Bangladesh Bank has capped the interest and fees banks can charge on foreign currency trade financing at a maximum of 3 percentage points above internationally recognised benchmark rates, in a move aimed at easing costs for importers and exporters amid high global interest rates.

The central bank issued a circular in this regard yesterday (10 May).

According to the circular, banks from now on cannot charge more than the applicable benchmark rate, such as the Secured Overnight Financing Rate (SOFR) for US dollar-denominated financing or Euribor for euro transactions, plus 3% annually as the "all-in-cost" for short-term trade finance in foreign currency.

The new rule takes immediate effect from today (11 May).

The ceiling applies to three categories of foreign trade financing: short-term import trade finance, discounting of usance export bills, and advance payments against exports under open account transactions.

The "all-in-cost" includes interest, commissions, fees and other charges associated with such financing.

For example, if the (SOFR) for the US dollar stands at around 4.5%, banks will now be allowed to charge a maximum of around 7.5% annually for eligible trade finance facilities.

The latest instruction has replaced an earlier ceiling set by Bangladesh Bank in August 2025.

Bangladesh Bank officials said the revised framework aims to align Bangladesh's trade financing practices more closely with international market standards while preventing excessive markups by banks.

The measure is expected to benefit importers managing rising input costs as well as exporters seeking cheaper access to pre-shipment and post-shipment foreign currency financing.

Bangladesh Bank officials said the ceiling would also help ensure competitive pricing in trade finance and reduce the risk of businesses facing unusually high borrowing costs due to fluctuating global rates.

Oil prices rallied on Monday, a day after President Donald Trump said Iran’s response ‌to a US peace proposal was “unacceptable,” raising supply fears as the Strait of Hormuz stayed largely closed, which kept the global market tight.

Brent crude futures climbed $2.70 or 2.67 percent to $103.99 a barrel at 0902 GMT US. West Texas Intermediate was at $97.66 a barrel, up $2.24, or 2.35 percent. They rose to $105.99 and $100.37 ​a barrel, respectively, earlier in the session.

Last week, both contracts recorded 6 percent weekly losses on hopes for an imminent end to the 10-week-old conflict that would allow oil transit through the Strait of Hormuz. “Despite reassuring noises, our take is that the US and Iran are as ​far away from agreement as when this supposed ceasefire started,” analyst John Evans said.

“We do not see anything changing before Donald Trump visits China and asks for Beijing’s aid in pressuring Iran.”

Trump is scheduled to arrive in Beijing on Wednesday and is expected to discuss Iran among other topics with Chinese President Xi Jinping, according to US officials.

The world has lost about 1 billion barrels of oil over the past two months and energy markets will take time to stabilise even if flows resume, Saudi Aramco CEO Amin Nasser said on Sunday.

“Our bullish view remains and we align with Saudi Aramco’s opinion that even if Hormuz is settled and opened, it will take many months ‌for normality ⁠in oil supply to break out,” Evans said.

Saudi Arabian crude oil exports to China are expected to fall further in June after buyers cut nominations because of costly prices linked to the US-Iran conflict and lower supplies, trade sources told Reuters.

Meanwhile, three tankers carrying crude exited the Strait of Hormuz last week and on Sunday with trackers switched off to avoid Iranian attacks, Kpler shipping data showed. One was loaded with Iraqi crude and bound for Vietnam.

Japan’s ⁠industry ministry said a tanker carrying Azerbaijani crude oil was set to arrive as early as Tuesday, the first cargo of oil received from Central Asia since the Iran war began.

ANZ analysts ​expected Brent to remain above $90 per barrel through 2026 and around $80 to $85 per barrel into 2027 ​as demand growth ⁠resumes and inventories are gradually rebuilt.

In an attempt to hedge prices and ensure revenue, US producer Diamondback Energy bought options to sell the price difference between US West Texas Intermediate crude and Brent at around minus $42 a barrel in the coming months, a bet that could ⁠pay off ​if the US banned oil exports.

This would lead to a rise in domestic inventory as US refiners typically process less domestic crude than is produced in the country and would push down WTI prices and widen its discount to Brent.

Garment exporters yesterday urged the government to ensure uninterrupted power and energy supply, quick release of export receipts from banks, reopening of closed factories, and easing of customs rules.

Leaders of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) made the demands at a meeting with Prime Minister Tarique Rahman at his secretariat office in Dhaka.

In separate meetings with the two trade bodies, the prime minister listened to the problems and challenges they face in running their businesses.

After the meeting, BGMEA President Mahmud Hasan Khan said they discussed export diversification within the garment sector, reopening of closed factories, and the struggles many factories face for survival.

Regarding factory reopening, Khan said a total of 104 factories have informed the BGMEA about their closure so far. The BGMEA will scrutinise the cases of closed factories to identify the genuine reasons for the shutdowns. Following the scrutiny, the association will send recommendations for reopening those factories, as the government is working to open a Tk 20,000 crore fund to assist in their revival.

BKMEA President Mohammad Hatem said they thanked the prime minister for taking the initiative to defer Bangladesh’s graduation from the least developed country (LDC) category for three more years. The BKMEA also welcomed the government’s amendment of the labour law to meet international standards, as demanded by global stakeholders.

Hatem noted that some 400 factories were closed in the last three years, nearly 300 of them due to non-cooperation from banks. He explained that banks release export receipts to exporters’ lien accounts, but delays in payment often force loans into default, leaving exporters unable to pay suppliers on time.

He also demanded uninterrupted supply of power and gas to industrial units, as recent shortages of fuel oil have severely affected productivity. Hatem further raised concerns about the misuse of the bond facility and urged action against violators of bond licences.

Additionally, he called for easing National Board of Revenue (NBR) rules, particularly customs procedures, to smooth export and import processes and reduce lead times. He stressed that complex and time-consuming customs procedures have deterred both domestic and foreign direct investment.

Commerce Minister Khandakar Abdul Muktadir was present in both the meetings.

Sri Lanka will increase electricity rates by up to 18 percent from Monday to offset the additional costs of generating power using thermal plants due to the Middle East war, the Public Utilities Commission said.

Consumers using more than 180 units (kilowatt hours) of electricity a month will have to pay an additional 18 percent from Monday, while those using less than that will not see their bills affected.

“The increase will apply to industries, hotels, businesses and government institutions and religious places of worship consuming more than 180 units a month,” the commission said in a statement Sunday.

The measure is the latest in a series of steps taken by the island nation following the war in the Middle East.

The latest hike comes on top of a 40 percent tariff increase introduced last month.

Sri Lanka has also raised fuel prices by more than 35 percent and rationed the same following energy supply disruptions.

Higher energy prices have pushed inflation to more than double, reaching 5.4 percent in April, according to official data.

Sri Lanka has been slowly emerging from the 2022 economic meltdown, when it ran out of foreign exchange reserves to pay for essential imports such as food, fuel and medicines.

It was hit hard by a cyclone last year that killed at least 643 people and affected more than 10 percent of the island’s population of 22 million.

The storm caused an estimated $4.1 billion in direct physical damage to buildings and agriculture, according to the World Bank.

The country has been stabilising its fragile economy with the help of a $2.9 billion IMF bailout agreed in early 2023, but high energy prices have posed a serious challenge to recovery efforts.

The board of directors of Sonar Bangla Insurance Limited has recommended a 10% dividend, comprising 5% cash and 5% stock, for the financial year ended 31 December 2025.

Despite the dividend declaration and a sharp rise in annual profitability, the general insurer's share price dropped by 4.85% yesterday (9 May) to settle at Tk35.30 on the Dhaka Stock Exchange (DSE) following the disclosure.

The company reported a stellar performance for the full year 2025, with its consolidated earnings per share (EPS) skyrocketing by 245% to reach Tk0.69, up from the Tk0.20 recorded in 2024.

During the same period, the consolidated net asset value (NAV) per share stood at Tk20.02, while the net operating cash flow per share improved to Tk1.22 from Tk1.17 in the preceding year.

In its regulatory filing, the company said the stock dividend is aimed at reinvesting retained earnings to strengthen its paid-up capital base. The management also assured shareholders that the bonus shares will be issued from accumulated profits, not from any revaluation or capital reserves, thereby maintaining a healthy post-dividend balance sheet.

However, the company's most recent quarterly data suggests a slowdown in momentum. For the first quarter of 2026 (January–March), consolidated EPS fell to Tk0.26, marking a 41% decline from the Tk0.44 reported in the corresponding period of 2025. On a positive note, the quarterly net operating cash flow per share saw a significant improvement, rising to Tk0.50 from Tk0.19. As of 31 March 2026, the company's NAV per share inched up to Tk20.28.

To finalise the dividend and approve the audited financial statements, the insurer has scheduled its annual general meeting for 13 August. The record date for determining shareholder eligibility for the dividend has been set for 11 June.

Finance and Planning Minister Amir Khasru Mahmud Chowdhury on Sunday said the government has decided not to undertake projects that fail to ensure returns on investment, employment generation and environmental sustainability.
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He said many of the nearly 1,300 projects currently under the Annual Development Programme (ADP) do not meet these criteria and would be cancelled.

The minister made the remarks while addressing the inauguration ceremony of a project at the Palli Karma-Sahayak Foundation (PKSF) Auditorium as the chief guest.

PKSF Chairman Zakir Ahmed Khan presided over the event marking the launch of the second phase of the Recovery and Advancement of Informal Sector Employment (RAISE-2) project.

Financial Institutions Division Secretary Nazma Mobarek attended the programme as a special guest, while Acting World Bank Divisional Director for Bangladesh and Bhutan Dr Gail H Martin joined as the guest of honour.Bangladesh Investment Guide

“Many ongoing projects have little or no prospect of generating investment returns and fail to create employment opportunities,” the minister said.

In view of these concerns, the government has decided not to take up any new mega projects, he added.

The minister also stressed the need to establish democracy in the economy alongside political democracy.

“Due to oligarchic dominance, many people remain excluded from the mainstream economy. They must also be brought into the economic system,” he said.

Officials at the event said the second phase of the project aims to provide skills development and financial support to another 0.2 million youths, following the successful support extended to 0.21 million beneficiaries under the first phase.

PKSF Managing Director Mohammad Fazlul Kader delivered the welcome address.

Speakers at the programme said more than 0.42 million people are expected to benefit directly from the project by 2030.Economic Forecast Service

Under the second phase, priority will be given to youths from climate-vulnerable areas, including chars, haors, hill tracts and coastal regions. Special emphasis will also be placed on the inclusion of Dalits, ethnic minorities and persons with disabilities.

Oil prices jumped $3 a barrel on Monday (11 May) as the United States and Iran failed to agree to a peace ​proposal drafted by Washington while the Strait of Hormuz remained largely ​closed, keeping global energy supplies tight.

Brent crude futures climbed $3.18 or ⁠3.14% to $104.47 a barrel by 2336 GMT, extending a 1.23% gain on ​Friday.

US West Texas Intermediate was at $98.51 a barrel, up $3.09, or 3.24%, after settling ​0.64% higher in the previous session.

Hopes for an imminent end to the 10-week-old US-Iran conflict that would allow oil transit through the Strait of Hormuz were dashed after President Donald ​Trump on Sunday dismissed the Iranian response to a US proposal for ​peace talks as "unacceptable".

Trump is scheduled to arrive in Beijing on Wednesday and is expected to discuss ‌Iran ⁠among other topics with Chinese President Xi Jinping, according to US officials.

"Market attention now shifts squarely to President Trump's visit to China this week," IG market analyst Tony Sycamore said in a note.

"There is hope he can persuade ​Beijing to leverage its ​influence over ⁠Iran to push for a comprehensive ceasefire and a resolution to the ongoing disruption in the Strait of Hormuz."

The ​world has lost about 1 billion barrels of oil over the ​past two ⁠months and energy markets will take time to stabilise even if flows resume, Saudi Aramco CEO Amin Nasser said on Sunday.

Another two tankers laden with crude exited ⁠the ​Strait of Hormuz last week with trackers switched ​off to avoid Iranian attacks, Kpler shipping data showed, underscoring a rising trend to sustain Middle ​East oil exports.

Bangladesh's foreign exchange reserves have fallen below the $30 billion mark following the latest payment to the Asian Clearing Union (ACU).

Bangladesh Bank spokesperson and Executive Director Arief Hossain Khan today (10 May) said that the country's reserves stood at $29.48 billion under the BPM-6 calculation method.

"According to BPM-6, the central bank's reserves now stand at $29.48 billion, down from $30.96 billion reported on 7 April," he said.

The ACU is a regional payment arrangement that facilitates settlement of import transactions among its nine member countries – Bangladesh, Bhutan, India, Iran, Maldives, Myanmar, Nepal, Pakistan and Sri Lanka.

The payment mechanism allows the member states' central banks to settle eligible cross-border transactions on a multilateral basis. ACU payments are made every two months.

The government is set to implement the much-anticipated Padma barrage project at an initial cost of Tk 33,474 crore, aimed at reviving five major river systems and storing 2,900 million cubic metres of water in the Padma river.

The project, to be executed in two phases by 2033, will require a total investment of nearly Tk 50,443 crore.

Covering about 37 percent of Bangladesh’s land area, spanning 26 districts and 163 upazilas across four divisions, the Padma-dependent region has long suffered from water shortages due to upstream diversions.

The barrage is expected to be a game-changer for agriculture, fisheries, biodiversity, and economic growth.

The project gained momentum after a meeting on May 6 with Prime Minister Tarique Rahman, where he highlighted the project’s potential impact on GDP and gave directives for its implementation.

The feedback was incorporated and the proposal for the first phase is set to be placed before the Executive Committee of the National Economic Council on Wednesday for approval.

The first phase would be paid from the government’s own funds and it includes the construction of the 2.1km-long Padma barrage at Pangsha in Rajbari district.

The barrage will feature 78 spillways, 18 undersluice gates, two fish passes, a navigation lock, guide bunds, and approach embankments.

Hydropower plants will be set up at Padma barrage and Gorai off-take, which is the crucial entry point of the Gorai-Madhumati river. The plants will generate 113 megawatts of electricity.

The first phase also includes the dredging and re-excavation of the 135.6km Gorai-Madhumati river and 246.46km Hisna river systems.

The other works include Gorai off-take with 15 spillways, fish pass, navigation lock, and hydro-power plant (36.6 megawatt); Chandana off-take (four spillways); Hisna off-take (five spillways); and construction 180km afflux bund.

The Hisna off-take, often referred to in conjunction with the Hisna-Mathabhanga river system in Bangladesh, is a critical component in water management designed to restore flow from the Ganges river system.

The off-take is part of wider efforts to combat silting and ensure water supply during the lean season, acting as a crucial channel for diverting water into regional rivers like the Hisna.

However, activities under the first phase will directly benefit 19 districts and 120 upazilas in four divisions: Khulna (Kushtia, Meherpur, Chuadanga, Jhenaidah, Magura, Jashore, Narail, Bagerhat, Khulna, Satkhira), Dhaka (Rajbari, Faridpur, Gopalganj), Rajshahi (Pabna, Rajshahi, Natore, Naogaon, Chapainawabganj) and Barishal (Barishal, Pirojpur).

The second phase includes construction of additional supportive infrastructure and restoration of Chandana-Barasia, Baral and Ichhamati river systems.

Five river systems -- Hisna-Mathabhanga, Gorai-Madhumati, Chandana-Barasia, Baral and Ichhamati -- would be revived.

The revived river flows will reduce salinity intrusion in the southwest, restore biodiversity in the Sundarbans, and improve drainage and irrigation.

It would ensure water supply to the Ganges-Kobadak (GK) Irrigation Project, the North Rajshahi irrigation project, Godagari pump house, and Rooppur nuclear power plant.

The project would ensure irrigation for 2.88 million hectares of net cultivable land and boost the annual production of rice by 2.39 million tonnes and fish by 2.34 million tonnes.

The idea of a barrage on the Padma dates back decades.

Between 1960 and 2000, four studies were conducted to identify suitable sites. In 2005, a detailed feasibility study was launched, completed in 2013 by a consortium of local and foreign consultants.

The study highlighted dry-season water scarcity due to upstream withdrawals at India’s Farakka Barrage, which has severely reduced flows in Bangladesh, drying up river systems and damaging agriculture, fisheries, navigation, and biodiversity.

The country's premier bourse, the Dhaka Stock Exchange (DSE), extended its losing streak for the fourth consecutive session today (10 May), as a lack of favourable catalysts and persistent selling pressure on major large-cap scrips dampened investor sentiment.

The benchmark index opened the week on a dismal note, resulting in a significant erosion of the market's total valuation. In the last four consecutive sessions, the market capitalisation of the Dhaka bourse dropped by approximately Tk9,800 crore, settling at Tk6.76 lakh crore.

The benchmark DSEX index shed 13 points today, or 0.25%, to close the session at 5,220. The downturn was more pronounced in the blue-chip segment, with the DS30 index slipping by 11 points to reach 1,990.

The market breadth remained negative, as 194 issues declined compared to 161 that managed to advance, while 39 scrips remained unchanged on the DSE floor.

According to the daily market review by EBL Securities, market participants are currently adopting a cautious "wait-and-see" approach, monitoring for a major catalyst that could drive a persistently favourable momentum. The market witnessed sustained selling pressure across influential stocks, although participation remained evident as some investors shifted their focus toward small-cap and momentum-driven scrips.

Trading activity saw a notable contraction, with daily turnover on the DSE dropping by 14% to stand at Tk727 crore.

On the sectoral front, the engineering sector accounted for the highest share of turnover at 13.8%, followed closely by general insurance and the textile sector, both contributing 13.1%.

In terms of returns, the mutual fund sector emerged as the top performer, posting a substantial 6.7% gain. This rally was primarily driven by the regulatory directive for converting closed-end mutual funds into open-end structures, which triggered fresh buying interest across the segment. The tannery and jute sectors also managed to exert positive returns of 2.7% and 1.5%, respectively.

Conversely, sectors such as paper, ceramics, and textiles faced the steepest corrections, with the paper sector declining by 1.7%.

Individual stock performance reflected the day's volatility. The top gainers' list was heavily dominated by mutual funds, with AB Bank First Mutual Fund, First Bangladesh Fixed Income Fund, IFIL Islamic Mutual Fund, and PHP First Mutual Fund all hitting the 10% upper circuit limit. Continental Insurance also surged by 10% to join the top gainers.

On the flip side, Saiham Cotton was the top loser, shedding 5.60% of its value, followed by Alif Manufacturing, Sonar Bangla Insurance, Peoples Leasing, and Mir Akhter.

Liquidity was concentrated in a few specific scrips, with Monno Ceramic, Dominage Steel, BD Thai Food, Summit Alliance Port, and Apex Spinning emerging as the most traded stocks of the day.

The bearish sentiment was mirrored at the Chittagong Stock Exchange (CSE), where the key indices also ended in the red. The broad CASPI index dipped by 56 points to close at 14,646, while the CSCX ended 35 points lower at 9,012. Trading volume at the port city bourse remained relatively low, with turnover standing at Tk14.94 crore.

Bangladesh’s foreign exchange market came under mild pressure in March as heightened global uncertainty stemming from the Middle East war situation pushed up exchange-rate volatility and interbank dollar transactions, according to a monthly report by the central bank.

The interbank exchange rate rose to Tk 122.75 per dollar at the end of March from Tk 122.30 per dollar at the end of February 2026, reflecting marginal depreciation.

However, on a year-on-year basis, the movement in the exchange rate resulted in a nominal depreciation of 0.61 percent against the US dollar, said the report on exchange rate and foreign exchange market dynamics.

The variability in the exchange rate increased considerably, and rates moved within a wider range in March 2026 after a period of low variability since December 2025, according to the report published yesterday.

The Bangladesh Bank report said that while the spread in the interbank market and in the bank’s sales to clients remained stable, the spread in the bank’s purchase from the client market edged up on average to Tk 1.19 per US dollar in March from Tk 0.99 per dollar in February.

The global economic uncertainty stemming from the Middle East was propagated through the foreign exchange market, as reflected in the daily average spread of spot exchange rates, defined as the daily maximum minus minimum rate, said the report.

At the same time, the volume of daily average spot transactions rose to $62.17 million in March from $37.27 million in February as banks increased dollar trading amid growing global economic uncertainty.

“An increase in exchange rate flexibility and a rise in liquidity in the foreign exchange market led to a rise in interbank spot foreign exchange transaction volume on average in March 2026, with some fluctuation in daily transactions,” said the report.

At the same time, the volume of swap transactions edged up markedly during the period. The average daily swap transaction doubled to $100.82 million in March from $53.54 million in February.
As such, the share of swap transactions in total interbank transactions rose to 62 percent in March from 59 percent in February. By contrast, the share of spot transactions declined.

The Bangladesh Bank said swap transactions increased at a faster rate than spot transactions amid growing war-driven uncertainties.

The report said that since the foreign exchange market has experienced gentle pressure, the central bank reduced the pace of its foreign exchange purchases in March to only $25 million, far lower than $1.53 billion in February, “as a part of cautious and prudent market management.”

The Japan-Bangladesh Chamber of Commerce and Industry (JBCCI) has urged the government to undertake major VAT and tax reforms in the upcoming FY2026-27 budget, including introducing a single VAT rate, withdrawing minimum tax for loss-making companies and lowering corporate tax to attract investment.

Speaking at a pre-budget press conference in Dhaka today (10 May), JBCCI President Tareq Rafi Bhuiyan said Bangladesh is going through a critical economic transition amid global uncertainty, inflationary pressure, rising financing costs and preparations for post-LDC graduation.

In this context, he said, the national budget should prioritise investment, industrial competitiveness and fiscal modernisation instead of focusing mainly on revenue collection.

One of the chamber's key recommendations was reducing the standard VAT rate from 15% to 7.5% and introducing a unified VAT structure.

According to JBCCI, the existing multi-tier VAT system increases compliance costs, creates complexity and leads to classification disputes between businesses and tax authorities.

"A simplified VAT framework would improve the ease of doing business, particularly for SMEs and emerging industries," the chamber said.

JBCCI also called for the withdrawal of the minimum tax based on gross receipts for businesses incurring losses.

The chamber argued that the current system places additional financial pressure on companies even when they are not profitable, discouraging investment and affecting business sustainability.

It further proposed removing withholding tax obligations for loss-making firms and ensuring that excess tax deducted at source remains refundable.

Maria Haowlader, general secretary of the chamber, said delays in VAT and income tax refunds often create liquidity pressure and block working capital for businesses.

To address this, the chamber recommended introducing a faster, automated and time-bound refund mechanism to improve business confidence and tax compliance.

The business chamber also proposed reducing the corporate tax rate for the private sector from 25% to 20% to strengthen Bangladesh's competitiveness in attracting both local and foreign investment.

It noted that many competing economies are adopting lower corporate tax regimes to attract foreign direct investment, while Bangladesh's comparatively high tax burden discourages industrial expansion and capital inflow.

JBCCI further recommended rationalising Tax Deducted at Source (TDS) and withholding tax rates for suppliers, subcontractors, service providers, rental payments and foreign service providers.

According to the chamber, excessive advance and withholding taxes increase working capital pressure and raise the overall cost of doing business.

The chamber also sought reductions in customs duty, regulatory duty, advance tax and advance income tax on industrial raw materials, renewable energy equipment, healthcare products and manufacturing inputs to improve industrial competitiveness.

In addition, JBCCI proposed sector-specific fiscal support for industries including ready-made garments, information technology, pharmaceuticals, construction, agriculture and healthcare.

The recommendations include lower source tax on exports, tax holidays for strategic industries, VAT exemptions on machinery and raw materials, and incentives for green and sustainable investments.

Mutual funds rallied strongly today (10 May) after the Bangladesh Securities and Exchange Commission (BSEC) issued detailed guidelines for converting closed-end mutual funds into open-end structures, raising investors' expectations of improved liquidity and potential valuation gains.

All but one listed mutual fund closed higher during the session, while eight mutual funds secured spots among the top-10 gainers on the Dhaka Stock Exchange (DSE).

Market participants said the latest regulatory move has revived interest in the long-struggling mutual fund sector, where most closed-end funds have traded at steep discounts to their net asset value (NAV) for years.

Last Thursday, the securities regulator issued a comprehensive framework for converting closed-end mutual funds that face liquidation risks or mandatory transition into open-end structures.

Under rules published in the official gazette on 12 November last year, trustees of closed-end mutual funds must convene a special general meeting (SGM) if the average trading price of a fund remains over 25% below the higher of its issue price or fair-value-based NAV for six consecutive months.

At the SGM, unit holders will decide through secret ballot whether the fund will continue operations, convert into an open-end structure, or be liquidated. Approval from at least 75% of participating unit holders will be required.

The six-month compliance deadline expires on 12 May. Funds failing to meet the requirements after that date may have to initiate liquidation or conversion procedures.

According to market insiders, nearly 22 out of the country's 34 listed closed-end mutual funds may fall under the new regulatory framework because their market prices are currently trading more than 25% below their declared asset values.

An analyst at a leading brokerage house, requesting anonymity, said institutional investors are anticipating short-term gains from deeply discounted mutual funds, as conversion or liquidation prospects could help reduce the gap between market prices and underlying asset values.

"Strong buying pressure emerged in the mutual fund sector from the start of trading on Sunday," the analyst said.

Among the top performers, IFIL Islamic Mutual Fund-1 surged 10% to close at Tk4.40. At the same time, First Bangladesh Fixed Income Fund, PHP First Mutual Fund, AB Bank 1st Mutual Fund and Trust Bank 1st Mutual Fund each gained 10% to close at Tk3.30.

Meanwhile, NCCBL Mutual Fund-1 advanced 9.76% to Tk4.50, while EBL NRB Mutual Fund and LR Global Bangladesh Mutual Fund One rose 9.68% each to close at Tk3.40.

On the other hand, SEML FBLSL Growth Fund climbed 9.62% to Tk5.70, while Prime Bank 1st ICB AMCL Mutual Fund gained 8.89% to close at Tk4.90.

The latest BSEC directive provides detailed instructions regarding conversion timelines, valuation methods, voting structures, cost limitations, and investor rights.

The regulator has introduced a structured compliance framework involving trustees, asset managers, custodians, stock exchanges and depository institutions throughout the conversion process.

To prevent possible market manipulation, trading of fund units will remain suspended immediately after the announcement of the record date for voting.

If unit holders approve a conversion proposal, all assets, liabilities and management control of the fund will be transferred to the trustee, who will oversee and safeguard the assets until the process is completed.

The rules also make independent valuation mandatory. External auditors with no affiliation to the fund, trustee or asset manager will assess asset values, NAV and the financial condition of the fund before submitting separate valuation reports.

Following conversion, a newly structured open-end mutual fund will be required to issue a fresh prospectus, trust deed, and management agreement. Units of the new fund will be held in dematerialised form and traded or redeemed through stock exchanges.

Market participants believe the transition could significantly improve liquidity in the mutual fund sector by allowing investors to redeem units more easily than under the existing closed-end structure.

The regulator has also capped conversion-related costs at 1% of total fund size. Asset managers will be allowed to charge a maximum fee of 0.50%, while trustees can receive up to Tk1 million per scheme.

Additionally, trustees must obtain board approval at least 150 days before fund maturity or planned conversion. Once approved, price-sensitive information (PSI) must be disclosed through newspapers, online platforms and stock exchanges.

Market analysts believe the new regulations could reshape Bangladesh's mutual fund industry in the coming months, with nearly two-thirds of listed closed-end funds potentially facing consolidation, liquidation or structural transformation.

However, analysts cautioned that fund managers may face short-term operational challenges in adapting to stricter compliance requirements, valuation standards and investor voting procedures.

BSEC Director and spokesperson Abul Kalam told TBS that the open-end structure would offer greater flexibility and improved liquidity for investors, as units could be redeemed more easily.

He added that many closed-end mutual funds had long traded at substantial discounts to NAV, raising investor concerns over valuation practices and governance transparency.

According to him, the latest reform aims to address those long-standing inefficiencies by creating a more transparent and flexible exit mechanism for unit holders.

To move the country's capital market beyond its share-dependent structure, the regulator and Chittagong Stock Exchange (CSE) have intensified efforts to launch a commodity derivatives market.

Stakeholders say commodity derivatives could open a new horizon by introducing new products, risk management tools and a modern price discovery framework. However, the initiative has been delayed several times due to gaps in technology, legal readiness, broker preparedness and policy coordination.

These issues were highlighted at a workshop titled Commodity Exchange: Potential, Structure and Future, jointly organised in the capital on Sunday by the Capital Market Journalists' Forum and Chittagong Stock Exchange.

Speaking as chief guest, Bangladesh Securities and Exchange Commission Commissioner Farzana Lalarukh said, "We want to take the capital market to a much higher level. But we also need to understand how prepared we really are. We want to move forward with full readiness."

She said CSE's commodity derivatives regulations were approved at a commission meeting in 2025 and most regulatory work has already been completed. The next phase will begin once the exchange ensures readiness, product selection and operational capacity.

Farzana Lalarukh said the country's capital market has three main pillars – equity, bonds and commodities. However, Bangladesh's market has long remained largely equity-dependent.

Emphasising the responsible role of journalists in avoiding confusion or rumours among the public regarding commodity derivatives, she said, "Your pen is very powerful. Please write about commodities in a way ordinary people can understand. It has to be explained from the basics."

She added, "Some progress is being seen in the bond market. Now we want the derivatives market to develop as well."

She explained that the two major objectives of the derivatives market are price discovery and hedging – meaning creating expectations about future prices and protecting against price risks. She noted that this could play an important role in an agriculture-based economy.

Chittagong Stock Exchange Chairman AKM Habibur Rahman said around Tk100 crore has already been invested to launch the commodity derivatives segment. However, further investment will be needed to make it fully operational.

He said, "We have been preparing for this since 2023. We had hoped to launch it last year, but that was not possible. We expect the segment to become operational within this year."

Chittagong Stock Exchange Managing Director Saifur Rahman Mazumder said the country's stock market is still operating mainly as a "simple equity market". Introducing derivatives or commodity products like developed markets would require major changes in the technological and regulatory framework.

He said the country's exchange technology is still heavily dependent on foreign sources. Since advanced trading platforms, servers, software and hardware are import-dependent, both time and costs have increased.

"We completed most of the technological preparations around one and a half years ago. But we could not move forward because of some legal and coordination-related limitations," he said.

CSE Managing Director Saifur Rahman Mazumder acknowledged that the project had been delayed due to a lack of coordination among different agencies and stakeholders.

In his view, "To create a new market, the regulator, exchange, brokers and government all need to work together. No new product can succeed without a coordinated effort."

He added that launching the commodity market would require new types of brokers, authorised traders and a separate legal framework. Preparatory work is still ongoing.

Stakeholders said cash-settled futures trading in comparatively simple products will be introduced first. Later, essential agricultural products such as rice and wheat are also planned to be included.

According to stakeholders, the country's capital market has long suffered from weak confidence, low liquidity and a limited range of products. In that context, commodity derivatives could create new opportunities. However, success will require equal emphasis on technological capability, strict regulation, skilled participants and investor awareness.

The workshop was chaired by Capital Market Journalists' Forum President Monir Hossain, while CMJF Secretary Ahsan Habib moderated the event

Bangladesh has failed to capture a significant share of China's declining apparel exports to the United States despite sharp tariff-driven falls in Chinese shipments, with much of the diverted business instead moving to Vietnam and Cambodia, according to the latest US import data and industry experts.

Data released by the Office of Textiles and Apparel show that US apparel imports fell nearly 12% year-on-year during the January-March period of 2026 following the imposition of reciprocal tariffs from mid-2025.

Bangladesh's apparel exports to the US market declined 8.38% during the three months compared with the same period a year earlier.

The decline was not limited to Bangladesh. Eight of the top 10 apparel exporters to the US market recorded lower shipments during the period. However, while exports from China and India fell sharply by 53% and 27%, respectively, Vietnam and Cambodia managed to increase exports by 2.77% and 18%.

Industry experts said the relatively higher tariffs imposed on China and India reduced US imports from those countries, but Bangladesh was not emerging as the primary alternative supplier.

Instead, countries such as Vietnam, Cambodia and Indonesia are capturing a large share of China's lost market.

Sheheb Udduza Chowdhury, vice-president of the Bangladesh Garment Manufacturers and Exporters Association, said China maintains a strong position in man-made fibre apparel, while Vietnam, Indonesia and Cambodia have also developed strong manufacturing capacity in the segment with substantial Chinese investment.

"Since China is facing difficulties because of the additional tariffs, many of those purchase orders are shifting to these countries," he told The Business Standard.

"That is why Bangladesh is not being able to capture the market share left by China."

Mohiuddin Rubel, an apparel industry researcher and former BGMEA director, said countries like Vietnam, Indonesia and Cambodia are effectively utilising Chinese raw materials to consolidate their hold on the market segments China is being forced to vacate.

US apparel imports decline

According to Otexa data, the United States imported apparel products worth $17.76 billion during January-March 2026, compared with more than $20 billion during the same period a year earlier.
Photo: TBS Infograph
Photo: TBS Infograph

Despite the decline, Vietnam retained its position as the largest apparel exporter to the US market, with exports valued at $39.84 billion.

Bangladesh moved into the second position from February this year, overtaking China for the first time. Bangladesh's exports stood at $2.03 billion, while China's exports fell to $1.69 billion.

Indonesia, India, Cambodia, Mexico, Pakistan and Honduras followed among the leading apparel exporters to the US market.

Exporters expect recovery after June

Bangladeshi apparel exporters said export growth is likely to remain subdued globally, including in the US market, until June, although they expect conditions to improve in the second half of the year.

Sheheb Udduza Chowdhury said export momentum could improve from the months following July.

He said exporters expect the current market uncertainty to ease by then and anticipate a more permanent resolution regarding US reciprocal tariffs, which could help revive demand.

Tariff uncertainty persists after court ruling

Meanwhile, uncertainty surrounding the US reciprocal tariff regime continues after the Trump administration appealed against a court ruling related to the 10% tariff.

International media reported that a US court on 7 May ruled in favour of three companies challenging the tariff. However, exporters said the ruling currently applies only to the three plaintiffs involved in the case.

Reuters reported that the Trump administration filed an appeal against the ruling the following day.

As a result, Bangladeshi exporters said the 10% tariff remains effective until a final judicial decision is reached.

Mohiuddin Rubel said the court had not suspended collection of the tariff entirely and that the verdict was based solely on arguments presented by the three individual plaintiffs.

"The Trump administration filed an appeal on May 8, 2026, against the court's ruling regarding Section 122," he said.

"If the administration's appeal is accepted, importers will not be able to reclaim the 10% tariff. Conversely, if the appeal is denied, those importers will be able to apply for refunds. The same process will apply to others who are applying or preparing to apply."

The country's banking sector posted robust profits in 2025 despite a sharp slowdown in private sector lending as higher returns from government treasury securities increasingly replaced traditional business lending as the sector's main source of income, raising concerns among economists and bankers over the sustainability of the model.

Several private banks, including BRAC Bank, City Bank, Midland Bank, Prime Bank and Jamuna Bank, reported strong profit growth during the year, driven largely by investments in government securities that offered comparatively risk-free returns amid weak demand for loans from businesses.

According to published financial statements compiled by financial advisory firm Lion City Advisory, several banks posted strong earnings, with BRAC Bank and City Bank both crossing the Tk1,000 crore mark in 2025.

BRAC Bank recorded the highest net profit in the sector, posting Tk2,250 crore in 2025, up 57% from Tk1,432 crore a year earlier. The bank's investment in government treasury securities rose to Tk40,647 crore in 2025 from Tk28,671 crore a year ago, accounting for 31% of its total assets. Treasury investments contributed 32% of its total income during the year.
Infograph: TBS
Infograph: TBS

City Bank reported a consolidated net profit of Tk1,324 crore in 2025, marking a 31% increase from Tk1,014 crore in 2024. The bank's treasury investment rose sharply to Tk19,125 crore from Tk12,487 crore a year earlier, representing 23% of its total assets. Treasury operations accounted for 35% of the bank's income in 2025.

Jamuna Bank invested Tk19,402 crore in treasury securities, accounting for 45% of its total assets, up from Tk12,411 crore in 2024. The bank generated 23% of its operating income from lending to the government.

Midland Bank increased its treasury investment to Tk3,273 crore in 2025 from Tk2,127 crore a year earlier, with government securities accounting for 26% of its total assets. Treasury income contributed 37% of the bank's total income during the year.

NCC Bank also significantly expanded its exposure to government securities. Its investment in treasury securities rose to Tk9,100 crore at the end of December 2025 from Tk6,591 crore a year earlier. The bank earned Tk609 crore from treasury operations in 2025, accounting for 21% of its operating income.

Shift towards government securities

Bankers say the combination of high lending rates, weak business confidence and global uncertainty has discouraged private sector borrowing and pushed banks towards safer investment instruments.

According to Bangladesh Bank data, private sector credit growth fell to 6.03% in February, the lowest level in 21 years. The figure declined from 6.1% in December and remained far below the 10.13% growth recorded in July 2024.

Although credit growth briefly rose to 6.58% in November, analysts attributed the increase to loan restructuring ahead of the 12 February national election rather than fresh investment in productive sectors.

At the same time, government borrowing from the banking system accelerated sharply.

Data from Bangladesh Bank, the Centre for Policy Dialogue and the Asian Development Bank show that total banking sector deposits rose to Tk21 lakh crore at the end of December 2025 from Tk18.83 lakh crore a year earlier, representing an increase of 11.57%.

Meanwhile, banks' investment in treasury bills and bonds surged more than 40% year-on-year to Tk5.38 lakh crore from Tk3.82 lakh crore.

Total banking sector assets stood at Tk28.09 lakh crore at the end of 2025, growing by only 6% compared with the previous year.

Ershad Hossain, director at Putnam Capital Advisory Pte Ltd, said banks were increasingly moving away from lending to businesses and relying heavily on government securities offering yields of around 10% to 12%.

"Private sector credit growth has dropped to 6.03%, a 21-year low, while government borrowing from banks has surged by 24%, exceeding the central bank's ceiling," he said.

"This shift has fundamentally altered banks' income structure, with the majority of operating income now coming from government securities rather than traditional lending."

He also warned that the trend is already affecting the broader economy. Imports of capital machinery, a key indicator of industrial investment, fell 10.43% between July 2025 and March 2026, while banks now hold 67% of public debt. He added that the sector's capital adequacy ratio had dropped to 1.53%, far below the minimum regulatory requirement of 12.5%.

Concerns over crowding out

Economists have warned that excessive government borrowing from banks could crowd out private sector investment by reducing the availability of credit for businesses.

They say prolonged dependence on treasury income could weaken industrial expansion, slow job creation and reduce long-term economic growth.

City Bank Managing Director Mashrur Arefin described the rise in treasury investments at the expense of loan growth as "a major negative signal" for the economy.

"Over the past year, there has been virtually no alternative to making profits from treasury bills because businesses are not borrowing," he said.

According to him, political uncertainty, external economic risks and weak investor confidence have discouraged businesses from opening large letters of credit or importing capital machinery. Even borrowers with approved credit limits are not fully utilising them.

He said banks with strong public confidence and stable deposit inflows were placing increasing amounts of liquidity into government securities because demand for corporate loans remained weak.

Mashrur warned that the trend was not sustainable in the long run.

"If credit growth does not recover, economic growth will eventually slow and banks themselves will suffer," he said.

He added that City Bank is shifting focus towards small loans, digital nano-credit and microfinance through platforms such as bKash to offset weaker corporate lending demand.

Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue, described the growing dependence on treasury income as an "underlying weakness" in the banking sector.

He said a sustainable banking model should rely primarily on financing productive private sector activities and supporting entrepreneurship rather than depending on government borrowing.

"Investment in government securities may be safe, but it does not directly contribute to investment growth or employment generation," he said.

According to him, businesses remain reluctant to borrow because of geopolitical tensions, political uncertainty and an unfavourable business environment.

He said improving logistics support, introducing effective single-window services and reducing the cost of doing business would be necessary to revive private investment and encourage banks to increase lending to productive sectors again.

Abdullah Al Faisal, director at Lion City Advisory Limited, said the growing reliance on treasury income reflected rising risk aversion among banks and weakening credit demand.

"Such income is non-core and highly sensitive to interest rates, making bank profitability less sustainable over time," he said.

Economists and bankers alike caution that while treasury investments currently offer attractive and secure returns with virtually no default risk, the continued shift away from productive lending could weaken the banking sector's long-term role in supporting economic growth.

The corporate tax rate for the private sector should be reduced to remain competitive in attracting foreign investors and supporting industrial growth, business leaders said yesterday.

“Bangladesh should reduce the corporate tax rate to 20 percent from 25 percent to remain competitive with regional economies such as Vietnam, India, and Indonesia, which attract investment through favourable tax policies,” said Tarek Rafi Bhuiyan Jun, president of the Japan-Bangladesh Chamber of Commerce and Industry (JBCCI).

He made the remarks at a press conference organised by the chamber at Ascott The Residence in Baridhara, Dhaka, yesterday.

Lower corporate tax would spur industrial expansion, create jobs, and boost long-term revenue through increased economic activity, he said.

Japan-Bangladesh Chamber urges government to restore the 15 percent corporate tax rate for the textile sector, which was raised to 25 percent in FY26
The trade body urged the government to restore the 15 percent corporate tax rate for the textile sector, which was raised to 25 percent in FY2025-26, saying the higher rate could hurt export competitiveness and business sustainability.

“The opportunity lies in expanding the tax base and modernising the revenue administration, rather than just increasing the burden on existing compliant taxpayers,” Bhuiyan said.

Simplifying VAT procedures and rationalising tax deducted at source (TDS) rates would improve compliance and ease cash-flow constraints on small and medium-sized enterprises, he added.

Maria Howlader, secretary general of JBCCI, stressed the need for a more predictable and investment-friendly tax regime.

Highlighting the chamber’s direct tax proposals, Howlader said the recommendations focused on corporate tax rationalisation, reforms to TDS, adjustment of advance tax provisions, minimum tax rationalisation, and faster tax refunds.

She also called for relaxing some conditions tied to the 20 percent tax rate for listed companies, saying the existing requirement of maintaining at least 10 percent public shareholding through IPOs and specific banking transaction conditions was impractical.

“Bangladesh has made notable progress, but structural bottlenecks continue to increase the cost and time of doing business, directly affecting trade flows, foreign investment and supply chain reliability,” said Asif A Chowdhury, former president of JBCCI.

According to him, logistics costs in Bangladesh account for around 12 percent to 15 percent of GDP, compared to 8 percent to 10 percent in competing economies.

Focusing on maritime connectivity, Chowdhury said Chittagong Port Authority should introduce 24-hour operations, including nighttime vessel navigation, to reduce congestion and overall costs.

“Targeted reforms in logistics and trade facilitation can significantly reduce the cost of doing business, improve reliability and position Bangladesh as a more attractive destination for foreign trade and investment,” he said.

Manabu Sugawara, former president of JBCCI, expressed optimism over the upcoming national budget, saying the country now has an opportunity to strengthen investor confidence following the signing of the Japan-Bangladesh Economic Partnership Agreement (EPA).

Sugawara said the EPA had reached a crucial stage and was now awaiting ratification by the parliaments of both countries.

He stressed that focus should not be limited to tax collection alone, adding that the effective utilisation of tax revenues was equally important for sustaining economic growth and attracting foreign investment.

The Bangladesh Special Economic Zone is showing promise as a manufacturing hub, with swift land handover and private-sector efficiency drawing investments into the zone, according to the Bangladesh Economic Zones Authority (Beza).

Three companies currently in operation are driving initial industrial activity at the zone, widely known as the Japanese economic zone, with combined investments exceeding $97 million and generating thousands of jobs, said the authority.

The investment pipeline at the Japanese economic zone shows a growing mix of manufacturers at various stages of approval.

New proposals are emerging in battery manufacturing, with discussions underway with potential Japanese investors.
Mohammad Zakaria Mithu Director at Beza
Out of the 12 companies that have entered the zone so far, three are already in production -- Singer in electronics, ArtNature in specialised manufacturing, and Lion Kallol in the chemical sector, said Mohammad Zakaria Mithu, director (MIS and research) at Beza.

This pipeline highlights rising interest in sectors such as electronics, packaging, chemicals and engineering, signalling an expanding industrial base.

“New proposals are emerging in battery manufacturing, with discussions underway with potential Japanese investors,” he added.

Singer Bangladesh Limited leads in both scale and employment, having invested more than $75 million and employing over 1,700 local workers. The company has plans to nearly double its workforce.

Lion Kallol Limited, though smaller in scale, is gradually expanding. ArtNature Bangladesh Limited stands out for its labour-intensive operations, employing more than 2,500 locals alongside a significant number of foreign staff.

Together, these three reflect steady progress in positioning the zone as a hub for export-oriented manufacturing, with further investment and employment expected in the coming years.

Mithu described the progress as encouraging, noting that more investors are expected as pending land issues are resolved.

Around 230 acres have already been handed over, while the remaining 268 acres are expected to be transferred within this year under the development agreement. An additional 500 acres is under discussion for future expansion, subject to negotiations involving the Economic Relations Division and development partners.

According to the Beza director, infrastructure development is also progressing. A 230 kV substation is likely to be completed this year and handed over through the Power Grid Company of Bangladesh, which is expected to significantly improve electricity supply to the zone.

However, Mithu said that gas connectivity remains uncertain amid the ongoing national energy crisis. Although the central gas station has already been constructed, supply will depend on availability.

Employment generation is beginning to take shape, with around 3,000 jobs already created. Once fully operational, the zone is expected to employ between 70,000 and 80,000 people.

Mithu said investor enquiries have increased significantly since February 12, signalling growing confidence among foreign investors under the elected government.

Ashik Chowdhury, executive chairman of Beza, said the zone’s rapid progress highlights the advantages of government-to-government (G2G) collaboration when paired with experienced foreign developers.

“Once the zone was handed over, the Japanese side moved very quickly with development,” he said.

Chowdhury noted that foreign partners typically operate with clear commercial targets, enabling faster decision-making and higher execution standards.

“They have experience running economic zones elsewhere, and that reflects in both speed and quality,” he added.

He said the zone’s progress underscores the importance of completing key agreements early. Once foundational arrangements are in place, developers can move independently, maintaining momentum without prolonged administrative delays.

He described this model as essential for Bangladesh as it seeks to attract foreign investment and build competitive industrial infrastructure.

“Our priority is to ensure development happens quickly and efficiently-- and this model helps achieve that,” he said.

Bangladesh’s small and medium enterprise (SME) sector accounts for 99 percent of the country’s industries, yet many businesses remain trapped by poor market linkages, limited modernisation, and inadequate industrial support.

A recent visit to two major SME clusters -- the light engineering hub in Pabna and the handloom cluster in Kumarkhali, Kushtia -- found entrepreneurs struggling to expand despite receiving training and loans from the state-run SME Foundation.

LIGHT ENGINEERING STRUGGLING TO SCALE

For many in Pabna, light engineering has long offered a path out of poverty.

Rabiul Islam Farhad, owner of Baba Engineering, spent decades rising from labourer to entrepreneur.

“I bought a machine with my savings ten years ago. Now, I employ ten workers,” he said.

Despite producing intricate vehicle parts and industrial components, the sector still lacks formal recognition and technical support.

“With even minimum technical support, our handmade products could be recognised in the national automobile sector,” Rabiul added.

Gias Uddin Shiplu, a third-generation entrepreneur at Kafil Uddin Engineering, manages 27 machines but says growth remains constrained by shortages of raw materials, processing facilities, and automated machinery.

“As Pabna is already one of the leading hubs for light engineering in Bangladesh, establishing moulding facilities would help the sector flourish,” he suggested.

Shiplu noted that training is less of a concern, as many workers have already received instruction from the SME Foundation, which has also organised workshops to build business networks.

HANDLOOM SECTOR LOSING GROUND

In Kumarkhali’s handloom cluster, entrepreneurs say the industry is shrinking rapidly.

Md Abdur Rafik, owner of Bulbul Textile, said the number of operational looms has fallen from 5,000 two decades ago to just 1,500 today.

“Our production costs are too high to compete due to the lack of automated machinery,” he said.

Md Masud Rana, owner of Rana Textile and a fourth-generation entrepreneur, said Kumarkhali bedsheets received Geographical Indication (GI) recognition but producers still lack export facilities.

“We are dependent on a local market that is too small to support expansion,” he said.

Rana suggested supplying thread at mill rates to help improve profit margins and sustain the sector.

SECTOR-WIDE CHALLENGES

According to SME Foundation data, around 70,000 factories operate across 177 SME clusters nationwide, generating an annual turnover of Tk 30,000 crore.

A 2024 report by the Bangladesh Bureau of Statistics said there are 1.18 crore industries in the country, 99 percent of which are SMEs. The sector contributes 30 percent to the economy and provides 85 percent of industrial employment, involving more than 3 crore people.

Mohammed Morshed Alom, deputy general manager of the SME Foundation, said most entrepreneurs inherit their trades but lack sufficient technical knowledge and advanced skills.

Since its establishment in 2007, the foundation has surveyed enterprises nationwide and focused on developing entrepreneurial and technical skills, he said.

Farzana Khan, another deputy general manager, said the foundation has disbursed Tk 295 crore in loans through 15 scheduled banks and financial institutions and plans to provide another Tk 440 crore.

Entrepreneurs can access loans ranging from Tk 1 lakh to Tk 25 lakh at single-digit interest rates.

Beyond financing, the foundation regularly organises training programmes in Dhaka and across industrial clusters with support from the Bangladesh Industrial Technical Assistance Center (BITAC), chambers of commerce, and district administrations.

Around 20 lakh people have received training over the past two decades. The foundation also organises fairs in Dhaka and other major cities to improve market linkages for SMEs.

According to foundation data, both loans and training support have been extended to the Pabna Light Engineering Cluster and Kumarkhali Textile Cluster.

How big is the jet fuel threat to Europe’s summer holidays? The EU says it is not facing shortages yet, but it is readying for the worst -- and weighing options including using US kerosene as a back-up.

The US-Israeli war with Iran and the closure of the Strait of Hormuz have sent aviation fuel prices soaring and raised the spectre of shortages during Europe’s peak travel season.

On Friday, the EU Aviation Safety Agency (EASA) cleared the way for the use of Jet A, a US-produced aviation fuel that is not currently used in Europe except on return flights from the United States for technical reasons.

In new recommendations, EASA said: “A potential introduction of Jet A in Europe or in other parts of the world would not generate safety concerns provided that its introduction is properly managed.”

US-produced Jet A has a higher freezing point from the Jet A‑1 fuel used elsewhere in the world -- making it less resistant to very low temperatures during long-haul flights.

The EASA conditioned its use, warning that its introduction into a system historically running on Jet A‑1 could see “operational” risks when both fuels are used.

At the same time, the European Commission outlined measures available to member states to optimise jet fuel use, including aircraft loading and the allocation of airport slots.

WHAT ABOUT EUROPE’S JET FUEL STOCKS?

Brussels has repeatedly insisted the 27-nation EU is not yet facing jet fuel shortages.

“At this stage, this is more a problem of economics and fuel costs than availability,” Matteo Mirolo, an aviation transport specialist, told AFP.

But “we do have to think about supply, especially as this will not be the last crisis we face.”

Before the Middle East war, around 20 percent of the kerosene consumed in Europe transited through the Strait of Hormuz that has been effectively closed by the conflict.

As prices have surged, several airlines, particularly low-cost carriers, have announced flight cancellations.

If the crisis drags on, Brussels is preparing for possible “security of supply issues,” EU energy commissioner Dan Jorgensen said Tuesday.

“We are not there yet, but it can happen,” Jorgensen said.

The commission said last week it would establish a “fuel observatory” to track EU production, imports, exports and stock levels of transport fuels. It is expected to be up and running in coming days.

Until now, the EU has lacked a detailed overview of strategic fuel stocks across member states.

European legislation requires countries to hold oil stocks equivalent to 90 days of net imports and 61 days of domestic consumption, but does not distinguish between different products such as petrol, diesel or jet fuel.

A commission source said some countries, such as Ireland, are more at risk due to a lack of refining capacity, while others, including Finland, appear better prepared.

The same source also voiced concern some airlines may be using the crisis as an opportunity to drop unprofitable routes.

WHAT HAS THE EU ANNOUNCED?

The commission on Friday clarified the rules for governments and airlines on which existing tools can be deployed to ensure jet fuel is used as efficiently as possible and at the lowest possible cost.

It also eased rules restricting “tankering”, the practice of aircraft carrying more fuel than necessary to avoid buying more expensive fuel at other airports.

And Brussels confirmed there would be temporary flexibility on airport slots to prevent airlines that exceptionally give up slots because of high fuel costs from being penalised in future slot allocations.

On the sensitive subject of passenger rights, the EU said airlines may be exempt from paying customers compensation if they can prove a cancelled fight was due to “extraordinary circumstances”, like a local fuel shortage.

If the crisis drags on, the EU is considering coordinated action by member states to release emergency stocks and voluntarily share jet fuel themselves.

In the longer term, Brussels is also stressing the need to develop non‑fossil sustainable aviation fuels (SAF).