Food production, trade and transportation costs may increase further on fuel-price hike by Tk 15-20 per litre in Bangladesh amid an exigent global crunch.
Bangladesh uses about 4.35 million tonnes of diesel annually, and around 24 per cent of it is used in agriculture. About 80 per cent of irrigation depends on this fuel oil. It is also needed for land preparation, harvesting, threshing, and transporting crops.
On Saturday, the government increased diesel price from Tk 100 to Tk 115 per litre, octane Tk 140, up from Tk 120, petrol Tk 135, up from Tk 116, and kerosene Tk 130 in a rise from Tk 112.
Economists, agriculturists and businesspeople are concerned about domino effect of the fuel-price rises across a spectrum of economic activities, price indices and trade and transport.
Agro economists say farmers may have to spend around Tk 18 billion more per year on diesel for farming.
"This will create pressure in two ways. First, higher production costs will make it harder for farmers to get fair prices. Second, food prices on the market may go up, increasing the cost of living, especially for low-income people," says former Bangladesh Agricultural Research Council (BARC) executive chairman Dr Wais Kabir.
He says Boro is now being harvested, so irrigation needs are lower. "However, costs for harvesting, threshing, and transport will increase due to higher fuel prices."
He notes that fuel-price hikes affect all sectors and will increase farmers' costs significantly, which may lead to higher rice prices.
Agricultural economist Prof Dr Rashidul Hasan says farmers are worried about reduced profits. Paddy prices are already low due to imports from India, and farmers are unsure about getting good prices for Boro.
"The fuel-price hike has made the situation worse."
Data show about 55 per cent of the country's rice comes from Boro cropping which depends fully on irrigation.
There are around 1.9 million agricultural machines in the country in the process of mechanization of agriculture, about 75 per cent of which run on diesel.
Prof Hasan feels ensuring diesel supply and providing subsidies are important to support farmers.
Group Director of TK Group Mohammad Mostafa Haider says the impact of fuel-price hikes on product prices cannot be measured immediately.Bangladesh market report
He notes that global oil-and raw-material prices have already increased, along with transport costs.
As such, the businessman says, many product prices have already been adjusted. However, he believes transport fares should not increase again if fuel supply improves, as fares already went up earlier due to shortages.
And, in the meantime, transporters and the government authority concerned were in a meeting on Sunday night with a proposal on the table for bus-fare hike, too.
Recent data from the Trading Corporation of Bangladesh and the Department of Agricultural Marketing show prices of vegetables, edible oils, fish, and poultry on an upturn over the past two weeks.
Traders say truck and pickup-van fares for goods have already increased 15-20 per cent due to fuel shortages in many places.
Meanwhile, the fuel price hike has affected the transport sector as a whole.
The Fare Adjustment Committee under the Bangladesh Road Transport Authority met to discuss new bus fares for city and long routes on Sunday evening. The meeting ended inconclusively. The meeting discussed an increase of Tk 0.22 in fare per kilometre. However, the meeting resumes today.
Although buses charged regular fares on the first day, operators demanded fare increases to make up for higher fuel costs and earlier losses during the fuel crisis.
Some ride-sharing services also charged up to 50-percent higher fares on Sunday, citing fuel shortages and higher costs.
However, the Passenger Welfare Association of Bangladesh opposes fare hikes without fair representation of commuters in the decision-making process. They say fare decisions were previously "influenced by interest groups".
Water-transport operators have also demanded a 36-42-percent increase in launch fares, saying that their operating costs have risen sharply.
Currently, bus fares are Tk 2.12 per km for long-haul run and Tk 2.42 for city routes. Launch fares may also increase if the proposals get through.
Commuters have expressed concern about possible fare hikes, though many say they paid normal fares on the first day after the fuel-price increase.
Transport owners' leaders say fare adjustment is necessary after the fuel-price hike, while commuters argue that fares were not properly reduced when fuel prices fell in 2024.
Leaders of the country's apparel sector Sunday demanded uninterrupted supply of fuels amid the price hike and adjustment of the rate on a regular basis.
Economists term the decision 'good', suggesting regular price adjustment in line with global price indices.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Mahmud Hasan Khan, in an immediate reaction, says, "So far I know, the government has raised the fuel prices in line the understanding with the IMF."
He says the price must be adjusted on a regular monthly basis according to the global price indices, adding that 'adjustment means not only to raise the price but also reduce when global prices fall."
He, however, stresses that factories should get the fuel uninterruptedly as price hike will surely increase the production cost which for many reasons is on the rise.
Citing a rise in global market rates, the government Saturday increased fuel-oil prices at the retail level by Tk 15 to Tk 20 per litre.
Under the new pricing structure, diesel has been fixed at Tk 115 per litre, octane at Tk 140, petrol at Tk 135, and kerosene at Tk 130 per litre.
Talking to The Financial Express, Khan Monirul Alam, Managing Director of Fashion.Com, says his factory located at Ashulia faces five to six hours of load shedding daily.
To run two factories-medium in size--he needs 1200-litre diesel daily to operate generators during the electricity outage.
Due to the 15-percent hike in diesel prices, he will have to bear an additional financial cost of Tk 0.4 million to Tk 0.5 million monthly.
"As the generators are for backup supports and they also have a limited capacity, the machines are overheated, posing risk of possible accident," he says explaining the current situation.
Mr Alam says majority of the factories in the export industry have generators as alternative supports.
Echoing the BGMEA leader, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) president Mohammad Hatem says there is no denying the fact that production cost will increase. "But the main problem is that we are not getting fuel."
"Last government increased prices of gas several times but we did not get the adequate supply of gas," he laments.
Talking to the FE, Bangladesh Institute of Bank Management (BIBM) director-general Dr Md Ezazul Islam says the latest fuel-price hike will fuel the inflation rate which has been on the higher side.
If the government does not raise the prices of fuel, it has to subsidize, which will put a negative impact on revenue policy, he says about a double bind.
Terming the raise 'good', he says the government also needs to adjust the fuel prices every month with the international market trends-reducing the rate when prices go down globally.
Distinguished fellow of CPD Prof Mustafizur Rahman says the price hike is made at a time when the government has to buy fuels at high rates amid uncertainties.
"It would affect most the direct users like transport, manufacturing and consumers," he says, adding that the government has to monitor the market strictly so that bus fare and other transportation price do not rise disproportionately but reasonably.
He also suggests strengthening the social-safety net to help low-and fixed-income groups who are already under pressure due to higher inflation.
Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood and State Minister Aninda Islam Amit met Prime Minister Tarique Rahman at the Secretariat on Sunday and briefed him on the country's fuel situation.
"They met the Prime Minister at his office at the Secretariat and informed him of the latest fuel situation," said Prime Minister's Additional Press Secretary Atikur Rahman Rumon.
After the meeting, the Energy Minister told waiting journalists that the government had no alternative but to hike the prices as fuel imports require foreign currency, and the adjustment was necessary to keep the situation at a tolerable level.

Bangladesh Lamps, widely known as BD Lamps, posted more than 11% year-on-year revenue growth in the first nine months of the current fiscal year, driven by higher sales of energy-saving LED tube lights and electrical accessories, according to its quarterly financials as of March.

Despite the rise in revenue, the company reported a loss of Tk87 lakh for the July-March period, with a loss per share of Tk0.83 – a sharp improvement from the same period a year earlier, when it incurred a loss of Tk5.74 crore and a loss per share of Tk5.46.

The company said its earnings position improved significantly compared with the corresponding period of the previous year, "primarily driven by an 11.3% growth in revenue and an 8.9% reduction in operating expenses".

The financial statements were approved at a board meeting held on Thursday and published on the stock exchange website today (19 April).

BD Lamps reported a revenue growth of Tk153.81 crore for the nine-month period, up from Tk138.23 crore a year earlier.

According to the report, most of the revenue came from the sale of energy-saving LED bulbs, which contributed Tk56.25 crore, slightly down from Tk56.67 crore in the same period last year.

Electrical accessories generated Tk47.78 crore, marking a 40% year-on-year increase, while sales of energy-saving tube lights rose 18% to Tk43.58 crore. In contrast, revenue from electric bulbs fell to Tk6.20 crore.

Jan-Mar financials

In the January-March quarter, BD Lamps reported revenue of Tk51 crore, a 6% increase from Tk48.32 crore in the same quarter of the previous fiscal year.

The company posted a profit of Tk27 lakh for the quarter, with earnings per share of Tk0.26, up from a profit of Tk11 lakh and EPS of Tk0.11 a year earlier.

For the full fiscal year 2024-25, BD Lamps recorded revenue of Tk188.47 crore, compared with Tk173.29 crore in the previous year, reflecting an 8.76% growth.

However, the company said it suffered a significant loss of Tk5.88 crore in the first quarter of FY25, mainly due to the July uprising in 2024. "As a result, we could not achieve our targeted sales, which affected overall profitability," it said in its annual report.

For the year, BD Lamps posted a net loss of Tk6.55 crore, narrowing from Tk13.43 crore in the previous year.

The company also noted that a new statutory regulatory order (SRO) issued in the national budget in May 2025 increased duties from an average of 10% to 28%, further affecting profitability.

To comply with the new requirements, BD Lamps has committed to investing nearly Tk10 crore in moulds and machinery to set up in-house production facilities for plastic and metal components used in switch sockets and lighting products.

The company expects this move to reduce duties back to an average of 10%, supporting profitability in the coming years.

BD Lamps declared a 10% cash dividend for its shareholders for FY25.

The safe-haven US dollar dropped ​to multi-week lows on Friday as risk appetite soared after Iran said the Strait of Hormuz is open, boosting optimism that the Middle East ‌conflict is winding down.

In afternoon trading, the dollar index , which measures the greenback against a basket of six currencies, fell 0.3 percent to 97.96 after earlier ​dropping to 97.632, its lowest in seven weeks.The index was down 0.6 percent on the week, set for a second straight weekly decline. Over the past two weeks, ​it has fallen about 2.1 percent, its largest two-week drop since late January.

“The dollar’s weakness is mainly about the market unwinding the geopolitical risk premium,” said George Vessey, lead FX and macro strategist at Convera in London. “I don’t think we are pricing in a fundamentally weaker US dollar because there are question marks around the Federal Reserve, what’s the Fed’s next move ​is going to be after inflation came out hotter than expected.

So the economy is still somewhat resilient so it’s not going to be the start ​of a full structural dollar decline.”

BOJ LIKELY TO HOLD RATES THROUGH JUNE

Against the Japanese yen , the dollar slid 0.6 percent to 158.22 after earlier climbing to 159.86. It was on track ‌to post ⁠its largest weekly drop in nine weeks.

It will take about two years to recover the energy ​output lost in the Middle East from the ‌conflict there, Fatih Birol, the head of the International Energy Agency, was quoted as saying on Friday in an interview with ​the Neue Zuercher Zeitung newspaper.

"That will vary ​from country to country. In Iraq, for example, ⁠it will take much longer than in Saudi Arabia. ​However, we estimate it will take approximately two years ​overall to reach pre-war levels again," Birol told the Swiss newspaper.

Birol added that the market was underestimating the consequences of a ​prolonged closure of the Strait of Hormuz.

Shipments of oil ​and gas that were already en route to their destinations before ‌the ⁠war in Iran began have now arrived, mitigating the impact of shortages, he said.

"But no new tankers were loaded in March. There were no new deliveries of ​oil, gas ​or fuels to ⁠Asian markets. This gap is now becoming apparent. If the Strait of Hormuz ​is not reopened, we must prepare for ​significantly higher ⁠energy prices."

Asked whether the IEA could carry out another release of emergency oil reserves after its March move, ⁠Birol ​said the agency was ready to ​act immediately and decisively.

"We're not there yet, but it's definitely under ​consideration," Birol said.

Metropolitan Chamber of Commerce and Industry (MCCI) President Kamran T Rahman today (19 April) called for a "supportive and growth-oriented" national budget for fiscal year 2026-27, warning that businesses, particularly small and medium enterprises, are under severe strain from high inflation, sluggish investment, elevated interest rates and foreign exchange pressure.

Speaking at a seminar of MCCI and the Economic Reporters' Forum (ERF) on budget priorities, he said the upcoming budget must be balanced and realistic, arguing that a sensible tax policy can simultaneously boost revenue, encourage investment and generate employment rather than punish businesses further.

Kamran proposed full integration of the National Identity (NID) and Tax Identification Number (TIN) databases to expand the tax net, noting that though over one crore taxpayers hold TINs, fewer than half file returns.

He also recommended introducing a symbolic minimum tax to bring new taxpayers into the fold and simplifying return filing through mobile applications.

The MCCI chief urged the government to reconsider conditions tied to corporate tax benefits, especially restrictions on cash transactions.

He further suggested cutting tax rates for both listed and non-listed companies by an additional 2.5% to stimulate investment.

Kamran proposed a unified taxpayer profile covering income tax, VAT and customs to reduce administrative complexity and harassment, along with online hearings and digital notices to cut time and cost for businesses.

On VAT and customs, he urged simpler procedures, transaction-based valuation, stronger automation, and allowing quantity disclosure instead of value in some VAT forms to protect confidentiality.

The MCCI President called for special policy support for SMEs, including separate tax treatment, input tax credit facilities and reduced duty and VAT on raw materials.

Comprehensive reform roadmap presented

Md Shahadat Hossain, former President of the Institute of Chartered Accountants of Bangladesh, presented policy recommendations in a paper titled "National Budget 2026–2027: Private Sector Priorities & Perspectives," outlining reforms in corporate tax, VAT, customs and capital markets.

He said the budget should go beyond revenue and spending to serve as a broader policy framework for growth, investment, jobs and inflation control.

Shahadat flagged Bangladesh's tax-to-GDP ratio hovering between 6.5% and 7.3% in FY2024-25 as among the lowest globally, well below the 15% threshold considered necessary for sustainable development.

The World Bank-IMF Spring Meetings ended with more questions than answers for Bangladesh. There was no firm signal on the size or timing of external financing, no breakthrough on the stalled IMF programme, and no assurance that the expected $3.2 billion in budget support from the World Bank, ADB, AIIB, and Japan can be mobilised within the government's timeline. At a moment when tensions in the Strait of Hormuz are already unsettling global energy and freight markets, this ambiguity could not have come at a worse time.

Yet the government's post-Meeting narrative has been one of calm continuity. Officials insist the IMF programme is not off the table and that external financing will materialise once routine discussions conclude in the coming months. This confidence, however, sits uneasily alongside the fiscal choices now on the table: a record Tk9.3 trillion budget built on an ambitious revenue target that keeps the deficit deceptively modest as a share of GDP. The implicit message is that adjustment can wait – even as the global environment grows more hostile.

That assumption is increasingly difficult to sustain. Bangladesh sits at the wrong end of every transmission channel emanating from the Strait of Hormuz. Even a partial disruption pushes up oil prices, inflating the import bill and expanding subsidy requirements. Disruptions to Saudi and Qatari urea shipments raise fertilizer costs and threaten agricultural cycles. War-risk premiums on Gulf shipping routes increase freight costs for an import-dependent manufacturing base. Each additional dollar spent on fuel, fertiliser, and freight becomes a direct drawdown on already strained foreign exchange reserves.

Crucially, these pressures are not temporary. Even if the conflict were to de-escalate quickly, the lagged effects on prices, supply chains, and risk premiums are likely to persist for months. This is a shock that compounds over time – and it is arriving just as Bangladesh's policy credibility is beginning to fray.

The deeper problem is that the pressure is no longer one-sided. Bangladesh today finds itself caught between a shock it cannot control and policies it has been slow to adjust. The global environment is tightening from one end; policy inertia is tightening from the other. The result is a narrowing policy space – an economy squeezed from both directions.

This is why the stalled IMF programme matters far beyond its immediate financing value. Without an active IMF programme, Bangladesh loses more than access to disbursements – it loses its credibility anchor. And without that anchor, budget support from other multilaterals becomes harder to unlock, with IMF endorsement now effectively the gatekeeper of macroeconomic confidence. If these flows do not materialise, the consequences are immediate: a wider external financing gap, sharper import compression, rising inflation, and further pressure on reserves.

It is also important to recognise the constraints under which the current government is operating. Barely two months into office, it has been forced to navigate a fragile macroeconomic landscape while confronting a global shock that intensified within days of assuming power. Under such conditions, delays in advancing reforms are understandable.

What is harder to justify, however, is not inertia but reversal. The issue is not that reforms have yet to move forward – it is that some have not yet moved backward. The reintroduction of discretion in petroleum pricing, renewed exchange-rate management despite commitments to a market-based regime, and amendments to the bank resolution framework that reopen the door to previously discredited owners all signal a retreat from earlier reform commitments. Meanwhile, larger structural measures – particularly in tax and financial sector reform – remain stalled.

This mix of reversal and inertia creates a credibility problem at precisely the wrong moment. Backtracking signals unreliability; delays signal a lack of urgency. Together, they raise doubts about the government's willingness to adjust, keeping external financing on hold while the global shock intensifies.

The adjustment path itself is not complicated – but it is politically difficult. It begins with restoring exchange-rate credibility, because without that, reserves cannot be rebuilt and external balances cannot stabilise. It requires aligning interest-rate policy with genuine monetary tightening to contain inflation. It demands a shift in fiscal policy from expansionary optimism to targeted consolidation – anchored in realistic revenue expectations, rationalised subsidies, and prioritised expenditure. And it necessitates moving forward on long-delayed structural reforms, from tax administration and banking sector cleanup to energy pricing, port management, and state-owned enterprise governance.

Ultimately, macroeconomic adjustment is never neutral. When policy delays persist, the burden does not disappear – it shifts. Import compression translates into raw-material shortages for industry. A defended exchange rate erodes export competitiveness while diverting remittances into informal channels. Delayed energy pricing reforms inflate subsidies, crowding out social spending. In the absence of timely policy action, adjustment takes place through even higher inflation, stricter and more chaotic rationing, and slower growth – mechanisms that disproportionately affect those least able to absorb the shock.

Bangladesh is now operating in a dangerously exposed position: caught between a volatile global environment, a stalled IMF programme, and a fiscal stance that assumes the storm will pass. But the world is tightening, not easing. External conditions are becoming less forgiving, not more.

The government may have had limited time – but the direction of travel is already visible.

The war delivered the shock, but the distribution of pain is being decided at home. Without timely and credible reforms, the burden of adjustment will not be shared evenly – it will cascade downward, onto households, workers, and small businesses. That is the real cost of delay: not just macroeconomic strain, but a quieter, more unequal adjustment that unfolds as policy continues to look the other way.

A day after hiking fuel prices, the government has announced a 10-20% increase in diesel, octane and petrol supplies from today to ease the shortages that kept motorists waiting in long queues for hours in Dhaka and elsewhere as of yesterday.

In a notification last night, the Energy Division said the distribution companies under the Bangladesh Petroleum Corporation (BPC) will sell 13,048 tonnes of diesel, 1,422 tonnes of octane and 1,511 tonnes of petrol per day from 20 April. This marks a 10% increase for diesel and petrol, and 20% for octane.

"Considering the present demand for fuel oils, companies under the BPC have been instructed to sell at the increased rates to keep up the supplies at dealers' and consumers' levels," reads the notification.

The government raised the price of octane by Tk20 per litre, petrol by Tk19 and diesel by Tk15, effective from yesterday.

Earlier in parliament yesterday, Energy and Mineral Resources Minister Iqbal Hasan Mahmud Tuku blamed panic buying, stockpiling and black market activity for the shortages at filling stations.

He said there is no shortage of fuel in the country, but that an artificial crisis is being created.

Despite a sharp increase in fuel prices aimed at reducing the subsidy burden, motorists across Bangladesh continued to face long queues at filling stations and shortages yesterday, with no sign of an improvement in supply.

Many motorists had expected the price increase to be followed by higher supplies from depots to petrol stations, easing the shortages that have persisted for weeks. Instead, the situation remained largely unchanged.

Drivers and motorcyclists in Dhaka and elsewhere in the country were still waiting for hours at filling stations to obtain fuel.

At some filling stations, motorcyclists who joined queues at midnight on Saturday were only able to buy fuel yesterday afternoon. Even then, some said they had not been allowed to fill their tanks.

Measures taken by the Energy Division to tackle hoarding and black market sales, including appointing tag officers at filling stations, forming monitoring teams at district and upazila level and conducting mobile court operations, have so far failed to improve the situation.

Energy Adviser to the Consumers Association of Bangladesh (CAB) M Shamsul Alam said the ministry had created a narrative that "fuel reserves are overflowing and that there is insufficient storage space".

"Yet people are standing on the streets for hours without getting fuel. The Energy Division, the BPC, the Competition Commission, the Directorate of National Consumer Rights Protection and the law enforcement agencies are all standing like wooden puppets. There are no words to describe this," he told TBS.

Shamsul Alam said the public could have accepted the difficulties if the government had acknowledged that supply is being disrupted by the Middle East conflict, the dollar shortage and uncertainty over the Strait of Hormuz.

"Instead, the ministry has created the opposite narrative and is not even admitting there is a fuel shortage. That is proof of the government's serious inefficiency and inability to control the supply chain," he said.

Asked whether fuel supplies would be increased after the price rise, Energy and Mineral Resources Division spokesman Monir Hossain Chowdhury said, "We are often supplying more than the allocated amount. But unless panic buying stops, the situation will not return to normal."

Sajjadul Karim Kabul, president of one faction of the Petrol Pump Owners' Association, said depot supplies had not increased despite the higher prices.

"What is the point of raising fuel prices? The crisis will not end unless supplies increase. If they supplied fuel at full capacity for one week, everything would calm down," he said.

Kabul said officials appear worried that the Strait of Hormuz could be closed again and are therefore reluctant to release more fuel.

"We do not even know whether the government has the fuel. They keep telling the press that reserves are at their highest level in 50 years. If there are reserves, then release the fuel," he said.

Kabul said his 13,500-litre tanker had received only 9,000 litres from the depot and that the same situation had continued for the past three days.

The government's position also drew criticism in parliament.

Rumin Farhana, member of parliament for Brahmanbaria-2, accused the government of misleading the public.

Speaking on a point of order yesterday, she said: "The government keeps saying there is no fuel shortage, but the reality is completely different. There are queues stretching for three kilometres. Drivers are waiting until midnight and still not getting fuel. If there is no crisis, why are there such long queues? Why has the government increased fuel prices?"

Fahmida Khatun, executive director of the Centre for Policy Dialogue, told this newspaper that the price increase had been necessary because the government could no longer bear the cost of rising international fuel prices caused by supply disruptions.

"Consumers now want access to fuel without difficulty. The government must ensure adequate supply in order to normalise the situation," she said.

Countrywide paralysis

The shortage is not confined to the capital, according to TBS correspondents. Reports from Savar suggest that 75% of filling stations lacked octane and petrol by Sunday morning. Local officials claimed that while 68% of pumps had diesel, the concentrated demand on a few functional stations created a sense of panic.

The crisis has also hit the transport sector in Bogura, where goods-carrying trucks are unable to secure sufficient diesel, and in Barisal and Brahmanbaria, where pump owners report receiving no clear timeline from depots regarding when normal supply will resume.

At some stations, such as the SI Chowdhury Filling Station in Savar, managers reported receiving only one-third of their usual weekly octane allocation.

Economist Debapriya Bhattacharya yesterday urged the government to explain the intention behind recent revisions to the Bank Resolution Act, which now allow former owners to regain control of five Islamic banks being merged amid a severe liquidity crisis due to past irregularities.

At a session of the annual economists’ conference at BRAC Centre Inn in Dhaka, he said political authorities must set out their position in parliament and issue a clear statement explaining their intent.

Earlier this month, the House passed the revised Bank Resolution Act 2026, paving the way for former owners of the merging banks to reclaim control under relatively easy terms. The move has been widely viewed as a reversal of the interim government’s banking reform drive.

Under the law, former directors or owners can reclaim control by paying 7.5 percent of the funds injected by the government or the Bangladesh Bank upfront. The remaining 92.5 percent is to be paid within two years at 10 percent simple interest.

“I have no problem with the policy itself, but I want clarity,” Debapriya said at the conference organised by the South Asian Network on Economic Modeling (Sanem).

He said, “Even the central bank governor has not given a statement on this. So, instead of relying on our own interpretations, the authorities must speak.”

Debapriya, convenor of the Citizen’s Platform for SDGs, Bangladesh, said, “I am worried. I have already said over the past couple of days that we need a political statement on this issue. We need a discussion in parliament.”

“What we are doing now, what you, I, and others are saying, is based on our goodwill, but it is still just interpretation,” he said.

“I believe in political interpretation backed by commitment. That commitment should ensure that past problems or actors do not return. And this issue is not limited to today; it will affect the media tomorrow, and then oil and LNG imports the day after. It extends beyond banking; it affects the entire economy,” he further said.

“We have seen such patterns before. That is why I am looking for a clear political explanation, and wondering why the political leadership is silent,” added Debapriya, also a distinguished fellow at the Centre for Policy Dialogue (CPD).

He said the situation highlights a broader failure to pursue meaningful reform. If reforms are delayed further and pushed into a Five-Year Plan, the approach would be misplaced.

“Unfortunately, although I am also a member of that planning committee, I must say that now is the time for consolidation and reform in order to move forward,” he said.

Without reforms, including stronger revenue generation, better public spending and balanced deficit financing, he asked where the economy would go.

He also referred to findings in a white paper on the economy published by the interim government, which highlighted how deals were struck between politicians and businesspeople, especially around the Prime Minister’s Office.

Businesspeople observed such arrangements and thought, “Why shouldn’t I have a share in this?” he said, adding that some then tried to cut transaction costs by becoming directly involved, including awarding contracts to family members. Eventually, some even entered parliament themselves.

On the capital market, he suggested including not only multinational companies but also state-owned enterprises.

This, the economist said, could achieve two goals at once: raising funds in the short term, even if it feels like selling family silver, and strengthening the quality of listed shares to make the market more vibrant.

Researchers, businesspeople, economists, trade analysts and students from home and abroad took part in the discussion, which was moderated by Selim Raihan, executive director of Sanem.

‘BANK DEFAULT NOW EMBEDDED IN FINANCIAL SYSTEM’

At the session, Professor Rehman Sobhan, chairman of CPD, said banking reforms have been discussed since the time of President Ziaur Rahman, yet major defaults began then and have continued through successive governments.

Although it was once suggested that defaulters should not contest elections, laws were later introduced allowing them to do so if they made a 5 percent down payment and rescheduled loans.

This has resulted in a large group of defaulters in parliament who, he said, help block meaningful reform.

The CPD chairman added that bank default has now become embedded in the structure of the financial system and cannot be addressed simply by targeting a few crony capitalists.

He said legislation alone is not enough. Reforms must be translated into operational measures implemented by the bureaucracy, with outcomes monitored on the ground.

Prof Rehman Sobhan added that an active opposition should work with civil society to act as a watchdog over reform implementation. Ultimately, he said, the government must show genuine intent and build accountability from the Prime Minister’s Office down to the field level.

He said the ultimate test of accountability lies in the government’s willingness to subject its performance to a free, fair and inclusive election.

Mohammad Muslim Chowdhury, former Comptroller and Auditor General of Bangladesh, said that although banks such as Sonali, Janata, Agrani and Rupali were converted into public limited companies two decades ago, they continue to function largely as extensions of the government.

He suggested that these banks should be brought under a genuine corporate structure, merged if necessary, and eventually listed on the stock exchange after a thorough review of their asset quality and balance sheets.

He also called for bringing the Financial Institutions Division (FID) under the regulatory oversight of the Bangladesh Bank to prevent misuse of authority and strengthen supervision.

He further said the total number of banks should be reduced, with particular attention to those with weak balance sheets and negative net worth, through liquidation or other corrective measures.

The latest fuel price increase is expected to send shockwaves through much of the economy, lifting costs for farmers, transporters and manufacturers while offering only slight relief to the government finances and the exchange rate, according to an analysis by Brac EPL Stock Brokerage Ltd.

The brokerage estimates that seven out of nine key economic indicators it reviewed will face negative pressure. Only two areas, fiscal space and the dollar-taka exchange rate, are likely to benefit.

The government on Saturday night raised the prices of four fuels with effect from midnight. Diesel now sells at Tk 115 per litre, octane at Tk 140, petrol at Tk 135 and kerosene at Tk 130.

Bangladesh introduced an automatic, market-driven fuel pricing mechanism on March 7, 2024. Under the guidelines, prices are adjusted in the first week of each month based on the Mean of Platts Arab Gulf benchmark published by S&P Global.

For months, however, prices moved within a narrow Tk 1 to Tk 2 range in line with global markets. This time, the adjustment crosses over 15 percent, reflecting global price volatility amid conflicts in the Middle East.

Brac EPL estimates that a 15 percent increase across hydrocarbons could cut the subsidy bill by about Tk 700 crore a month at current price levels. That would ease pressure on public finances at a time when weak revenue collection and high operating costs have left the government with limited room to manoeuvre.

Lower subsidy requirements could also trim government borrowing, offering some support to the external balance and the exchange rate. But the impact is not straightforward, rather layered and uneven.

The immediate burden of the fuel shock will fall on irrigation, transport and power generation. North Bengal is in the middle of the Boro season, the largest paddy cycle of the year.

Irrigation there depends heavily on diesel and electricity. Higher diesel prices will raise cultivation costs unless offset by policy support or price adjustments.

Transport and logistics are equally exposed. Freight operators usually pass on higher fuel costs quickly, especially in goods transport. That, in turn, feeds into the prices of agricultural produce, consumer goods and manufactured items.

Although diesel-based generation accounts for less than 2 percent of total power output, its share can rise during peak demand, especially as liquified natural gas (LNG) shortages drag on. Higher generation costs may be passed on to consumers or absorbed through fresh subsidies, according to the report.

It said there could be second-round effects too. Dearer transport, irrigation and energy will add to inflationary pressures already stoked by high imported food prices.

The brokerage said that rising inflation expectations could push up yields on government securities and lift borrowing costs for companies if not carefully managed.

Higher inflation and interest rates, according to the report, would weaken demand, lower output, and leave factories running below capacity, which may ultimately translate into slower GDP growth.

While the country usually depends on long-term supply contracts, diesel, which accounts for nearly 65 percent of hydrocarbon consumption, is increasingly sourced from the volatile spot market.

Because geopolitical tensions have disrupted trade routes, with some suppliers declaring force majeure amid infrastructure damage and shipping blockade through the Strait of Hormuz.

The country’s sole crude oil refinery, Eastern Refinery Limited, has an annual capacity of 1.5 million tonnes and meets about 20 percent of domestic demand across 16 fuel products.

The refinery is currently running well below capacity because of crude shortages and is unlikely to scale up production before May this year.

Besides, existing trade agreements with the US limit Bangladesh’s ability to diversify its fuel sourcing, creating added pressure on procurement.

Brac EPL said reliance on spot purchases, low refinery utilisation and limited sourcing options could prompt further price increases, though at a slower pace.

Bangladesh is seeking an additional $2 billion in external support to cushion exposure to volatile fuel markets, ease foreign exchange pressure, and gradually reduce subsidies.

In the meantime, the country has secured a 60-day waiver from the United States to import fuel from Russia and has sourced 100,000 tonnes from Kazakhstan at around $75 a barrel.

Economist Rehman Sobhan today (19 April) said Bangladesh's loan defaulters have become embedded in the political system and are now creating barriers to financial and institutional reforms.

"Loan defaulters have become part of the political structure. They themselves are obstructing reforms. So the problem is no longer person-specific, it is structural," he said on the final day of the three-day 9th South Asian Network on Economic Modeling (Sanem) Annual Economists' Conference in Dhaka.

"Reform is not merely about passing laws, but a continuous process requiring implementation, enforcement and measurable outcomes," he added at the session titled "Romancing the Reform: The Bangladesh Story", held in Dhaka today.

Sobhan said many reform efforts fail because governments do not follow through after legislation. "The first step of reform is enacting laws, followed by building the necessary administrative framework, ensuring proper enforcement and finally evaluating results."

The session was moderated by Sanem Executive Director Selim Raihan. The keynote paper was presented by CPD Distinguished Fellow Debapriya Bhattacharya, while former Finance Secretary and former Comptroller and Auditor General Mohammad Muslim Chowdhury served as designated discussant.

Debapriya said Bangladesh has pursued multiple reforms since independence but progress has been slowed by what he termed a "kleptocratic legacy" of corruption, misuse of public resources, weakened institutions and collusion among political, bureaucratic and business elites.

He said reforms often fail due to weak political ownership, poor implementation capacity, vested interests, lack of consultation, corruption, financing constraints and weak accountability.

Referring to the interim government, he said despite strong rhetoric, it failed to establish a coherent reform framework, lacked an integrated economic vision and did not create a real-time system for citizens to monitor progress.

Banking sector at center of crisis

Debapriya said the banking sector has become one of the clearest examples of how reform plans are derailed during implementation. He said rising non-performing loans (NPLs) are weighing heavily on the economy, while repeated attempts to restructure weak banks have been blocked by political resistance.

"The government has finally disclosed the names of major defaulters. But the real question is what to do with banks that have effectively collapsed," he said.

He also criticised amendments to the Bank Resolution Act, saying the changes created an opportunity for former owners of failed banks to regain influence by injecting a relatively small amount of money.

"This is seen as the comeback of oligarchs in a new form, with political patronage," he said, warning that such policy reversals send the wrong signal when depositors and investors need confidence.

He also criticised overlapping administrative control in the sector, saying governance reforms have been delayed for too long. "Good intentions are not enough. If banking reforms are delayed again, the cost to the economy will be much higher," he warned.

However, he welcomed promises of greater central bank autonomy, stronger supervision, action against defaulters and depositor protection, but questioned whether those commitments would be implemented.

Reform needs political commitment

Rehman Sobhan said political parties make major reform promises during elections, but it remains unclear whether they have the leadership or commitment to deliver them.

He said past reforms succeeded only when they had strong public support, citing the Six-Point Movement as an example of a widely backed reform agenda.

He added that such mobilisation is now weak, with parties failing to effectively communicate manifestos to voters. "In many cases, even party members do not properly know their own manifesto," he said.

Questioning the policy debate culture, Sobhan asked how many commentators have direct government experience, arguing that reform cannot be fully understood without working inside the state. "Without that experience, it is hard to know who supports reform, who resists it, and why it fails," he said.

Recalling his time at the Planning Commission, he said passing reform laws was not the main challenge.

Using police reform as an example, he said success should be measured by outcomes in practice. If accountability mechanisms are introduced, their effectiveness must be tested over time by citizens and journalists, he said. "That would be the real test of reform," he added.

Sobhan said many reform proposals promoted by the World Bank and the International Monetary Fund (IMF) are not new, but have been discussed for decades under successive governments.

According to him, governments often show limited progress to unlock loan disbursements, while development partners also have an interest in showing money has been spent.

"What actually happens in the long run is rarely examined," he said.

Need for performance budgeting

Sobhan said he has repeatedly proposed performance-based budgeting to show citizens what outcomes are achieved through public spending. "At present, we only see expenditure figures, with little analysis of results," he said.

Referring to health and education, he said allocations are often underutilised even as complaints persist over inadequate budgets. "If allocated money is not spent properly, where is the real problem?" he asked.

Citing India, Sobhan said major reforms such as the right to food, education and work were driven by strong citizen movements. In Bangladesh, he said civil society remains fragmented and unable to build unified pressure for large-scale reform.

He described the democratic process as the ultimate test of reform, calling for free, fair and inclusive elections. "A government becomes truly accountable when it accepts the people's verdict."

Amid ongoing domestic and global challenges, businesses have urged the government to ensure that the upcoming national budget for the 2026-27 fiscal year is supportive and growth-oriented rather than “punitive”.

They also called for a reduction in effective tax rates, including turnover tax, and stressed the need for a balanced and pragmatic tax policy to encourage investment and economic expansion.

The demands were made at a pre-budget seminar on private-sector priorities in Dhaka, jointly organised by the Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI), and the Economic Reporters’ Forum (ERF).

“In the current global and domestic economic context, we are going through a challenging time,” said Kamran T Rahman, president of MCCI.

High inflation, sluggish investment, elevated interest rates, and pressure on foreign exchange have made doing business difficult, he said, adding that small and medium enterprises are the worst affected.

He said the budget should focus on boosting investment and job creation, urging a further 2.5 percentage point cut in corporate tax for both listed and non-listed companies and the removal of the cash transaction condition.

Rahman also proposed introducing a “Unified Taxpayer Profile” to replace separate tax, VAT, and customs systems, which he said would reduce complexity and harassment.

Golam Mainuddin, chairperson of Apex Footwear Limited, said the tax burden remains disproportionately high on compliant taxpayers.

Habibullah N Karim, senior vice-president of MCCI, said, “This is an opportunity to rethink our taxation paradigm; high rates often discourage compliance.”

“Bangladesh once had such high-income tax rates that no one paid at the top bracket. When rates were reduced, collection increased and it could rise further if rates are lowered again,” he added.

Citing VAT, he noted, “If rates come down from 15 percent, more businesses will comply, and overall collection could increase.”

“There is a huge scope to expand the tax net, but a rent-seeking culture within the tax administration remains a major barrier.”

“Without making the system service-oriented and addressing this culture, even automation will not deliver effective results,” he said.

Malik Mohammed Sayeed, chief executive officer of Square Toiletries Limited, called for retaining tax exemptions on sanitary napkins and diapers.

He also urged a reduction in taxes on imported raw materials to around 10 percent, as key inputs are not locally produced and require large-scale investment.

Asif Ibrahim, former president of the Chittagong Stock Exchange, said, “Investment has stagnated. Without protecting domestic investors, foreign investment will not come.”

He noted that declining private-sector credit growth is a concern, and financial sector reforms are needed.

“We expect the budget to support both domestic and foreign investment through a collaborative approach to drive growth and jobs,” he said.

Former NBR chairman Muhammad Abdul Mazid stressed policy predictability, saying businesses need clarity on tax rates in advance.

ERF President Doulot Akter Mala warned of a potential revenue shortfall of nearly Tk 100,000 crore this fiscal year, cautioning against overly ambitious targets in the next budget.

Business leaders have called for the urgent appointment of a private-sector administrator and swift elections at the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), warning that prolonged administrative uncertainty is weakening the country’s apex trade body and undermining the interests of the private sector.

They made the call at a meeting with Commerce Minister Khandker Abdul Muqtadir at the commerce ministry today.

The FBCCI has been run by an administrator for the past two years following the political changeover on August 5, 2024.

At today’s event, Mohammad Hatem, president of the BKMEA, stressed the need to appoint an experienced businessperson as administrator of the FBCCI, instead of a government official, so that the concerns of the business community can be addressed more effectively.

He emphasised greater engagement with businesses in policymaking, particularly in the trade and industrial sectors, and highlighted the need to ensure the federation remains active, inclusive, and responsive to all business groups.

Hatem also underscored the urgency of restoring effective leadership through timely elections, warning that prolonged uncertainty is undermining business confidence.

He said the apex trade body must function as a strong and credible representative of the private sector, especially at a time when businesses face multiple domestic and global challenges. Without an elected committee, he noted, the organisation cannot effectively carry out its role in policy advocacy and coordination.

He called for prompt steps to hold elections and restore normal operations, adding that representative leadership would better protect business interests and support economic growth.

Md Zakir Hossain, general secretary of the Bangladesh Supermarket Owners’ Association, also called for the immediate appointment of a new administrator for the FBCCI from within the business community, saying the association has become ineffective under the current setup.

He said the organisation has effectively been left “without guardianship” following consecutive government-appointed administrators. While a previous administrator, Hafizur Rahman, initiated reforms and announced an election schedule, the process was later stalled due to legal challenges from business leaders.

Hossain acknowledged shared responsibility within the business community but warned that prolonged uncertainty is hurting small and medium enterprises the most. “Large businesses can directly approach ministries, but SMEs depend on FBCCI,” he said.

He criticised current administrator Abdur Rahim for limited engagement, calling for a full-time, business-backed administrator. He added that elections should be held quickly, with any rule-related issues addressed either before or after polls by an elected committee.

Abdul Haque, president of the Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA), also called for the immediate holding of elections at the FBCCI, saying prolonged delays are harming the private sector.

He said the federation has been without an elected committee for nearly two years, calling the situation detrimental to the business environment. “In an economy where around 80 percent is driven by the private sector, the absence of elected leadership in its apex body is unacceptable,” he said.

Haque warned that several policies have been adopted without adequate private-sector input and could have negative impacts. He particularly flagged the long-pending import policy, urging a thorough review.

While acknowledging shared responsibility, he urged the government to appoint a private-sector administrator and hold elections swiftly. Citing the 2006–07 caretaker period as precedent, he said timely action is both possible and necessary.

In response, Commerce Minister Khandker Abdul Muqtadir called for transforming the FBCCI into a truly representative, effective, and non-political body for the business community.

He said the association must play a more proactive role in protecting business interests and conveying concerns to the government, while applying constructive pressure when needed without being politicised.

“We want an FBCCI that genuinely serves as a unified platform for all businesses,” he said, adding that it should provide practical, ground-level input in policymaking.

Muqtadir stressed that competent and dynamic leadership from within the business community is essential to revitalise the organisation. He also reassured leaders of the government’s commitment to a business-friendly environment, noting that a new import policy is in its final stage and that committees will be formed to simplify services across key ministries.

At the meeting, FBCCI Administrator and Additional Secretary (export) Md Abdur Rahim Khan also spoke.

Among the business leaders present were former FBCCI president Mir Nasir Hossain, former BKMEA president SM Fazlul Haque, former FBCCI director Nasreen Fatema Awal, Bangladesh CNG Machineries Importers Association president Zakir Hossain Nayan, former FBCCI director Gias Uddin Chowdhury Khokon, former Rangamati Chamber president Belayet Hossain Bhuiyan, former FBCCI vice-president Nizam Uddin Rajesh, and former director Syed Bakhtiar.

Bangladesh’s mobile operators have warned of an imminent nationwide telecom disruption as a deepening electricity and fuel crisis pushes networks to the brink, raising serious concerns over the vulnerability of data centres and the wider digital economy.

In an urgent letter to the Bangladesh Telecommunication Regulatory Commission, they said the situation has “reached a point where continued telecom operations can no longer be sustained without immediate government intervention.”

The warning, issued by the Association of Mobile Telecom Operators of Bangladesh (AMTOB), comes as prolonged outages -- often lasting 5-8 hours daily during storms -- force operators to run critical infrastructure on diesel generators.

According to the letter, seen by The Daily Star, base transceiver stations (BTS) alone are now consuming over 52,000 litres of diesel and nearly 20,000 litres of octane daily across operators.

A shutdown would “critically disrupt emergency services, disaster response, law enforcement coordination, financial transactions, digital governance, and economic activity.”
Providing a breakdown, it stated that the country’s largest telecom operator Grameenphone consumes 28,079 litres of diesel and 9,254 litres of octane, Robi Axiata uses 13,140 litres of diesel and 5,610 litres of octane, and Banglalink requires 11,206 litres of diesel and 4,995 litres of octane daily to keep towers operational.

The most acute vulnerability, however, lies in data centres and switching facilities – the core of the country’s digital infrastructure.

“Core telecom infrastructure including data centres, switching facilities, and transmission hubs are frequently operating without grid power, posing serious risk to network stability,” the AMTOB said.

Each data centre consumes an estimated 500-600 litres of diesel per hour, translating to around 4,000 litres per day per facility, according to the letter.

Combined daily consumption for data centres and switching hubs has already surged to 27,196 litres, with Grameenphone, Robi and Banglalink accounting for 11,184, 9,732 and 8,200 litres respectively.

Industry insiders say this level of dependence on backup power is unsustainable.

Unlike BTS towers, data centres host critical systems such as call routing and internet traffic management. Any disruption at this level can trigger cascading failures across networks.

“If fuel can’t be managed and data centres go offline, it would cause widespread call drops, internet outages, and service blackouts,” said an official of an operator on condition of anonymity.

Tanveer Mohammad, chief corporate affairs officer of Grameenphone, echoed the concern.

Noting that operators are experiencing challenges in electricity and fuel availability, he said, “The evolving situation calls for timely and targeted measures to sustain uninterrupted telecom services nationwide.”

He said in order to “proactively avoid disruptions to essential services for millions”, they need further support from the government for priority electricity access to critical infrastructure, streamlined fuel supply, and facilitation of fuel transportation for emergency operations.

The consequences could extend far beyond communication breakdowns. The AMTOB cautioned that a shutdown would “critically disrupt emergency services, disaster response, law enforcement coordination, financial transactions, digital governance, and economic activity.”

Bangladesh’s fast-growing digital economy -- heavily reliant on mobile connectivity -- would be particularly exposed. Mobile financial services, e-commerce platforms, ride-sharing apps, and cloud-based enterprise systems depend on uninterrupted network availability. A prolonged outage could halt transactions, delay salary disbursements, and paralyse logistics chains.

The crisis is being compounded by fuel supply constraints. Local stations cannot provide volumes at this scale, the letter noted, and law enforcement barriers during inter-district transport have further disrupted supply lines.

“Multiple strategically vital telecom facilities are currently running on dangerously low fuel reserves,” it warned.

The operators’ association called for immediate government intervention, including uninterrupted electricity supply to key telecom facilities, priority power status for mobile towers, and direct fuel allocation from depots.

They also urged authorities to ensure smooth fuel transportation.

“Issue immediate written directives to LEAs (law enforcement agency) to ensure uninterrupted fuel transportation for emergency telecom operations,” they said in the letter.

“The telecom network is the backbone of national communications, public safety, governance, and emergency response. Any prolonged disruption will have severe and potentially irreversible consequences for the country,” they added.

They proposed that authorities hold an urgent high-level coordination meeting involving the power and energy divisions, fuel authorities, regulators, and operators.

There are 46,567 telecom towers in Bangladesh, operated by tower infrastructure companies and mobile operators, providing network coverage to over 18.58 crore customers. Operators have around 27 data centres across the country.

An acute shortage of ammonia has closed down production at the state-owned DAP Fertilizer Company Limited (DAPFCL), marking a fresh setback for the country’s fertiliser supply chain, officials said.

The closure of five of the country’s six urea factories is behind the crisis, they claimed.

The ammonia needed for production at the factory is primarily sourced from Chittagong Urea Fertilizer Company Limited (CUFL) and Karnaphuli Fertilizer Company Limited (Kafco).

These two fertiliser factories were among the five shut down in early March, as a precaution amid fears of gas supply disruptions caused by geopolitical tensions in the Middle East. They are yet to resume operations, and ammonia supply to the DAP facility remains cut off.

The DAP plant exhausted its stock of the indispensable raw material on Saturday. Fertiliser output had stopped around 7:00 pm, Deputy General Manager (Commercial) Robiul Alam Khan confirmed.

“If gas supply to those plants resumes, they can restart production, and we will receive raw materials again. There is no alternative source at the moment,” he told The Daily Star.

DAP production requires phosphoric acid and ammonia.

“We have sufficient phosphoric acid in stock, but without ammonia, production cannot continue,” Robiul Alam Khan added.

Typically, the plant produces around 500 tonnes of fertiliser daily using imported phosphoric acid and ammonia supplied by Kafco and CUFL.

The most recent batch of 3,000 tonnes of ammonia from Kafco had sustained production till Saturday, Khan said.

DAPFCL had managed to continue operations for nearly one and a half months using existing stock, but was forced to shut down after the reserves ran out.

Located in Rangadia of Anwara upazila in Chattogram, DAPFCL operates under the Bangladesh Chemical Industries Corporation (BCIC) of the Ministry of Industries.

Established to meet domestic demand for nitrogen and phosphorus-based fertilisers, the plant has been in commercial operation since 2006 and remains the country’s only DAP-producing plant. It has two units with a combined production capacity of 800 tonnes per day.

The plant produced around 92,600 tonnes of DAP in fiscal year 2023-24 and about 49,500 tonnes in fiscal year 2024-25, reflecting a sharp decline amid supply disruptions.

According to BCIC and the Ministry of Agriculture, the country’s total annual fertiliser demand is estimated at 6.5-6.9 million tonnes, including 2.7 million tonnes of urea, 752,000 tonnes of TSP, 1.507 million tonnes of DAP, 2.6 million tonnes of NPKS and 987,000 tonnes of MOP.

Around 1.4 million tonnes of DAP are imported. A significant portion comes from Morocco, Tunisia, China, and Saudi Arabia.

BCIC officials said geopolitical tensions in the Middle East and disruptions in shipping through the Strait of Hormuz have created uncertainty over timely imports.

Authorities initially shut five urea fertiliser factories for 15 days from March 4 as a precaution amid concerns over gas supply disruptions linked to the Middle East conflict and the Strait of Hormuz closure.

However, the shutdown has stretched well beyond the initial timeline, with plants still idle after more than six weeks.

Even Kafco, initially operating at limited capacity, was forced to suspend production late last month due to worsening gas shortages.

BCIC officials said around 197 million cubic feet of gas per day are required to run the five major urea plants at full capacity, underscoring the severity of the supply crunch.

“We have been unable to produce around 7,100 tonnes of fertiliser daily from these plants for the past one and a half months,” BCIC Director (Production and Research) Md Moniruzzaman said.

He added that gas supply to Shahjalal Fertilizer Company Limited and CUFL is expected to resume from May 1.

“Once ammonia production restarts, we expect the DAP plant to receive feedstock and resume operations,” he said.

Despite repeated notices and a High Court directive, People's Leasing and Financial Services has failed to recover any dues from four former directors who collectively owe Tk1,785 crore.

The non-bank financial institution is now moving towards legal action to recover the long-overdue loans.

"We sent multiple letters to the permanent addresses of the four directors requesting repayment but have not received any response," managing director Md Sagir Hossain Khan told The Business Standard. The court gave them six months to repay, but the January deadline passed without compliance.

"Action is being taken under prevailing laws. Legal notices have already been served, but no response has been received. It has been decided to file cases, which are also in process," he added. "The company has also filed a fresh petition seeking further directions from the court."

The four directors

Recovery efforts have been complicated by the status of the accused directors. Former chairman Motiur Rahman and former director Khabir Uddin have died. Another director, Bishawjit Kumar Roy, remains absconding and his whereabouts remain unknown. Arafin Samsul Alamin remains active in business as a director of Shamsul Alamin Real Estate and managing director of SA Spinning Mills.

A special forensic audit, ordered by the court in 2021, revealed that the four sponsor-directors alone accounted for Tk1,413 crore of the Tk2,800 crore outstanding to major defaulters as of 2022.

The audit, conducted by MABS & J Partners covering 2009-2022, was submitted in January last year. Based on its findings, the High Court's company bench in January 2022 directed the defaulters to clear their dues within six months. The order was later published on the company's website in September.

According to the audit, outstanding loans as of 2022 were Tk565.47 crore for Motiur, Tk404.38 crore for Khabir, Tk415.66 crore for Arafin, and Tk28.47 crore for Bishawjit. By March 2026, the total outstanding to these four had risen to Tk1,785 crore.

The report detailed the nature of borrowing: Arafin and Bishawjit took direct loans, Motiur availed both loans and margin loans for share trading, while Khabir Uddin borrowed solely for share trading.

Motiur was chairman of MK Group, a major importer of fertilisers and commodities, while Khabir was engaged in jewellery and real estate development, according to the company's 2014 annual report.

Attempts to reach Arafin were unsuccessful. A woman who answered his phone denied that the number belonged to him and disconnected the call after the reporter identified himself.

Managing Director Sagir said the audit exposed deep-rooted governance failures. "The company's directors colluded among themselves to take loans and diverted funds from People's Leasing," he said.

"Some loans had collateral, while others had none. Even where collateral exists, it is negligible compared to the loan amount. We also found that for 65% of the loans, the required collateral was not provided, which has severely damaged the institution," he added.

Struggles of People's Leasing

People's Leasing has been struggling for years under the weight of non-performing loans, negative interest margins, operating losses, and mounting obligations to depositors. Since 2015, it has not paid dividends due to continuous losses.

Following a petition by Bangladesh Bank under the Financial Institutions Act, the High Court in July 2019 placed the company under liquidation. That order was later recalled in July 2021, when the court formed a new board, which has since been restructured to manage the institution.

The company's 2024 annual report, citing the forensic audit, pointed to widespread financial irregularities, systemic governance failures, and gross mismanagement. These included irregular loan approvals and disbursements, inaccurate interest calculations, unapproved waivers, dubious loan adjustments, regulatory non-compliance, and unreliable financial statements.

It also highlighted the involvement of former directors, board-level oversight failures, and negligence by officials, noting that repeated warning signals from external auditors since 2014 had been ignored.

In response to a query from the Dhaka Stock Exchange, People's Leasing said the current board and management have been working to stabilise the institution.

Since July 2021, around Tk200 crore has been recovered from default borrowers, while Tk85-90 crore has been repaid to depositors in phases. The third phase of repayment has also begun.

The company said its financial distress stemmed largely from irregularities, weak governance, and non-performing loans disbursed before 2019, with the forensic audit identifying significant liabilities linked to former directors.

As part of revival efforts, the company has sought around Tk750 crore in government support following court directives involving Bangladesh Bank and the Ministry of Finance. It has also resumed limited lending on a fully secured basis, disbursing approximately Tk25 crore in new loans so far.

Global finance leaders, whipsawed by Middle East war ​news, came to grips this past week with their inability to mitigate the economic damage from increasingly frequent geopolitical shocks, and a realization that counting on U.S. leadership to resolve crises is no longer ‌the guarantee it had long been.Finance committee reports

At International Monetary Fund and World Bank Spring Meetings in Washington, participants swung from gloom over a worsening global economic outlook due to deepening energy price and supply shocks to tentative optimism as it appeared Iran may reopen the Strait of Hormuz and allow flows of oil, gas, fertilizer and other commodities to resume.

By Saturday that optimism was already fading amid new attacks on shipping.

The IMF and the World Bank pledged up to a combined $150 billion in new financing assistance for developing countries hit hardest by the massive energy price shock, and celebrated ​their re-engagement with Venezuela’s acting government after a seven-year pause.

They warned countries not to hoard oil and not to go overboard with expensive and untargeted fuel price subsidies. But in the end, there was not much they ​could do but watch statements from Tehran and the White House.

“Actually some of the most important decisions on the global economy are not happening here,” Josh Lipsky, international economics chair ⁠at the Atlantic Council, said of the IMF and World Bank campus.

“The single most important development in the global economy happened between the U.S. and Iran,” he said. “We hope it’s good news, and we’ll wait and see.”Economy news updates

Despite buoyant stock markets ​and a sharp drop in oil futures prices on Friday, Saudi Arabia’s Finance Minister Mohammed Al-Jadaan summed up the mood of many officials when he said he would not be comfortable predicting an improved outlook until tankers start moving freely through the ​strait again with reasonably priced insurance and physical energy prices dropping.

“If the clear waters are open,” Al-Jadaan told a news conference, “I think that’s what would trigger, for me, a change in the scenario.”

As soon as the IMF released a mild cut in its global growth forecast for 2026 to 3.1% under the most optimistic of three scenarios it devised for the task, it said that was already outdated and that the global economy was drifting towards a more adverse growth scenario of just 2.5%. The fund’s latest World Economic Outlook said a prolonged war could push the ​global economy into recession.

SHOCK AFTER SHOCK

Before the U.S. and Israel launched attacks on Iran at the end of February, the global economy had just been recovering from last year’s shock from President Donald Trump’s wave of steep tariffs on global trading ​partners.

Discussions of trade tensions were more muted at this year’s meetings, as was Russia’s war on Ukraine, though G7 finance ministers pledged to keep up pressure on Russia.

But a constant drumbeat of shocks that started with the COVID-19 pandemic in 2020 and Russia’s invasion of Ukraine ‌in 2022 was ⁠teaching countries the U.S. is no longer “the general” of the international order and would not necessarily provide solutions, Lipsky said.

U.S. Treasury Secretary Scott Bessent on Friday launched an initiative calling for G20 countries, the IMF and World Bank to take coordinated action to ensure adequate access to fertilizers amid supply disruptions from Gulf countries. But seven weeks after the war’s start, that will do little to ease shortages and high prices for farmers now planting spring crops across the Northern Hemisphere.

Kevin Chika Urama, chief economist at the African Development Bank, said the Middle East crisis provided a fresh imperative for African countries to deepen regional trade and economic ties, work on alternative energy sources, expand their domestic tax bases, and tap into enormous natural gas reserves.

“Geopolitical tensions are ​the new normal and uncertainty in policymaking has become certain,” ​he told a panel with other chief economists from ⁠the multilateral institutions.

NOT OUR WAR

Finance ministers, central bankers and other officials attending the meetings expressed frustration at being thrust into another economic calamity by Trump’s actions.Finance committee reports

Behind closed doors, officials, particularly from Europe, sent a clear message to the U.S. that Washington needed to take action to reopen the strait, a senior finance official who attended the meetings said. In public, the comments ​were more diplomatic with less finger-pointing.

“The knot of this conflict is the Strait of Hormuz. We need this to open, but not at any price,” French Finance Minister Roland ​Lescure told reporters. “I don’t want to ⁠pay a dollar to go through the Strait of Hormuz.”

Successive shocks, including this war, have scrambled planning for developing economies “and you hardly have time to breathe,” Retselisitsoe Adelaide Matlanyane, Lesotho’s Minister of Finance and Development Planning, said during a panel of African ministers.

“For small, open, and vulnerable economies like Lesotho, these shocks have presented extraordinary pressures on the fiscals, on prices and on everything.”

Matlanyane said managing debt has now become very complex and the tensions have “brought on a sense that we have to rethink policy and we have to think differently.”

“It’s ⁠frustrating dealing with ​this,” she told Reuters.

For Thailand, a net energy importer that will host IMF and World Bank annual meetings in October, the lingering effects of ​destroyed Gulf oil and gas infrastructure will keep prices elevated for a long time, said Ekniti Nitithanprapas, deputy prime minister of Thailand.

But he said the crisis was an opportunity for Thailand to reduce its reliance on fossil fuels and boost the role of renewable energy, including solar farms - the opposite of ​Trump’s energy agenda.

“We need to commit to transform...to help people transform to face the new fragmented world and high oil prices,” Nitithanprapas said.

The ongoing fuel crisis is disrupting irrigation for the ongoing boro season across multiple districts, with farmers and pump owners struggling to secure diesel at a critical stage of crop growth.

In districts including Brahmanbaria, Bogura, Naogaon, Rangpur, Sirajganj, Tangail and Khulna, farmers say diesel supply has fallen short, forcing them to wait for hours at filling stations or return without fuel. In many areas, diesel is being sold at Tk120-130 per litre, above the government rate, while in some cases it is not available even at pumps.

The shortage is delaying irrigation and increasing costs, as farmers are forced to buy diesel at higher prices or collect fuel from multiple sources. Power outages lasting seven to eight hours a day in some areas are also preventing electric pumps from operating, adding pressure on diesel-run irrigation systems.

Authorities have introduced measures such as priority cards and certification from the Department of Agricultural Extension (DAE) to manage supply. However, farmers say they are still not getting adequate fuel. Some pump owners also said they have not received such cards, while others said the supply does not match official claims of availability.

With most irrigation dependent on diesel, farmers say fields are drying due to delayed watering, crop growth is slowing at the paddy heading stage, and the risk of lower yields is increasing. Some also alleged that parts of the fuel supply are controlled by syndicates, contributing to scarcity, and called for stronger monitoring.

High diesel prices in Brahmanbaria

Farmers in Brahmanbaria are struggling to irrigate boro fields amid diesel shortages and load-shedding.

Pump owners said diesel is not available as required, while electric pumps cannot run due to power outages. Diesel is selling at Tk125-130 per litre in local markets.

Boro has been cultivated on 111,770 hectares in the district this season, with 4,338 diesel-run and 4,287 electric pumps in use.

Load-shedding has increased in rural areas, with many areas facing power cuts for seven to eight hours daily. As a result, electric irrigation pumps cannot be operated regularly.

The shortage has intensified since mid-March, with diesel often unavailable at filling stations and sold at higher prices when available.

Abdul Aziz from Ibrahimpur village in Nabinagar upazila said, "Diesel is available at Tk125 per litre, so we have to charge farmers more," adding that irrigation cost per kani has risen from Tk4,000 to Tk5,000.

Another farmer, Abdul Hannan from Akhaura upazila, said, "We cannot run pumps continuously and often have to collect diesel from different places, which increases costs."

Long queues in north

In Bogura, Angur Begum from Kagail area of Gabtali upazila said collecting diesel has become difficult, with long queues at filling stations and prices Tk10-15 higher per litre.

In Naogaon, a card system has been introduced to prioritise diesel supply, but farmers say supply remains inadequate. Rustam Ali from Bhimpur area of Naogaon Sadar upazila said, "We have to wait for hours, and it is becoming difficult to continue cultivation."

According to the Department of Agricultural Extension (DAE), most irrigation systems in the region depend on diesel, and the shortage is severely disrupting irrigation. The district has set a target to cultivate boro on 132,410 hectares this season.

In Rangpur, Abdul Malek from Gangachara upazila said diesel is not being sold even when farmers go to filling stations with containers. "Farmers are in a difficult situation. If we cannot irrigate on time, the entire crop may be lost," he said, alleging that some dishonest traders are involved in a fuel syndicate and calling for stronger monitoring.

In Sirajganj, Naim Sheikh from Telkupi village in Khokshabari union said he sometimes buys diesel at Tk120 per litre after waiting for hours, as demand has increased at a critical stage of paddy growth.

Shahidul Islam from Barakandi village in Kamarkhand upazila said pump owners are reducing irrigation to cut costs due to the shortage. "This may lead to lower yield," he said.

50,000 pump owners 'face shortage' in Tangail

More than 50,000 diesel-run irrigation pump owners in Tangail are facing difficulties due to a fuel shortage during the boro season.

Ayub Khan from Gopalkeutail village in Tangail Sadar upazila said diesel is selling at Tk130 per litre against the government rate of Tk100, but remains unavailable. "Paddy is at a critical stage and lack of irrigation could cause losses," he said.

Local residents said the shortage has led to long queues at filling stations, with some remaining closed for one to two days.

Khokon Mia from the same village said he often travels long distances but returns without fuel. "We have not been able to meet demand for weeks," he said, adding that he received only 20 litres after waiting several hours.

"The situation on the ground does not match official claims of adequate supply," he added.

Md Azad Ali and Abdur Rouf from Omorpur village said they have not received farmer cards and already struggle to recover costs from paddy cultivation, adding that the diesel shortage would further increase losses.

Hours of wait even with certification in Khulna

Farmers in Khulna are struggling to get sufficient diesel despite certification from the Department of Agricultural Extension (DAE), often returning with small amounts after waiting for hours.

Gouranga Mondal from Basurabad village in Sadar union of Batiaghata upazila said he has not been getting diesel for 15 days. "Even with certification, I got diesel worth only Tk500 after waiting in line. Without irrigation at this stage, yield will fall," he said.

Debabrata Mondal from the same village said crop growth has slowed as he could not irrigate for 10 days. "The agriculture office says the shortage is due to the ongoing conflict," he said.

Dip Narayan Biswas from Debitala village said he received 60 litres after 13 days using certification. "This will last a few days, but I do not know what will happen next," he said, adding that watermelon cultivation would face losses without regular irrigation.

Bangladesh’s liquefied petroleum gas (LPG) sector has grown rapidly, yet lacks the storage capacity to buffer itself against global market shocks, according to the president of the LPG Operators Association of Bangladesh (LOAB).

“Expanding storage capacity is essential for improving supply security,” Mohammed Amirul Haque said in an interview with The Daily Star recently. “If operators can store larger volumes, they can better manage fluctuations in global supply and price movements.”

According to industry estimates, Bangladesh currently consumes around 17-18 lakh tonnes of LPG annually. Around 80 percent of this demand comes from households, mainly for cooking in areas where natural gas through pipeline is unavailable. Industrial, commercial, and autogas use together account for the remaining share.

Haque, also the managing director of Delta LPG Limited, said the country’s transition toward LPG took place over the last decade after the government decided to permanently halt new pipeline gas connections to households in order to manage limited domestic gas reserves.

He, however, pointed out that the industry’s dependence on imports means that the entire supply chain, from procurement to pricing, remains highly sensitive to global market conditions.

“Geopolitical tensions, disruptions in shipping routes, or volatility in international benchmark prices can directly affect supply costs and domestic pricing,” he said.

Most LPG used in Bangladesh is sourced from the Middle East, with prices typically linked to the Saudi Aramco Contract Price, which serves as a reference point for global LPG trade. Changes in that benchmark are quickly transmitted to the domestic market, leaving consumers exposed to international volatility.

“Any disruption in the international supply chain can affect Bangladesh’s LPG market because we do not have significant domestic production,” Haque said. “Even freight costs and insurance premiums can change depending on geopolitical developments, which ultimately affects the landed cost of LPG.”

Disruptions along major shipping corridors such as the Strait of Hormuz or the Red Sea can have immediate repercussions on global LPG trade flows.

When global shipping rates rise, the additional cost is reflected in the final price of LPG in the domestic market.

Haque argued that the country’s growing LPG demand has intensified the need for stronger storage and distribution infrastructure. Currently, most operators rely on coastal storage terminals and bottling plants to distribute LPG cylinders across the country.

“Expanding storage capacity is essential for improving supply security,” he said. “If operators can store larger volumes, they can better manage fluctuations in global supply and price movements.”

Without sufficient storage, the market remains more vulnerable to sudden price spikes or supply delays, he added.

Diversifying import sources is another important strategy for reducing supply risk, the LOAB president also said, noting that Bangladesh relies heavily on a relatively small number of international suppliers.

By broadening procurement sources and strengthening supply agreements with multiple exporting countries, the industry could reduce its exposure to regional disruptions, he said.

Haque also called for infrastructure improvements at ports and terminals to support the continued expansion of the sector, noting that such logistical bottlenecks can slow shipment movement and increase costs.

Domestically, he said, private sector investment has played a major role in expanding LPG infrastructure across Bangladesh. Over the past decade, operators have invested heavily in bottling plants, storage facilities and distribution networks to support the growing market.

However, regulatory stability and predictable pricing mechanisms are also crucial for maintaining investor confidence in a market that is closely tied to global energy dynamics.

Local LPG prices are regulated by the Bangladesh Energy Regulatory Commission, which adjusts retail prices in line with international benchmarks. While this mechanism provides transparency, sudden changes in global prices can still create challenges for both operators and consumers.

“Transparent and predictable pricing mechanisms are essential,” Haque said. “When international prices rise, adjustments should be gradual so that consumers are not suddenly burdened while the industry remains financially viable.”

He expects demand for LPG to continue growing as urbanisation increases and more households move away from traditional cooking fuels such as firewood and biomass.

Industrial and commercial sectors are also gradually expanding their use of LPG due to its efficiency and environmental advantages compared with some conventional fuels.

Industry projections suggest that Bangladesh’s LPG consumption could reach around 40 lakh tonnes annually over the next decade if infrastructure and policy support keep pace with demand.

However, the country’s continued reliance on imported LPG means that global market conditions will remain a defining factor in the sector’s long-term stability.

Strengthening storage capacity, diversifying supply sources, improving port infrastructure and ensuring regulatory consistency will be key steps toward building a more resilient LPG supply chain, said Haque.

Iran said it was tightening control over the ​Strait of Hormuz on Saturday (18 April), warning mariners that the energy lifeline was again closed, as shipping sources said at least two vessels reported coming under fire while trying to transit the waterway.

Tehran said it ‌was responding to a continued US blockade of Iranian ports, calling it a violation of their ceasefire, while Supreme Leader Mojtaba Khamenei said Iran's navy was ready to inflict "new bitter defeats" on its enemies.

Tehran's renewed tough messaging injected fresh uncertainty around the Iran conflict, raising the risk that oil and gas shipments through the Strait could remain disrupted just as Washington weighs whether to extend the fragile ceasefire.

Some merchant vessels received radio messages from Iran's navy saying no ships were allowed through the waterway, maritime security and shipping sources said, reversing signs earlier in the day that traffic ​might resume.

At least two vessels reported being hit by gunfire as they attempted to cross the strait, the sources said.

Earlier, maritime trackers had shown a convoy of eight tankers transiting the narrow passage in the first major movement ​of ships since the US-Israeli war on Iran began seven weeks ago.

US-Iran ceasefire due to end on Wednesday

Hours earlier, US President Donald Trump had cited "some pretty good news" about Iran, declining to ⁠elaborate. But he also said fighting might resume without a peace deal by Wednesday, when the two-week ceasefire expires.

Iran had announced its temporary reopening of the Strait of Hormuz following a separate US-brokered 10-day ceasefire agreement on Thursday between Israel and Lebanon. Israel ​invaded parts of southern Lebanon after the Iran-allied Hezbollah militant group joined the fighting in early March.

But on Saturday Iran's armed forces command said transit through the strait had reverted to a state of strict Iranian military control, citing what it described ​as repeated US violations and acts of "piracy" under the guise of a blockade.

The spokesperson said Iran had earlier agreed, "in good faith," to the managed passage of a limited number of oil tankers and commercial vessels following negotiations, but said continued US actions had forced Tehran to restore tighter controls on shipping through the strategic chokepoint.

US Central Command said in a statement that American forces were enforcing a maritime blockade of Iran, but did not comment on the latest Iranian actions.

Unclear if any direct talks this weekend

The war with Iran, which began on 28 February with a US-Israeli ​attack on the Islamic Republic, has killed thousands, spread to Israeli attacks in Lebanon and sent oil prices surging because of the de facto closure of the strait.

Despite the initial movement of ships, Iran's deputy foreign minister, Saeed Khatibzadeh, said no ​date had been set for the next round of negotiations, adding that a framework of understanding must be agreed first.

Asked about reports Tehran had closed the Strait, he said that the Americans had violated the terms of the ceasefire, and so "there will be repercussions for them".

Pressure for ‌a way out ⁠of the war has mounted as Trump's fellow Republicans defend narrow majorities in Congress in the November midterm elections with US gasoline prices high, inflation rising and his own approval ratings down.

"It seems to be going very well in the Middle East with Iran," Trump told reporters on Air Force One while returning to Washington from Phoenix, Arizona, on Friday. "We're negotiating over the weekend. I expect things to go well. Many of these things have been negotiated and agreed to.

"The main thing is that Iran will not have a nuclear weapon. You cannot let Iran have a nuclear weapon, and that supersedes everything else."

But in sharp contrast, Trump also said he might end the ceasefire with Iran unless a long-term deal to end the war was agreed before it ​expires on Wednesday, adding that a US blockade of Iranian ports ​would continue.

Trump has told Reuters there would probably be ⁠more direct talks between Iran and the US this weekend. Some diplomats said that was unlikely given the logistics of gathering in Islamabad, where the talks are expected to take place.

There were no signs of preparations early on Saturday for talks in the Pakistani capital, where the highest-level US-Iran negotiations since the 1979 Islamic Revolution ended without agreement last weekend.

The key Pakistani mediator, ​army chief Field Marshal Asim Munir, has concluded three days of talks in Tehran, the Pakistani military said. Pakistani Prime Minister Shehbaz Sharif was also returning to Islamabad after talks ​this week in Qatar, Saudi Arabia ⁠and Turkey.

A Pakistani source aware of mediation efforts said a meeting between Iran and the US could produce an initial memorandum of understanding, followed by a comprehensive peace agreement within 60 days.

No clarity on Iran's nuclear programme

Differences remained over Tehran's nuclear programme, which has been a sticking point in peace talks, with Iran defending its right to what it says is a civilian nuclear energy programme.

Trump told Reuters the US would remove Iran's stockpiles of enriched uranium. Iran's foreign ministry spokesperson told state TV the material would not be transferred ⁠anywhere.

Separately, a senior ​Iranian official said Tehran hoped a preliminary agreement could be reached in the coming days.

Oil prices , fell about 10% and global stocks jumped on Friday on ​the prospect of marine traffic resuming through the strait. Despite that, hundreds of vessels and about 20,000 seafarers remain stranded in the Gulf awaiting passage through the waterway, shipping sources said.

At last weekend's talks, the US proposed a 20-year suspension of all Iranian nuclear activity, while Iran suggested a halt of ​three to five years, according to people familiar with the proposals.

Two Iranian sources have said there were signs of a compromise that could remove part of the stockpile.

The unequal agreement signed by the interim government with the US poses a major obstacle to energy security in Bangladesh rather than the disruption in fuel imports through the Strait of Hormuz, said Debapriya Bhattacharya, a public policy analyst.

“The Strait of Hormuz is indeed an obstacle to fuel imports, but the US trade agreement is a bigger barrier,” he said at a pre-budget shadow parliamentary debate competition organised by the Debate for Democracy on Saturday.

The Agreement on Reciprocal Trade (ART) signed on February 9, just three days before the election, commits Bangladesh to purchasing $15 billion in US energy products, including LNG, over 15 years. It also restricts Bangladesh’s ability to buy cheaper fuel from countries under US sanctions such as Russia.

“The current government says it will not pursue country-specific foreign policies. Yet, that is exactly what is happening in the trade deal -- we now need permission regarding whom we can buy oil from,” said Bhattacharya, a distinguished fellow at the Centre for Policy Dialogue.

However, Bangladesh should make the best of the 60-day waiver offered by the US on oil purchases from Russia.

While criticising the deposed government, Bhattacharya said the energy policy was confusing and controversial, with exploitative policies adopted by an unholy nexus of bureaucrats, business groups and politicians.

Instead of productive investment, priority was given to import-dependent energy strategies to serve vested interests, leading to the import of LNG instead of domestic gas exploration.

Institutions like the state-owned Bangladesh Petroleum Exploration and Production Company (BAPEX) were weakened.

There were major irregularities in energy imports, Bhattacharya said.

The government has formed a cabinet committee on energy security, but it should inform the public about its activities through transparency and bring the matter for discussion in the national parliament.

Although the government has spoken about forming a reform commission in line with its electoral promises, it has not yet been made visible.

The government should clearly disclose its plans for reforms in public financial management, revenue collection and incentives, Bhattacharya added.

While moderating the programme, Hassan Ahamed Chowdhury Kiron, chairman of the Debate for Democracy, said that due to past corruption, Bangladesh failed to achieve self-reliance in energy.

Import dependence was increased for vested interests, while domestic production was neglected.

Therefore, ensuring energy security will be a major challenge for the government in the upcoming budget, he said.

The upcoming budget must reflect the expectations of ordinary people.

During a crisis, a people-friendly, business-friendly, sustainable and cautious budget needs to be presented.

The new government, which has achieved a large mandate, must maintain its popularity by presenting a budget that ensures maximum welfare, avoids placing pressure on lower- and middle-income groups, prevents public suffering and maintains price stability.

Additionally, to keep the economy active and ensure investment and employment growth, a hassle-free business environment must be created.

Therefore, the upcoming budget must be people-oriented and practical, he said.