The Bangladesh Bank (BB) has asked administrators of five merged banks to submit their exit plans as the newly appointed chairman and managing director of Sammilito Islami Bank assumed office.

Five troubled banks -- Social Islami Bank, Global Islami Bank, Union Bank, First Security Islami Bank, and EXIM Bank -- were merged into the newly formed Sammilito Islami Bank under the Bank Resolution Act, 2026.

The central bank sought the exit plans during two separate meetings yesterday at its headquarters -- one with the administrators, and another with Sammilito Islami Bank’s new chairman and managing director.

Md Kabir Ahmed, deputy governor of BB and head of the Bank Resolution Department, presided over both meetings.

In their exit plans, the administrators will have to submit progress reports on their respective banks, including financial indicators, central bank officials said on condition of anonymity. BB had appointed temporary administrators to each of the five banks in November last year.

Since the new managing director has already joined while the five banks remain under administrators, the dual leadership could create administrative complications and operational inefficiencies, industry insiders said.

However, according to sources familiar with the meeting, authorities are considering whether the administrators could continue to be involved with the banks in some other capacity even if their current role ends.

The new board of directors of the Sammilito Islami Bank formally assumed office last Thursday, when the new managing director also took charge; the board held its first meeting the same day.

Earlier last month, the government appointed Quazi Shairul Hassan as chairman of the bank’s board of directors and Abedur Rahman Sikder as managing director and chief executive officer. The new chairman and managing director met BB Governor Md Mostaqur Rahman after Sunday’s meeting.

United Insurance, a listed insurer, reported a 45% year-on-year rise in earnings per share (EPS) for the second quarter of 2026, driven by higher underwriting profit, sending its shares to the daily upper circuit.

The company's shares gained 9.81%, or Tk4.70, to close at Tk52.60 on the Dhaka Stock Exchange (DSE).

DSE data showed that at the beginning of trading sessions, United Insurance shares adjusted opening price was Tk47.90 each, while trade begun, shares jumped at Tk52.10 each.

According to a disclosure published today (19 July), its EPS surged to Tk1.75 during the April-June quarter, at the same time of the previous year, it was Tk1.21.

Its disclosure also said, it's EPS, in the half-year during the January to June period, stood at Tk1.99, which is 20% growth over the same time of the previous year.

Its net operating cash flow per share also significantly jumped to Tk2.99, which Tk0.93 at the same time of the previous year.

Meanwhile its net asset value per shares increased to Tk34.76 at the end of June 2026.

The insurer attributed the rise in net asset value to an increase in the fair market value of its investment in United Finance shares, while stronger premium collections boosted cash flow.

In 2025, United Insurance made a profit of Tk15.38 crore with an EPS of Tk3.46.

Based on the growth of its profit, it had paid a 15% cash dividend for its shareholders.

As of June, out of its total shares, sponsor-directors held 59.90% stake while institutional investors 20.09% and the general investors 20.01%, according to the DSE.

Rice prices have climbed in Dhaka and Chattogram over the past week, particularly for fine varieties, as traders blame higher paddy prices, flood damage to Aus crops and Aman seedbeds, and uncertainty over rice imports from India.

Although traders said rice supply remains adequate for now, economists warn that crop losses and possible market speculation during the lean season could push prices higher unless authorities strengthen market monitoring.

In Dhaka’s kitchen markets, fine rice is selling at Tk 72 per kilogramme (kg), up from Tk 70 a week ago. Coarse rice, which is generally more affordable and widely consumed by lower-income households, has increased to Tk 50 per kg from Tk 48.

Mohammad Bacchu, a wholesaler and retailer at Karwan Bazar, said the wholesale price of a 50 kg sack of fine rice rose to Tk 3,200 from Tk 3,000 within a week. This means the price increased by about Tk 4 per kg.

“Millers are saying the increase is due to higher paddy prices. But there is no shortage of rice in the market yet, and supply and demand are balanced,” he said.

He added that coarse rice prices have remained unchanged so far, though they are showing an upward trend.

In Chattogram, fine rice prices have increased more sharply over the past month due to concerns over flood-related supply disruptions and uncertainty over Indian imports.

Traders said some Indian exporters have warned that their government may tighten export rules or restrict shipments of certain rice varieties. However, there has been no official announcement or indication from the Indian government regarding such measures.

At the retail level in Chattogram, fine rice is selling at Tk 95 per kg, up from Tk 85 a week ago.

Yasir Hossain, owner of Babul Store at CDA Market, said Nazirshail rice prices have increased by Tk 10 per kg over the past week to Tk 93-95 per kg, while coarse rice prices have remained unchanged.

Wholesale traders said fine rice prices have also increased by around Tk 10 per kg over the past month. “The market has become volatile due to flood-related supply concerns and uncertainty over Indian rice imports,” said Khatunganj trader Shanta Dasgupta.

Rice prices have also increased in other parts of the country. Data from the state-run Trading Corporation of Bangladesh (TCB) show fine rice prices rose 1.29 percent and coarse rice prices 1.85 percent over the past week.

Nirod Boron Saha, a rice miller and president of the Rice and Paddy Stockists and Wholesalers Association in Naogaon, a major rice trading hub in the north, said fine rice is now selling at Tk 2,700 to Tk 2,800 per maund (37.32 kg) in the local wholesale market, up by around Tk 50 per maund (Tk 1.34 per kg) over the past week.

“The market is now in the lean season, as nearly three months have passed since the harvest,” he said, adding that coarse rice prices have remained stable.

In Bogura, rice miller Abul Mansur Khan said fine rice prices have increased over the past 10 days, with a 25 kg sack now selling for Tk 1,850 to Tk 1,900, compared with Tk 1,700 to Tk 1,800 a week ago.

The increase is mainly due to higher paddy prices, he said.

Heavy rains have affected agricultural production in 43 districts, including Chattogram, Noakhali, Cumilla, Barishal, Khulna and Sylhet, according to the Department of Agricultural Extension.

More than five lakh farmers have suffered losses, while over 87,000 hectares of farmland -- about 7 percent of the country’s 13 lakh hectares of cultivated land -- have been damaged.

The affected crops include Aus paddy, Aman seedbeds, summer vegetables, ginger, turmeric and papaya. Of the damaged land, 52,767 hectares were under Aus paddy, 10,504 hectares under Aman seedbeds and 17,834 hectares under summer vegetables.

Agriculturists said the flood damage could tighten food supplies, particularly rice, and make it harder to control inflation.

Agricultural economist Jahangir Alam Khan told The Daily Star that around 15 percent of the Aus crop has been damaged, which could reduce rice production by about 4.5 lakh tonnes.

Although Aman seedbeds can be replanted, the process may still put pressure on supply and affect the market, he said.

“This is the lean season. Traders may try to take advantage of the situation by manipulating the market and pushing up prices,” he added.However, Jahangir said the situation could be managed through effective market monitoring, adding that the government has sufficient food stocks and can intervene if necessary.

The country's capital market began the week on a bearish note as the benchmark index retreated further today (19 July), driven by a sharp sell-off in insurance stocks.

Investor sentiment was rattled by the Bangladesh Securities and Exchange Commission's recent proposal to tighten margin lending regulations specifically for the insurance sector.

The benchmark DSEX index of the Dhaka Stock Exchange plunged by 44 points, or 0.75%, to close the session at 5,855, while the blue-chip DS30 index slipped 16 points to settle at 2,210.

Market insiders noted that the insurance sector's dismal performance was a direct reaction to the exchange commission's draft amendment of margin rules, which has been released for public opinion.

Under the proposed guidelines, the regulator intends to cap the margin loan ratio for life insurance companies at 1:0.25, a stark contrast to the 1:1 ratio available for other firms.

Furthermore, the draft introduces strict price-to-book (P/B) value criteria for margin eligibility. While banks and non-bank financial institutions are allowed a maximum P/B of 3x, insurance companies would be restricted to a maximum P/B of 1x, triggering widespread concern among investors that a vast majority of insurance scrips could be excluded from margin facilities, leading to a potential liquidity crisis in the segment, according to the market insiders.

The impact was evident across the board as 52 out of the 58 listed insurance companies witnessed a sharp decline in their share prices. Only four insurance firms could post gains, while two were unchanged.

Analysts from EBL Securities observed that the capital bourse extended its corrective momentum from the previous session due to a profit-taking frenzy. They added that broad-based selling reflected heightened caution surrounding the proposed margin amendments, which exerted sustained pressure on the market's upward trajectory.

Sheltech Brokerage Limited, in its daily market review, highlighted that the market's performance was also shaped by the re-escalation of geopolitical tensions in the Middle East. Although the session saw several early recovery attempts supported by selective buying, the selling pressure intensified significantly from the mid-session onward.

This resulted in a bearish market breadth, with 245 issues declining compared to 98 advances and 49 remaining unchanged.

Trading activity also cooled slightly, with total turnover on the Dhaka Stock Exchange edging down by 4% to stand at Tk1,070 crore.

On the sectoral front, pharmaceuticals, engineering, and textiles remained the focus of trading, but the insurance sector dominated the narrative of the day's decline. Top traded stocks included Malek Spinning, Techno Drugs, Sharp Industries, BSRM Steel, and LankaBangla Finance.

In the individual scrip segment, Green Delta Mutual Fund and United Insurance were among the few gainers, while Meghna Insurance, Global Insurance, and Agrani Insurance featured prominently on the losers' list.

The bearish sentiment was mirrored at the Chittagong Stock Exchange, where the Selective Categories' Index ended 61 points lower at 9,639. The All Share Price Index at the port city bourse dropped 66 points to finish at 15,748, while turnover plunged by 52% to settle at a modest Tk8.82 crore.

The local currency, BDT, continued to weaken against the US dollar over the past month amid stronger import payment pressure and softer remittance inflows.
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According to the Bangladesh Bank (BB) data, the weighted average interbank exchange rate again rose to Tk 123.58 per US dollar on Sunday from Tk 122.75 a month back. The highest deal was recorded at Tk 123.60 on the day.

The central bank's reference exchange rate, calculated as the weighted average of interbank and customer transactions of at least US$100,000, also increased to Tk 123.50 from Tk 122.94 over the same period.

However, the depreciation of local currency has significant impacts on the importers as they had to pay additional money to open import LCs (letters of credit). And it also has implications for inflation.

Bankers attributed such appreciation of the US dollar mainly to higher demand for the foreign currency as import payments picked up in recent months.

They said banks faced increased demand for dollars at the end of June to settle LCs for government imports, particularly fuel and fertiliser, as well as external debt servicing obligations.

Bankers further said remittance inflows slowed after the Eid holidays, reducing the supply of foreign currencies in the banking system and tightening conditions in the foreign exchange market.

Bangladesh Bank has refrained from purchasing dollars from the market since June as stronger demand for the US currency has narrowed its excess supply.

Between July 2025 and May 2026, the central bank bought about $6.3 billion from commercial banks to rebuild the country's foreign exchange reserves when dollar supply exceeded market demand.

Lower import payments over the past year coupled with the central bank's dollar purchases, helped improve reserve holdings.

According to Bangladesh Bank data, the country's foreign exchange reserves stood at $31.96 billion under the IMF's BPM6 methodology as of July 16 while gross reserves stood at $36.66 billion.

Meanwhile, remittance inflows showed a downward trend in June last.

Expatriate Bangladeshis sent home $2.81 billion during the last month, marginally lower than $2.82 billion in June last year and 18.17 per cent below the inflow recorded in the previous month, according to central bank data.

US consumer sentiment this month jumped to its highest since February on a temporary drop in oil prices, University of Michigan data showed Friday -- but renewed hostilities in the Middle East could reverse this progress.Preliminary data showed the university’s consumer sentiment index came in at 54.4 points in July, up nearly 10 percent from June’s reading.
The bullish outlook came after energy prices fell in June on hopes of a longer term ceasefire between the United States and Iran, after both sides struck an initial deal.But fighting has since resumed, with US President Donald Trump declaring the ceasefire over and oil prices rising again.“Upward momentum may prove difficult to sustain if recent declines in gas prices continue to reverse course,” said Joanne Hsu, director of the University of Michigan survey.She noted that interviews for the July release were conducted between June 23 and July 13, with over 70 percent completed before the United States resumed strikes against Iran on July 7.

“With prices remaining frustratingly high, consumers are hardly ebullient about the economy,” Hsu added.

Sentiment is down 12 percent from a year ago, she said.

US-Israel strikes targeting Iran since late February have plunged the Middle East into war.

This has sent global energy prices rocketing as Tehran retaliated by virtually closing off the Strait of Hormuz, a key waterway for energy transit.

Higher costs have been flowing through the world’s biggest economy, as gasoline prices rose in turn.

While the current average price of regular gasoline is $3.98 per gallon, it remains notably higher than the $3.16 per gallon average seen a year ago.

Year-ahead inflation expectations edged down to 4.2 percent in July from 4.6 percent in June, but this is still elevated as well, Hsu said.

Deal on a long-awaited $335-million Chinese loan for construction of two jetties to upgrade Mongla seaport is likely to be signed within this month, officials say.

A framework agreement was signed during the Prime Minister's China visit last month to this effect.

"We are now working on the signing of the loan deal," a senior official at the Economic Relations Division (ERD) told The Financial Express on Sunday.

The official said there are some specific procedural steps "that we are now completing for the signing of the agreement".

In the first week of February 2025, the Executive Committee of the National Economic Council (ECNEC) approved the Tk 40.68-billion project for expansion and modernisation of Mongla port facilities.

Later, the Mongla Port Authority (MPA) and China Civil Engineering Construction Corporation (CCECC) in late March signed contract for implementation of the project.

The ERD sent the loan application to China late April last year. However, since then, the approval for the loan application had remained stalled.

The situation changed after Prime Minister Tarique Rahman visited China late last month. During his visit, Bangladesh and China signed a framework agreement on the Mongla-port project.Bangladesh Economic Report

A joint communiqué issued after the Prime Minister's visit mentioned the two sides agreed to jointly advance the Mongla Port Facilities Modernization and Expansion Project and the development of the Chinese Economic and Industrial Zone in Chattagram.

Sources have said recently the Ministry of Shipping in a letter to the Finance Division requested taking necessary steps for inclusion of the project in the Annual Development Programme of the current fiscal year (2026-27) and allocating an economic code in favour of the project.

"We have learnt from the ERD that the framework agreement under the project has already been signed. Moreover, there is a possibility of signing the loan agreement for the project within this month," the letter mentioned.

The 'Expansion and Modernisation of Mongla Port Facilities' was listed among the 27 development projects that China pledged to fund by signing an umbrella deal back in 2016 during its president Xi Jinping's Dhaka visit.

The Mongla Port Authority had signed a Memorandum of Understanding (MoU) with the CCECC in August 2021 which latter submitted its financial bid and technical proposal on January 28, 2023.Financial planning services

The project is aimed at construction of two container jetties with a total length of 368 meters, 87,600-square-meter loaded container yard, 34,170-square-meter empty container yard, and 4,260-square-meter hazardous cargo-handling yard.Global Economy Insights

Moreover, four gantry cranes, seven rubber-tyred gantry cranes and 33 other pieces of jetty-related equipment will be bought under the project.

The two new jetties will enhance Mongla port's container-handling capacity by 394,000 twenty-foot equivalent units (TEUs) per annum.

Bangladesh's overall imports remained almost unchanged at US$70.41 billion in the just-concluded fiscal year (FY) 2025-26, as businesses adopted a cautious stance amid ongoing geopolitical tensions.

The actual import in terms of settlement of letters of credit (LCs) edged up by 0.09 per cent to $ 70.41 billion in FY'26 from $70.34 billion a year before, according to the central bank's latest statistics.

On the other hand, the opening of fresh LCs, generally known as import orders, rose by 7.06 per cent to $74.78 billion during the period under review from $69.85 billion in FY'25.

"The upward trend in actual imports is likely to continue in the near term, as the government and the central bank have already taken different measures to stimulate investment, particularly in the productive sectors," a senior Bangladesh Bank (BB) official told The Financial Express (FE), explaining the latest import trends.

He also said the central bank already announced a Tk 600 billion stimulus package aimed at supporting the struggling private sector, boosting investment, and revitalising the economy.

"Proper implementation of the package will help revive sick and closed industries, leading to higher import demand in the coming months," the central banker explained.

Echoing the BB official, Md. Ezazul Islam, Director General of the Bangladesh Institute of Bank Management (BIBM), said overall imports could grow by around 10 per cent in the current fiscal year, driven by the newly elected government's expansionary fiscal policy aimed at boosting investment, particularly in the productive sectors.

He said the BB's latest growth-supportive monetary policy, reflected in its stimulus packages, along with improved political stability and stronger private-sector investment expectations, was also expected to support higher import growth. Dr. Islam, a former executive director of the central bank, made the observations while explaining the outlook. However, the value of petroleum imports rose slightly as global fuel oil prices increased amid persistent geopolitical tensions, according to the central banker.

Petroleum products import increased by 6.42 per cent to $10.68 billion in FY'26 from $10.03 billion of the previous fiscal year.

"The upward trend in fuel oil imports is likely to continue in the coming months if the ongoing geopolitical tensions persist," a senior executive of a leading private commercial bank told The FE.

He also said that most businesses were still adopting a cautious approach to expansion due to uncertainties arising from the conflict in the Middle East.

However, import of capital machinery or industrial equipment used for production dropped by more than 10 per cent to $1.80 billion in FY'26 against $2.02 billion a year ago.

Industrial raw-material import also fell by 3.33 per cent to $23.18 billion during the period under review from $23. 98 billion in FY'25, the BB data showed.

Besides, the import of intermediate goods dropped by 6.51 per cent to $4.17 billion in the outgoing FY'26 from $4.46 billion in the previous fiscal year.

The National Board of Revenue (NBR) has intensified nationwide monitoring and verification of withholding tax compliance through special teams of its tax zones.

In a press release issued today (19 July), the NBR urged all concerned to remain aware of the powers vested in tax officials under Section 147 of the Income Tax Act, 2023.

According to the release, Section 147 authorises tax officials to enter and inspect, without obstruction, the premises, business centers, or offices of any commercial or economic establishment.

The officials are also empowered to examine and requisition books of account, vouchers, bank statements, receipts, and any documents related to economic activities.

The law further authorises tax officials to inspect information stored in computer systems, cloud servers, digital records, or electronic devices and, where necessary, gain access by bypassing passwords or encryption.

To verify the accuracy of taxes deducted at source, officials may temporarily seize and retain account books, documents, electronic records, or devices in their custody.

They are also authorised to collect copies of documents, images, or account records and affix identification marks or official seals where necessary.

The NBR said Section 147(2) of the Income Tax Act provides for penalties against any person who creates obstacles or refuses to cooperate with tax officials in carrying out these revenue collection activities.

The revenue board requested taxpayers deposit taxes deducted at source into the government treasury through the e-Challan system by correctly mentioning the relevant legal provision and the appropriate economic code.

The NBR also advised taxpayers facing any ambiguity, complexity, alleged harassment, or grievance regarding the implementation of Section 147 to contact the member secretary of the NBR Committee on Section 147.

The World Cup left stadiums packed and millions of fans euphoric in Mexico, but failed to lift a sluggish economy weighed down by weak investment.

Uncertainty also looms over the upcoming review of the North American trade agreement (USMCA). The tournament ends Sunday after more than a month of matches across Canada, the United States, and Mexico.

Mexico hosted 13 of 104 games. However, it fell short of ambitious official tourism targets aimed at boosting gross domestic product (GDP), which contracted in the first quarter.

Humberto Calzada, chief economist at Rankia, commented on the situation. He said the World Cup will not structurally change the trajectory of the Mexican economy.

Calzada noted the tournament offers only a short-term stimulus for an economy the government expects to grow between 1.8 percent and 2.8 percent this year, compared to analysts’ forecasts of 1.1 percent.

The economic impact was highly localised. Banorte lowered its estimate of the World Cup’s GDP contribution to 0.4 percent-0.5 percent, down from a previous forecast of up to 0.62 percent.

Banamex calculated the total economic impact at 2 billion dollars. This represents about 0.1 percent of GDP and less than half of the 5.6 billion dollars Mexico received in remittances in May alone.

Deloitte projected the competition created 100,000 temporary jobs, 10 percent fewer than its previous estimate.

Meanwhile, BBVA reported its household consumption indicator fell 0.2 percent month-on-month in June. Spending on hotels was down 10.5 percent and restaurants down 4.9 percent, despite a 16.5 percent spike in entertainment.

The benefits were uneven across the host cities of Mexico City, Guadalajara, and Monterrey. The Mexican Restaurant Association reported that half of its establishments performed worse than in a typical week.

This was due to low hotel occupancy and local protests in the capital. Air travel data was also mixed.

Passenger traffic rose slightly in June in Guadalajara and Monterrey but fell at Mexico City’s main airport.

Analysts say the main driver of the Mexican economy remains outside the stadiums: trade certainty under the USMCA.

With companies holding back investment ahead of the trade pact’s review, and the economy contracting 0.6 percent in the first quarter, the IMF recently trimmed Mexico’s growth forecast to 1.2 percent from 1.6 percent.

US import prices unexpectedly rose in June as declines in the costs of food and energy products were more than offset by higher prices for capital and consumer goods.

This led to the largest annual increase in imported inflation in nearly four years. Import prices increased 0.3 percent last month after a downwardly revised 1.7 percent advance in May, according to the Labor Department.
Economists polled by Reuters had forecast import prices, which exclude tariffs, decreasing 0.7 percent after a previously reported 1.9 percent rise in May.

In the 12 months through June, import prices surged 7.1 percent. That was the biggest advance since August 2022 and followed a 6.6 percent increase in May.

The monthly increase in import prices bucked declines in producer and consumer prices in June, which were attributed to the retreat in oil prices as a fragile ceasefire between the US and Iran took hold.

That truce collapsed last week, pushing oil prices to a one-month high. Prices of imported fuel fell 0.4 percent last month after rising 12.6 percent in May. They jumped 44.1 percent year-on-year in June.

Imported food prices eased 0.2 percent. Excluding food and fuels, import prices increased 0.4 percent after advancing 0.8 percent. The so-called core imported inflation increased 4.6 percent in the 12 months through June.

Core imported inflation was boosted by a 0.4 percent increase in imported capital goods prices, reflecting strong demand for technology products as businesses ramp up investment in artificial intelligence.

Prices for imported consumer goods, excluding automotives, rose 0.3 percent. The cost of imported automotive vehicles, parts and engines eased 0.1 percent.

The Bangladesh Securities and Exchange Commission (BSEC) has proposed sweeping amendments to its margin loan regulations, easing several key provisions in an effort to improve liquidity in the capital market while strengthening the overall risk management framework.

Market participants say the proposed reforms could inject much-needed liquidity into the market by expanding margin financing capacity and making the facility accessible to a wider pool of investors. However, they also express caution that easier access to leverage could encourage speculative trading and increase market risk if not accompanied by effective regulatory oversight.

The securities regulator approved the draft amendments to the Bangladesh Securities and Exchange Commission (Margin) Rules, 2025 on 14 July. The draft was published on the commission's website today (19 July) for public consultation, with stakeholders invited to submit their opinions within the next two weeks.

Financing capacity set to expand

The most significant amendment would raise the maximum margin financing limit for stockbrokers, merchant banks and portfolio managers from three times to five times their core capital or net worth, whichever is higher.

According to market participants, the existing ceiling has limited the ability of many institutions to meet investor demand for margin loans. Raising the limit is expected to expand financing capacity, improve market liquidity and support trading activity at a time when the capital market continues to face a prolonged liquidity shortage.

The regulator has also proposed lowering the minimum investment threshold required to qualify for a margin loan from Tk5,00,000 to Tk3,00,000, making the facility accessible to a larger number of retail and mid-sized investors.

The draft further revises margin call provisions. If an investor's equity falls below 70% of the financing amount, the margin financer will issue a margin call and provide three trading days for the investor to restore the required equity. If the investor fails to do so, no additional financing can be provided, while the financer may sell securities to rebalance the account. If equity drops below 50%, the financer will be allowed to liquidate securities without prior notice.

To discourage leveraged investment in fundamentally weak or overvalued stocks, the regulator has retained and clarified the eligibility criteria for marginable securities. Companies with a price-to-earnings (P/E) ratio above 30 or negative earnings per share (EPS) will remain ineligible for margin financing.

For banks, non-bank financial institutions (NBFIs) and other financial service providers, price-to-book (P/B) ratio will replace the P/E ratio as the valuation benchmark. Securities with a P/B ratio above 3, and insurance companies with a P/B ratio above 1, will not qualify for margin financing.

The draft also states that only eligible securities listed on the main board will qualify for margin financing. Securities listed under the G, N and Z categories, as well as those on the SME, ATB and OTC platforms, will remain ineligible.

Among other proposals, investors will be allowed to maintain both a cash account and a margin account with the same margin financer. Margin agreements will be automatically renewed unless terminated by either party. In addition, a margin financer will not be allowed to invest more than 20% of its total outstanding margin portfolio in a single security, while margin financing will remain capped at a 1:1 equity-to-loan ratio for general securities and 1:0.25 for listed life insurance companies.

Experts welcome reforms but urge caution

Md Ashequr Rahman, managing director of Midway Securities, said the proposed amendments are significantly more flexible than the existing margin loan framework and are likely to improve liquidity in the capital market.

He welcomed the move to determine the margin eligibility of banks, non-bank financial institutions (NBFIs) and insurance companies based on the price-to-book (P/B) ratio, saying it is a more appropriate valuation metric for financial institutions.

He also said reducing the margin call threshold from 75% to 70% would give investors greater flexibility to withstand short-term market volatility. Raising the financing cap to five times a margin financer's core capital or net worth would expand lending capacity and help ease the market's prolonged liquidity shortage.

However, Ashequr cautioned that easier access to margin loans could also encourage speculative trading if not backed by strong regulatory oversight. Recalling the 2010 stock market crash, he stressed that effective risk management and supervision are essential to prevent excessive leverage and avoid repeating past mistakes.

Akramul Alam, head of research at Royal Capital Ltd, said the proposed amendments are logical and better aligned with current market realities.

He believes the revised rules make the margin financing framework more flexible, which should gradually improve liquidity in the capital market over the long term.

Alam welcomed the decision to replace the Price-to-Earnings (P/E) ratio with the Price-to-Book (P/B) ratio for banks, NBFIs and other financial institutions, calling it a more appropriate and internationally accepted valuation method.

However, he noted that the P/E threshold for other sectors has been reduced from 40 to 30, making the eligibility criteria stricter. Overall, he said the amendments strike a better balance between boosting liquidity and containing risk, creating a stronger framework for margin financing.

The benchmark index of the Dhaka Stock Exchange (DSE) slipped below the 5,900-point mark on Sunday, as investors booked profits in recently rallied stocks while assessing the potential impact of proposed changes to the country's margin financing rules.

Market analysts say broad-based selling pressure hit major sectors, including insurance, engineering, food, pharmaceuticals, telecommunications and banking, following weeks of strong gains.

The DSEX had climbed above the 5,900-point level for the first time in nearly two years last week, buoyed by a series of regulatory reforms and capital market-friendly government policies that boosted investor confidence.

"The recent rally prompted many short-term investors to lock in profits," said a leading stockbroker.

He added that investors were also evaluating the implications of the Bangladesh Securities and Exchange Commission's (BSEC) proposed amendments to the margin financing rules, which temporarily dampened market sentiment.

Insurance stocks came under notable selling pressure after the BSEC proposed revising margin financing eligibility criteria by replacing the price-to-earnings (P/E) ratio with the price-to-book (P/B) ratio for banks, financial institutions and insurance companies.

Under the draft rules, banks and financial institutions with a P/B ratio above three and insurance companies with a P/B ratio above one would no longer qualify for margin financing, raising concerns that demand for some shares in those sectors could weaken.

According to EBL Securities, the market extended its corrective trend as persistent selling reflected investors' cautious reaction to the draft margin financing rules.

"Although selective buying initially helped cushion early losses, renewed selling pressure emerged after the publication of the proposed amendments, keeping the market under pressure throughout the session," the brokerage said in its daily market commentary.

The DSEX, the benchmark index of the DSE, declined by nearly 45 points, or 0.76 per cent, to close at 5,856.18, extending its cumulative loss to about 71 points over the past two trading sessions.

The DS30 Index, which tracks blue-chip stocks, fell 17 points to 2,210, while the DSES Index, comprising Shariah-compliant companies, shed nine points to 1,197.

Among the major contributors to the index decline were Walton Hi-Tech Industries, BRAC Bank, Square Pharmaceuticals, BSRM Steels and Olympic Industries, which together accounted for nearly 14 points of the DSEX's fall.

Despite the correction, trading activity remained healthy. Turnover on the premier bourse stayed above the Tk 10 billion mark, although it eased from the previous session. Total turnover stood at Tk 10.70 billion, compared with Tk 11.18 billion in the preceding trading day.

Market breadth remained firmly negative, reflecting widespread selling pressure. Of the 392 issues traded on the DSE, 245 declined, 98 advanced and 49 remained unchanged.

Malek Spinning Mills topped the turnover chart with shares worth Tk 269 million changing hands, followed by Techno Drugs, Shepherd Industries, BSRM Steels and LankaBangla Finance.

Among the day's performers, Green Delta Mutual Fund emerged as the top gainer, advancing 10 per cent, while Meghna Insurance suffered the steepest decline, falling 8.86 per cent.

The Chittagong Stock Exchange (CSE) also ended lower. Its All Share Price Index (CASPI) dropped 66 points to 15,748, while the Selective Categories Index (CSCX) lost 61 points to close at 9,639.

Labour and Employment Minister Ariful Haque Chowdhury yesterday urged the International Labour Organisation (ILO) to expedite the disposal of the complaint pending against Bangladesh under Article 26, saying the country had made significant progress in reforming its labour sector.

He made the call during a bilateral meeting with ILO Director-General Gilbert F Houngbo at the secretariat, where they discussed labour law reforms, employment generation, workers’ rights and compliance with international labour standards.

An Article 26 complaint is the ILO’s highest-level investigative process. It allows countries or ILO delegates to file a formal complaint against a member state for failing to comply with a ratified labour convention.

According to a labour ministry press release, Ariful said the government remained committed to protecting workers’ rights and ensuring safe working conditions.

He said the Bangladesh Labour (Amendment) Act, 2026, was enacted as part of efforts to align the country’s labour laws with international standards.

The minister said Bangladesh had ratified all 10 of the ILO’s fundamental conventions, making it the first country in Asia to do so.

He said the government was working to amend the Bangladesh Labour Rules, 2015, establish a tripartite National Social Dialogue Forum, introduce an independent alternative dispute resolution mechanism, and launch a digital case management system.

He also said steps were underway to nationalise the Employment Injury Scheme to expand social protection for workers in both the formal and informal sectors.

The minister said the government was setting up a directorate of employment under the ministry to strengthen employment services by establishing employment exchanges at the district and upazila levels and expanding skills development and self-employment opportunities.

On overseas employment, he said the government was working to send workers abroad, including to Malaysia, through transparent and lower-cost recruitment while taking action against irregularities and recruitment syndicates.

Seeking greater technical and institutional support from the ILO, Ariful said Bangladesh had made substantial progress in implementing the organisation’s roadmap, including strengthening labour inspection.

He urged the ILO to consider the reforms and expedite the disposal of the Article 26 complaint against Bangladesh.

The ILO director-general welcomed Bangladesh’s recent labour reforms, including the ratification of all 10 fundamental ILO conventions and the enactment of the Labour (Amendment) Act, 2026, the press release read.

He reaffirmed the ILO’s support for Bangladesh in promoting freedom of association, improving labour standards across all sectors, including export processing zones, protecting migrant workers, and creating employment opportunities.

The ILO would continue to provide policy and technical support, including through a proposed joint mission in October, he said.

Labour Secretary Md Abdur Rahman Tarafdar, ILO Country Director Max Tunon, and senior officials from the ministry and the ILO attended the meeting.

Bangladesh is set to implement a new five-year action plan to strengthen the country's trade capacity, improve the investment climate and enhance competitiveness in global markets as it prepares for graduation from the Least Developed Country category, according to Commerce Secretary Md Ataur Rahman Khan.

The initiative will be implemented through the Country Programme Document prepared for the third phase of the Enhanced Integrated Framework, a World Trade Organization-led programme that supports LDCs in building trade capacity, he disclosed while addressing a validation workshop on the Document in the ministry conference room in the capital today (19 July).

He said Bangladesh's economy is currently passing through a critical phase as it prepares for LDC graduation while simultaneously addressing challenges such as non-tariff barriers, international compliance requirements and the need to improve the investment environment, according to a commerce ministry press release.

"The recommendations made under the previous phases of the integrated framework have been duly reflected in the Country Programme Document. The document contains 12 priority activities, each aligned with Bangladesh's trade capacity development and reform agenda," he said.

The commerce secretary stressed that preparing policies and research reports alone would not be sufficient, emphasising that effective implementation would be the key to success.

"Alongside studies, the document must provide clear guidance on how reforms can be effectively implemented. The benefits of these reforms should reach ministries, departments and relevant agencies down to the field level," he said.

He also underscored the importance of trade facilitation, trade liberalisation, legal and regulatory reforms and stronger coordination among ministries to improve the overall business environment.

Speaking at the workshop, Additional Secretary (WTO) of the Ministry of Commerce Khadiza Nazneen said the WTO's Enhanced Integrated Framework (EIF) supports LDCs in strengthening their trade capacity with financial assistance from development partners, including the United Kingdom, the European Union and Sweden.

She said Bangladesh had successfully implemented two phases of the integrated framework programme. The first phase ran from 2009 to 2015, while the second phase was implemented from 2016 to 2024.

"The third phase will now begin. Based on the Country Programme Document (CPD), Bangladesh will receive financial support for implementing the programme. The five-year programme is expected to commence this year," she added.

Former Additional Secretary and EIF Consultant Md Hafizur Rahman said the CPD had been prepared by incorporating recommendations from Bangladesh's existing policies, strategies and previous studies.

He said priority areas were identified based on the Diagnostic Trade Integration Study, the Export Policy, Industrial Policy, Trade Policy, the WTO Trade Facilitation Agreement and investment facilitation initiatives.

"Initially, around 52 project ideas were identified. Later, considering the likely support from development partners and implementation capacity, these were narrowed down to 12 priority activities," he said.

The selected activities focus on export capacity development, trade facilitation, improvement of the investment climate, institutional capacity building, training, research and the application of artificial intelligence in trade-related activities.

Additional Secretary (Free Trade Agreement) Ayesha Akter, Additional Secretary Shibir Bichitra Barua and representatives from various ministries, government agencies and stakeholder organisations also attended the workshop.

Participants expressed optimism that successful implementation of the third phase of the EIF programme would help Bangladesh maintain its competitiveness in international trade and attract new investment after its graduation from the LDC category.

For years, investors in Bangladesh have been voicing their grievances about navigating a maze of regulators, tax authorities and utility providers, rather than the lack of an investment promotion agency.

Invest Bangladesh -- about to become the country’s sole investment promotion agency -- may simplify part of that journey, but it cannot remove every roadblock on its own.

Parliament on Wednesday passed the Invest Bangladesh Bill, 2026, clearing the way for the merger of the Bangladesh Investment Development Authority (Bida), the Bangladesh Economic Zones Authority (Beza) and the Public-Private Partnership Authority (PPPA) into a single agency, Invest Bangladesh.

The law will take effect on a date to be announced in the official gazette.

The Privatisation Commission and the Board of Investment (BOI) were merged into a single agency, the Bida, on September 1, 2016 under the Bangladesh Investment Development Authority Act, 2016.

Despite this move, which aimed to liven up the country’s stagnant investment scenario, privatisation remained stalled thereafter.

Now, the goal behind forming Invest Bangladesh is clear. The new authority promises a genuine one-stop service through integrated digital platforms, statutory timelines for approvals and a single-window clearance system.

If the reforms are implemented well, investors will no longer have to approach multiple agencies for approvals, land, incentives, licences and project implementation.

Bringing investment promotion and industrial land management under one roof may also eliminate many of the coordination problems that existed between Bida and Beza.

The bigger question, however, is whether the merger will significantly improve Bangladesh’s investment climate.

Many experts believe it will help, but only to a certain point.

Former Bida executive chairman Md Sirazul Islam said the agency’s success will depend less on the merger itself than on how it is managed and whether it has enough authority to solve investors’ problems.

That reflects a deeper reality. Many of the obstacles investors face do not originate within Bida, Beza or PPPA. They lie with institutions such as the National Board of Revenue (NBR), customs, the Department of Environment, utility providers, land administration and other regulators responsible for taxation, customs clearance, environmental approvals, utility connections and numerous other permissions.

Unless Invest Bangladesh can effectively coordinate with these agencies -- or compel action where necessary -- it may struggle to resolve the issues investors care about most.

Businesses also face broader challenges. Political uncertainty, exchange-rate volatility and an unpredictable policy environment continue to deter long-term investment. Bureaucratic delays, overlapping regulations, corruption and unreliable gas and electricity supplies add to business costs and uncertainty.

Foreign investors and multinational companies also cite dealings with the NBR and customs as major obstacles. Complex tax laws, inconsistent interpretation of regulations, repeated audits, prolonged tax disputes, unpredictable tax assessments and slow customs clearance raise compliance costs and discourage new investment.

Exporters face similar problems. Delays in clearing imported raw materials disrupt production and increase costs, while work stoppages at the NBR have slowed customs operations, delaying cargo clearance and affecting export commitments.

These administrative bottlenecks cannot be resolved by restructuring investment promotion agencies alone.

Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue (CPD), argues that while integrating investment agencies can improve efficiency, it cannot substitute for wider reforms across government.

Investment decisions depend on the entire business environment. Efficient customs, transparent taxation, timely company registration, reliable logistics, uninterrupted energy supplies and predictable regulation all matter. Weakness in any of these areas undermines the investment climate regardless of how efficiently investment promotion is organised.

M Masrur Reaz, chairman and CEO of Policy Exchange Bangladesh, notes that investment-related services remain spread across more than 50 public institutions. Merging three agencies simplifies only one part of the regulatory process. Investors will still need approvals and services from numerous ministries, departments and regulators.

In his view, Bangladesh would benefit more from eliminating unnecessary licences, registrations and approvals than from institutional restructuring alone.

The government’s rationale nevertheless has merit. A unified agency can provide a clearer institutional identity, reduce overlapping mandates and improve accountability. It should also strengthen Bangladesh’s international investment promotion by giving investors a single point of contact.

If digital one-stop services and statutory timelines are fully enforced, approvals should become faster and more predictable.

Still, these gains will remain limited unless broader governance problems are addressed.

Bangladesh’s investment challenge is no longer just attracting investors but creating a predictable, efficient and transparent business environment. Investors value policy stability, fair taxation, dependable public services and reliable infrastructure as much as incentives.

Invest Bangladesh should therefore be seen as an important institutional reform, not a complete solution. Its success will depend on its ability to coordinate across government and on complementary reforms in agencies such as the NBR, customs, the Department of Environment and utility providers.

The merger may simplify investors’ entry point. Whether they stay will depend on how efficiently the rest of the government functions. Without wider administrative and regulatory reforms, Invest Bangladesh risks becoming a better-organised institution operating in the same difficult investment environment.

Ashik Chowdhury, executive chairman of Bida and Beza and chief executive officer of PPPA, welcomed the merger, saying investors have long sought a unified agency capable of delivering a genuine one-stop service.

“To attract the investment Bangladesh needs for growth and job creation, investors need a true one-stop service framework,” he said.

He added that the merger had been recommended by local and foreign investors as well as the United Nations Conference on Trade and Development (UNCTAD) following its review of Bangladesh’s business climate reforms. According to him, the new agency will be better positioned to support investors and present Bangladesh more competitively as an investment destination.

Bangladesh spent 85 percent more on fuel imports in the first 11 months of the recently concluded fiscal year 2025-26 as higher global energy prices due mainly to the war in the Middle East pushed up the country’s import bill.

The cost of importing crude oil rose 93 percent year-on-year to $1.13 billion in the July-May period. Spending on petroleum products, oil and lubricants climbed 84 percent to $7.89 billion over the same period, according to Bangladesh Bank (BB) data.

The latest data on import volumes are not publicly available. However, the Bangladesh Petroleum Corporation (BPC) had projected the country’s fuel oil demand at 74 lakh tonnes for the last fiscal year.

Bangladesh imports about 95 percent of the petroleum products it consumes each year and nearly one-third of its gas. Around 60-65 percent of its crude oil and 55-60 percent of its liquefied natural gas (LNG) come from the Middle East, according to a World Bank report published in June.

Saudi Arabia, the United Arab Emirates and Qatar supply most of the country’s fuel.

The rise in import costs has added to concerns as renewed conflict in the Middle East in early July has pushed oil prices higher and raised fears over energy supplies.

“The renewed conflict could affect Bangladesh through several interconnected channels,” said Selim Raihan, executive director of the South Asian Network on Economic Modeling (Sanem).

Those are higher fuel and fertiliser prices, rising freight and insurance costs, possible shipping disruptions, weaker export demand, and pressure on remittance flows from the Middle East, said the economist.

He said the result could be a larger import bill, renewed inflation, greater pressure on foreign-exchange reserves, and weaker household purchasing power.

A Sanem research suggests that a combined shock from higher energy prices, freight disruptions, weaker exports and lower remittances could reduce the country’s GDP by around 3 percent, cut exports by nearly 6 percent and lower real wages by more than 2 percent, while pushing consumer prices up by more than 6 percent.

“These are scenario estimates rather than forecasts,” said the Sanem executive director, adding, “They show the scale of Bangladesh’s exposure.”

In its June report, the World Bank said that the conflict has already disrupted energy markets. Five of state-owned Petrobangla’s six LNG supply contracts had been declared force majeure, while spot LNG prices had risen to $24-$28 per MMBtu (metric million British thermal unit), more than double previous levels.

The multilateral bank projected Bangladesh’s energy subsidies would rise to 2.8 percent of GDP in FY26, with the total subsidy bill reaching between $2.5 billion and $4.8 billion, up from about $1.5 billion to $2.5 billion in recent years.

That would leave less room for social spending and emergency support.

“These pressures are also contributing to disruptions in power generation, domestic fertiliser production, and industrial activity,” said the World Bank, which has approved $350 million to strengthen Bangladesh’s energy security.

Last month, Finance Minister Amir Khosru Mahmud Chowdhury told parliament that subsidies for oil, gas, electricity and fertiliser alone would require an additional Tk 42,600 crore in FY26 because of the war in the Middle East.

Apart from the increased subsidy pressure, the rise in oil prices is affecting Bangladesh through three main channels -- higher inflation, increased costs for industry and agriculture, and greater pressure on the balance of payments (BoP).

“The greatest pressure is likely to fall on transport and logistics, power and gas, energy-intensive manufacturing, construction, fertiliser-dependent agriculture, food processing, and export-oriented sectors such as RMG,” said Selim, who is also an economics professor at Dhaka University.

He said, “Higher diesel, gas, electricity, fertiliser, and shipping costs would raise production costs across the economy and could quickly pass through to food and consumer prices.”

Fertiliser imports have also become more expensive as the war has disrupted production and supplies.

Bangladesh spent $3.60 billion on fertiliser imports during July-May of FY26, up 43 percent from a year earlier, adding to pressure on the country’s external balance.

The World Bank said Bangladesh’s farming sector depends heavily on fertiliser, using nearly 392 kilograms per hectare, more than twice the global average.

That makes food production highly vulnerable to disruptions in global fertiliser supplies and price swings.

The country depends heavily on imported urea, diammonium phosphate, triple super phosphate and muriate of potash. Domestic urea production also relies on a stable supply of gas, the report said.

The conflict has already disrupted that system. Five of the country’s six urea plants have been shut because of gas shortages, while urea prices have risen by about 30 percent. Prices could double if disruptions continue, the report added.

Meanwhile, Selim said the government should secure enough fuel and fertiliser, diversify suppliers and shipping routes, build strategic reserves and ensure enough foreign currency for essential imports.

He said support should be targeted and temporary, focusing on public transport, irrigation, small farmers, essential food supply chains and vulnerable households.

At the same time, he said the crisis should be used to speed up investment in renewable energy, reduce transmission losses, improve industrial energy efficiency and cut long-term dependence on imported fossil fuels.