In a move to lower financing costs and enhance global competitiveness, the Bangladesh Bank is set to introduce offshore dollar loans for exporters at a significantly lower interest rate.

Under the proposed scheme, exporters will be able to borrow at an interest rate of 8%, substantially lower than the prevailing 14% to 16% charged on local currency loans. The central bank is expected to issue a circular shortly outlining the operational framework, officials said.

Exporters would be permitted to use the funds for day-to-day business expenses, including utility payments, wages, and other working capital needs. The loans will be repaid from export proceeds in foreign currency, reducing pressure on the domestic banking system.

The facility will also allow exporters to convert the borrowed dollars into the taka through currency swaps with their banks if needed, without incurring additional interest costs.

Providing exporters with such facilities will enhance their financial capacity. Consequently, this is expected to bolster their competitiveness in the international market while easing the pressure on the country's foreign exchange reserves.

According to central bank officials, the loan amount will be linked to export orders. "For instance, if an exporter secures an order worth $100 and opens a letter of credit (LC) for $60 to import raw materials, they may borrow up to $40 under the offshore facility to meet remaining operational expenses," an official told The Business Standard.

Banks will be allowed to extend these loans based on their relationships with clients, with maturities ranging from three months to one year, he said, adding that no strict cap on lending has been imposed, giving banks flexibility to assess client needs.

"Currently, there is an opportunity to take this type of loan from the banking system, but it must be taken in the taka and the interest rate is 14% or more. The main objective of providing the facility to take loans from offshore banking at 8% interest is to increase the competitiveness of exporters and support them," the official said.

The Bangladesh Bank will instruct banks to provide short-term foreign currency loans to exporters from offshore banking units, based on established banker-customer relationships.

No further credit limits or additional conditions will be imposed on the banks. Depending on the specific requirements of the customer, banks may extend these loans for a tenure of three months to a maximum of one year.

The initiative follows a reduction in the Export Development Fund from $7 billion to $2.2 billion, a move necessitated by conditions under the International Monetary Fund programme. This reduction has significantly curtailed exporters' access to existing low-cost foreign currency financing.

What experts say

Speaking to TBS, economists and business leaders have welcomed the move, noting that exporters are facing increasing pressure due to declining global demand and rising production costs. They believe the new facility will help improve liquidity, reduce financing costs, and encourage investment.

However, experts have also highlighted risks. If export earnings are not repatriated, loan recovery could become difficult. In addition, exchange rate fluctuations could increase the repayment burden in local currency terms if the taka depreciates.

Mahmud Hassan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association, said at a time when the country's export earnings are consistently declining, such an initiative to bolster export capacity and support exporters is a highly positive step. However, he noted that the interest rate for these loans should be lower than 8%.

"Currently, when borrowing in dollars from the Bill Transformation Fund and the Technological Development Fund, the interest rate is 5%. Therefore, it is only logical that the interest rate for loans from offshore banking be set at 6% or 7%," he argued.

Syed Mahbubur Rahman, managing director and CEO of Mutual Trust Bank, said exporters would naturally benefit if working capital credit facilities were provided through offshore banking. He noted that as businesses are currently facing a crisis, the Bangladesh Bank is introducing this facility to compensate for the reduction in credit available from the Export Development Fund.

"Once this offshore banking facility is launched, instead of borrowing for back-to-back LCs, exporters will opt for these lower-interest loans. However, the significant risk here is that the exports must be executed against the orders, and the export proceeds must be repatriated to the country," he added.

While welcoming the move, Fahmida Khatun, executive director of the Centre for Policy Dialogue, advocated for a rigorous vetting process to select eligible borrowers and ensure that these loans are not misused.

"Bangladesh's foreign exchange reserves stand at approximately $30 billion. If monthly import costs average $5 billion, it is possible to cover six months of import expenses. Therefore, it is crucial to safeguard our foreign currency and ensure it is not squandered under any circumstances," she said.

Zahid Hussain, former lead economist at the World Bank's Dhaka office, also viewed the decision to lift existing restrictions on loan disbursements from offshore banking as a positive move. He added that allowing loan distribution and currency swap facilities based on banker-customer relationships is also a logical step.

"However, if there is a significant depreciation of the taka due to exchange rate fluctuations, borrowers will have to repay a higher amount in local currency terms. The resulting additional liability must be borne by the borrowers themselves. It is crucial to ensure that they do not seek incentives or assistance from the Bangladesh Bank when such situations arise," he added.

Bangladesh’s foreign exchange (forex) market remains stable and there is no immediate pressure to devalue the Taka, according to a recent assessment by Bangladesh Bank.

The central bank said despite some media reports suggesting a possible devaluation, the supply and demand for foreign currency are currently balanced.

As of April 6, 2026, the banking sector holds around $3.9 billion in foreign currency liquidity, up from $2.3 billion at the end of February 2026.

Cash holdings of foreign currency in banks also rose slightly, from $47.6 million on February 26 to $49 million by April 6.

Bangladesh’s foreign exchange reserves currently stand at approximately $34.35 billion.

Central bank officials noted that reserves could have approached $36 billion if Bangladesh Bank had actively purchased dollars to maintain market liquidity.

Notably, the central bank has not bought any dollars from the market over the past month, even though banks’ Net Open Position (NOP) reached about $1 billion—well above the usual $600–700 million threshold that typically prompts such purchases.

The market stability is supported by a surge in remittance inflows.

In March 2026, Bangladesh received $3.775 billion in remittances—the highest for any single month to date. This trend has continued into April, with $660 million received in the first six days, a 20.5 percent increase compared to the same period last year.

Foreign payments continue to be regular and well-managed.

In the past month, Bangladesh settled $1.37 billion in Asian Clearing Union (ACU) bills. Additionally, around $180 million in government foreign debt has been repaid recently.

The central bank stated that the forex market is operating under normal mechanisms, without significant value-based pressure on the dollar. Strong remittance flows and disciplined market behavior continue to ensure a secure foreign exchange environment.

Bangladesh’s economy may have expanded at a slower pace in March, primarily driven by the manufacturing sector’s first contraction after 18 consecutive months of growth, according to the latest Purchasing Managers’ Index (PMI).

Bangladesh’s PMI declined by 2.2 points to 52.5 in March compared to the previous month, according to the report issued yesterday by the Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI) and Policy Exchange Bangladesh (PEB).

The PMI is a forward-looking indicator used globally to gauge economic direction. A reading above 50 indicates expansion, while a reading below 50 indicates contraction.

“The March PMI readings point to moderate economic growth, largely driven by a manufacturing sector slowdown due to extended holidays and global demand uncertainties stemming from the Middle East crisis,” said M Masrur Reaz, chairman and CEO of PEB.

He added that the US-Israeli war on Iran has weakened economic momentum through heightened inflationary pressures and risks of supply disruptions, increasing the economy’s vulnerability.

A decline in new orders, exports, finished goods, imports, and employment fuelled the downturn in the manufacturing sector. However, factory output and input purchases continued to expand, and order backlogs returned to growth.

The construction sector remained in the downtrend for the second consecutive month, while the agriculture sector saw its seventh month of expansion, albeit at a slower pace.

Agriculture reported slower expansion in business activity and input costs. While order backlogs grew, the sector faced tightening in new business and employment.

Construction continued its decline, with new business and activity levels falling. While employment and order backlogs in the sector rebounded, input costs rose at a faster pace.

The services sector continued its momentum, recording its 18th consecutive month of expansion with slightly accelerated growth across new business, employment, and business activity.

Looking ahead, the future business index signals continued expansion across all key sectors, agriculture, manufacturing, construction, and services, reflecting sustained business optimism, the report said.

The MCCI and PEB began publishing the PMI in January last year. Initiated by the UK government, the index covers over 500 private sector firms.

Linde Bangladesh has announced a 100% cash dividend for the year 2025, maintaining a strong payout for shareholders despite a significant decline in profit compared to the previous year.

The decision was taken at a board meeting held on Wednesday (8 April) of the multinational industrial and medical gas producer, according to a price sensitive disclosure. The company has scheduled its annual general meeting for 10 June, while the record date has been fixed for 29 April.

For the year ended 2025, the company reported a net profit of Tk34 crore, with earnings per share (EPS) standing at Tk22.60. This marks a sharp drop from the previous year's EPS of Tk421.9, which had been exceptionally high due to a one-off gain.

The company clarified that its 2024 earnings were significantly boosted by income generated from the divestment of its hard goods business.

The Reserve Bank of India (RBI) today (8 April) kept its key interest rate unchanged, citing inflationary pressures driven by higher import costs following the recent West Asia conflict.

Announcing the first bi-monthly monetary policy of the fiscal year, RBI Governor Sanjay Malhotra said the Monetary Policy Committee (MPC) unanimously decided to retain the repo rate at 5.3% while maintaining a neutral stance.

The decision comes after the six-week-long Middle East war disrupted global energy supplies, pushed up crude oil prices and triggered inflationary and fiscal pressures for import-dependent economies such as India, the world's third-largest energy consumer.

This is the first monetary policy review after the Indian government announced a fresh retail inflation target of 4% with a margin of 2% on either side for another five years ending March 2031.

The central bank's pause follows easing inflation, with the consumer price index (CPI)-based headline inflation falling to 3.2% in February, closer to its medium-term target.

Meanwhile, the Indian rupee has depreciated by more than 4% since the conflict began on 28 February.

The United Kingdom’s visiting trade envoy, Baroness Rosie Winterton of Doncaster, has called on Bangladesh to increase exports to her country utilising the Developing Countries Trading Scheme (DCTS), which offers duty-free access.

During a meeting with Commerce Minister Amir Khosru Mahmud Chowdhury at the Secretariat yesterday, she pointed to scope for increasing exports beyond ready-made garments, including processed foods, seafood, light engineering and leather goods.

She also encouraged Bangladesh to make use of approximately £2 billion in export credit facilities available under UK Export Finance for increased infrastructure and other investments, according to a commerce ministry press statement.

During the meeting, both sides agreed to reactivate the Bangladesh–UK Trade and Investment Dialogue, the statement adds.

The DCTS, which replaced the UK’s Generalised Scheme of Preferences, came into force on 19 June 2023. Under the scheme, the UK cuts tariffs, removes conditions and simplifies trading rules for 65 developing countries.

The scheme heavily benefits UK businesses and consumers by reducing the import cost of thousands of products from around the world. Importers enjoy zero percent import tariff on 99.8 percent of products from 47 eligible least developed countries (LDCs), including Bangladesh, under the scheme’s Comprehensive Preferences tier.

The UK has confirmed it will maintain duty-free access for Bangladeshi goods under DCTS even after Bangladesh graduates from LDC status.

During the meeting with the UK envoy, Minister Chowdhury said the government has been working to improve the investment climate, cut logistics costs and ease doing business.

He said Bangladesh is pursuing free trade agreements and economic partnership agreements with several countries and intends to deepen trade ties with the UK.

The UK is Bangladesh’s third-largest export destination after the United States and Germany.

In the last fiscal year 2024-25, Bangladesh exported $4.62 billion worth of goods to the European country, accounting for 9.57 percent of total exports, according to data from the Bangladesh High Commission in London.

The major exportable items include ready-made garments, frozen food, IT engineering, leather and jute goods, and bicycles, with knitwear and woven garments accounting for 90 percent of total exports.

Audit reports of two listed companies – Silva Pharmaceuticals and Associated Oxygen – have identified inconsistencies in IPO fund utilisation, alongside delays and compliance gaps, according to stock exchange disclosures today.

For Silva Pharmaceuticals, the audit of IPO proceeds utilisation up to 28 February 2026 found that the company exceeded its approved budget for civil construction. Expenditure in this segment rose to Tk6.53 crore, or 104.26% of the allocated amount, resulting in excess spending of around Tk24 lakh without prior approval from shareholders or the regulator.

The report also highlighted a fund reallocation decision taken at the company's 9th Extraordinary General Meeting (EGM) on 30 December 2025, under which approximately Tk2.81 crore of unutilised funds from the "Machinery and Equipment" segment were transferred to working capital. However, no specific timeline for this reallocation was disclosed.

So far, 76.99% of the machinery allocation has been utilised, with the remaining funds shifted to working capital. The company has also fully utilised Tk9.9 crore earmarked for loan repayment and Tk2.44 crore for IPO-related expenses.

However, auditors observed inconsistencies in the use of working capital, noting that around Tk0.49 crore – 17.39% of the unspent portion – had been utilised in a manner not fully aligned with the original plan, despite EGM approval.

Overall, while IPO proceeds were largely used in line with the prospectus, auditors flagged deviations including excess construction spending, unclear fund reallocation, and partial inconsistencies in working capital use. The report also noted that utilisation was not completed within the originally stipulated timeline.

Meanwhile, Associated Oxygen has made substantial progress in utilising its IPO funds but faces issues related to deadlines and regulatory compliance. As per its prospectus, the deadline for submitting IPO utilisation reports expired in October 2022.

The company applied twice for deadline extensions; the first request was partially approved, while the second was rejected by the Bangladesh Securities and Exchange Commission (BSEC).

Associated Oxygen raised Tk15 crore through its IPO in September 2020.

Overall, auditors said that although both companies largely adhered to their stated objectives in using IPO proceeds, gaps remain in governance, timeline compliance, and fund management. Addressing these issues through proper approvals and disclosures will be crucial to maintaining investor confidence.

The securities regulator has fined the directors and top executive of Rupali Insurance Company Limited for violating credit rating regulations, highlighting ongoing concerns over compliance and governance practices in the capital market.

According to the latest monthly enforcement report of the Bangladesh Securities and Exchange Commission (BSEC), 11 individuals—including directors and the chief executive officer—were each fined Tk1 lakh in March.

The penalised persons are Mostafa Golam Quddus, Ali Ahmed, Mohammad Yonus, Quazi Moniruzzaman, KM Faruk, Abu Hena, Shaon Ahmed, Obaidul Huque, Mostafa Quamrus Sobhan, Fazlutun Nessa, and CEO Fawzia Kamrun Taniyas.

However, Quddus, the former chairman of the company, passed away in January 2025, while some of the penalised individuals are no longer actively engaged with the company.

The BSEC said in the report that the penalty stems from irregularities related to the company's credit rating process and alleged violations of the Bangladesh Securities and Exchange Commission (Credit Rating Companies) Rules, 2022.

The regulator found inconsistencies in an agreement between the insurer and Credit Rating Information and Services Limited (CRISL), particularly the absence of a clear validity period and execution date.

Under the agreement, CRISL was responsible for conducting an initial credit rating for 2018 and surveillance ratings for subsequent years. While the firm completed ratings up to 2020, the validity of its last rating report expired on 28 November 2022.

Immediately after this expiry, Rupali Insurance entered into a new agreement with National Credit Rating Limited on 29 November 2022, and a fresh rating report was issued in December based on updated financial statements.

The BSEC concluded that engaging a new rating agency without formally terminating the previous agreement or securing regulatory approval breached rules governing the continuity and termination of credit rating engagements.

The rules require that once a rating agreement is executed, it must continue through the initial rating and three consecutive surveillance ratings unless formally terminated with the commission's approval.

During the hearing, Rupali Insurance and the accused individuals contested the allegations, arguing that the agreement with CRISL had naturally expired rather than being terminated. They also claimed the previous agency failed to deliver within the stipulated timeframe, necessitating a new rating to meet regulatory and financial obligations.

Despite these arguments, the BSEC upheld its findings and imposed penalties, reinforcing its stance on strict compliance with regulatory frameworks.

Gold prices climbed ‌to a nearly three-week high on Wednesday as markets reassessed near-term risks after US President Donald Trump agreed to suspend bombings and attacks on Iran for two weeks, easing fears of energy-driven inflation.

Spot gold ​was up 2.5 percent at $4,819.52 per ounce, as of 0726 GMT. Earlier in the session, ​bullion rose more than 3 percent to its highest level since March 19. US gold futures for June delivery gained 3.4 percent to $4,845.30.

Trump said Washington had agreed to a two-week ​pause in attacks and received what he described as a “workable” 10-point proposal from Iran as a basis for negotiations.

His comments ​followed earlier warnings that Tehran must reopen the Strait of Hormuz or risk US retaliation on its civilian infrastructure.

“People went into this session thinking that escalation was very likely, but the announcement of a two-week ​truce kind of upended that expectation and that was gold positive,” said Nicholas Frappell, ​global head of institutional markets at ABC Refinery.

Iran’s Supreme Security Council said negotiations with the United States would begin ‌on ⁠April 10 in Islamabad after it submitted its proposal via Pakistan, adding that talks did not signal an end to the war.

Meanwhile, rising energy prices could fuel inflation and complicate central banks’ interest rates decision.

While gold is often seen as a hedge against inflation and uncertainty, its appeal tends to weaken ​in a high-interest-rate environment ​as it offers ⁠no yield.

Markets are now awaiting minutes of the Federal Reserve’s March meeting later in the day.

Gold, which began the year on a strong note, ​has fallen more than 8 percent since the Iran war erupted on ​February 28.

“This ⁠is a knee-jerk relief rally and it remains to be seen if Iran complies. For gold, the 200 day-moving-average at $4,930 and then $5,000 will be key hurdles. Similarly, $80-$81 is a important level for ⁠silver,” ​independent metals trader Tai Wong said.

The Real Estate and Housing Association of Bangladesh (Rehab) has requested the opportunity to invest undisclosed money (black money) into the country's housing sector at a lower tax rate and without any questioning of the source.

The proposal was presented today (8 April) during a pre-budget discussion held at Agargaon in the capital.

Md Wahiduzzaman, president of Rehab, and Liakat Ali Bhuiyan, vice president of Rehab, highlighted the current state of the sector during the session.

In a written statement, the organisation urged "reintroducing the previous provision in the Income Tax Ordinance stating that no authority shall raise any questions regarding the source of funds for general buyers when purchasing flats."

Liakat Ali Bhuiyan, vice president of the organisation, stated, "Expatriates often do not provide a declaration after sending money, which then becomes undeclared or 'black money.' If they are not allowed to buy flats with this money, the capital is being siphoned abroad."

In response, NBR Chairman Abdur Rahman Khan said, "We have been in this culture for 55 years; we will not remain in it anymore."

Highlighting that it is now very easy to send money from abroad and that the government even provides incentives for using formal channels, he added, "Therefore, expatriates will whiten their money by paying taxes at the regular rate. It cannot be addressed in any other way."

In the 2020-21 fiscal year, the government introduced a provision allowing the investment of undisclosed money in the housing sector without any questions from authorities.

At that time, while general buyers paid up to 30% tax, the tax for investing black money was only 10%.

This provision faced widespread criticism, leading the government to gradually move away from this path.

Currently, there is no opportunity for a reduced 10% tax rate in the housing sector. Investors must pay the regular tax rate plus a penalty on that tax.

Additionally, the Anti-Corruption Commission (ACC) or any other government agency retains the right to question the source of the invested funds.

In addition to the demand regarding undisclosed money, Rehab's proposal included reducing existing registration costs for flat or apartment sales as well as providing special incentives to develop a secondary market for housing.

The World Bank projects lower economic growth for Bangladesh in the current fiscal year, stating that 12 lakh poor people will remain below the poverty line mainly due to the impact of the US-Israel war on Iran.

Today, the multilateral lender published its Bangladesh Development Update for April, a bi-annual publication of the World Bank.

Poverty and welfare outcomes deteriorated over 2022–25, driven by limited creation of productive jobs, weak labour income growth, and elevated inflation that reduced the poverty-reducing impact of growth, the lender said in its report.

Bangladesh’s national poverty rate is projected to have risen for a third consecutive year, increasing from 18.7 percent in 2022 to 21.4 percent in 2025.

Prior to the conflict in Middle East, about 1.7 million people were projected to get out of poverty this year, but due to conflict, now only 0.5 million people can exit poverty.

At the $3 international poverty line, an additional 1.4 million people are projected to have fallen into poverty over the same period, it added.

“A recovery projected for 2026 is now at risk — the Middle East conflict is expected to push an additional 1.2 million people below the poverty line, offsetting much of the projected improvement.”

The conflict is likely to materially affect Bangladesh’s economy, compounding existing vulnerabilities such as elevated inflation, financial sector struggles, constrained policy space, and weakened confidence.

Higher import costs, weaker exports, and falling remittances would add pressure to the current account balance, while rising energy prices and exchange rate pressures would further fuel inflation. Higher energy subsidies would also squeeze fiscal space.

Addressing these risks demands a coherent stabilisation strategy — backed by structural reforms — to build buffers, restore confidence, revive investment, and put growth on a sustainable footing.

The World Bank has downgraded Bangladesh’s near-term outlook, revising real GDP growth for FY26 down to 3.9 percent from the previous projection of 4.6 percent in January 2026.

The downward adjustment reflects the combined impact of the ongoing Middle East conflict and persistent domestic macroeconomic challenges, including elevated inflation, weak investment, and financial sector vulnerabilities.

Inflation is expected to moderate compared to FY25 but remain elevated due to higher import and energy costs linked to the conflict.

An important objective of income tax policy is to strengthen long-term savings, enhance future financial security, and advance the social protection of taxpayers. In line with this objective, investments and donations in fourteen (14) specified sectors have been made eligible for tax rebate, subject to Section 78 of the Income Tax Act, 2023 and Part III of the Sixth Schedule.

Under the prevailing provisions, a resident normal person taxpayer and a non-resident Bangladeshi (NRB) normal person taxpayer may claim a tax rebate of up to 3% of total income against the tax payable in a tax year, provided the investment or donation meets the prescribed conditions, subject to an overall maximum eligible amount of Tk 1,000,000.

While this incentive is positive in principle, certain inconsistencies and implementation risks warrant a review of both the eligible investment limits and the investment-eligible sectors in the forthcoming national budget.

The tax rebate facility is intended to encourage responsible savings and long-term financial resilience. However, this objective can be undermined if the incentive structure does not sufficiently account for risk management and investor protection.

At present, there are explicit caps on investments in comparatively safer instruments such as government securities, DPS, and life insurance. For instance, investments up to Tk 500,000 in government securities, Tk 120,000 in DPS accounts, and up to 10% of the sum assured in life insurance are treated as eligible for tax rebate. These caps reflect an intent to direct incentives toward safer savings instruments, thereby keeping risk relatively controlled.

In contrast, there is no clearly defined tax-related cap for investment in the stock market under the tax rebate facility. This creates an evident policy imbalance: stricter limits apply to safer instruments, while comparatively higher-risk market participation may be incentivized without equivalent safeguards.

In practice, a segment of ordinary taxpayers enters the stock market primarily to maximize tax rebate benefits. Yet the knowledge, analytical capacity, access to timely information, and risk tolerance required for equity market participation vary significantly across taxpayers.

Consequently, uninformed or inadequately assessed investments increase the likelihood of capital loss, which may directly conflict with the stated objective of strengthening future security.

This contradiction is material. The tax rebate is not merely a mechanism of tax reduction; it is a policy instrument that influences taxpayer financial behavior. If the incentive structure unintentionally encourages participation in higher-risk instruments without appropriate protection measures, it may lead to adverse outcomes, reduced household savings, heightened financial stress, and weakened long-term security.

Recent market-related events have further affected investor confidence. Developments such as restructuring decisions in the financial sector, uncertainty regarding shareholder outcomes in certain institutional changes, and the closure of some finance companies have heightened perceived risk among general investors.

In an environment of reduced trust, ordinary investors are more likely to be influenced by short-term signals and informal information channels, and they often lack effective institutional protection during periods of market volatility.

Most importantly, taxpayers who invest in the stock market for the purpose of tax rebate currently lack a visible and effective risk mitigation or protection framework. A tax rebate does not safeguard invested capital if an issuer becomes insolvent or if the market experiences significant decline.

Therefore, a policy designed to promote future security may inadvertently expose ordinary taxpayers to capital loss, raising concerns regarding both the practicality and fairness of the incentive design.

In view of the above, it is submitted that the National Board of Revenue (NBR) may consider redefining the eligible investment limits and the scope and conditions of eligible sectors under the tax rebate facility in the forthcoming budget 2026-27.

Proposed policy measures:

Increase the investment tax rebate ceiling
Raising the ceiling from Tk 10 lakh to Tk 20 lakh signals a forward-looking, investor-friendly policy shift, encouraging greater participation in formal savings and long-term financial planning.

Rational enhancement of limits for safer savings instruments
Existing caps for safer instruments may be reviewed and rationally increased. For example, the maximum eligible investment limit may be raised to Tk 2,000,000 for government securities and Tk 360,000 for DPS accounts. Such adjustments would encourage secure savings behavior and reduce the incentive-driven shift toward higher-risk instruments.

Establish a protection framework for tax-rebate-eligible stock market investments
A defined protection mechanism should be introduced for the rebate-eligible portion of stock market investments. Coverage or compensation in qualifying events such as issuer insolvency may be considered. Without such a framework, encouraging ordinary taxpayers into higher-risk instruments raises concerns of equity and fairness.

Adopt a risk-adjusted incentive structure
A balanced policy is required so that taxpayers are not compelled to concentrate on risk-prone instruments to maximize rebate benefits. Incentives should reflect both risk and protective safeguards to align with broader objectives of social protection and long-term security.

Treat dividend withholding as final tax
To enhance compliance simplicity and transparency, tax deducted at source (TDS) on dividends may be considered as final tax settlement, subject to legislative alignment. This would reduce administrative complexity and provide certainty to taxpayers.

Implement an annual investment awareness campaign (January–March)
A structured national campaign should be undertaken annually to improve taxpayer understanding of investment options, risks, and informed decision-making. Improved awareness would support planned participation and contribute to meeting short-term financing needs through stable instruments.

The tax rebate facility is an important policy tool to promote savings, strengthen future security, and advance social protection. Accordingly, the design of eligible limits and sectors should incorporate risk awareness, protection measures, and a pragmatic incentive balance.

The proposed measures would support safer long-term savings among ordinary taxpayers, reduce undue risk-taking in equity markets driven primarily by tax incentives, and improve alignment between the incentive framework and its intended policy objectives.

In a rare step in September last year, the Dhaka bourse published a list of 30 companies that had long been out of production. The move was meant to inject transparency into the market, check rumour-driven trading and warn investors chasing whispers rather than market fundamentals.

Instead, it had the opposite effect.

After the disclosure, share prices of 29 of those zombie firms, whose factories are padlocked, machines are gathering dust, and workers have long since left, surged. Some doubled. Others tripled.

Market analysts say allowing companies with no operational heartbeat to trade freely undermines confidence. For the sake of ordinary investors and the long-term health of the market, the regulator should move quickly to clean house.

The Dhaka Stock Exchange (DSE) says it is now preparing to delist companies with no realistic prospect of revival in phases.

But the obvious question is, why did the shares race ahead even though production has been halted for years?

Saiful Islam, president of the DSE Brokers Association of Bangladesh (DBA), said the answer lies in speculation. “Globally, there are always some investors who prefer to invest in penny stocks,” he said, referring to low-priced and highly speculative shares of small companies.

“There is a class of traders who are heavy risk takers and essentially enjoy gambling,” said Islam.

“They believe that if prices start to rise for any reason, the relatively low number of shares in these companies makes it easier to play in their favour,” he added.

DISCLOSURE TRIGGERS SURGE

After the disclosure by the DSE, shares of Familytex BD, Appollo Ispat and Tung Hai Knitting have more than tripled in the past three months, even though operations have been shut for years.

Other dormant firms have also seen sharp gains.

Hamid Fabrics, New Line Clothing, Nurani Dyeing and Shurwid Industries have more than doubled. Prime Textile rose 83 percent, while Meghna Pet Industries and Northern Jute climbed 69 percent each.

Meghna Pet Industries has been out of operation for 24 years. Its rally has left many analysts baffled.

“Why did this company’s stock rise to that extent?” asked Al Amin, an accounting professor at Dhaka University and a market analyst.

“Why did the company remain in the stock market for two decades despite having no operation, no dividend, nothing?” he questioned.

“These are surging absolutely due to manipulation and rumours by a vested interest group,” he added.

“By allowing trading of closed companies, the DSE and the BSEC [Bangladesh Securities and Exchange Commission] are basically allowing investors to burn their hands,” he further said.

Among the 30 companies, only GBB Power reported positive news, announcing that it had signed a power purchase contract with the Bangladesh Power Development Board (BPDB) for the installation of an 18 MW solar power plant.

Of the other dormant firms, Zaheen Spinning Mills rose 63 percent, Emerald Oil gained 55 percent and Regent Textile advanced 52 percent.

Prof Al Amin said the DSE cannot avoid its responsibility simply by publishing the status of the companies, especially when the securities regulator operates surveillance software.

In his view, both DSE and the Bangladesh Securities and Exchange Commission (BSEC) should dig deeper and suspend trading in such shares.

When asked whether suspension would hurt small investors, he said those who bought the shares should have had supporting information.

DBA President Islam also advocated for stronger action. The DSE’s responsibility, he said, does not end with labelling companies as non-operational.

He said investor protection is a core duty of the market regulator. If firms have remained dormant for years, the DSE could have suspended trading, summoned management, explored mergers or restructuring and engaged merchant banks to assess options.

AXE FINALLY LOOMS OVER THEM

Abul Kalam, spokesperson of the BSEC, said the regulator has placed the companies under surveillance. If it finds manipulation, insider dealing or regulatory breaches, it will act.

On whether the companies will continue trading despite years of closure, he said listing and delisting are fully in the hands of the stock exchange.

“Stock exchange can delist the companies complying with listing regulations; it is their task,” he added.

Mominul Islam, chairman of the DSE, said the exchange has asked the non-operational companies about plans to resume operations. Some have replied, others have not.

“A few cited political disruptions over the past decade as the reason for closure and said they are trying to reopen factories. The DSE will allow them time,” he told The Daily Star.

For the rest, the exchange will assess whether operations can realistically resume. If not, it will review assets and liabilities before making a decision. Some companies will be delisted gradually if there is no prospect of revival, he said.

The taka edged up against the US dollar yesterday, buoyed by a two-week ceasefire between the United States and Iran that eased pressure on the foreign exchange market.

The weighted average exchange rate stood at Tk 122.75 per dollar, down from Tk 122.84 the previous day, according to Bangladesh Bank (BB) data.

A senior treasury official at a private commercial bank said the market turned volatile in recent weeks as importers rushed to buy dollars amid fears of a prolonged war. That anxiety appears to have subsided following the ceasefire.

When importers scramble for forward buying, rates tend to climb. As tensions cool, demand for forward trading of US dollars is expected to ease, he said.

Forward buying means agreeing today to purchase dollars at a fixed rate on a future date. Forward trading refers to buying or selling dollars now at a pre-agreed rate for delivery later, usually to hedge against exchange rate swings.

In its Bangladesh Bank Quarterly published yesterday, the central bank, however, cautioned that the economy remains exposed to external oil price shocks and currency depreciation.

“A sharp increase in global oil prices, particularly when combined with exchange rate depreciation, could exert significant upward pressure on inflation and lead to a decline in foreign exchange reserves,” it said.

The BB report said that allowing some exchange rate flexibility could help ease pressure on reserves. At the same time, balancing fiscal costs and inflationary pressures may require a partial adjustment to global oil prices.

“Rising geopolitical tensions -- particularly the Iran-Israel-USA conflict -- have already disrupted global energy and food supply chains and may exert additional pressure on both the external balance and domestic inflation. These developments pose near-term risks to price stability, export demand, and import costs,” said the report.

Mirza Elias Uddin Ahmed, managing director of Jamuna Bank, told The Daily Star that Bangladesh’s external position has not fundamentally weakened, although panic driven demand had unsettled the market.

The country’s gross foreign exchange reserves stand at about $34.35 billion, which the central bank described as a strong buffer for external trade payments. Usable reserves were $29.81 billion on April 2, enough to cover more than five months of imports.

The BB report said the central bank has maintained monetary tightening in response to stubbornly high inflation.

“However, inflation remains above the comfort threshold, disproportionately affecting low- and middle-income households,” it said, adding that the government and the central bank have taken several steps to rein in price pressures.

The BB has withdrawn LC margin requirements for imports of essential commodities, including rice, onions, dates, sugar, pulses and edible oil, it added.

Alongside truck sales by the Trading Corporation of Bangladesh (TCB), relevant agencies are working to curb hoarding, syndication and other illegal practices to ease supply bottlenecks.

On money and credit markets, the report said the near-term outlook depends on striking a balance between maintaining adequate liquidity, containing inflation and reviving private sector credit growth.

It said that public sector credit is likely to remain the main driver of overall credit expansion in the short term, potentially crowding out private investment and complicating efforts to sustain growth.

“A recovery in private-sector credit will depend on further moderation of lending rates, improved investor confidence, and greater political stability,” said the BB.

Breaking a prolonged bearish spell since the onset of the Middle East conflict, Dhaka stocks rallied strongly today (8 April), with turnover and indices surging as investor sentiment rebounded after the United States and Iran agreed to a conditional two-week ceasefire.

US President Donald Trump said late on Tuesday that he had agreed to suspend attacks on Iran for two weeks after holding discussions with Pakistan, easing fears of an extended conflict.

The benchmark DSEX index of the Dhaka Stock Exchange jumped 3.12%, or 161 points, marking its highest single-day gain since 15 February.

Dhaka stocks extend rally as turnover jumps 27%

According to DSE data, stocks had rallied sharply on 15 February, the first trading session after the BNP's landslide victory in the 13th national election, when DSEX climbed 200 points, or 3.71%, amid a surge in investor participation.

Today, turnover – a key market indicator – surged 66% to Tk991 crore, the highest in seven weeks. Market breadth was overwhelmingly positive, with 93% or 367 of listed stocks advancing and 21 hitting the upper price limit.

The Shariah-based DSES index rose 2.88%, or 30 points, to 1,075, while the blue-chip DS30 index gained 2.77%, or 55 points, to close at 2,026.

Market data showed stocks opened sharply higher, with the DSEX rising 140 points within the first three minutes of trading. The upward momentum persisted throughout the session, closing at 5,317 points with a strong gain.

Following the outbreak of the US-Israel war on Iran on 28 February, the country's stock market entered a bearish phase, with most trading sessions ending in declines as persistent sell-offs eroded equity values amid fears of a prolonged conflict and its adverse economic impact.

Market insiders said investors had largely stayed on the sidelines in recent weeks due to prolonged uncertainty. The ceasefire announcement prompted a return of confidence, encouraging fresh inflows into equities.

They added that amid heavy sell-offs, many fundamentally strong stocks experienced significant value erosion. However, as the ceasefire reduced uncertainty, investor confidence improved, prompting a renewed flow of funds into the market.

EBL Securities, in its daily market commentary, said the capital bourse witnessed a strong resurgence as the announcement of a two-week ceasefire deal between Iran and the USA sparked optimism across the trading floor, triggering renewed accumulation of the beaten-down scrips in anticipation of improved market momentum amid easing geopolitical concerns.

"Market indices tracked a firm upward trajectory from the outset of the session with predominant buying interest, while investor participation strengthened steadily as the session progressed, driving broad-based price appreciation across most of the scrips," it added.

First Finance topped the gainers' list, with its shares rising 10% to close at Tk5.5 each – the maximum daily price increase – followed by ICB Islami Bank, which also gained 10% to Tk3.3, Bangas Limited up 10% to Tk134.2, BD Lamps up 9.96% to Tk157.8, and Khan Brothers PP Woven Bag Industries up 9.93% to Tk54.2.

Meanwhile, only 11 stocks declined. Techno Drugs led the losers, slipping 1.07% to Tk36.9 per share, followed by Apex Spinning Mills, Meghna PET Industries, Janata Insurance, and Summit Alliance Port.

On the sectoral front, pharmaceuticals and chemicals stocks accounted for the largest share of turnover at 15.6%, followed by engineering at 12.7% and banking at 12.6%. All sectors posted gains, with jute stocks exhibiting the most positive returns on the bourse.

The Chittagong Stock Exchange (CSE) also ended higher, with its Selective Categories Index (CSCX) and All Share Price Index (CASPI) rising by 192.5 points and 328.3 points, respectively.

Solar power is often discussed as a policy ambition in Bangladesh, one which has become more pertinent given the ongoing global energy uncertainty and price volatility.

Bangladesh’s energy security depends on how quickly renewable ambitions translate into real projects -- spearheaded by solar.

Developing around 5,000 Megawatt peak (MWp) of solar could require over Tk 35,000 crore in generation investment, excluding land and supporting infrastructure -- making bankable projects and investor confidence essential.

In Bangladesh, 1 MWp of solar capacity can generate roughly 1.4 million kilowatt-hour (kWh) annually, highlighting solar’s potential contribution to the national power supply.

International experience shows that countries can scale solar from negligible levels to 20–30 per cent of installed capacity within a decade or even faster when supported by clear policy frameworks, bankable procurement structures and coordinated infrastructure planning.

Despite repeated policy commitments and long-term energy planning, solar deployment in Bangladesh has remained limited -- and this is solely because of an incomplete implementation framework.

In several cases, projects were awarded without confirmed land access, grid interconnection or developers demonstrating the financial and technical capability required to deliver utility-scale projects.

As a result, many projects lacked the capacity to achieve financial closure or progress to construction within expected timeframes.

Solar prices are influenced by technology costs but, in Bangladesh, are primarily driven by financing conditions, land constraints, infrastructure requirements and project risks.

While concessional financing is available, the challenge is deploying it at scale. Lower financing costs require reducing project risk through bankable power purchase agreements (PPAs), strong payment security and credible project pipelines.

Institutions such as Infrastructure Development Company can play a role through blended finance and credit enhancement structures, particularly if scaled and aligned with utility-scale project requirements, while foreign exchange risk mitigation can help unlock international capital.

The transition toward competitive solar tenders represents an important step forward.

Competitive tariff auctions can deliver transparent price discovery, but only when projects are genuinely ready to build.

Poorly structured tenders can encourage aggressive bids that later prove unviable, leading to delays or cancellations.

Procurement frameworks must ensure that winning bidders have credible projects, secured sites and the capability to deliver.

Many of the challenges observed in past projects reflect gaps in readiness at the time of award.

Successful projects require key fundamentals from the outset. Developers should demonstrate secure land rights, confirm sites are dispute-free and obtain preliminary grid interconnection approval.

Financial capability should be supported by credible commitments from experienced institutions, with bid bonds and performance guarantees discouraging speculative participation.

Once a project is awarded, clear and enforceable timelines should govern each stage of development.

Power purchase and implementation agreements should be executed within three months of award, followed by financial closure withinsix months of PPA signing.

Construction should then be completed within 12–18 months, depending on project size and site conditions.

Delays at any stage should trigger defined penalties, including encashment of performance guarantees.

Without disciplined timelines, projects risk remaining in prolonged development phases without progressing to construction.

Establishing and enforcing such timelines ensures that projects move predictably from award to operation.

Land and grid access remain two of the biggest barriers to scaling solar in Bangladesh.

Utility-scale solar is inherently land intensive: every 1,000 MWp of ground-mounted capacity typically requires roughly 2,200–2,300 acres. In a densely populated country, securing suitable sites becomes a major challenge. The ‘solar park’ model offers a practical solution.

Under this approach, government agencies prepare land and supporting infrastructure such as roads, drainage and substations before leasing plots to private developers.

By addressing land and grid constraints upfront, solar parks can significantly reduce development risk, lower costs and accelerate project timelines.

Such models need not rely on upfront public funding; infrastructure costs can be recovered through land leases, developer charges or structured public–private partnerships.

In the absence of a coordinated solar park framework, transmission connectivity remains a major challenge.

Developers must construct transmission lines connecting the plant to the nearest substation at their own cost, often across considerable distances and through complex right-of-way approvals.

Once completed, these lines are transferred to the national grid operator during commissioning. This requirement can significantly increase costs and delay projects.

Targeted fiscal incentives can help accelerate investment during the early stages of solar expansion.

Policies such as tax holidays, reduced or zero import duties on solar modules, inverters and key balance-of-system components and accelerated depreciation for renewable energy assets can significantly lower capital costs.

Because much solar equipment is imported, such measures can materially improve project economics and support more competitive tariffs.

Solar expansion can also stimulate domestic industrial development and job creation.

Growing deployment creates opportunities for local manufacturing and engineering firms to participate in the renewable energy supply chain, particularly in mounting structures, electrical systems and installation services.

Over time, solar module assembly could also emerge as a viable domestic industry if deployment scales sufficiently.

Rooftop solar offers a fast-track pathway for expansion. Approximately 6,000 square metres of roof space can support around 1 MWp of solar capacity.

Large factory rooftops provide suitable space for distributed generation, while net metering and third-party PPAs can enable deployment without upfront investment.

As solar capacity grows, complementary technologies such as battery storage will help manage intermittency and support grid stability.

Bangladesh has both the demand and the opportunity to scale solar power rapidly. The challenge now is execution.

With the right implementation framework in place, Bangladesh can transform solar ambition into delivered capacity -- strengthening energy security, enabling domestic industry and high-skilled job creation and driving long-term economic growth.

The US-Israel war on Iran, before reaching a ceasefire agreement just yesterday, highlighted a longstanding vulnerability of Bangladesh – Bangladesh's only refinery, Eastern Refinery Limited (ERL), has not been significantly modernised or expanded in more than five decades.

This issue had also surfaced during the Russia-Ukraine war in 2022, when attempts to process Russian crude failed due to the refinery's outdated configuration. Despite that experience, little progress was made in upgrading its capacity.

As the Iran war disrupted supplies from the Middle East — the country's primary source of oil and gas imports, the state-run Bangladesh Petroleum Corporation (BPC) has started exploring crude options beyond Middle Eastern countries, while also seeking technical recommendations from Eastern Refinery on suitable crude specifications.

Since ERL cannot process all types of crude oil, the BPC is carefully assessing transport costs, compatibility and by-product impacts before moving ahead with imports from new sources.

Former caretaker government adviser and energy expert M Tamim said the Middle East remains the most cost-effective source due to proximity, but stressed that the planned second unit of ERL must include modern facilities capable of refining a wider range of crude types to ensure energy security during crises.

Search for alternatives intensifies

Apart from closing the Strait of Hormuz, the Middle East war also caused output cuts in the region's major energy facilities, resulting in force majeure by key suppliers for Bangladesh.

In March, shipments of crude oil from Saudi Arabia and Abu Dhabi – each carrying around 1 lakh tonnes – were cancelled. As a result, Bangladesh did not receive any crude consignments during the month. Authorities have since secured a replacement shipment from Saudi Arabia's Yanbu port for next month, though at a slightly higher cost of about $0.25 per barrel.

According to ERL officials, the refinery was originally designed to process Arabian Light crude from Saudi Arabia and Murban crude from the UAE. Heavier crude types, such as those from Russia, cannot be refined using the existing setup. With no blending facility in place, the refinery lacks flexibility to adapt to alternative sources.

To address this, ERL has analysed crude specifications from several countries – including Nigeria, Azerbaijan, Norway, Angola, and the UK – and submitted its findings to BPC. The corporation is now reviewing these options, considering both economic and technical feasibility.

BPC General Manager (Commercial and Operations) Muhammad Morshed Hossain Azad said work on alternative sourcing is ongoing, adding that maintaining a diversified supply line will be important even if the geopolitical situation stabilises.

Capacity constraints remain a major concern

Bangladesh imports between 65 lakh and 68 lakh tonnes of fuel annually, with crude oil accounting for about 15 lakh tonnes — all refined at ERL. The country also imports around 45 lakh tonnes of refined fuel, mainly diesel, from countries like India and China.

Despite rising demand, refining capacity has remained stagnant since independence. This has forced Bangladesh to rely heavily on costly refined fuel imports, increasing pressure on foreign currency reserves.

A long-delayed project to build ERL's second unit – which would double refining capacity to 30 lakh tonnes annually – has faced repeated setbacks. Although the project was first proposed in 2010 and approved in various forms over the years, it took more than a decade and a half to receive final approval.

The project, now estimated to cost around Tk31,000 crore, was approved by the Executive Committee of the National Economic Council (Ecnec) in December last year. Authorities are exploring financing options, including potential loans from external sources such as the Islamic Development Bank.

Officials say the new unit will be designed with greater flexibility to process a wider range of crude oil, addressing one of the key weaknesses of the current refinery.

Until then, Bangladesh remains exposed to global supply shocks — with limited capacity to adapt quickly when its primary fuel sources are disrupted.

A ceasefire in the Iran war will deliver badly-needed relief to economies battered by the world's worst ever energy crisis, but hopes the truce will quickly restore normal oil and gas flows from the Middle East are almost certainly misplaced.

US President Donald Trump on Tuesday agreed to a two-week ceasefire, conditional on Iran pausing its blockade ​of oil and gas shipments through the Strait of Hormuz, the narrow waterway that typically handles about one-fifth of global oil trade. Iran's foreign minister Abbas Araqchi said Tehran ‌would halt counter-attacks and guarantee safe passage for vessels transiting the strait.

How quickly the ceasefire will take full effect, however, remains unclear. Iran launched further attacks on Israel and Gulf countries shortly after Trump's announcement, underscoring the fragility of the deal. The war, now in its sixth week, has claimed more than 5,000 lives across nearly a dozen countries and badly damaged vital regional infrastructure, including oil and gas facilities.

Financial markets nonetheless welcomed the news. Japan's benchmark Nikkei jumped 5% to a one‑month high, while ​Brent crude prices tumbled roughly 13% to around $95 a barrel by 0300 GMT, as traders priced in a near-term easing of supply risks.

QUICK RELIEF VALVE

A temporary halt in fighting and the reopening of ​Hormuz would allow Middle Eastern exporters to ship significant volumes of oil that have been trapped inside the Gulf since hostilities began, offering global energy markets some ⁠immediate relief.

Around 130 million barrels of crude oil and 46 million barrels of refined fuels are currently floating on roughly 200 tankers in the region, according to data from analytics firm Kpler. Another 1.3 million tonnes ​of liquefied natural gas are also stuck on vessels awaiting safe passage.

For Asia, which relies on the Middle East for 60% of its oil and 80% of gas imports, the disruption has been particularly severe. Several countries ​have been forced to curb industrial output and ration fuel supplies following the abrupt cut in deliveries. The release of these trapped volumes would therefore ease the most acute pressure on Asian economies and energy systems.

But clearing the backlog of cargoes is only part of the problem. Getting tankers out of the Gulf is one thing; persuading shipowners and charterers to send vessels back in is quite another.

The unprecedented blockade of Hormuz has caused severe disruption to global shipping markets by sharply reducing ​tanker availability, pushing freight rates to record highs. Many shipowners are likely to remain extremely cautious about re-entering the region during what is, at best, a shaky and time-limited ceasefire, fearing their vessels and crews could ​once again become trapped if hostilities resume.

That caution would in turn constrain any attempt to revive normal export flows.

OIL PRODUCTION TO LAG

Middle East oil exports via Hormuz collapsed by around 13 million barrels per day (bpd) in March, equivalent to ‌roughly 13% of ⁠global consumption, according to Kpler. While Saudi Arabia and the United Arab Emirates managed to divert some shipments through alternative routes, the disruption forced regional producers to shut in an estimated 7.5 million bpd of output in March, including 2.8 million bpd in Iraq and 1.9 million bpd in Saudi Arabia, the world's largest exporter, according to US Energy Information Administration estimates.

As matters stand, much of that production is unlikely to come back quickly.

Restarting oilfields, especially at the scale found in the Middle East, is a complex, time-consuming process that can take weeks at best. National oil companies such as Saudi Aramco and the UAE's Adnoc are likely to hesitate before ​restoring output without greater clarity on the durability of ​the ceasefire.

Moreover, refineries, fields and export terminals damaged ⁠by missile and drone strikes will require months, and in some cases years, to repair. The region also faces a shortage of specialised equipment and skilled labour, which could further slow restoration efforts.

Crucially, without confidence that sufficient tankers will be available to load crude oil, diesel and jet fuel, producers will be reluctant to risk ​restarting fields and refineries only to find they cannot move the output.

LASTING SCARS

Were Washington and Tehran to agree on a permanent cessation of hostilities that ​led to the full reopening ⁠of Hormuz, oil and gas trade could eventually return to more normal operations. But even under that more optimistic scenario, the war is likely to leave lasting scars on global supply.

In the medium term, the oil market could remain 3 to 5 million bpd tighter over the next few years than pre-war expectations, due to damage to export infrastructure and the need to rebuild depleted inventories, according to Saul Kavonic, head of energy research at MST Marquee.

Unless the warring ⁠sides strike a ​firmer peace deal, the two‑week ceasefire now taking shape risks being little more than a short-term patch in what has become ​an unprecedented global energy crisis.

Listed company MK Footwear has signed a finished shoes OEM manufacturing deal with Hong Kong-based Fundrich Global Co, Limited and a separate export agreement with China's Jinjiang Akia Sports Co Ltd, marking a strong push into global markets.

According to stock exchange disclosures, the board approved the OEM deal on 6 April, though it was signed earlier on 25 March.

Trial production under the Fundrich deal will begin on 3 May, with a target of 200,000 pairs during the April–June phase as the company prepares for full-scale operations. Subject to successful completion, both parties plan to sign a five-year agreement by 1 July to secure a steady export pipeline.

For 2026-27, MK Footwear targets sales of 2.7 million pairs and export earnings of $21.6 million – up 343% from 2024-25. It aims to raise annual capacity to 5 million pairs by March 2029, with projected export turnover of $40 million, or about Tk500 crore.

The board said the partnerships would improve capacity utilisation, strengthen exports, and create shareholder value, subject to execution and compliance with contract terms. The Dhaka Stock Exchange has sought a copy of the Fundrich agreement, which the company has yet to submit, drawing investor attention.

Separately, MK Footwear signed an export deal on 24 March with Jinjiang Akia Sports, which will place a minimum annual order of 1 million pairs, subject to agreed designs and specifications, with expected export revenue of $8-10 million a year. Dedicated production capacity will be allocated, with standard terms on quality, delivery, and payment.

The expansion comes amid improved financials. In FY2024-25, revenue stood at Tk78.79 crore, while net profit rose 116% to Tk8.76 crore, partly driven by Tk6.37 crore in gains from selling shares of Legacy Footwear acquired at a lower cost.

The company earlier declared a 12% cash dividend for shareholders other than sponsors and directors for the year ended 30 June 2025.

The Dhaka stock market continued its upward momentum today, buoyed by a sharp rise in turnover and improving investor sentiment.

The benchmark index of the Dhaka Stock Exchange, DSEX, advanced by 34 points to close at 5,156, extending gains from the previous session. The blue-chip DS30 index also rose, adding 16 points to settle at 1,971, reflecting strong buying interest in fundamentally sound stocks.

Market activity saw a significant boost, with turnover surging by 27% to Tk597 crore, signalling a return of liquidity and growing investor confidence. The majority of listed securities posted gains, with 275 issues closing higher, compared to 70 decliners and 48 remaining unchanged, underscoring the strength of the rally.

According to EBL Securities, the market maintained its upward trajectory as investors showed renewed interest in beaten-down stocks, taking advantage of attractive valuations following recent corrections.

The brokerage noted that sentiment was further supported by ongoing ceasefire discussions related to the Middle East war, which helped ease global uncertainties and encouraged investors to re-enter the market.

The session began on a cautious note, with investors engaging in selective buying amid lingering concerns. However, as the trading day progressed, buying interest intensified, driven by supportive domestic cues and improving confidence. This shift in sentiment led to more decisive accumulation of stocks, ultimately pushing the indices higher by the close of trading.

Sector-wise, the pharmaceutical sector dominated trading activity, accounting for 16.8% of the total turnover, followed by the engineering sector with 13.9% and the general insurance sector with 10.8%. The strong participation across sectors suggests that the rally was broad-based rather than concentrated in a few stocks.

Among the most actively traded stocks were Lovello Ice-cream, Acme Pesticides, Khan Brothers PP Woven Bag, Techno Drugs, and Asiatic Laboratories, reflecting heightened investor interest in both large and mid-cap companies.

Most sectors ended the day in positive territory, with notable gains seen in ceramic, paper, and textile stocks, which rose 2.7%, 2.1%, and 1.8%, respectively. The food sector was the only segment to close in negative territory, albeit marginally, indicating limited profit-taking in an otherwise bullish market.

Top-performing stocks of the day included Regent Textile and Familytex, both of which gained the maximum allowable limit, followed by Lovello Ice-cream, Atlas Bangladesh, and BD Autocars, all posting strong price appreciation. On the losing side, Al-Arafah Islami Bank led the declines, followed by Uttara Finance, Sunlife Insurance, Asiatic Laboratories, and Unilever Consumer Care.

Meanwhile, the port city bourse also ended the session in positive territory, although with minor adjustments. The Selective Categories' Index and the All Share Price Index of the Chittagong Stock Exchange saw slight declines, suggesting a mixed but stable performance outside the main Dhaka market.