A commerce ministry report shows that under an Economic Partnership Agreement (EPA) with Japan, Bangladesh will initially benefit from duty-free access for a large number of products, but the balance will begin to shift in Japan's favour after six years.

Officials and experts acknowledge that there are revenue risks but also say phased duty reductions will limit the risks and give local industries time to strengthen.

They say the EPA will boost exports, attract investment, and support Bangladesh's development, while the agreement could also encourage other countries to pursue similar deals.

The commerce ministry report, a copy of which was obtained by The Business Standard, shows that when the agreement takes effect, 7,379 Bangladeshi products will receive duty-free access to the Japanese market, while 1,039 Japanese products will enjoy the same benefit in Bangladesh.

Although these figures initially favour Bangladesh, a further 2,702 Japanese products will gradually receive duty-free access to the Bangladeshi market within the next six to eight years.

At one stage, a total of 9,354 Japanese products will enter Bangladesh without tariffs, while 7,436 Bangladeshi products will enjoy duty-free access to the Japanese market.

Commerce Secretary Mahbubur Rahman said because duty reductions for various sectors are being phased in, it will take time for all Japanese products to gain tariff-free access.

"As a result, there is little risk of revenue loss or an oversupply of Japanese goods. By then, Bangladesh will have reached a competitive position in many sectors," he added.

He noted that Bangladesh must gradually adopt a lower import duty structure as most developed countries are reducing tariffs, leaving the country no alternative but to follow suit.

Mahbubur confirmed that the agreement will be signed on 6 February, with him and Commerce Adviser Sk Bashir Uddin expected to attend the signing ceremony in Tokyo.

However, a senior commerce ministry official, speaking on condition of anonymity, said there was uncertainty over signing the deal just five days before the national election.

Bangladesh's EPA with Japan could encourage other countries to engage similarly.
MA Razzaque, Chairman of Rapid

$248.34m revenue loss

The ministry report also estimates that Bangladesh could lose about $248.34 million a year in revenue if customs, supplementary, and regulatory duties on Japanese products were withdrawn.

At the same time, it warns that exports to Japan could fall by $250 million to $300 million after LDC graduation if an EPA is not signed and Bangladeshi goods face regular tariffs.

Most of the 1,039 Japanese products set to receive zero-duty access at the initial stage already enter Bangladesh at zero or 1% duty.

Good opportunity for RMG

At present, garments exported to Japan must meet double-stage transformation rules of origin, meaning at least two production stages must be completed in Bangladesh.

The report said once the EPA takes effect, Bangladeshi garments will be able to enter Japan from day one under single-stage transformation rules, requiring only one production stage in Bangladesh.

Due to phased process, there is little risk of revenue loss or an oversupply of Japanese goods.
Mahbubur Rahman, Commerce Secretary

Leather, agriculture, services

The report notes that 206 leather and leather goods products could later gain duty-free access to the Japanese market through further negotiations. However, the leather sector is considered highly sensitive by Japan and is not included in any of its free trade agreements or EPAs.

Most of Bangladesh's 1,259 agricultural products will not receive zero-duty access to Japan immediately after the deal is signed.

Under the WTO's sectoral classification, there are 155 service sectors. Under the EPA, Bangladesh will gain duty-free access for 120 service sectors in Japan, while Japan will receive the same benefit for 97 service sectors in Bangladesh.

Passenger cars

In the case of Japan's CKD (completely knocked-down) passenger cars, tariffs will be reduced gradually over 12 years before eventually allowing duty-free entry into the Bangladeshi market.

A senior commerce ministry official, speaking on condition of anonymity, said Japan had strongly pushed for immediate duty-free access for its cars, as Bangladesh is a major market for Japanese vehicles.

However, Bangladesh has not agreed to the proposal due to revenue concerns. Instead, Dhaka has offered Japan extended MFN status for vehicle exports, meaning that if Bangladesh grants duty-free access to cars from any other country, Japanese cars will automatically receive the same benefit, the official added.

What experts say

Mostafizur Rahman, distinguished fellow at the Centre for Policy Dialogue, said the deal should not be judged solely on goods trade; services, investment, technology, and other factors are equally important.

"Although Japan will grant immediate zero-duty access for 7,379 Bangladeshi products, only a few are currently exported. To benefit fully, Bangladesh must boost supply capacity, diversify exports, and strengthen competitiveness," he said.

He explained that tariff concessions for Japanese products pose little threat to local industries.

"No Bangladeshi sectors face direct competition from imports from Japan. On the contrary, products currently imported under tariffs from other markets could, in future, enter duty-free from Japan, benefiting consumers and producers," he added.

The economist added that attracting Japanese investment is crucial, requiring a better business climate, one-stop services, reliable gas supply, improved port facilities, and shorter lead times.

Mostafizur also stressed focusing on services exports, including training nurses and medical technicians to meet Japan's demand for skilled workers.

MA Razzaque, chairman of Research and Policy Integration for Development (RAPID), told TBS that the EPA with Japan has several positive aspects.

"Bangladesh exports the most RMG to Japan, so even after LDC graduation, these products will enter Japan duty-free. Without an EPA, Bangladeshi garments would face a 10% tariff after graduation," he said.

He added that Japan is a developed country and a globally recognised negotiator. "Bangladesh's EPA with Japan could encourage other countries to engage similarly."

Razzaque further said Japan is also a major investor, and with its push to reduce dependence on China, Bangladesh could emerge as a new destination for Japanese investment.

However, Razzaque cautioned about risks, noting that revenue loss is the main concern.

"The more Japanese products enter Bangladesh duty-free, the higher the risk to revenue. Local industries must also be strengthened. Moreover, if the agreement is not properly implemented, it could send a negative signal internationally," he added.

Former Tariff Commission member Mostafa Abid Khan said signing an EPA with Japan was a positive development, but it was too early to say how much Bangladesh's export sector would ultimately benefit.

"Japanese imports would not hurt Bangladesh if tariff policies for other countries were properly aligned," he told TBS. "Failure to adjust MFN (most favoured nation) rates could create a risk of trade diversion."

Government sees opportunity

The government believes the Japan deal will create new opportunities for trade, investment, and employment. It also hopes the agreement will reduce dependence on the European Union and the United States, while positioning Japan as a major export market.

Japan has notified the World Trade Organisation that it will extend GSP benefits to LDCs and graduating countries until 2029. Dhaka views the EPA as a long-term safeguard, as GSP is temporary while the EPA is a binding agreement.

Currently, 98.7% of Bangladeshi products enjoy duty-free and quota-free access to the Japanese market, and Japan is one of Bangladesh's key export destinations.

According to commerce ministry data, Bangladesh exported $1.4 billion worth of goods to Japan in FY25, while importing $1.8 billion in the same year.

Seven rounds of meetings

The Bangladesh-Japan EPA was launched under the ousted Awami League, with a joint research group identifying 17 priority sectors in a 27 December 2023 feasibility report.

Negotiations began in Dhaka on 19 May 2024 but stalled after the 5 August political change. The interim government revived talks in November 2024, setting a one-year signing target. Seven rounds of meetings preceded the commerce ministry's announcement of the deal signing.

The EPA aims to secure market access, expand services trade, and address post-LDC graduation challenges, marking Bangladesh's only bilateral deal beyond its pact with Bhutan.

The Bangladesh Bank's board approved a draft amendment to the Bangladesh Bank Ordinance 2025 in October as part of efforts to ensure the central bank's autonomy, but the amendment has yet to be implemented, even after three months, due to delays in obtaining final approval from the finance ministry.

The proposed changes to key appointments – particularly, the exclusion of government representatives from the central bank's board – have reportedly caused discontent among bureaucrats, contributing to the delay, according to an insider.

Against this backdrop, bankers at a meeting with the Bangladesh Bank on 11 January demanded swift implementation of legal reforms, including amendments to the Bank Company Act and the Bangladesh Bank Ordinance, to prevent a recurrence of the political interference seen under the previous regime.

During the meeting chaired by Bangladesh Bank Governor Ahsan H Mansur, bankers raised questions about the delay in implementing legal reforms. Nazma Mobarek, secretary of the Financial Institutions Division, was present at the meeting as the government representative.

Asked whether the central bank faced any political resistance in implementing the legal reforms, Governor Mansur told TBS that there had been no political interference, but some bureaucratic resistance on certain issues.

He said the key changes to the Bangladesh Bank Ordinance relate to the appointment and removal of the governor and deputy governors, board composition, and pay structure.

Mansur said the appointment and removal of top management would be conducted through an independent committee to ensure transparency and independence, noting that a political government would no longer be able to remove top officials solely through a notice and would instead have to follow due process.

Speaking to TBS on condition of anonymity, a managing director of a private commercial bank said the question was directed at the secretary, but she did not respond and left the meeting abruptly.

This was the first time a government representative had attended a bankers' meeting, but she left after bankers raised issues related to legal reforms, said the banker, warning that without the implementation of legal reforms to strengthen the central bank's autonomy, corruption in the banking sector could be repeated.

When contacted, Nazma Mobarek said a meeting was scheduled for 16 January to discuss the Bank Company Act and that work was underway on the Bangladesh Bank Ordinance.

The Bangladesh Bank's move to amend the Ordinance, in line with recommendations from the IMF, aims to shield the central bank from political interference and bring its governance in line with global best practices.

The draft amendment initially excluded government representatives from the central bank's board in line with international practice. At present, the Bangladesh Bank board includes three government representatives, a structure the governor said is not followed by any other central bank worldwide.

However, he said the Bangladesh Bank later included one government representative in the final draft, a move that drew objections from the IMF. "Despite the IMF's objection, we retained one government representative on the board, considering Bangladesh's context," he added.

Regarding pay structure, the governor said the draft amendment proposes an independent pay scale, a practice followed globally. He noted that the Bangladesh Bank earned a profit of Tk24,000 crore in 2025 – the highest among any organisation in the country.

"The central bank should therefore have an independent pay structure, with salaries higher than government levels but lower than those in private sector banks," he said, adding that while there is bureaucratic resistance over pay scale and board composition, the government is working to address the concerns.

On the proposed amendment to the Bank Company Act, the governor said some bank directors had opposed the requirement for 50% independent directors on boards. However, he argued that the provision ultimately benefits owners, as stronger governance improves bank performance.

Citing BRAC Bank as an example, he said the bank operates with 50% independent directors and has become one of the country's top-performing banks. The amendment, he added, would also reduce family dominance on boards, noting that bank owners have already seen how excessive family control has damaged institutions in the past.

Key reforms under amended Bangladesh Bank Ordinance

According to the draft, under a "double-layer" system for governor's appointment, a search committee will be formed, and the president will give the final approval. Decisions will be taken by a majority vote of the members present at the search committee meeting, and in the event of a tie, the presiding member will have the power to cast a second or casting vote.

The committee will include a former finance minister (chairperson), a former Bangladesh Bank governor or deputy governor, the comptroller and auditor general, the chairperson of the Public Service Commission, and two eminent citizens with expertise in economics, banking, or finance – at least one of whom must be a woman.

The governor's post will be upgraded from secretary to ministerial status.

The government will be legally restricted from dismissing the governor at will; the governor can only be removed through the same process used for removing a Supreme Court justice, which is a complex constitutional procedure.

The governor, deputy governors, and non-executive directors can only be removed by the Supreme Judicial Council for disqualification or gross misconduct.

The draft introduces major changes, including the restructuring of the Bangladesh Bank's board and the Monetary Policy Committee, with limited government officials' involvement.

It also clearly defines the Bangladesh Bank's mandate to ensure price and financial stability, granting it full policymaking, financial, operational, and personnel autonomy. Under the proposed ordinance, the Bangladesh Bank will become a statutory organisation.

The bank will manage its budget, allocate profits, and oversee monetary policy, financial supervision, and foreign exchange without interference. Direct government financing is restricted. Interest rates will be set by an independent Monetary Policy Committee.

The board will comprise the governor, two deputy governors, one government representative and five or six independent non-executive members with at least 15 years of relevant professional experience.

The ordinance was prepared in line with IMF recommendations as part of its $4.7 billion loan package, aiming to provide legal safeguards for the Bangladesh Bank's institutional, functional, financial, and personal autonomy, shielding it from undue political and private sector influence.

Major changes in the Bank Company Act

The Bangladesh Bank proposes limiting the number of directors from a single family and their affiliates on bank boards from five to two, and cutting a director's continuous term from 12 years to six, in a move to curb family influence in bank management.

Such dominance by certain board members has crippled the country's banking sector over the past 15-20 years, particularly during the Sheikh Hasina regime, leading to rampant loan scams, rising non-performing loans, and loss of public funds and trust.

Conglomerates such as S Alam gained control of multiple banks and withdrew thousands of crores of taka, much of which was allegedly laundered out of the country.

The central bank, in the final draft amendment of the Bank Company Act, also proposes to bar political figures from boards, ease foreign investors' shareholding limits, restrict one person from holding large stakes in multiple banks, and treat general and wilful defaulters equally.

The proposed draft amendment prohibits political figures – particularly government ministers, members of parliament, and mayors of city corporations – from serving as bank directors.

It also reduces the maximum number of directors in a bank company from 20 to 15 and requires that at least 50% of board members be independent directors, appointed from a panel prepared by the Bangladesh Bank.

While private importers must clear all customs duties before goods are released from port, two of the government's largest energy importers – Bangladesh Petroleum Corporation (BPC) and Petrobangla – have been lifting fuel consignments without paying upfront, leaving more than Tk34,000 crore in unpaid duties and taxes, according to customs officials.

The practice, they said, has severely hurt revenue collection at Chattogram Custom House, which handles most of the country's petroleum and liquefied natural gas (LNG) imports and relies heavily on payments from the two state-owned entities to meet its targets.

The biggest exposure is Petrobangla's LNG imports.

In an official letter dated 8 January, Chattogram Custom House demanded Tk22,048.62 crore in unpaid duties and taxes from Petrobangla for the period from 2021 to December 2025, alleging that LNG cargoes had been released without lawful assessment or payment.

According to the letter, obtained by The Business Standard, Petrobangla imported LNG under 408 bills of entry up to 30 November 2025. Duties amounting to Tk1,610.54 crore were paid against only 38 bills, while the remaining 370 consignments were cleared without payment.

The customs authority said this violated Sections 83, 84 and 90 of the Customs Act, 2023, which require importers to submit bills of entry, complete assessments and pay all applicable duties and taxes before goods are released.

"Petrobangla has been releasing LNG consignments by submitting bills of entry without paying duties or taxes, which is clearly contrary to the law," said Tafsir Uddin Bhuiyan, additional commissioner of Chattogram Custom House.

BPC's Tk12,347 crore exposure

BPC and its subsidiaries including Padma Oil Company, Meghna Petroleum, Jamuna Oil Company, Eastern Refinery and Standard Asiatic, have also built up large unpaid customs liabilities.

Between July 2020 and June 2025, these entities imported goods under 7,190 bills of entry, creating potential unpaid duties and taxes of Tk12,347 crore, customs officials said.

Show-cause and demand notices were issued for 695 bills, claiming Tk3,430.32 crore. BPC later paid Tk700 crore, but as of 29 October 2025, final demand notices were still outstanding on 578 bills amounting to Tk2,730.32 crore.

'Unequal system'

Customs officials said repeated reminders have failed to secure timely payments, forcing the authorities to issue final demand notices.

They said government-owned importers enjoy operational privileges that private firms do not, allowing them to clear goods without immediate duty payment.

"Private importers cannot release goods without paying duties. But state-owned entities do, and that gap is one reason we struggle to meet revenue targets," Tafsir Uddin said.

With Chattogram handling most fuel imports, any delay by BPC and Petrobangla directly hits national revenue performance, he added.

Energy expert Prof M Tamim said the two companies collect duties and taxes from consumers but fail to pass them on to the government.

"Releasing imports without paying duties is a clear irregularity," he said, urging the National Board of Revenue to intervene.

Why delay in payments

Petrobangla Director (Finance) Mizanur Rahman said LNG imports were previously subject to double taxation, with a 15% VAT at the import stage and another 15% during distribution.

"The government withdrew the 15% import-stage VAT in June 2025, leaving only a 2% advance income tax (AIT) and no customs duty on LNG imports," he told The Business Standard.

"We are now paying the AIT regularly. Most of the Tk22,048 crore dues relate to the period before June 2025."

A senior Petrobangla official said chronic delays in government subsidy payments were the main reason the company could not clear its tax liabilities.

"We sell gas at a subsidised rate of around Tk2 per unit. The government is supposed to reimburse that subsidy, but Finance Division delays have left us short of cash," the official said.

The situation worsened as the taka weakened and global LNG prices surged, sharply raising import bills, he added.

Petrobangla Chairman Mohammad Reznur Rahman said, "We are working with the NBR

and the Finance Division. Some arrears have already been paid, and once the subsidy is

disbursed, we will settle the remaining dues."

BPC's chairman and directors did not respond to calls for comment. However, a BPC official said the corporation's companies regularly pay their dues and that payments are withheld only when disputes arise over customs claims.

Duties waived in budget

Petrobangla Director (Finance) Mizanur Rahman said LNG imports were previously subject

to double taxation, with a 15% VAT at the import stage and another 15% during

distribution.

"The government withdrew the 15% import-stage VAT in June 2025, leaving only a 2%

advance income tax (AIT) and no customs duty on LNG imports," he told The Business

Standard.

"We are now paying the AIT regularly," he added, noting that the Tk22,048.62 crore in

dues had accumulated before June 2025.

The FY2025–26 budget withdrew import duties on several fuels, including diesel and natural gas, while granting concessions on CNG, NPG and LNG imports.

The import duty on natural gas was cut from 100% to zero, while duties on crude and partially refined petroleum, fuel oils, gas oil and other heavy oils were fully waived.

For CNG, NPG and LNG, the import duty was reduced from 10% to 5%.

The budget also proposed lowering the import duty on crude oil and oil derived from bituminous minerals from 5% to 1%.

For aviation fuels – including jet fuel, kerosene, naphtha, motor and aviation spirits, and white spirit – the duty was proposed to fall from 10% to 3%, with the same rate applied to light diesel and high-speed diesel.

Bangladesh Bank (BB) has allowed the import of liquefied petroleum gas (LPG) under suppliers’ or buyers’ credit, in a move aimed at easing financing pressure on local importers amid a deepening LPG supply crisis.

The BB issued a circular in this regard yesterday, saying LPG imports would be eligible for usance terms of up to 270 days.

The move comes as residents and restaurants are struggling to cook daily meals amid a worsening gas crisis affecting both pipeline supplies and bottled LPG.

LPG prices have gone up by Tk 350 to Tk 900, depending on the cylinder size, amid limited supply. LPG cylinders are being sold at prices higher than the government-fixed rates, affecting both households and businesses.

BB said LPG is imported in bulk and later bottled in cylinders for domestic use, a process that requires additional time for storage, bottling, and other operational activities.

Considering this operational reality, the central bank said LPG should be treated as an industrial raw material for trade credit.

Under existing foreign exchange regulations, imports of industrial raw materials are permissible under suppliers’ or buyers’ credit for a usance period of up to 270 days, or the cash conversion cycle, whichever is earlier.

In addition to suppliers’ credit, BB advised banks to arrange buyers’ credit facilities from overseas banks and financial institutions.

Banks may also facilitate bill discounting through offshore banking units of scheduled banks in Bangladesh, subject to compliance with prevailing foreign exchange regulations and prudential credit norms.

The move is expected to provide greater flexibility to LPG importers, helping them better manage cash flows amid rising import costs and tight liquidity conditions.

The Dhaka Stock Exchange (DSE) has finalised the annual rebalancing of its benchmark index and the semi-annual rebalancing of its blue-chip index, leading to the exclusion of several market heavyweights and multinational entities.

According to the latest reshuffle, 16 companies are being dropped from the DSE Bangladesh Broad Index (DSEX), while nine new firms are being included. This adjustment brings the total number of constituents in the DSEX to 319, down from the previous 326.

The new index composition, approved by the DSE Index Committee, is scheduled to take effect on 18 January.

Among the most notable DSEX exclusions is Beximco Limited, along with the multinational Unilever Consumer Care. The list of dropped companies also highlights significant stress in the banking sector, as five banks – Exim Bank, Social Islami Bank, First Security Islami Bank, Union Bank, and Global Islami Bank – have been removed from the broad index.

Other notable exits include Phoenix Finance, Midas Finance, Union Capital, Apollo Ispat, and Hamid Fabrics.

On the entry side, the DSEX is seeing an influx of mostly Z-category or "junk" stocks. New additions include Bangladesh Welding, Desco, Dulamia Cotton, Safko Spinnings, Standard Ceramic, and Zeal Bangla Sugar, alongside A-category firms like Hwa Well Textile and Northern Islami Insurance, and B-category Sharp Industries.

DSE officials noted that although many of the removed companies maintained substantial market capitalisation, they failed to meet the necessary trading or turnover criteria. This disconnect is largely attributed to the ongoing slowdown in the capital market, which has dampened trading activity across the board.

Under the Bangladesh Index Methodology developed by S&P Dow Jones Indices, stocks must meet specific liquidity and market cap thresholds to remain eligible. For the DSEX, a constituent must maintain a float-adjusted market capitalisation of at least Tk10 crore. More importantly, stocks are required to have a minimum six-month average daily value traded of Tk10 lakh. They must also trade for at least half of the normal trading days in each of the three months leading up to the rebalancing.

Simultaneously, the blue-chip DSE 30 Index (DS30), which represents the most investable and liquid stocks on the exchange, underwent its semi-annual rebalancing.

Three companies – Meghna Petroleum, BSRM Steel, and Fine Foods – have been included in this prestigious list. They replaced Heidelberg Materials, GPH Ispat, and Khan Brothers PP Woven Bag, which were dropped for failing to sustain the required criteria.

The DS30 is designed to reflect a significant portion of the total equity market capitalisation and is built on pillars of liquidity, financial viability, and market cap.

To qualify for the DS30, a company must have a float-adjusted market capitalisation above Tk50 crore and maintain a three-month average daily value traded of at least Tk50 lakh. Furthermore, the methodology mandates that DS30 constituents must be profitable, specifically requiring positive net income over the latest 12-month period. This is calculated by aggregating the four most recent quarters of reported net income. While the liquidity requirement can be eased to Tk30 lakh under certain conditions to maintain index size, the fundamental requirement for financial viability remains a strict barrier for entry into the blue-chip category.

In contrast to the shifts in the main board, the DSE SME Growth Index (DSMEX) remained entirely unchanged following its annual review. No new companies met the criteria for inclusion, and none of the existing 19 constituents failed to meet the requirements.

Consequently, the DSMEX will continue with its current lineup of 19 companies when the new changes take effect later this month.

In a strategic move to bolster the nation’s export earnings, Bangladesh Bank (BB) has announced a comprehensive package of export incentives and cash assistance across 43 different sectors.

The Foreign Exchange Policy Department-1 on Monday issued a circular detailing the rates applicable for the 2025-2026 fiscal year.

The newly announced rates will apply to goods shipped between January 1, 2026, and June 30, 2026.

The primary objective of this initiative is to encourage growth in the country’s export trade.

According to the circular, applications for cash assistance must undergo audit by external auditors, following established guidelines.

This maximum 10% rate is allocated to sectors including diversified jute products, leather goods, processed agricultural products, potatoes, light engineering products, and 100% halal meat.

Software and IT-Enabled Services (ITES) exports are eligible for a 6% incentive, while individual freelancers in these sectors will receive 2.50%.

Local textile industries will receive 1.50% alternative cash assistance in lieu of duty drawback or bonded warehouse facilities.

Notably, exporters targeting the Eurozone will receive an additional 0.50%. Small and medium-sized enterprises (SMEs) in the garment sector are eligible for a 3.00% incentive.

Pharmaceutical products, motorcycles, photovoltaic modules, and ceramics are slated to receive 6%.

Accumulator batteries (HS codes 8507.10 and 8507.20) are granted a high incentive of 10%.

Bicycles and cement exports are set at 3.00%, while the tea industry will receive 2.00%.

The policy has also extended to institutions located in specialized zones. Entities within the Bangladesh Economic Zones Authority (BEZA), Bangladesh Export Processing Zones Authority (BEPZA), and High-Tech Parks are eligible for incentives ranging from 0.50% to 2.00%, depending on the category of the goods and the nature of the industry.

This initiative reflects the government’s continued commitment to diversifying the export basket and maintaining competitiveness in the global market.

Bangladesh Bank announced plans to issue the ‘Bangladesh Government Special Sukuk-1’, a Shariah-compliant bond worth Tk 100 billion (Tk 10,000 crore), to finance selected national infrastructure and welfare projects.Financial planning tools

The decision was finalised after meetings held last week by the central bank’s Shariah Advisory Committee under the Debt Management Department, which were presided over by Bangladesh Bank Deputy Governor Dr Md Kabir Ahmed.

According to the central bank, the Sukuk will have a tenure of 10 years and carry an annual profit rate of 9.75 percent.

The bond will be issued based on the ‘Ijarah’ (leasing) method, a Shariah-compliant financing structure approved by the committee.

Proceeds from the issuance will support seven housing projects for government employees constructed by the Public Works Department.

Besides, the funds will be used for specific rail services operated under Bangladesh Railway, underscoring the government’s focus on both housing and transport infrastructure.

The ‘Special Sukuk-1’ is scheduled for issuance on January 14, 2026, through a private placement in favour of Sammilito Islamic Bank PLC.

The Sukuk represents part of Bangladesh’s ongoing efforts to leverage Shariah-compliant financing instruments to fund public projects while providing investors with profit-generating opportunities that align with Islamic finance principles.

The National Economic Council (NEC) on Monday approved Revised Annual Development Programme(ADP) for the fiscal year 2025–26 with a total size of Tk 2.08935 trillion, marking a reduction from the original allocation amid resource constraints and macroeconomic considerations.

The decision was made at an NEC meeting held at the NEC Conference Room chaired by Chief Adviser and NEC Chairperson Prof Muhammad Yunus.

Under the revised plan, Tk 2.0 trillion has been allocated for ministries and divisions while projects of autonomous bodies and corporations bring the total revised ADP size to Tk 2.08,935 trillion.

Of the Tk 2.0 trillion, Tk 1.28 trillion will come from domestic sources and Tk 720 billion from foreign financing.

Compared to the original ADP, the revised programme reflects a cut of Tk 160 billion from domestic sources and Tk 140 billion from foreign financing, totaling a reduction of Tk 300 billion.
Autonomous bodies and corporations have been allocated Tk 89.3553 billion, mostly from domestic sources.

The revised ADP covers 1,330 projects including 1,108 investment projects, 35 feasibility studies, 121 technical assistance projects, and 66 projects implemented by autonomous bodies and corporations using their own funds.

Among these, 286 projects are scheduled for completion by June 30, 2026.

The programme also includes 170 projects funded by the Climate Change Trust Fund.

Sectoral priorities under the revised ADP are transport and communication, power and energy, housing and community facilities, education, and local government and rural development, which together account for Tk 1.21118 trillion, or 60.54 per cent of the total allocation.

Among ministries and divisions, the highest allocations have gone to the Local Government Division followed by the Road Transport and Highways Division and the Power Division.

Other major recipients include the Ministry of Science and Technology, Ministry of Water Resources, Ministry of Primary and Mass Education, Secondary and Higher Education Division, Ministry of Shipping, Bridges Division, and Ministry of Railways.

The revised ADP also incorporates 856 new unapproved projects without allocation, 157 unapproved projects to facilitate foreign assistance, 35 new projects under agency self-financing, and 81 Public-Private Partnership projects.

Officials said the revised programme is expected to boost economic activities, accelerate GDP growth, generate employment, enhance education and healthcare, support human resource development, achieve food self-sufficiency, and contribute to poverty alleviation and overall socio-economic development.

The NEC meeting was attended by Planning Adviser, Advisory Council members, Cabinet Secretary, Principal Secretary to the Chief Adviser, Bangladesh Bank Governor, Planning Commission members, and senior secretaries from various ministries and divisions.

Gold broke through $4,600/ounce for the first time on Monday, while silver also hit a record high, as investors snapped up safe-haven assets amid heightened geopolitical uncertainties and a criminal probe into Federal Reserve Chair Jerome Powell.

Spot gold jumped 1.7 percent to $4,584.74 per ounce by 0752 GMT. Bullion hit a record high of $4,600.33 earlier in the day. US gold futures for February delivery added 2.1 percent to $4,595.30.

“So, between events in Iran, and potential US involvement, and the (Fed) chair being the focus of a criminal probe... US futures turned lower on the Powell news, which was a green light for gold to take a run higher,” said Tim Waterer, KCM Trade’s chief market analyst.

Unrest in Iran has killed more than 500 people, a rights group said on Sunday, as Tehran threatened to target US military bases if President Donald Trump carries out his renewed threats to strike the country on behalf of protesters.

Iran’s unrest comes as Trump flexes US muscles internationally, having ousted Venezuelan President Nicolas Maduro, and discussing annexing Greenland by force or by purchasing the island.

Powell said on Sunday the Trump administration had threatened him with a criminal indictment over Congressional testimony, an action the Fed Chair called a “pretext” to further pressure the central bank into lowering rates. This sent the dollar and US equity futures lower.

Though Goldman Sachs pushed back its forecast for Fed rate cuts on Sunday, it is now expecting two 25-basis-point reductions in June and September 2026 instead of the earlier anticipated moves in March and June.

Non-yielding assets tend to do well in a low-interest-rate environment and during geopolitical or economic uncertainties.

“If things remain as they are, I think (silver) prices will be soon pushing towards $90/oz... while there is still policy uncertainty and now there are some restrictions from China of which we are (yet) to see the impact,” said ANZ commodity strategist Soni Kumari.

Oil prices are likely to drift lower this year as a wave of supply creates a market surplus, although geopolitical risks tied to Russia, Venezuela and Iran will continue to drive volatility, Goldman Sachs said in a note on Sunday.

The investment bank maintained its 2026 average price forecasts of $56/$52 per barrel for Brent/WTI, and expects Brent/WTI prices to bottom at $54/50 in the last quarter as OECD inventories build up.

"Rising global oil stocks and our forecast of a 2.3mb/d surplus in 2026 suggest that rebalancing the market likely requires lower oil prices in 2026 to slow down non-OPEC supply growth and support solid demand growth, barring large supply disruptions or OPEC production cuts," Goldman Sachs said.

Brent crude futures were trading around $63 a barrel, as of 0412 GMT, while US West Texas Intermediate crude holds ground at $59. Last year, both the benchmarks posted their worst annual performance since 2020, with an almost 20 percent decline.

US policymakers' focus on strong energy supply and relatively low oil prices will keep sustained oil price upside in check ahead of the midterms, analysts at the bank noted.

Prices are expected to gradually start recovering in 2027, with the market returning to a deficit as non-OPEC supply slows down and solid demand growth continues, Goldman analysts said in a note.
The investment bank expects Brent/WTI to average at $58/54 in 2027, although $5 lower than its prior estimate, citing upgrades to 2027 supply in the US, Venezuela and Russia by 0.3, 0.4 and 0.5mb/d, respectively.

Goldman said it expects a substantial price recovery later this decade as demand grows through 2040 after years of low long-cycle investment, with 2030–2035 Brent/WTI prices averaging $75/$71, $5 below its previous estimate.

Risks to the price forecasts are skewed modestly to the downside given a further increase in non-OPEC supply, Goldman said, adding that it expects no OPEC production cuts, despite geopolitical risks and low speculative positioning.

"We still recommend investors short the 2026Q3-Dec2028 Brent time-spread to express the 2026 surplus view, and oil producers hedge 2026 price downside."

The stock market closed mixed on Monday as the benchmark index of the Dhaka Stock Exchange (DSE) edged up marginally, while the Chittagong Stock Exchange (CSE) ended lower amid broad-based price declines.

Despite remaining under pressure for most of the session, the DSE’s key index DSEX managed to close 2 points higher, UNB reports.

Among the other indices, the Shariah-based DSES remained unchanged, while the blue-chip DS30 gained 1 point.

Market breadth, however, stayed negative on the DSE, with prices falling for 175 companies against gains for 140, while 78 issues remained unchanged.

The turnover on the premier bourse declined by Tk 6 crore to Tk 352 crore, down from Tk 412 crore in the previous session.

In the block market, shares of 20 companies worth Tk 13 crore were traded, with Fine Foods Limited accounting for the highest turnover of Tk 4 crore.

Chartered Life Insurance PLC topped the DSE gainers’ list after its share price rose 7 percent, while Premier Leasing and Finance Limited plunged 10 percent to become the worst performer of the day.Financial planning tools

The CSE extended its losing streak for a second consecutive session, with the All Share Price Index (CASPI) shedding 20 points.

Most stocks closed lower on the port city bourse as prices declined for 83 companies, rose for 43, and remained unchanged for 19.

The turnover on the CSE, however, increased to Tk 7 crore from Tk 4 crore a day earlier.

S. Alam Cold Rolled Steels Limited topped the CSE gainers with a 10 percent rise, while FAS Finance and Investment Limited ended at the bottom of the chart, losing 10 percent.

The Bangladesh Bank (BB) has been recommended as the licensing authority for microcredit banks by the technical committee working on the draft ordinance containing regulations for these institutions.

The draft Microcredit Bank Ordinance 2025, unveiled by the Financial Institutions Division (FID), had named the Microcredit Regulatory Authority (MRA) as the licensing body.

However, industry leaders opposed the proposal, warning that it would create a dual licensing system with BB being the regulator for banking institutions in general.

The Daily Star has seen the recommendations by the review panel.

It also recommended doubling the minimum paid-up capital requirement for a microcredit bank to Tk 200 crore and authorised capital to Tk 500 crore from the previous Tk 300 crore.

Changes were proposed in board composition as well. The original draft suggested three directors from borrower-shareholders, three from other shareholders, and the managing director as a board member.

The review committee recommended a new structure with four borrower-shareholder directors, three from other shareholders, two independent directors nominated by the licensing authority, and a non-voting managing director.

The Bangladesh Bank will also have the authority to remove directors or reconstruct the entire board – powers not included in the original draft.

Another key change concerns liquidation. Liquidation of microcredit banks will now follow the provisions of the Bank Company Act, reversing the draft’s proposal that excluded them from this law.

The review comes following debates over licensing authority, profit motives, and other governance issues, prompting the government to form an eleven-member technical review committee led by Sayed Kutub, additional secretary of the FID.

The original draft had envisioned microcredit banks combining the outreach of microfinance organisations with commercial banking services, offering products ranging from savings accounts to agricultural loans without requiring collateral.

It proposed that microfinance banks would operate as social institutions, prioritising support for new entrepreneurs and providing loans either in cash or other forms for a wide range of economic activities.

President Donald Trump said on Monday any country that does business with Iran will face a tariff rate of 25% on trade with the US, as Washington weighs a response to the situation in Iran which is seeing its biggest anti-government protests in years.

"Effective immediately, any Country doing business with the Islamic Republic of Iran will pay a Tariff of 25% on any and all business being done with the United States of America," Trump said in a post on Truth Social.

Tariffs are paid by US importers of goods from those countries. Iran has been heavily sanctioned by Washington for years.

"This Order is final and conclusive," Trump said without providing any further detail. Top export destinations for Iranian goods include China, the United Arab Emirates and India.

There was no official documentation from the White House of the policy on its website, nor information about the legal authority Trump would use to impose the tariffs, or whether they would be aimed at all of Iran's trading partners. The White House did not respond to a request for comment.

Iran, which had a 12-day war with US ally Israel last year and whose nuclear facilities the US military bombed in June, is seeing its biggest anti-government demonstrations in years.

Trump has said the US may meet Iranian officials and that he was in contact with Iran's opposition, while piling pressure on its leaders, including threatening military action.

Tehran said on Monday it was keeping communication channels with Washington open as Trump considered how to respond to the situation in Iran, which has posed one of the gravest tests of clerical rule in the country since the Islamic Revolution in 1979.

Demonstrations evolved from complaints about dire economic hardships to defiant calls for the fall of the deeply entrenched clerical establishment. US-based rights group HRANA said it had verified the deaths of 599 people – 510 protesters and 89 security personnel – since the protests began on 28 December.

While air strikes were one of many alternatives open to Trump, "diplomacy is always the first option for the president," White House press secretary Karoline Leavitt said on Monday.

During the course of his second term in office, Trump has often threatened and imposed tariffs on other countries over their ties with US adversaries and over trade policies that he has described as unfair to Washington.

Trump's trade policy is under legal pressure as the US Supreme Court is considering striking down a broad swathe of Trump's existing tariffs.

Iran, a member of the OPEC oil producers group, exported products to 147 trading partners in 2022, according to World Bank's most recent data.

US President Donald Trump on Monday announced a 25 percent tariff on any country trading with Iran, ramping up pressure on Tehran over its violent crackdown on a wave of protests.

"Effective immediately, any Country doing business with the Islamic Republic of Iran will pay a Tariff of 25% on any and all business being done with the United States of America. This Order is final and conclusive," Trump said on Truth Social.

Iran's main trading partners are China, Turkey, the United Arab Emirates and Iraq, according to the economic database Trading Economics.

The tariffs announcement comes as Trump mulls possible military action against Iran over the protests. Rights groups have reported a growing death toll.

"Air strikes would be one of the many, many options that are on the table," White House Press Secretary Karoline Leavitt said earlier Monday.

But she said Iran also had a diplomatic channel open to Trump's special envoy Steve Witkoff, adding that Iran was taking a "far different tone" in private than it was in its public statements.

A Japanese mining ship departed on Monday for a remote coral atoll to probe mud rich in rare earths, part of Tokyo's drive to curb its reliance on China for critical minerals as Beijing tightens supply.

The month-long mission of the test vessel Chikyu near Minamitori Island some 1,900 km (1,200 miles) southeast of Tokyo, will mark the world's first attempt to continuously lift rare-earth seabed sludge from 6 km (4 miles) deep onto a ship.

Japan, like its Western allies, has been reducing its dependence on China for the minerals vital to the production of cars, smartphones and military equipment, an effort that has taken on urgency amid a major diplomatic dispute with Beijing.

"After seven years of steady preparation, we can finally begin the confirmation tests. It's deeply moving," Shoichi Ishii, the head of the government-backed project told Reuters, as the vessel departed the port city of Shizuoka on a bright sunny day, with a snow-capped Mount Fuji in the background.

"If this project succeeds, it will be of great significance in diversifying Japan's rare earth resource procurement," he said, adding that recovering the key minerals from 6 km below sea level would be a major technological achievement.

The vessel, with 130 crew and researchers, is scheduled to return to the port on 14 February.

Reducing reliance on China won't be easy

Last week, China banned exports of items destined for Japan's military that have civilian and military uses, including some critical minerals. The Wall Street Journal reported Beijing has also begun restricting rare-earth exports to Japan more broadly.

Japan has condemned China's dual-use ban but declined to comment on the report of a broader ban, which China has not confirmed or denied. Chinese state media, though, have said Beijing was weighing the measure.

Finance ministers from the Group of Seven industrial powers will discuss rare-earth supplies at a meeting in Washington on Monday, sources familiar with the matter told Reuters.

Japan is no stranger to facing China's wrath over rare earths. In 2010, China held back exports following an incident near disputed islands in the East China Sea.

Since then, Japan has reduced its reliance on China to 60% from 90% by investing in overseas projects like trading house Sojitz's tie-up with Australia's Lynas Rare Earths, and promoting rare-earths recycling and manufacturing processes that rely less on the minerals.

The Minamitori Island project, however, is the first to attempt to source rare earths domestically.

"The fundamental solution is to be able to produce rare earths inside Japan," said Takahide Kiuchi, executive economist at Nomura Research Institute.

"If this new round of export controls ends up covering a lot of rare earths, Japanese companies will again make efforts to move away from China, but I don't think it will be easy," he said.

For some heavy rare earths, such as those used for magnets in electric- and hybrid-vehicle motors, Japan is almost totally dependent on China, analysts say — a major risk for its key automotive industry.

Long-term project

Since the 2010 scare, the Japanese government and private companies have built stockpiles of the minerals, though they do not disclose volumes.

At a New Year's party for Japan's mining industry on Wednesday, several executives said they were better prepared than before to cope with the potential disruption, citing Japan's diversification efforts and stockpiles.

But Kazumi Nishikawa, principal director of economic security at the trade ministry, said the government had to continually remind companies to diversify their supply chains.

"Sometimes, you know, some event happened, then the business reacts, but the event finishes, the business forgets. We have to maintain continuous efforts," Nishikawa said on the China Talk podcast this week.

The Minamitori Island project, into which the government has sunk 40 billion yen ($250 million) since 2018, is also a long-term play.

Its estimated reserves have not been disclosed and no production target has been set. But if it succeeds, a full-scale mining trial will be conducted in February 2027.

Mining the mud was previously viewed as uneconomical due to high costs. But if supply disruption from China continues and buyers become willing to pay higher prices, the project could become viable in coming years, said Kotaro Shimizu, principal analyst at Mitsubishi UFJ Research and Consulting.

China is keeping a close watch. When the ship was conducting surveys around the island in June last year, a fleet of Chinese naval ships sailed nearby, Ishii said.

"We feel a strong sense of crisis that such intimidating actions were taken," he said. China said its actions were in line with international law and called on Japan to "refrain from hyping up threats".

Health and education sectors have taken the major brunt of a sizeable cut in the current development budget halfway through the fiscal year.

The ongoing Annual Development Programme (ADP) outlay for the fiscal year 2025-26 has been cut by 13.04 per cent to Tk 2.0 trillion.

With Chief Adviser Professor Muhammad Yunus in the chair, the National Economic Council (NEC) in its meeting Monday endorsed the pared-down RADP.

The size of the RADP has been reduced by Tk 300 billion from the original ADP allocation of Tk 2.30 trillion, Planning Adviser Professor Wahiduddin Mahmud told journalists.

In the trimming meant to make two ends meet, the health sector emerged as the hardest hit by the fiscal tightening. The government has withdrawn approximately Tk 134.29 billion from the original allocation, representing a staggering 73-percent cut.

The allocation for healthcare services plummeted from an original Tk 181.48 billion to a mere Tk 47.18 billion in the RADP following the deepest cut.

Health Services Division saw its budget slashed by 73 per cent while Health Education and Family Welfare Division faced a 77-percent reduction.

Major initiatives like the establishment of cancer, kidney, and heart-treatment centres in eight divisional cities and the construction of 500-bed medical college hospitals in Jashore, Cox's Bazar and Pabna may face delays or downsizing, Planning Commission officials said.

They cited "poor implementation capacity" and a "shortage of projects" as the primary reasons for withdrawing over Tk 130 billion from the sector.

Another priority sector, education, is not spared, too. Its development budget slashed by approximately 35 per cent or roughly Tk 100 billion, bringing the final figure down to about Tk 185 billion. Secondary and higher education specifically witnessed a 55-percent cut.

Prof Mahmud explains the budgetary arithmetic that determines the revised allocations. "Health and education sectors have been passing through a transition from the sectoral development-programme approach to project-based approach."

Furthermore, transport and communications sector-traditionally the highest recipient of funds-saw a 35-percent reduction. A notable feature here is the Airport-Kamalapur MRT Line-1 project faced a drastic 90-percent cut after implementing agencies failed to submit fund demand.

The highest government economic body approved cut in the allocations from government funds by Tk 160 billion (11.11 per cent) while foreign loans and grants by Tk 140 billion or 16.27 per cent.

Government funding has been reduced from Tk1.44 billion to Tk1.28 billion (64 per cent), while allocations from foreign loans and grants have been cut from Tk 860 billion to Tk720 billion (36 per cent).

Officials at the commission say demands from ministries and divisions are also lower in the revised ADP.

According to officials, the lower RADP demand is mainly due to slow implementation during the current fiscal year that witnesses spillover impacts of political upheavals surrounding the upsurge and election frays.

They say many projects are progressing slowly because of the absence of project directors and delays in appointing new ones.

The government is also reviewing several large projects, which has led to reduced allocation demands for many projects.

Additionally, as the current year is an election year, ministries and divisions have shown relatively lower demand for allocations.

According to Planning Commission data, the transport and communications sector has received the highest allocation of Tk385.09 billion, or 19.25 per cent of the total RADP.

Power and energy sector received the second-highest allocation of Tk 261.86 billion, or 13.09 per cent of the total RADP allocations.

Other major allocations include housing and community amenities with Tk227.30 billion (11.36 per cent) education with Tk 185.50 billion (9.27 per cent), and local government and rural development with Tk 15143 billion (7.57 per cent).

Social-protection sector has also faced a substantial fund cut. While Tk 20.18 billion was allocated in the original ADP, the RADP reduced the sum by 73 per cent to Tk 5.45 billion.

Planning Commission sources say allocations to the power sector have been reduced by 19 per cent, while the agriculture sector has seen a 21 per cent cut.

Among ministries and divisions, the Local Government Division (LGD) received the highest allocation, amounting to Tk375.34 billion, or 18.77 per cent of the total RADP. Its allocation is 4.0-percent lower than in the original ADP.

The Road Transport and Highways Division received the second-highest allocation of Tk 199.49 billion (9.97 per cent), although allocation got reduced by 38 per cent compared to the original ADP.

Power Division ranks third, with an allocation of Tk148.96 billion (7.45 per cent), reflecting a 27-percent reduction from the original ADP.

The Ministry of Science and Technology has received Tk120.29 billion (6.0 per cent), followed by the Ministry of Water Resources with Tk 105.32 billion, the Ministry of Primary and Mass Education with Tk 80.54 billion, and the Secondary and Higher Education Division with Tk61.90 billion.

A total of Tk 301.59 billion has been allocated under development assistance for special needs.

In addition, Tk 31 billion has been allocated for five development-assistance items under the Local Government Division, Tk5.30 billion for the Ministry of Chittagong Hill Tracts Affairs and Tk1.00 billion for special areas.

Besides, the NEC allocated Tk 89.35 billion for projects implemented by autonomous bodies and corporations through their own financing. Including these self-financed projects, the total size of the RADP stands at Tk 2.089 trillion.

The revised development budget holds a total of 1,330 projects, including 1,108 investment projects, 35 feasibility studies, 121 technical-assistance projects and 66 self-financed projects.

Planning officials say the revised ADP includes 664 new unapproved projects for implementation with government financing, 157 new unapproved projects aimed at facilitating foreign financing and 35 projects to be implemented by autonomous bodies or corporations through their own financing.

A total of 286 projects have been earmarked for completion under the RADP.

The Bangladesh Bank has doubled the licence renewal fee for money changers to Tk10,000 from the existing Tk5,000.

The central bank issued a circular through its Foreign Exchange and Policy Department on Monday (12 January), sending it to all authorised dealers and licensed money changers in the country.

The directive for the revised fee will take effect from 15 January.

A Bangladesh Bank official said the licence renewal fee for money changers had remained unchanged at Tk5,000 since 2002.

In view of rising prices and inflation in the country, the fee has now been increased to ensure consistency.

Money changers are required to renew their licences once a year.

Bangladesh Bank has purchased $700 million from commercial banks through auctions during the first 12 days of January this year, as part of its ongoing intervention in the foreign exchange market.

The central bank's spokesperson and Executive Director Arief Hossain Khan confirmed the development today (12 January).

Bangladesh Bank bought $81 million from 10 commercial banks at an exchange rate of Tk122.30 per dollar today. With this latest purchase, the central bank's total dollar purchases from commercial banks in the current fiscal year have reached $3.83 billion.

As part of its strategy to intervene in the foreign exchange market, Bangladesh Bank began buying dollars through auctions in July last year.

Under the market-based exchange rate system, the central bank's goal is to maintain balance in the foreign exchange market, allowing the dollar price to fall when supply exceeds demand, and permitting prices to rise when demand increases, according to officials.

Bankers said there are several reasons for the recent decline in dollar demand. With the government's large foreign payment obligations falling, demand for foreign currency has decreased. At the same time, sluggish business activity and weaker investment have reduced imports of capital machinery.

Bearing the brunt of reduced business and mounting losses, Miracle Industries, a listed company in the miscellaneous sector, has failed to make a turnaround in operations and profitability in the first half of the current fiscal year.

The company remained in the red during the July-December period, posting a loss of Tk4.86 crore, according to a disclosure published on the stock exchanges' website yesterday. It said a further fall in selling prices, coupled with higher interest expenses, kept the company in a loss-making position.

According to the revised disclosure, Miracle Industries posted a loss per share of Tk1.38 for the July-December period, widening from Tk0.99 in the same period of the previous fiscal year. Its net operating cash flow per share stood at negative Tk0.13, an improvement from negative Tk1.49 in the July to December period of 2024.

However, in its initially published disclosure, the company reported a loss per share of Tk0.61 for the first half, compared with a loss per share of Tk0.14 in the same period of the previous fiscal year.

In September last year, Miracle Industries secured a business deal with Bangladesh Chemical Industries Corporation (BCIC), under which the state-run corporation will purchase 50% of its total requirement of woven polypropylene (WPP) and polyethylene (PE) bags from the company.

At the time, the company expected its revenue to double from these orders and positively impact its net profit. BCIC remains the company's main buyer.

Founded in 1995 as a joint venture between state-owned BCIC and four entrepreneurs, Miracle Industries manufactures bags used for cement, fertiliser, salt, feed, sugar, food grains and chemicals.

The company operates two manufacturing units in Sreepur and Gazipur – one catering to the local market and the other producing for export.

Stocks on the Dhaka Stock Exchange (DSE) ended marginally higher today, though trading activity weakened as turnover fell sharply, reflecting continued caution among investors amid lingering market uncertainties.

The benchmark DSEX inched up by just 2 points, or 0.04%, to close at 4,942, while the blue-chip DS30 index gained 1.54 points to settle at 1,897.

Despite the slight rise in indices, market breadth remained negative, with 175 issues declining against 140 advancing, while 78 securities closed unchanged.

Total turnover dropped by around 15% from the previous session to Tk352 crore, snapping a six-day streak of trading above the Tk400 crore mark. Market participants said investors largely stayed on the sidelines, opting for selective buying in a few stocks while booking profits in others, resulting in subdued trading momentum.

Trading activity was concentrated in a handful of stocks, with Orion Infusion, City Bank, Dominage Steel, Square Pharmaceuticals and Fine Foods emerging as the top turnover leaders during the session.

Sector-wise performance was mixed, reflecting the lack of clear direction in the market. The pharmaceutical sector led the gainers, rising 0.33%, supported by selective buying in heavyweight stocks.

Banking shares also posted modest gains of 0.29%, while food and allied industries advanced 0.23%. Fuel and power stocks edged up slightly by 0.04%.

On the losing side, non-bank financial institutions continued to face selling pressure, with the sector shedding 0.31%. Telecommunication stocks fell 0.38%, while the engineering sector posted the steepest decline of the day, dropping 0.45%.

Volatility remained pronounced among individual stocks, particularly in the financial sector.

Shares of Peoples Leasing topped the gainers' list, surging more than 10%, followed by Regent Textile, Chartered Life Insurance and Tung Hai Knitting.

However, several non-bank financial institutions suffered sharp losses, with Premier Leasing and Prime Finance hitting the floor price limit. International Leasing, Fareast Finance and Bangladesh Industrial Finance Company also closed sharply lower.

The Chittagong Stock Exchange mirrored the cautious tone, ending the session in the red. The CSCX index slipped 10 points to 8,568, while the CASPI dropped 20 points to close at 13,857. Turnover on the port city bourse stood at Tk7.79 crore.