Bangladeshi garment exporters will today ask visiting US trade officials in Dhaka to clarify how a promised zero reciprocal tariff will apply to apparel made with American cotton and other US textile inputs.

The provision is included in the US-Bangladesh Agreement on Reciprocal Trade signed in February this year, but exporters say they have yet to benefit from it.

“We will raise this issue with the USTR high-ups in the meeting tomorrow [Tuesday],” said Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

A delegation from the Office of the United States Trade Representative (USTR), led by Assistant US Trade Representative for South and Central Asia Brendan Lynch, will visit Dhaka from May 5 to May 7.

In a statement issued ahead of the visit, the US Embassy in Dhaka said the United States looks forward to partnering on the implementation of the reciprocal trade agreement. The delegation is expected to discuss ways to strengthen trade and investment ties.

Under Article 5.3 of the reciprocal trade agreement, the United States commits to establishing a mechanism allowing certain textile and apparel goods from Bangladesh to enter the American market at a zero reciprocal tariff rate.

The deal says that a to be specified volume of apparel and textile imports from Bangladesh may qualify for the reduced rate. That volume will be determined in relation to the quantity of US-produced cotton and man-made fibre textile inputs exported to Bangladesh.

However, BGMEA President Khan said Bangladesh is not currently enjoying the benefits in the US market.

He said the zero-duty facility would be the main agenda at the scheduled meeting between the visiting officials and BGMEA leaders in Dhaka.

A senior commerce ministry official said the USTR delegation will also meet Commerce Minister Khandakar Abdul Muktadir at the secretariat today. Discussions are expected to cover the reciprocal trade deal, broader bilateral trade matters, labour rights and intellectual property.

The USTR is currently conducting two investigations covering 60 countries, including Bangladesh. One is about forced labour in industrial units, while the other relates to industrial overcapacity that could hurt the US manufacturers.

In a position paper submitted to the commerce ministry recently, BGMEA said the Bangladesh garment industry does not have overproduction capacity that could harm the American manufacturing sector and is free from forced labour, as exporters comply with internationally recognised labour laws.

The association said that in a market-driven economy, production levels constantly adjust to shifts in demand, input costs and supply chain conditions. Determining “excess capacity” without clear parameters or methodology is a major challenge.

According to USTR data, US goods trade with Bangladesh totalled an estimated $11.8 billion in 2025. US imports from Bangladesh stood at $9.5 billion, up 13.3 percent from 2024, while US exports to Bangladesh were $2.3 billion, up 1.4 percent.

The US goods trade deficit with Bangladesh was $7.1 billion in 2025, a 17.9 percent increase from the previous year.

Garments account for 86 percent of Bangladesh’s exports to the United States.

In its position paper, BGMEA said the Bangladesh apparel sector has not expanded suddenly or in a way that would indicate structural excess capacity. The industry growth should be viewed over the long term.

Over the past decade, the sector has followed a steady growth path, it said, driven by global demand and shifting sourcing strategies rather than policy-induced expansion.

After more than four decades of development, Bangladesh exported garment products worth $39.3 billion in fiscal year 2024-25, accounting for nearly 7 percent of the global apparel market. It is now the world’s second-largest garment exporter after China.

In 2025, Bangladesh accounted for 10.73 percent of US apparel imports by volume and 10.53 percent by value, according to the American Apparel and Footwear Association (AAFA).

This week, a separate USTR report said Bangladesh has stayed off the latest US intellectual property rights watch lists. However, Washington urged Dhaka to strengthen enforcement to prevent unfair trade practices.

In its annual Special 301 Report, the USTR identified 26 trading partners with concerns over intellectual property protection and enforcement.

State-owned companies listed on the stock market delivered mixed performances in the January-March quarter of the 2025-26 fiscal year, reflecting uneven sectoral health.

Quarterly public disclosures show energy firms, particularly oil marketing companies, remained profitable, while several entities in financial, gas and industrial sectors continued to incur losses, signalling structural weaknesses.

Oil firms maintain steady profits

The three listed oil marketing companies – Padma Oil Company, Meghna Petroleum and Jamuna Oil – remained profitable in the third quarter of the current fiscal year.

However, their revenues declined compared with the same period last year, reflecting weaker earnings from core operations. Non-operating income, however, played a significant role in sustaining overall profitability.

During the quarter, notable shifts were observed in cash positions and inventory management. Fluctuations in global fuel prices, import costs, stock management and cash flow dynamics were reflected in their financials.

Padma Oil posted a profit of Tk132.37 crore in the January-March quarter FY26, down from Tk145.38 crore in the same period in FY25. Its revenue fell to Tk85.43 crore from Tk92.30 crore.

Meghna Petroleum's profit dropped to Tk83.94 crore from Tk141 crore, while revenue declined to Tk22.95 crore from Tk28.02 crore.

The company said lower collections from customers and reduced payments to suppliers and employees significantly weakened cash flow from operations, leading to a sharp decline in net operating cash flow.

In contrast, Jamuna Oil recorded profit growth, earning Tk139.78 crore compared with Tk110.78 crore. However, its revenue declined to Tk52.12 crore from Tk70.41 crore.

The company in its disclosure said interest income on deposits with Sammilito Islami Bank was not recognised due to uncertainty over recovery. This reduced both total income and net profit, directly affecting earnings per share.

It added that a conservative accounting approach was adopted, excluding uncertain income, which resulted in lower reported EPS. The company also said reduced credit and accruals led to a decline in net operating cash flow per share compared with June 2025.

7 firms remain in red

The Investment Corporation of Bangladesh (ICB) continued to post heavy losses, reporting Tk277 crore in the quarter, up from Tk161 crore a year earlier. Notably, its revenue remained negative at Tk221 crore, compared with negative Tk63 crore in the same period last year.

Titas Gas Transmission and Distribution Company recorded a loss of Tk224 crore, slightly lower than Tk236 crore a year earlier. Its revenue declined to Tk8,613 crore from Tk9,023 crore.

Dhaka Electric Supply Company (Desco) managed to reduce its losses to Tk32 crore from Tk72 crore, while revenue edged up to Tk182.41 crore.

National Tubes Limited slipped into loss, posting Tk1.31 crore in losses against a profit of Tk1.43 crore a year earlier. Its revenue fell to Tk8.12 crore from Tk13.51 crore.

Eastern Cables Limited also remained in the red, reporting a loss of Tk3.45 crore, marginally lower than Tk3.58 crore a year earlier, although revenue rose slightly to Tk8.52 crore.

ICB's losses are seen as reflecting weak investor sentiment in the capital market. Meanwhile, continued losses at gas and power distribution firms also point to structural constraints, pricing issues and operational inefficiencies.

Signs of recovery in select firms

Power Grid Company of Bangladesh staged a strong turnaround, posting a profit of Tk94 crore, compared with a loss of Tk186 crore in the same period last year. Revenue rose to Tk715 crore.

The company said earnings per share increased by Tk6.58 year-on-year in the third quarter. It attributed the improvement to a significant rise in total income and a sharp reduction in overall expenses.

Bangladesh Submarine Cable Company Limited (BSCCL) also recorded robust growth, with profit rising to Tk74.43 crore from Tk47.82 crore a year earlier. Revenue increased to Tk125.31 crore.

The company said higher revenue from regular operations and increased other income drove the rise in earnings per share.

Eastern Lubricants Blenders Limited maintained its growth momentum, posting a profit of Tk4.28 crore, up from Tk1.57 crore a year earlier. Revenue climbed to Tk23.95 crore.

The improvement seen in companies such as Power Grid and BSCCL suggests that effective management, rising demand and supportive policies can enable state-owned enterprises to regain financial stability.

After the onset of the US-Israel war on Iran, some policymakers initially took a firm stance, publicly claiming credit for not adjusting fuel prices to shield consumers from global shocks. They argued that they did not want to pass the burden onto the people.

However, the government could not maintain its stance as it quickly unravelled under fiscal and market realities.

Within weeks, the government reversed course. It raised the price of a 12 kg liquefied petroleum gas (LPG) cylinder by 45 percent after two successive hikes in April.

On April 18, it also pushed fuel prices to record highs: diesel rose by Tk 15 per litre to Tk 115, octane by Tk 20 to Tk 140, petrol by Tk 19 to Tk 135, and kerosene by Tk 18 to Tk 130.

The scale and timing of these adjustments suggest that fiscal constraints, subsidy pressures, and external account vulnerabilities outweighed earlier political commitments.

From a macroeconomic perspective, such hikes drive costs and thus prices of commodities in the supply chain, as higher energy costs spread through transport, production, and supply chains, often creating second-round effects in import-dependent economies like Bangladesh.

A recent report on inflation dynamics of Bangladesh by the central bank showed gas price hikes have pushed up energy inflation to 14.9 percent during the January-March quarter of the current fiscal year 2025-26 from 14.4 percent in the previous quarter.

Economists say the effect of hiking petroleum prices is going to be felt soon, and consumers have already begun to feel the pinch. Transport costs for both passengers and freight have gone up. Farmers complained about the higher cost of harvesting rice and threshing the grains. Consumer goods companies are reducing pack sizes and squeezing margins to cope.

Yet, two ministers -- finance and commerce -- downplayed the inflationary risks.

According to a report published in this newspaper on April 20, Finance Minister Amir Khosru Mahmud Chowdhury said, “It may increase or it may not. If the supply side remains stable, then prices may not rise.”

In reply to a question in the parliament, Commerce Minister Khandakar Abdul Muktadir said it was unlikely that the recent fuel price hike would exacerbate inflation, terming the adjustment “moderate.”

He said the 15 percent increase in diesel prices may raise commodity prices by around Tk 0.30 per kg. However, he said this would not have any major impact on overall inflation, which has remained around 9 percent for more than three years, deepening consumers’ woes.

The wage rate index for unskilled workers illustrates this trend. Inflation has outpaced wage growth for 50 consecutive months, steadily eroding the purchasing power of consumers, particularly those in middle- and lower-income groups. It means that real wages have been in the negative for more than four years.

Consumers are set to face further pressure as the commerce ministry has allowed refiners to raise soybean oil prices by Tk 4 per litre, or 2 percent.

The situation worsened by earlier supply disruptions triggered by the Iran War, which had already pushed up global energy and transport costs. Diesel-dependent sectors such as agriculture, manufacturing, and transport are now under additional pressure, raising concerns that the increased costs will eventually be passed on to consumers in an already high-inflation economy.

Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue (CPD), said the recent fuel price hike is likely to ripple across the economy through a “multiplier effect.”

He noted that fuel acts as a “barometer of commodity prices,” meaning its increase will inevitably influence a wide range of goods, though not uniformly.

He explained that the current situation reflects “cost-push inflation,” driven by rising input costs rather than demand.

However, he cautioned against overstating the scale of the impact, emphasising that the extent of price increases will depend on how significant fuel costs are within each product’s overall cost structure.

“If fuel accounts for a portion of total costs, a 15 percent increase in fuel prices does not translate into a 15 percent rise in final prices,” he said, illustrating that the actual effect would be proportionally smaller.

Rahman stressed that while some level of price increase is unavoidable, the degree to which it affects consumers will depend heavily on market behaviour and oversight.

“The pass-through to retail prices depends significantly on market management,” he said, warning that unchecked responses, such as transport operators raising fares disproportionately, could worsen inflationary pressures.

He also underscored the growing importance of regulatory monitoring, particularly in sectors with administered pricing, and highlighted the need for stronger safeguards for vulnerable groups.

“For low-income people, even a small increase in prices creates significant hardship,” he said, adding that effective implementation of social safety measures will be critical to easing the burden.

Mohammad Abdur Razzaque, chairman of the Research and Policy Integration for Development, echoed similar concerns, warning that higher energy prices would inevitably feed into overall price levels.

“If energy and oil prices increase, our price levels will increase. This is almost inevitable,” he said. “There is a ‘one-to-one’ correspondence, as the transmission channel is very deep.”

He explained that a fuel price increase typically triggers broader inflationary pressures across the economy.

“When oil prices increase, we’ve seen a 15-20 percent increase across different varieties. It exerts pressure on other supply chain elements, which overall impacts our prices. They might be saying it for political reasons, but the economic reality is that this will fuel inflationary pressure further,” he added.

Razzaque also noted that the impact is more severe in Bangladesh compared to other countries due to already elevated inflation.

“It’s not just happening in Bangladesh; many countries have already increased their fuel prices. The problem for Bangladesh is that our baseline inflation rate was already high, hovering around 9 to 10 percent. When this impact is added, it creates even more pressure. In countries like Cambodia, where inflation was lower, it was easier to absorb. But for us, it’s almost inevitable that prices will go up,” he said.

He also raised concerns over inflation measurement, especially LPG pricing. He said the Bangladesh Bureau of Statistics (BBS) relies on government-set rates, which may not reflect market reality.

Razzaque added that official figures could be misleading if based on listed prices rather than what consumers actually pay, urging surveys of real market prices for more accurate inflation data.

Indian businesses have urged Bangladesh to ensure institutional stability, policy consistency, and reduce logistics bottlenecks to enhance bilateral trade and attract foreign direct investment (FDI).

They also expressed optimism that the proposed Comprehensive Economic Partnership Agreement (Cepa) between the two neighbouring countries could significantly expand trade and investment flows.

The observations came during a meeting between leaders of the Confederation of Indian Industry (CII) and a visiting Bangladeshi media delegation in New Delhi.

Pankaj Tandon, a member of CII's South Asia Committee, said that strengthening institutions and ensuring policy predictability are key to boosting investor confidence.

"To boost investment and trade, Bangladesh needs institutional stability, policy consistency, and stronger institutional accountability," he noted.

He added that the current phase of Bangladesh-India relations is critical not only for sustaining existing ties but also for shaping the next stage of economic partnership to support Bangladesh's long-term growth and competitiveness.

Describing Bangladesh as India's largest trading partner in South Asia, Tandon said bilateral trade stood at over $13 billion in the 2024-25 fiscal year.

"Bangladesh's industrial strength and India's manufacturing and services sectors complement each other, creating opportunities for integrated regional value chains," he said.

He also highlighted potential areas of collaboration, including medical tourism, food processing, agricultural value chains, the digital economy, startups, energy cooperation, and SME linkages.

According to Tandon, India's expertise in digital public infrastructure, fintech, renewable energy, manufacturing excellence, and sustainable development could support Bangladesh's economic transformation.

Regarding restrictions on Bangladesh's ready-made garment (RMG) exports through Indian land ports, he said CII could work jointly on the issue if Bangladeshi business chambers formally raise it.

He reaffirmed CII's commitment to working closely with Bangladeshi organisations to deepen bilateral business-to-business engagement and strengthen economic cooperation.

At the event, Geetanjali Nataraj of CII delivered a presentation, while Manish Mohan, director of CII, also spoke.

Bangladesh needs a decisive push to mobilise revenue by immediately launching reform measures, accelerating automation, and gradually phasing out existing tax exemptions, said economists and policymakers at an event organised by the National Citizen Party (NCP) yesterday.

The national convention on energy, economy, human rights, reform and referendum was held at the Institution of Diploma Engineers in Dhaka.

“Many discussions were held and numerous committees formed, but we saw no meaningful progress in the revenue sector,” said M Masrur Reaz, chairman and CEO of Policy Exchange Bangladesh.

“No reforms took place during the Awami League era, and unfortunately, the interim government also failed to act. A new government is now in place and may need time, but if reforms are not launched within the next two to three months, we risk losing this opportunity again,” he added.

Reaz described the country’s economic challenges as a “four-plus-one dimension”-- four domestic weaknesses alongside one global factor.

He said the country’s key drivers of employment and growth have stalled, while economic governance had largely collapsed before August 5, marked by banking irregularities, oligarchic control in energy, and mismanagement of public spending.

He also pointed to the absence of revenue reform, failure to formalise the informal economy, and rising dependence on external debt as major concerns.

At the event, Hasnat Abdullah, lawmaker and chief organiser (Southern Region) of the NCP, said that automating tax and customs systems through cashless, paperless processes integrated with NID is now essential.

He noted that complexities in the current manual tax system discourage compliance.

“If we automate the system and integrate it with NID, under-the-table compromises can be reduced to near zero. Many European countries have been practising this for years,” he said.

AKM Waresul Karim, dean of the School of Business and Economics at North South University, said governance failures have driven stagnation in the banking sector.

“Corruption, nepotism, politicisation, and prolonged authoritarian practices have undermined institutional integrity,” he said.

Confidence in state-owned commercial banks has eroded, he noted. Citing a review of Janata Bank, he said 70 percent of its loans are non-performing. Following recent political upheaval, the boards of a number of banks were reconstituted, and a Bank Resolution Ordinance was introduced, merging five banks.

However, he criticised the provision allowing previous bank owners to reclaim ownership by repaying only 7.5 percent of government liquidity support, calling it a tactic to restore control to specific individuals.

AKM Fahim Mashroor, CEO of Bdjobs, said overall unemployment in Bangladesh remains below 4 to 5 percent, but youth unemployment is three to four times higher. Each year, about 700,000 graduates enter the job market, of whom 50 to 60 percent remain jobless.

“Unemployment is not just an economic issue-- it is a social and political one,” he said, adding that high interest rates and energy constraints may deter investment in the near term.

He suggested promoting entrepreneurship and facilitating overseas employment through government-backed loans.

Sarjis Alam, chief organiser (Northern Region) of the NCP, chaired the first panel discussion. Shams Mahmud, former president of the Dhaka Chamber of Commerce, Chartered Financial Analyst Asif Khan, and Javed Rasin, joint convener of the NCP, also spoke at the event.

Reckitt Benckiser Bangladesh, a listed multinational on the bourses, reported a 9.99% year-on-year decline in revenue and a 28.31% drop in net profit after tax in the first quarter of 2026.

During the January to March quarter, its revenue declined to Tk132.61 crore, a lower from Tk147.34 crore, while its profit declined to Tk10.99 crore, a lower from Tk15.33 crore in the same time of the previous year, its report showed.

At the end of March 2026, its earnings per share (EPS) declined to Tk23.26, which was Tk32.45 in the same time of the previous year.

The quarterly financials published today (3 May) on the stock exchanges. Following the financials results, the company's shares fell 2.69% or Tk93.4 each closed at Tk3,377 each at the Dhaka Stock Exchange (DSE).

In 2025, Reckitt Benckiser reported a profit of Tk81.71 crore with an EPS of Tk172.93, which was Tk75.20 crore and EPS of Tk159.17 in 2024, its data showed.

Based on its financials, its board recommended a 1,730% final cash dividend meaning that Tk173 against each shares.

To approve its financials and dividend by the general shareholders, the MNC scheduled its annual report on 29 June thorough the digital platform.

Reckitt Benckiser had paid a record-high 3,330% cash dividend for 2024 to its shareholders.

Reckitt Benckiser (Bangladesh) PLC is a subsidiary of the UK-based Reckitt Benckiser Group plc. It is a well-known manufacturer of health, hygiene, and home products, with several leading brands in Bangladesh.

The company manufactures and marketed of households (hygiene), toiletries and pharmaceutical (health) product.

Reckitt Benckiser is a well-known and trusted company in Bangladesh's FMCG sector. It offers a wide range of products, including Dettol, Harpic, Lizol, Trix, Mr Brasso, and Veet.

As of March this year, out of its total shares, sponsor-directors held 82.96%, government 3.77%, institutional shareholders 6.80%, foreign 0.01% and general public held 6.46%.

Most listed drug manufacturers in Bangladesh posted double-digit year-on-year profit growth in the first nine months through March, supported by rising demand, efficient cost management, and a stable forex market. Bangladeshmarket report
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Market analysts attributed the growth to higher sales volumes, improved operational efficiency, and sustained demand for medicines both domestically and in export markets.

The sector's performance stands out at a time when many other industries-including multinational companies-are grappling with elevated operating costs amid persistent inflationary pressure.

"Sales of lifesaving drugs increased due to strong local demand, while leading companies successfully managed to keep operating costs lower," Salim Afzal Shawon, head of research at BRAC EPL Stockbrokerage, told The Financial Express over the phone.

The growing population, coupled with rising awareness of healthcare needs, has amplified demand for generic medicines in the local market, particularly for chronic diseases.

The aftermath of the Covid-19 pandemic has further underscored the importance of healthcare, leading to a heightened focus on medical preparedness and infrastructure, which in turn has positively impacted the pharmaceutical industry.

"People now prioritise healthcare spending more than before, which is contributing to higher sales and profitability," said Mr Shawon. Marketupdate service

This resilience allows leading pharmaceutical companies to sustain strong revenue and profit growth, he added.

Combined profits of eight major drug manufacturers rose nearly 14 per cent year-on-year to Tk 27.22 billion during July-March of FY26. Over the same period, total sales increased 13 per cent year-on-year to Tk 155 billion.

Among the eight, Techno Drugs and Silco Pharma saw their profits decline, mainly due to lower sales and higher finance costs.

Silco Pharma's profit fell 19 per cent year-on-year in the nine months through March, as its finance costs more than doubled to Tk 170 million due to increased borrowing.

Techno Drugs' profit also dropped 16 per cent due to lower sales and higher tax expenses. Its sales declined 10 per cent year-on-year, while tax expenses surged 19 per cent during July-March FY26 compared to the same period a year earlier.

Beximco Pharma and Navana Pharma have yet to publish their third-quarter financial results. Financialdata analytics

Overall, the pharmaceutical sector has remained resilient despite broader economic challenges such as inflationary pressure and rising production costs.

Square Pharma, the country's largest drug maker, posted a 10 per cent year-on-year increase in profit to Tk 20.64 billion for the nine months through March. Revenue rose 12.5 per cent to Tk 65.08 billion.

The company attributed the sustained growth to several factors, including rising domestic demand for healthcare products, export earnings, and income from subsidiaries.

Square Pharma's local sales grew by more than 9 per cent, while revenue from its Kenya subsidiary rose 4.5 per cent year-on-year during the period.

The company also reduced its finance costs by 55 per cent, supported by the partial repayment of long-term loans.

"The drug maker continues to grow in both sales and profit owing to strong consumer trust in its products," said Akramul Alam, head of research at Royal Capital.

He highlighted Square Pharma's competitive edge in producing high-quality generic medicines at relatively low costs, supporting its long-term growth trajectory. Globalmarket forecast

Another leading drug manufacturer, Renata, posted 28 per cent year-on-year profit growth in the first nine months through March, driven by strong operating profit and reduced finance costs following a capital restructuring initiative.

"Profitability improved on the back of better gross margins, efficient procurement, and tight control over expenses, including lower financing costs through major capital restructuring," said the company.

"We successfully lowered finance costs by deploying the proceeds from preference share issuance to retire high-cost debts, a move that has structurally reduced our interest burden going forward," Mustafa Alim Aolad, chief financial officer of Renata, told The Financial Express over the phone recently.

Renata's domestic sales, which account for almost 74 per cent of total revenue, grew by more than 10 per cent, while export revenue rose 5 per cent, aided by a wave of international regulatory approvals.

Beacon Pharmaceuticals recorded the highest profit growth among its peers, registering a 59 per cent year-on-year increase. The growth was driven by higher sales, lower input costs, efficient production planning, and prudent financial management, the company said.

IBN Sina Pharmaceutical Industry also posted strong results, with profit rising 33 per cent and sales increasing 18 per cent, backed by solid operational performance.

Meanwhile, although Advanced Chemical Industries (ACI) remained in the red, its pharmaceutical segment posted 21 per cent year-on-year sales growth during the period under review. Its consolidated losses shrank to Tk 71 million in July-March of FY26, one-eleventh of the losses recorded during the same period of the previous year.

Bangladesh's pharmaceutical industry, which meets 98 per cent of local demand, remains one of the country's success stories, having recorded remarkable growth in recent years. Bangladeshmarket report

Export performance has also remained steady. Pharmaceutical exports reached $170.67 million in the first nine months of FY26, marking growth of more than 3 per cent, driven largely by demand from Asian markets such as Sri Lanka and Myanmar.

Mr Alam said that with continued investment, regulatory compliance, and a growing skilled workforce, the local pharmaceutical sector is poised not only to sustain but also to accelerate export growth in the coming years.

The Bangladesh Investment Development Authority (Bida) has recently submitted 20 deregulation proposals to the finance ministry, aiming to significantly ease doing business without reducing tax rates.

The proposals, developed through a series of consultations with business leaders, focus on removing procedural bottlenecks, reducing compliance costs, and improving predictability in regulatory processes, Bida officials told The Business Standard.

Business representatives believe that if implemented, the measures would lower operational expenses, save time, and boost investor confidence.

Push for risk-based audit system

A key recommendation is the introduction of a risk-based audit system to replace the current practice of selecting firms for audit without clear criteria.

At present, companies are often subjected to repeated audits immediately after submitting their audited financial statements, leading to complaints of unnecessary harassment.

Under the proposed system, the National Board of Revenue would use predefined risk parameters – such as abnormal fluctuations in turnover, inconsistencies in input-output ratios, and repeated refund claims – to automatically identify firms with a higher likelihood of tax evasion.

This "automated audit selection" process would allow authorities to focus enforcement on high-risk cases while reducing pressure on compliant taxpayers.

Reducing reliance on LCs, promoting digital trade

The report suggests reducing dependence on traditional Letters of Credit (LCs) by introducing alternative digital payment and settlement methods. Such reforms could make international trade faster and more cost-effective.

Customs reforms and global benchmarking

Bida has also recommended improving transparency in customs valuation by integrating international price databases alongside domestic references.

To illustrate best practices, the proposals cite VNACCS – Vietnam's automated cargo clearance system – which uses real-time data and reference pricing. Under that model, goods declared within an acceptable price range are cleared automatically through a "green channel," significantly reducing delays.

Adopting similar mechanisms could streamline Bangladesh's customs procedures, cut bureaucratic complexity, and shorten clearance times, according to the proposals.

24/7 port operations to cut logistics costs

Business leaders identified limited port operating hours as a major constraint. Despite growing trade volumes, full-scale 24/7 operations are not consistently available due to restrictions in banking and customs services.

Bida has recommended round-the-clock port operations, which could help reduce congestion and lower logistics costs.

In addition, the proposals suggest allowing up to 80% of import clearance through off-dock facilities in phases, supported by regular audits and risk-based monitoring to ensure compliance.

Concerns over indiscriminate audit, AIT

Speaking to TBS, Business Initiative Leading Development Chairperson Abul Kasem Khan said even long-compliant taxpayers frequently face repeated audits, creating uncertainty and discouragement.

"We have seen cases where companies with a strong compliance record and even recognition as top taxpayers are repeatedly audited. This undermines confidence," he said.

Kasem, who was a former president of the Dhaka Chamber of Commerce and Industry, also highlighted concerns over Advance Income Tax (AIT), noting that in many cases businesses pay more tax than their actual liability, with refunds delayed.

"As a result, the effective tax rate can rise to 40-50%, putting pressure on working capital," he said, adding that excess payments should either be refunded quickly or adjusted against future tax liabilities.

NBR signals support for easing compliance

Addressing a consultative committee meeting organised by the NBR and the FBCCI last week in Dhaka, Finance Minister Amir Khosru Mahmud Chowdhury, said the government is committed to dismantling the existing regulatory barriers to doing business.

NBR Chairman Abdur Rahman Khan recently said the government is focusing not only on tax rates but also on simplifying business processes.

"Our priority is to reduce unnecessary complexities and make compliance easier so that businesses can operate more efficiently," he said at a pre-budget discussion.

Advanced Chemical Industries (ACI) PLC is set to further diversify its business portfolio by entering the stationery market through a joint venture with the Chinese industry leader, Deli Group.

In a regulatory filing on Thursday, the local conglomerate informed that its board of directors approved the formation of a new company titled "Deli ACI Bangladesh Limited" in a meeting held on 29 April. The joint-venture entity will have an authorised capital of Tk100 crore and an initial paid-up capital of Tk27 crore.

ACI PLC will hold a 50% stake in the new venture, with the partnership remaining subject to the approval of the relevant regulatory authorities.

The collaboration aims to combine Deli's international expertise in stationery manufacturing with ACI's extensive local market knowledge and its massive nationwide distribution network.

The company stated that the venture will introduce a wide range of stationery solutions for students, professionals, and creative users, focusing on functionality, durability, and contemporary design while meeting both global standards and local demand.

Founded in 1981, Deli Group is a prominent Chinese stationery manufacturer. As of October 2018, it was recognised as the largest stationery manufacturer in Asia. The group operates several global sub-brands, including Deli Tools, Deli Plus, Deli Genius, Agnite, Nusign, and Dmast, focusing on office and school supplies.

This move marks ACI's fifth major international partnership. At present, the conglomerate operates four successful joint-venture companies: pladis ACI Bangladesh Limited (with the UK's pladis), ACI Godrej Agrovet Private Limited (with India's Godrej), ACI CO-RO Bangladesh Limited (with Denmark's CO-RO), and Colgate-Palmolive ACI Bangladesh Private Limited (with the US-based Colgate-Palmolive).

A total of 197 listed companies in Bangladesh's stock market have failed to comply with the requirement of appointing at least one woman independent director in their boards, according to the Bangladesh Securities and Exchange Commission (BSEC).

Out of 360 listed firms, 163 companies (around 45%) have complied with the directive over the past one and a half years. However, another 66 companies have not responded to the regulator's directive at all.

Among the remaining companies, 131 firms have requested additional time from the Bangladesh Securities and Exchange Commission (BSEC) to comply with the requirement.

BSEC has instructed the non-compliant companies to complete the appointment of women independent directors by 30 June, 2026, in line with the Corporate Governance Code, 2018. The commission has also warned that legal action will be taken against companies that fail to meet the requirement within the deadline.

The instruction was reiterated in a meeting held with company secretaries of non-compliant listed firms. The meeting emphasised strict enforcement of the rule and urged companies to take immediate steps.

According to the amended gazette issued on 29 April, 2024, every listed company is required to appoint at least one woman independent director to ensure better governance and board diversity. Initially, companies were given one year to comply, which was later extended to December 2025. However, as several firms still failed to meet the requirement, the deadline has now been pushed further to June 30, 2026.

BSEC has urged companies to select qualified female professionals from diverse backgrounds for the role. Suggested categories include business leaders, corporate professionals, members of business associations, university teachers, government officials (serving or retired), professionals with relevant degrees, and lawyers from the High Court Division.

BSEC officials stated that increasing women's participation in corporate boards is essential for strengthening corporate governance. They believe it will improve transparency, accountability, and diversity in decision-making processes within listed companies.

At the same time, some market stakeholders argue that a shortage of experienced female professionals in certain sectors is creating challenges for companies. Many firms, especially in manufacturing industries, still operate under traditionally male-dominated board structures, making the transition slower.

However, experts counter that qualified female professionals are widely available in banking, insurance, academia, legal practice, and public administration. They argue that lack of initiative, rather than shortage of talent, is the main reason behind the delay.

BSEC Commissioner Farzana Lalarukh had earlier noted that many companies are still not complying with the mandatory requirement, indicating weak corporate governance practices. She also pointed out issues such as irregularities in appointing company secretaries and the dominance of family-controlled boards, which often limits the effectiveness of independent directors.

She further mentioned that social and family barriers also discourage women from taking leadership roles in corporate boards. The commission is working to develop a stronger pool of qualified women directors and is also considering possible flexibility in appointment policies if needed.

According to BSEC officials, some companies have not prioritised compliance, while using the excuse of not finding suitable candidates.

Industry observers note that ensuring women representation at the board level is not just a compliance requirement but a key part of effective corporate governance. It can improve risk management, ethical standards, and long-term strategic decision-making.

BSEC has already indicated that after 30 June, strict enforcement measures will be taken against non-compliant companies. These may include warnings, monetary penalties, and other administrative actions under securities laws.

Company secretaries attending the meeting were instructed to complete the appointment process within the deadline and formally report compliance to the commission.

Bangladesh's merchandise exports showed signs of a strong turnaround in April, snapping eight months of subdued performance with a sharp 32.92% year-on-year growth.

According to data released by the Export Promotion Bureau (EPB) today (3 May), the recovery was driven largely by a rebound in garment shipments and improving buyer confidence following the national elections.

Export earnings rose to $4.01 billion in April, up from $3.02 billion in the same month last year. On a month-on-month basis, shipments also increased by 15.20% from $3.48 billion in March.

The April performance marks one of the strongest monthly gains in recent times, suggesting that export orders – particularly in key markets – are beginning to recover after a prolonged slowdown.

However, the broader picture remains mixed.

In the first 10 months of the current fiscal year (July-April), total export earnings stood at $39.40 billion, down 2.02% from $40.21 billion in the same period a year earlier. This indicates that while recent gains are significant, they have yet to fully offset earlier declines.

Exporters attributed the surge to a combination of a low base effect from last April and renewed buyer confidence following the elections.

Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), attributed the increase to two primary drivers.

"First, last year's Eid-ul-Fitr fell on 31 March, with holidays extending through 6 April, which significantly curtailed exports during that period. Compared to that low base, this year's full month of uninterrupted operations naturally resulted in much higher figures," he told TBS.

He further noted that many international buyers had taken a "wait-and-see" approach ahead of the national elections in February. "Following a credible election, buyer confidence has stabilised, positively impacting April's earnings," Mahmud said.

According to the BGMEA president, while the data shows a massive spike, organic export growth for April sat closer to 8-10%. He cautioned that May is unlikely to replicate this performance due to the upcoming Eid-ul-Azha holidays but expressed optimism for a rebound in June, provided geopolitical tensions in the Middle East subside.

Garment sector drives recovery

The ready-made garment (RMG) sector, the backbone of the country's export economy, once again led the recovery.

RMG exports rose 31.21% year-on-year to $31.72 billion during the July-April period, accounting for the bulk of export earnings. In April alone, garment shipments climbed to $3.14 billion from $2.39 billion a year earlier, reflecting a strong pickup in orders.

Despite this robust performance, the sector's cumulative earnings remain slightly below the previous year's $32.64 billion.

Fazle Shamim Ehsan, senior vice-president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), also attributed the surge to a post-election boost in buyer confidence and seasonal demand.

He noted that lower order volumes in previous months had depleted buyer inventories, while April and May are traditionally peak periods for winter garment shipments, both of which fuelled the April boost.

However, Ehsan cautioned that growth in May could be dampened by Eid-ul-Azha holidays, and that a slowdown in new orders may affect momentum from June onward, depending largely on geopolitical developments in the Middle East.

However, BKMEA President Mohammad Hatem said the recent spike largely reflects deferred shipments from March rather than a surge in fresh orders.

He explained that March exports dipped because factories closed for 10 days during Eid-ul-Fitr, causing production backlogs that were finally cleared in April.

"To our knowledge, factories have not seen unusually high additional orders or a sudden influx of new buyers," Hatem said.

He warned that exports could face renewed pressure later this month as another holiday period threatens to disrupt production schedules again. "To understand the true export trend, we must wait until July. While temporary increases may persist through June due to shipment adjustments, the actual picture will only become clear then."

Uneven recovery beyond garments

Beyond garments, however, the export earnings remain uneven.

Non-RMG sectors, including primary commodities and several manufacturing segments, have yet to show a comparable recovery, dragging down overall export growth. EPB data suggests that while some categories posted modest gains in April, their contribution remains limited and volatile.

Market-wise, the recovery appears broad-based.

Exports to major destinations such as the United States and the United Kingdom recorded strong year-on-year growth, while all of Bangladesh's top 20 export markets posted positive gains in April. This indicates a gradual normalisation of demand across key regions after months of contraction.

Still, a trade economist cautions against reading too much into a single month's performance.

"The April numbers are encouraging, but the key question is whether this momentum can be sustained," said Dr Mohammad Abdur Razzaque, chairman of RAPID, a private think tank. "Sustaining this pace of growth will be challenging."

Razzaque, also a trade economist, noted that the strong April performance may partly reflect a low base effect, as export earnings in April last year were relatively weak.

Bashundhara Paper Mills, a concern of Bashundhara Group, has incurred a loss of Tk422 crore in the first nine months of the current fiscal year, mainly due to a shortage of raw materials and a rise in utility costs.

During the July-March period of FY26, the company's loss widened significantly from Tk184 crore in the same period a year earlier, according to its financial statement ended in March.

Its year-on-year revenue also plunged by 56% to Tk223.22 crore, down from Tk507.67 crore in the corresponding period of the previous fiscal year.

Despite the sharp decline in revenue, the cost of sales stood at Tk420.59 crore at the end of March 2026, compared to Tk482.11 crore in the same period a year ago.

The company reported an operating loss of Tk523.43 crore, up from Tk230 crore in the July-March period of the previous fiscal year.

Explaining the losses, company officials said operating profitability declined due to the unavailability of raw materials, increased utility costs, a sharp rise in input prices, and higher borrowing costs following interest rate hikes.

As a result, the company's earnings per share (EPS) deteriorated significantly, with per-share loss rising to Tk24.27 from Tk10.60 in the previous period.

However, net operating cash flow per share rose slightly to Tk8.95 during the July-March period of FY26, compared to Tk8.75 in the same period a year earlier. The net asset value per share declined to Tk33.60 as of 31 March.

The company said the improvement in cash flow was mainly due to reduced payments to suppliers and other operating creditors, which strengthened its overall operating cash position.

In FY25, Bashundhara Paper Mills incurred a loss of Tk329.91 crore, with a per-share loss of Tk18.98. Due to continued losses, the company did not declare any dividend for its shareholders for FY24.

The company's shares closed on Sunday at Tk26.30 on the Dhaka Stock Exchange, down 1.87% from the previous trading session.

The Cabinet has approved a set of tax measures for the import of completely new electric vehicles, including buses and trucks.

The decision was taken at a Cabinet meeting - chaired by Prime Minister Tarique Rahman - held in the Cabinet Room of the National Parliament at 6:45pm on Sunday (3 May), according to a statement from the Cabinet Division.

Under the decision, a notification will be issued to maintain the Value Added Tax (VAT) at 15% for electric buses with a minimum of 17 seats, for use in sectors other than student transportation.

At the same time, these imports will be exempted from customs duty (CD), regulatory duty (RD), supplementary duty (SD), advance tax (AT) and advance income tax (AIT), subject to certain conditions.

According to Cabinet Division sources, the National Board of Revenue will soon issue a notification in this regard. The facility will remain in effect till 30 June 2026 - i.e. the end of the current fiscal year of 2025-26.

It follows an earlier decision to allow the duty-free import of electric buses for educational institutions to promote safe and environmentally friendly transportation for students.

A similar notification will also be issued for the import of trucks with a capacity of five tonnes or more, the statement added.

The initiative was proposed by the Internal Resources Division, the statement said.

The United Arab Emirates has left the Organization of Arab Petroleum Exporting Countries (OAPEC), an alliance that does not set production policies for its members, a statement from the intergovernmental organisation showed on Sunday.

The statement follows UAE's surprise announcement on 28 April of its departure from the OPEC and OPEC+ producer groups, to prioritise boosting its own output.

OAPEC was formed in 1968 with the aim of boosting cooperation among Arab oil exporters.

The Asian Development Bank (ADB) will back $70 billion in new energy and digital infrastructure initiatives by 2035, aiming to connect power grids, expand cross-border electricity trade, and improve broadband access across Asia and the Pacific.

The Pan-Asia Power Grid Initiative will connect national and subregional power systems so renewable energy can flow across borders, while the Asia-Pacific Digital Highway will help close the digital infrastructure gap and enable the region to benefit from AI-driven growth, reads a press release.

Under the Pan-Asia Power Grid Initiative, ADB will work with governments, utilities, the private sector, and development partners to mobilise $50 billion by 2035 for cross-border power infrastructure that can unlock renewable energy at scale.

The initiative will focus on transmission and grid integration, including cross-border lines, substations, storage, and grid digitalisation.

It will also support power generation linked to electricity trade, including renewable energy export projects, regional renewable hubs, and hybrid generation-storage facilities.

By 2035, ADB aims to integrate about 20 gigawatts of renewable energy across borders, connect 22,000 circuit-kilometers of transmission lines, improve energy access for 200 million people, create 840,000 jobs, and cut regional power sector emissions by 15%.

ADB expects to finance about half of the $50 billion initiative from its own resources and raise the rest through cofinancing, including from the private sector.

Up to $10 million in technical assistance will support efforts to align regulations, adopt common technical standards, prepare feasibility studies and advance other work needed for major projects.

The Pan-Asia Power Grid Initiative marks a shift from country-to-country energy links to a regional approach to power trade.

It builds on existing subregional cooperation initiatives, including the South Asia Subregional Economic Cooperation program, the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation grid interconnection planning, the ASEAN Power Grid, and the Central Asia Regional Economic Cooperation Energy Strategy 2030.

The Asia-Pacific Digital Highway will mobilise $20 billion by 2035 to finance digital corridors, data infrastructure, and AI-ready economies.

Investments will focus on connected infrastructure, including terrestrial and subsea fiber networks, satellite links and regional data centres.

ADB will also provide policy and regulatory support, including on cybersecurity risk management, and invest in skills programs to strengthen digital and AI readiness.

By 2035, the initiative aims to provide first-time broadband access to 200 million people and faster, more reliable digital connectivity for another 450 million people across the region.

It is expected to cut connectivity costs in remote and landlocked areas by about 40% and help create 4 million jobs.

ADB expects to finance $15 billion of the $20 billion initiative from its own resources and raise $5 billion through cofinancing, including from the private sector.

The Centre for AI Innovation and Development will be established in Seoul to support the initiative. Backed by a $20 million contribution from the Government of the Republic of Korea, the centre will promote responsible and inclusive AI adoption and help train about 3 million people in digital and AI-related skills by 2035.

ADB President Masato Kanda said that Energy and digital access will define the region's future.

"These two initiatives build the systems Asia and the Pacific need to grow, compete, and connect. By linking power grids and digital networks across borders, we can lower costs, expand opportunity, and bring reliable power and digital access to hundreds of millions of people."

The telecom regulator has decided to allocate 10 MHz from the highly valuable 700 MHz band to state-owned Teletalk, despite the operator owing around Tk 5,500 crore in spectrum fees and already holding significant unused or underused spectrum.

The decision was taken at a recent Bangladesh Telecommunication Regulatory Commission (BTRC) meeting, according to documents.

The 700 MHz band is considered globally valuable for wide coverage, strong indoor signal, low rollout cost, and suitability for rural-urban networks, including 5G. In Bangladesh, 45 MHz of the band is allocated for mobile use, while 20 MHz remains unused due to a legal dispute.

TIMELINE OF GOVT, REGULATORY ACTIONS

On February 8, just before the national election, the interim government, through the telecom ministry, sent a letter to BTRC instructing it to allocate 10 MHz of spectrum to Teletalk.

A day later, Teletalk applied for the spectrum.

On February 16, the ministry informed the regulator that Teletalk had proposed converting its unpaid dues -- including licence and spectrum fees -- into government equity, now under finance division review.

On April 9, BTRC sought guidance from the ministry on how Teletalk would pay for the allocation. On April 24, the ministry directed the regulator to proceed with the allocation, citing the need to reduce customer inconvenience in line with the government’s election manifesto.

The price was set at Tk 237 crore per MHz, matching the rate paid by Grameenphone for 10 MHz in January as the sole bidder in the auction.

The move means the government may forgo at least Tk 2,000 crore in revenue in the near term.

Only 5 MHz of available spectrum in this band will remain for Banglalink and Robi, both of which have large customer bases. The two operators did not join the latest auction, saying prices were too high.

Spectrum is a limited and valuable resource that countries manage carefully, as it is important for improving telecom services and generating government revenue. In Bangladesh, there have been concerns about spectrum management, particularly regarding Teletalk.

LARGE DUES AND UNUTILISED SPECTRUM

Teletalk holds 55.2 MHz across the 900, 1800, 2100, and 2300 MHz bands and serves around 68 lakh subscribers, giving it about 0.81 MHz per lakh users.

By comparison, Grameenphone has 137.4 MHz for 8.44 crore subscribers (0.16 MHz per lakh), Robi has 124 MHz for 5.74 crore users (0.22 MHz per lakh), and Banglalink has 80 MHz for 3.74 crore users (0.21 MHz per lakh).

Despite higher spectrum per subscriber, Teletalk’s voice and data service quality has been weaker than peers in BTRC quality tests over the years, and it has added only about 1 lakh subscribers in five years.

The operator has also not used 30 MHz in the 2300 MHz band acquired in the 2022 auction, despite rollout obligations, which is considered a breach of spectrum utilisation rules.

Teletalk’s total liabilities include Tk 120 crore in licence fees, Tk 102 crore in revenue sharing, Tk 5,506 crore in spectrum fees, and around Tk 62 crore in other charges.

EXPERT CRITICISM

“Private operators are required to follow strict rules, but public companies often do not face the same obligations, which creates a market imbalance,” said Khondaker Golam Moazzem, research director at the Centre for Policy Dialogue.

He added that large unpaid dues raise doubts about such firms’ ability to survive in a competitive market, noting they often rely on government support rather than efficiency.

TIM Nurul Kabir, a telecom expert, said, “Spectrum is a valuable resource and allocating it to an operator that cannot ensure good service or generate revenue is a poor regulatory decision.”

“The government needs a different approach to revive Teletalk rather than using up valuable resources. Such decisions are also anti-competitive,” he added.

Md Emdad ul Bari, chairman of BTRC, said the allocation was approved on the condition that spectrum charges would be converted into government equity.

He said this would not cause revenue loss, as funds would shift between state entities as equity investments.

Top 11 banks held Tk 52,034 crore of non-performing loans (NPLs), accounting for about 71.67 per cent of total default loans in the CMSME sector, highlighting a high concentration of credit risk in a handful of lenders.

According to Bangladesh Bank data as of December 31, 2025, total loan disbursement by 60 scheduled banks in the cottage, micro, small and medium enterprise (CMSME) sector stood at Tk 3,01,397 crore, representing 16.58 per cent of overall outstanding loans of Tk 18,17,736 crore. Countryspecific content

However, recovery from the sector is better compared with the other industries. Banks’ total NPL ratio stood at 30 per cent in December, 2025.

Default loans in the segment were Tk 72,600 crore, or 24 per cent of total CMSME lending.

CMSME refers to small-scale business activities ranging from cottage industries and micro enterprises to small and medium-sized firms.

The CMSME sector is widely regarded as the backbone of Bangladesh’s economy, contributing around 25 per cent to GDP and supporting millions of entrepreneurs, traders and small manufacturers.

These businesses typically operate with limited capital but play a central role in job creation, rural industrialisation and income distribution.

Despite its importance, the sector remains vulnerable due to limited access to finance, weak financial literacy and dependence on informal networks.

Banks are expected to fill this gap.

Due to poor lending by several state-run banks and weak shariah-based banks, NPL in the sector surged.

Among the major defaulters, Islami Bank Bangladesh PLC alone had Tk 9,761 crore in bad loans against Tk 29,759 crore disbursed, with an NPL ratio of 33 per cent in the CMSME sector.

BASIC Bank showed one of the worst asset qualities, with Tk 6,168 crore in defaults out of Tk 8,839 crore disbursements, translating into a 70 per cent NPL ratio.

State-owned Janata Bank and Sonali Bank reported Tk 5,947 crore and Tk 4,948 crore in default loans respectively, while Agrani Bank had Tk 4,474 crore in NPLs.

Among private banks, First Security Islami Bank recorded an alarming 96 per cent NPL ratio with Tk 4,884 crore in defaults against Tk 5,107 crore in loans in CMSME, while Padma Bank showed a similar trend with a 95 per cent NPL ratio in the CMSME sector.

Other banks with significant exposure include Al-Arafah Islami Bank (Tk 3,891 crore NPL), Social Islami Bank (Tk 3,241 crore), EXIM Bank (Tk 3,058 crore) and United Commercial Bank with Tk 2,449 crore.

In contrast, several banks maintained relatively strong asset quality.

BRAC Bank, the largest CMSME lender with Tk 30,570 crore in disbursement, reported only Tk 670 crore in defaults.

Pubali Bank and City Bank also kept NPLs low at Tk 484 crore and Tk 322 crore respectively.

As a result high NPL, credit flow to small businesses slows down, affecting expansion, employment and production.

Persistent defaults also raise borrowing costs. Banks tend to charge higher interest rates to offset risks, making financing less affordable for genuine entrepreneurs.

In a sector already constrained by limited resources, this can discourage new investments and weaken overall economic momentum.

At Tejturi Bazar in the capital’s Tejgaon area, ridge gourd was selling at Tk 70–80 per kg and tomatoes at Tk 50–60 per kg yesterday, Thursday. Just a week earlier, both vegetables were Tk 10–15 cheaper per kg. The rise in prices has been driven by rainfall and higher transport costs.

Over the past week, prices have also increased for onions, cucumbers, aubergines, chillies and green papaya. Broiler chicken and eggs have also become more expensive. Among grocery items, the prices of sugar, coarse lentils and polao rice have gone up. Although the price of bottled soybean oil has been raised, supply in the market has yet to return to normal.

Traders said rainfall over the past few days has disrupted the regular supply of vegetables. Higher fuel prices have also pushed up transport costs. Together, these factors have driven up vegetable prices. These details emerged from visits yesterday to Mohammadpur Krishi Market, Town Hall Market and Tejturi Bazar, as well as conversations with buyers and sellers.

A market survey found that the prices of at least nine vegetables have increased over the past week. Cucumber recorded the sharpest rise. Hybrid cucumber prices jumped by Tk 30 per kg and were selling yesterday at Tk 80–100 per kg. Locally grown cucumber was priced slightly higher. Prices of aubergine, sponge gourd, snake gourd, ridge gourd and tomatoes also rose by Tk 10–15 per kg. Green papaya and chillies increased by Tk 20, reaching Tk 80–100 per kg.

According to the Department of Agricultural Marketing, compared with last month, cucumber prices have risen by 111 per cent, green papaya by 87 per cent, local tomatoes by 25 per cent and aubergines by 7 per cent.

Onion prices have also gone up by Tk 5 per kg over the past week, with local onions now selling at Tk 40–45 per kg. However, onions had remained unusually cheap for a long period this year, limiting farmers’ profits. The recent price rise may improve their returns.
Also Read

What is driving the price hike

Heavy rainfall hit the country last Sunday. After a two-day pause rain resumed on Tuesday night. Although the capital remained dry throughout yesterday, the meteorological office has forecast intermittent rainfall across the country for the next three days.

Aminul Haque, a vegetable trader at Karwan Bazar, told Prothom Alo that fewer vegetable trucks had arrived at the market over the past two days. In many areas, heavy rain has caused waterlogging in vegetable fields, preventing farmers from harvesting produce. This has pushed up prices for some vegetables. He added that buyer numbers were also lower as it was the month-end.

Meanwhile, the government has increased retail prices of all types of fuel in response to rising global oil prices. Diesel prices have risen by Tk 15 per litre, kerosene by Tk 18, octane by Tk 20 and petrol by Tk 19. This has also affected commodity prices.

Imran Master, president of the Bangladesh Kachamal Arot Malik Samity, told Prothom Alo that truck fares for transporting vegetables from Dhaka, Chattogram and Sylhet have risen by Tk 5,000–7,000 since fuel prices increased. Combined with lower supply caused by rain over the past three days, this has pushed vegetable prices higher.

Traders said rainfall over the past few days has disrupted the regular supply of vegetables. Higher fuel prices have also pushed up transport costs. Together, these factors have driven up vegetable prices.

Broiler chicken and eggs remain expensive

Farm eggs were selling yesterday at Tk 120–130 per dozen. Prices have remained at this level for more than two weeks. Earlier, eggs sold for Tk 100–110 per dozen. Higher transport costs have also contributed to the rise in egg prices. There is also some supply shortage, according to Mohammad Amanat Ullah, former president of the Tejgaon Egg Traders’ Association.

Broiler chicken prices also remain elevated. Broiler chicken is selling at Tk 190–200 per kg, compared with Tk 150–160 around six weeks ago.

Sonali chicken prices, however, have eased slightly. Yesterday, Sonali chicken was sold at Tk 350–360 per kg in three markets of the capital. Colourbird, or hybrid Sonali chicken, sold at Tk 320–330 per kg. Two weeks ago, Sonali chicken was Tk 30 higher per kg, while prices exceeded Tk 400 after Eid-ul-Fitr.

The price of packaged polao rice has increased by another Tk 15 per kg, taking the new retail price to Tk 190 per kg. Traders, however, are selling it at Tk 180–185, while older stock remains available at Tk 165–170. Loose polao rice is priced at Tk 150–160 per kg.

Two weeks ago, loose sugar prices rose by Tk 5 per kg to Tk 105–110, which remained stable there yesterday. Coarse lentils have also increased by Tk 5, now selling at Tk 90–95 per kg.

Soybean oil supply still disrupted

On Wednesday, the government increased prices of bottled and loose soybean oil by Tk 4 per litre. The price of one litre of bottled soybean oil was raised from Tk 195 to Tk 199, while loose soybean oil rose from Tk 176 to Tk 180. As a result, the maximum retail price of a five-litre bottle now stands at Tk 975.

The market has been facing a shortage of bottled soybean oil for nearly three months. During this period, companies had been demanding a price increase, citing rising global edible oil prices, while supply of bottled soybean oil remained low. Although the government had resisted the move for some time, the Ministry of Commerce approved the price hike on Wednesday.

However, a market visit one day after the increase showed that the supply shortage remains unchanged. Humayun Kabir, a grocer at Mohammadpur Krishi Market, said the supply of bottled soybean oil could improve within the next two to three days following the price increase. Dealers of three edible oil companies had informed them of this, he added.

United Commercial Bank (UCB) secured a whopping 198 per cent year-on-year increase in consolidated profit to Tk 238 million in 2025 as it reaped handsome returns from investment income.
FE

Investment earnings, including income from Treasuries, subordinated bonds, other private sector bonds, and investments, more than doubled to Tk 15.2 billion in 2025, according to the company's latest financial statement.

However, net interest income declined due to a sharp rise in interest expenses in a high-rate environment.

Deposits surged 23 per cent year-on-year to a historic Tk 683.9 billion, more than double the sectoral average growth.

UCB added nearly 678,000 new accounts during the year, including a large number of savings and current accounts, strengthening its retail base, which now accounts for 59 per cent of total deposits.

Agent banking also contributed steadily, with higher average deposits per outlet.

Stronger deposit inflows improved liquidity, bringing down the advance-deposit ratio to 83 per cent from over 91 per cent a year earlier.

Excess liquidity was channelled into low-risk government securities, pushing such investments up by 69 per cent year-on-year in 2025 to more than Tk 148 billion. Total assets expanded by 14.5 per cent to more than Tk 884 billion.

Loan growth remained measured at 8 per cent, reflecting a cautious approach focused on asset quality.

While the classified loan ratio stood at 15.5 per cent, the company's management indicated ongoing efforts to reduce stressed assets.

UCB made notable progress in digital transformation. Around 65 per cent of total transactions were processed through digital channels in 2025.

The bank's credit rating remained 'AA' in the long term with a negative outlook, reflecting ongoing pressure from capital and provisioning requirements.

No dividend has been declared for 2025 due to restrictions linked to provisioning shortfall.

Overall, UCB ended the year on a stronger footing, with improved liquidity, expanding digital operations, and steady earnings growth despite a challenging interest rate environment.

The price of a 12kg cylinder of liquefied petroleum gas (LPG) remains unchanged at Tk 1,940 for May.Business Policy Updates
FE

The Bangladesh Energy Regulatory Commission (BERC) announced the decision on Sunday, which would take effect from 6 pm. Bangladeshmarket report

The LPG prices were adjusted twice last month.

On April 2, the price of the 12kg cylinder was raised by Tk 387 to Tk 1,728. Later, on April 19, BERC hiked the price by Tk 212, setting it at Tk 1,940.

The private sector can sell LPG in various cylinder sizes-5.5kg, 12.5kg, 15kg, 16kg, 18kg, 20kg, 22kg, 25kg, 30kg, 35kg and 45kg-to consumers at proportional price in May.

The price of LPG supplied through a reticulated system or centralised storage system also remains unchanged at Tk 351 per cubic metre for May.

Meanwhile, the consumer-level price of autogas has been slightly increased by 2 paisa for May, setting the new price at Tk 89.52 per liter, including value added tax (VAT).

Autogas prices were also adjusted twice last month.

On April 2, the price was raised by Tk 17.94 to Tk 79.77 per liter. On April 19, BERC increased the price by Tk 9.73, fixing it at Tk 89.50 per liter.