The Bangladesh Bank (BB) has extended the deadline for distressed borrowers to apply for policy support by six months, to June 30, 2026.

The previous deadline was the end of December last year.

A BB circular issued yesterday said banks may provide special restructuring facilities for unclassified loans until the new deadline. Loans classified as substandard, doubtful, and bad/loss as of March 31, 2026, will also be eligible for special rescheduling benefits.

However, borrowers who have already received policy support under the earlier circular or through the restructuring selection committee will not be eligible for reconsideration.

The central bank issued the fresh instructions to reinforce the implementation of earlier policy support guidelines.

BB also instructed banks to dispose of applications within three months of receipt. Applications will become effective only after the encashment of down payments made in favour of banks.

The directive came into immediate effect under Section 49(1)(d) of the Bank Company Act, 1991.

In January last year, the central bank formed a five-member committee to provide necessary policy support for restructuring corporate borrowers that had defaulted on loans due to factors beyond their control.In September last year, the BB also issued a unified special loan rescheduling policy to maintain economic growth and support borrowers who had defaulted due to circumstances beyond their control.

Under the policy support, distressed businesses will be able to get up to 15 years for repayment, with down payments as low as 1 percent to 2 percent and grace periods of up to three years.

Bangladesh and Pakistan on Saturday reaffirmed their commitment to deepening bilateral engagement and expanding cooperation across key sectors, as senior ministers from the two countries held talks in the capital, with a focus on regional connectivity and people-to-people contacts.
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The discussion took place when State Minister for Foreign Affairs Shama Obaed Islam met visiting Pakistan’s Minister for Interior and Narcotics Control Syed Mohsin Raza Naqvi at a city hotel, according to a Foreign Ministry press release.

During the meeting, the two ministers discussed a wide range of issues of mutual interest and expressed satisfaction over the recent momentum in bilateral engagement, reaffirming their shared commitment to further strengthening relations between the two countries.

They observed that significant untapped potential remains for expanding cooperation in trade and commerce, sports, culture, women’s entrepreneurship, education, science and technology, and digital innovation.

The two sides also underscored the importance of enhancing people-to-people contacts and promoting greater institutional collaboration to deepen bilateral ties.

Shama reiterated the Bangladesh government’s commitment to revitalising the South Asian Association for Regional Cooperation (SAARC) as an important platform for regional cooperation, connectivity and shared prosperity.

Both sides stressed the need for stronger regional cooperation for the collective benefit of the people of South Asia.

Bangladesh Shipping Corporation reported a 16% year-on-year decline in net profit for the January-March quarter of FY2025-26, as a sharp fall in interest income from fixed deposits offset strong revenue growth.

According to the company's unaudited financial statements, quarterly revenue rose 19% to Tk158.63 crore. However, net profit dropped to Tk63.79 crore from the corresponding period last year, with earnings per share (EPS) falling to Tk4.18 from Tk4.95.

The state-run shipping company said income from Fixed Deposit Receipts (FDRs) plunged 60% to Tk25.51 crore during the quarter after it utilised a large portion of its cash reserves to finance fleet expansion.

In September 2025, the BSC board approved the purchase of two bulk carriers from China at a cost of $76.7 million, or around Tk935 crore – the first vessel acquisition funded largely through the company's own resources. To finance the move, BSC withdrew nearly Tk700 crore from its FDR accounts, while the remaining amount was arranged through borrowing.

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For the first nine months of FY26, BSC's revenue increased 7% to Tk459 crore, though cumulative net profit declined 9% to Tk200 crore.

Its net asset value (NAV) per share rose to Tk115.45 due to higher retained earnings, while net operating cash flow per share (NOCFPS) fell to Tk16.80 amid higher interest expenses and supplier payments.

The corporation is also facing geopolitical risks in international shipping operations. Its vessel, MV Banglar Joyjatra, has remained stranded at Jebel Ali Port since 11 March with 31 Bangladeshi sailors onboard due to escalating Iran-US-Israel tensions. The incident comes years after the 2022 missile strike on MV Banglar Samriddhi at Ukraine's Olvia port.

Despite the temporary pressure on profitability, company insiders said the new vessel acquisition is expected to strengthen BSC's long-term operational capacity and reduce dependence on chartered ships. BSC shares closed 0.48% lower at Tk103.40 on Thursday at the Dhaka Stock Exchange.

Global stock markets diverged and oil prices rose Friday as fresh US-Iran clashes in the Strait of Hormuz jolted hopes for a deal to end the Middle East war and reopen the crucial waterway.

While European bourses retreated, the S&P 500 and Nasdaq indices both pushed to fresh records on solid US jobs numbers. The Dow ended flat.

"No negative news sticks to this bull market, and it just keeps working its way higher," said CFRA Research's Sam Stovall.

A US fighter jet disabled two Iranian-flagged tankers to enforce a port blockade on Friday, prompting retaliatory attacks from Iran. The latest incident came after another flare-up overnight in the strait.

Meanwhile, US data showed the economy added 115,000 jobs in April, more than double the forecast.

But US consumer confidence was at an all-time low according to a University of Michigan survey, with Americans weighed down by concerns about high prices and the fallout of the US-Israel war on Iran.

Stovall cited both the consumer confidence figure and the brittle conditions in the Middle East as headwinds the market has shrugged, but added, "I would not be surprised if we do see some digestion of recent gains take place in the near-term."

Bret Kenwell, eToro's US investment analyst, noted that if the labor market and broader economy continue to hold up as rising energy prices fan inflation, the Fed will have less justification to cut interest rates.

"In other words, good news may actually be good news again -- just not for investors hoping the Fed rides in with quick rate cuts," he said.

Investors often consider bad economic news to be good news in the sense it increases chances of interest rate cuts.

The dollar retreated against its main rivals.

Europe's main stock markets finished the day lower.

The British pound held up as Keir Starmer vowed to carry on as UK prime minister after his Labour Party suffered big losses to the hard-right in local elections.

Critics say Starmer has swerved from one policy misstep to another, and he has been embroiled in a scandal over Peter Mandelson, who was sacked as ambassador to Washington over his links to US sex offender Jeffrey Epstein.

The prime minister has also failed to fulfil his main promise of spurring economic growth, with impatient Britons still suffering a cost-of-living crisis, including from high energy prices.

Elsewhere on Friday, the yen firmed after Japanese media reported that authorities had spent around $64 billion since last week propping up the currency.

The market interventions reportedly began on April 30 when the yen weakened to near 160 per US dollar, the lowest in almost two years.

Since then there have been several spikes in the value of the Japanese currency, sparking speculation of further moves by the government.

China's trade grew faster than expected last month, official data showed Saturday, withstanding pressure from war in the Middle East and reversing a decline in exports to the United States.

Booming trade has represented a vital lifeline for Beijing in recent years as the domestic economy lags, with sluggish spending and a stubborn debt crisis in the property sector weighing on activity.

The war with Iran, launched by the United States and Israel in late February, has produced new risks for China's economy, though its trade has so far appeared to be weathering the disruptions.

Exports from the manufacturing powerhouse were up 14.1 percent in April compared to the same month last year, the General Administration of Customs (GAC) said.

The growth outpaced a Bloomberg forecast of 8.4 percent based on a survey of economists, and also picked up significantly from the 2.5 percent increase in March.

Analysts say China's diversified energy supply insulates it from immediate shocks from the war, though any global economic downturn would eventually weaken demand for its exports.

Amid a shaky truce, observers are awaiting a high-stakes meeting in Beijing next week between Chinese President Xi Jinping and US counterpart Donald Trump.

The talks previously set for late March were delayed by the war in the Middle East, which has sent global energy prices soaring as shipping through the vital Strait of Hormuz has effectively come to a halt.

The world's second-largest economy produced a record-breaking trade surplus last year at $1.2 trillion.

For Trump, imbalance in the countries' trade relationship has long been a major sticking point.

Ahead of the key meeting, China's exports to the United States grew 11.3 percent year-on-year in April, GAC data showed Saturday, returning to growth after dropping sharply by 26.5 percent in March.

Shipments to the United States had also dropped 11 percent in January and February combined.

Trade is set to be a prominent topic in the upcoming meeting between Xi and Trump, with both leaders eyeing key concessions for their massive economies.

Beijing has set an official target growth range for this year of 4.5-5.0 percent -- the lowest in decades.

Early indications suggest the country's economy is on pace, with growth in the first quarter reaching the top of that range at five percent, according to government data released in April.

Economists argue that China should shift towards a growth model powered more by household consumption than traditional drivers including real estate and infrastructure investment.

In a positive sign for domestic spending, imports into the world's second-largest economy grew 25.3 percent year-on-year last month, the GAC data showed Saturday.

That figure beat a Bloomberg forecast of 20.0 percent but was slightly lower than the 27.8-percent surge in March.

Monthly inflation data due Monday is expected to shed further light on how efforts by leaders to encourage consumers to pull out their wallets have been faring.

Brent crude futures jumped as much as 3 percent on Friday, a ​day after the US and Iran traded air strikes, but pared gains as traders hoped for a ‌longer pause in the fighting that has shut shipping in the Strait of Hormuz.

Brent crude futures settled at $101.29 a barrel, up $1.23 or 1.23 percent, after rising as much as 3 percent during the session.

US West Texas Intermediate (WTI) futures finished at $95.42 a barrel, up 61 cents, or 0.64 percent.

Both contracts were settled with ​weekly declines of more than 6 percent.

“We’re treading water here, rightfully so,” said John Kilduff, partner with Again Capital. “We’re on ​the cusp of a breakthrough in negotiations or we’re on the cusp of a renewal ⁠of the fighting. We’ve been here a lot.”

“There is a sense in the market that there is going to be ​an agreement and we’ll get the next phase which would be 30 days to hammer out an agreement (between Iran and ​the US),” Kilduff said.

Throughout the day, traders felt like they had been swatted back and forth like a tennis ball.

“We’re still playing the headline-o-rama game,” said Phil Flynn, senior analyst with Price Futures Group. “Ship movement in the Persian Gulf is going about as well as can ​be expected. We’re kind of working around the edges.”

US and Iranian forces clashed in the Gulf, and the UAE came ​under renewed attack as Washington awaited a response from Tehran to its proposal to end the conflict, which began with joint US-Israeli ‌airstrikes across ⁠Iran on February 28.

US President Donald Trump later on Thursday told reporters the ceasefire was still in effect and sought to play down the exchange.

However, on Friday, Trump renewed an ultimatum demanding Iran give up its nuclear ambitions.

“How quickly can supply be returned from Gulf states, what will the state of inventories be as we approach peak gasoline season, and what sanctions would ​look like post-settlement are all worthy ​of thought. But none ⁠can be addressed until there is a long-term solution to hostilities,” said PVM Oil Associates analyst John Evans.

“The US administration continues to oversell the prospects of a thaw, and an ​optimism-biased market buys into it,” said Vandana Hari, founder of oil market analysis firm Vanda ​Insights.

“Curiously, each time, ⁠the rebound is gradual and incomplete, making the head fakes at least somewhat effective.”

Meanwhile, the US Commodity Futures Trading Commission is investigating oil price trades totalling $7 billion placed shortly ahead of key Iran war-related announcements by Trump, Reuters reported on Thursday.

Most involved short ⁠positions, or ​bets on prices falling, placed on the Intercontinental Exchange (ICE) and Chicago ​Mercantile Exchange (CME) and were placed shortly before Trump statements announcing attack delays, the ceasefire or other changes to Iran policy that led to a decline ​in oil markets.

Nine months into the current fiscal year, Bangladesh has managed to implement only 36% of its Annual Development Programme (ADP). Yet, the government has moved to raise the development budget by another 50% next year, highlighting a widening gap between ambition and execution.

The Planning Commission yesterday gave preliminary approval to a Tk3 lakh crore ADP for FY2026-27, marking a Tk70,000 crore, or 30%, increase from the original ADP for the current fiscal year.

The contrast becomes sharper when compared with the revised ADP. In January, the government slashed the current year's ADP by Tk30,000 crore, a 13% cut, after ministries and agencies failed to utilise allocated funds at the expected pace.

Now, despite struggling to fully spend the downsized Tk2 lakh crore programme, the government is preparing an even larger development outlay.
ADP implementation rate rises slightly, but actual spending shrinks

The figures raise questions about the country's public investment strategy, particularly whether implementing agencies have the capacity to deliver such an expanded pipeline of projects amid persistent bottlenecks, procurement delays and weak project readiness.

According to the proposed allocation, the transport and communication sector will receive the highest outlay at Tk50,092 crore, accounting for 16.7% of the total ADP. Education follows with Tk47,591 crore, while health has been allocated Tk35,535 crore.

Power and energy will receive Tk32,691 crore, and housing Tk20,361 crore. Together, these five sectors account for nearly 62% of the entire proposed ADP.

The Bangladesh Investment Development Authority (Bida) has proposed gradually allowing 80% of import goods to be cleared through private Inland Container Depots (ICDs), or off-docks, in a move aimed at reducing congestion at Chattogram Port and improving logistics efficiency.

The proposal has been submitted to the finance ministry as part of a broader deregulation initiative to facilitate trade and improve the ease of doing business, officials concerned told The Business Standard.

According to Bida, implementation of the proposal could increase the handling capacity of the New Mooring Container Terminal (NCT) and Chittagong Container Terminal (CCT) by around 1.6 to 2 times by reducing pressure on port operations.

Currently, the National Board of Revenue (NBR) allows the clearance of only 65 categories of imported goods through private ICDs, although all export activities are already conducted through 21 off-docks across the country.

Bida said the limited scope for import clearance through ICDs creates congestion in port operations and slows down the import process.

In most countries, both import and export activities are largely handled through off-docks, it added.

To ensure compliance, the agency has also proposed introducing a regular risk-based review system for off-docks.

Business leaders and economists said the initiative could help reduce operational costs, shorten lead time and increase investor confidence.

Professor Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue, said Bangladesh still faces challenges related to the cost of doing business, turnaround time in port management and slow implementation of logistics reforms.

"Such initiatives are positive for attracting investment and increasing competitiveness," he said, adding that lead time has become a major factor alongside price and quality in international trade.

According to data from the Chittagong Port Authority, the port handled 34,09,069 TEUs of containers between January and December 2025.

Abul Kasem Khan, chairperson of Business Initiative Leading Development, described the proposal as timely.

"If the use of ICDs is increased, pressure on the port will decrease and congestion will be reduced," he said, adding that customs-related activities are internationally handled outside the main port area.

Bida has also proposed expanding banking and customs services to support effective 24-hour port operations.

Although port activities currently continue around the clock to some extent, related banking services remain largely limited to office hours and working days, causing delays in LC processing, payment clearance and other import-export procedures.

The agency recommended extending banking support throughout the week and moving most customs clearance procedures fully online to ensure uninterrupted 24/7 operations.

Bida said integrated round-the-clock operations would significantly reduce goods clearance time, improve overall efficiency and align Bangladesh's trade system with international standards.

The agency has further proposed integrating ASYCUDA World, the National Single Window, and systems used by other regulatory agencies into a single interoperable digital platform.

According to the proposal, businesses would be able to submit information once, which would then be automatically shared among all relevant agencies, reducing duplication, delays and procedural complexities.

Abul Kasem Khan said integrating licence and permit systems with the NSW would make trade processes faster and more efficient.

"Providing information once so that it can be used by various agencies is now the global standard," he said.

Last month, speaking at a consultative committee meeting organised by NBR and Federation of Bangladesh Chambers of Commerce and Industry, Finance and Planning Minister Amir Khosru Mahmud Chowdhury said obstacles to doing business would be removed to support private sector-led growth.

Bangladesh’s goal of reaching $100 billion in export earnings by 2030 may not be achievable without major improvements in trade facilitation, port efficiency and logistics capacity, economist M Masrur Reaz warned yesterday.

He said exports are currently around $55 billion, but Bangladesh still faces high trade costs, long cargo waiting times, congestion and weak logistics infrastructure compared with regional competitors such as Vietnam and India.

Bangladesh’s export costs are about one and a half times higher than Vietnam’s and, in some cases, nearly double those of India
M Masrur Reaz Chairman of PEB

“Reaching $100 billion in exports by 2030 or even by 2033 with the current trade facilitation and logistics capacity will not be possible unless we significantly improve efficiency, reduce time and cut costs,” said Reaz, chairman of Policy Exchange of Bangladesh.

He made the remarks at a roundtable titled “Integrated Port and Logistics Development for a Trade-Driven Bangladesh”, organised by the Dhaka Chamber of Commerce and Industry (DCCI) in Dhaka.

Reaz said Bangladesh’s export costs are about one and a half times higher than Vietnam’s and, in some cases, nearly double those of India. He also noted that import processing takes significantly longer in Bangladesh.

He added that the country continues to lag in global competitiveness, logistics performance and productivity, which is weakening its ability to attract investment and integrate into global supply chains.

Comparing Bangladesh with Vietnam, he said Vietnam has increased its exports to nearly $400 billion through sustained reforms in trade facilitation and logistics. In contrast, Bangladesh remains at about $55 billion, even though both countries had similar export levels in the late 1990s.

Reaz said ports will play a crucial role in shaping Bangladesh’s future export competitiveness, especially as global supply chains shift and China moves away from low-value garment production worth around $35 to $40 billion annually.

Citing World Bank data, he noted that “cutting logistics costs by 25 percent could boost exports by 20 percent” and that “reducing port dwell time by just one day could increase exports by 7.4 percent.”

However, he said, relying only on public funding for port development is no longer realistic due to limited government resources and fiscal pressure.

“Developing ports through a fully public-sector model is neither feasible nor desirable. We have to move toward public-private partnerships,” he added.

Md Salim Ullah, director general of the Bangladesh Institute of Management (BIM), said Bangladesh is still far behind in managing integrated ports and logistics efficiently, which is keeping the cost of doing business high.

Md Habibur Rahman, former member (administration and planning) of the Chittagong Port Authority, said rail connectivity is the only long-term solution for cargo transport, as there is limited scope to further expand the Dhaka-Chattogram highway.

He also suggested involving the private sector in operating at least one seaport, saying it would improve competition, service quality and efficiency.

Razeev H Chowdhury, senior vice president of DCCI, said long cargo clearance procedures, slow transport systems and the lack of modern cold-chain facilities are making Bangladesh’s supply chain costly and inefficient.

He called for paperless and automated port systems, infrastructure development through public-private partnerships, and higher investment in cold-chain logistics.

Md Shamsul Hoque, professor of Civil Engineering at BUET, criticised Bangladesh’s fragmented infrastructure planning and called for an integrated multimodal transport system along with institutional reforms.

He said infrastructure development has mostly focused on passenger transport, while freight transport -- despite being more complex and economically important -- has been largely neglected.

He also pointed out the lack of integrated transport planning, noting that roads, railways, waterways and aviation are developed separately instead of as a unified system. Even when facilities are located close to each other, such as an airport and a railway station, there is still no seamless connectivity between rail, metro, road and air transport.

Some foreign shareholders and owners of Ring Shine Textiles Limited – a company operating in Bangladesh since 1997 – have written to Prime Minister Tarique Rahman seeking a meeting to present the firm's ongoing crisis and request government support to protect the interests of public shareholders.

In the letter, the foreign investors said Ring Shine Textiles, a listed company that raised Tk150 crore through an initial public offering (IPO), is facing the threat of eviction due to a large volume of unpaid dues to the Bangladesh Export Processing Zones Authority (BEPZA).

They also noted that they have lost business operations of subsidiary garment units – Avant Grade Fashion and Shine Fashion Co (Pvt) Ltd.
Nine investors from Thailand, Taiwan, and Indonesia established the 100% export-oriented Ring Shine Textiles at the Dhaka Export Processing Zone (DEPZ).

Currently, two of the nine foreign investors remain stranded in Bangladesh because of travel bans since 2020, while others are reportedly avoiding travel to the country over fears of facing similar restrictions.

Aniruddho Pial, the current managing director of Ring Shine Textiles Limited, said the company had performed strongly in the ready-made garment sector and contributed significantly to the economy until 2019.

However, he said the company ran into trouble during the Covid-19 pandemic and has since struggled with a business slowdown, mounting debt burdens, growing dues to BEPZA, and a shortage of working capital.

Against this backdrop, the company's foreign investors have sought a meeting with the prime minister to present the company's current situation and seek government assistance to safeguard the interests of public shareholders.

"We have already received loan-rescheduling facilities from Bangladesh Bank. Now, as the central bank is forming a Tk40,000 crore special fund for sick and closed factories, we will seek financial assistance from the fund," Pial said.

Controversial IPO listing

According to the letter, Ring Shine's troubles began after a controversial IPO process allegedly involving FAR Group's Abdul Kader Faruk and Indian textile trader Ashok Kumar Chirimar.

The investors described in detail how the disputed IPO process led to the company's current crisis and the difficulties faced by the foreign shareholders.

Ring Shine entered the stock market in 2019 through a Tk150 crore IPO – one of the largest offerings in the textile sector. Before going public, the company increased its paid-up capital from less than Tk10 crore to more than Tk285 crore.

BSEC findings

Findings by the Bangladesh Securities and Exchange Commission (BSEC) revealed that a syndicate involving controversial tax official Matiur Rahman and FAR Group Chairman Abdul Kader Faruk allegedly embezzled hundreds of crores of taka by issuing new shares of Ring Shine Textiles without investing any funds.

According to the findings, the group allocated shares worth Tk112 crore at a face value of Tk10 each without depositing any money into the company's account.

The BSEC later decided to seek travel bans on 13 individuals linked to the company, including sponsors, former directors, the managing director, executive director, chief financial officer, and company secretary, as well as Faruk and Chirimar.

Once a profitable company, Ring Shine's financial condition deteriorated after its stock market listing. The company also suffered severe setbacks during the coronavirus pandemic as foreign buyers suspended orders amid weakening global demand.

When irregularities surrounding the IPO came to light, the BSEC froze the company's unutilised IPO funds that were intended for business expansion and loan repayment.

Investors left in the dark

Ring Shine has also failed to publish financial statements for the fourth quarter of FY25 and the first three quarters of the current fiscal year, leaving investors unaware of the company's financial condition for nearly a year.

According to previous reports by The Business Standard, BEPZA has initiated proceedings to cancel six additional lease agreements of Ring Shine for failing to clear outstanding dues.

The Dhaka EPZ office issued a notice expressing its intention to terminate the leases of plots no 157-163. Earlier, on 20 February 2025, BEPZA had cancelled leases for plots no 231-236 on similar grounds.

As of 25 January 2025, Ring Shine's outstanding dues to BEPZA stood at around $16.19 million, against a deposit of only $2,54,945. Despite repeated reminders, the company has yet to clear the arrears.

In November last year, Bangladesh Bank allowed publicly listed Ring Shine Textiles to reschedule its loans for up to 10 years, including a two-year moratorium period.

The company also received an eight-year rescheduling facility for its working capital loans – including overdraft, cash credit, and forced loans – with a 2% down payment requirement, of which 1% was to be paid before rescheduling and the remaining 1% after six months.

Aniruddho said that government support would enable the foreign-owned company to resume full operations and help foreign investors save the firm, which in turn could restore confidence among foreign investors.

The market capitalisation of Samsung Electronics' common stock surpassed $1 trillion on Wednesday, making it the second Asian company after TSMC to reach the milestone.

Samsung Electronics, the world's top memory chipmaker, saw its market value reach 1,500 trillion won ($1.03 trillion) in early trading in Seoul on Wednesday, tracking sharp gains of AI-related stocks in the US overnight.

Shares of the South Korean chip giant were up 12% at 09:52 am (0052 GMT) in Seoul, outstripping the benchmark Kospi's 5.4% gain.

The S&P 500 and the Nasdaq notched record-high closes on Tuesday, lifted by Intel and other AI-related stocks, as a US-Iran ceasefire held and investors focused on strong quarterly earnings.

The country's financial account recorded a surplus of more than $3.81 billion in the first nine months of the current fiscal year (FY26), a sharp increase from the $570 million recorded during the same period in the previous fiscal year.

Central bank data indicate that the repatriation of overdue export proceeds primarily drove this growth. The trade credit position, a key component of the financial account, shifted from a deficit of $1.61 billion in FY25 to a surplus of $3.23 billion during the July-March period of FY26. This reversal reflects an increase in the repatriation of previously stalled payments, providing a significant boost to the country's capital flows.

Trade deficit widens

Despite the strong financial account performance, the trade deficit widened by 24.16% to reach $19.17 billion at the end of March. This increase, amounting to approximately $4 billion over the previous year, was driven by a 4.60% rise in imports alongside a 4.40% decline in exports.

Import payments rose to $51.55 billion from $49.31 billion, while export earnings fell to $32.38 billion from $33.87 billion in the corresponding period of the prior year.

A notable factor in the rising import bill was the surge in petroleum imports, which grew by 81.10% to reach $936 million.

Zahid Hussain, former lead economist at the World Bank's Dhaka office, told TBS that while the trade credit position has significantly improved the financial account, there is no guarantee that this trend in trade credit will remain unchanged in the long term.

Current account deficit narrows

The current account deficit saw a marked improvement, narrowing to $397 million from $878 million in the previous fiscal year. This recovery was largely supported by a robust 20.30% growth in remittances, with the country receiving $26.20 billion in the first nine months compared to $21.78 billion in the prior year. In April alone, the country witnessed more than $3 billion in remittances, which experts believe has provided essential support to the balance of payments.

Zahid observed that although the current account balance remains negative, the situation is not yet concerning. He highlighted that the improvement in the current account is particularly significant given the increase in the trade deficit, largely credited to the influx of the greenback through secondary income and transfers.

Overall balance of payments returns to surplus

The overall balance of payments (BOP) moved into a surplus of $3.66 billion during the July–March period, a substantial recovery from the $1.10 billion deficit recorded in the same period of FY25.

This surplus suggests that the country is currently receiving more foreign exchange than it is paying out, which helps strengthen the external sector.

Zahid said, "The worst phase of the global economy has not yet had an impact on the balance of payments up to March."

The country’s trade deficit widened by 24 percent in the July-March period of the current fiscal year, due mainly to stronger import growth and weaker export earnings.

The gap between imports and exports stood at $19.17 billion in the first nine months of FY 2025-26, up from $15.44 billion in the same period a year earlier.

In the July-March period, import payments rose 4.6 percent year-on-year to $51.55 billion, according to Bangladesh Bank (BB) data.

Within this, petroleum imports increased sharply by 54 percent to $6.29 billion. Crude petroleum alone jumped 81 percent to $933 million, according to the central bank.

Economists linked the rise to volatile global fuel prices in March amid the US-Israel war on Iran and wider conflict across the Middle East.

During mid-March, crude oil prices climbed to about $102-$109 per barrel, compared with below $100 in the previous month, pushing up the import bill.

Export earnings fell 4.4 percent to $32.38 billion over the same period.

Despite the wider trade gap, the country’s current account deficit narrowed. This indicator tracks net flows of goods, services and income between a country and the rest of the world.

The deficit stood at $397 million in July-March of FY26, compared with $878 million a year earlier.

Industry insiders said higher remittance inflows helped ease pressure on the current account. Expatriates sent more than $3 billion a month for five consecutive months up to April, according to BB data.

The financial account also strengthened during the period. It rose to a surplus of $3.81 billion from $570 million a year earlier, reflecting increased inflows from loans, credit and other cross-border financial transactions.

Analysts said the surplus was largely driven by borrowing and trade credit rather than stable investment. Foreign direct investment remained moderate, while portfolio investment stayed negative, reflecting weak investor confidence.

During the period, net foreign direct investment stood at $1 billion, down from $1.31 billion in the same months of the previous fiscal year.

Net trade credit rose to $3.23 billion during the nine months, compared with a negative $1.61 billion a year earlier.

According to industry insiders, the growing reliance on debt-based inflows could increase repayment risks in the future.

These developments together pushed Bangladesh’s overall balance of payments (BoP) into a surplus of $3.65 billion, compared with a deficit of $1.10 billion in the same period last year.

Bangladesh today (6 May) called for increased Chinese investment in priority infrastructure projects, including the long-discussed Teesta River initiative, while reaffirming its firm support for the One-China policy during high-level talks in Beijing.

The issues were discussed during a meeting between Foreign Minister Khalilur Rahman and his Chinese counterpart Wang Yi, held as part of Rahman's first official visit to China from 5 to 7 May.

According to a joint press release, Bangladesh sought China's "involvement and support" in the Teesta River Comprehensive Management and Restoration Project (TRCMRP), aimed at improving water management, preventing floods and boosting agricultural productivity in northern regions.

The move reflects Dhaka's broader effort to attract foreign investment for critical infrastructure. China expressed willingness to deepen practical cooperation and encouraged its enterprises to invest in Bangladesh, particularly in infrastructure, water resources, digital economy and green development.

During the talks, Bangladesh reiterated its commitment to the One-China principle, affirming that Taiwan is an inalienable part of China's territory and expressing opposition to any form of "Taiwan independence."

Wang Yi described Bangladesh as a "reliable partner" and said Beijing is ready to align its Belt and Road cooperation with Bangladesh's development priorities, adding that China's engagement in South Asia is not directed at any third party.

Bangladesh welcomed Chinese enterprises and pledged to ensure a "stable, sound and predictable" business environment to facilitate investment. It also appreciated China's continued support for its development.

The two sides also exchanged views on regional and global issues, including the Middle East situation and the Rohingya crisis. China reiterated support for continued dialogue between Bangladesh and Myanmar to facilitate the repatriation of displaced people.

Both countries reaffirmed their commitment to multilateralism, the principles of the United Nations Charter, and peaceful dispute resolution, while pledging to further strengthen their comprehensive strategic cooperative partnership.

Earlier today, Rahman also met Wang Huning, chairman of the Chinese People's Political Consultative Conference, where both sides emphasised expanding cooperation in trade, investment, connectivity and development.

Foreign affairs adviser Humayun Kabir and Bangladesh Ambassador to China Md Nazmul Islam were present at the meeting.

Rahman arrived in Beijing on Tuesday on a three-day official visit aimed at strengthening bilateral ties and enhancing high-level engagement.

Gold prices climbed more than 2 percent ‌on Wednesday after US President Donald Trump indicated a possible peace deal may be reached with Iran, sending the dollar and crude lower as inflation concerns ebbed somewhat.

Spot gold jumped 2.7 percent to $4,680.91 per ounce, ​as of 0811 GMT, having hit its highest since April 28. US gold ​futures for June delivery rose 2.7 percent to $4,693.20.

US President Donald Trump said on Tuesday he would briefly pause an operation to help escort ships through the Strait of ​Hormuz, citing progress toward a comprehensive agreement with Iran.

Iran will only accept “a fair and comprehensive ​agreement” in its negotiations with the US on ending the war in the Middle East, its foreign minister said on Wednesday.

Gold gained as “oil prices retreated on reduction in geopolitical risk premium, after the US ​confirmed that the ongoing fragile ceasefire between Iran is still intact, despite the skirmish that ​was seen at the start of this week,” Kelvin Wong, a senior market analyst at OANDA, said.

“Any signs ‌of re-escalation of tension between the two of them, you will see gold prices seeing some form of profit-taking, or for short-term speculators to unwind their near-term net long position in gold,” Wong added.

A weaker US currency makes dollar-priced metals cheaper for holders of other ​currencies.

Elevated crude oil prices ​can stoke inflation, increasing the likelihood of higher interest rates. While gold is considered an inflation hedge, high interest rates make yield-bearing assets more attractive, weighing ​on its appeal.

Investors await US non-farm payrolls later this week which will ​test whether the economy remains resilient enough to keep the Federal Reserve’s monetary policy on hold.

“Factors such as economic growth risks, worsening geopolitical relations, currency volatility and downside risks to equity markets will continue ​to support gold’s role as a portfolio diversifier,” ANZ ​said in a note.

Oil prices extended declines ​on Wednesday, slumping to two-week lows after a Pakistani source said that the ‌United States and Iran were nearing an initial peace deal.

Brent crude futures fell by $9.08, or 8.3%, to $100.79 a barrel by 1205 GMT, having earlier dropped below $100 for the first time since 22 April. US West Texas ​Intermediate lost $9.12, or 8.9%, to $93.15.

Both benchmarks were on track for their biggest daily ​declines in absolute and percentage terms since mid-April and hit their lowest in ⁠two weeks, having shed about 4% in the previous session.

A source from mediator Pakistan ​said the United States and Iran were closing in on an agreement on a one-page memorandum ​of understanding.

US media outlet Axios reported that the US expects Iranian responses on several key points in the next 48 hours, citing sources saying this was the closest the parties had come to an agreement ​since the war began.

Iran had said earlier that it would only accept a fair and comprehensive ​agreement.

The US military said on Monday that it destroyed several Iranian small boats as part of efforts to ‌help stranded ⁠ships to exit the Strait of Hormuz.

Crude oil supply losses from halted marine traffic through the strait since the war began in February have driven up prices, with Brent trading last week at its highest since March 2022.

The Strait of Hormuz closure has resulted in a ​drawdown in global oil ​and fuel inventories ⁠as refineries try to offset production shortfalls.

US crude oil inventories fell for a third week, while gasoline and distillate stocks also declined, market ​sources said on Tuesday, citing American Petroleum Institute figures.

Crude stocks fell ​by 8.1 ⁠million barrels in the week ended 1 May, the sources said. Gasoline inventories were down by 6.1 million barrels from a week earlier and distillate inventories fell by 4.6 million barrels, the ⁠sources said.

Official ​numbers from the EIA, the statistical arm of the ​US Department of Energy, are due at 1430 GMT.

Vacuum cleaners and vapes could get more expensive if the Iran war drags on for much longer, Chinese factory owners and traders warn, as the world’s manufacturing hub reels from “crazy” costs.

Weeks of US-Israeli strikes on Iran and the effective closure of the Strait of Hormuz have choked Asia’s oil supply, stymieing the production of plastic -- derived from oil -- across the region.

Manufacturing giant China has been comparatively sheltered from fuel shortages thanks to oil reserves and renewable energy, but local factories are picking up a ballooning raw materials bill.

“Basically, we’ve been losing money on all our orders,” said Bryant Chen, a manager at vacuum cleaner factory RIMOO in southern Guangdong province’s Foshan.

The price of plastic has risen roughly 50 percent since before the Iran war, Chen told AFP as workers behind him fastened suction tubes to metal tanks.

“The costs of the products that we are making are being very greatly affected,” the 42-year-old said, listing plastic, copper for the vacuum’s motor and raw materials in its power cords.

“Typically at this time we’d be entering peak season, but compared to the same period previously, shipment and production data aren’t very optimistic.”

Two hours away, plastic traders in storage hub Zhangmutou said price fluctuations were the worst they’ve seen in decades.

“It has never been this crazy,” said Li Dong, 46, who entered the industry two decades ago.

The plastic, rice-sized pellets he buys for local phone case and EV battery factories jumped wildly in March, triggering days of panic that jammed the small town’s roads as factories rushed to stock up.

‘MUTUAL STATE OF DECLINE’

Exporters in Zhangmutou showed AFP a vast range of products their pellets would become, including drones and badminton birdies.

One trader sifted through pink, green and purple beads that she said would be moulded into e-cigarette casings sold in the Middle East.

The Iran war has hit plastic production even harder than bottlenecks caused by the Covid pandemic, when ships could not come and go from China, Li said.

Some sellers cashed in on the plastic panic, he added, fighting to take advantage of surging costs.

Li said the price of plastic had dropped around 10 to 20 percent from its height, but he cautioned against further oil hold-ups.

“The factories we supply to will suffer the most because their direct costs will rise,” he said.

For exporters, the Middle East crisis has added to the hangover still lingering from Donald Trump’s sweeping global tariffs last year.

The US Supreme Court struck down those levies as illegal, but tolls on Chinese goods entering the US still sit at around 20 percent.

On the outskirts of Guangzhou, one garment factory owner lamented the chaos triggered by the US President’s trade war.

Overseas clients are afraid to place orders, while Chinese manufacturers cannot pin down changing costs.

“As a result, everyone is in a mutual state of decline,” garment boss Zhou, 55, said.

While 80 percent of his clients have returned, the fabrics scattered on his factory floor made into sweatpants headed for Europe and North America have risen 10 to 20 percent in cost due to the Middle East war.

As overseas orders dropped, seamsters went months without a job.

‘TENSIONS RISE, ORDERS DISAPPEAR’

Migrant worker Jingjing returned to her hometown in Hubei province for two months, where she made half the 400 yuan ($60) she now earns in Guangzhou’s garment factories.

“When tensions rise... orders suddenly disappear,” the 42-year-old said.

But this year she said she always has something to do.

In a damp back alley, Jingjing joined job-seekers milling about leisurely, haggling for higher wages while garment bosses perched on scooters brandished hiring signs, desperate for day labourers.

Chen, the vacuum factory manager, said he was “still worried” about surging shipping costs should the Iran war drag on.

“If shipping costs rise, it will cause the final costs for our customers to increase sharply,” he said.

They “will have no way to sell normally, because the costs are just too high”.

Chen said RIMOO plans to expand to other markets beyond the Middle East where around 60 percent of its customers are based.

“We are still optimistic,” he said. “The market demand still exists.”

But analysts warn the war’s impact on costs will be felt for months.

“The problem is all of these costs will filter through the supply chains for the rest of the year,” said supply chain consultant Cameron Johnson.

“The longer it goes on, that kind of cascades into much bigger problems, particularly if there’s not enough oil in general to run stuff.”

An alliance representing more than 12,000 depositors of six distressed non-bank financial institutions (NBFIs) has urged the Bangladesh Bank (BB) to take immediate steps to facilitate the return of their long-frozen funds.

The six NBFIs -- FAS Finance, Premier Leasing, Fareast Finance, Aviva Finance, People’s Leasing, and International Leasing -- are now under liquidation.

Over the years, several NBFIs collapsed amid widespread mismanagement, weak governance, and heavy exposure to non-performing loans. Poor regulatory oversight and delayed action by the central bank deepened the crisis and ultimately led to liquidation.

Yesterday, in a memorandum submitted to the BB governor in Dhaka, the platform titled “Alliance of Depositors of 6 NBFIs for Recovery” said depositors have been facing acute financial hardship, mental distress, and a humanitarian crisis, as their savings have remained locked up for nearly seven years.

“Many depositors are unable to access treatment for critical illnesses such as cancer, kidney disease, and heart conditions due to a lack of funds,” the memorandum said, adding that several depositors have already died without receiving necessary medical care.

As the regulator of banks and NBFIs, the central bank bears the highest responsibility to safeguard public deposits, the alliance said, calling for urgent intervention to resolve the crisis.

The alliance outlined three key demands, including an immediate announcement of a clear, realistic, and actionable roadmap in line with the previously declared July 2026 deadline for refunding depositors’ money.

The other two demands are the introduction of an effective mechanism to prioritise repayments for individual depositors and the arrangement of a meeting between the governor and three to four representatives of the depositors to formally present their demands.

The depositors expressed hope that the central bank would take swift, effective, and humane measures to address the crisis and ensure the protection of public savings.

They also called upon the government, the central bank, and all relevant authorities to take urgent and effective steps to restore confidence in the financial sector and ensure justice for affected depositors.

In January this year, BB decided to liquidate six of the country’s 35 non-bank financial institutions due to poor financial health.

The current BB governor, Md Mostaqur Rahman, appointed by the BNP-led government, has said reforms will continue, including those liquidations.

The bearish sentiment at the country's premier bourse intensified yesterday as the benchmark index extended its losing streak for the second consecutive session.

Driven by broad-based selling pressure, the Dhaka Stock Exchange (DSE) witnessed a significant erosion of its total valuation, with the market capitalisation dropping by approximately Tk6,300 crore over the last three trading sessions alone.

By the close of today's (6 May) trading session, market capitalisation stood at Tk6.79 lakh crore, underscoring a cautious investor sentiment amid prevailing uncertainties and the absence of fresh catalysts to propel the indices higher.

The benchmark DSEX index shed 18 points, or 0.34% yesterday, to settle at 5,248. The downturn was mirrored in the blue-chip segment, where the DS30 index, which comprises 30 prominent companies, ended 8 points lower at 2,009.

Market breadth remained heavily skewed toward the bears throughout the session, with 216 issues declining against 108 gainers, while 67 scrips closed unchanged on the DSE floor.

Market participation also saw a notable decline, with daily turnover on the DSE dropping by 8% to stand at Tk767 crore. The drop in trading activity indicates that many investors are staying on the sidelines, awaiting clearer signals on the sustainability of current price levels before deploying fresh capital.

Despite the overall market gloom, certain stocks managed to attract significant investor interest. Monno Ceramic led the turnover chart, followed by Dominage Steel, Malek Spinning, Techno Drugs, and GQ Ball Pen.

On the gainers' chart, Monno Ceramic led the rally with a price hike of 9.68%, followed closely by Yeakin Polymer and Mozaffar Hossain Spinning, both of which surged by over 9.6%. Silco Pharma and Sikder Insurance also featured among the top performers of the day.

Conversely, the non-bank financial institution (NBFI) sector faced the brunt of the sell-off. Premier Leasing, Fareast Finance, and International Leasing all recorded a sharp decline of 8.69%, while United Insurance and Bangladesh Industrial Finance Company (BIFC) also faced notable corrections.

The negative trend was mirrored at the Chittagong Stock Exchange (CSE), where the CSCX index edged down marginally to finish at 9,109 points. The CASPI, the broad index of the port city bourse, ended 14 points lower at 14,801.

Interestingly, while the key indices dipped, the CSE saw a significant 37% jump in turnover, which stood at Tk20.72 crore.

Bangladesh has settled an import bill of $1.51 billion for the March-April period under the Asian Clearing Union (ACU), a move that is expected to reduce the country's foreign exchange reserves.

Bangladesh Bank Executive Director and spokesperson Aref Hossain Khan confirmed the payment today (6 May).

According to central bank data, the country's gross reserves stood at $35.33 billion at the end of 6 May. Under the International Monetary Fund's BPM6 calculation method, reserves were recorded at $30.64 billion.

Reserves typically decline after ACU payments, and a similar trend is expected this time. However, officials noted that it takes a few days for adjustments to be reflected, meaning the immediate impact may not be visible.

Earlier, Bangladesh paid $1.36 billion for the January-February period. The ACU bill stood at $1.53 billion for November-December of the previous year, while $1.61 billion was paid for September-October that year.

The ACU is a regional payment arrangement among several Asian central banks that facilitates the settlement of import and export transactions among member countries every two months.

Bangladesh conducts trade settlements with ACU member states-including India, Iran, Nepal, Pakistan, Sri Lanka, Myanmar, Bhutan and the Maldives-through this mechanism, while transactions with other countries are generally settled immediately.