Bangladesh can transport goods to China within 24 hours by road if it becomes part of the China-Myanmar economic corridor, Commerce, Industries, Textiles and Jute Minister Khandakar Abdul Muktadir said today (28 June).

The minister made the remarks while speaking to reporters after attending a workshop and reception programme for newly enrolled lawyers at the Sylhet District Bar Association.

He said China had already granted duty-free access to all Bangladeshi products, adding that Bangladesh's priority now is to attract more Chinese investment.
Muktadir also said the cabinet had recently approved the establishment of an 800-acre Chinese industrial park in Chattogram, which he expects will help strengthen bilateral economic ties.

Referring to the prime minister's recent visit to China, the minister expressed optimism that Bangladesh would see a significant inflow of Chinese investment in the coming years.

"The prime minister held meetings with the Chinese premier, senior leaders and major investors during the visit. As a result, we expect substantial Chinese investment in Bangladesh, which will also help reduce the trade deficit," he said.Responding to a question about criticism over the management committee of the Hazrat Shahjalal (RA) shrine in Sylhet, Muktadir said no one had been appointed to the committee on political grounds."The committee was formed through due process and in accordance with the rules," he added.Earlier, addressing the reception programme as the chief guest, the minister said lawyers play a crucial role in establishing the rule of law, ensuring justice and maintaining social order.He said a culture of impunity weakens both the rule of law and the social contract, adding that legal professionals are instrumental in protecting citizens' constitutional rights, including equality, freedom from discrimination, the right to life and personal liberty, and freedom of expression.

Muktadir also stressed the need to construct a new building for the Sylhet District Bar Association and establish a modern, regular training system to enhance lawyers' professional skills.

He said continuous training on artificial intelligence (AI), legal research, case analysis and courtroom advocacy would improve lawyers' capabilities and help produce more competent lawyers and judges in the future.

The minister also said he had pledged during the election campaign to make combating online gambling a priority.

He said a new law proposing tougher penalties for online gambling had already been placed before parliament and expressed hope that it would be passed after completing the legislative process.

He also highlighted the government's initiative to establish special tribunals to expedite the trial of drug-related offences.

The programme, chaired by Sylhet District Bar Association President Advocate Golam Yahya Chowdhury (Suhel), was attended by General Secretary Advocate Md Zubayer Bakht Zuber, acting District and Sessions Judge Mohammad Erfan Ullah, Divisional Special Judge M Ali Ahmed, Chief Judicial Magistrate Md Hasam Imam, Senior Judicial Magistrate Sudipta Talukdar, Metropolitan Magistrate Saiful Islam, leaders of the bar association, political figures and journalists.

Bangladeshi agritech startup iFarmer has won a $250,000 award from the OPEC Fund for International Development for helping smallholder farmers gain access to finance, agricultural inputs, advisory services, weather information and markets.

The company received the "Innovation for Development Award" at the OPEC Fund Development Forum, held at Vienna's historic Hofburg Palace on June 23 as part of the organisation's 50th anniversary celebrations, according to a press release issued today.
With the award, iFarmer became the first private-sector organisation and startup from Bangladesh to receive the honour.Since its inception, iFarmer has supported more than 300,000 farmers across Bangladesh through its integrated digital platform, improving access to essential agricultural services.The OPEC Fund for International Development is a development finance institution that provides financial assistance to developing non-OPEC countries.Its annual development award recognises organisations making significant contributions to development."This recognition reflects the immense potential of Bangladeshi innovation to solve global development challenges," said Tahmid Hasan, vice president of revenue at iFarmer."We are honoured to represent Bangladesh on this global platform and remain committed to building resilient food systems by empowering smallholder farmers through technology," he added.iFarmer was the only Bangladeshi organisation among this year's award recipients. The recognition is expected to enhance the company's global visibility and create new opportunities for international partnerships and to scale its impact in sustainable agriculture.

Bangladesh is evaluating China's proposal to establish an economic corridor through Myanmar and has not yet taken any position on the initiative, Foreign Minister Khalilur Rahman said today (27 June).

Speaking at a press briefing at the Ministry of Foreign Affairs in Dhaka on Prime Minister Tarique Rahman's visits to Malaysia and China, Khalilur said, "The primary objective is to improve regional connectivity, reduce transportation costs and transit time, and enhance Bangladesh's competitiveness."

Better connectivity is expected to support industrialisation, boost exports, and strengthen Bangladesh's economic integration with regional markets, he added.

China formally proposed the development of the Bangladesh-Myanmar-China economic corridor during talks between Chinese President Xi Jinping and PM Tarique in Beijing on Friday.

The prime minister returned home from Beijing on Friday, wrapping up his six-day maiden overseas visit.

Bangladesh and China on Friday unveiled an extensive joint communiqué during PM Tarique's visit to Beijing, announcing an upgraded bilateral partnership alongside agreements spanning trade, infrastructure, defence, connectivity and regional cooperation.

Among the key outcomes are China's support for the Teesta River Comprehensive Management and Restoration Project, backing for Bangladesh's aspirations to participate in BRICS as well as become a partner of the Shanghai Cooperation Organisation, plans for new strategic dialogue mechanisms and commitments to deepen cooperation in investment, ports, education and climate action.

During the press conference, the foreign minister said the two countries also discussed strengthening regional connectivity through multimodal transport links connecting Kunming with Bangladeshi ports.

In response to the question regarding what tangible gains Bangladesh achieved from the China visit, the foreign minister said, "We did not go with a begging bowl. This visit was meant to set the direction of the relationship between the two countries. If this is aligned, the rest will follow in the future."

Replying to another question, Khalilur said, "If Bangladesh can utilise Myanmar's existing ports and transport infrastructure, it would significantly reduce the time and cost of importing raw materials and transporting goods."

He continued, "Faster and cheaper logistics would improve Bangladesh's competitiveness, attract greater foreign investment, and make its manufacturing sector more efficient and export-oriented."

Responding to a question, he said the current discussions are focused solely on economic connectivity. "If peace and stability return to Myanmar's Rakhine State in the future, other forms of connectivity could be considered, but that is not part of the current proposal."

At a separate event in Sylhet today, Commerce Minister Khandakar Abdul Muktadir said Bangladesh can transport goods to China within 24 hours by road if it becomes part of the economic corridor.

A total of 17 memoranda of understanding (MoUs) were signed during the PM Tarique's visit to China.

Bangladesh-China ties reach highest level

The foreign minister said Bangladesh and China had agreed to elevate their bilateral ties to the highest level of cooperation.

"The relationship has been upgraded from a 'Comprehensive Strategic Cooperative Partnership' to a 'China-Bangladesh Community with a Shared Future' in the new era, opening a new chapter in bilateral cooperation. The new framework is expected to strengthen political trust, deepen economic cooperation, and reinforce long-term strategic collaboration between the two countries," he said.

"China does not maintain the highest level of bilateral relations with all countries. In Asia, only a handful of countries, including Thailand, Sri Lanka, Cambodia, Pakistan and Indonesia, enjoy such a partnership with China. Bangladesh has now joined that group," he added.

Khalilur said the most significant outcome of the visit was the substantial enhancement of the depth, breadth and quality of Bangladesh-China relations. The two sides also agreed to explore the establishment of a regular "2+2 Dialogue" involving their foreign and defence authorities.

Joint feasibility study on Teesta

The foreign minister said discussions on the Teesta River Comprehensive Management and Restoration Project had advanced significantly.

"For the first time, experts from Bangladesh and China will undertake a joint technical feasibility study. China has indicated that it is prepared to support the project's implementation if the feasibility study demonstrates that it is technically and economically viable," he said.

Asked about the project timeline, Khalilur said it was too early to provide a specific timeframe, as implementation would depend on the findings of the feasibility study.

On the Rohingya issue, he said, "China has pledged to work with both Bangladesh and Myanmar to help expedite efforts to resolve the Rohingya crisis and advance the repatriation process. Discussions among the parties are expected to intensify in the coming months to facilitate progress toward a sustainable solution."

When the mercury rises so do the costs for an economy as productivity melts and growth becomes lethargic, providing an additional challenge to Europe as it struggles with high energy prices.

“Extreme heat is emerging as a structural economic risk, with Europe highly exposed,” wrote the trade credit arm of European insurer Allianz as the continent swelters under its second heatwave of the year.

Europe has a number of weaknesses: an ageing population, dense urban centres with many buildings not built for extreme heat, and just 19 percent of households with air conditioning compared to 90 percent in the United States, the analysts noted.

Heatwaves are becoming frequent as Europe warms faster than other regions of the world, and many scientists consider human activity will cause more extreme weather events.

“France is working in slow mode,” recently observed Patrick Martin, head of Medef, France’s main employers’ organisation.

“Inevitably, it disrupts work and leads to less work being accomplished,” he told BFM television.

Allianz Trade has identified “a critical threshold” of around 30C beyond which productivity losses intensify rapidly.

According to AFP’s calculations more than 100 million people in Europe were set to experience temperatures in excess of 35C on Thursday, and nearly two-thirds of Europeans living where temperatures would surpass 30C.

In a blog post last year the European Central Bank said heatwaves in the spring, autumn and winter can boost economic activity, particularly construction, agriculture and outdoor dining.

“By contrast, heatwaves during the already warmer summers reduce economic activity, as physical exertion outdoors becomes increasingly impaired,” it said. Drops in productivity, the need to shift investment to climate adaptation, and energy price hikes that dampen purchasing power all contribute to a drop in economic activity.

ECB research found that summer heatwaves reduce regional activity of around one percent.

And in contrast to traditional views of a temporary disruption, the ECB found “the reduction in output is prolonged and even intensifies, reaching a trough of 1.5 percent lower after two years”.

The Banque de France’s new governor, Emmanuel Moulin, recently told France Inter radio that “there is clearly a negative effect on growth in the medium term”.

Extreme heat, which can provoke a hike in energy prices thanks to higher demand due to air conditioning, can also contribute to higher food prices and inflation over the medium term as it curtails yields and disrupts supply chains.

The ECB calculated that a 2022 drought caused European food prices to rise 0.7 percentage points. Olive crops were particularly affected, with the price of olive oil skyrocketing.

The central bank is concerned that climate change related increases in food prices could increase and create more difficulties for it to forecast inflation.

“Without a rapid shift that commits to climate adaptation and carbon neutrality, these phenomena risk becoming a long‑term structural drag on the economy,” said Hazem Krichene, a climate and sustainability economist at Allianz.

He called for better coordination at the European level to act preventively.

Allianz Trade ran a stress scenario under which the five hottest years in each country between 2014 and 2024 were repeated between now and 2030.

It calculated that it could lead to cumulative losses in gross domestic product of between five and seven percent.

That would be a hit of $240 billion for France, $147 billion for Italy, $131 billion for Germany and $120 billion for Spain.

Tax revenue would also be hit, causing an estimated drop of 1.8 percent in France, just as expenses on infrastructure and health care need to be boosted.

That would worsen the already difficult situation many European countries find themselves in concerning budget deficits and debt, with their capacity to borrow constrained.

Government's Export Promotion Bureau (EPB) sets sights high on external trade and proposes setting total goods and services export target at US$67 billion for the imminent fiscal year.

Proposed target for goods export is $58 billion for the fiscal year (FY) 2026-27, predicting over 21-percent growth, sources say.

And the earning from services export is projected at $9.0 billion, riding on an expected growth of over 26 per cent.

More than 80 per cent of the proposed export earnings are expected to come from the ready-made garment (RMG) sector, a longtime biggest export-earning item for Bangladesh.

The bureau expects the apparel-export receipts to reach $38.56 billion by the end of the current fiscal year. It proposes 21-percent higher shipments in the next fiscal year, leading to an earning of $46 billion.

The initial overall export-performance target for the outgoing fiscal was $55 billion.Accounting & Auditing

Apparel-sector leaders, however, have termed the target 'ambitious' by taking the overall situation, especially that of energy, into consideration.

Sources also say the recent energy and food crises caused by the US- Israel and Iran war, Middle East turmoil, and prolonged impact of the Russia-Ukraine war have had a negative impact on the country's economy like in many other countries around the world.

High inflation in developed and developing countries has reduced purchasing power of consumers, with their focus now on meeting essential goods requirement, they say, adding that suspension or keeping work orders on hold by foreign buyers, pressure to squeeze price have acted as obstacles to export growth.

Besides, exports to India have fallen following port restrictions, they note, adding that all these factors are also taken into consideration in drafting the target.

Asked about the higher targeting, EPB vice-chairman Mohammad Hasan Arif says they have drafted the proposal after discussion with "almost all the major stakeholders".

The EPB held a meeting on June 23 in this regard. Without giving details, he says, "We will send the proposal to commerce ministry early next week. "Government Agencies

Speaking to the FE on Thursday, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Mahmud Hasan Khan termed the garment target 'very ambitious' considering the exiting situations, especially that of gas and electricity supplies.

Industry has marketing ability, production capacity and infrastructure to achieve the target, he says, "but many factories can't use their full production capacity due to current gas and electricity supply which is rather day by day deteriorating".

"With existing gas and electricity supply, the target is very ambitious," he says, stressing the need for bringing the energy supply at a reasonable level to achieve the target.

Meanwhile, the country's exports entered a negative territory on a year-on-year basis in August 2025, when the country recorded a 2.93-percent fall mainly because of the negative growth of readymade garments.

The downtrend was followed by a decline of 4.61 per cent, 7.43 per cent, 5.58 per cent, 14.25 per cent, 0.50 per cent, 12.03 per cent, 18.07 per cent and 7.07 per cent in September, October, November, December, January, February, March and May respectively.

However, the export receipts grew by 24 per cent and 32 per cent last July and April respectively.

Bangladesh earned $43.79 billion from exports of merchandise during the July-May period of the FY 2025-26, reflecting a 2.55-percent year-on-year negative growth over the $44.94 billion earned in the corresponding period of last fiscal, according to EPB data.

The EPB has, however, projected that overall export would reach $47.82 billion at the end of June against $48.28 billion earnings in FY 2024-25.

Finance Minister Amir Khosru Mahmud Chowdhury sets out a three-pronged economic-resilience strategy for protecting Bangladesh from global economic turbulence and the fallouts from continuing instability in the Middle East.
FE

While elaborating on the Three-R strategy in parliament on Wednesday, he also unveiled government plans for simultaneously broadening the domestic tax base to strengthen public finances.

In written responses to queries, the minister outlined what he described as a "Three-R Strategy" -- Recovery and Stabilization, Restoration, and Reconstruction for Acceleration -- designed to safeguard macroeconomic stability, diversify exports and enhance the competitiveness of the economy.

The strategy that the finance minister outlined in his budget speech delivered on June 11 last comes as the government is facing a series of external challenges, including volatile energy prices, uncertainty in global trade.

To ease such a bundle of risks, the government is pursuing new labour agreements with Russia, Portugal, Romania, Brazil, Greece, Serbia and North Macedonia, while also seeking to reopen labour markets in Malaysia, Oman, the United Arab Emirates and Kuwait.

The government will maintain its 2.5-percent cash incentives for remittances sent through formal channel and continue efforts to bolster foreign-exchange reserves through export diversification, tighter controls on non-essential imports and exchange-rate stability.

The finance minister also says Bangladesh was preparing contingency measures to offset potential increases in global fuel, liquefied natural gas (LNG) and fertiliser prices, including diversifying energy sources, accelerating domestic gas exploration and maintaining subsidies where necessary.

Alongside the broader economic strategy, Chowdhury announces plans to bring 16 additional business sectors under a fixed value-added tax (VAT) regime from the 2026-27 fiscal year as part of efforts to increase revenue collection.

The sectors include groceries, garment and clothing retailers, confectionery businesses, cosmetics shops, household plastic and ceramic goods sellers, shoe retailers, hardware stores, decorators, mobile phone and electronics retailers, paint and sanitary fittings businesses, tile dealers, corrugated-sheet retailers, rod and cement traders, furniture stores, beauty parlours, sweet shops and restaurants.

According to the finance minister -- who has placed an upscale Tk 9.38-trillion national budget in parliament for the forthcoming fiscal year -- VAT collections reached Tk1.42 trillion during the fiscal year 2024-25.

In a separate parliamentary response, the minister said it remained difficult to determine the precise amount of money illegally transferred abroad from Bangladesh because of the absence of sufficient and internationally accepted data.

However, citing findings from the White Paper Committee established by the interim government, he notes that Bangladesh experienced an estimated $234 billion in illicit financial outflows between 2009 and 2023 -- an average of roughly $16 billion annually.

The committee has estimated that the outflows were equivalent to 3.4 per cent of GDP in fiscal year 2023-24, nearly one-fifth of the country's combined export and remittance earnings, more than 11 per cent of national savings and almost double the volume of net foreign aid and foreign direct investment inflows.C

The figures highlight the scale of the challenge facing the government as it seeks to restore confidence in the economy, strengthen foreign-exchange reserves and improve fiscal sustainability amid a turbulent global environment.

The government has initiated a process to engage international legal firms to help recover money linked to defaulted loans created through irregularities and corruption in the banking sector, Finance Minister Amir Khosru Mahmud Chowdhury told Parliament on Wednesday.

Responding to a question from Kurigram-1 MP Anwarul Islam, the finance minister said the government signed non-disclosure agreements (NDAs) with nine international law firms and begun the recruitment process on a "no win, no fee" basis to assist nearly 30 troubled banks in recovering non-performing loans.

As part of the first phase, legal proceedings have been launched in six cases involving former Land Minister Saifuzzaman Chowdhury, controversial businessman S Alam, and business groups associated with Beximco, Sikder Group, Nasa Group and Orion Group.

The minister said the international firms would help banks identify overseas assets and funds belonging to alleged loan defaulters and provide legal assistance to repatriate those assets to Bangladesh. The government plans to expand the initiative further in the future.

The information was provided during the parliamentary question-and-answer session held under the chairmanship of Speaker Hafiz Uddin Ahmed.

Replying to a question from Chandpur-3 MP Sheikh Farid Ahmed, the finance minister said Bangladesh currently has 193.25 million bank accounts.

Of these, 177.95 million are savings accounts, while 15.31 million are loan accounts.

He added that the government formulated the National Financial Inclusion Strategy (NFIS) with the goal of bringing all adult citizens under the formal financial system by 2026. Bangladesh's current financial inclusion rate stands at 64.5%.

In response to a question from Jamalpur-3 MP Mostafizur Rahman Babul, the minister said Bangladesh's external debt stood at $78.23 billion as of March 2026.

Concessional loans accounted for 61.97% of the total external debt portfolio, while non-concessional loans represented 38.03%.

Replying to a question from Mymensingh-8 MP Lutfullahel Majed, the finance minister said the number of registered taxpayers in the country increased to 13.83 million.Famous Quotations

The figure represents an 11.86% increase compared with the previous fiscal year.

Responding to a question from Gaibandha-4 MP Mohammad Shamim Kaisar, the minister said the government allocated Tk15.68 billion under the agricultural loan waiver programme for loans of up to Tk10,000 during the current fiscal year.

A total of 1.41 million farmers have benefited from the scheme.

The finance minister also informed Parliament that Bangladesh Bank had been providing regular emergency liquidity assistance to banks facing difficulties in repaying customer deposits because of liquidity shortages.

Responding to a question from reserved-seat MP Mosammat Shammi Akter, he said the central bank had provided Tk759.03 billion in emergency liquidity support as of 15 June.

In response to a question from Sirajganj-5 MP Amirul Islam Khan, the minister said 63 banks are currently operating across Bangladesh through 11,326 branches and 4,929 sub-branches.

Responding to separate questions from lawmakers from both the treasury and opposition benches, the finance minister said five Islamic banks -- Exim Bank, First Security Islami Bank, Global Islami Bank, Social Islami Bank and Union Bank -- have been brought under the Bank Resolution Scheme 2025.Geographic Reference

He said depositors of these banks are being repaid, and under the Deposit Protection Act 2026, each depositor is eligible to receive up to Tk200,000.

The minister added that various departments of Bangladesh Bank are monitoring other banks facing liquidity stress and that actions will be taken under the Bank Resolution Act 2026 if necessary.

He also noted that the insured deposit limit has been doubled from Tk100,000 to Tk200,000 under the Deposit Protection Act 2026. According to the minister, Tk12,000 crore has already been transferred from the Deposit Protection Fund to the current accounts of the merged Islamic banks to support depositor protection and financial stability.

The US Federal Communications Commission on Friday said ​it will ban the import of more equipment from a group of ‌Chinese manufacturers, the latest move by Washington to crack down on Chinese-made electronic gear.

The move expands an FCC ban imposed in 2022 on new models of telecommunications and video surveillance ​equipment made by Huawei, ZTE, Hytera, Hikvision, and Dahua, citing US national ​security risks.

The ban now includes old models, not just those ⁠designed starting in late 2022, of equipment used for "public safety, security of ​government facilities, physical security surveillance of critical infrastructure, and other national security ​purposes," the FCC said.

The expanded ban is set to take effect in early July. The FCC said the action "is necessary to protect national security by mitigating risks to the US communications sector."

The Chinese Embassy ​in Washington and the companies did not immediately respond to inquiries.

The FCC ​said it would allow Americans to continue to use equipment they already own.

The FCC has ‌taken ⁠a number of actions targeting Chinese tech, including banning imports of all new models of Chinese drones in December. In March it banned the import of new models of Chinese-made consumer routers, the boxes that connect computers, ​phones and smart devices ​to the internet.

The ⁠new order does not ban imports of prior models of drones and routers.

In October, the FCC voted 3-0 ​to block new approvals for devices with parts from ​companies on ⁠its list and let the agency bar previously approved equipment in some instances.

Hikvision sued in December challenging that decision, saying the agency exceeded its authority and ⁠lacked ​basis for the move.

The FCC is also considering ​prohibiting US telecommunications carriers from interconnecting with Chinese telecom firms, which would effectively ban Chinese ​telecoms from operating US data centers.

The World Bank has approved $1.1 billion for two projects to help Bangladesh mitigate the price and supply volatility in global fertiliser and fuel markets, sustain food security, and enable a rapid response to economic shocks.

The global lender stepped up with immediate support as rising food, fertiliser, and fuel prices stemming from the US-Israel war on Iran, which has culminated in a broader Middle East conflict, according to a press release issued yesterday (26 June).

The global shock, alongside a tighter fiscal space, has deeply impacted Bangladesh's economy, hitting smallholder farmers and vulnerable populations the hardest, it said.

World Bank Division Director for Bangladesh and Bhutan Jean Pesme said, "Rising food, fertiliser, and fuel prices stemming from the Middle East Conflict, along with tighter fiscal space, have deeply impacted Bangladesh's economy, hitting smallholder farmers as well as poor and vulnerable people the hardest."

He added that the financing aims to ensure fertiliser supply for rice production, protect households, jobs, and livelihoods, and maintain essential services.

Of the total funding, the Emergency Support for Food Security Project will provide $300 million in time-bound financing to help Bangladesh import fertilisers critical for the upcoming Aman and Boro cultivation seasons, spanning July-October this year and from October to April next year, respectively.

Bangladesh currently imports more than 85% of its fertiliser requirements, said the World Bank.

This project, it said, will finance the import of 6,00,000 tonnes of critical fertilisers – half of which will be Urea – covering 1.4 million hectares of rice production cultivated by smallholder farmers.

Souleymane Coulibaly, World Bank lead economist and task team leader for the project, emphasised that Bangladesh's food security heavily relies on the Aman and Boro seasons, which together account for about 90% of the country's total rice production.

"About half the population is employed in the agriculture sector. So any disruption in fertiliser supply would not only threaten food security, it would deepen poverty and cost jobs," Coulibaly added.

Regarding the remaining $713 million, the release clarified that it will fund the Contingent Emergency Response Project, which supports quick-disbursing emergency expenditures.

This includes cash transfers and livelihood assistance for affected households and micro, small, and medium enterprises to stabilise incomes and preserve jobs during crises, stated the lender.

It will also finance fuel and energy supplies to ensure the continuation of essential services, including food, medicines, medical equipment, energy, and water.

The project, which utilises the World Bank's crisis preparedness and response toolkit by repurposing unutilised financing from existing projects, will disburse the funds by 30 June.

"This project will provide Bangladesh immediate access to funds through the World Bank's crisis preparedness and response toolkit by repurposing unutilised financing from existing projects, directing resources where they are most needed and protecting people, businesses, and jobs from the impact of shocks," said Lesley Jeanne Yu Cordero, World Bank lead disaster risk management specialist and task team leader for the project.

The government will begin lobbying foreign diplomats in Dhaka next month to build support for its request to defer Bangladesh's graduation from Least Developed Country (LDC) status by three years, as the issue moves towards consideration at the UNGA.
"We will sit with all the foreign missions in Bangladesh in the first week of July. We will explain Bangladesh's reasons for seeking an additional three years before graduating from LDC status," a senior Economic Relations Division (ERD) official said on Wednesday.

As Bangladesh's request for a deferral will ultimately require approval through the UN system and endorsement by the United Nations General Assembly (UNGA), securing broad international support is considered crucial, he added.

Officials said Bangladesh's fate regarding the proposed deferment is likely to be decided at the UNGA session in September this year.

Although Bangladesh is scheduled to graduate to developing-country status in November 2026, Dhaka has sought an additional three years to prepare for the transition amid a series of domestic and external challenges.More than two months ago, Bangladesh formally requested the United Nations Committee for Development Policy (UNCDP), the body responsible for reviewing graduation criteria, to grant an extension in light of emerging economic and geopolitical pressures, including global shocks, energy supply constraints, domestic political transition and other external uncertainties.Special Occasions

The UNCDP has since responded to Bangladesh's request, outlining a number of conditions linked to the proposed deferment.The committee emphasised the importance of domestic reforms, including measures to stabilise the financial sector, strengthen domestic resource mobilisation through higher tax revenues, and prioritise expenditures that enhance resilience and support economic transformation.

According to ERD officials, policy recommendations on LDC graduation are first considered by the executive bodies of the UN system, including the Economic and Social Council (ECOSOC), before being forwarded to the UN General Assembly for final approval.

"Almost all foreign missions in Bangladesh represent UN member states. Therefore, we need to clearly explain the rationale behind our request for a graduation deferment," another ERD official said.

He noted that while an ECOSOC meeting is scheduled soon, Bangladesh's request may not be discussed immediately and could instead be taken up at a later meeting, possibly in late July.

"Once the matter is discussed at ECOSOC, we will have a clearer idea about the timeline for consideration of the graduation deferment request," the official said.Government

He added that although greater clarity on the process is expected after the ECOSOC discussions, the final decision will rest with the UNGA.

Bangladesh is not alone in seeking additional time. Nepal, another country scheduled for graduation in 2026, has also requested a three-year deferment.

"Since Nepal has submitted a similar request, the UN may adopt a common approach for both countries," the official said.

In a letter sent to the ERD Secretary on June 1, the UNCDP gave what officials described as a positive response to Bangladesh's request, although it did not specify any timeframe for a possible extension.

The committee stated: "Without significantly advancing on such reforms, it is difficult to see how an extension of the preparatory period requested by Bangladesh would contribute to a more sustainable graduation and a smooth transition. Hence, the extension should not be viewed as a pause or justification for delaying reforms."

The committee further advised that any extension should serve as a catalyst for accelerating reforms and implementing smooth transition measures, particularly those aimed at strengthening productive capacities, promoting economic diversification and preparing the private sector for graduation.

Bangladesh's insurance sector is facing deep-rooted structural weaknesses, weak governance and declining public confidence, prompting calls from policymakers and industry leaders for stronger regulation, wider insurance coverage and comprehensive reforms.

The issues were highlighted at a seminar titled "Challenges, Prospects and the Way Forward for Bangladesh's Insurance Sector" organised by the Insurance Reporters Forum (IRF) today (27 June).

Speaking at the event, Prime Minister's Adviser on Finance and Planning Rashed Al Mahmud Titumir said many insurance companies lack strong asset management and investment capabilities, with the life insurance segment facing particularly serious challenges.

He stressed the need to expand agricultural and health insurance, noting that despite Bangladesh's vulnerability to natural disasters, crop insurance remains underdeveloped while health insurance coverage is largely confined to higher-income groups and salaried employees.

Titumir also called for greater use of technology to improve customer services and operational efficiency, saying weak regulatory oversight, poor accountability and declining public trust have become major obstacles to the industry's growth.

"The insurance sector needs a strong, effective and market-friendly regulatory framework to ensure accountability, protect policyholders and expand insurance coverage," he said.

Addressing the seminar, Insurance Development and Regulatory Authority (IDRA) Chairman Mir Nadia Nivin said restoring policyholders' confidence, establishing insurance as a major source of long-term investment and strengthening institutional capacity would be the regulator's three key reform priorities.

He said settling around Tk7,000 crore in outstanding insurance claims is IDRA's immediate priority.

The regulator will work with individual insurance companies to identify financial and operational weaknesses, recover trapped funds, facilitate asset sales where necessary and explore other measures to clear pending claims.

"If a significant liability remains after exhausting all available options, the government may be approached for a one-time bailout package," Nivin said, adding that insurers and the regulator must first complete their own reform initiatives before seeking government assistance.

He also announced plans to expand microinsurance through microfinance institutions, develop a regulatory framework for Islamic insurance (Takaful) and strengthen insurance education to build a skilled workforce.

Bangladesh Insurance Association President Saeed Ahmed, MP, said the insurance regulator should remain independent of business interests and called for expanding mandatory motor insurance and introducing new insurance products for emerging sectors.

Bangladesh Insurance Forum President BM Yusuf Ali said coordinated efforts by the government, regulator and insurance companies are essential to modernise the industry and make it more transparent and customer-friendly.

Professor Dr Md Shahidul Islam Jahid, chairman of the Department of Banking and Insurance at the University of Dhaka, identified weak regulation, poor governance and a short-term profit mentality as the sector's main challenges, while emphasising the need to expand agricultural and climate-risk insurance.

Zenith Islami Life Insurance Managing Director SM Nuruzzaman said the life insurance industry faces greater challenges than the general insurance sector and called for easier asset disposal procedures and improved access to bank financing.

Presenting the keynote paper, Monir Hossain said modernising the insurance industry, strengthening governance, accelerating digitalisation and ensuring customer-centric services are essential to support Bangladesh's growing economy.

Listed conglomerate Beximco Limited has seen its share price collapse in the wake of the Bangladesh Securities and Exchange Commission's (BSEC) decision to remove its long-standing floor price, dealing massive losses to investors and erasing thousands of crores of taka in market value.

The BSEC allowed the stock to resume normal trading on 9 June, ending an extended period during which it had been locked at a floor price. Since then, Beximco shares have nosedived 74.20% across just 13 trading sessions, gutting approximately Tk7,706 crore from its market capitalisation.

According to data from the Dhaka Stock Exchange (DSE), Beximco shares closed at Tk28.40 today (25 June), down from Tk110.10 before the floor price was lifted, a loss of Tk81.70 per share over the period.

Market analysts said the prolonged floor price had created a significant gap between the stock's artificially maintained value and its actual market demand. Once the restriction was removed, the market quickly adjusted to reflect the stock's perceived fair value, triggering sustained selling pressure.

Over the past 13 trading sessions, approximately 2.2 million shares changed hands, including nearly 2 million in the last four sessions alone. However, only around 330,000 shares were traded today. With sellers significantly outnumbering buyers, the stock has remained pinned near its daily lower limit.

The sharp fall has also triggered a dramatic erosion in the company's market capitalisation. Before the floor price was lifted, Beximco's market value stood at around Tk10,385 crore. It has since declined to approximately Tk2,678 crore, a loss of nearly Tk7,706 crore in under three weeks.

Market participants said shareholders have borne the brunt of the decline, particularly retail investors, who collectively hold more than one-third of the company's outstanding shares.

The sharp fall has also led to a dramatic erosion in the company's market capitalisation. Before the withdrawal of the floor price, Beximco's market value stood at around Tk10,385 crore. It has now declined to approximately Tk2,678 crore, resulting in a loss of nearly Tk7,706 crore in market value within less than three weeks.

Market participants said shareholders have been the biggest casualties of the decline, particularly retail investors who collectively hold more than one-third of the company's outstanding shares.

Selling pressure emerged immediately after the floor price was removed. Large volumes of sell orders entered the market, but a lack of buyers limited actual transactions and accelerated the price decline.

Senior officials of several brokerage houses told The Business Standard that many investors had been unable to sell their holdings for years while the stock remained under the floor price mechanism.

"Investors finally got the opportunity to exit after the floor price was lifted. However, the absence of buyers has caused the price to fall rapidly," said one brokerage executive.

Conversations with investors revealed that many are willing to accept significant losses simply to free up capital and redeploy it elsewhere.

Abu Asad, an investor, told TBS that while he can now sell his shares, the price has fallen so sharply that exiting means taking a substantial loss.

Many investors are reportedly willing to absorb heavy losses but remain unable to sell due to a lack of buying interest. Some have criticised the regulator for not lifting the floor price earlier, alongside other companies, arguing that market conditions were more favourable at the time and that the delay ultimately deepened losses for retail investors. The floor price mechanism was first introduced on 19 March 2020 to shield the stock market from the fallout of the Covid-19 pandemic. While the restriction was gradually lifted for most listed companies, Beximco and Islami Bank Bangladesh PLC remained subject to it for an extended period.

On 8 June, BSEC decided to remove the floor prices of both Beximco and Islami Bank, allowing their shares to trade freely from the following day. The regulator said the move was aimed at restoring normal price discovery and improving market liquidity.

However, Beximco immediately came under intense selling pressure, resulting in significant losses for investors.

Analysts attribute the decline to several factors, including prolonged uncertainty surrounding the company, concerns about its business operations, discussions regarding debt and financial liabilities, and the adjustment of a share price that had remained artificially fixed for years.

Despite the sharp decline, some investors see the situation as an opportunity. They argue that shareholders who had been trapped in the stock can now reallocate their investments elsewhere, though most retail investors have already suffered substantial capital losses.

According to the company's shareholding structure as of May 2026, sponsors and directors hold 33.11% of Beximco's shares, institutional investors 32.59%, foreign investors 0.94%, and general investors 33.36%.

With more than one-third of the company's shares in the hands of retail investors, the collapse in share price has directly affected a large number of small shareholders.

Listed on the stock market in 1995, Beximco is the flagship company of the Beximco Group, one of Bangladesh's largest business groups. The company has a paid-up capital of approximately Tk943 crore and around 94.32 crore outstanding shares. Its industrial facilities are located in Kashimpur, Gazipur.

Market observers said the stock's eventual stabilisation will depend on the company's future business prospects, financial restructuring efforts, investor confidence, and the return of buying interest.

According to them, Beximco is now undergoing a genuine price discovery process after years under the floor price regime. However, that adjustment has already erased thousands of crores of taka in market value and inflicted heavy losses on a vast number of investors.

As global fashion turns away from fossil-fuel-based fibres, Bangladesh has a rare chance to stitch its past and future together through jute. That opportunity will not last forever.

​For decades, jute was far more than just another crop. It was the backbone of export earnings and a powerful emblem of national pride. Revenue from jute helped finance roads, ports, and basic infrastructure, while the crop shaped rural livelihoods across large parts of the country. For farmers, traders, and mill workers, jute was not just a commodity; it was a lifeline.
Then, synthetic fibres and plastics swept through global trade. Cheaper, mass-produced materials took over packaging, textiles, and everyday products. Step by step, jute was pushed to the margins of policy, investment, and even the national imagination. Mills closed, fields shifted to other crops, and the “golden fibre” faded from the centre of Bangladesh’s development story.Today, the global mood is changing again. Fashion brands are under increasing pressure from regulators, investors, and climate-conscious consumers to clean up their supply chains. The EU Green Deal and new due-diligence rules are already forcing companies to rethink what their clothes are made of, how fibres are sourced, and what happens to products at the end of their life. In this shifting landscape, materials that are natural, traceable, and biodegradable are gaining new importance.This is where jute returns to the conversation. Long known for sacks, ropes, and carpets, jute now has the potential to move into higher-value segments such as apparel, accessories, home textiles, and innovative packaging. Instead of relying almost entirely on imported cotton and synthetic fibres, Bangladesh can link its world-class ready-made garment (RMG) industry with a regenerative raw material grown in its own soil.

Such a shift would do more than create a new product line. It could redefine Bangladesh’s brand in the global fashion market -- from a low-cost manufacturing hub to a leader in sustainable, nature-based textiles. Garments blended with jute, jute-based denim alternatives, and stylish jute-rich fabrics could appeal to brands looking for authentic, climate-friendly stories to share with their customers.

The benefits at home would be wide-ranging. Stronger demand for jute could improve farm incomes, support rural employment, and encourage more resilient cropping systems. Because jute grows well in Bangladesh’s climate and requires relatively few chemical inputs, it fits naturally into a more sustainable agricultural model. Linking farmers, spinners, weavers, designers, and exporters around a modern jute value chain could spread opportunity across both rural and urban areas.

Of course, this transformation is not automatic. Jute fibre needs innovation in processing, blending, and finishing to meet the comfort, softness, and performance standards of global fashion. Designers and product developers must experiment with new textures, colours, and applications. Investors and policymakers will have to support research, technology upgrades, and market development so that jute textiles can compete at scale.

Yet the direction of travel is clear. As the world searches for credible alternatives to fossil-fuel-based fibres, Bangladesh holds a natural advantage that few countries can match. By reconnecting its RMG sector with its historic golden fibre, the country can revive a proud legacy while opening a new chapter of sustainable growth.

The choice now is whether to treat jute as a relic of the past or embrace it as a strategic material for the future. If Bangladesh chooses the second path, jute can once again become a symbol of creativity, resilience, and national confidence -- this time woven into the very fabric of global fashion. The moment to act is now.

The author is a former director of the Bangladesh Garment Manufacturers and Exporters Association

The government is set to undertake a Tk4,973.73 crore project to strengthen electricity distribution systems in industrially developed areas surrounding Dhaka to meet rapidly growing demand from industries, businesses and households.

The project, titled "Capacity Enhancement of Electrical Distribution Systems of 13 Palli Bidyut Samities Around Dhaka under REB," will be implemented by the Bangladesh Rural Electrification Board (REB) across 13 Palli Bidyut Samities in Dhaka, Gazipur, Mymensingh, Manikganj, Munshiganj, Narayanganj and Narsingdi districts.

According to the proposal, the initiative aims to modernise and strengthen distribution networks in rapidly industrialising areas, particularly Gazipur, Narayanganj and Narsingdi, where large factories and economic zones have significantly increased electricity demand.

Under the project, REB plans to add 1,265 MegaVolt-Ampere (MVA) of distribution capacity by 2031, ensuring an uninterrupted, reliable and affordable electricity supply for about 6.01 million existing consumers. It also aims to reduce system losses from 5.73% to 5.2% and cut the average duration of customer power interruptions (SAIDI) by 20%.

A feasibility study by the Infrastructure Investment Facilitation Company (IIFC) projected that electricity demand in the 13 Palli Bidyut areas will reach 5,082MW by 2033. Considering 70% loading and 10% diversity, the required distribution capacity will rise to 9,760 MVA.

Coverage areas and implementation details

The project includes construction of 52 new 33/11 kV substations, expansion of 12 existing substations, and construction or upgrading of about 4,200 kilometres of distribution lines, including 3,823 kilometres of new lines. It also includes installation of 158 kilometres of underground cable, 900 fault locators, three switching stations and three river-crossing towers.

Project areas include Savar, Dhamrai and Keraniganj in Dhaka; Kaliakair, Gazipur Sadar, Gazipur City Corporation, parts of Sreepur and Kapasia in Gazipur; Bandar, Rupganj, Sonargaon and Araihazar in Narayanganj; Manikganj Sadar and Saturia; Sirajdikhan, Louhajang and Tongibari in Munshiganj; parts of Narsingdi Sadar, Raipura and Shibpur in Narsingdi; Madhupur in Tangail; and Bhaluka, Trishal and Gafargaon in Mymensingh.

Palli Bidyut areas covered are Dhaka Palli Bidyut-1, 3 and 4; Gazipur Palli Bidyut-1 and 2; Mymensingh Palli Bidyut-1 and 2; Manikganj Palli Bidyut; Munshiganj Palli Bidyut; Narayanganj Palli Bidyut-1 and 2; and Narsingdi Palli Bidyut-1 and 2.

The proposal has been submitted to the Planning Commission, which has scheduled a Project Evaluation Committee (PEC) meeting on June 28. The commission has sought explanations over the project's cost increase from Tk4,733.74 crore in the feasibility study to Tk4,973.73 crore in the Development Project Proposal (DPP), a rise of nearly Tk240 crore.

It has also asked REB to clarify the project's alignment with the government's election manifesto and development strategies, expected permanent and temporary employment generation, the need for new lines and e-GIS substations, and higher unit costs of some components compared with similar projects.

Cost scrutiny and funding structure

According to commission documents, 96.55% of project expenditure has been allocated to machinery and equipment. The commission has also questioned consultancy, training, travel and administrative costs, including the rationale for training 660 personnel and consultancy expenses linked to the 4,200-kilometre network.

The government expects to secure Tk2,440 crore in loans from the Asian Development Bank (ADB), while Tk1,316.95 crore will come from government funds and Tk1,216.78 crore from REB's own resources.

REB Chief Engineer (Project) Md Shafiqur Rahman said the project was designed based on projected load growth and rising industrial and commercial demand around Dhaka. Tender documents have already been sent to the Power Division for approval, while advance procurement activities are expected to begin once required approvals are secured.

However, no work order will be issued until the project receives final approval from the Executive Committee of the National Economic Council.

Shafiqur added that ADB has agreed to finance the project, and advance tendering processes are underway, with key procurement activities expected to be completed by July.

The Bangladesh Investment Development Authority (Bida), in collaboration with the Bangladesh Embassy in China, will host an "Invest Bangladesh" seminar in Beijing today (25 June), aiming to attract long-term Chinese investment in key sectors of the country's economy.

Prime Minister Tarique Rahman is expected to attend the event as the chief guest.

Around 80 Chinese companies, most with extensive international operations and investment experience, are expected to take part in the seminar.

"Most of the participating companies have an international footprint and are potential long-term investors in Bangladesh," Nahian Rahman Rochi, executive member and head of business development at Bida, told The Business Standard.

The event will feature a presentation titled "Why Invest in Bangladesh", highlighting the country's investment opportunities, competitive advantages and ongoing reform initiatives. Investors will also have the opportunity to engage directly with Bangladeshi officials through a question-and-answer session.

The seminar will showcase opportunities in sectors such as renewable energy, healthcare, textiles, information technology, agro-processing and automotive industries.

"We will also be holding several bilateral one-to-one meetings with prospective and existing businesses from these sectors," Rochi said.

He added that Bida will present a range of recent initiatives aimed at addressing long-standing investor concerns, particularly regarding policy continuity and deregulation.

"China-specific initiatives, including Bida's office in China, the Chinese Economic Zone and the Chinese Desk at BIDA, will also be highlighted," he said.

According to Bida, Chinese investors have shown growing interest in sectors including electronics, semiconductors, electric vehicle batteries, advanced and technical textiles, logistics, medical devices and IT-enabled services.

The agency plans to promote Bangladesh's competitive advantages in these sectors, including its large workforce, market access and export potential.

Speaking at an event in Dhaka on 18 June, Bida and Beza Executive Chairman Ashik Chowdhury said advancing the Chinese Economic Zone would be one of the key investment priorities during the prime minister's visit to China.

"We expect to see meaningful progress that could pave the way for the commencement of on-the-ground work at the Chinese Economic Zone," he said.

Ashik also said China has expressed interest in establishing a second economic zone in Mongla, adding that important decisions on the proposal could emerge during the visit. Progress may also be made on establishing a BIDA representative office in China.

He noted that China has remained one of Bangladesh's leading sources of foreign direct investment (FDI) over the past five years, prompting the government to advance several investment promotion initiatives ahead of the Beijing seminar.

According to the latest Bangladesh Bank data, net FDI inflows into Bangladesh rose 39.36% year-on-year to $1.77 billion in 2025, compared with $1.27 billion in 2024.

China was the second-largest source of net FDI during the period, after the Netherlands.

After a downturn, inflation-fueling high-powered money has surged again, largely negating the effect of a contractionary policy pursued by the regulator to stem price rises.
FE

The money being injected into the market through some channels is stoking fear of higher monetary regime ahead.

Money-market experts have pinpointed several hikers, including the central bank's ongoing US dollar purchase from the market to stabilise the exchange rate, growing quasi-fiscal activities and the regulator's liquidity support to the struggling banks, which are largely contributing to the recent leaps in reserve-money growth.

Under a persistently tight monetary-policy regime adopted by the central bank to contain growing inflation, the inflow of the reserve money dropped to a negative growth of 0.12 per cent even in June last.

Since then, in a rebound, it has risen significantly in recent months, which the money-market analysts believe largely contributes to the upward trajectory of inflation over the last several months.

Apart from the regular liquidity-feeding instruments of the Bangladesh Bank, they say, the flow of subsidised credits or money injection through irregular arrangements keeps rising on the money market, which is paradoxical to the spirit of contractionary monetary-policy stance.Bangladesh economic report

As a matter of fact, the BB-guided tight monetary policy is not transmitting into the money market properly and not being able to contain the inflationary pressure at the expected level, which ultimately hurts common people through curtailing their purchasing power.

According to latest BB data, the growth of the reserve money was recorded 0.12-percent negative in June last year. Afterwards, it had started leaping to 2.52 per cent, 3.47 per cent, 9.23 per cent, 13.35 per cent and 14.39 per cent in July, September, December, February and April last respectively.

Reserve money is the total amount of currency in circulation plus commercial banks' deposits held at the central bank, acting as the foundation for the entire monetary system.

It is also called "high-powered money" because it forms the foundation for the expansion of bank deposits through the money-creation process.

Seeking anonymity, a BB official says the central bank, in fact, did nothing to control the higher inflation apart from continuing a higher policy rate of 10 per cent since October in 2024.

He says, "The volume of quasi-fiscal activities by the BB through which commercial banks avail credits from the regulator at subsidised rates, ranging from 0.5 per cent to 5.0 per cent, is still quite large."

On the other hand, the central banker adds, regular government borrowing from the central bank through using ways and means, amounting to maximum Tk 120 billion, and overdraft worth maximum Tk 120 billion, goes on to operate some 119 accounts at 8.0 per cent and 9.0 per cent respectively.

The central banker informs that they had planned to downsize the ceiling of ways and means and overdraft but high-ups of the regulator turned down the proposal in view of the current macroeconomic context of the country.

"Certainly, it (reserve money growth) is a concern for all of us because it fuels inflation to some extent," he told The Financial Express.Investment strategy advice

The rate of inflation keeps rising for the last several months. According to the data with Bangladesh Bureau of Statistics (BBS), the headline inflation rose to 9.42 per cent in May 2026. The inflation rate was 9.04 per cent in the previous month of April.

Apart from growing government bank borrowing and quasi-fiscal activities, Director-General of Bangladesh Institute of Bank Management (BIBM) Dr Md. Ezazul Islam mentions that the regulator has purchased more than $6.0 billion ($6.42 billion) since July 13 last to stabilise the exchange rate and injected huge volumes of money into the market.

"These all factors contributed to the rising growth of reserve money."

But the money-multiplier effect was not too high because of lower credit demand by the private sector. The credit appetite by the entrepreneurs is expected to increase in the coming days.

"If the uptrend in reserve money continues and private-sector credit growth is enhanced, it will be an issue of serious concern in the context of a tight monetary stance," the monetary economist

Finance Minister Amir Khosru Mahmud Chowdhury has said Bangladesh's total external debt stood at $78.22 billion as of March this year, warning that the country's debt servicing obligations are about to increase in the coming years.

The minister disclosed the information during the question-and-answer session in parliament today (24 June), in response to a written question from Jamaalpur-3 lawmaker Mostafizur Rahman Babul.

According to the minister, Bangladesh's total external debt amounted to $78.22 billion, of which 61.97% was concessional borrowing and 38.03% was non-concessional debt.

Highlighting key challenges in external debt management, Khosru said Bangladesh's access to highly concessional financing has gradually declined since its transition from a low-income to a lower-middle-income country, according to the World Bank's 2015 assessment.

At the same time, the volume of foreign borrowing has increased significantly over the years, resulting in a growing burden of principal and interest repayments in the future, he added.

The finance minister said the government has adopted a number of precautionary measures to ensure sustainable debt management. "Proposals for new foreign loans and related development projects are being scrutinised more rigorously to avoid financing unnecessary or low-priority projects through high-interest external borrowing."

"Only projects with high economic returns are being considered for foreign financing," he told parliament.

Khosru also informed that the government has intensified monitoring of foreign-funded projects to curb the long-standing practice of project delays and cost overruns.

In addition, the government is updating its Medium-Term Debt Management Strategy (MTDS) and conducting a Debt Sustainability Analysis (DSA) to strengthen the resilience and sustainability of public debt management, he said.

The minister further said work will soon begin on a broader plan for institutional and legal reforms aimed at improving the overall quality and effectiveness of the country's debt management framework.

Finance Minister Amir Khosru Mahmud Chowdhury has said the government is implementing a "Three-R Strategy" - Recovery and Stabilisation, Restoration, and Reconstruction for Acceleration - to increase foreign direct investment (FDI) and accelerate economic growth.

Under the medium-term economic strategy, the government aims to raise real GDP growth to 8.5% by FY2030-31, increase FDI to 2.7% of GDP and lift total investment to 40% of GDP, he told parliament today (24 June).

The minister disclosed the information while responding to a starred question from ruling party lawmaker Rafiqul Islam Hilaly of Netrakona-3.

He said the government is undertaking legal and institutional reforms after identifying barriers to business in an effort to create a more investment-friendly environment.

According to the minister, the reforms are aimed at reducing business costs and uncertainty, improving the ease of doing business, ensuring investment security and promoting deregulation across the economy.

To attract investment, the government has already launched BanglaBiz, a one-stop digital platform for investors, and published a heat map identifying 19 high-potential sectors for foreign direct investment.

The government has also taken initiatives to establish new export processing zones (EPZs) in Patuakhali and Jashore, alongside economic zones in Kurigram, Nilphamari, Chandpur and Kushtia.

These projects are expected to create around 250,000 jobs, the minister said.

Amir Khosru further said the government is pursuing Free Trade Agreements (FTAs), Preferential Trade Agreements (PTAs) and Economic Partnership Agreements (EPAs) with potential partner countries to expand trade and investment cooperation.

As part of efforts to diversify exports, duty-free imports of raw materials against bank guarantees have been allowed for food processing, light engineering, furniture, electronics, steel, plastics and leather industries.

The government is also expanding bonded warehouse facilities for promising export-oriented sectors, he added.

The finance minister said priority is being given to strengthening long-term financing mechanisms, including the capital market, corporate bond market, mutual funds, green bonds and sukuk.

Measures have also been taken to simplify stock market listings for eligible companies, make disclosure requirements more practical and strengthen investor protection, he said.

The combined initiatives will further strengthen Bangladesh's investment climate and support sustainable economic growth, the minister added.

Budget includes safeguards against global uncertainty, Middle East conflict

Responding in another question from ruling party lawmaker Md Jalal Uddin of Chandpur-2, the minister said in a written reply the FY2026-27 budget includes special measures to address risks arising from global economic uncertainty, the ongoing conflict in the Middle East and potential pressures on Bangladesh's external sector.

According to the finance minister, the government has adopted a strategy focused on export diversification and export growth, expanding remittance inflows and controlling unnecessary imports to maintain stability in the external sector.

He said strengthening foreign exchange reserves and ensuring exchange rate stability are also among the government's priorities.

Amir Khosru said the budget includes a number of measures to address the potential impact of rising international prices of fuel, liquefied natural gas (LNG) and fertilisers due to the Middle East conflict.

These measures include diversifying energy sources, accelerating domestic gas exploration, improving power and energy supply systems and continuing subsidy support where necessary, he said.

Amir Khosru said prolonged instability in the Middle East could negatively affect employment opportunities for Bangladeshi migrant workers and reduce remittance inflows, as the region remains the country's primary overseas labour market.

To reduce that risk, the government is placing special emphasis on creating new labour markets abroad.

He said Bangladesh is pursuing bilateral agreements with Russia, Portugal, Romania, Brazil, Greece, Serbia and North Macedonia as alternative destinations for migrant workers.

At the same time, efforts are underway to reopen labour markets in Malaysia, Oman, the United Arab Emirates and Kuwait, which have remained largely closed to Bangladeshi workers in recent years.

The finance minister also confirmed that the existing 2.5% incentive on remittances sent through formal channels will continue.

He said the government has adopted contingency plans to deal with any potential external sector shocks arising from global and regional developments.

Finance Minister Amir Khosru Mahmud Chowdhury sets out a three-pronged economic-resilience strategy for protecting Bangladesh from global economic turbulence and the fallouts from continuing instability in the Middle East.
While elaborating on the Three-R strategy in parliament on Wednesday, he also unveiled government plans for simultaneously broadening the domestic tax base to strengthen public finances.In written responses to queries, the minister outlined what he described as a "Three-R Strategy" -- Recovery and Stabilization, Restoration, and Reconstruction for Acceleration -- designed to safeguard macroeconomic stability, diversify exports and enhance the competitiveness of the economy.The strategy that the finance minister outlined in his budget speech delivered on June 11 last comes as the government is facing a series of external challenges, including volatile energy prices, uncertainty in global trade.To ease such a bundle of risks, the government is pursuing new labour agreements with Russia, Portugal, Romania, Brazil, Greece, Serbia and North Macedonia, while also seeking to reopen labour markets in Malaysia, Oman, the United Arab Emirates and Kuwait.Executive Branch

The government will maintain its 2.5-percent cash incentives for remittances sent through formal channel and continue efforts to bolster foreign-exchange reserves through export diversification, tighter controls on non-essential imports and exchange-rate stability.

The finance minister also says Bangladesh was preparing contingency measures to offset potential increases in global fuel, liquefied natural gas (LNG) and fertiliser prices, including diversifying energy sources, accelerating domestic gas exploration and maintaining subsidies where necessary.

Alongside the broader economic strategy, Chowdhury announces plans to bring 16 additional business sectors under a fixed value-added tax (VAT) regime from the 2026-27 fiscal year as part of efforts to increase revenue collection.

The sectors include groceries, garment and clothing retailers, confectionery businesses, cosmetics shops, household plastic and ceramic goods sellers, shoe retailers, hardware stores, decorators, mobile phone and electronics retailers, paint and sanitary fittings businesses, tile dealers, corrugated-sheet retailers, rod and cement traders, furniture stores, beauty parlours, sweet shops and restaurants.

According to the finance minister -- who has placed an upscale Tk 9.38-trillion national budget in parliament for the forthcoming fiscal year -- VAT collections reached Tk1.42 trillion during the fiscal year 2024-25.

In a separate parliamentary response, the minister said it remained difficult to determine the precise amount of money illegally transferred abroad from Bangladesh because of the absence of sufficient and internationally accepted data.Economic trends report

However, citing findings from the White Paper Committee established by the interim government, he notes that Bangladesh experienced an estimated $234 billion in illicit financial outflows between 2009 and 2023 -- an average of roughly $16 billion annually.

The committee has estimated that the outflows were equivalent to 3.4 per cent of GDP in fiscal year 2023-24, nearly one-fifth of the country's combined export and remittance earnings, more than 11 per cent of national savings and almost double the volume of net foreign aid and foreign direct investment inflows.

The figures highlight the scale of the challenge facing the government as it seeks to restore confidence in the economy, strengthen foreign-exchange reserves and improve fiscal sustainability amid a turbulent global environment.

The government has initiated a process to engage international legal firms to help recover money linked to defaulted loans created through irregularities and corruption in the banking sector, Finance Minister Amir Khosru Mahmud Chowdhury told Parliament on Wednesday.

Responding to a question from Kurigram-1 MP Anwarul Islam, the finance minister said the government signed non-disclosure agreements (NDAs) with nine international law firms and begun the recruitment process on a "no win, no fee" basis to assist nearly 30 troubled banks in recovering non-performing loans.Economics

As part of the first phase, legal proceedings have been launched in six cases involving former Land Minister Saifuzzaman Chowdhury, controversial businessman S Alam, and business groups associated with Beximco, Sikder Group, Nasa Group and Orion Group.

The minister said the international firms would help banks identify overseas assets and funds belonging to alleged loan defaulters and provide legal assistance to repatriate those assets to Bangladesh. The government plans to expand the initiative further in the future.

The information was provided during the parliamentary question-and-answer session held under the chairmanship of Speaker Hafiz Uddin Ahmed.

Replying to a question from Chandpur-3 MP Sheikh Farid Ahmed, the finance minister said Bangladesh currently has 193.25 million bank accounts.

Of these, 177.95 million are savings accounts, while 15.31 million are loan accounts.

He added that the government formulated the National Financial Inclusion Strategy (NFIS) with the goal of bringing all adult citizens under the formal financial system by 2026. Bangladesh's current financial inclusion rate stands at 64.5%.

In response to a question from Jamalpur-3 MP Mostafizur Rahman Babul, the minister said Bangladesh's external debt stood at $78.23 billion as of March 2026.Executive Branch

Concessional loans accounted for 61.97% of the total external debt portfolio, while non-concessional loans represented 38.03%.

Replying to a question from Mymensingh-8 MP Lutfullahel Majed, the finance minister said the number of registered taxpayers in the country increased to 13.83 million.

The figure represents an 11.86% increase compared with the previous fiscal year.

Responding to a question from Gaibandha-4 MP Mohammad Shamim Kaisar, the minister said the government allocated Tk15.68 billion under the agricultural loan waiver programme for loans of up to Tk10,000 during the current fiscal year.

A total of 1.41 million farmers have benefited from the scheme.

The finance minister also informed Parliament that Bangladesh Bank had been providing regular emergency liquidity assistance to banks facing difficulties in repaying customer deposits because of liquidity shortages.

Responding to a question from reserved-seat MP Mosammat Shammi Akter, he said the central bank had provided Tk759.03 billion in emergency liquidity support as of 15 June.Maps

In response to a question from Sirajganj-5 MP Amirul Islam Khan, the minister said 63 banks are currently operating across Bangladesh through 11,326 branches and 4,929 sub-branches.

Responding to separate questions from lawmakers from both the treasury and opposition benches, the finance minister said five Islamic banks -- Exim Bank, First Security Islami Bank, Global Islami Bank, Social Islami Bank and Union Bank -- have been brought under the Bank Resolution Scheme 2025.

He said depositors of these banks are being repaid, and under the Deposit Protection Act 2026, each depositor is eligible to receive up to Tk200,000.

The minister added that various departments of Bangladesh Bank are monitoring other banks facing liquidity stress and that actions will be taken under the Bank Resolution Act 2026 if necessary.

He also noted that the insured deposit limit has been doubled from Tk100,000 to Tk200,000 under the Deposit Protection Act 2026. According to the minister, Tk12,000 crore has already been transferred from the Deposit Protection Fund to the current accounts of the merged Islamic banks to support depositor protection and financial stability.

Posts, Telecommunications and Information Technology Minister Faqir Mahbub Anam today (24 June) informed parliament that the country's four mobile phone operators owe the government a combined Tk13,344 crore in outstanding dues.

Grameenphone accounts for the largest share of the total amount, amounting to Tk6,102 crore, followed by state-owned Teletalk Bangladesh Limited at Tk5,954 crore.

The minister disclosed the information during the parliamentary question-answer session in response to a query from Cox's Bazar-3 lawmaker Lutfur Rahman.

According to the minister, the outstanding dues stem from various liabilities, including licence fees, revenue-sharing payments, spectrum fees, administrative penalties, contributions to the Social Obligation Fund (SOF), and claims arising from audit objections.

Government data presented in parliament show that Teletalk owes Tk5,954 crore to the state. The dues relate to licence fees, revenue-sharing obligations, spectrum charges and other liabilities that have remained unresolved for years.

Among the private operators, Grameenphone owes the highest amount at Tk6,102 crore. The claims stem mainly from information systems audit objections and various VAT-related disputes. Cases related to these claims are currently pending before the higher courts.
Robi Axiata Limited owes Tk615 crore, including claims arising from audit objections and revenue-sharing disputes. Related cases are also under judicial review.

Banglalink Digital Communications Limited owes Tk473 crore, primarily due to audit objections and revenue-sharing-related claims, according to the information placed before parliament.

The minister said the recovery process has been prolonged because several of the claims against mobile operators are currently under judicial consideration.

In particular, disputes involving audit objections and revenue-sharing arrangements have delayed the settlement process, leaving a significant amount of government revenue tied up in litigation, he added.

National Housing Finance PLC has recommended a 10% cash dividend for the year ended 31 December 2025, maintaining the same payout as the previous year despite ongoing challenges in Bangladesh's non-bank financial institution (NBFI) sector.

The decision was approved at a board meeting held today (24 June), according to a price-sensitive information (PSI) disclosure filed with the stock exchanges.

The company's annual general meeting (AGM) will be held virtually on 15 September at 12pm to seek shareholder approval for the dividend, while the record date has been fixed for 23 July.

Shares of the company rose 1.08% to Tk28.10 on the Dhaka Stock Exchange yesterday.

National Housing reported a significant improvement in profitability in 2025. Earnings per share (EPS) increased to Tk0.74 from Tk0.02 (restated) a year earlier.

Its financial position also strengthened, with net asset value (NAV) per share rising to Tk17.06 from Tk16.32 (restated). Net operating cash flow per share (NOCFPS) turned positive at Tk6.89, compared with a negative Tk19.70 (restated) in 2024.

Analysts said the turnaround in earnings and cash flow reflects an improvement in the company's core operations and financial health at a time when many NBFIs continue to face liquidity pressures, higher funding costs and slower credit growth.

The company also disclosed its first-quarter results for 2026. During the January-March period, EPS stood at Tk0.23, slightly higher than Tk0.22 (restated) in the corresponding quarter of the previous year.

However, NOCFPS declined to Tk4.77 from Tk8.61 (restated) over the same period. The company attributed the drop to lower customer deposits, which reduced operating cash inflows.

Despite the decline in cash flow, NAV per share increased further to Tk17.29 as of 31 March 2026, up from Tk17.06 at the end of December 2025.

Established in 1998, National Housing Finance is a specialised housing finance institution that provides loans for houses, apartments and residential plots. The company has also diversified into deposit mobilisation, SME financing, lease financing and project financing, helping broaden its revenue base beyond traditional mortgage lending.

The latest financial results show improvements in the company's profitability, asset base and cash flow position, while it maintained a stable cash dividend for shareholders. Sustaining earnings growth and strengthening deposit mobilisation are expected to remain important factors for the company's future performance.