The country's financial account recorded a surplus of more than $3.81 billion in the first nine months of the current fiscal year (FY26), a sharp increase from the $570 million recorded during the same period in the previous fiscal year.

Central bank data indicate that the repatriation of overdue export proceeds primarily drove this growth. The trade credit position, a key component of the financial account, shifted from a deficit of $1.61 billion in FY25 to a surplus of $3.23 billion during the July-March period of FY26. This reversal reflects an increase in the repatriation of previously stalled payments, providing a significant boost to the country's capital flows.

Trade deficit widens

Despite the strong financial account performance, the trade deficit widened by 24.16% to reach $19.17 billion at the end of March. This increase, amounting to approximately $4 billion over the previous year, was driven by a 4.60% rise in imports alongside a 4.40% decline in exports.

Import payments rose to $51.55 billion from $49.31 billion, while export earnings fell to $32.38 billion from $33.87 billion in the corresponding period of the prior year.

A notable factor in the rising import bill was the surge in petroleum imports, which grew by 81.10% to reach $936 million.

Zahid Hussain, former lead economist at the World Bank's Dhaka office, told TBS that while the trade credit position has significantly improved the financial account, there is no guarantee that this trend in trade credit will remain unchanged in the long term.

Current account deficit narrows

The current account deficit saw a marked improvement, narrowing to $397 million from $878 million in the previous fiscal year. This recovery was largely supported by a robust 20.30% growth in remittances, with the country receiving $26.20 billion in the first nine months compared to $21.78 billion in the prior year. In April alone, the country witnessed more than $3 billion in remittances, which experts believe has provided essential support to the balance of payments.

Zahid observed that although the current account balance remains negative, the situation is not yet concerning. He highlighted that the improvement in the current account is particularly significant given the increase in the trade deficit, largely credited to the influx of the greenback through secondary income and transfers.

Overall balance of payments returns to surplus

The overall balance of payments (BOP) moved into a surplus of $3.66 billion during the July–March period, a substantial recovery from the $1.10 billion deficit recorded in the same period of FY25.

This surplus suggests that the country is currently receiving more foreign exchange than it is paying out, which helps strengthen the external sector.

Zahid said, "The worst phase of the global economy has not yet had an impact on the balance of payments up to March."

The country’s trade deficit widened by 24 percent in the July-March period of the current fiscal year, due mainly to stronger import growth and weaker export earnings.

The gap between imports and exports stood at $19.17 billion in the first nine months of FY 2025-26, up from $15.44 billion in the same period a year earlier.

In the July-March period, import payments rose 4.6 percent year-on-year to $51.55 billion, according to Bangladesh Bank (BB) data.

Within this, petroleum imports increased sharply by 54 percent to $6.29 billion. Crude petroleum alone jumped 81 percent to $933 million, according to the central bank.

Economists linked the rise to volatile global fuel prices in March amid the US-Israel war on Iran and wider conflict across the Middle East.

During mid-March, crude oil prices climbed to about $102-$109 per barrel, compared with below $100 in the previous month, pushing up the import bill.

Export earnings fell 4.4 percent to $32.38 billion over the same period.

Despite the wider trade gap, the country’s current account deficit narrowed. This indicator tracks net flows of goods, services and income between a country and the rest of the world.

The deficit stood at $397 million in July-March of FY26, compared with $878 million a year earlier.

Industry insiders said higher remittance inflows helped ease pressure on the current account. Expatriates sent more than $3 billion a month for five consecutive months up to April, according to BB data.

The financial account also strengthened during the period. It rose to a surplus of $3.81 billion from $570 million a year earlier, reflecting increased inflows from loans, credit and other cross-border financial transactions.

Analysts said the surplus was largely driven by borrowing and trade credit rather than stable investment. Foreign direct investment remained moderate, while portfolio investment stayed negative, reflecting weak investor confidence.

During the period, net foreign direct investment stood at $1 billion, down from $1.31 billion in the same months of the previous fiscal year.

Net trade credit rose to $3.23 billion during the nine months, compared with a negative $1.61 billion a year earlier.

According to industry insiders, the growing reliance on debt-based inflows could increase repayment risks in the future.

These developments together pushed Bangladesh’s overall balance of payments (BoP) into a surplus of $3.65 billion, compared with a deficit of $1.10 billion in the same period last year.

An alliance representing more than 12,000 depositors of six distressed non-bank financial institutions (NBFIs) has urged the Bangladesh Bank (BB) to take immediate steps to facilitate the return of their long-frozen funds.

The six NBFIs -- FAS Finance, Premier Leasing, Fareast Finance, Aviva Finance, People’s Leasing, and International Leasing -- are now under liquidation.

Over the years, several NBFIs collapsed amid widespread mismanagement, weak governance, and heavy exposure to non-performing loans. Poor regulatory oversight and delayed action by the central bank deepened the crisis and ultimately led to liquidation.

Yesterday, in a memorandum submitted to the BB governor in Dhaka, the platform titled “Alliance of Depositors of 6 NBFIs for Recovery” said depositors have been facing acute financial hardship, mental distress, and a humanitarian crisis, as their savings have remained locked up for nearly seven years.

“Many depositors are unable to access treatment for critical illnesses such as cancer, kidney disease, and heart conditions due to a lack of funds,” the memorandum said, adding that several depositors have already died without receiving necessary medical care.

As the regulator of banks and NBFIs, the central bank bears the highest responsibility to safeguard public deposits, the alliance said, calling for urgent intervention to resolve the crisis.

The alliance outlined three key demands, including an immediate announcement of a clear, realistic, and actionable roadmap in line with the previously declared July 2026 deadline for refunding depositors’ money.

The other two demands are the introduction of an effective mechanism to prioritise repayments for individual depositors and the arrangement of a meeting between the governor and three to four representatives of the depositors to formally present their demands.

The depositors expressed hope that the central bank would take swift, effective, and humane measures to address the crisis and ensure the protection of public savings.

They also called upon the government, the central bank, and all relevant authorities to take urgent and effective steps to restore confidence in the financial sector and ensure justice for affected depositors.

In January this year, BB decided to liquidate six of the country’s 35 non-bank financial institutions due to poor financial health.

The current BB governor, Md Mostaqur Rahman, appointed by the BNP-led government, has said reforms will continue, including those liquidations.

Bangladesh today (6 May) called for increased Chinese investment in priority infrastructure projects, including the long-discussed Teesta River initiative, while reaffirming its firm support for the One-China policy during high-level talks in Beijing.

The issues were discussed during a meeting between Foreign Minister Khalilur Rahman and his Chinese counterpart Wang Yi, held as part of Rahman's first official visit to China from 5 to 7 May.

According to a joint press release, Bangladesh sought China's "involvement and support" in the Teesta River Comprehensive Management and Restoration Project (TRCMRP), aimed at improving water management, preventing floods and boosting agricultural productivity in northern regions.

The move reflects Dhaka's broader effort to attract foreign investment for critical infrastructure. China expressed willingness to deepen practical cooperation and encouraged its enterprises to invest in Bangladesh, particularly in infrastructure, water resources, digital economy and green development.

During the talks, Bangladesh reiterated its commitment to the One-China principle, affirming that Taiwan is an inalienable part of China's territory and expressing opposition to any form of "Taiwan independence."

Wang Yi described Bangladesh as a "reliable partner" and said Beijing is ready to align its Belt and Road cooperation with Bangladesh's development priorities, adding that China's engagement in South Asia is not directed at any third party.

Bangladesh welcomed Chinese enterprises and pledged to ensure a "stable, sound and predictable" business environment to facilitate investment. It also appreciated China's continued support for its development.

The two sides also exchanged views on regional and global issues, including the Middle East situation and the Rohingya crisis. China reiterated support for continued dialogue between Bangladesh and Myanmar to facilitate the repatriation of displaced people.

Both countries reaffirmed their commitment to multilateralism, the principles of the United Nations Charter, and peaceful dispute resolution, while pledging to further strengthen their comprehensive strategic cooperative partnership.

Earlier today, Rahman also met Wang Huning, chairman of the Chinese People's Political Consultative Conference, where both sides emphasised expanding cooperation in trade, investment, connectivity and development.

Foreign affairs adviser Humayun Kabir and Bangladesh Ambassador to China Md Nazmul Islam were present at the meeting.

Rahman arrived in Beijing on Tuesday on a three-day official visit aimed at strengthening bilateral ties and enhancing high-level engagement.

Inflation surged to 9.04% in April, driven by rising costs of both food and non-food items amid oil shocks stemming from the US-Israeli war on Iran.

The rate was 8.71% in March, according to the latest data released by the Bangladesh Bureau of Statistics (BBS) today (6 May). In April last year, inflation was 9.17%.

Non-food inflation increased significantly to 9.57% and food inflation reached 8.39% in April, with food prices hitting urban consumers harder than those in villages. Rural households spent more on non-food items compared to those in urban areas.

Overall, inflationary pressures were more intense in rural areas than in towns.

Zahid Hussain, former lead economist at the World Bank Dhaka Office, said the impact of the war in the Middle East has already started affecting inflation in Bangladesh.

According to him, inflation increased in both food and non-food sectors, but the rise in non-food inflation was the sharpest, driven mainly by fuel and transport costs.

He explained that higher transport costs were reflected in the market very quickly, even before any official increase in fuel prices. As a result, inflationary pressure in the transport sector appeared earlier.

On the other hand, since government-administered fuel prices are used in official statistics, the actual impact has not yet been fully reflected in the Consumer Price Index (CPI).

"Part of the real inflation has still not appeared in official statistics because of delayed price adjustments, which may be described as 'repressed inflation'," Zahid Hussain said.

That means consumers are already paying higher prices than what is fully reflected in the official data.

"April's nearly 9% inflation rate does not fully capture the real picture, as the delayed price adjustments are likely to be reflected more clearly in the coming months, especially in May data," he added.

Zahid Hussain observed similar trends in both urban and rural areas, where higher transport costs were the main source of inflation, followed by the impact of fuel prices.

He said the main cause of the rising trend in inflation was soaring global commodity prices.

Not only fuel, but the prices of almost all imported goods have increased due to higher shipping costs, rising insurance premiums and global supply disruptions.

As a result, higher production and supply chain costs have accelerated inflation further.

Wage growth trails behind inflation

According to BBS data, the national wage growth rate increased to 8.16% in April from 8.09% in March.

Although wages increased, they remained below the inflation rate for the 50th consecutive month.

Mustafa K Mujeri, executive director of the Institute for Inclusive Finance and Development, said the Middle East-centred conflict is affecting inflation in Bangladesh.

"At the same time, the country's production sector has not yet fully regained momentum."

Instead, he explained, higher production costs, transport expenses and import costs have put pressure on the supply system, with increased fuel prices intensifying the pressure.

Mujeri warned high inflation might continue in the coming months as the current economic trend was not favourable for reducing inflation.

According to him, global markets remain unstable, making a quick fall in inflation unlikely.

Natural disasters, especially possible floods, could also disrupt agricultural production and create supply shortages, he added.

The pressure is more intense on low-income people, as wage growth remains below inflation, reducing their real income and purchasing power.

In this context, Mujeri stressed the need to strengthen social safety net programmes, increase food and cash assistance, create jobs, raise investment and reopen closed factories.

He also called for ensuring food security for poor people in the budget.

Bangladesh’s top garment exporters association has offered to help the United States define the rules governing a zero-tariff benefit tied to the use of US cotton and man-made fibre (MMF).

The offer was made as US officials are yet to clarify how the facilities -- stated in the bilateral trade deal signed in February amid reciprocal tariff pressure -- will work in practice.

Members of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) made the proposal at a meeting in Dhaka yesterday with a delegation from the United States Trade Representative’s (USTR) office, led by Assistant USTR for South and Central Asia Brendan Lynch.

The delegation arrived on May 5 and is holding meetings through May 7.

Under Article 5.3 of the Agreement on Reciprocal Trade (ART), the US committed to a mechanism allowing certain Bangladeshi textile and apparel goods to enter the American market at a zero reciprocal tariff rate, provided they are made from imported US cotton or MMF.

“We sought clarity on the whole issue of using American cotton and its benefits from the USTR officials at the meeting,” said Faisal Samad, a BGMEA director who attended the meeting.

According to industry insiders, two interpretations are currently circulating among exporters.

One holds that the zero tariff would apply only to the portion of a garment’s value attributable to US-sourced inputs. Since fabric and fibre typically account for 70 to 80 percent of a finished garment’s cost, that would mean the remaining tariff -- either the 10 percent universal rate or the 19 percent reciprocal rate set for Bangladesh -- would apply only to the rest.

The other reading is that duty-free access would cover the entire garment if US cotton or MMF were used in production.

Exporters also raised questions about traceability -- how authorities would verify that a garment was made using US inputs -- and about whether tariff treatment would differ depending on whether raw cotton or processed fibre and fabric were sourced from the US.

The USTR delegation said they are working on the modalities and will share updates, Samad said. BGMEA offered to cooperate in developing those rules.

Around 40 percent of Bangladeshi garment exporters currently use US upland cotton, primarily for high value-added products.

After a separate meeting with the USTR team yesterday, Rashed Al Mahmud Titumir, the prime minister’s finance and planning adviser, said Bangladesh’s priority is expanding its market concentration in the US and developing new export categories beyond garments.

He noted Bangladesh wants further consultation meetings with the US on the agreement.

Stating that currently, Bangladeshi garment items are dominating in the US market, he said, “Commercial, health and education and humanity issues may also be discussed with the US when the bilateral discussions take place between the two countries.”

Bangladesh also wants expansion of strategic assistance from the US in agricultural cooperation and science research, he added.

Earlier on Tuesday, speaking after a meeting with the USTR team, Commerce Minister Khandaker Abdul Muktadir said the government intends to make full use of the agreement.

“It is a reality, and we want to make the best use of it to expand the country’s trade and investment,” he said.

US goods trade with Bangladesh totalled an estimated $11.8 billion in 2025.

American imports from Bangladesh reached $9.5 billion -- up 13.3 percent from 2024 -- while US exports to Bangladesh were $2.3 billion.

The resulting trade deficit stood at $7.1 billion, a 17.9 percent increase from the previous year. Garments account for 86 percent of Bangladesh’s exports to the US.

Bangladesh's trade balance deteriorated significantly during the July-March period of the current fiscal year, driven by a decline in merchandise exports, according to central bank data.
FE

The Bangladesh Bank, which compiles the balance-of-payments (BoP) data, reported that the trade deficit stood at US$19.2 billion during the period under review.

Export earnings fell by 4.4 per cent year-on-year to $32.3 billion, while import payments rose by 4.6 per cent to $51.6 billion, the data showed.

Imports of fuel and fertiliser increased sharply.

Petroleum imports surged by 54.1 per cent and fertiliser imports by 40 per cent, partly reflecting price pressures linked to tensions and attacks involving Iran, the US and Israel in the Middle East, although a ceasefire is now in place.

Meanwhile, the current account deficit (CAD) narrowed on the back of strong remittance inflows during the period. The deficit stood at $397 million during July-March, compared with a deficit of $878 million in the same period a year earlier.

Remittances grew by 20.3 per cent to $26.2 billion, providing support to the external balance.

The financial account, another component of the BoP, recorded a surplus of $3.8 billion during the period, largely due to trade credit inflows.

Trade credit posted a surplus of $3.2 billion, compared with a deficit of $1.6 billion a year earlier.

Economists said the improvement in the current account position was mainly driven by robust remittance growth, while the financial account surplus reflected increased reliance on trade credit.

Dr Zahid Hussain, an independent economist, told The Financial Express that import payments rose partly due to trade credit arrangements, contributing to positive financial inflows.

According to him, some export proceeds were repatriated during the period, further supporting the balance of payments.

"Overall, the balance of payments situation remains favourable for the country at this moment," he said.

The overall balance of payments recorded a surplus of $3.7 billion during the period under review, compared with a deficit of $1.1 billion a year earlier.

People pay through their nose as the persistent Gulf turmoil impacts Bangladesh's consumer-price indices with overall inflation having hit a near-double-digit high at 9.04 per cent in latest official count.
FE

Official data released Wednesday for the past month shows the most significant pressure comes from transport sub-sector, where inflation jumped to 9.31 per cent in April in a sharp rise from the 7.47-percent rate recorded in March.

This 1.84-percentage-point surge in the major livelihood parameter is largely fuelled by higher costs for imported fuels amid the Mideast mayhem, as evident from the Bangladesh Bureau of Statistics (BBS) statistics.

The government last month increased prices of all types of fuel oils and gas for the domestic market, which heated up the inflation, analysts say.

Meanwhile, the overall inflation rate in April increased by 0.33-percentage points to 9.04 per cent from 8.71 per cent in March this year, the official data show.

In the same period last year (April 2025), the inflation rate was reported 9.17 per cent, before a little downturn.

Since the consumer price index (CPI) in transportation sub-sector has risen significantly, the rate of inflation in the non-food sector climbed to 9.57 per cent in April from 9.09 per cent in March.

On the other hand, the inflation on food account also increased slightly to 8.39 per cent last month from 8.24 per cent in the previous month of March, according to the BBS data.

Inflation rates both in rural and urban areas marked rise in the past month of April.

In villages, the rate increased by 0.33-percentage points to 9.05 per cent in April from 8.72 per cent in March.

In the urban areas also the rate increased by 0.34-percentage points to 9.02 per cent last month from 8.68 per cent recorded in March.

Despite the monthly point-to-point increase, the 12-month moving average inflation showed a slight downtrend, settling at 8.59 per cent for the period of May 2025 to April 2026, compared to 10.21 per cent for the same period a year earlier.

This suggests that while recent shocks are pushing prices up, the long-term average has been cooling compared to the previous year.

The latest data from the BBS reveal a widening gap between the cost of living and worker earnings.

The national inflation of 9.04 per cent in April outweighs Wage Rate Index (WRI) growth at 8.16 per cent. This suggests that, on average, the purchasing power of low-paid skilled and unskilled labourers is being eroded as price increases (especially in transport and non-food items) are outstripping wage hikes.

Meanwhile, the WRI marked a rise to 8.16 per cent in the past month from 8.09 per cent in March, the data show.

The BBS breakdown shows wage growth varies significantly across different sectors of the economy. The highest wage growth was recorded at 8.31 per cent in the services sector among the three broad heads.

Despite being the strongest performer (services), it still falls nearly 1.0-percentage-point short of the 9.31 per cent inflation seen in the transport sector that many service workers rely on.

The wages grew by 8.19 per cent in agriculture sector in April, up slightly from 8.11 per cent in March.

In the industrial sector, the slowest growth was recorded at 8.09 per cent in April, making industrial workers among the most vulnerable to the recent spike in non-food inflation (9.57 per cent).

Wage growth also shows geographical disparities, with Dhaka Division reporting an increase of 8.64 per cent while Barishal lagging behind at 8.04 per cent.

The liquidation of six troubled non-bank financial institutions, a decision taken by the interim government on the central bank's recommendation, will not proceed this fiscal year as the current government has been unable to allocate the Tk5,600 crore set aside to reimburse depositors, officials said.

The delay has driven those depositors onto the streets. Today (6 May), more than a hundred of them gathered in silent protest outside the Bangladesh Bank headquarters, their faces covered with black cloth.

Their demand was straightforward: an immediate, realistic, and actionable roadmap for returning their money, in line with the July 2026 deadline cited by former governor Ahsan H Mansur.

"A clear timeline was given. We are holding them to it," one protester said.

Responding to queries, central bank spokesperson Arief Hossain Khan said the liquidation decision had been made during the interim administration, when assurances were given that necessary funds would be provided to reimburse depositors. "Based on that assurance, the former governor announced the liquidation."

According to him, the current government is prioritising spending on its political programmes, including social support initiatives like Family Card, Farmer's Card, etc, leaving insufficient fiscal space to finance the liquidation process at present.

"If the government is given some time and funding is secured, the liquidation process will begin, and depositors will then receive their money," he said.

The spokesperson noted that the financial condition of the six to seven institutions was so weak that revival was no longer feasible, prompting the decision to proceed directly with liquidation rather than merger.

The central bank board had approved the liquidation of six institutions on 27 January. The entities are FAS Finance, Premier Leasing, Fareast Finance, Aviva Finance, People's Leasing and International Leasing, all of which have non-performing loan ratios ranging from 75% to 99%.

A senior official from the central bank's Bank Resolution Department said preparations for liquidation are complete, but implementation hinges entirely on government funding.

He added that discussions have been held with the governor, who indicated that while all six institutions may not be liquidated simultaneously, the process will move forward gradually. However, no assurance has been given that it will be completed within the current fiscal year.

An official from the Department of Financial Institutions and Markets, speaking on condition of anonymity, said the government should clearly communicate its decision, as depositors continue to seek answers without receiving any definitive timeline.

He described cases of severe hardship, including one depositor who had sought assistance while undergoing medical treatment but later died due to a lack of funds.

Depositors demand urgent action

An alliance representing more than 12,000 depositors of the six institutions has formally urged the central bank to take immediate steps to facilitate the return of their long-stuck funds.

In a memorandum submitted to the governor, the platform said depositors have been facing acute financial hardship, mental distress and a humanitarian crisis as their savings have remained locked for nearly seven years.

"Many depositors are being deprived of treatment for critical illnesses such as cancer, kidney disease and heart conditions due to a lack of funds," the memorandum said, adding that several have died without receiving necessary medical care.

The alliance called on the central bank, as the regulator, to take urgent action and ensure a clear roadmap for repayment within the previously announced timeframe.

Protesters said many had invested retirement benefits and proceeds from the sale of land in these institutions to support household expenses, but have been unable to access their savings for years.

"After waiting for seven years, we still have not received our money. Our patience has run out, which is why we have taken to the streets," one depositor said.

Sector under strain

The broader non-bank financial sector remains under significant stress, with the central bank identifying 20 out of 35 institutions as distressed.

These troubled institutions collectively hold loans worth Tk25,808 crore, of which Tk21,462 crore are classified as non-performing, representing 83.16%. Against this, the value of collateral stands at Tk6,899 crore.

In contrast, the remaining 15 relatively stable institutions reported a non-performing loan ratio of 7.31%, generating profits of Tk1,465 crore last year and maintaining a capital surplus of Tk6,189 crore.

Deposits in the 20 distressed institutions amount to Tk22,127 crore, including approximately Tk4,971 crore in individual deposits. Central bank officials believe that this amount may be required initially to support liquidation and restructuring efforts.

The regulator has also assured that employees of the affected institutions will receive all benefits in accordance with service rules following liquidation.

Bangladesh needs to move up the global value chain (GVC), with fresh policy measures aiming to support this by promoting diversification and higher value-added activities, according to a new Asian Development Bank (ADB) study.

The study on GVCs, growth, and inequality was released yesterday.

From a trade and GVC perspective, Bangladesh has become heavily dependent on readymade garment (RMG) exports, with apparel making up over 80 percent of total exports, while the share of textiles has declined.

The country’s participation in the textiles and textile products GVC is also concentrated in low-value downstream work, mainly assembling and finishing imported materials.

According to ADB data, compared with other major textile exporters in developing Asia and the Pacific, Bangladesh has a relatively low ratio of forward to backward GVC linkages.

This shows a strong dependence on imported fabrics, yarns, dyes and other inputs, with limited involvement in higher-value stages of production.

Strong specialisation in textiles and textile products has helped Bangladesh absorb labour and boost exports, but it has also limited structural upgrading. As a result, the country has joined GVCs but has not moved up within them.

This is reflected in weak forward linkages and limited knowledge transfer from global lead firms, which restrict improvements in processes, products and functions.

GVC participation rates are also below the global average, showing less integration across different stages of production compared with peer exporters.

In addition, the industrial base outside textiles and textile products remains narrow, limiting value-added diversification and the development of local suppliers.

The report also said Bangladesh faces challenges in its GVC participation. Although exports and production in the RMG sector continue to grow, this expansion is not translating into stronger employment growth.

Wages have also started to rise since Bangladesh was reclassified as a lower-middle-income country in 2015. This has raised concerns about a possible “middle-income trap,” where economies struggle to move from middle- to high-income status.

Preferential market access, such as the European Union’s Everything but Arms (EBA) scheme, has supported the growth and integration of the RMG sector. However, recent changes in rules of origin are limiting opportunities to upgrade in certain product areas, including knitwear.

Participation in GVCs, especially in the apparel sector, has been central to Bangladesh’s export-led growth. It has also supported inclusive development by creating jobs -- particularly for women -- and reducing poverty.

The sector now accounts for most export earnings and employs around 4.5 million people, more than half of them women. Despite this progress, concerns remain about continued reliance on low wages and poor working conditions.

Efforts have been made to improve safety and sustainability in the industry, including the Accord on Fire and Building Safety in Bangladesh and the Alliance for Bangladesh Worker Safety.

These were introduced after the Rana Plaza collapse in 2013, which killed more than 1,100 people in a building housing five garment factories. However, the report said these efforts are still not complete.

“Bangladesh has done very well in garments, but that is a very labour-intensive activity with little upgrading to higher value-added work,” said ADB Chief Economist Albert Park, speaking at a media briefing on the sidelines of the 59th Annual Meeting of the Board of Governors of ADB in Samarkand, Uzbekistan, which concluded yesterday.

He added that Bangladesh should look for opportunities to move up within GVCs.

“And also, for Bangladesh, there is such a concentration in this one export sector that it is very risky for the economy if something unexpected occurs that really affects that sector, as we have seen in the past,” Park said.

He added that Bangladesh should diversify into other sectors and allow easier import of inputs without tariffs.

“The same kind of treatment that readymade garments get should be extended to other sectors to expand opportunities,” he said. “And meanwhile, really think about opportunities to upgrade.”

Neil Foster-McGregor, principal economist at ADB, presenting the main findings of the report, said production processes are becoming increasingly capital-intensive.

He added that geopolitics and rising sustainability demands will reshape GVCs.

He said future competitiveness will depend on resilience, sustainability and firm capabilities, not just low labour costs.

Bangladesh has settled an import bill of $1.51 billion for the March-April period under the Asian Clearing Union (ACU), a move that is expected to reduce the country's foreign exchange reserves.

Bangladesh Bank Executive Director and spokesperson Aref Hossain Khan confirmed the payment today (6 May).

According to central bank data, the country's gross reserves stood at $35.33 billion at the end of 6 May. Under the International Monetary Fund's BPM6 calculation method, reserves were recorded at $30.64 billion.

Reserves typically decline after ACU payments, and a similar trend is expected this time. However, officials noted that it takes a few days for adjustments to be reflected, meaning the immediate impact may not be visible.

Earlier, Bangladesh paid $1.36 billion for the January-February period. The ACU bill stood at $1.53 billion for November-December of the previous year, while $1.61 billion was paid for September-October that year.

The ACU is a regional payment arrangement among several Asian central banks that facilitates the settlement of import and export transactions among member countries every two months.

Bangladesh conducts trade settlements with ACU member states-including India, Iran, Nepal, Pakistan, Sri Lanka, Myanmar, Bhutan and the Maldives-through this mechanism, while transactions with other countries are generally settled immediately.

State-owned Eastern Refinery Limited is set to resume operations on 8 May as a vessel carrying 1 lakh tonnes of crude oil is scheduled to reach the outer anchorage of Chattogram Port today (6 May).

Located in Patenga near the port, it is Bangladesh's sole refinery and has remained shut for over three weeks due to crude shortages.

Mohammad Mostafizur Rahman, deputy general manager (planning and shipping), said preparations were in place to resume operations from the morning of 8 May.

He said up to three lighter vessels can unload crude oil each day, each carrying around 4,000 tonnes. Operations will begin once at least 8,000 tonnes are received.

The crude shipment is being transported by MT Ninemea, which departed on 21 April from Yanbu Port, a vital Saudi Arabian energy hub located on the Red Sea coast. The vessel is due to arrive at around 11am.

Captain Mohammad Mujibur Rahman, general manager (chartering and tramping) at Bangladesh Shipping Corporation, said the arrival time may vary slightly but unloading will begin immediately using lighterage vessels.

According to the Bangladesh Petroleum Corporation, refining operations at the plant were suspended on 14 April due to a lack of crude supply.

The last shipment arrived on 18 February. Subsequent imports were disrupted by the Iran war, which led to the closure of the Strait of Hormuz, a key route for crude shipments from the Middle East to Asia.

A planned 1 lakh tonnes cargo from Ras Tanura in Saudi Arabia on 3 March was cancelled, along with another shipment from Abu Dhabi, worsening the supply crisis.

Officials at the refinery said they had continued limited operations using around 5,000 tonnes of crude left in the Single Point Mooring pipeline at Maheshkhali, along with residual stock from five storage tanks.

Typically, about 1.5 metres of crude remains as dead stock at the bottom of tanks, becoming unusable below one metre. As reserves fell below usable levels, operations were halted from 14 April.

Another 1 lakh tonne due this month

After months of supply disruption, a second 1 lakh tonne of crude shipment has been scheduled. The cargo will be imported from Abu Dhabi National Oil Company and will consist of Murban crude.

The vessel is expected to be loaded at Fujairah Port on 10-11 May before sailing for Chattogram port. Chartering firm Bangladesh Shipping Corporation has already dispatched a tanker for the operation.

Captain Mujibur Rahman said the vessel is scheduled to arrive in Bangladesh on 22-23 May.

According to Bangladesh Petroleum Corporation, the country imports 65-68 lakh tonnes of fuel annually, with diesel and crude accounting for the largest share.

Around 15 lakh tonnes of crude are imported from the Middle East each year and processed at Eastern Refinery, which produces 16 types of products, including LPG, petrol, octane, kerosene, diesel and furnace oil.

In addition to crude, Bangladesh imports about 45 lakh tonnes of refined fuel annually from India and China. The refinery typically processes around 4,500 tonnes of crude per day. However, output was reduced to about 3,500 tonnes daily last month due to supply shortages.

By 4 March, usable crude stocks at the refinery had fallen below 2,000 tonnes. The plant mainly processes Arabian Light crude from Saudi Arabia and Murban crude from the UAE, with limited capacity to handle other grades.

Amid the supply crisis, the government approved a proposal in March to purchase 1 lakh tonnes of crude from Malaysia-based Abir Trade and Global Markets, but the deal was not finalised due to uncertainty over supply assurance.

Bangladesh Bank Governor Md Mostaqur Rahman has called on commercial banks, mobile financial service (MFS) providers and payment service providers to accelerate efforts to build a more widespread cashless society in the country.

The call came during a meeting today (5 May) between the governor and heads of cashless units from the institutions.

Speaking to The Business Standard, central bank spokesperson and Executive Director Aref Hossain Khan said building a cashless society and introducing Bangla QR codes is now a "national agenda," no longer limited to the central bank alone.

"Everyone needs to come forward to implement this agenda," he added.

He noted that while MFS providers have made significant progress in onboarding small merchants, banks have lagged behind despite having broader networks. "The central bank now wants banks to increase their contribution in expanding digital transactions."

Arif Hossain Khan also said institutions have been urged to adopt Bangla QR codes universally after 30 June. "All companies will be required to have Bangla QR codes, and MFS providers will need to shift from their own separate QR systems to the unified standard."

He further said, "To support implementation, the central bank is considering forming a dedicated committee to oversee the transition to a cashless ecosystem."

A senior Bangladesh Bank official told TBS that wider adoption of Bangla QR codes would make transactions more accessible and interoperable, especially as many banks still lack their own apps. "Strengthening digital platforms alongside QR integration is expected to accelerate the shift toward a cashless economy."

European aircraft manufacturer Airbus today advocated for the inclusion of its aircraft in Biman Bangladesh Airlines’ fleet alongside Boeing, saying that a mixed fleet would benefit the national flag carrier.

Civil Aviation Minister Afroza Khanam, State Minister M Rashiduzzaman Millat, and Biman Managing Director and CEO Kaizer Sohel Ahmed were present at the meeting with Airbus Vice President Edward Delahaye at the Secretariat.

The meeting comes four days after Biman signed an agreement with Boeing to purchase 14 aircraft at a cost of $3.7 billion.

During the meeting, the Airbus official highlighted the advantages of a mixed fleet strategy.

In response to Airbus’s proposal, the minister and state minister expressed their commitment to working closely with the company regarding the future composition of Biman’s fleet.

According to sources at the civil aviation ministry, Airbus underscored how a mixed fleet strategy could offer greater flexibility and commercial benefits to Bangladesh’s aviation sector in the future.

Asked about Airbus' latest move to sell its aircraft in Bangladesh, Aviation Expert Kazi Wahidul Alam said, while partnerships with global manufacturers like Airbus are always welcome, fleet decisions must reflect Biman’s operational reality. A phased approach -- building scale first, then considering diversification -- may be more sustainable.

Both Boeing and Airbus have repeatedly submitted proposals to Biman to sell aircraft.

ImageAirbus Vice President Edward Delahaye paid a courtesy call on Civil Aviation and Tourism Minister Afroza Khanam at the Secretariat. Photo: Ministry
Airbus Vice President Edward Delahaye paid a courtesy call on Civil Aviation and Tourism Minister Afroza Khanam at the Secretariat. Photo: Ministry of Civil Aviation and Tourism, Bangladesh

The civil aviation ministry, during the interim government, approved the acquisition of 14 Boeing aircraft, with only the formal signing remaining at that time.

Biman’s deal with Boeing concludes more than three years of fierce competition between the US manufacturer and its European rival for the airline’s next major fleet order.

Airbus gained momentum in 2023 following high-level European engagement, including discussions linked to French President Emmanuel Macron’s visit and references in a Bangladesh-UK joint statement to a possible purchase of 10 Airbus aircraft, including freighters.

Under the previous Awami League government, a policy decision had been announced to procure 10 Airbus aircraft.

However, following the fall of Sheikh Hasina’s government in a student-led mass uprising in 2024 and amid pressure related to US reciprocal tariffs, the interim government shifted in favour of Boeing.

Bangladesh Bank (BB) on Tuesday purchased $50 million from three commercial banks through multiple auction methods.

According to central bank data, it bought dollars at the rate of TK 122.75.

Accordingly, total purchases stood at $80 million in May 2026 and $5,753.50 million in FY 2025-26.

Sources said the BB purchased the dollars as part of its strategy to stabilize the TK against the US dollar and revitalize remittance and export inflows.

Bangladesh's creative or orange economy is expanding at a pace that outperforms much of the broader economy, yet it remains almost invisible in policy.

New data show the sector has contributed over Tk9,000 crore to GDP in the previous fiscal year, raising a pressing question: why is one of the fastest-growing economic segments still treated as culture, not commerce?

The Economic Census 2024 by the Bangladesh Bureau of Statistics (BBS) found that employment in the Arts, Entertainment and Recreation sector jumped to 1,12,829 in 2024, a 237% increase from just 33,441 in 2013.

The surge comes despite the absence of any explicit policy push, suggesting that market demand, digital platforms and a growing freelance ecosystem are driving expansion on their own.

Rapid growth, limited share

The macroeconomic picture supports that trend. The sector contributed Tk9,193 crore to GDP in the fiscal 2024-25, a 15.4% increase from the previous fiscal year, significantly higher than the national nominal GDP growth rate of 10.2%.

In comparative terms, the creative economy is now growing faster than agriculture (12.8%), industry (10%) and services (11.8%), albeit from a much smaller base, according to BBS data.

Still, its footprint in the overall economy remains marginal. At just 0.17% of a Tk55 lakh crore economy, the sector's contribution is overshadowed by traditional growth engines. Economists say this contrast – rapid expansion alongside minimal policy recognition – points to a structural gap in how Bangladesh defines and supports emerging sources of economic value.

For decades, economic policy has prioritised manufacturing, remittances and agriculture, leaving creativity outside the formal development framework. But with a fast-growing workforce and growing output, the data suggest that the question is no longer whether the creative economy matters, but why it continues to operate without a clear policy anchor.

Sakib Bin Amin, a professor of economics at North South University, told The Business Standard that Bangladesh's creative industry remains largely informal. Even though the industry's growth looks positive on paper, practitioners often struggle to survive as they lack a safety net, no pensions, no retirement benefits, and no professional protection, he said.

The current state of the creative industry in Bangladesh is defined by profound job insecurity, said Prof Sakib.

"For example, perhaps only 5% of our musicians can afford to treat their craft as a full-time profession. For the rest, it becomes a 'second job' due to a lack of financial sustainability. We also see a 'seasonal' earning cycle, where even the most talented individuals are forced to migrate or leave the industry entirely in search of stability," he said.

To address these gaps, Prof Sakib said, "To transform this sector, the government must formally recognise it under a policy framework and integrate artists into national pension and benefit schemes.

He said policymakers must focus on inclusion and decentralisation, ensuring that rural talent and female artists receive the institutional support needed to professionalise their craft.

What is orange economy

The term "orange economy" coined by Felipe Buitrago and Iván Duque in their 2013 book "The Orange Economy: An Infinite Opportunity" captures a wide spectrum of creative industries, from art, crafts and films to fashion, music, cultural heritage and video games. Globally, it has turned creativity into a multi-trillion-dollar engine of growth.

In Bangladesh, however, that transformation remains incomplete. Artists, designers, freelancers, athletes and storytellers are still largely viewed as cultural contributors rather than economic actors, leaving a fast-emerging sector outside the country's core policy framework.

For generations, families have followed a familiar script: education, a conventional profession, and financial stability. Creativity rarely figured in that roadmap – not for lack of talent, but because economic policies offered little incentive to pursue it as a viable career.

Global evidence, however, points in a different direction. In its last Creative Economy Outlook 2024, UN Trade and Development revealed the growing role of creative industries in trade and economic expansion. Across countries, the sector contributes between 0.5% and 7.3% of GDP and accounts for 0.5% to 12.5% of total employment – underscoring its potential as both a growth driver and a source of jobs.

"The creative economy has the right forces pushing its sails. This is not just art. It is an economic powerhouse that we must harness together, leaving no one behind," said Rebeca Grynspan, secretary-general of UNCTAD, in the report.

Low public investment

A long view of Bangladesh's budgets tells a remarkably consistent story. Over a decade from FY12 to FY26, three ministries of recreation and culture development central to the orange economy – the cultural affairs ministry, the information and broadcasting ministry, and the youth and sports ministry – have received below 1% of the total development budget for nearly two decades.

For FY26 original budget, together, their combined development budget allocation stands at Tk1,982 crore – a figure that represents a mere 0.81% of the total development budget of Tk2,45,609 crore. Meanwhile, it was 0.72% in FY07.

The country saw nine basis points of movement in twenty years, while the creative workforce tripled.

At the same time, education has remained one of the top recipients of public expenditure, third only to public administration and interest payments, but it remains disconnected from the creative economy.

If the orange economy is to grow meaningfully, experts say, it should not come from recreation and culture ministries alone; it should come from classrooms. The issue is not spending more, but spending differently: aligning education with creativity, skills, and content production. That is where the real shift begins.

Regional comparison and policy gap

The regional contrast makes that habit harder to defend. India is strengthening the orange economy and positioning it as a global hub for content creation. Many initiatives have been launched.

In February 2026, in its Union Budget, India announced the establishment of AVGC – Animation, Visual Effects, Gaming and Comics – Content Creator Labs across 15,000 secondary schools and 500 colleges nationwide.

The Indian Institute of Creative Technologies, Mumbai, has been designated as the nodal agency for planning, coordination and phased rollout of the Content Creators' Labs.

The announcement did not arrive without preparation. India's AVGC Promotion Task Force, constituted in April 2022, spent years developing a comprehensive national strategy and policy.

Every economy chooses what it decides to grow. Bangladesh chose garments. That was rational in 1990. In 2026, with a $456 billion economy, that single choice still defines the country's economic identity – while the orange economy, an emerging sector with proven growth momentum, waits for a strong policy decision that has not come.

In search of its next engine of growth, Bangladesh does not have to look far for a model. A dedicated task force and a national orange or creative economy strategy could be the institutional turning point.

Five lakh jobs, 1.5% of GDP: A promise waiting for a plan

There are early signs that the newly elected government of Bangladesh is beginning to connect culture with economic possibilities.

The government has initiated the recruitment of sports and music teachers in primary schools and introduced incentive schemes for athletes.

A nationwide grassroots sports initiative, "Notun Kuri Sports," launched on 2 May, aiming to identify talented athletes from the grassroots across the country.

In its election manifesto, the ruling BNP committed to the development of the creative economy to 1.5% of GDP, generating five lakh jobs, establishing regional creative hubs, forming a long-term investment fund, and building a formal institutional framework.

It also emphasised sports, national culture, and creative talent development in primary and secondary education.

Meanwhile, the next national budget for FY27 knocks at a hopeful moment. For once, the numbers, the political will, and the sector's own momentum are pointing in the same direction.

The good news is that Finance Minister Amir Khosru Mahmud Chowdhury said at a pre-budget discussion with the leaders of the Economic Reporters' Forum on 25 April that the creative economy will be recognised in the upcoming budget.

He noted that the government is working to bring rural cottage industries, artisans and creative industries into the mainstream.

The finance minister also said sports, culture, theatre, cinema and music sectors are also being given importance as part of the economy, which were neglected until now.

Money launderers, scammers and wilful defaulters will not be eligible for a Tk 20,000 crore refinance fund being prepared by the central bank to restart fully or partially closed factories, according to Bangladesh Bank (BB) officials.

They said only genuine businesses whose factories have shut down due to unavoidable circumstances and which are willing to repay their loans will qualify for loans from the fund.

From the fund, affected factories will receive low-interest working capital loans. In some cases, term loans may also be provided.

BB officials, who are familiar with the matter, told The Daily Star yesterday that the interest rate could be set at 13 percent, with a possible 5 percent subsidy.

The central bank will finalise the policy after it receives approval from the finance ministry on the interest subsidy. The fund will then be launched once all procedures are completed.

On May 1, Prime Minister Tarique Rahman said the government had taken initiatives to gradually reopen closed factories across the country.

He said he had instructed relevant authorities to assess how quickly each factory could be brought back into operation to create employment.

Subsequently, the BB asked commercial banks to submit lists of closed factories to help identify those eligible for financing support.

So far, more than 1,000 fully and partially closed factories and industries have been listed by commercial lenders and submitted to the central bank, according to BB officials. Each of these entities has loans of more than Tk 100 crore.

Besides, a committee headed by BB Deputy Governor Md Kabir Ahmed has begun drafting a detailed policy for the fund.

Central bank officials said discussions are ongoing between the central bank and the government on the form of support needed to reopen closed factories. Once these discussions are completed, the fund will be formed and the policy issued.

Bankers, however, have sought a government or central bank guarantee in case loans extended to reopen factories turn into defaults or bad loans again.

They have also called for additional collateral from entrepreneurs, on top of existing security, for new lending.

In addition, they have proposed allowing banks to appoint consultants to monitor whether factories are operating properly and whether loan funds are being used as intended.

After the fall of the Awami League-led government in August 2024, the central bank under the interim government introduced an easier loan rescheduling policy for affected factories and industries.

Foreign direct investment (FDI) in Bangladesh has rebounded once again. In 2025, net FDI increased by 39.36% compared with the previous year.

Net FDI in the outgoing year stood at nearly $1.77 billion, up from $1.27 billion in 2024.

These figures were revealed in Bangladesh Bank's latest report published yesterday (5 May).

According to the report, FDI inflows to Bangladesh had declined over the past three years but rebounded in 2025. Total FDI inflows in 2025 were $4.69 billion, while FDI outflows stood at $2.92 billion.

"The inflows of FDI have contributed significantly to the economic development of Bangladesh. Due to political instability, the inflow of FDI had slowed during the middle two quarters in 2024."

Net FDI refers to the total inflow of foreign direct investment into a country minus the outflows of investment during a specific period.

According to Bangladesh Bank data, growth in new equity investment was comparatively slow. However, reinvested earnings increased and intra-company loan flows rose significantly, contributing to higher net FDI.

The report said equity capital within net FDI increased by only $10 million in 2025.

On the other hand, reinvested earnings rose by $159 million, or 25.68%.

Intra-company loans increased by $330 million, or three times higher than the previous year.

Reinvested earnings are profits retained and reinvested by a foreign-owned firm instead of being distributed as dividends, contributing to business expansion and counted as FDI.

Intra-company loans are financial transactions between a parent company and its foreign affiliate, used for funding operations or investments, and are also considered a component of FDI.

Net FDI inflows in Bangladesh stood at $1.77 billion in 2025.

The highest FDI-attracting sectors were power, food products, textile and clothing, banking, telecommunication, chemicals and pharmaceuticals, trading, agriculture and fishing, leather and leather products, and computer software and IT.

The major country-wise net FDI inflows, arranged in descending order, were the Netherlands, China, Singapore, Republic of Korea, and the United Kingdom.

Overall stock position of FDI

The stock position of FDI reached $20.6 billion at the end of December 2025, increasing by $17.6 billion, or 9.66%, compared with December 2024.

At the end of December 2025, the largest FDI stock holders were the United Kingdom, Singapore, China, Republic of Korea, and the Netherlands.

The Bangladesh Bank (BB) has revised its prudential regulations on consumer financing, raising the ceiling for auto and personal loans and introducing incentives to promote electric and hybrid vehicles.

The central bank issued a circular in this regard yesterday, stating that banks will now be allowed to provide auto loans of up to Tk 80 lakh per individual, including insurance coverage, for purchasing electric and hybrid vehicles.

Previously, banks could provide auto loans of up to Tk60 lakh per individual for conventional vehicles, with no separate ceiling for electric and hybrid vehicles.

The BB said it set the new limit for purchasing electric and hybrid vehicles to encourage environmentally friendly transport.

The regulator also eased equity requirements for such vehicles. While conventional auto loans must maintain a maximum debt-equity ratio of 60:40, loans for electric and hybrid cars can now be extended at a more relaxed ratio of 80:20.

The BB said the changes were made in consideration of rising automobile prices and the growing demand for cleaner and more energy-efficient vehicles in the country.

The regulator also revised limits on personal loans, including those for consumer durables. Under the new rules, individuals can take out unsecured personal loans of up to Tk 10 lakh, up from the previous limit of Tk 5 lakh.

Banks may lend higher amounts if backed by proper securities, but the total loan in such cases cannot exceed Tk 40 lakh. Earlier, this limit was Tk 20 lakh.

Loans secured against liquid assets will remain outside this cap, as per the circular.

The regulator noted that Bangladesh’s consumer market has expanded significantly in recent years, driven by rising per capita income and steady economic growth.

As per the circular, the BB imposed a prudential safeguard, directing banks to ensure that growth in consumer loans does not exceed the overall loan growth of the respective bank.

The latest instructions supersede previous circulars issued in 2004, 2017, and 2024 on consumer financing. The directive, issued under the Bank Companies Act, 1991, took effect immediately.

The Asian Development Bank (ADB) has agreed to provide $1 billion in budget support to Bangladesh by June to tackle economic challenges stemming from soaring energy prices triggered by the Middle East war situation.

Finance Minister Amir Khosru Mahmud Chowdhury shared the development following a meeting with ADB President Masato Kanda at the 59th Annual Meeting of the ADB currently being held in Samarkand, Uzbekistan.

Khosru, Economic Relations Division Secretary Md Shahriar Kader Siddiky, and several senior officials are attending the four-day event that began on May 3.

“They have agreed to provide $1 billion by June this year. This could potentially increase if needed in the coming days,” he told The Daily Star in an interview after the meeting.

Bangladesh earlier sought $1 billion from the Manila-based lender to shield its economy from global shocks triggered by the US-Israel war on Iran, which led to a spiral in oil prices.

The South Asian country meets 95 percent of its fuel needs through imports, primarily from Gulf countries including Saudi Arabia, the United Arab Emirates, and Qatar.

The war affected supplies as Iran blocked the Strait of Hormuz, through which one-fifth of global oil and a good portion of gas passes.

On Monday, during a session of the Board of Governors at the ADB’s annual meeting, Khosru sought expanded support for Bangladesh from the ADB, as geopolitical tensions, inflation, and supply chain disruptions have increased the country’s energy-related expenditures by an estimated $3 billion.

Following his meeting with President Kanda, the finance minister said Bangladesh had asked for counter-cyclical support if the war continues. While the issue did not come up in yesterday’s discussion, he noted, “It is in our proposal.”

Apart from budget support, both sides discussed issues ranging from the BNP-led government’s election manifesto and digital transformation to the ADB’s support for achieving the target of 10,000 megawatts of clean energy by the 2030s.

They also discussed the North-West Dhaka South-East Economic Corridor, involving about $79 billion proposed by the ADB to Bangladesh under a 20-year development plan, as well as a visit by the ADB president to Dhaka and technical assistance for the development of the capital market.

The finance minister said the ADB has a commitment to provide $1.4 billion for the fiscal year 2025-26.

“And the necessity of the fund can be discussed in the coming days and increased if needed,” he said.

Khosru stated that the ADB is “fully aligned” with the current government’s election manifesto, ensuring that all future programmes and projects will be consistent with national priorities.

“This is the biggest thing. I mean, when working with any multilateral body, this issue often arises where they want one thing, and the government wants another. This will not happen in this case,” he said. “Therefore, all programmes, support, and projects will be in accordance with our manifesto in Bangladesh. This is a very important thing.”

Khosru noted that discussions took place regarding Bangladesh’s renewable energy target, stating that the ADB’s interest in this area is very high.

“They will assist, and some countries, like Germany, have also shown interest, and there is a possibility of them joining this project too. Therefore, we are hoping for a large portfolio here in the coming days.”

“Germany is very interested in renewables because of current climate issues. They have many climate-friendly projects in their own country in various ways, among which renewable energy -- the issue of electricity -- is of great interest to them, and we might get major cooperation in this area,” he added.

On the capital market, the finance minister said ADB’s technical support is needed to improve Bangladesh’s market, provide protection to investors, and support listed companies.

“And the deregulation we have been talking about for so long-- serious deregulation is needed. When we talk about taking it from a frontier market to an emerging market, their support will mainly come in this area.”

“The rest of the work has to be done by our government. So, we will move forward in this matter. And digitalisation is a big issue here; we will work with them on that too,” the minister added.

Khosru mentioned the North-West Dhaka South-East Economic Corridor, describing it as a project running from the northern region to Chattogram, integrating growth centres -- such as the potential for light engineering in Bogura or agricultural processing opportunities in other regions -- that are in our minds and also in theirs.

“So, keeping in mind the facilities of each region, we, along with the ADB, have sat together and brought this whole project to a certain point. I hope this will be finalised once we return to Dhaka and the ADB president visits,” he said, expecting the visit by the end of this month.

Responding to a question on the progress of discussions regarding the release of two instalments of the $5.5 billion loan from the International Monetary Fund (IMF), Khosru said discussions have been ongoing with the Washington-based lender.

“We are an elected government, and we must take decisions very thoughtfully,” he said. “Ending a discussion is very easy, but I cannot take any decision outside of my country’s interest or the interest of our people.”