-down procedure.

The board of the premier bourse has approved the draft and sent it to the Bangladesh Securities and Exchange Commission (BSEC) for approval.

Direct listing means the listing of any non-listed securities or re-listing of any delisted securities, including those traded in the Over-the-Counter (OTC) market, on the exchanges through offloading existing shares instead of issuing new shares through a public offering.

The listing regulations effective between 2006 and 2015 allowed direct listing of both private and public entities. But a number of private companies, including Khulna Power Company Ltd, offloaded shares in the market at inflated prices, giving undue benefits to sponsor-directors. That prompted imposition of an embargo on direct listing of private firms through an order.

Hence, the withdrawal of the restriction is required prior to amending the listing regulations for the direct listing of private and multinational entities.

The BSEC can repeal its own directive to remove the restriction, said a senior official of the securities regulator.

On the listing of multinational firms, a DSE official said the incumbent commission of the securities regulator has members with experience of working with foreign companies.

"So, they are likely to give inputs to the draft amendment to facilitate the listing of multinational organisations," the DSE official said.

In the draft amendment, the DSE has also proposed removing unnecessary compliance burdens from the listing procedure.

At present, a company willing to enter the secondary market through the direct listing method must have a minimum paid-up capital of Tk 300 million. The DSE wants this rule to be relaxed.

The existing regulations also require a company to show profits in three years out of the immediate past five accounting or financial years with a steady growth pattern. In the draft amendment, the DSE has eased this provision, proposing a requirement of profits for at least two out of five years ahead of the listing. It also suggested flexible rules for share offloading. Presently, a company is required to offload at least 10 per cent of its shares within 30 days of listing. The DSE is in favour of relaxing this provision so that companies can offload shares without feeling undue pressure.

The DSE expects that the simplified listing procedure, if approved, will attract non-listed companies.

On simplifying the listing procedure, DSE Managing Director Nuzhat Anwar said a company under the existing rules needs to submit "a pile of documents" along with the IPO proposal to the securities regulator and stock exchanges.

If the proposed amendment is passed, online submission of documents through any of the bourses' platforms will suffice. The relevant bourse will scrutinise the documents and submit them to the securities regulator.

The existing requirement of dual listing will also be waived. Issuers will have the freedom of choosing one exchange for listing, which will cut down the cost of listing.

"The BSEC chairman has told us that the regulator will facilitate the job of simplifying the listing procedure through more discussions with the Dhaka exchange and issue managers," said Ms Nuzhat.

Government authorities have identified 19 of the state-owned enterprises (SOEs) that are posing a "very high financial risk" with a combined liability burden of Tk 2.2238 trillion.

A recent assessment by the Ministry of Finance (MoF) has dug out the downside of the public-sector corporates, underscoring urgent reforms.

The findings signify mounting fiscal pressures from the country's public corporate sector while the government finds it difficult to make two ends meet in financing national budget.

A review, conducted by the Finance Division, has found many an SOE financially vulnerable despite their strategic importance to the economy.

Bangladesh currently has 122 state-owned enterprises operating across key sectors, including energy, transport, manufacturing, SME development, and public services.

Bangladesh Power Development Board (BPDB) accounts for the largest share of liabilities, with an outstanding debt buildup worth Tk 1.784 trillion. Also in the power sector, Gas Transmission Company Limited (GTCL) carries liabilities of Tk 141.31 billion.

The review has found the financial performance of many SOEs sliding continuously, with overall cost-recovery ratios remaining far below sustainable levels.

Operating revenues are insufficient to fully cover operating costs, while returns on assets and equity remain persistently low, reflecting weak operational efficiency and limited financial viability.

The assessment has also highlighted sizeable contingent liabilities amounting to Tk 345.42 billion.

These represent debt obligations for which the government has provided sovereign guarantees to domestic and foreign lenders.

"Should the borrowing entities fail to meet their repayment obligations, the government would be required to assume responsibility for the liabilities, increasing fiscal risks," the review report cautions.

In addition to loan guarantees, many SOEs continue to rely on substantial budgetary subsidies to sustain operations that further builds up pressure on public finances.

The Finance Division recognizes that SOEs play a critical role in supporting economic development, delivering essential public services and advancing strategic national objectives.

Several of the enterprises contribute directly to energy security, food security, infrastructure development and trade facilitation, making them integral to the country's long-term development agenda.

However, the ministry warns that persistent financial weaknesses across a number of enterprises require continued monitoring and sustained policy attention for a redress.

Without structural reforms, the deteriorating financial position of loss-incurring SOEs could increase fiscal vulnerabilities and reduce the government's capacity to allocate resources to other development priorities.

The report stresses that strengthening corporate governance, enhancing operational efficiency and improving financial sustainability should remain key priorities for policymakers. It says better financial management, stronger accountability and improved commercial performance would help maximise the public value generated by state-owned enterprises while containing the government's fiscal exposure.

The Finance Division adds that building a transparent, accountable and financially sustainable SOE sector is essential for safeguarding macroeconomic stability.

"A stronger public-enterprise sector," it recommends, "would contribute to greater economic resilience, support inclusive growth and help Bangladesh achieve its long-term sustainable- development objectives while reducing the burden on the national budget."

Washington is seeking to move away from unilateral trade preferences and ineffective aid towards a fairer, more reciprocal economic relationship with Dhaka centred on trade, investment and long-term cooperation, US Ambassador to Bangladesh Brent Christensen said yesterday.

“As I’ve said before, America First does not mean America alone,” he said, adding that the US values partnerships that advance mutual interests and benefits. “We want a genuine partnership -- one that creates opportunities for Americans and Bangladeshis alike.”

Bangladesh has the potential to become an increasingly important economic hub due to its dynamic private sector and young workforce, he said at an event marking 250 years of American independence, jointly organised by the US Embassy and the American Chamber of Commerce in Bangladesh (AmCham) at Sheraton Dhaka.

He described the US-Bangladesh agreement on reciprocal trade and investment as an important step towards expanding economic cooperation, boosting investment, creating jobs and facilitating skills transfer.

The ambassador said Bangladesh’s economic potential can be further unlocked through reducing bureaucracy, tackling corruption, encouraging competition and creating a more business-friendly environment.

He also emphasised growing cooperation in energy and said there is significant potential for collaboration in technology, the digital economy, healthcare, defence, security and investment.

Mahdi Amin, adviser to Prime Minister Tarique Rahman, said the BNP-led government is committed to creating a more attractive environment for foreign direct investment (FDI), pledging policy support, deregulation and a level playing field for international investors.

Foreign investment, he said, plays a critical role in generating employment, boosting revenue collection and accelerating growth through technology transfer and innovation.

Amin cited Bangladesh’s large youth population and expanding domestic market as key draws for investors, and pointed to profit repatriation, tax incentives, economic zones and high-tech parks as measures the “pro-business” administration has taken to attract capital.

He called for stronger Bangladesh-US trade and investment ties and urged more American companies to explore opportunities in the country.

Syed Mohammad Kamal, AmCham president, said the chamber has contributed significantly to Bangladesh’s economic growth over the past three decades, supporting investment and knowledge transfer in sectors including telecommunications, the digital economy, garments, medical equipment and aviation.

“AmCham has always tried to be the first point of contact for US investment coming to Bangladesh, and we will continue doing that,” he said, adding that the inclusion of the embassy’s commercial adviser on AmCham’s executive committee would help generate new initiatives to expand business engagement.

Kamal said the chamber remains committed to creating a conducive environment for investment and facilitating stronger connections between US businesses and Bangladesh’s private sector.

Muhammad Ala Uddin Ahmad, vice-president of the AmCham, said the chamber would continue to serve as a bridge between the two countries while promoting a competitive and future-ready Bangladesh.As the US marks the 250th anniversary of its independence, he said, both nations should look ahead with confidence to a new chapter of partnership, friendship and shared success.

The Bangladesh Securities and Exchange Commission (BSEC) plans to abolish the requirement for listed companies to submit quarterly financial statements and instead introduce mandatory half-yearly financial reporting as part of broader reforms to align Bangladesh's capital market with international standards.

Announcing the move at a programme organised by the DSE Brokers Association (DBA) at the DSE Tower on Thursday (2 July), BSEC Chairman Masud Khan said the existing reporting framework places an unnecessary compliance burden on listed companies.

"We will no longer ask companies to submit three-month financial reports. We will require half-yearly reports, and gradually our reporting framework will be aligned with international standards," he said.

Recalling his experience in corporate affairs, Khan said companies were often required to respond to numerous regulatory queries after submitting quarterly reports.

"When I was responsible for corporate affairs, we had to report every quarter to the regulators – the Dhaka Stock Exchange and the BSEC. After submitting reports, we would receive 10, 20 or even 30 follow-up queries. I have experienced that pain firsthand. Standing here today, I can say this will no longer continue," he said.

The BSEC chairman also announced plans to amend the country's initial public offering (IPO) rules. He said the commission would consult the Dhaka Stock Exchange (DSE), the Institute of Chartered Accountants of Bangladesh (ICAB) and the Bangladesh Merchant Bankers Association (BMBA) before finalising the reforms.

Khan said the regulator is also working to allow pension and gratuity funds to invest in the capital market, noting that these funds are currently invested mainly in national savings certificates and treasury bonds.

He added that the commission had found many such funds operating outside existing trust regulations and would take steps to bring them into compliance.

The BSEC chief also said investors would be allowed to file cases directly with the Capital Market Tribunal after the relevant rules are amended.

"At present, no one can file cases directly with the tribunal because the supporting rules are not in place. We will amend the rules," he said.

During the programme, DBA Senior Vice-President Moniruzzaman urged the regulator to address issues including script netting, introduce a T+0 settlement mechanism and reform member margin requirements.

He also highlighted differences in collateral requirements between the Dhaka and Chittagong stock exchanges, saying the Chittagong Stock Exchange accepts cheques as collateral while the DSE requires members to deposit the full amount. He called for replacing the existing Tk10 crore free limit with limits based on members' trading capacity.

DBA President Saiful Islam also urged the BSEC to review the DSE's demutualisation scheme to improve transparency in the exchange's operations.

The programme was attended by BSEC Commissioners Tanwir Habib Rahman, Nahid Mahtab and Md Nafeez Al Tarik, DSE Chairman Mominul Islam and other capital market stakeholders.

Prime Minister Tarique Rahman has asked the concerned officials to quickly complete the process of reopening loss-making and closed state-owned factories through domestic and foreign investment.

He gave the directive in a meeting held to review the procedural progress for resuming operation of the factories at his Tejgaon office today (4 July), said PM's deputy press secretary Hasan Shiplu.

During the meeting, officials reported that many private companies have expressed interest in investing in those factories.

The proposals submitted by the companies for revival of the industries will now undergo feasibility assessments.

The premier emphasised that the entire process must be carried out transparently. He also instructed officials to avoid unnecessary delay and complete the process as quickly as possible.

Industries and Jute and Textiles Minister Khandakar Abdul Muktadir, State Minister for Jute and Textiles Shariful Alam, PM's Finance and Planning Adviser Rashed Al Mahmud Titumir, Bangladesh Investment Development Authority (BIDA) Executive Chairman Ashik Chowdhury, Prime Minister's Principal Secretary ABM Abdus Sattar and secretaries of the relevant ministries and senior officials from various institutions under the ministry of Industries were present.

Mohammad Mohsin has been elected as the president of the Bangladesh Ship Breakers and Recyclers Association (BSBRA).

The election was held at the Radisson Blu Chattogram Bay View in the port city yesterday.

Mohammad Selim Uddin was elected senior vice-president, while Md Nuruddin Rubel and Gazi Mokarram Ali Chowdhury, respectively, were elected vice-presidents.

Election Board Chairman Md Aftab Uddin announced the results after the vote count.

A total of 71 members cast their ballots out of 84 eligible voters. Some 14 candidates contested 11 executive committee posts, while the presidency was decided uncontested.

The newly elected executive committee also includes Md Jahedul Haque, Taslim Uddin, SM Nurun Nabi, Md Ferdous Wahid, Obaida Asadi, Hosainul Arefin and AKM Saifullah Sayeed.

The election was originally scheduled for October 25 last year but was postponed after the then Election Board resigned.

Listed textile manufacturer Paramount Textile has decided to convert its Tk293 crore investment in subsidiary Dynamic Sun Energy Pvt. Ltd, a 100MW solar power project, into preference shares as part of restructuring its investment.

According to a stock exchange disclosure, Tk200 crore will be converted into convertible non-redeemable preference shares, while the remaining Tk93 crore will be converted into non-convertible redeemable preference shares.

The company said it had made substantial investments in Dynamic Sun Energy, in addition to its equity contribution, to develop the solar project. Paramount Textile holds a 60% stake in the subsidiary.

Under the restructuring, the Tk200 crore investment will be converted into preference shares with a face value of Tk10 each, carrying an annual dividend of 9%. These shares can be converted into ordinary shares within five years from the date of allotment.

The remaining Tk93 crore will be converted into non-convertible redeemable preference shares with the same 9% annual dividend and will be redeemed within five years.

Preference shares generally provide investors with fixed dividend income. Convertible non-redeemable preference shares can be exchanged for ordinary shares but do not have a fixed redemption date, while non-convertible redeemable preference shares cannot be converted into equity and are repaid after a specified period.

The investment restructuring comes as Paramount Textile continues to diversify into renewable energy. Besides Dynamic Sun Energy, the company has investments in associate Paramount BTrac Energy Ltd, a 200MW HSD power plant.

In March this year, it also decided to invest Tk29 crore in Paramount Solar Limited by acquiring a substantial stake in the company.

Despite weaker sales, Paramount Textile has maintained profitability this fiscal year.

During the first nine months of FY26, its revenue fell more than 15% year-on-year, while net profit edged up to Tk96.81 crore from Tk96.41 crore a year earlier.

The company said operating profit declined 14% because of lower revenue. However, a 250% surge in profit from associate companies to Tk36 crore and a 631% increase in other income to Tk10.81 crore offset the decline.

In the January-March quarter, revenue dropped 30% to Tk245.71 crore. Although operating profit fell 25%, quarterly net profit rose 6% to Tk52.65 crore, supported by Tk15.79 crore in earnings from associate companies.

For FY25, Paramount Textile posted a net profit of Tk116.06 crore with earnings per share of Tk6.48 and declared a 12% cash dividend for shareholders.

Trade in goods between the European Union and the US reached a record €875 billion ($1.00 trillion) last year despite tariffs, but the figures mask significant economic damage, notably to Germany’s auto sector, a study published on Friday found.

The research by the German Economic Institute, or IW, found a 7.7 percent rise in EU exports to the US to €580 billion, while US imports into the EU climbed 2.2 percent to €295 billion, pushing the EU’s trade surplus to nearly €285 billion.

The report attributed some of the increase to front-loading of exports ahead of tariffs that took effect in April and said European manufacturing had suffered.

“This first impression is misleading,” said IW economist Samina Sultan. EU car and parts exports to the US fell 20.4 percent in 2025, with Germany, which accounts for nearly two-thirds of EU auto exports to the United States, posting an 18.9 percent drop.

Ireland bucked the trend with a 52.7 percent surge in exports, driven by tariff-exempt pharmaceutical and chemical products. Most EU member states recorded a decline in their goods exports to the US. Apart from Ireland only the Czech Republic (+5.1 percent), Italy (+7.2 percent), Denmark (+10.6 percent) and Finland (+10.8 percent) reported growth.

TRANSATLANTIC SERVICES ALSO HIT A RECORD

Transatlantic services trade also hit a record €865 billion, though the EU ran a €178 billion deficit in that category. “The transatlantic trade relationship is therefore much more balanced, when considering both goods and service trade,” the study said, contrasting the EU deficit in services and the surplus in goods.

Intellectual property fees - covering software licences, patents and trademarks - accounted for more than 40 percent of EU service imports from the US, rising 13.7 percent. Although the services sector has so far avoided the impact of US tariffs, the trade conflict has had a negative effect.

EU imports of travel services from the US fell by around 8 percent. “This decline is likely attributable to the reduced number of European tourists in the US last year,” said co-author Galina Kolev-Schaefer.

The study said the Turnberry trade deal between the EU and the US asymmetrically benefited the US, but still it was a workable solution that should be honoured by both sides. “New tariff threats would cause new uncertainty that only hampers business activities on both sides of the Atlantic,” the IW said.

Finance and Planning Minister Amir Khosru Mahmud Chowdhury today (4 July) called on citizens to embrace cashless transactions as part of the government's efforts to build a fully digital economy.

Speaking as the chief guest at a programme titled 'One Country, One QR: Bangla QR for Payments' organised by Pubali Bank PLC's Principal Office in Chattogram, the minister said the government wants to establish a digital ecosystem all types of transactions - from government services to everyday shopping – can be completed online and in real time.

"We are digitising the entire country. Everything will be online," he said. "This will improve transparency in service delivery, reduce corruption and eliminate the need for people to visit government offices repeatedly to access services."

The minister said digitalisation cannot be implemented partially and that all financial transactions must be brought under a unified digital ecosystem to modernise the economy.

"When the entire system becomes digital, every transaction will leave a record, making economic activities more transparent and efficient," he said.

He said a cashless payment system would eliminate the need to carry cash, even in traditional markets, as people would be able to make payments within seconds by scanning QR codes with their smartphones.

"This will remove the hassle of counting cash, carrying change and handling physical money," he added.

Amir Khosru said younger generations, being more familiar with technology, would adapt quickly to digital payments. Although older citizens might initially find the transition challenging, he said cashless transactions would eventually become the easiest and fastest payment method for everyone.

Referring to global trends, the minister said many advanced economies are rapidly moving towards cashless payment systems.

Recalling his recent visit to China, he said cash transactions have become increasingly uncommon there, with QR code-based payments now dominating everyday transactions.

Bangladesh is moving in the same direction, he added.

Speakers at the programme said Bangladesh Bank has introduced the interoperable Bangla QR payment system nationwide under its "One Country, One QR" initiative to reduce reliance on cash.

The platform allows customers to make payments by scanning a single QR code using the mobile application of any participating bank or mobile financial service (MFS) provider.

According to the organisers, Bangla QR enables customers to pay bills directly from their bank or MFS accounts without paying any additional charges. The service is being expanded gradually across businesses nationwide in line with Bangladesh Bank's directives.

The programme was chaired by Mohammad Abdur Rahim, general manager of Pubali Bank PLC's Principal Office in Chattogram. Senior officials of the bank, business leaders, prominent citizens and representatives of the print and electronic media also attended the event.

Vietnam’s economy expanded at a forecast-busting 8.4 percent in the second quarter, according to official data Friday, as it overcame import disruptions and higher fuel costs stemming from the Iran war.

The country has long been a success story among Asian economies, and its communist government is targeting double-digit expansion over the next five years.
The April-June on-year growth -- released by the General Statistics Office -- was far better than the 7.0 percent estimated in a survey by Bloomberg and an acceleration from the previous quarter’s 7.9 percent.

The economy expanded eight percent last year, making it one of the best performers in the world despite being hit with tariffs from its largest export market, the United States.

Growth for the first half of 2026 came in at 8.2 percent thanks to a strong performance in its manufacturing and construction sectors.

Standre Bezuidenhout, at law firm DFDL, said the country “has been curiously effective at turning geopolitical and supply-chain shifts into investment opportunities”.

Vietnam was “attracting manufacturing, deepening trade integration, and building a reputation as a reliable capital destination”, he said.

The country’s “ability to outperform expectations at a time when many economies are revising growth projections downward” suggests it is “increasingly becoming a beneficiary of global uncertainty, rather than a victim of it”, he added.

Exports in January-June jumped 21 percent to hit $266.52 billion, while foreign investment for the same period jumped 61 percent to $34.65 billion.

The World Bank upgraded Vietnam to an upper-middle-income country this week, citing strong sustained growth.

The country's premier bourse, the Dhaka Stock Exchange (DSE), extended its winning streak last week as the benchmark index hit a 22-month high, fueled by a massive surge in trading activity and renewed investor confidence.

The DSEX, the broad index of the Dhaka bourse, gained 91 points or 1.6% to settle the week at 5,743, its highest level since late 2024.

Market participation saw a dramatic spike, with the daily average turnover jumping by 51% to reach Tk1,433 crore, compared to Tk949 crore in the previous week. On the final day of the fiscal year, turnover even crossed the Tk1,500-crore mark for the first time in two years, indicating a robust return of liquidity to the secondary market.
According to the weekly market review by EBL Securities, the benchmark index reverted to its gaining streak as sentiment remained buoyed by improving market outlook expectations and easing geopolitical concerns. A major catalyst for the rally was the approval of the Finance Bill 2026, which included supportive policy measures and preserved tax rebate opportunities for capital market investors, significantly enhancing the appeal of equities.

The week commenced on a firm footing, with the DSEX surpassing the crucial 5,700-mark after nearly 22 months. This momentum was sustained by broad-based accumulation in perceived undervalued scrips. Although the market faced a mild correction in the final session of the week due to profit-booking after six consecutive days of gains, analysts noted that participation remained resilient on both sides of the trading fence, EBL Securities added.

The blue-chip segment also mirrored the positive trend, with the DS30 index rising by 30 points to close at 2,162. Out of the 391 issues traded during the week, 272 advanced, 90 declined, and 29 remained unchanged.

Sector-wise participation showed that investors were most active in the textile sector, which accounted for 13.7% of the total turnover, followed by the banking sector at 12.2% and pharmaceuticals at 11.6%.

In terms of returns, the jute sector led the gainers with a 6.6% increase, followed by the information technology (4.7%) and ceramic (4.6%) sectors.

Individual stock performance was highlighted by Usmania Glass, which emerged as the top gainer with a 29.7% price surge. Other notable gainers included Shyampur Sugar (29.5%) and Zeal Bangla Sugar (24%). On the flip side, BD Thai Aluminium was the top loser, shedding 10%, followed by BD Thai Food and Associated Oxygen.

Farmers harvested a record 1.73 crore tonnes of rice during the last Aman season as they expanded the cultivation of high-yielding and hybrid seed varieties.

Recorded in fiscal year 2025-26, the rain-fed crop was grown on 57.36 lakh hectares, which was 2.19 percent higher year-on-year, according to production estimates released recently by the Bangladesh Bureau of Statistics (BBS).

The acreage under broadcast and local rice varieties cultivated during the rainy season declined. However, the area under inbred, or high-yielding varieties (HYVs), which account for most of the Aman acreage, increased by 3 percent year-on-year to 46.50 lakh hectares in fiscal year 2025-26.

Hybrid rice acreage grew by 5 percent year-on-year to 3.62 lakh hectares.

"Favourable weather, the use of improved seeds and the proper application of fertiliser have given a boost to Aman production," the BBS said.

Aman rice accounts for roughly 40 percent of annual rice production. Overall output increased by 5.11 percent this year to 1.73 crore tonnes from 1.65 crore tonnes a year earlier, also because of higher yields per hectare.

The surge in rice production during the latest Aman season offset the decline in Aus production in fiscal year 2025-26. Aus, the smallest contributor to rice production, declined by 3 percent, mainly due to reductions in both acreage and yield.

The BBS data showed that total rice production during the Aus and Aman seasons grew by 4 percent year-on-year to 2 crore tonnes.

The agency is yet to release its estimate for Boro, the largest rice crop, harvested during the May-June period of 2026.

In April, the US Department of Agriculture, in its Grain and Feed report on Bangladesh, forecast a marginal decline in Boro production due to lower yields caused by disruptions to irrigation and fertiliser application resulting from fuel and fertiliser shortages.