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

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

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

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

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

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

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

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

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

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

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

What experts say

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Instead, it had the opposite effect.

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

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

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

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

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

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

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

DISCLOSURE TRIGGERS SURGE

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

Other dormant firms have also seen sharp gains.

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

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

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

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

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

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

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

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

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

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

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

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

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

AXE FINALLY LOOMS OVER THEM

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Dhaka stocks extend rally as turnover jumps 27%

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

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

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

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

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

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

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

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

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

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

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

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

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

A conditional two-week ceasefire between the United States and Iran has led to the reopening of the Strait of Hormuz, easing concerns over global energy supplies and pushing oil prices lower.

Brent crude fell 15.9% to $92.30 a barrel, while US-traded oil dropped 16.5% to $93.80 after the announcement. Prices remain above the roughly $70 per barrel level seen before the conflict began on 28 February, says the BBC.

Under the agreement, President Donald Trump said, "I agree to suspend the bombing and attack of Iran for a period of two weeks... subject to the Islamic Republic of Iran agreeing to the COMPLETE, IMMEDIATE, and SAFE OPENING of the Strait of Hormuz."

Iran signalled conditional acceptance of the truce. Foreign Minister Abbas Araghchi said Tehran would agree to a ceasefire "if attacks against Iran are halted," adding that safe passage through the waterway "will be possible."

Asian financial markets rose following the development, with Japan's Nikkei 225 gaining 4.5% and South Korea's Kospi jumping 5.5%.

The ceasefire follows weeks of disruption to global energy markets. The Philippines declared a national energy emergency on March 24 after petrol prices doubled, while migrant workers in India were forced to leave cities due to shortages of cooking gas.

Analysts said economic considerations may have played a role in the agreement. Xavier Smith of AlphaSense said Trump was likely wary of allowing energy prices to "skyrocket," risking a "self-inflicted economic wound."

Trump's rhetoric during the conflict also drew criticism. He had threatened that "a whole civilisation will die tonight" if a deal was not reached by his deadline, prompting concern from the United Nations. The UN chief was reported to be "deeply troubled" by the remarks.

While the reopening of the Strait of Hormuz has provided short-term relief to markets, analysts said the events surrounding the ceasefire could have longer-term implications for perceptions of the United States globally.

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

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

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

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

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

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

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

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

The Bangladesh Securities and Exchange Commission (BSEC) has approved City Bank’s subordinated bond worth Tk 1,200 crore.

In a press release yesterday, the regulator said the unsecured, non-convertible, fully paid-up, fully redeemable, and coupon-bearing bond had received the green light.

Subordinated debt is an unsecured loan or bond that ranks below senior loans or securities for claims on assets or earnings, according to Investopedia.

The bond’s coupon rate will be the reference rate plus a 3 percent margin. The reference rate is the average of the upper limit of six-month fixed deposits at private conventional banks, excluding shariah banks, foreign banks, and banks licensed after 2012.

City Bank will raise funds by issuing bonds to mutual funds, individual investors, corporates, banks, and other institutional investors through private placement. Each bond has a face value of Tk 10 lakh. The proceeds will be used to provide SME, corporate, and retail loans.

EBL Investments will act as the bond’s trustee, while City Bank Capital Resources and IDLC Investments will serve as arrangers.

The BSEC said the bond will be listed on the alternative trading board of the stock exchange.

In addition, the regulator approved the extension of approval letters for Jamuna Bank’s Tk 800 crore bond and Trust Bank’s Tk 500 crore bond. Both bonds are non-convertible, unsecured, fully redeemable, and carry a floating rate.

Following the banks’ applications, their tenures have been extended until September 30, 2026.

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

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

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

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

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

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

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

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

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

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

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

Bangladesh’s net foreign direct investment witnessed a sharp 39 percent increase in 2025, reaching $1.77 billion, according to central bank data.

The growth, however, was driven almost entirely by existing foreign firms, not new investors entering the market.

Bangladesh Bank (BB) data shows that net FDI stood at $1.27 billion in 2024.

Meanwhile, net equity inflows, the most direct measure of new investment, stood at $554.63 million last year, barely changing from $544.63 million a year earlier.

The increase in overall FDI instead came from reinvested earnings, which rose to $781.67 million from $621.96 million, and from intra-company loans, which surged more than fourfold to $434.11 million. Both reflect existing companies financing their local operations rather than fresh capital coming in.

Economists say despite the growth in 2025, the net FDI inflow remains insignificant relative to the size of the economy, particularly in terms of fresh investment. Data indicates that the country is struggling to attract new investors or major expansion projects. In a healthy FDI environment, rising net inflows are typically accompanied by strong equity growth, signalling new projects, job creation, and technology transfer.

Mohammad Abdur Razzaque, chairman of the Research and Policy Integration for Development, said equity inflows have been persistently low for some time.

“Equity investment is very low, which suggests that new investors are not coming. What we are seeing is largely expansion by existing investors,” he said, attributing the weak equity inflows to broader macroeconomic vulnerabilities and an unfavourable investment climate.

The economist also questioned the gap between official claims and actual outcomes, saying that while the Bangladesh Investment Development Authority (Bida) continues to highlight investment prospects, the ground reality does not reflect strong or meaningful inflows.

Rupali Chowdhury, president of the Foreign Investors’ Chamber of Commerce & Industry, pointed to several factors behind the weak inflows.

According to her, the shift to an interim administration, from mid-2024 till February this year, has created uncertainty around long-term investment decisions. In addition, delays in government-backed projects have raised concerns about policy continuity and contract enforcement.

Furthermore, she said episodes of social unrest and “mob culture” have damaged Bangladesh’s image among foreign investors.

A broader global slowdown has also made investors more cautious, with capital flowing to more stable and predictable destinations.

To attract fresh FDI, she stressed the need for consistent policies, respect for contracts, improved infrastructure, and above all, political and social stability.

Khondker Golam Moazzem, research director at the Centre for Policy Dialogue, meanwhile, pointed out that Bangladesh’s FDI inflows remain subdued, with limited signs of strong growth compared with regional peers such as India.

He said a major concern is the composition of inflows. “Intra-company loans have risen sharply, but these largely reflect financing by parent companies to existing operations, not fresh investment.”

He added, “Greenfield investors continue to face hurdles, including complex licensing requirements, delays in opening bank accounts, land acquisition difficulties, and slow approvals.”

FDI also remains concentrated in traditional sectors, he said, while weak intellectual property enforcement and regulatory gaps have kept investment out of non-traditional, export-oriented industries.

In a similar tone, M Masrur Reaz, chairman and CEO of the Policy Exchange of Bangladesh, noted that equity accounts for only around a third of total FDI. “This composition is not encouraging for job creation or economic diversification, even though net FDI recorded strong growth in 2025.”

Oil ​prices extended gains on Tuesday as a US-imposed deadline loomed for Iran to open the Strait of Hormuz or be “taken ‌out”, with US President Donald Trump threatening to order attacks on Iranian bridges and power plants.

Brent crude futures rose $1.44, or 1.3 percent, to $111.21 a barrel by 0700 GMT, while US West Texas Intermediate crude futures were up $2.32, or 2.1 percent, at $114.73.

Trump has threatened to rain “hell” on Tehran if it fails to comply with his deadline of 8 p.m. ​EDT on Tuesday (0000 GMT Wednesday) to reopen the strait, through which about a fifth of global oil supply is normally shipped, if a ​deal is not reached.

Responding to a US proposal through mediator Pakistan, Tehran rejected a ceasefire and said a permanent end to the war was necessary, and pushed back against pressure to reopen the strait.

Iran’s rejection of the US ceasefire proposal has kept tensions ​elevated and left diplomacy hanging by a thread, said Priyanka Sachdeva, senior market analyst at Phillip Nova.

“Oil is holding its gains because the ​battlefield risk is no longer theoretical. Attacks on energy and shipping assets continue, and traders fear that even if the war ends, damage to infrastructure could sideline barrels for months, not days,” she said.

Exports from several Gulf producers have already collapsed due to restricted flows through the Strait of Hormuz.

Iranian forces effectively shut the ​strait after US and Israeli attacks began on February 28.

“Clock-watching is now playing almost as big a role in oil markets as the ​fundamentals themselves in the run-up to Trump’s ultimatum deadline,” said Tim Waterer, chief market analyst at KCM Trade.

“The potential for a ceasefire deal offers some counterweight ‌and could ⁠spark a relief move lower if it gains traction, but persistent supply worries from the Hormuz chokepoint and damaged energy facilities are keeping the floor under prices.”

The U.N. Security Council is expected to vote on Tuesday on a resolution to protect commercial shipping in the Strait of Hormuz, but in significantly watered-down form after veto-wielding China opposed authorizing force, diplomats said.

Attacks in the region continued with explosions heard in the Syrian capital, ​Damascus, and surrounding countryside on Tuesday ​that were caused by the ⁠Israeli interception of Iranian missiles, Syrian state TV reported.

Saudi Arabia said on Tuesday it intercepted and destroyed seven ballistic missiles launched towards its Eastern Region, with debris falling near energy facilities.

The conflict has squeezed global crude supply, ​sending spot premiums for US WTI crude surging to record highs as Asian and European refiners scramble to ​secure replacement supplies amid ⁠disrupted Middle Eastern flows.

Saudi Arabia’s state oil company Aramco raised the official selling price of its Arab Light crude to Asia for May delivery, setting a record premium of $19.50 a barrel above the Oman/Dubai average.

Adding to supply concerns, Russia on Monday said Ukrainian drones attacked the Caspian Pipeline Consortium’s terminal on ⁠the Black ​Sea, which handles 1.5 percent of global oil supply. Russia reported damage to loading infrastructure ​and storage tanks.

Opec+ agreed on Sunday to lift oil output quotas by 206,000 bpd in May, though the increase will be largely notional as key members cannot boost production because ​strait closures are curbing exports.

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

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

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

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

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

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

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

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

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

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

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

What experts say

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

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

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

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

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

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

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

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

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

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

Bangladesh's overall economic growth slowed to 3.03% in the second quarter (October-December) of the 2025-26 fiscal year, down from 3.53% in the same period last year, according to data released by the Bangladesh Bureau of Statistics (BBS) on Monday (6 April).

Growth had been comparatively stronger in the first quarter, reaching 4.96%, up from 3.91% a year earlier. At current prices, the country's GDP rose to Tk1,517,600 crore in Q2, from Tk1,390,100 crore in Q2 FY2024-25, indicating that the overall economy continues to expand despite a slowdown in growth momentum.

Sectoral performance

Agriculture sector maintained positive momentum, growing 3.68% in Q2, up from 1.90% a year earlier. In the first quarter, agriculture posted 2.11% growth, improving from a negative 0.12% last year.

The industrial sector experienced a sharp slowdown, with growth dropping to 1.27% in Q2, compared to 5.78% a year earlier. This followed a stronger first quarter growth of 6.82%, highlighting the uneven trajectory of industrial performance.

The service sector remained relatively stable, growing 4.45% in Q2, slightly up from 3.48% last year, and maintaining similar growth in Q1 at 4.51%.

Despite strong contributions from agriculture and services, the slowdown in industry weighed heavily on overall GDP growth. Experts say boosting investment, ensuring energy supply, and recovering global demand will be critical to reviving industrial momentum.

Impact of political and economic factors

Mustafa K Mujeri, executive director of the Institute for Inclusive Finance and Development, attributed the slowdown in formal sectors to political and social instability during the pre-election period.

He noted that the second quarter coincided with the election season, when worker strikes and political unrest created a tense social and political environment.

"As a result, growth in formal sectors such as manufacturing and industry nearly bottomed out, recording just 1.27%," Mujeri said. "In contrast, informal sectors like agriculture and services managed to maintain relatively stable production trends. Production activity in formal sectors was significantly affected during this period."

He further warned that growth could slow in the coming quarters due to the ongoing Middle East crisis, rising fuel and food prices, and higher global market costs, which have increased production expenses. Reduced garment exports and shortages of diesel, water, and chemical fertilizers are also affecting output.

"In agriculture, farmers did not receive fair prices. Potato prices have fallen by almost half, and production costs for other crops were not fully covered. The government must ensure supportive measures so farmers can continue production. Without timely action, growth, employment, and public welfare could suffer," he said.

National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan on Tuesday (7 April) assured businesspeople in the agriculture sector that their concerns will be addressed, urging them to focus on problems rather than demanding tax cuts.

Speaking at a pre-budget discussion at the NBR office in Agargaon, he said, "Your demand is to reduce taxes, while our responsibility is to increase revenue. Rational coordination is needed, but revenue collection remains essential for the country."

He warned that reducing taxes often leads to endless demands for further cuts and subsidies, noting that "even zero tax does not satisfy anyone" and that tax reductions do not automatically boost compliance.

Agro industry pushes tax exemption at source

The Bangladesh Agro Processors Association has proposed a tax exemption at source for agricultural products and urged the withdrawal of supplementary duty on mineral water up to 3 litres, stressing that safe drinking water is an essential commodity, not a luxury.

NBR Chairman Abdur Rahman assured that the board will address these concerns.

Meanwhile, the Bangladesh Poultry Industries Association has requested turnover tax reductions and easier adjustments of Advance Income Tax (AIT) on imports.

The NBR chief acknowledged pressures to set turnover tax at 2.5%, saying reductions are difficult but being considered.

Feed Industries Association Bangladesh highlighted that 70–80% of poultry feed costs come from raw feed materials and requested incentives to prevent price hikes.

Agriculture Machinery Manufacturers Association-Bangladesh proposed simplifying SRO descriptions for threshers, harvesters, and rice transplanters to ease VAT determinations.

Agro-Chemical Manufacturers, Fertiliser, Crop Protection & Fruit Importers Associations proposed various duty and tax exemptions on raw materials, pesticides, bio-rodenticides, fruit bags, sticky traps, and protective equipment to support local production and exports.

The proposals reflect a broad push from the agriculture sector to reduce fiscal burdens and promote accessibility, safety, and local production

Concerns raised over delayed VAT refunds

A pre-budget discussion meeting, traders raised concerns over delayed VAT refunds.

In response, the NBR Chairman said that with the launch of the online system, VAT refunds have started to be processed.

He added, "The income tax system is also almost complete; it is currently in trial runs. Once these are fully operational, we will refund you directly to your bank accounts. Currently, we have temporarily withheld refunds to enforce discipline, but ultimately, you will receive them."

Other participants included the Bangladesh Agro Feed Ingredients Importers and Traders Association, Shrimp and Hatchery Association of Bangladesh, and Animal Health Companies Association of Bangladesh.

The National Board of Revenue (NBR) has launched a pilot initiative to verify import invoices online in a bid to prevent misdeclaration of goods and values, curb revenue evasion, and speed up customs clearance.

As part of the move, the NBR is linking its customs automation platform, ASYCUDA World, with the database of the Bangladesh Bank. The pilot programme formally began today (7 April).

Speaking at the inauguration, NBR Chairman Abdur Rahman Khan described the initiative as a "landmark step" towards fully digitising customs procedures.

According to an NBR press release, the system will enable fully online, real-time verification of commercial invoices. Once implemented in full, it is expected to significantly reduce revenue risks by preventing attempts at evasion and ensuring the protection of government revenue.

The initiative is also expected to help curb trade-based money laundering, the release added.

It said the new system would reduce reliance on paper documentation, making the import and export clearance process simpler, faster, and more efficient. It will also help build a reliable database for determining the value of imported goods.

Under the system, commercial invoices issued for imports will be transmitted in a unified format through all commercial banks to Foreign Exchange Transaction Management System (FxTMS) of Bangladesh Bank. These invoices will then be shared in real time with the ASYCUDA World system used by customs authorities.

The interconnection between the two systems has been jointly developed by the Foreign Exchange Operations Department of Bangladesh Bank and the IT team of the NBR.

At the event, Kamal Hoassain, director of the Foreign Exchange Operations Department, said it is not feasible to monitor thousands or even millions of invoices quickly and accurately through manual processes.

"Real-time online verification will make it possible to check invoices more efficiently," he said, adding that the system would help reduce trade-based money laundering.

However, he also noted that the system still has some vulnerabilities.

Currently, in the case of imports, the exporter's bank sends documents, including details of goods and prices, to the importer's local lien bank in Bangladesh. Importers or their representatives then submit hard copies of these documents manually to customs authorities, a process that often leads to reported delays and additional costs.

There have also been allegations that some dishonest importers exploit the manual system by providing false information, sometimes in collusion with bank or customs officials, making misdeclaration difficult to detect.

Under the new system, commercial banks will upload invoice data in a prescribed format to the central bank's platform, allowing customs authorities direct access for verification.

The government has decided to waive import duties on electric school buses, aiming to reduce fuel consumption and promote cleaner transport in the education sector, the National Board of Revenue (NBR) Chairman Abdur Rahman Khan said today (7 April).

Speaking at a pre-budget consultation with transport sector stakeholders at the NBR headquarters, he said the initiative is part of a wider strategy to curb fuel use in the country's transport system.

"The government wants to cut fuel consumption in the transport sector. As a first step, we have decided to set zero import duty on electric buses used for school students," he said.

He added that the decision will be implemented immediately, without waiting for the national budget. "There will be broader changes in the electric vehicle (EV) sector in the upcoming budget, but we will not wait till then. A Statutory Regulatory Order (SRO) will be issued soon to formalise the duty exemption," he noted.

Industry leaders at the meeting urged the government to expand incentives for electric vehicles (EVs), including reducing registration costs through clearer classification based on engine capacity (CC) and kilowatt ratings.

The NBR chief acknowledged longstanding delays in VAT refunds, saying the issue – stemming from the lack of an automated system – has persisted for over a year and a half and promising to solve the problem.

Requests to reduce taxes on jet fuel were declined due to concerns over misuse and revenue leakage. "We must also consider revenue protection," the chairman said, noting the government's target to raise tax collection from Tk4 lakh crore to Tk6 lakh crore.

Petroleum dealers also sought duty-free imports of tank lorries used for fuel transportation, with the NBR chief promising to consider the proposal.

Meanwhile, transport operators requested zero-duty imports of truck chassis to replace ageing vehicles—some over 25 years old—but officials indicated that balancing environmental priorities with revenue needs remains a challenge.

Representatives from the motorcycle sector proposed allowing the use of compressed natural gas (CNG) in motorcycles. In response, the NBR chief discouraged further reliance on gas, citing domestic shortages and the high cost of LNG imports.

He instead highlighted the need for shifting towards renewable energy in the current context.

Aviation operators, meanwhile, said rising jet fuel taxes – now at Tk42 per litre from Tk18 previously – have significantly increased operating costs, urging the government to restore earlier rates.

The meeting brought together a broad range of industry groups, including representatives from the Bangladesh Automobile Assemblers and Manufacturers Association (BAAMA), Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA), petroleum dealers, motorcycle manufacturers, shipbuilders and aviation operators.