For generations, Bangladeshis began their mornings at wet markets, checking hilsa by the gills, poking gourds for tenderness and haggling over banana blossoms before heading home with heavy bags.

But rapid urbanisation and changing lifestyles have altered that routine. Few city dwellers now have time for early market trips, and many are no longer confident about selecting fresh fish.

Around 25 years ago, the country’s first superstores arrived to serve urban shoppers.

Over the years, modern retail followed a similar model across different chains, focusing on quality products, fresh groceries and convenience. With this recipe, the sector’s share of the wider market has remained at about 3 percent, or Tk 20,000 crore, over the past two and a half decades.

However, following a sales boost during the pandemic and the recent withdrawal of the additional value-added tax (VAT) on superstore purchases, more local and foreign firms are competing for a share of the retail segment with an estimated growth of 20 percent annually.

Unlike earlier models, many new entrants are adopting different approaches. For instance, Fresh Super Mart, a new brand from Meghna Group of Industries, has been opening stores at metro rail stations in Dhaka.

Like modern cities such as Tokyo and London, Fresh Mart says it is following footfall patterns rather than opening outlets only in residential neighbourhoods.

Currently, there are 30 major superstore brands in the country, according to the Bangladesh Supermarket Owners Association.

The sector basically started in the major cities, but franchise models from ACI’s Shwapno and Pran Group’s Daily Shopping have pushed it into some upazila towns.

Many urban consumers now buy monthly groceries, including rice, vegetables, fish, meat and household goods, from superstores. However, most still combine supermarket visits with traditional wet market shopping, especially for fresh produce.

Roksana Afroz, a resident of Dhaka’s Badda area, said she mainly buys products that are easier to find in superstores than in local shops. “In grocery stores, there is usually a limited variety of packaged goods and the brands are limited to a few specific ones. However, super shops make a wider range of products easily available.”

“Since I do not have to pay extra VAT, I can buy products at the same price, and sometimes even get discounts. In some cases, certain vegetables are also cheaper than in the market, and there is no hassle of bargaining,” she added.

She also said imported goods offer added assurance in superstores. “Additionally, for imported products, the importer’s seal ensures confidence and allows for safe purchases.”

Shahjahan Ali, a resident of Mirpur in Dhaka, said he uses both superstores and kitchen markets depending on need. He said superstores offer more stable pricing.

As an example, he said edible oil prices recently increased by Tk 10 to Tk 20 per litre in the open market without notice, while superstores continued selling at earlier rates.

He added that superstores save time as most essentials are available under one roof. However, he still prefers traditional markets for vegetables and leafy greens.

PROMISE OF CONVENIENCE, QUALITY AT THE CENTRE

The country’s first retail chain, Agora, was established in 2001 by Rahimafrooz Superstores Ltd. Its tagline was “Quality you can trust”.

A year later, Gemcon Group launched Meena Bazar, promising freshness to everyday life.

Shwapno, now the market leader with 902 outlets and a 53 percent share of modern retail, was launched by ACI in 2008. Its slogan is “best shopping with your hard-earned money”.

Pran introduced Daily Shopping in 2014, focusing on convenience. Since then, the sector has expanded steadily, with new outlets opening regularly.

During the pandemic, supermarket sales received an additional boost as online delivery services gained popularity.

Sabbir Hasan Nasir, managing director of Shwapno, said most consumers in Bangladesh prefer to shop close to home. Therefore, the company follows a neighbourhood-based model through multiple retail formats.

Nasir said Shwapno has expanded from 37 outlets in 2012 to 902 outlets at present, with rapid growth after the Covid pandemic.

Pran’s Daily Shopping began in January 2014 with just seven outlets and 30 employees in Dhaka. Initial investment stood at about Tk 1 crore, said Firoj Alam, general manager of Daily Shopping.

The chain has now expanded to 112 outlets and plans to open about 35 more.

Alam said the growth shows changing consumer habits. The company now employs about 1,000 people, with total investment rising to around Tk 90 crore.

He said superstore usage has increased from less than 1 percent of the population to about 3 percent, and could rise to 6 percent as incomes grow and habits change.

Pricing transparency is one of the key reasons customers choose superstores, according to Alam.

“Another advantage is customers enjoying greater freedom. In traditional wet markets, vendors select products for buyers, but in superstores, customers can personally choose and inspect the products they want,” he said.

He added that the removal of the 5 percent value added tax on superstore purchases has made organised retail more competitive and accessible.

Shameem Ahmed Jaigirder, chief operating officer at Meena Bazar, said they wanted to build a direct and sustainable link between small farmers and consumers.

“We still want to empower farmers by ensuring fair value for their produce while delivering fresher and safer products to customers. Our ‘Back to Root’ initiative shows our long-term commitment to strengthening local agriculture and building a more transparent food supply chain,” he said.

GROWING MARKET DRAWS FOREIGN INVESTMENT

As modern retail gains popularity, foreign firms are taking notice, either through joint ventures with local brands or by opening outlets directly.

This year, Shwapno has signed a partnership with Japan’s Mitsui & Co Ltd. The partnership is meant for reducing financing costs and improving services.

Separately, Indonesian retail giant Alfamart entered Bangladesh in October 2025. In a joint venture with Kazi Farms Group, it launched a chain of compact superstores targeting urban and semi-urban consumers.

Japan’s Mitsubishi Corporation is one of Alfamart’s existing shareholders. The first phase of the project involves foreign investment of $50 million, followed by a further $70 million in a second phase.

“So far, we have opened one store in Gulshan and another in Uttara,” said Kazi Zahin Hasan, director of Kazi Farms Group.

Firoj Alam of Daily Shopping said rising competition from local and international brands is a positive development. “We see this competition positively because it prevents monopolies, encourages service improvement, and gives customers better choices in terms of quality and pricing,” he said.

MEGHNA NOW OPENING STORES BY RAIL TRACKS

As competition intensifies, retailers are rethinking how and where they operate. Instead of waiting for shoppers, many are moving closer to high-footfall urban spaces.

Under an agreement with the Dhaka Mass Transit Company Limited, Meghna Group Industries (MGI) will run nine Fresh Super Mart outlets at metro stations for five years from January 2026.

The locations include Motijheel, Bangladesh Secretariat, Dhaka University, Mirpur 10, Mirpur 11, Pallabi, Uttara Centre and Uttara North stations.

Tanveer Ahmed Mostofa, director of Meghna Group Industries, said the stores will offer a modern retail environment focused on daily essentials, including dairy, frozen foods, groceries, household items, health and beauty products, café items, ready-to-eat food and over-the-counter pharmacy goods.

He said metro stations have become key retail points due to heavy commuter traffic. “Thousands of commuters pass through daily, often needing quick purchases.”

Mostofa said that MGI wants to build a neighbourhood-style retail experience rather than large destination supermarkets.

“We are not building a destination superstore. We are creating a network of small-format stores suited to how the city moves today; quick breakfast and coffee on the way in, essentials on the way home, and a familiar face at the counter,” he said.

The group already runs four outlets at Tejgaon, Meghnaghat and the Meghna Industrial Zone, with another planned at its Gulshan office.

Meghna data shows outlets at Dhaka University and Mirpur 10 are showing promising sales.

Md Deen Islam, in-charge of the Dhaka University metro station outlet, said the store carries about 30 product categories and has seen consistent sales since opening.

He said there are two peak periods each day. The first runs from 8am to 12pm, driven by office workers, students and commuters. The second runs from 4pm to 8pm, as people return home.

Islam added that the outlet has developed a base of repeat customers, particularly for snacks, desserts and ready-to-eat items. “A significant portion of our customer base, nearly 40 percent, consists of Dhaka University students, which reflects the strong connection between the outlet and the campus community,” he said.

Fitch Ratings has revised its outlook on Bangladesh to “negative” from “stable”, citing rising external financing pressures and macroeconomic vulnerabilities linked to exposure to the Middle East conflict.

The global ratings agency kept Bangladesh’s long-term foreign-currency issuer default rating (IDR), which measures the ability to service foreign-currency-denominated debt over time, unchanged at B+.

“The Middle East conflict creates significant downside risks, particularly through the supply and cost of energy imports and remittances,” Fitch said in a statement yesterday.

Nearly half of the country’s remittances come from the Middle East, while crude oil and petroleum products together account for almost 15 percent of imports, worth about $10 billion in 2025.

“Strong remittances so far in financial year 2026 provide near-term support to external finances; however, uncertainty regarding the conflict’s duration poses substantial downside risks,” said Fitch, an American-British credit rating agency.

In July 2025, S&P Global, another member of the “Big Three” global credit rating agencies, said Bangladesh’s long-term outlook was stable and kept the country’s foreign and local currency sovereign credit ratings at B+.

Fitch, which kept its outlook on Bangladesh stable in May last year, said in the latest statement that limited progress in reforms to address weaknesses in the policy framework, public finances and financial sector, along with continued weak institutional governance, would gradually erode the economy’s capacity to absorb shocks.

“The ratings reflect moderate government debt and access to concessional external financing, balanced against a still relatively weak external liquidity position, governance standards lower than those of peers, significant financial sector challenges, and lagging structural metrics compared with peers,” Fitch said.

It said Bangladesh has relatively low external buffers, with foreign exchange reserves standing at $29.5 billion in March 2026, equivalent to about four months of external payments.

The agency cautioned that wider current account deficits, stronger domestic demand for foreign currency or reduced external financing due to uncertainty around the IMF programme could renew pressure on the currency and reserves.

“Reform outlook uncertain,” it said, citing rising uncertainty over the new government’s willingness to push through changes.

Fitch said Bangladesh’s low government revenue-to-GDP ratio remains a key fiscal weakness, falling to 7.9 percent in fiscal year 2024-25 from 8.3 percent a year earlier.

Revenue collection is constrained by large tax exemptions, weak tax administration and poor compliance, contributing to wider fiscal deficits. The agency projected a budget deficit of 3.6 percent of GDP by 2027.

“Inflationary pressures are high, due partly to a shortage of essential commodities,” Fitch said, adding that price rises in petroleum and liquefied petroleum gas could fuel inflation further.

The agency expected that overall inflation would remain around 9 percent in fiscal year 2027.

Bangladesh economy is projected to grow by 3.7 percent in FY26 and 3.5 percent in FY27.

“Prolonged high energy prices and rising global uncertainty could further weaken growth. Ready-made garment exports are declining due to redirected orders following reciprocal tariffs, weaker global demand, and higher domestic production costs.”

Fitch said banking sector vulnerabilities remain elevated, particularly among state-owned banks, and warned that the non-performing loans ratio could rise once regulatory forbearance measures are withdrawn, creating contingent liability risks.

“This remains a source of contingent liability if credit stress intensifies.”

The agency expects Bangladesh’s public debt to stabilise at about 38 percent of GDP over the medium term. However, it mentioned that risks remain from potential liabilities in the banking sector, debt of state-owned enterprises and higher borrowing costs.

Fitch also noted that the interest-revenue ratio has been rising and reached about 29 percent, more than double the median of 14 percent as of the end of 2025, adding further pressure on public finances.

Bangladesh’s pharmaceutical industry could face major challenges after graduation from least developed country (LDC) status due to weak research capacity, reliance on imported raw materials, and the possible loss of patent waivers, which could raise medicine prices, according to experts.

“Recent studies have raised concerns about Bangladesh’s pharmaceutical sector ahead of the post-LDC graduation period, particularly its weak research and development capacity,” said Syed Abdul Hamid, professor at the Institute of Health Economics at the University of Dhaka.

He made the remarks yesterday while presenting the keynote at a workshop titled “Strengthening pharmaceutical industry competitiveness and innovation for sustainable growth in the context of LDC graduation”.

The workshop was jointly organised by the Institute of Health Economics, the health ministry and the Asian Development Bank (ADB) at the Pan Pacific Sonargaon Dhaka.

Citing a Centre for Policy Dialogue study, he said that “only 3.4 percent of total investment in the sector goes to research and development,” adding that many firms are more interested in buying patent rights after the TRIPS waiver expires than investing in innovation.

Hamid warned that “medicine prices, especially for patented drugs, could rise sharply once Bangladesh loses the waiver benefits,” as local manufacturers would no longer be able to reverse-engineer patented medicines without licences.

He also said that demand for advanced medicines for cancer, respiratory illnesses and other complex diseases would further intensify the challenge.

He further noted the sector’s heavy dependence on imported active pharmaceutical ingredients (APIs), stressing the need for stronger research and development, closer industry–academia collaboration, implementation of the API Industrial Park, and regulatory reforms.

Rashed Al Mahmud Titumir, finance and planning adviser to the prime minister, said the pharmaceutical industry is “at a critical stage” as the country prepares for LDC graduation and works towards becoming a $1 trillion economy by 2034.

He said the wider economy is facing pressure from high inflation, depreciation of the taka against the US dollar, and a worsening business environment that has slowed production and investment.

“The old model will not work anymore,” he warned, calling for an investment-led growth strategy focused on diversification, productivity and competitiveness.

He also criticised what he called years of “regulatory capture” in the pharmaceutical sector, alleging that powerful business interests have distorted competition and weakened institutions.

“The industry must be a price taker, not a price maker,” he said, stressing the need for an independent regulator and stronger oversight.

Titumir also questioned why global agencies such as the World Health Organization and Unicef still do not procure medicines from Bangladesh. He said the country must strengthen regulatory standards and the Directorate General of Drug Administration to expand access to global markets.

INVESTMENT, STANDARDS AND GROWTH PROSPECTS

Blaire Ng, investment specialist at the ADB, said Bangladesh’s pharmaceutical industry still faces “major challenges”, particularly in research and development, dependence on imported APIs, and compliance with international manufacturing standards.

She said the key question is how Bangladesh can use its existing strengths to ensure sustainable growth after LDC graduation, adding that the country is well-positioned to benefit from global efforts to diversify pharmaceutical supply chains.

She described the sector as one of Bangladesh’s strongest areas for export diversification and industrial upgrading.

“The lesson for Bangladesh is that a crisis can become a critical moment for domestic transformation and stronger research and development capacity,” she said.

She added that the ADB is ready to support Bangladesh through policy reforms, infrastructure development, regulatory support, technical assistance and financing for pharmaceutical projects and companies.

Akhira Matsunaga, officer-in-charge of the ADB, said Bangladesh’s pharmaceutical industry has strong potential to deepen its integration with regional and global markets.

He said continued investment will be crucial during and after LDC graduation, helping Bangladesh benefit from opportunities in industry upgrading, innovation, technology transfer, investment expansion, and production of higher-value pharmaceutical products.

“There is strong potential for Bangladesh’s pharmaceutical sector to develop further into a competitive regional and global industry, while also contributing to broader economic diversification and resilience,” he said.

Sheikh Momena Momi, additional secretary of the WH Wing at the Health Services Division, said she hoped the assessment would help identify needed reforms, improve investment readiness, and strengthen the pharmaceutical sector’s capacity for innovation.

“With coordinated efforts and continued collaboration, Bangladesh’s pharmaceutical industry can strengthen its position in regional and global markets,” she said.

Md Enamul Haque, director general of the Health Economics Unit at the ministry, said Bangladesh spent nearly Tk 39,000 crore on medicines in 2020, which accounted for almost half of total healthcare spending.

He said the highest expenditure was on medicines for musculoskeletal, cardiovascular, and gastrointestinal diseases, and noted that irrational drug use and self-medication remain major concerns.

He warned that medicine costs could rise further after Bangladesh graduates from LDC status, increasing pressure on households that already face high out-of-pocket healthcare expenses.

Bangladesh Bank has reduced the maximum penal interest rate on overdue loans and loan instalments to 0.5 percent from 1.5 percent to support investment and boost productivity amid ongoing global economic challenges.

The central bank issued a circular on this decision yesterday.

Under the revised instruction, if a loan or instalment remains fully or partially overdue for a certain period, banks will be allowed to charge a maximum penal interest of 0.5 percent for the duration of the overdue period.

For running and demand loans, the penal interest may be applied to the entire outstanding amount. For term loans, it will apply only to the overdue instalment. Earlier, banks were allowed to charge up to 1.5 percent penal interest on overdue loans and instalments.

The central bank said the decision was taken in view of the current global economic situation and to encourage investment and improve productivity.

All other instructions will remain unchanged, the circular added. All other instructions will remain unchanged, the circular added. Actions already taken under the previous circular will also remain valid.

The directive came into immediate effect and was issued under Section 29(2)(c) of the Bank Companies Act, 1991.

The government yesterday fixed the price of rawhide to be generated during the upcoming Eid-ul-Azha, with the price of salted cowhide in Dhaka increased by Tk 2 per square foot (sqft) from last year.

The price of salted cowhide in Dhaka have been set at Tk 62 to Tk 67 per square foot, up from last year’s Tk 60 to Tk 65.

Outside Dhaka, the price of cowhide has been fixed at Tk 57 to Tk 62 per square foot, compared to last year’s Tk 55 to Tk 60, according to a statement from the Commerce Ministry.

Commerce Minister Khandakar Abdul Muktadir announced the new rates at a press conference at his secretariat office in Dhaka following a meeting of the committee formed to ensure proper management of Qurbani-related matters.

The prices have increased by Tk 2 per square foot (sqft) compared to last year
The price of salted goat skin has been set at Tk 25 to Tk 30 per square foot, while she-goat skin will cost Tk 22 to Tk 25 per square foot.

The minister also said the government will provide salt worth Tk 17.60 crore free of cost for preserving hides.

Leather preservation activities will be carried out across the country by traders, mosques and madrasas.

He added that the government is working to ensure that no hides are wasted during the upcoming Eid festival.

District and upazila administrations will provide training to representatives of mosques and madrasas so they can properly preserve the hides of sacrificial animals.

Global oil supply will not meet total ‌demand this year as the Iran war wreaks havoc on Middle East oil production, the International Energy Agency said in its monthly oil market report on Wednesday.

The US and Israel’s war with Iran, subsequent damage to Iran and its Gulf neighbours’ oil infrastructure and the effective closure of the Strait of Hormuz ​have caused the largest oil supply crisis in history, sending oil prices skyrocketing.

“Our latest supply and demand estimates imply that the market will remain severely undersupplied through the end of 3Q26, even assuming the conflict ends by early June,” the Paris-based agency said, adding that the second-quarter deficit will be as stark as ​6 million bpd.

The IEA’s base-case forecast is for a gradual resumption of traffic through the strait from the third quarter onwards, it ​said, which could see the market return to a “modest surplus” by the fourth quarter, allowing depleted stocks to begin to rebuild.

Supply losses led to a ‌246 million barrel drawdown in global oil inventories in March and April, the IEA said, which could increase price volatility ahead of the peak summer demand period.

The 32-member IEA coordinated the largest-ever release of 400 million barrels of oil from strategic reserves in March in a bid to calm markets. It said around 164 million barrels of that total has already been released.

Overall global oil supply will fall by around ​3.9 million barrels per day ​across 2026 due to the ⁠war, the agency said, slashing its previous forecast, which had projected a 1.5 million bpd drop.

DEMAND ALSO UNDER PRESSURE FROM WAR

The IEA now sees demand falling by 420,000 bpd this year, compared to a ​previous forecast of an 80,000 bpd drop.

Consumption is also under pressure due to the war as ​price spikes lead ⁠to demand destruction and slower economic growth, it said.

Oil prices were little changed on Wednesday, with Brent futures trading at $106.93 at 0805 GMT, down 84 cents from the previous close and 1 cent higher than their level at 0759 GMT before the report was published.

The IEA said ⁠it will ​publish its first supply and demand forecasts for 2027 in its June report - ​a delay from April caused by the war - while its 2026 annual oil report will be delayed from June 17 with no new date yet set for its ​release.

Later on Wednesday, rival forecaster OPEC will publish its own monthly oil market report.

A US federal appeals court on Tuesday temporarily paused a ruling declaring President Donald Trump's global 10-percent tariffs illegal, granting a government request to suspend the decision pending appeal.

Trump imposed the temporary 10-percent duty in February, shortly after the Supreme Court struck down many of his global tariffs.

On May 7, the US Court of International Trade (CIT) blocked the tariffs from being implemented against two companies and the state of Washington. That decision was to take effect on Tuesday.

The US Court of Appeals for the Federal Circuit on Tuesday issued a brief order that included an administrative stay on the CIT's order, setting a schedule for both sides to file briefs on the matter.

In its motion for a stay, the Trump administration argued that the CIT's decision should be stayed pending the full run of government appeals -- up to the Supreme Court, if necessary.

It argued that if it issued refunds on the 10-percent global tariff, only to have an appeals court uphold its position, it would be unable to pursue economic redress.

"Plaintiffs, conversely, can be made whole through refunds, including interest, if the tariffs are ultimately held unlawful and refundable," the government said.

The court, however, only granted an administrative stay for the period while the court considers the motions for a stay pending appeal.

The Trump administration has said the new tariff was meant to deal with balance-of-payments deficits, citing Section 122 of the Trade Act of 1974.

The 10-percent global tariff under Section 122 is valid until late July unless extended by Congress.

The Trump administration has also been pursuing other means to impose tariffs to replace those struck down by the Supreme Court.

US authorities have opened investigations into dozens of trading partners over forced labor and overcapacity allegations -- which could lead to fresh tariffs or other action.

Trump's sector-specific tariffs on goods like steel, aluminum and autos remain unaffected by these legal challenges.

The Supreme Court's striking down of the majority of Trump's tariffs was a blow to the Republican president, after he made the levies a signature economic policy.

Since the decision, businesses have rushed for refunds.

US Customs and Border Protection (CBP) estimated in March that more than 330,000 importers could be eligible for refunds after the Supreme Court's decision.

The tariffs that were struck down earlier, imposed under the International Emergency Economic Powers Act (IEEPA), collected approximately $166 billion in duties and estimated deposits.

On Tuesday, CNBC reported that businesses had begun to receive refunds, in line with a CBP timeline released earlier this month.

CBP did not immediately respond to an AFP request for comment.

Foreign ministers from the BRICS group of nations, including Iran and Russia, meet in India on Thursday, with the Middle East conflict and related fuel crisis set to dominate discussions.

India, which holds the BRICS chair this year, is hosting the two-day gathering of foreign ministers from the expanded bloc, which now includes Iran and the United Arab Emirates -- countries at odds over the conflict launched by the United States and Israel on February 28.

India's foreign ministry said talks will focus on "global and regional issues of mutual interest", spokesman Randhir Jaiswal told reporters.

Iranian Foreign Minister Seyed Abbas Araghchi arrived in New Delhi late Wednesday, Iran's embassy in India said.

Russian Foreign Minister Sergey Lavrov is also attending. He met his Indian counterpart Subrahmanyam Jaishankar after arriving in New Delhi on Wednesday evening.

Jaishankar said in a statement that their discussions included "trade and investment, energy and connectivity" as well as "global and multilateral issues".

"Our political cooperation is even more valuable in an uncertain and volatile global environment," Jaishankar added.

Disruptions around Gulf shipping routes and the Strait of Hormuz continue to drive volatility in oil and gas markets, increasing pressure on energy-importing economies, including India.

The conflict involving Iran has added strain to India's economy, heavily reliant on Middle Eastern energy supplies and fertiliser imports, and has cast uncertainty over New Delhi's growth outlook.

BRICS was created in 2009 as a forum for major emerging economies seeking greater influence in institutions dominated by Western powers.

The grouping, originally comprising Brazil, Russia, India, China and South Africa, has since expanded, as members sought to boost the bloc's global political and economic influence.

It now includes Egypt, Ethiopia, Iran, Indonesia and the United Arab Emirates, although it remains unclear whether representatives from all member states will attend.

India will hold a leaders' summit later this year, and the foreign ministers will also meet with Prime Minister Narendra Modi, the foreign ministry said.

With deep divisions among some members, including over the Middle East war and criticism of Western powers, it was not clear whether a joint statement would be released at the meeting's end.

"We will let you know as things progress," India's foreign ministry spokesman Jaiswal added.

bKash Limited, the country's largest mobile financial services (MFS) provider, has reported a 40% increase in net profit, reaching Tk184 crore, as revenue continued to grow strongly across successive quarters.

According to the unaudited financial statement of bKash, a subsidiary of BRAC Bank, the company's net revenue rose by 10% to Tk1,802 crore in the first quarter of 2026.

Speaking to TBS, bKash Chief Financial Officer (CFO) Moinuddin Mohammed Rahgir said, "bKash has consistently demonstrated the sustainability of its business model while continuing to support a more inclusive financial ecosystem for millions of Bangladeshis."

The company's persistent investments in technology, regulatory compliance and cyber security have helped strengthen customer trust and increase engagement across its platform. With an increasing proportion of its customer base now transacting regularly, reflecting growing confidence in digital financial services, said CFO.

This higher level of usage has contributed to growth in both revenue and profitability. Looking ahead, bKash will continue investing in a stronger financial ecosystem, digital commerce and payment solutions as Bangladesh moves toward a more cashless and digitally empowered economy, he further added.

Founded in 2010 as a joint venture between BRAC Bank and US-based Money in Motion LLC, bKash began commercial operations in 2011. It remained profitable until 2018 before facing significant losses between 2019 and 2021.

The company returned to profit in the July-September quarter of 2022 and has maintained consistent profitability since then, according to officials.

From the beginning, the company's investors have followed a "patient-capital" approach. Instead of taking dividends, they have continuously reinvested profits back into the business. This strategy has enabled bKash to build a strong technological foundation and scale its services effectively.

BRAC Bank currently holds a 51% stake in bKash, while other major shareholders include Money in Motion LLC (16.45%), Alipay Singapore E-Commerce (14.87%), International Finance Corporation (10.36%), and SVF II BEAM (DE) LLC (7.32%).

According to bKash, it currently has over eight crore customers, along with 3.50 lakh agents.

As of now, bKash charges Tk18.50 per thousand for cash out while Tk5 for each fund transfer to another account.

The government has approved the highly discussed Padma Barrage Project at an estimated cost of Tk34,347 crore.

The approval was granted during a meeting of the Executive Committee of the National Economic Council (Ecnec) held at the Secretariat, chaired by Prime Minister Tarique Rahman, today (13 May). Eight other projects were also approved.

The barrage is aimed at addressing water shortages in the Padma River during the dry season, revitalising the river system, and improving overall water and environmental management in the country's south-western region.

Bangladesh Poribesh Andolon (Bapa) has voiced concern over the government's move to advance the barrage project "before carrying out transparent studies and public consultations on its potential benefits and risks."

According to project documents, the barrage at Rajbari's Pangsha will store around 2,900 million cubic metres of water to strengthen water management in the south-western region.

The project aims to ensure regulated dry-season flow from January to May in the Ichhamati-Mathabhanga, Gorai-Madhumati, Chandana-Barasia, Boral, and Ichhamati river systems. It will also support water supply for the Godagari Pump House, the Ganges-Kobadak irrigation project, and the Rooppur Nuclear Power Plant.

Water supply will be ensured for around 2.88 million hectares of cultivable land across Kushtia, Faridpur, Jashore, Khulna, Barishal, Pabna, and Rajshahi.

The project also targets 113MW of hydropower generation and plans to use the barrage deck as a multi-purpose corridor for roads, power transmission lines, and gas pipelines.

According to the proposal, the project is expected to result in an annual increase of 2.39 million tonnes in rice production and 2.34 lakh tonnes in fish production.

The total estimated cost of the project stands at Tk50,443.64 crore. However, the Project Evaluation Committee recommended a phased implementation, proposing Tk34,497 crore for the first phase. Eventually, Tk34,347cr was approved at today's meeting. Officials said completion is tentatively scheduled for June 2033, with full financing from government resources.
Water security and environmental protection

According to Water Development Board (WDB) officials, the project is not just an infrastructure project; it could become a central solution for water security, food security, and environmentally sustainable development in Bangladesh.

"The barrage could improve the lives of millions of people directly and indirectly, while bringing major positive changes to agriculture, fisheries, industry, and the environment," an official added.

Since the construction of the Farakka Barrage in the 1970s, upstream water diversion has significantly reduced the natural flow of the Padma River during the dry season. This has increased salinity intrusion in rivers and canals in the south-western region, adversely affecting agriculture, fisheries, forestry, and river navigation. It has also put the biodiversity of the Sundarbans under severe threat.

WDB officials noted that dry-season flow in the Padma-Ganges system was around 70 thousand cusecs before the Farakka Barrage. Since 1975, upstream withdrawal has at times reduced flow to 10-20 thousand cusecs or less. Livelihoods across 20 to 25 Padma-dependent districts have faced severe disruption.

This has increased salinity, river erosion, siltation, disrupted navigation, and reduced irrigation and fisheries output. Excessive salinity has also caused widespread "top dying" in Sundarbans trees.

Under the 1996 Ganges Water Sharing Treaty, the two countries share the river's flow at Farakka from 1 January to 31 May each year. The 30-year treaty expires this year.

The Padma Barrage Project covers around 37% of Bangladesh's total geographical area, spanning four divisions, 26 districts, and 163 upazilas.

Infrastructure details

The project includes a 2.1km long main barrage with 78 spillways, 18 undersluices, fish passes, a navigation lock, and guide embankments. Three offtake structures will be built for the Gorai, Chandana, and Hisna rivers.

For river management, 135.6km of dredging will be carried out in the Gorai-Madhumati system, and 246.46km of re-excavation will be undertaken in the Hisna system.

Officials further mentioned that the barrage would create a 165km in-stream reservoir without major additional land acquisition, opening new opportunities for tourism, fisheries, and local economic activity.

Feasibility studies

Bangladesh has been exploring the idea of a Ganges Barrage since the 1960s, with the first study launched in 1961 by the then EPWADA, now the Bangladesh Water Development Board (BWDB).

Between 1960 and 2000, four pre-feasibility studies were conducted. In 2002, the Water Resources Planning Organisation recommended that the barrage be built either at Thakurbari in Kushtia or at Pangsha in Rajbari. Detailed feasibility studies and engineering designs were later carried out between 2009 and 2016.

Meanwhile, Bangladesh and India continued technical-level discussions. In October 2016, experts from both countries conducted joint site visits and meetings in Dhaka, followed by the creation of a joint technical sub-committee to facilitate data sharing.

In January this year, towards the end of the interim government's tenure, the project was sent to the Planning Commission for approval after nearly six decades of discussion.

An attempt was also made to place it before the 25 January Ecnec meeting. However, the then planning adviser Wahiduddin Mahmud said approval should not be rushed, given the project's high cost.

On 6 May, the Planning Commission and the Ministry of Water Resources briefed the prime minister on the project and reviewed its key components. The prime minister directed the inclusion of an assessment of the project's expected GDP contribution in the proposal.

Employment and social impact

During implementation, the project is expected to generate around 12.25 crore man-days of employment for about 47,950 workers and create approximately 9.27 lakh direct and indirect jobs. Plans also include seven satellite towns and modern rural townships for around 1.5 lakh families across 3,450 acres.

The feasibility study estimates annual economic returns of around Tk8,000 crore and a 0.45% contribution to GDP growth based on FY25. The project is also expected to reduce salinity intrusion in Satkhira, Khulna, and Bagerhat, helping restore the ecological balance in the Sundarbans and surrounding coastal areas.

Nine projects approved

The Ecnec meeting approved a total of nine projects worth Tk36,695.72 crore, including the Padma Barrage project. Of the total, Tk36,490.93 crore will come from government funding, while Tk204.79 crore will be financed from the concerned agencies' own funds.

Among the approved projects, three are new, five are revised, and one has received a time extension.

Other approved projects include: the Establishment of Chattogram Muslim Institute Cultural Complex (2nd revised), Construction of Multi-storey Building for the Department of Public Libraries (2nd revised), Upgradation of Existing Mother and Child Welfare Centres in District Towns into 30-bed Facilities (1st phase), Support Infrastructure Construction for Hi-Tech City-2 (3rd revised), Construction/Reconstruction of Government Children's Homes and Chotomoni Nibash (2nd revised), Construction of SM Barrack Complex to solve soldiers' housing shortage at Savar Cantonment, and Chattogram City Outer Ring Road (Patenga to Sagorika) (5th revised).

The meeting also approved one project under the power, energy and mineral resources ministry: Construction of Gas Pipeline from Dhanua to Mymensingh to supply gas to the Mymensingh Combined Cycle Power Plant (1st revised).

The meeting was also informed about two projects costing below Tk50 crore that had already been approved by the Planning Minister. These are: Infrastructure Development of Mymensingh Zilla School, Mymensingh, and Construction of Airmen Barrack Complex at BAF Base Kurmitola.

Bapa expresses concern

In a press statement signed by Bapa President Professor Dr Nur Mohammad Talukdar and Acting General Secretary SM Mizanur Rahman, the organisation alleged that the proposal does not properly address possible negative impacts.

According to the organisation, sedimentation upstream of the barrage could raise the riverbed and increase flooding and riverbank erosion along a 145-kilometre stretch from Pangsha to Rajshahi. It also warned that diverting water to the southwest during the dry season could reduce flows in central rivers, including the Arial Khan, and allow salinity to move further inland through the Meghna estuary.

BAPA further argued that the project could weaken Bangladesh's future efforts to secure a greater share of Ganges water from India during the dry season.

Instead of rushing ahead with the barrage, the organisation urged the government to strengthen negotiations with India over fair water sharing, renew the Ganges treaty accordingly, and restore natural connections between the Ganges and its distributary rivers inside Bangladesh.

United Finance PLC has reported a strong start to the 2026 financial year, with its net profit after tax surging by 31% during the first quarter of the year ending 31 March.

According to the company's financial results released today (13 May), the non-bank financial institution earned a net profit of Tk0.75 crore in the January-March period, up from the corresponding period of the previous year. This growth was largely attributed to improved operational efficiency and a steady expansion across its core business segments.

The significant bottom-line growth pushed the company's earnings per share (EPS) to Tk0.04 for the three months, compared to Tk0.03 in the first quarter of 2025. The company's net asset value (NAV) per share also saw a modest improvement, rising to Tk17.94 from Tk17.90 recorded at the end of the previous year.

Contacted, Mohammed Abul Ahsan, acting managing director of the firm, said that the results reflect the positive momentum built across the organisation.

He noted that the 31% surge in net profit, combined with healthy growth in both the loan portfolio and deposit base, reaffirms the strength of the company's diversified business model.

Ahsan added that the firm remains focused on delivering sustainable returns to its shareholders while maintaining excellence in customer service.

Most listed banks posted higher profits year-on-year in the first quarter this year, buoyed by higher gains from investments in government securities.

While interest income grew during the period, interest payments to depositors and lenders also jumped due to higher deposit rates, squeezing net interest income. In such a situation, higher gains from T-bonds and T-bills offset the decline in net interest income and boosted lenders' profits.

As of Wednesday, some 23 banks had published financial data for January-March (the first quarter) this year, out of 36 listed banks (five banks are under a merger process).

Of them, 12 reported year-on-year profit growth, five saw their profits decline, three endured an increase in losses and the results of another remained almost flat, while Islami Bank entered the red again in the March quarter, according to the unaudited financial statements of the lenders.

The top performers include BRAC Bank, City Bank, Dutch-Bangla Bank, Uttara Bank, Jamuna Bank, Midland Bank, Mutual Trust Bank, NRB Bank, Shahjalal Islami Bank, Southeast Bank and United Commercial Bank. They posted growth ranging from 6.5 per cent to 194 per cent.

Among them, BRAC Bank posted the highest profit of Tk 6.96 billion, followed by Dutch-Bangla Bank with Tk 2.61 billion, City Bank with Tk 2.41 billion, Prime Bank with Tk 2.08 billion, Eastern Bank with Tk 1.99 billion and Southeast Bank with Tk 1.32 billion in the January-March quarter this year.

BRAC Bank's consolidated profit jumped 44 per cent year-on-year in January-March this year, buoyed by substantial earnings from investments and contributions from subsidiaries.

The leading bank's net interest income grew 21 per cent year-on-year to Tk 4.98 billion while investment income jumped 36 per cent, leading to impressive profit growth.

Dutch-Bangla Bank's profit climbed a whopping 195 per cent despite a 3 per cent year-on-year growth in net interest income. Its investment income grew 41 per cent, helping it achieve higher profits year-on-year.

City Bank's net profit more than doubled year-on-year to Tk 2.41 billion in the March quarter, driven by growth across core income streams.

"While I am happy with such a strong increase in profit, I am equally concerned about the sharp slowdown in credit growth in the first quarter," said City Bank Managing Director and Chief Executive Officer Mashrur Arefin in a statement.

"The direction in which credit growth in our sector is heading is, quite frankly, a matter of great concern," he said.

Improved asset quality helped optimise provisioning levels, further supporting City Bank's bottom line.

City Bank's income from loans rose 14 per cent year-on-year to Tk 1.30 billion, while investment income grew more sharply, climbing from Tk 6.03 billion to Tk 10.14 billion and accounting for 32 per cent of total operating income.

Eastern Bank reported a 28 per cent year-on-year growth in earnings in the March quarter, supported by strong investment income, higher foreign exchange earnings and lower provisioning.

"We continue to remain focused on maintaining strong asset quality, liquidity and capital strength while ensuring superior financial results for our shareholders," said Hassan O. Rashid, managing director of EBL, in a statement.

With private-sector credit demand slowing, EBL channelled a larger share of its funds into government securities rather than loans. It maintained strong asset quality, with its non-performing loan (NPL) ratio standing at 2.8 per cent on a standalone basis as of March this year, almost unchanged from 2.79 per cent a year ago and significantly below the industry average.

Akramul Alam, head of research at Royal Capital, said the well-performing banks have always been able to keep operating costs down and mobilise funds at relatively low costs, riding on their excellent market reputation.

The trusted banks also witnessed deposit migration as clients of weak banks transferred their funds to well-governed banks, he said.

As private-sector credit demand remained weak amid persistent economic uncertainties, banks with high liquidity preferred to invest their excess funds in risk-free government securities and reaped handsome returns.

"Banks with low bad loans could invest more in Treasury bonds. These returns were risk-free and fully secured, requiring no provisions, which supported their profit growth," Mr Alam added.

During the same period, some banks suffered due to poor asset quality and substantial bad loans, forcing them to set aside huge amounts of provisions.

The bad loans that the banks had tucked away by taking advantage of the political clout of the Awami League-led regime have come to light since the 2024 political changeover.

"If a bank has a high volume of bad loans, it cannot earn interest income from them. Moreover, it has to keep provisions against the loans from profits, hitting the bottom line," Alam explained.

For example, National Bank's financial woes deepened as the bank's losses increased by a massive 410 per cent year-on-year to Tk 11.33 billion in the first quarter ended March this year.

AB Bank's losses escalated 223 per cent year-on-year to Tk 8.25 billion while IFIC Bank's losses soared 72 per cent year-on-year to Tk 8.61 billion in January-March this year.

Islami Bank entered into fresh losses of Tk 2.88 billion in January-March, against profits of Tk 298 million in the same quarter last year, due to higher provisioning requirements and a negative net interest margin.

Remittance disbursement through agent banking outlets in Bangladesh is growing because of their rising popularity as rural households find the service convenient.

During the January-March period of 2026, agent banking outlets handled Tk 8,959.8 crore in inward remittances, posting a 15 percent year-on-year increase. Banks disbursed Tk 7,814 crore in remittances in the first quarter of 2025.
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The amount of remittance disbursement, a key pillar for net-importing Bangladesh, accounted for 7.4 percent of the country’s total remittance inflows during January-March 2026.

However, remittance inflows through agent banking were overwhelmingly concentrated in rural areas, according to the latest Bangladesh Bank quarterly report on agent banking statistics published yesterday.

The report said that of the total remittances received through agent banking outlets during the quarter, Tk 8,133 crore, or more than 90 percent, went to rural areas, while urban areas received Tk 826.6 crore, which was less than one-tenth of the amount.

The BB said remittances received in rural areas through the agent banking channel were 9.8 times higher than those received in urban areas.

The central bank earlier said agents were contributing significantly to remittance disbursement since customers were able to receive doorstep banking services within the shortest possible time.

“Agent banking operations in remote areas remove the gap created by the insufficient presence of bank branches, thereby enhancing accessibility to financial services for marginalised communities,” said the BB’s latest report.

Agent banking provides an efficient and cost-effective alternative to traditional branch banking, enabling broader access to financial services and facilitating economic development.

The BB said 30 scheduled banks were operating agent banking services through 20,339 active outlets. On average, each outlet serves approximately 8,551 people in Bangladesh.

More than 85 percent of the outlets are located in rural areas, highlighting banks’ focus on extending formal financial services beyond urban centres.

As such, agent banking transactions remained heavily rural-centric.

During January-March 2026, agent banking outlets handled transactions worth Tk 1.43 lakh crore, mostly in rural areas, said the BB, which introduced agent banking in 2013 as an alternative delivery channel to expand banking services in remote and underserved regions.

The BB report said that at the end of March 2026, total deposits held through agent banking accounts stood at more than Tk 50,560 crore, marking an 18.6 percent increase from a year earlier. Rural areas accounted for Tk 41,695 crore of the deposits.

Deposit growth was higher in urban areas than in rural areas.

At the end of March 2026, total outstanding loans stood at Tk 11,906 crore, with urban areas accounting for 37 percent of the total outstanding amount.

The BB data showed that outstanding loans were nearly one-fourth of the total deposit balance at agent banking outlets.

The BB also highlighted growing female participation in agent banking activities.

The central bank said that in March 2026, the number of female-owned agents increased compared with March 2025, while deposit accounts owned by women increased noticeably.

“Both deposit and loan accounts for women increased,” said the report, adding that deposit accounts owned by women rose by 8 percent in March from a year earlier.

The Board of Directors of Bangladesh Bank (BB) has given primary approval to the liquidation of five Non-Bank Financial Institutions (NBFIs) that are struggling with massive loan defaults and an inability to repay depositors.
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The liquidation process for these institutions is expected to commence in July, according to sources privy to the decision made during a board meeting chaired by Governor Mostaqur Rahman on Tuesday.

The five institutions slated for liquidation are FAS Finance, Fareast Finance, Aviva Finance, People's Leasing and Financial Services, and International Leasing and Financial Services.

According to the central bank data, the non-performing loan (NPL) ratios of these institutions have reached critical levels, ranging from 93 per cent to nearly 100 per cent. Due to their prolonged failure to recover loans, they have been unable to honour withdrawal requests from depositors.

The central bank plans to shut down these entities under the Bank Resolution Act 2026. As part of the process, it will appoint one of its directors as an administrator for each institution, assisted by two additional officials. These institutions will eventually be declared defunct.

Central bank officials estimate that approximately Tk 50 billion will be required to return funds to individual depositors. The central bank reportedly moved forward with the liquidation decision after receiving positive assurances from the government regarding fund allocation in the upcoming national budget.

The Bank Resolution Act provides a framework for the merger, restructuring, or closure of financially distressed institutions and dictates how assets should be liquidated to pay off creditors.

The decision follows a lengthy review process. In May last year, the central bank issued show-cause notices to 20 NBFIs for high NPLs and failure to return deposits. Later, nine institutions with unsatisfactory recovery plans were earmarked for closure. That list was trimmed to six in January and finally to five, with Premier Leasing being excluded from the current final list.

The financial health of these entities, as of December last, paints a dire picture with FAS Finance having 99.99 per cent NPL ratio, International Leasing 99.44 per cent, Fareast Finance 98.50 per cent, People's Leasing 95 per cent and Aviva Finance 93.93 per cent NPL ratio.

Industry insiders attribute this collapse to years of systemic irregularities, corruption, and massive loan scams. Notably, disgraced businessman PK Halder is accused of embezzling at least Tk 35 billion from four institutions: People's Leasing, International Leasing, FAS Finance, and BIFC.

Bangladesh's pharmaceutical industry may face major pressure after the country graduates from Least Developed Country (LDC) status, stakeholders warned.

They said many medicines currently produced under patent waiver facilities may no longer be manufactured without licences from international companies once those benefits end. This could raise production costs and push up medicine prices.

Experts said Bangladesh will struggle to remain competitive in international markets unless investment in research and development (R&D) increases.They also warned that next-generation medicines for cancer and other complex diseases could become unaffordable for ordinary people.
The issues were discussed today (13 May) at a workshop held at Pan Pacific Sonargaon Hotel in the capital. The inception workshop, titled "Strengthening Competitiveness and Innovation of the Pharmaceutical Industry for Sustainable Growth in the Context of LDC Graduation," was jointly organised by the Asian Development Bank (ADB) and the Health Economics Institute.

The keynote paper was presented by health economist Professor Dr Syed Abdul Hamid. He said Bangladesh is currently able to produce many generic medicines without licences from global companies, helping keep production costs low and prices affordable.

"The situation may change after LDC benefits expire," he said.

"Production of newly patented medicines would then require licences, compliance with international standards, and mandatory bioequivalence and biosimilar testing. Most local firms are not yet fully prepared for this, meaning tests may need to be conducted abroad, increasing costs," the professor added.

The Bangladesh Bank has reduced the penal interest rate on overdue loans to 0.5% from the previous 1.5%, offering borrowers additional relief in case of delayed repayments.

The central bank issued a circular in this regard today (13 May), instructing all scheduled banks to implement the decision with immediate effect.

Earlier, in a circular issued in May 2024, the central bank had fixed the penal interest rate at 1.5%.

According to the new circular, if a loan or instalment is classified as partially or fully overdue, banks will now be allowed to charge a maximum penal interest rate of 0.5% on the outstanding balance for continuous and demand loans, and on overdue instalments for term loans.

Bankers, however, criticised the move, saying higher penal interest rates are generally maintained to encourage borrowers to repay instalments on time.

They argued that reducing the penalty by 100 basis points could weaken repayment discipline and create additional pressure on banks.

Several bankers warned that the decision could further worsen the already rising volume of default loans in the banking sector.

A deputy managing director of a private commercial bank told The Business Standard that banks may respond by increasing regular lending rates.

"Currently, lending rates are around 14.5%. Due to the reduction in penal interest, some banks may raise rates to 15.5%, and ultimately the burden will fall on borrowers," he said.

A managing director of another private bank said the policy would put additional pressure on banks' profitability and could encourage habitual defaulters. "This kind of policy may encourage borrowers who already fail to repay loans regularly."

A senior official of a private bank said overdue loans already create operational and financial complications for banks, and the latest decision effectively lowers the cost of delayed repayment for borrowers.

He also noted that since 2024, Bangladesh has followed a three-month overdue classification timeline in line with international practices, although some business groups have demanded extending the period to six months.

"That would be completely inappropriate and could increase default loans further," he said.

The official added that banks will eventually have to fully comply with IFRS 9, which would make risk management stricter. "Good businesses do not seek these kinds of facilities. Responsible borrowers are already repaying banks on time."

The Bangladesh economy remained in a "fragile and uneven recovery phase" during the January–March quarter of FY2025–26, as persistent inflation, weak private investment, subdued industrial activity and external sector pressures continued to weigh on overall economic momentum, according to the Metropolitan Chamber of Commerce and Industry.

In its latest "Review of Economic Situation in Bangladesh" for Q3 of FY26, published yesterday (12 May), the business body said although the political and administrative instability that followed the transition period in late 2024 has eased considerably, the economy has yet to regain strong momentum.

"High living costs, cautious private sector sentiment and weak industrial expansion continued to weigh on overall economic performance," the report stated.

According to the review, economic growth during the January–March quarter remained modest due to slower export expansion, subdued private investment and the continuation of tight monetary policy aimed at containing inflation.

Restrictive credit conditions, elevated borrowing costs and high inflation continued to suppress domestic demand, business expansion and consumer spending during the quarter, the report said.

Despite the challenges, the chamber said strong remittance inflows continued to support the economy by stabilising foreign exchange reserves and partially offsetting the impact of a widening trade deficit.

The finance ministry is struggling to manage the sharp rise in LNG subsidy costs after international gas prices more than doubled following the Iran war.

Subsidy demand for just the first two months after the conflict started equals to the Tk8,000 crore allocated for the whole fiscal year.

Finance Division officials said monthly subsidies for LNG imports have risen to between Tk4,100 crore and Tk4,200 crore since the war began. As invoices for spot market LNG must be paid within 15 to 17 days of delivery, subsidy payments have to be released quickly.

In April, Petrobangla's deficit from LNG imports stood at Tk4,220 crore. Against this, the ministry sought Tk4,200 crore in subsidies from the finance ministry. However, the finance ministry released Tk2,500 crore in April, which Petrobangla used to cover part of the import costs.

For May, the Energy and Mineral Resources Division wrote to the finance ministry on 7 May requesting another Tk3,500 crore in subsidies, citing plans to import 11 LNG cargoes during the month.

According to the letter, signed by Senior Assistant Secretary Rafiqul Islam, Bangladesh plans to import two cargoes under long-term contracts, one under a short-term contract, and eight from the spot market in May. Six cargoes are scheduled for the first half of the month and five for the second half.

The total cost of importing these 11 cargoes is estimated at Tk7,730 crore, while Petrobangla expects to earn Tk3,630 crore from sales. This would leave a deficit of Tk4,100 crore. Only Tk500 crore has been allocated for May subsidies, creating an additional funding need of Tk3,600 crore.

The Energy Division warned that failure to pay invoices on time would trigger late payment charges. It said delayed payments could also lead to extra premium charges on LNG purchases, increasing the deficit further.

The division has therefore requested the urgent release of Tk1,999 crore by 15 May and another Tk1,610 crore by 31 May in favour of Petrobangla to meet May's LNG subsidy requirements.

The Bangladesh Bank has issued the "CIBRR-1 Economic Development Sukuk", with total bids worth nearly 12.30 times the offered amount, reflecting strong investor demand for the latest government Islamic investment instrument.

According to a press release, the auction was held for the 8th Bangladesh Government Investment Sukuk, issued against the Rural Road Important Bridge Construction Project, with a face value of Tk5,900 crore and a tenure of 7 years. The Sukuk carries an annual lease return (rent rate) of 10.40%.

The central bank said a total of Tk72,597.94 crore in bids was submitted by a wide range of investors, including Islamic banks and financial institutions, Islamic banking branches and windows of conventional banks, individual investors, and provident funds. As the bids exceeded the issued amount by around 12.30 times, allocation was made on a proportional basis among investors.

For the first time, the Sukuk auction was conducted using the Bangladesh Bank's in-house digital platform, the Shariah Securities Module (SSM).

The central bank said the Sukuk issuance is enabling the government to channel liquidity from Shariah-based banks and financial institutions into development projects, while also creating alternative investment avenues for Islamic financial institutions.

It further noted that the instrument provides individual investors in the country with opportunities to invest in Shariah-compliant securities.

Banks and financial institutions will be able to use the Sukuk as part of their Statutory Liquidity Reserve (SLR), while Islamic banking branches and windows of conventional banks can use holdings of the Sukuk as collateral to access the Islamic Banks Liquidity Facility (IBLF) from Bangladesh Bank.

From 14 May 2026, Shariah-based banks, financial institutions, Islamic insurance companies, conventional banks and insurers, Islamic banking branches and windows, as well as individual investors, will be able to buy and sell the Sukuk in the secondary market, the central bank said.

In total, Tk441.62 crore worth of Sukuk was allocated against 1,011 successful bids from individual investors, provident funds, mutual funds and deposit insurance-related categories.

The Bangladesh Bank said the 8th government investment Sukuk is expected to play a positive role in improving rural infrastructure and socio-economic conditions in the project area through the development of bridges and rural roads.

United States (US) Ambassador to Bangladesh Brent T. Christensen has discussed expanding energy cooperation with leading American energy companies, reaffirming Washington's commitment to supporting Bangladesh's growing energy and infrastructure needs.

The envoy met Javier La Rosa, President of Chevron, to discuss ongoing cooperation in Bangladesh's energy sector, the US embassy in Dhaka said today (13 May).

The embassy said Chevron currently supplies nearly 60 percent of Bangladesh's natural gas, helping power homes, industries and economic activities across the country.

The US ambassador also held talks with Steven Kobos, president and chief executive officer of Excelerate Energy, on meeting Bangladesh's growing energy demand through American innovation and expanded LNG and energy infrastructure.

The discussions focused on delivering cleaner and more reliable energy to households and businesses, the embassy said.

The envoy recently led a delegation of 25 Bangladeshi business leaders to the SelectUSA Investment Summit in Washington, D.C.

Meanwhile, Assistant US Trade Representative Brendan Lynch recently visited Bangladesh and held meetings with government officials, business leaders, companies and labour organisations.

The two sides discussed ways to strengthen bilateral trade and investment ties through implementation of the US-Bangladesh agreement on reciprocal trade aimed at improving market access, removing investment barriers and expanding commercial opportunities.