The Dhaka Stock Exchange (DSE) has resumed halting share trading under its real-time surveillance mechanism, a practice that had largely fallen out of use for nearly a decade.

In the past two weeks, the DSE halted trading in Sonargaon Textiles, Shyampur Sugar Mills and Bangladesh National Insurance, each after citing “unusual price movements”.

Trading resumed in all three the following day, but industry officials say the monitoring provides early warning signals to investors that there might be suspicious trading, which helps them make critical decisions.

“As this type of trading halt has not been practised in the market for many years, it seems unusual -- however, it’s business as usual,” said Nuzhat Anwar, managing director of the DSE. “We will always do that to protect investors’ interests.”

Real-time surveillance is a common practice to correct market distortions, and the DSE is equipped to do that, she said, adding that the stock exchange is getting support from the regulator in this regard.

The mechanism works in stages. Once a halt is triggered, the exchange asks the company whether it has any undisclosed price-sensitive information. If irregularities are suspected, it investigates whether unusual trading or malpractice occurred, and can take action accordingly.

Abul Kalam, spokesperson of Bangladesh Securities and Exchange Commission, said the halts serve as an early warning signal to investors that trading in a particular security may be suspicious.

He explained that previously, formal enquiries into suspicious trading took too long, that ordinary investors would buy into the stock in the meantime, unaware of the suspected irregularity, and suffer losses when the correction came.

“Now they are receiving early warning signals,” he said.

The real-time monitoring practice was last used around a decade ago before being discontinued. The DSE has authority under its listing rules to halt, suspend or delist securities.

The price data illustrates how sharply the targeted stocks had run up. Shyampur Sugar Mills, a junk-category stock, had surged 66 percent to Tk 239 in the month before the halt. It has since corrected around 30 percent to Tk 167, according to DSE data.

Shares of Sonargaon Textiles more than doubled from Tk 42 to Tk 87 over a month, and fell about 8 percent to Tk 80 after trading was halted.

Bangladesh National Insurance rose 46 percent to Tk 116 before the halt, and has since dropped around 9 percent.

Separately, the DSE board has decided to develop software to monitor investors’ funds and shareholding positions in real time, aimed at curbing misappropriation by brokers through consolidated customer accounts.

The move comes against the backdrop of thousands of investors falling victim to embezzlement at several brokerage firms over the past five years.

Saiful Islam, president of the DSE Brokers’ Association, welcomed the real-time surveillance but said a one-day suspension alone is not sufficient.

He noted that shares of companies that have been out of production for years continue to surge periodically, misleading investors.

Islam called on the exchange to publicly disclose the names of companies that have remained out of production for extended periods and to follow global practice, where such companies face trade suspension until they resume operations and are eventually delisted if they do not.

According to listing regulations, a company will be delisted if it remains out of production for three years. However, stock exchanges are reluctant to delist companies in Bangladesh as investors have strongly protested such decisions in the past, a top official of the Dhaka bourse said.

Islam hopes that the current DSE board will begin enforcing the rule. “Otherwise, the market will remain full of junk stocks year after year.”

The scale of the problem is significant. Of 396 listed shares, 125 are classified as Z category or junk stocks, while 75 are low-performing B category companies. Only 196 are A-category stocks, according to DSE data.

The United States has started an investigation over “unfair” pharmaceutical pricing policies in Germany, a move that could lead to fresh tariffs.

US President Donald Trump’s administration has launched similar probes into dozens of trading partners over issues including forced labor and industrial overcapacity, leading to proposals of higher levies in some cases.

The US move on Thursday comes after the German government sought to overhaul its statutory health insurance system, including through lowering the prices public insurers pay for medicines, in a bid to rein in public spending.

The probe announced by the US Trade Representative’s office will determine if Germany’s “persistent underpayment for innovative pharmaceutical products” is “unreasonable or discriminatory and burdens or restricts US commerce”.

The move -- launched under Section 301 of the 1974 Trade Act -- came after the USTR pointed to evidence Germany has “unfair pricing” policies and practices.

Reduced revenue associated with such practices also appeared to contribute to reduced investment for research and development, among other issues, it added.

“As a result, the United States pays a disproportionate share of global R&D costs for innovative pharmaceuticals,” the notice said.

“President Trump has made clear that American patients should not be shouldering a disproportionate share of global pharmaceutical research and development,” US Trade Representative Jamieson Greer said in a statement.

He cited Germany’s plans to fast-track legislation “that would further reduce its spending on innovative pharmaceuticals.”

The US trade envoy’s office will next receive comments and hold a hearing in September as part of the investigation.

Germany’s health ministry confirmed ongoing talks with Washington on the issue.

“I assume the United States will honour the agreement we have in place. Reimbursements for modern, innovative medicines by our health insurance funds is a decision which falls within our national jurisdiction,” German Chancellor Friedrich Merz told reporters in Brussels on Friday.

Health Minister Nina Warken said earlier this week it would be tough for Germany to pay higher prices. “We have a tense financial situation in our health insurance system,” she said.

Germany’s VCI pharmaceutical industry federation said it took the US move “very seriously.”

“In an already tense trade policy environment, companies need reliability and planning certainty -- not a new source of disruption,” the group said in a statement to AFP.

Trump has rolled out sweeping tariffs since returning to the White House last year, though the US Supreme Court struck down many of them in February.

His administration has since turned to trade probes as officials look to reimpose more lasting duties.

This month, the USTR’s office proposed new tariffs of up to 12.5 percent on dozens of countries under its investigation into forced labor concerns.

The government has formed a taskforce to oversee its deregulation drive and will launch a dashboard from the first week of next month to monitor the progress of project implementation in every ministry, Finance Minister Amir Khosru Mahmud Chowdhury said yesterday.

Running a business in Bangladesh is not possible without deregulation, the minister said at a discussion on the proposed national budget organised by the Centre for Policy Dialogue (CPD) at Lakeshore Hotel in Dhaka.

“Those who will create barriers in deregulation, we will show them the way out, as we are working for the country, for the people. We are an elected government,” he said.

He noted that project preparation alone currently takes more than one and a half years, with implementation taking considerably longer still, driving up project costs, the burden of which is ultimately borne by ordinary people.

To keep such delays in check, the government is rolling out dashboards in each ministry that will track implementation progress on a daily basis, said Khosru, who is also the planning minister.

As part of broader institutional reform, the government will also separate the National Board of Revenue’s (NBR) policy formulation and tax collection functions, he said. The policy formulation wing will be under a panel of experts, while a panel of bureaucrats will handle implementation.

He added that the traditional system of Letters of Credit will also be revised, as LC-related delays slow down trade and raise the cost of doing business.

Responding to criticism from various quarters over the budget’s size and targeted revenue mobilisation, the minister said the government would issue bonds to help finance the budget and reduce reliance on bank borrowing, in order to free up funds for the private sector.

He said he was hopeful these reforms would help raise the tax-to-GDP ratio.

Khosru also mentioned that the government has worked to make the Family Card programme transparent, with safeguards against political interference, to ensure intended beneficiaries receive the benefits.

He identified gas, electricity and reliable internet connectivity as major challenges, saying the government has been working to address them.

The minister projected that it may take around two years to stabilise the current fragile economy, with signs of broader prosperity expected to follow from the fourth and fifth years.

He also said the government has allocated Tk 800 crore for the creative economy, to provide loans for developing theatres and the sports economy and to support singers, bringing them into mainstream economic activity.

CPD FLAGS IMPLEMENTATION RISKS

Presenting the keynote paper at the event, CPD Executive Director Fahmida Khatun said the budget relies on optimistic assumptions and that its success will depend heavily on the quality of execution.

“This will require strong institutions that have the capacity to implement the budget efficiently and deliver tangible outcomes,” she said, adding that the budget represents the new government’s first major opportunity to demonstrate its ability to drive economic recovery through sustained structural reforms.

In the keynote paper, CPD laid out eight key observations on the proposed budget. The think tank said macroeconomic projections for FY2026-27 appear optimistic and warned that the proposed fiscal framework is unlikely to hold.

While public expenditure has been reprioritised towards human capital sectors, CPD noted that the Annual Development Programme, though ambitious, faces concerns over effective implementation.

The think tank also said fiscal measures reflect a degree of predictability but raise equity concerns, and flagged the absence of a comprehensive roadmap to support Bangladesh’s LDC graduation.

It further observed that the social sectors prioritised in the budget lack adequate implementation capacity, and that allocations meant to drive employment generation point to a deeper structural challenge.

Businessmen, ministers and economists participated in the discussion moderated by CPD Distinguished Fellow Mustafizur Rahman.

Hossain Zillur Rahman, executive chairman of the Power and Participation Research Centre (PPRC), called on the government to formulate a roadmap to implement the proposed budget, as there are concerns about its capacity for implementation.

The government should also publish a three-month progress report on budget implementation so that people can know its real status, he said.

Mohammad Abdur Razzaque, chairman of the Research and Policy Integration for Development (RAPID), said the proposed budget stands at 13 percent of GDP, while 23 percent of GDP would be required to achieve the government’s targeted outcomes.

He said the Family Card programme could reduce the poverty rate by 7 percentage points if properly implemented.

To reach the government’s target of a $1 trillion economy by 2034, Razzaque said GDP growth would need to reach 8 percent, and the investment-to-GDP ratio, combining public and private investment, would need to rise to 40 percent from the current 28 percent.

He said the government should act quickly to achieve this while also controlling high inflation, noting that the revenue target is ambitious even as official development assistance continues to decline.

Anwar-ul Alam Chowdhury Parvez, president of the Bangladesh Chamber of Industries, said the private sector continues to face significant difficulties due to inadequate energy supply and high bank interest rates, despite various measures taken to address them.

Montu Ghosh, president of the Bangladesh Garment Workers Trade Union Centre, said budget implementation will be difficult given existing capacity constraints, and that the lives of workers are unlikely to change significantly as their concerns have not been given adequate importance in the proposal.

He noted that workers and union leaders have long demanded a rationing system for garment workers, which has yet to be introduced.

He also criticised the government’s bank borrowing plans, warning that they could affect credit flow to the private sector.

Bangladesh's cashew processing industry leaders have expressed concern over proposed tariff changes in the FY2026-27 budget, warning that the new structure could make imported finished cashews cheaper than locally processed products and threaten the viability of domestic processors.

Industry leaders say the proposed measures create an inverted duty structure by increasing the tax burden on imported raw cashew nuts while allowing finished cashew imports from India to continue benefiting from tariff preferences under the South Asian Free Trade Area (Safta) agreement.

They argue that the policy could put around 20 processing factories at risk and discourage planned investments worth hundreds of crores of taka.

The issue involves two categories of products – raw cashew nuts in shell, which are used by local processors, and shelled cashew kernels, the finished product sold in the market.

Industry insiders say five kilograms of raw cashew nuts are required to produce one kilogram of finished kernels.

Under the proposed budget, imports of raw cashew nuts in shell would be subject to 15% customs duty and 15% VAT, raising the total tax incidence from 13.58% to 40.38%.

At the same time, imported shelled cashews, particularly from India, would continue to receive preferential treatment under Safta reducing the impact of higher customs duties.

According to industry calculations submitted to the National Board of Revenue (NBR), the proposed structure would raise the cost of producing one kilogram of locally processed cashew kernels to about Tk1,725.

In comparison, imported finished cashews from India would cost around Tk1,282 per kilogram, creating a price difference of nearly Tk471.

Processors say such a gap would make local production commercially unsustainable.

"If this structure remains unchanged, factories will be forced to shut down as importers will be able to sell finished products at prices far below our production costs," said Robiul Islam Azad, managing director of Green Harvest Fresh Produce Ltd.

He said Bangladesh imports most of its raw cashew nuts from African countries because local production is insufficient.

"Bangladesh imports raw cashew mainly from African countries because domestic production is insufficient. These countries are outside Safta so we have to pay the full customs duty. Importers of finished cashews from India, however, benefit from preferential tariffs," he said.

NBR officials have defended the proposed measures, saying local farmers need protection from cheaper imports and should receive better prices for domestically grown cashews.

However, processors argue that domestic production remains too low to support such a policy.

Industry estimates show Bangladesh produces about 2,000 tonnes of in-shell cashew nuts annually, while demand exceeds 15,000 tonnes.

The country consumes around 3,000 tonnes of shelled cashews each year, of which local processors produce about 800 tonnes and imports account for the remaining 2,200 tonnes.

"Even for existing production, processors need over 4,000 tonnes of raw cashew nuts annually. Local production is only around half that amount. Imports are therefore a necessity, not a choice," BSRM Group Deputy Managing Director Tapan Sengupta said.

Industry seeks supplementary duty

Bangladesh's cashew processing industry emerged about a decade ago, supported by growing cultivation in the Chittagong Hill Tracts and other regions.

However, processors say they have long struggled to compete with imported products.

Entrepreneur Shakil Ahmed Tanvir, who established the country's first commercial cashew processing plant, said the facility ceased operations in 2022 after years of losses.

"Local processors have long faced unfair competition from imported kernels sold at prices below domestic production costs," he said.

Despite those challenges, several large companies have recently invested in the sector.

BSRM launched a processing plant in Chattogram in 2023 and announced plans to invest Tk157 crore in a larger facility at the Mirsarai Economic Zone.

Kazi Farms has also announced plans to invest Tk181 crore in a similar project.

Industry representatives warn that these investments could be delayed or reconsidered if the proposed tariff structure is finalised without changes.

They argue that increasing customs duties alone does not provide effective protection because imports from India continue to receive concessions under Safta, while raw cashew imports from countries such as Tanzania, Benin, the Ivory Coast and Ghana remain subject to the full duty burden.

To address the issue, processors have proposed imposing a 20% supplementary duty on imported shelled cashews instead of increasing customs duty.

They say a supplementary duty would apply equally to all imports and would not be offset by Safta preferences.

"Raising customs duty alone will not solve the problem because Safta reduces its impact. A supplementary duty would ensure fair competition and prevent cheaper imported kernels from dominating the market," said Mohammad Azad Iqbal Pathan, president of the proposed Bangladesh Association for Cashew Processors.

Industry leaders argue that conventional tariff comparisons fail to account for the economics of cashew processing. According to Robiul Islam Azad, the global average kernel outturn ratio is only 22%, meaning processors recover just 20-24 kilograms of edible kernels from every 100 kilograms of raw cashew nuts. "Because more than four kilograms of raw cashew nuts are required to produce one kilogram of kernels, the tariff on imported finished cashews should be at least 4.5 times higher than the duty on raw materials. Otherwise, local processors cannot compete with imported kernels," he said.

The Bank of Japan’s decision to raise a key interest rate is expected to have both positive and negative impacts on households and businesses. While interest earned on bank deposits will increase, burdens from borrowing, such as housing loans, will rise. Whereas the elderly are expected to benefit greatly from the interest rate hike, younger people are likely to be adversely affected.

In response to the central bank’s decision, three major banks -- MUFG Bank Ltd, Sumitomo Mitsui Banking Corp and Mizuho Bank Ltd -- announced Tuesday that they would raise interest rates on savings accounts by 0.1 percentage points to 0.4 percent, effective August 3. The rate stood at 0.001 percent in March 2024, when the Bank of Japan ended its negative interest rate policy, meaning that the new interest rate represents a 400-fold increase.

For MUFG and Sumitomo Mitsui, this will mark the highest level in 34 years, or since August 1992, at a time when the two banks had yet to be formed through mergers of their various predecessors. As for Mizuho, the new interest rate will be the highest level since the bank’s founding in 2002.

According to estimates by the Mizuho Research Institute, the overall household economy will see a net gain of ¥1 trillion per year after balancing the positive and negative effects of the interest rate hike. This will be primarily due to an increase in interest income, which translates into an average annual gain of ¥20,000 per household.

However, the degree of the benefits will vary for each household depending on the size of their deposits and borrowings. Generally speaking, older people with larger financial assets will benefit more from increased interest income, while younger households with large outstanding housing loans will tend to be more negatively impacted.

According to the company that operates mogecheck, a site comparing mortgages, in a case where ¥50 million is borrowed on a 35-year variable-rate mortgage and the variable interest rate rises to 1.25 percent, the monthly payment will increase by ¥5,900 to reach ¥147,043, compared to before the hike. Since 80 percent of mortgage borrowers choose variable-rate loans, many households are expected to be affected.

The total repayment amounts for student loans, education loans and auto loans are also expected to rise. As interest rates are determined based on various factors, such as government bond yields, borrowers may be forced to revise their repayment plans.

As the interest burden of borrowing increases, the interest rate hike will inevitably affect corporate management. Mizuho Research Institute estimates that ordinary profit across all industries, excluding the finance and insurance sectors, will be reduced by 1.0 percent, or about ¥1.1 trillion. Small and medium-sized companies with low profits against interest-bearing debt will tend to be affected. Businesses with capital of less than ¥10 million are projected to see their ordinary profit decline 6.6 percent.

Looking Back on 1995

The year 1995 — the last time the Bank of Japan’s key interest rate was at 1 percent — witnessed a series of major events, such as the Great Hanshin Earthquake and the sarin gas attack on the Tokyo subway.

On the economic front, the prolonged economic slump following the collapse of the bubble economy brought down a number of financial institutions, as they struggled with nonperforming loans. With the consumer price index stuck at zero percent growth, the nation fell into a long period of deflation.

The BOJ was in the process of cutting interest rates, lowering the official discount rate -- then the policy interest rate -- from 1.75 percent to 1 percent in April, and then to 0.5 percent in September.

Along with the economic slump, successive failures of banks and credit cooperatives in July and August stoked concerns about the financial system.

Meanwhile, the yen was appreciating, at one point strengthening to the ¥79 level to the dollar.

Monetary easing was aimed at simultaneously correcting the strong yen to improve the earnings of exporters, stimulating the economy and disposing of nonperforming loans.

However, progress stalled on the nonperforming loans issue, causing Hokkaido Takushoku Bank and the former Yamaichi Securities to fail in 1997.

As prices remained flat, the government acknowledged in 2001 for the first time since World War II that the Japanese economy was deflationary.

The BOJ introduced its zero-interest-rate policy in 1999 and maintained ultralow rates thereafter.

Haruhiko Kuroda, who became BOJ governor in 2013, pursued aggressive monetary easing, culminating in the adoption of a negative interest rate policy in 2016.

The World Bank’s board is set to approve $1.5 billion in budget support under three loan programmes for Bangladesh this month, a development that will bring much relief to the strained government finances amid the Middle East war.

Of this, about $800 million will be repurposed from existing project loans under the Rapid Response Option (RRO) window, $300 million for fertiliser imports and food assistance, and $400 million for banking sector reforms.

The breakthrough came after multiple rounds of talks in both Washington DC and Dhaka, The Daily Star has learnt from officials involved with the negotiations.

Bangladesh will need an additional $2.61 billion to pay the elevated energy and fertiliser import bills for the last quarter of fiscal 2025-26 because of the Iran war that began on February 28, according to a finance ministry impact analysis.

Subsequently, in April, the finance ministry sought urgent budget support from the WB and other donor agencies due to rising expenses for LNG, fuel and fertiliser imports following the Iran war, and the Washington-based multilateral lender is providing support as part of that request.

Any member state of the WB can restructure or repurpose up to 10 percent of its ongoing portfolio in the event of an unexpected natural or man-made emergency under the RRO window. Bangladesh applied to the WB on April 5 to receive assistance through the RRO.

Assistance under the RRO can be accessed in two ways. One is through the creation of a Contingent Emergency Response Project (CERP), which allows financing of emergency expenses such as food and other essential imports.

Bangladesh is set to repurpose $785 million from 12 projects through this CERP mechanism, which will be taken as budget support. Another $300 million will be taken as budget support to ensure food security.

And $400 million will be taken under the Financial Sector Support Programme for banking sector reforms. As part of the conditions, the government has agreed to scrap the much-criticised Bank Resolution Act, 2026.

The WB has also advised stricter enforcement of related-party lending rules, full supervisory powers for the BB and corporate governance aligned with international norms.

Relevant draft amendments prepared during the interim government were shelved due to opposition from bank owners, The Daily Star has learnt from finance ministry officials involved with the proceedings.

The Financial Institutions Division has now sent them back to the BB for review and consultation.

The other reforms include amending the Deposit Protection Act, enacting laws on distressed asset management and insolvency, and licensing small companies to recover bad loans under the BB regulation.

Two new laws, the Distressed Asset Management Act (DAMA) and the Insolvency and Bankruptcy Act, will be enacted.

Under DAMA, small companies will be licensed to recover bad loans with legal authority similar to banks, regulated by the BB.

The law will establish a framework for recovery, management, securitisation and trading of defaulted loans.

The World Bank Group’s International Finance Corporation will provide technical support.

The Insolvency and Bankruptcy Act will align with international best practices to strengthen insolvent banks and financial institutions.

State-owned banks will also undergo asset quality reviews (AQR).

The interim government conducted AQR in nine private banks, after which five were merged into Sommilito Islami Bank.

The WB’s programme documents noted structural weaknesses, including poor corporate governance, regulatory capture and politically influenced related-party lending.

Loopholes in definitions allowed complex inter-family relationships to obscure the scale of related-party lending, leading to fraudulent and willful defaults, and embezzlement by banks’ shareholders and management.

“A few big business groups siphoned off billions of dollars from the banking sector. In addition, the lack of proper enforcement and regulatory forbearance has exacerbated the problems, encouraging risky behavior, impacting market discipline and delaying necessary reforms,” the WB said.

State-owned banks are the most vulnerable, holding 27 percent of total assets, over $50 billion or 12 percent of GDP. Three state-owned commercial banks are systemically important.

In this context, the Financial Sector Support Project II is seen as critical for stabilising the sector.

It aims to strengthen deposit protection, improve supervisory capacity, and support resolution and restructuring, including reforms of state-owned banks.

“These interventions will address longstanding issues, improve authorities’ preparedness for and management of the current banking sector turmoil, paving the way for resolution and restructuring of weaker banks, including possible recapitalisation of the reformed SOBs.”

The programme is expected to restore stability, strengthen intermediation, and support long-term growth, the WB said.

Around Tk3,000 crore worth of closed-end mutual funds under the trusteeship of the Investment Corporation of Bangladesh (ICB) are set to face conversion into open-end funds or liquidation under newly introduced mutual fund rules.

Of the 20 mutual funds under ICB's trusteeship, 18, including eight managed by ICB Asset Management Company, have fallen within the scope of the new regulations. This is even though the funds' original maturity periods run from 2027 to as late as 2033.

Under the rules, any closed-end mutual fund whose average trading price remains at a discount of 25% or more to its cost-based Net Asset Value (NAV) over six months must be converted into an open-end fund or liquidated.

The trustee must convene an extraordinary general meeting (EGM), seek unit holder approval, and obtain subsequent clearance from the Bangladesh Securities and Exchange Commission (BSEC). A decision requires at least 75% support from votes cast.

Data show that the discount between market prices and cost-based NAVs for the 18 affected funds ranges from 30% to 76% – well above the 25% threshold – making conversion or liquidation mandatory, subject to unit holder voting.

BSEC Executive Director and spokesperson Abul Kalam told The Business Standard that trustees would arrange unit holder meetings and implement whichever decision clears the 75% threshold.

The process became entangled in legal complications after investors filed writ petitions challenging the rules, prompting the High Court to issue a status quo order. On 9 June, BSEC directed trustees to proceed with conversion or liquidation.

Two days later, it issued a follow-up letter instructing trustees to continue while excluding the interests of petitioning unit holders – a move that alarmed market participants who feared compliance could be construed as a violation of the court order. ICB consequently sought clarification from the regulator and withheld action.

The impasse ended on 17 June when the Appellate Division's Chamber Court stayed the High Court order, clearing the path for the process to resume. Lawyers said trustees may now move forward, though an ICB trustee official said the organisation had yet to receive fresh instructions.

"We heard about the stay order, but have not received any instruction from the commission. We have already written to them seeking guidance," the official said.

Stakeholders continue to object to certain provisions, particularly Section 62, of the new rules. A senior asset management official, speaking anonymously, noted the rules were framed under the previous commission and called on the new commission to engage asset managers and trustees on their concerns.

Bangladesh RACE Asset Management, which has also filed a writ petition, is scheduled for a hearing on 22 June.

ICB Asset Management Company operates nine mutual funds, eight of which are caught by the new rules, with discounts to cost-based NAV ranging from 47% to 67%. All six funds managed by Bangladesh RACE Asset Management PCL also exceed the threshold and face conversion or liquidation.

Across the broader mutual fund industry, total approved fund size stands at Tk13,090 crore – 35 closed-end funds accounting for Tk4,431 crore and 105 open-end funds for Tk8,659.5 crore.

The government plans to borrow $2.8 billion from the International Islamic Trade Finance Corporation (ITFC) to finance imports of fuel oil, liquefied natural gas (LNG) and fertiliser in fiscal year 2026-27.

To this end, Bangladesh Petroleum Corporation (BPC) stressed that ITFC reduces its financing markup and the deal allows letters of credit (LCs) to be opened through any Bangladeshi bank. The corporation also proposed provisions allowing Bangladesh to import oil and gas from any energy-rich country, including but not limited to member states of the Islamic Development Bank (IsDB), in order to strengthen energy security and meet emergency requirements.

According to officials at the Economic Relations Division (ERD), negotiations on the financing proposal will take place during the Annual Financing Plan Meeting (FY2026-27) scheduled for 21-24 June in Jeddah, Saudi Arabia. The final financing amount is also expected to be determined during the meeting.

The Bangladesh delegation will be led by ERD Secretary Shahriar Kader Siddiky, Energy and Mineral Resources Division Secretary Mohammad Saiful Islam, and Agriculture Secretary Dr Rafiqul I Mohamed.

Proposed financing breakdown

According to ERD sources, a preparatory meeting held on 4 June decided on borrowing of $2.01 billion for fuel oil imports by BPC, $600 million for LNG imports by Petrobangla, and $200 million for fertiliser imports by the Bangladesh Agricultural Development Corporation (BADC).

BPC informed the meeting that its financing requirement for fuel imports in the current fiscal year was $1.65 billion, of which $700 million has already been disbursed. Due to rising global oil prices, the corporation requested a higher financing ceiling for the next fiscal year.

The meeting also decided to conduct a comparative analysis of fuel procured through ITFC financing and fuel purchased directly from the spot market to strengthen Bangladesh's negotiating position.

Petrobangla officials said the company had largely avoided excessive borrowing during FY2025-26 thanks to a relatively stable economy, continued remittance inflows and adjustments to domestic gas prices.

However, the conflict involving Iran has disrupted LNG shipments through the Strait of Hormuz, one of the world's most important energy transit routes.

As a result, Petrobangla plans to utilise the full $600 million financing facility available under existing agreements.

According to its FY2026-27 plan, major long-term suppliers, including QatarEnergy, OQ Trading Limited and Excelerate Gas Marketing Limited Partnership, have declared force majeure until June 2026, increasing Bangladesh's dependence on alternative sources and spot-market purchases.

Petrobangla expects to use financing for at least two LNG cargo purchases in June 2026 and plans extensive utilisation of the remaining balances under its existing financing agreements.

BADC seeks fertiliser financing flexibility

ERD sources said ITFC had planned a $500 million financing package for BADC in FY2025-26, comprising $200 million in confirmed financing and $300 million in contingency support.

A $100 million agreement for fertiliser imports was signed in September 2025. However, due to the ongoing Middle East crisis, ITFC has temporarily suspended the financing and the funds have yet to be disbursed.

BADC said Bangladesh had already agreed to receive up to $500 million in financing support from ITFC for food security purposes. However, the initial $100 million facility was tied exclusively to fertiliser imports from Saudi Arabia and remains unavailable because of regional instability.

ITFC has also requested additional information and documentation to process a further $200 million financing facility.

BADC has proposed that the remaining $200 million be released quickly and made available for fertiliser imports from any country in the world. It also recommended that future financing agreements avoid country-specific restrictions and allow imports from any source, particularly member countries of the Islamic Development Bank.

Participants at the preparatory meeting agreed that these proposals should be presented during the upcoming negotiations with ITFC.

ITFC's role in Bangladesh

ITFC operates as an autonomous member of the Islamic Development Bank Group, headquartered in Jeddah, Saudi Arabia.

The IsDB has been supporting Bangladesh since 1977. It began financing fuel oil imports for BPC in 1997, and since 2008 the support has continued through ITFC.

Between 2008 and FY2025-26, ITFC provided approximately $21.77 billion to support Bangladesh's energy security.

BPC imports Murban crude oil from ADNOC in Abu Dhabi and Arabian Light crude from Saudi Aramco. Janata Bank currently opens import LCs for Murban crude, while ITFC provides financing to settle payments. ITFC has also been directly financing Arabian Light crude imports after Agrani Bank stopped opening LCs due to the dollar shortage.

For LNG imports, ITFC signed a $100 million facility in 2024 and a $300 million facility in 2025, both extended until 2027 at a financing cost of SOFR plus 1.75%. Although a total LNG financing ceiling of $600 million has been approved for Petrobangla, it has not yet been fully utilised.

ITFC also provided $100 million to BADC in FY2025-26 for fertiliser imports at a rate of six-month USD SOFR plus 1.75%, along with a 0.20% administrative fee.

Push for higher financing ceiling

ERD officials said an ITFC delegation visiting Bangladesh in May 2026 expressed interest in continuing support for the country's growing energy needs and expanding financing into agriculture.

The ERD emphasised that food and agricultural security are now as important as energy security and formally requested that ITFC increase its overall financing ceiling to $3.5 billion for FY2026-27.

The proposal reflects rising global commodity prices, growing import demand and the need to safeguard Bangladesh's supply chains.

ITFC acknowledged the request and said any increase in financing would depend on Bangladesh's formal proposals and financing requirements.

An inter-ministerial preparatory meeting will finalise Bangladesh's position before the Jeddah negotiations.

China urged the Group of Seven to abide by market economy principles and international economic and trade rules and stop undermining the global trade order on Thursday, responding to the bloc’s latest joint statement that calls for reducing reliance on China for critical minerals and rare earths.

Foreign Ministry spokesman Lin Jian made the remarks at a regular press briefing. China’s position on safeguarding the stability and security of critical minerals and the global industrial and supply chains remains unchanged, Lin said. All parties share the responsibility to play a constructive role in this regard, he added.

He noted that China’s efforts to standardize and improve its export control system are consistent with internationally accepted practices and are intended to better safeguard world peace and regional stability and fulfill non-proliferation obligations.

“We urge the G7 to earnestly abide by market economy principles and international economic and trade rules, and stop using the rules of small exclusive circles to disrupt the international economic and trade order,” Lin said.

China urged the Group of Seven to abide by market economy principles and international economic and trade rules and stop undermining the global trade order on Thursday, responding to the bloc’s latest joint statement that calls for reducing reliance on China for critical minerals and rare earths.

Foreign Ministry spokesman Lin Jian made the remarks at a regular press briefing. China’s position on safeguarding the stability and security of critical minerals and the global industrial and supply chains remains unchanged, Lin said. All parties share the responsibility to play a constructive role in this regard, he added.

He noted that China’s efforts to standardize and improve its export control system are consistent with internationally accepted practices and are intended to better safeguard world peace and regional stability and fulfill non-proliferation obligations.

“We urge the G7 to earnestly abide by market economy principles and international economic and trade rules, and stop using the rules of small exclusive circles to disrupt the international economic and trade order,” Lin said.

Shares of Beximco Pharmaceuticals gained 8 percent over the last two trading sessions on the Dhaka Stock Exchange (DSE), closing at Tk 145.3 yesterday, following reports that the company may be delisted from the London Stock Exchange.

Investors and brokers view potential efforts to prevent the delisting as a positive development, believing they could help resolve the issues that have weighed on the company’s shares since the filing of a petition challenging the appointment of independent directors to its board.

Although the drug maker’s business performance remained strong, its stock came under pressure due to the absence of financial disclosures.

The issue dates back to 2024, when the Bangladesh Securities and Exchange Commission (BSEC) appointed nine independent directors to Beximco Pharmaceuticals following a directive from the finance ministry.

The company subsequently filed a petition with the High Court challenging the decision. Since then, the board has not met to approve or discuss financial results, and the company has not published quarterly earnings reports or annual financial statements.

The lack of financial disclosures led to the suspension of trading in the company’s global depositary receipts (GDRs) on the Alternative Investment Market (AIM) of the London Stock Exchange on January 2.

The suspension was imposed after Beximco Pharmaceuticals failed to publish its audited annual report and accounts for the financial year ended June 30, 2025, by the AIM deadline of December 31, 2025, as well as subsequent financial disclosures.

Under Rule 19 of the AIM Rules for Companies, an AIM-listed issuer must publish its audited annual report and accounts within six months of the end of its financial year.

Under Rule 41, if securities remain suspended from trading for a continuous period of six months, the London Stock Exchange will generally cancel their admission to trading unless the underlying issues are resolved.

The Bangladesh Securities and Exchange Commission (BSEC) has urged the Dhaka Stock Exchange (DSE) to strengthen real-time market surveillance and regulatory controls to prevent market manipulation and protect investors' interests.

The call came during a meeting between BSEC officials and the DSE surveillance team at the commission's office today (21 June), where the two sides discussed measures to modernise the capital market surveillance system and improve market oversight, a BSEC press release says.

The meeting was attended by BSEC Acting Chairman Tanwir Habib Rahman, commissioners Nahid Mahtab and Md Nafiz Al Tariq, as well as senior officials from the commission's surveillance department. DSE Managing Director Nuzhat Anwar and Acting Chief Regulatory Officer Mohammad Shafiqul Islam Bhuiyan represented the stock exchange.

According to the release, discussions focused on the development and modernisation of the capital market, enhancing transparency, and preventing irregularities and manipulation to safeguard investors.

The DSE briefed the commission on recent measures it has taken to curb market manipulation. The stock exchange said it has been temporarily halting trading in shares of companies when unusual price movements or trading patterns are detected.

BSEC assured the exchange of its support in building a transparent, accountable and effective capital market.

The commission also advised the DSE to adopt international best practices in market oversight, including real-time surveillance systems and other necessary regulatory measures to deter manipulation.

Recently, the DSE suspended trading in shares of Shyampur Sugar Mills and Sonargaon Textiles following sharp and unusual price increases. Trading in both stocks resumed the following day after the temporary suspension was lifted.

Creating large banks which can operate across Europe is desirable for sustaining the continent’s financial system, the European Central Bank’s chief economist said Friday.

“Having a banking system that is too localised and, in turn, too intertwined with its domestic sovereign, is not a good recipe,” Philip Lane told a conference organised by French investment bank Natixis in Paris.

“From a macro point of view, it’s very important to have the risk sharing that comes from cross-border banking. That can be in terms of equity ownership, it can be in terms of funding, it can be in terms of common technology,” Lane added.

He was speaking as Italy’s second-largest bank, UniCredit, targets a hostile takeover of German rival Commerzbank, having launched a bid in May which expired Tuesday. The Italians’ longer-term aim is to merge Commerzbank with Germany’s HypoVereinsbank, owned by UniCredit.

The Milan-based bank made a bid valued at 35 billion euros ($40.6 billion) not just to take control of a rival in a fellow EU state but to cement its status as a European heavyweight.

Lane said if banks are unable to achieve mergers, they must seek other ways to reduce costs and risks in a period of rising fixed expenditure, amid the growing need for expensive cybersecurity systems.

Lane said he foresaw a relatively small number of giant banks in Europe and noted the arrival of purely digital banking players to the market, disrupting traditional banking models.

Established players must respond to this process by offering competitive products, embracing technological change along the way, he said.

Chinese Ambassador to Bangladesh Yao Wen has said with the tide at full swell and the wind in their sails, Prime Minister Tarique Rahman's official visit to China (23-26 June) holds "historic significance" and it will surely draw a "more magnificent blueprint" for the development of Bangladesh-China relations.

"Under the strategic guidance of the leaders of both countries, China-Bangladesh relations will forge ahead with more solid political mutual trust, more in-depth practical cooperation, and more robust international collaboration," he said ahead of the visit.

At the invitation of Li Qiang, Premier of the State Council of the People's Republic of China, Prime Minister Tarique Rahman is about to embark on an official visit to China and attend The World Economic Forum's 17th Annual Meeting of the New Champions (2026 Summer Davos Forum).
"On the journey of addressing global challenges, China and Bangladesh will always support each other and move forward hand in hand, making new and greater contributions to the stability and development of both countries, to the prosperity and progress of Asia, and to building a community with a shared future for humanity," said the Chinese ambassador.

During Prime Minister Tarique Rahman's visit to China, the leaders of the two countries will have in-depth exchanges of views on international and regional issues of mutual interest, further coordinate positions and build consensus.

China firmly believes that a "stable, prosperous and confident Bangladesh" will play a more active and constructive role in Global South affairs.

"Let us look forward to the full success of the visit and to the long-standing friendship between China and Bangladesh shining with even greater brilliance in the new era," said Ambassador Yao.

Looking ahead, he said, as China-Bangladesh relations stand at a new starting point that builds on past achievements and opens up new prospects, they are full of confidence and expectations.

On the political front, he said high-level exchanges and party-to-party exchanges between the two countries will become more frequent and in-depth, and political mutual trust will continue to reach new heights.

On the economic front, the ambassador said practical cooperation in areas such as the green economy, investment and business development will continue to expand, bringing more tangible benefits to the two peoples.

On the front of people-to-people exchanges, he said cooperation in education, culture, tourism, youth and other fields will become more vibrant and diverse, allowing the flower of China-Bangladesh friendship to bloom ever more brilliantly in the hearts of the two peoples.

At this important moment when Bangladesh and China are ushering in the next golden 50 years of diplomatic relations, he said in an article that prime minister's first visit to China holds historic significance in building on past achievements and charting the way forward.

This visit will surely inject strong impetus into the development of Bangladesh-China relations in the coming period and promote the upgrading of the Comprehensive Strategic Cooperative Partnership in both quality and substance, he said.

More Solid Political Mutual Trust

China maintains that all countries, regardless of size, strength or wealth, are equal members of the international community and have equal rights to participate in international affairs.

China firmly follows the principle of amity, sincerity, mutual benefit and inclusiveness on neighborhood diplomacy, and remains committed to non-interference in other countries' internal affairs and to providing support without any political strings attached.

"This vision has been fully reflected in China-Bangladesh relations," said the ambassador.

On 4 October 1975, Bangladesh and China officially established diplomatic relations, ushering in a new era of friendly exchanges.

In January 1977, Ziaur Rahman paid his first visit to China in his capacity as Chief Martial Law Administrator and Chief of Army Staff of Bangladesh.

China clearly expressed its support for Bangladesh in safeguarding national independence, laying a solid foundation for the development of bilateral relations.

Begum Khaleda Zia visited China nine times, including five visits as prime minister.

"Frequent high-level exchanges between the two sides have provided strong political guidance for the steady development of bilateral relations," said Ambassador Yao.

Over the past half century, regardless of changes in the international landscape, China and Bangladesh have always respected each other, treated each other as equals, and shown mutual understanding and support on issues concerning each other's core interests and major concerns, he said.

The two countries have become a vivid example of friendly cooperation and mutual benefit between developing countries.

"Prime Minister Tarique Rahman's visit to China at the beginning of his tenure fully demonstrates the high importance Bangladesh attaches to developing relations with China, and reflects the profound foundation of political mutual trust between the two countries," said the envoy.

At present, both Bangladesh and China are at critical stages of their respective national development, and both face difficulties and challenges on the way forward.

The year 2026 marks the beginning of China's 15th Five-Year Plan period.

China is advancing Chinese modernization on all fronts and forging ahead toward the strategic goal of building itself into a great modern socialist country in all respects.

Since its establishment, the new Bangladeshi government has taken a series of measures to maintain unity and stability, improve the economy and people's livelihoods, promote investment and employment, and move toward the goal of building a trillion-dollar economy by 2034.

"These efforts demonstrate its resolve to rise to challenges and press ahead with determination," said Ambassador Yao.

It is precisely because of such shared circumstances and shared aspirations that China and Bangladesh need more than ever to learn from each other and move forward together, he said.

During this visit, the leaders of the two countries will have in-depth exchanges on governance experience and share insights on major issues such as development, economic transformation and reform, further strengthen party-to-party exchanges, and promote more frequent high-level interactions and deeper strategic communication.

"It can be expected that, as exchanges on governance experience continue to deepen, political mutual trust between China and Bangladesh will become even stronger, and bilateral relations will continue to make steady and sustained progress," the ambassador said.

More In-depth Practical Cooperation

Economic and trade cooperation has always been the ballast and propeller of China-Bangladesh relations.

From 2010 to 2025, China remained Bangladesh's largest trading partner for 16 consecutive years.

China has also granted zero-tariff treatment to 100 percent of taxable items for Bangladeshi products exported to China and extended this treatment to 2028.

In the field of investment, China has become Bangladesh's second-largest source of investment.

Nearly 700 Chinese enterprises are registered with Bangladesh's investment authorities, covering a wide range of sectors including energy, transportation, textiles and garments, and information and communications, creating hundreds of thousands of jobs for local communities.

"China has become an indispensable and important development partner in Bangladesh's pursuit of development, economic transformation and modernization," said Ambassador Yao.

Prime Minister Tarique Rahman's visit will inject stronger momentum into Bangladesh-China economic and trade cooperation, he said.

The two sides will have in-depth discussions on expanding bilateral trade and optimizing the trade structure, and promote the entry of more high-quality Bangladeshi products into the Chinese market.

They will further deepen investment cooperation, accelerate project implementation, and attract more Chinese enterprises to invest and do business in Bangladesh.

They will also expand practical cooperation in emerging areas such as scientific and technological innovation, information and communications, green development and artificial intelligence.

"It is reasonable to believe that China-Bangladesh economic and trade cooperation will move toward higher quality and greater depth," said the ambassador.

China-Bangladesh friendship has long taken root in the hearts of the two peoples.

China has always acted with a sense of responsibility as a major country and carried out a series of livelihood projects in Bangladesh that benefit thousands of households.

China-contracted power projects in Bangladesh, including coal-fired, solar and wind power projects, have reached a total installed capacity of over one gigawatt, providing a continuous source of power for Bangladesh's livelihood development and people's daily lives.

China has donated advanced medical equipment to Bangladesh, including physiotherapy and rehabilitation equipment, ventilators and mobile surgical vehicles, contributing China's strength to protecting the health of the Bangladeshi people.

In the face of floods, China promptly extended a helping hand and provided Bangladesh with emergency relief supplies such as rubber boats, life jackets and generators.

"These concrete actions have brought the warmth of China-Bangladesh friendship to countless places in need. It can be expected that this visit will take livelihood cooperation between the two countries to a new level and bring the hearts of the two peoples even closer," said the Chinese envoy.

At the same time, personnel exchanges between the two countries are becoming increasingly frequent, and cultural exchanges and mutual learning are deepening.

Standing at a new starting point, this visit will open broader space for people-to-people exchanges between the two countries.

The two sides will promote cooperation in education, health and skills training, and help Bangladesh cultivate more professional talent suited to the needs of modernization.

They will deepen exchanges in media, film and television, and other areas, so that the two peoples can enhance mutual understanding and deepen friendship through more diverse interactions.

"It can be expected that the hearts of the two peoples will draw ever closer, and the future of China-Bangladesh friendship will be even brighter," he said.

More Robust International Coordination

As the world's largest developing country, the envoy said China has always been a natural member of the Global South and has always shared the same breath and destiny with fellow developing countries.

President Xi Jinping has on many occasions emphasized the importance of strengthening solidarity and cooperation among Global South countries and safeguarding their common interests.

He has called for pooling the strength of Global South countries in the spirit of equality, openness, transparency and inclusiveness, and promoting the reform of the global governance system in a more just and equitable direction.

At present, the world is undergoing accelerated changes unseen in a century.

Unilateralism, hegemonism and bullying practices are growing more rampant, and the cause of global peace and development faces severe challenges.

The more difficult the situation becomes, the more countries that uphold justice should stand together to jointly safeguard the legitimate rights and interests of developing countries and maintain world peace and stability.

Bangladesh is the second-largest economy in South Asia and has an important voice on global issues such as climate change, sustainable development and poverty reduction.

Recently, Bangladesh has won the presidency of the 81st session of the United Nations General Assembly.

"China has always deemed Bangladesh as an important partner in the Global South, and stands ready to work closely with Bangladesh in multilateral institutions such as the United Nations and the World Trade Organization to promote reform of the global governance system and jointly safeguard the collective interests of developing countries," said Ambassador Yao.

The capital bourse kicked off the week on a negative note today (21 June) as widespread profit-taking snapped a two-session winning streak, dragging the benchmark index down.

The DSEX, the prime index of the Dhaka Stock Exchange (DSE), shed 21 points to settle at 5,639. Meanwhile, the blue-chip DS30 index managed to buck the trend slightly, gaining 2 points to reach 2,145.

Market breadth heavily favoured the bears, with only 71 issues advancing, 298 declining, and 27 remaining unchanged.

A cautious investor stance also dampened trading participation, causing daily turnover to plunge 16% to Tk1,002 crore compared to the previous session.

According to the daily market review by EBL Securities, the benchmark index retreated in the first session of the week as profit-taking in recently appreciated stocks heavily outweighed selective buying in perceived fundamentally attractive scrips.

The brokerage firm added that the market came under sustained selling pressure from the opening bell, as widespread profit-taking gained momentum throughout the session, weighing on the majority of listed scrips and pushing the market into negative territory.

Mirroring this view, Sheltech Brokerage Limited noted that market sentiment was largely influenced by investors' profit-taking following the recent advance.

The brokerage highlighted that despite a strong start to the session, supported by buying pressure in selective large-cap stocks, the market failed to sustain its early gains as profit-taking pressure intensified from mid-session onward.

On the sectoral front, pharmaceuticals accounted for the highest share of turnover at 13.5%, followed closely by engineering at 12.5% and textiles at 11.8%.

Most of the sectors displayed negative returns, out of which services fell by 3.9%, miscellaneous dropped by 3.4%, and general insurance corrected by 2.1%, exerting the most downward pressure.

On the flip side, telecommunication, pharmaceuticals, and food sectors bucked the trend to exhibit the highest returns on the bourse today, gaining 1.5%, 0.5%, and 0.3% respectively.

The primary index draggers pulling down the market included Olympic Industries, United Commercial Bank, Asiatic Laboratories, National Bank, and Summit Alliance Port.

Despite the correction, Beximco Pharmaceuticals, Summit Alliance Port, IPDC Finance, and Robi emerged as the top traded stocks of the day.

In terms of individual performance, Prime Finance First Mutual Fund led the gainers with a 7.61% jump, followed by Simtex Industries at 5.70% and KDS Accessories at 4.64%.

On the losing side, Meghna Pet and Beximco Limited hit the bottom by plummeting 9.87% each, followed by Regent Textile which lost 9.67%.

The port city bourse, the Chittagong Stock Exchange (CSE), also mirrored the capital city's bearish tone.
The CSCX index ended 61 points lower at 9,327, while the CASPI broad index plummeted 104 points to close at 15,249. Trading activity on the CSE witnessed a massive contraction as its daily turnover dropped by 64% to stand at a meager Tk30 crore.

Bangladesh has proposed allowing individual taxpayers to submit income tax returns throughout the year, with a 5 percent rebate for those filing in the first quarter, under changes outlined in the 2026–27 budget proposal.

The proposal comes as repeated extensions of return filing deadlines have still failed to bring in the expected number of taxpayers, prompting revisions through the Finance Bill 2026.Bangladesh economic report

Under the proposed amendment to the Income Tax Act, taxpayers will be able to file returns across the entire fiscal year after the end of an income year.

However, tax payment and incentive calculations will depend on the quarter in which the return is submitted.

According to the Finance Bill 2026, individual taxpayers filing returns between Jul 1 and Sept 30 -- the first quarter -- will be eligible for a 5 percent rebate for early submission, capped at Tk 25,000.

However, the Bill does not provide detailed mechanisms for how the rebate will be applied, raising concerns among tax analysts.

Experts say it would be preferable to adjust incentives at the point of tax payment.

They caution that if rebates are issued through refunds after full tax payment, taxpayers may fear delays or non-receipt.

They also note that if adjustments are tied to audit processes, many may not perceive it as a meaningful incentive.

There are already complaints that excess advance tax or withholding tax is often not refunded promptly, with allegations of administrative delays and informal payments in some cases.

Taxpayers filing in the second quarter, from Oct 1 to Dec 31, will not receive any rebate but will also not face penalties.

Those filing in the third quarter, from Jan 1 to Mar 31, will be subject to a late filing penalty of 2 percent of tax or a maximum of Tk 3,000.

Returns filed in the final quarter, from Apr 1 to Jun 30, will attract a penalty of 5 percent of tax or a maximum of Tk 5,000.

Under the current system, taxpayers generally submit returns by Nov 30 without additional tax, and there is no incentive for early filing.

The government may extend deadlines by one month at a time under special consideration, a practice commonly seen each fiscal year.

Previously, extensions ran until December or January, but in recent years deadlines have been pushed to February and March.

In the current fiscal year, multiple extensions and the introduction of mandatory online filing allowed taxpayers to get up to 90 additional days, with many effectively filing throughout the year without penalty.

The Bangladesh Securities and Exchange Commission (BSEC) has instructed the Dhaka Stock Exchange (DSE) to strengthen its surveillance system through effective real-time monitoring and control measures aimed at curbing market irregularities and protecting investors.

The instruction was given at a meeting held between the regulator and the DSE surveillance team at the BSEC headquarters in Agargaon yesterday.

BSEC Acting Chairman Tanwir Habib Rahman, along with Commissioners Nahid Mahtab and Md Nafeez Al Tarik, and other senior officials attended the meeting. The DSE was represented by its Managing Director Nuzhat Anwar and Acting Chief Regulatory Officer Mohammad Shafiqul Islam Bhuiyan, among others.

According to a BSEC press release, the meeting focused on the development and modernisation of the capital market, with particular emphasis on maintaining market integrity and protecting investors’ interests.

The regulator also stressed the need to prevent all forms of market manipulation and misconduct, while discussing surveillance and oversight issues at the stock exchange. BSEC officials said a transparent, accountable and efficient capital market is essential for sustainable market development. In line with international best practices, the commission directed the DSE to enhance its real-time surveillance capacity and adopt necessary monitoring tools.

The meeting also covered plans to upgrade and modernise the surveillance system to improve investor protection and overall market supervision.

The move reflects the regulator’s efforts to restore investor confidence and ensure a fair and orderly market through stronger oversight and improved technology.

The government is set to split the National Board of Revenue into separate policy and implementation wings as part of broader efforts to address Bangladesh's persistently low tax-to-GDP ratio and strengthen revenue administration, Finance Minister Amir Khosru Mahmud Chowdhury said today (21 June).

Speaking at a budget dialogue organised by the Centre for Policy Dialogue at a hotel in Dhaka, Khosru said the planned restructuring would separate tax policy formulation from tax administration, with experts rather than bureaucrats taking the lead in designing tax policies.

He argued that weaknesses in tax policy formulation were at the core of the country's revenue challenges.
"Bangladesh's major taxation problem and NBR's problem is policy-making. If you get that right to start with, then 50% of the problem is solved," he said.According to the minister, the policy wing will comprise tax specialists and individuals with a strong understanding of Bangladesh's socio-economic realities, while career bureaucrats will focus on implementation and enforcement.

"We want an expert group to make the policy, not the bureaucrats. The expert group will make the policy. Bureaucrats' job is to execute it," he said.

The interim government on 13 May 2025 proceeded with the reforms, officially dissolving the NBR and establishing two separate entities -- the Revenue Policy Division and the Revenue Management Division.

The move later got stalled amid protest by revenue officials who viewed the move as undermining their roles and the integrity of the tax administration system.

Centre for Policy Dialogue (CPD) on Sunday said the national budget for FY2026-27 reflects a clear philosophy of economic recovery through human development, but its ambitious macroeconomic targets rest on shaky ground and the fiscal framework is unlikely to hold as proposed.

CPD Executive Director Dr Fahmida Khatun presented the think tank's Independent Review of Bangladesh's Development (IRBD) analysis at its Budget Dialogue 2026 held at a hotel in Gulshan, UNB reports.

The think tank put forward eight key observations on the FY27 budget, which Finance Minister Amir Khosru Mahmud Chowdhury presented to parliament on June 11.

CPD noted that the government's GDP growth target of 6.5 per cent represents a recovery from an estimated 5.0 per cent in the revised FY26 budget, but provisional data from the Bangladesh Bureau of Statistics (BBS) puts actual FY26 growth at only 4.14 per cent.

On revenue mobilisation, CPD said the government targets an 18.2 per cent increase in revenue collection to Tk 6.95 trillion (Tk 695,000 crore). However, its own projection based on data through March 2026 suggests actual FY26 collection may be around Tk 4.5 trillion (Tk 450,000 crore), implying that the required growth would be closer to 54.4 per cent.

The think tank welcomed the budget's reprioritisation of public expenditure toward human capital sectors, noting that allocations for health and education increased by 124 per cent and 42.7 per cent, respectively, compared with the revised FY26 budget.Bangladesh stock market

However, it cautioned that both sectors suffer from persistently weak budget utilisation, with health-sector development spending utilisation falling from 80 per cent in FY15 to just 30 per cent in FY25.

On the Annual Development Programme (ADP), CPD said the Tk 3 trillion (Tk 300,000 crore) allocation, a 50 per cent increase over the revised FY26 figure, reflects an ambitious fiscal stance. However, only 35.4 per cent of last year's ADP was spent in the first 10 months, signalling low absorptive capacity.

It also noted that none of the eight mega projects scheduled for completion in FY27, including the Rooppur Nuclear Power Plant, is expected to be finished on time.

CPD raised equity concerns over the personal income tax structure, pointing out that lower-income groups face a proportionately higher increase in tax burden than those earning more than Tk 3 million annually.

On social protection, the Social Safety Net Programme (SSNP) allocation rose 13.9 per cent to Tk 1.44 trillion (Tk 144,000 crore) in FY27. However, CPD observed that pension management and agricultural subsidies together account for 43.2 per cent of the total SSNP allocation, although these programmes are not strictly targeted at the poor.

Regarding the government's pledge to create 10 million new jobs within 18 months, CPD found that budget allocations for four key employment-related ministries either declined or remained stagnant as a share of total expenditure.

The Ministry of Commerce recorded the sharpest cut, with its allocation reduced from Tk 9.09 billion (Tk 909 crore) to Tk 3.29 billion (Tk 329 crore).

CPD also highlighted the absence of a medium-term roadmap to address preference erosion ahead of Bangladesh's graduation from the least developed country (LDC) category, despite the government's formal request for a three-year deferral in February 2026.

“This budget is the first major opportunity for the new government to demonstrate its ability to drive economic recovery through sustained structural reforms,” Fahmida Khatun said, adding that its success would ultimately depend on the quality of implementation and the strength of institutional capacity.

Finance Minister Amir Khosru Mahmud Chowdhury on Sunday said the government will overhaul its public finance architecture to fund the proposed budget for fiscal year 2026-27 while minimising the debt burden on the economy.

“We cannot keep looking towards the World Bank, International Monetary Fund (IMF) and Asian Development Bank (ADB). We need to restructure our own public financing,” he said while speaking at the “CPD Budget Dialogue 2026” organised by the Centre for Policy Dialogue (CPD) at a city hotel.

The minister said the government is working to develop alternative financing channels and will introduce market-based financing mechanisms to fund the budget.

He noted that the gap between multilateral financing rates and market interest rates is narrowing, making borrowing costs considerably higher and leaving little option but to rely on market-based instruments.

Announcing a phased withdrawal from local bank borrowing, Khosru said local banks are charging 12-14 per cent interest, a burden that even the private sector struggles to bear. “It is simply not feasible for the government to sustain such borrowing costs.”

On broader economic challenges, he said the Middle East labour market, worth $4 billion, is facing headwinds and that the government inherited hundreds of crores of taka in outstanding bills across all sectors upon taking office.

The minister also noted that the government had only one and a half months to prepare a budget that normally takes six months.

He said the government inherited 1,300 projects from the previous administration, many of which were conceived to serve personal interests, and that a number of schemes have since been cancelled or repurposed. Projects that were 80 per cent complete were being finished despite uncertain returns.

To ensure accountability, Khosru announced that an ADP dashboard will go live in the first week of July, allowing real-time tracking of project progress and implementation status.

On trade facilitation, he said Bangladesh will gradually move away from the letter of credit (LC) system towards direct payment mechanisms for import and export transactions, in line with global practice, allowing credible businesses to trade internationally without opening LCs.

On education, the minister said the allocation will be raised to 5 per cent of the ADP by the end of the government's current term, up from the current 2 per cent.

He stressed that vocational training will receive the strongest emphasis this year, citing China's model, where 60 per cent of students pursue vocational education after secondary school. “Bangladesh's certificates hold little value in the job market because skills are absent. Vocational training is how we bridge that gap.”

On health, Khosru said the government is working towards establishing universal healthcare, with preventive healthcare as the first priority.

Addressing questions over the Family Card programme, he said 72,000 people have already received cards under a pilot project, which he described as the largest social protection initiative in Bangladesh's history.

The minister said the selection process has been deliberately kept free of political interference, with a new formula developed to ensure fairness at both the local and central levels.

He acknowledged a roughly 1-1.5 per cent error rate and said the government is actively working to identify and resolve the causes.

Khosru reaffirmed the government's commitment to carrying out all necessary economic reforms during its tenure.