Bangladesh overtook China in garment exports to the United States during the January-February period of 2026, as China lost its top position amid the impact of American reciprocal tariffs, according to data from the Office of Textiles and Apparel (OTEXA) released yesterday.

China is now the third-largest garment exporter to the US, while Vietnam has become the top apparel exporter, with Bangladesh ranking second, the data showed.

In January-February, Bangladesh exported garments worth $1.37 billion, down 8.53 percent compared with the same period last year.

Vietnam exported garments worth $2.7 billion, up 2.88 percent year-on-year.

China, however, exported garments worth $1.17 billion in the same period, posting a negative growth of 57.65 percent compared with January-February 2025.

Overall, the US imported garments worth $11.53 billion during the period, registering a 13.47 percent year-on-year decline.

The Bangladesh Securities and Exchange Commission (BSEC) has suspended Assistant Director Md Ibrahim Ali over allegations of misconduct and launched departmental proceedings against him.

A commission order issued today (4 April) stated that Ibrahim Ali faces charges of breach of discipline, conduct unbecoming of a public servant, and other actions deemed inappropriate for a BSEC employee. A formal inquiry has already been initiated to examine the allegations.

This follows a series of disciplinary actions at the commission. In April last year, 21 officials were suspended over alleged breaches of conduct, reportedly creating fear and demoralisation among staff.

The commission noted that, under the Bangladesh Securities and Exchange Commission Employees Service Rules, 2021, proven charges may lead to severe penalties, including Ibrahim's dismissal. Considering the seriousness of the case, the BSEC decided to place him under suspension to ensure a fair and impartial investigation.

During this period, he will receive a subsistence allowance as per government regulations. The order took immediate effect in the public interest, with further disciplinary measures to follow based on the inquiry's outcome.

In January, former BSEC Director Abu Raihan Mohammad Mutasim Billah was compulsorily retired after being proven to have misconduct. Allegations included misusing advance funds for house construction, submitting false progress reports, presenting incomplete bills, and seeking extra funds for interior work.

A 27 November 2025 investigation substantiated multiple claims, prompting disciplinary action at the 987th commission meeting.

Nepal’s first billionaire, Binod K Chaudhary, yesterday said Bangladesh and Nepal could significantly deepen economic ties, particularly in energy and cross-border trade, which can be largely facilitated by stronger regional cooperation involving India.

“We would like to enter into a much bigger economic engagement with Bangladesh, but without India playing a positive role, that’s not going to happen,” Chaudhary said at a press conference organised by the International Chamber of Commerce Bangladesh (ICCB) in Dhaka.

The event, held at Platinum Grand in Banani, marked the launch of his book “Made in Nepal: Lessons in Business Building from the Land of Everest.”

Chaudhary pointed to Nepal’s growing hydropower capacity as a concrete opportunity, saying Nepal could develop projects specifically targeting the Bangladeshi market, with India facilitating transmission.

India’s evolving stance on cross-border energy cooperation, he added, offers a window for such initiatives.

This becomes necessary due to geography. As Nepal is a landlocked country, trade of this nature depends largely on India’s cooperation.

Binod Chaudhary controls Nepal’s CG Corp Global. The businessman made it to the Forbes billionaire list in 2013. As of yesterday, Forbes estimated his net worth to be $2.1 billion.

Also speaking at the event, Abdul Awal Mintoo, minister of environment, forest and climate change, referred to classical economic theory to stress the value of neighbouring markets.

Drawing on the ideas mentioned in The Wealth of Nations, a classic work of economist Adam Smith, he argued that a country’s prosperity depends significantly on its ability to trade with its neighbours.

He cautioned that reliance on natural resources alone can not be a sustainable path to growth, noting that many resource-rich countries had struggled while trade-driven economies had fared better.

The minister also said strengthening economic ties with adjacent countries should take precedence over distant partnerships when it comes to boosting trade and long-term growth.

Political considerations, he added, should not be allowed to override the economic logic of regional integration.

He said enhanced connectivity, energy collaboration, and trade integration among South Asian nations could unlock substantial economic opportunities, provided countries prioritise pragmatic partnerships over political constraints.

Nepalese Ambassador to Bangladesh Ghanshyam Bhandari said the two countries share similar economic challenges and aspirations, making cooperation in trade and investment both natural and necessary.

The longstanding bilateral relationship, he said, is rooted in geographic and economic interdependence, symbolically linked by rivers flowing from the Himalayas to the Bay of Bengal. He identified stronger engagement between the business communities of the two countries as the practical vehicle for expanding bilateral trade.

The ambassador said Nepal and Bangladesh have the opportunity to define their own economic trajectory through closer regional cooperation, with trade acting as the central pillar of that engagement.

Moderating the event, ICCB President Mahbubur Rahman said businesses in the South Asia region had the potential to compete globally if backed by innovation, long-term vision and sound policy.

Entrepreneurship remains a critical driver of economic growth, particularly for emerging economies like Bangladesh and Nepal, he said. He added that cross-border collaboration and private sector engagement will be crucial in building a more competitive, resilient and globally connected economy in South Asia.

Despite facing liquidation, the shares of scam-hit non-bank financial institutions (NBFIs) have surged sharply on the stock exchanges over the past three months.

The five listed NBFIs-FAS Finance, Premier Leasing, Fareast Finance, People's Leasing, and International Leasing-have seen their share prices jump between 238 per cent and 343 per cent during the period, while they have remained largely non-operational for years.

This has happened at a time when many well-performing companies are experiencing price erosion on the back of global geopolitical tensions surrounding the Middle Eastern war.

Market analysts attribute the unusual rally to speculation that the BNP-led government may reconsider or delay the liquidation process.

Earlier, the announcement of the institutions' winding up had sent their stocks plunging below Tk 1 each.

"Speculative trading and short-term profit motives fueled the recent price surge of non-functional NBFIs," said Salim Afzal Shawon, head of research at BRAC EPL Stock Brokerage, in a telephonic conversation with The Financial Express.

He noted that the absence of a clear policy direction from the new government has created optimism among a section of investors, while low share prices have also attracted retail participants.

With share prices reduced to a penny or even less, some investors were inspired to place bets on them to earn quick gains, said Mr Shawon. "Investors in these stocks have taken high-risk bets."

In December last year, the Bangladesh Bank announced the winding up of nine NBFIs-eight of which are listed-marking the first large-scale liquidation in the country's financial sector.

The move aims to protect depositors and restore financial stability, as the institutions have long struggled to repay them due to unsustainable financial conditions stemming from massive irregularities and loan fraud during the previous government.

Although their stocks had long traded far below face value, the central bank's announcement sparked panic, and the shares fell below Tk 1 per share in January this year.

Later, three of the nine firms-Prime Finance, GSP Finance, and Bangladesh Industrial Finance Company (BIFC)-were given six months in January to improve their financial conditions.

Analysts, however, said such low-performing stocks have recently become targets for speculative trading. Manipulators often drive up prices through serial trading and spread rumours to lure general investors.

Md Sajedul Islam, a DSE director, described the rally as "abnormal," blaming price manipulation for the surge in fundamentally weak companies.

"The stock price hike of these junk stocks is unusual considering their current status," said Mr Islam, also managing director of Shyamol Equity Management.

However, he said the government had recently started preparations to compensate small investors of the five banks that merged into Sammilito Islami Bank, which may have drawn investors to put money into these NBFIs in anticipation of getting their money back with profits.

Instructed by the high-ups of the new government, the Financial Institutions Division (FID) is calculating the amount needed to compensate investors who bought shares of the five banks from the stock market.

The mode of payment-whether investors will be compensated based on the prices of shares on the last trading day or at face value-is yet to be finalised.

"The possibility of policy reconsideration by the new government has reignited speculative trading in these stocks," said Mr Islam.

The newly appointed Bangladesh Bank Governor Md Mostakur Rahman, however, said that the initiative to merge the country's weak banks would continue.

But the liquidation process of weak NBFIs under the new governor remains unclear.

Akramul Alam, head of research at Royal Capital, said that given the current financial condition, general investors have little to hope for, as they would be at the bottom of the repayment hierarchy.

In other words, once assets are sold and liabilities are settled, little-or nothing-may remain for ordinary shareholders.

Under liquidation rules, external creditors are paid first, followed by depositors, debenture holders, and preferential shareholders.

"In such insolvency-driven liquidation, shareholders sit at the very bottom of the list of claimants," Alam said.

Collectively, the NBFIs facing liquidation account for 52 per cent of total defaulted loans in the NBFI sector, estimated at Tk 251 billion at the end of 2024.

Except for Prime Finance, all recorded negative net asset values (NAV), ranging from Tk 0.62 to Tk 219.03 per share. This indicates that their liabilities far exceeded their assets, reflecting severe financial distress and poor asset quality.

Shareholders of the NBFIs slated for liquidation may ultimately lose everything unless the government compensates general investors, Mr Alam said.

Ballooning energy cost overruns set budget amid the Gulf crisis as a hefty subsidy worth around Tk 45 billion or US$370 million is sought only to meet LNG-import bills for a single month of April.

Officials say the state-run Petrobangla has placed the subsidy demand with the Ministry of Finance (MoF), as global fuel prices spike and reserves a limited.Energy & Utilities

The April subsidy amount, as sought by the corporation, is more than 50 per cent of the entire subsidy amount worth Tk 89 billion it got from the MoF in the previous fiscal year (FY) 2024-2025.

"We sought the subsidy as we shall be importing eight liquefied natural gas (LNG) cargoes from volatile spot market out of total nine LNG cargoes we have planned to import in April," Petrobangla director for finance AKM Mizanur Rahman told The Financial Express on April 2.

State-run Rupantarita Prakrtik Gas Company Ltd (RPGCL), a subsidiary of Petrobangla, bought seven LNG cargoes from spot market through tenders and another spot cargo scheduled to be delivered in March has been shifted to April, he said.

The RPGCL, a wholly owned subsidiary of Petrobangla and responsible for LNG trading in Bangladesh, palpably runs a rough course for supply disruptions in the wake of the Mideast mayhem triggered by US-Israel attacks on Iran.

Average LNG-import costs of the eight spot LNG cargoes to be delivered in April range up to around US$21 per million British thermal unit (MMBTu). Hadn't the war happened and the Strait of Hormuz not restricted, Bangladesh would import most of the LNG cargoes from long-term suppliers at a cost of around $9.0 per MMBTu to $11 per MMBTu, he said.Stock market education

Bangladesh imported two LNG cargoes from spot market in March after a hiatus of over two months, to tide over LNG-supply uncertainty stemming from the Middle East war, he mentions.

To foot increased bills for the must-have fuel to supplement the supply of domestic natural gas in March, the Ministry of Finance provided Tk 10 billion to Petrobangla.

"If the war doesn't stop and the Strait of Hormuz remains restricted for Bangladesh-bound LNG cargoes, Petrobangla's subsidy requirement to import LNG in the current fiscal year, or FY 2025-2026 (July-June), might go all-time high," says the Petrobangla official.

Petrobangla had previously received state subsidies worth around Tk 25 billion in FY 2019-2020, Tk 35 billion in FY 2020-2021, Tk 34.97 billion in FY 2021-2022, Tk 60 billion in FY 2022-2022, Tk 63.32 billion in FY 2022-2024, and Tk 89 billion in FY 2024-2025 on account of LNG imports, he says.

Bangladesh had trimmed LNG buys from the spot market until February after starting the import under new long-term sales and purchase agreements, or SPAs, from Qatar and the US from January along with previous suppliers, the official elaborates on the fuel-supply lines.

Riding on LNG supplies from new sources, Petrobangla had a plan to buy only a dozen cargoes from spot market in 2026 compared to the import of 49 spot LNG cargoes in 2025.Wealth management services

But halt in delivery from the long-term suppliers and a couple of short-term suppliers of Saudi Arabia and Oman forced Petrobangla to go for LNG purchases from spot market extensively.

Delivery of a total of eight LNG cargoes has so far been affected for Bangladesh due to the 'force majeure' by the long-term LNG suppliers as well as restrictions on the passage of ships through the Strait of Hormuz, he mentions.

Since Bangladesh's LNG imports began in 2018, the country has imported approximately 35.878 million tonnes (mt) of LNG through 579 cargoes as of February 2026, according to RPGCL data.

Bangladesh's overall natural gas supplies currently hover around 2.53 billion cubic feet per day, inclusive of 822 million cubic feet per day of regasified LNG, according to official Petrobangla data as of March 30.

The ongoing Middle East tensions and uncertainty surrounding the country's fuel supply have weighed heavily on the capital market, as weak investor confidence led to a return of downward momentum throughout last week, with broad-based selling pressure across most sectors.

The market remained on a negative trajectory from the very beginning of the week. The index declined in each of the first three trading sessions, further heightening investor concerns. Midweek, some investors engaged in bargain hunting, resulting in a temporary positive movement in the index.

However, the recovery was short-lived, as momentum quickly faded in the absence of strong positive news or policy support.

By the end of the week, the benchmark DSEX shed 149 points to close at 5,220. The blue-chip DS30 decreased by 86 points to 1,980, while the Shariah-based DSES dropped 20 points to 1,060. The DSE SME Index (DSMEX) rose by 134 points to close at 1,065.

Despite this gloomy week, average turnover increased by 25.78% to Tk668 crore, compared to Tk531 crore in the previous week. Total weekly turnover rose to Tk3,342 crore, up from Tk2,657 crore a week earlier. Market capitalisation decreased by 2.48%, reaching Tk689,399.86 crore, down from Tk706,912.58 crore the previous week.

Of the 412 issues traded at DSE, 172 advanced, 206 declined, 12 remained unchanged, and 22 were not traded.

According to market analysts, global instability and fears of a potential energy crisis are influencing investment decisions. Additionally, comments from the government about restructuring the stock market have prompted a segment of investors to stay on the sidelines.

Meanwhile, remarks by the Bangladesh Bank governor regarding non-bank financial institutions (NBFIs) created fresh volatility in shares of some companies in the sector.

Governor Md Mostakim Rahman recently said the finance ministry would provide the required funds to complete the liquidation process. The statement reinforced expectations that the authorities are moving decisively to wind down several financially weak NBFIs.

Taken together, investors are currently in a wait-and-see mode. Analysts are not optimistic about near-term stability unless there is an improvement in fuel supply, easing of global tensions, or clear policy direction from the government regarding the stock market.

The prolonged decline has also increased frustration among retail investors, many of whom are calling for swift and effective measures to restore confidence in the market.

In its weekly market review, EBL Securities said the capital bourse reverted to its losing streak this week, with investor sentiment weighed down by the ongoing Middle East crisis and prevailing uncertainties over domestic fuel shortages, prompting broad-based sell-offs across the trading board.

The index lost points during the first three sessions of the week, and although a brief bout of bargain hunting provided a temporary rebound, momentum quickly faded in the absence of any decisive positive catalyst.

Investors were primarily active in the pharmaceutical sector, which accounted for 16.6% of total turnover, followed by the engineering sector at 12.4% and the textile sector at 9.8%.

However, most sectors posted negative returns. The travel sector recorded the largest loss at 3.9%, followed by financial institutions at 3.6% and the cement sector at 3.3%, making them the worst-performing sectors of the week.

Political uncertainty and liquidity stress have emerged as the biggest challenges facing Bangladesh's capital market in 2026, according to a comprehensive sentiment survey conducted by LankaBangla Securities, highlighting a cautious yet hopeful outlook among investors and market participants.

The survey was conducted from 1 January 2026 to 25 February 2026, with 101 respondents from diverse backgrounds participating.

The survey found that nearly 40% of respondents identified political instability as the most pressing concern for the year ahead, while liquidity crunch ranked as the second major challenge, cited by 22.8% of participants.
Concerns over weak corporate governance, declining foreign participation, and a lack of innovative financial products also featured prominently, though to a lesser extent.

Despite these concerns, the survey suggests that market participants are not entirely pessimistic. A significant portion of respondents acknowledged the effectiveness of regulatory policies in 2025, with 45.5% rating them as effective and nearly 10% considering them highly effective.

However, a sizeable group remained critical, indicating that confidence in regulatory oversight is still evolving.

The policy, regulatory, and tax environment was identified as the most influential factor shaping the market in 2025, followed closely by financial sector health and liquidity conditions. This underscores the central role of policy direction and macroeconomic stability in determining market performance, particularly in a period marked by global uncertainty and domestic economic pressures.
Political developments continue to dominate expectations for the future. More than half of the respondents believe political stability will be the single most important driver of market performance in 2026.

Foreign investor participation remains a key concern, with political risks identified as the primary deterrent. Weak governance in listed companies and fears of currency depreciation were also cited as significant barriers, indicating that structural reforms are needed to attract international capital.

In terms of market outlook, investors appear moderately optimistic. Most respondents expect the benchmark index to close between 5,500 and 6,500 by the end of 2026, while daily turnover is projected to remain within a modest range, suggesting a gradual recovery rather than a sharp rebound.

The banking sector is expected to lead market growth, followed by pharmaceuticals and insurance, the survey finds.

Investment strategies are also shifting, with more than half of participants favouring medium-term investments, reflecting a balanced approach amid ongoing volatility. Equities are expected to outperform other asset classes, though gold remains a strong alternative for risk-averse investors.

The survey also highlights persistent structural challenges, particularly in the bond market, where nearly half of the respondents expressed dissatisfaction with its development. At the same time, most participants emphasised the need to eliminate double taxation on dividends and reduce capital gains taxes to stimulate investment.

Encouragingly, over 60% of respondents believe that the integrity of Bangladesh's financial markets will improve in 2026, although concerns over fraud, manipulation, and weak enforcement remain significant. Calls for enhanced transparency, stricter regulatory enforcement, and better corporate governance practices were identified as critical to restoring trust.

Indian refiners have purchased Iranian oil amid the middle east conflict that has disrupted supplies through ‌the Strait of Hormuz, the oil ministry said yesterday (4 April).

The world's third-biggest oil importer and consumer, India has not ​received a cargo from Tehran since May ​2019, following US pressure not to buy Iranian ⁠crude, but supply disruptions from the US-Israel war have ​hit the South Asian nation hard.

"Amid Middle East ​supply disruptions, Indian refiners have secured their crude oil requirements, including from Iran; and there is no payment hurdle for ​Iranian crude imports," the oil ministry said on ​X.

Last month, the United States temporarily removed sanctions on Iranian oil ‌and ⁠refined products to ease supply shortages.

India has secured its full requirements of crude oil for the coming months, the ministry added.

"India imports crude oil from ​40-plus countries, ​with companies ⁠having full flexibility to source oil from different sources and geographies based on ​commercial considerations."

India has also bought 44,000 metric ​tons ⁠of Iranian liquefied petroleum gas loaded on a sanctioned vessel. The ministry said the vessel, which berthed at ⁠the ​western port of Mangalore on ​Wednesday, is discharging the fuel.

The National Board of Revenue (NBR) is planning to raise the exemption limit for excise duty on annual bank deposits to Tk5 lakh from the existing Tk3 lakh, a move aimed at easing the tax burden on small depositors.

Currently, deposits between Tk3 lakh and Tk5 lakh are subject to a nominal excise duty of Tk150.

According to Bangladesh Bank data, approximately 40 lakh account holders maintain deposits in the Tk3-5 lakh range. If the exemption is implemented, these depositors would benefit from the new relief, though the government could face a revenue shortfall of around Tk200 crore, NBR sources said.

Experts argue that imposing excise duty on bank deposits is unjustified. Interest earned on deposits is already subject to income tax, and banks levy VAT on service charges, raising questions about the rationale for an additional excise duty.

During pre-budget discussions last Wednesday, NBR Chairman Abdur Rahman Khan confirmed plans to propose excise duty relief for bank deposits but did not provide further details.

Speaking to The Business Standard, he said, "We intend to provide relief on excise duty. However, no final decision has been made yet."

NBR officials reportedly discussed the proposal with the finance minister last week, and if the government approves, it could be presented in the budget slated for June.

A senior NBR officer, speaking on condition of anonymity, explained that deposits up to Tk3 lakh are already exempt and that the plan is to extend the benefit to deposits up to Tk5 lakh.

The officer added, "If implemented, the measure would result in a potential revenue reduction of around Tk200 crore. Our long-term plan is to gradually phase out excise duty on bank deposits altogether."

Md Luftor Rahman, a former NBR member of the Customs Policy wing, criticised the excise duty, calling it unnecessary. "Interest on the same accounts is taxed under income tax, and banks collect VAT on service charges. Collecting excise duty in addition makes little sense," he said.

Syed Mahbubur Rahman, managing director and CEO of Mutual Trust Bank, said that excise duty is collected for convenience, as banks remit it on behalf of the NBR. He argued that the levy leads to duplication since the same amount can be subject to excise multiple times throughout the year and discourages low-income earners from keeping deposits in banks.

Current excise duty structure

The government has set a target to collect approximately Tk2,000 crore from excise duties this year. Under the prevailing rules, the duty is calculated based on the highest balance reached in an account at any time during the year.

Currently, bank deposits up to Tk3 lakh are exempt from excise duty. Deposits between Tk3,01,000 and Tk5 lakh are subject to a duty of Tk150, while those from Tk5,01,000 to Tk10 lakh incur Tk500.

Deposits ranging from Tk10,01,000 to Tk50 lakh are charged Tk3,000, and those between Tk50,01,000 and Tk1 crore carry Tk5,000. For deposits from Tk1,01,00,000 to Tk2 crore, the duty is Tk10,000, and for deposits between Tk2,01,00,000 and Tk5 crore, it rises to Tk20,000. Any deposit above Tk5 crore is liable for an excise duty of Tk50,000.

The Bangladesh Bank has started allowing a gradual depreciation of the taka against the US dollar to manage pressure from rising global energy prices, with analysts indicating there is further room for the currency to weaken.

The exchange rate has already started to depreciate gradually since 8 March, as the dollar rose close to Tk123 after remaining stable at Tk122.30 for months.

Real Effective Exchange Rate (REER), measured based on 17 currencies and incorporating both inflation and exchange rate data of major trade partners, stood at Tk126 on 29 March, indicating that the central bank has room to devalue the taka by Tk3.24 to remain export competitive.

Moreover, the exchange rate band prepared daily by the central bank, based on currency movements of trading partners, shows an upper band of Tk130 and a lower band of Tk125. The upper band suggests that the Bangladesh Bank can still allow a 5.6% depreciation until the dollar reaches Tk130.

The exchange rate band, prepared following a formula recommended by the IMF, also suggests that the current exchange rate is below the lower band.

The band was introduced in December 2024 when the Bangladesh Bank implemented greater exchange rate flexibility in line with a staff-level agreement with the IMF. This band is not publicly disclosed and is used internally to monitor the foreign exchange market.

Under the IMF formula, the Bangladesh Bank is supposed to buy dollars when the exchange rate falls below the lower band and sell dollars when it exceeds the upper band.

However, the central bank stopped buying dollars through auctions in March due to the global oil price shock, while still allowing a slower-than-expected depreciation through price guidance.

It will also refrain from selling dollars from reserves unless the exchange rate exceeds the upper band, according to a senior central bank executive.

The Dhaka Stock Exchange (DSE) has announced a reduction in its daily trading hours by 30 minutes in response to the ongoing fuel crisis, aligning its operational schedule with a government directive aimed at conserving energy.

In a notice issued today (4 April), the premier bourse said the revised trading and office hours will come into effect from today and will remain in force until further notice. The move reflects broader efforts by authorities to manage energy consumption amid concerns over fuel supply constraints and rising global energy prices.

Under the new schedule, DSE office hours will run from 9:00am to 4:00pm. The trading session will now begin at 10:00am and continue until 2:00pm, shortened from the previous closing time at 2:30 pm. The continuous trading session will take place between 10:00am and 1:55pm, followed by a five-minute post-closing session from 1:55pm to 2:00pm.

The decision comes at a time when the country is grappling with energy-related challenges, prompting the government to adopt a series of measures to optimise fuel usage across sectors. Financial markets, like other institutions, are being brought under these measures to ensure coordinated efforts in addressing the crisis.

Officials at the DSE said the adjustment is part of a compliance effort and aims to support national initiatives without disrupting market operations significantly. They added that the revised schedule has been carefully structured to maintain an efficient trading environment while contributing to energy-saving goals.

Investors and brokerage houses have been advised to take note of the new timings and plan their activities accordingly. The DSE also assured stakeholders that any further changes to the schedule would be communicated promptly, depending on the evolving situation.

Remittance hit $3.75 billion in March, the highest on record, giving a respite amid deepening worries over the ripple effect on Bangladesh’s struggling economy due to the US-Israel war on Iran.

The inflow in March was 14 percent higher than $3.29 billion in March 2025 as Bangladeshis working abroad sent increased amounts to their loved ones ahead of the Eid-ul-Fitr festival on March 21.

Overall remittance, which acts as a major source for Bangladesh to clear its external payments, rose 20 percent to $26.20 billion in the July-March period compared to a year ago, according to Bangladesh Bank (BB) data released yesterday.

The surge comes against the backdrop of heightening concern over the possible impact of the war on remittances in the coming months as the conflict spreads across the Gulf -- key employment destinations for Bangladeshi migrant workers.

Nearly 800 Middle East-bound flights from Bangladesh have been cancelled since the war with Iran on February 28, mostly affecting migrant workers.

Last week, the Asian Development Bank (ADB), in a report, said Bangladesh and other South Asian countries could face lower remittances from the Middle East as the ongoing conflict in the region weakens labour demand and squeezes migrant worker incomes.

Nearly half of Bangladesh’s more than $30 billion in annual remittances comes from the Middle East. Saudi Arabia, Oman, Qatar, the UAE, and Kuwait together accounted for 86 percent of Bangladeshi migrant workers who secured jobs abroad in FY25, according to the Bangladesh Economic Review 2025.

Bankers and analysts said the spike in the inflow was largely because of the Eid festival, political stability and an increased rate of the US dollar following a slight depreciation of the taka.

Md Shaheen Iqbal, additional managing director & head of wholesale banking at BRAC Bank, said another factor is that migrants try to send home more during any crisis period. “We have seen this trend during the initial days of the Russia-Ukraine war. A similar thing may happen this time.”

He said the inflow may fall this month but recover in the next month ahead of Eid-ul-Azha. However, the remittance inflows in the later months will depend on the war, he said.

Deen Islam, professor of economics at Dhaka University, said the recent surge in remittance inflows provides meaningful short-term relief to Bangladesh’s external sector, but its sustainability remains uncertain in the current global context.

“Much of Bangladesh’s remittance originates from migrant workers in Gulf Cooperation Council (GCC) economies, making flows sensitive to oil price cycles, fiscal conditions in host countries, and evolving labour nationalisation policies,” he said.

“Additionally, tighter immigration regimes in advanced economies and global economic slowdown risks could constrain future migration and earnings growth.”

During the July-February period of the fiscal year 2025-26, over 10 lakh migrant workers left for jobs abroad, up 15 percent YoY, according to official data.

Birupaksha Paul, a professor of economics at the State University of New York, USA, said imports may increase following the return of political stability in the country after the election.

“There is a concern that pressure is likely to build on Bangladesh’s foreign exchange reserves to pay higher import bills,” he said. “Foreign exchange reserves will not increase in that case.”

In this context, he said, the foreign exchange rate should be re-evaluated. “Some people doubt that it is not yet fully market-based and not reflecting the market price,” he said, adding that any depreciation will fuel import-induced inflation.

“But reserve management is a crucial thing,” said Paul, former chief economist at the BB.

Prof Islam said while the increase in remittance strengthens the balance of payments, supports exchange rate stability, and boosts domestic consumption, it also reinforces a structural dependence on external labour income rather than productivity-driven export growth.

“Therefore, although remittances will likely remain a vital pillar of macroeconomic stability in the near term, their long-run sustainability and developmental impact depend on diversification of migration destinations, skill upgrading of workers, and complementary policies to channel inflows into productive investment rather than predominantly consumption.”

Bangladesh’s first large-scale venture capital firm, an investment management company supported by 39 banks, will begin operations next month to address the long-standing funding gap for local startups.

Named Bangladesh Startup Investment Company (BSIC), the firm has raised nearly Tk 600 crore in initial capital. It plans to begin operations on April 30 and invest in at least three startups by June 30.

Guided by the Bangladesh Bank (BB), the BSIC will provide equity financing, strategic support, and opportunities for international co-investment to help promising startups scale, officials said.

“BSIC will serve as a full-service institution for young entrepreneurs,” BSIC Chairman Mashrur Arefin, and managing director of City Bank Plc, told The Daily Star.

“It will provide not only funding but also ongoing monitoring and strategic guidance to help businesses grow. We know 90-95 percent of startups fail, but if even a few succeed and one or two reach global markets, that will be a significant achievement. Such successful firms will also generate many new jobs,” he added.

The country’s startup growth, strong a decade ago, has slowed over the past two to three years due to tighter global venture capital flows and cautious investors.

Early successes like Pathao and Chaldal attracted foreign funding, but limited profitable exits, regulatory hurdles, low internet penetration, shifting capital to AI, weak local AI startups, macroeconomic pressures, and political uncertainty have all dampened investor confidence.

BSIC will invest only after a startup demonstrates market demand, has a basic operational setup, and shows growth potential, rather than funding ideas at the concept stage.

Officials said the company will initially focus on ventures in health, agriculture, education, transport, retail, and logistics, offering funding in exchange for equity stakes.

If the selected startups perform well, BSIC will also bring in foreign venture capital to co-invest, helping local entrepreneurs scale and access global technology and expertise.

Between 2027 and 2028, BSIC plans to invest in 8 to 12 startups, and from 2029 onward, it aims to exit successful ventures through stock market listings or direct stake sales.

Arefin, also chairman of the Association of Bankers, Bangladesh, said that although the process began under the interim government, new BB Governor Md Mostaqur Rahman has actively overseen its progress. “The governor asked us to focus on developing the rural economy. We will give that high priority,” he added.

The long-term goal, Arefin said, is to build globally competitive startups in Bangladesh that could one day rival Uber, Instagram, Facebook, Spotify, or Airbnb, creating large-scale employment.

Local startups such as 10 Minute School and Shikho have already demonstrated how technology can expand access to education, while digital health ventures could similarly benefit rural communities, he added.

EQUITY-BASED SUPPORT AND BANK CONTRIBUTIONS

Arefin highlighted that the fund will grow each year as participating banks contribute from annual profits. “Unlike loans, the support will be equity-based, meaning BSIC will take ownership stakes in startups instead of charging interest,” he said.

Under a BB directive, participating banks are contributing 1 percent of their profits earned between 2020 and 2024 to build the fund.

Bankers said this reflects an understanding that startups need risk capital rather than traditional loans, which commercial banks are not designed to provide.

According to BSIC sources, BRAC Bank holds the largest share at 7.71 percent, followed by City Bank at 6.74 percent, Dutch-Bangla Bank at 6.67 percent, Pubali Bank at 6.5 percent, Sonali Bank at 5.73 percent, Eastern Bank at 5.58 percent, and Prime Bank at 4.98 percent.

Going forward, banks will contribute around Tk 200 crore annually from new profits, allowing the fund to expand and support more startups.

BSIC’s nine-member board includes managing directors from City Bank, Prime Bank, Mutual Trust Bank, Sonali Bank, and Pubali Bank, along with four independent directors, with Light Castle Partners as strategic consultant.

Nazeem A Choudhury, additional managing director of Prime Bank, is interim chief executive officer (CEO) while BSIC searches for a professional with multinational startup investment experience to appoint a permanent CEO and head of investment by May.

BSIC was registered with the Registrar of Joint Stock Companies and Firms on December 7 last year.

In a comprehensive move to reinvigorate the country's sluggish capital market, key stakeholders have proposed a series of ambitious reforms ahead of the 2026-27 national budget, including mandatory listing for large corporations and sweeping tax adjustments.

The proposals, placed during a pre-budget discussion at the National Board of Revenue (NBR) headquarters today (1 April), aim to boost investor confidence, attract foreign participation and deepen market liquidity.

Representatives from the Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE), DSE Brokers Association (DBA), Central Depository Bangladesh Limited (CDBL), and the merchant bankers' association presented a unified set of recommendations. The session was chaired by NBR Chairman Abdur Rahman Khan, alongside senior tax officials.

Market intermediaries stressed that the capital market must be treated as a central driver of economic growth rather than a peripheral sector.

Saiful Islam, president of the DSE Brokers Association, said the proposals are aligned with global standards and designed to create a more competitive and inclusive investment environment.
Infographic: TBS
Infographic: TBS

He emphasised that the current economic climate requires the government to treat the capital market as a primary engine for growth rather than a secondary thought.

A major focus of the recommendations is tax reform. The DSE proposed that tax deducted at source on interest income from listed bonds be treated as a final tax liability, simplifying compliance for investors. To further develop the bond market, it suggested a five-year tax exemption on interest income from Treasury bills, Sukuk, asset-backed bonds, and green bonds.

Stakeholders argue that a stronger bond market would reduce the government's reliance on bank borrowing and lower overall financing costs.

To address persistently low foreign participation, currently below 2%, the DSE recommended a five-year exemption on capital gains tax for non-resident investors. Market leaders believe such incentives could attract foreign portfolio investment, strengthen foreign currency reserves, and increase market activity.

The exchange also proposed a five-year tax holiday for companies listed on the SME board, including startups and greenfield ventures, to encourage smaller firms to raise funds from the capital market instead of relying on high-interest bank loans.

For individual investors, the DSE suggested reducing the capital gains tax rate from 15% to 5% on gains exceeding Tk50 lakh, while keeping gains below that threshold tax-free. According to the exchange, high tax rates have discouraged participation from high-net-worth individuals, contributing to declining turnover.

DSE Chairman Mominul Islam said, "We are now in the frontier market; from there, we want to go to the 'emerging market.' The number of investors in the capital market is now 16 lakh; we want to increase it to 50 lakh. We want to increase the daily transaction from Tk500 crore to Tk5,000 crore. As a result, the government's revenue will increase at least 10 times what comes from the capital market."

Stressing the need for cooperation for this transformation, he said they do not want anything that will reduce the government's revenue, but rather want restructuring.

One of the most significant proposals came from the DSE Brokers Association, which introduced a "Deemed-to-Be Listed Company" framework. Under this concept, companies meeting specific thresholds—such as Tk500 crore in paid-up capital, Tk1,000 crore in annual turnover, or Tk500 crore in bank loans—would be required to list on the stock market after a grace period of 15 to 20 years.

The DBA argued that many large corporations benefit from substantial state incentives without offering public ownership opportunities. Mandatory listing, they said, would enhance transparency and broaden investment access.

The association also called for action against inactive or "shell" companies. It proposed that firms failing to hold annual general meetings or declare dividends for three consecutive years should lose tax benefits and be taxed as non-listed entities. This, they believe, would improve accountability and remove underperforming companies from the market.

Additionally, the DBA reiterated its demand to eliminate double taxation on dividend income, noting that the current effective tax rate for individuals exceeds 40%, discouraging long-term investment.

In the credit market, the association proposed allowing listed bonds to be used as collateral for large bank loans, particularly those exceeding Tk500 crore with maturities of more than three years. This measure is expected to promote capital market-based financing.

Meanwhile, CDBL recommended increasing the minimum public shareholding requirement from 10% to 20% for companies seeking tax benefits. A higher public float, it said, would improve price discovery and reduce the risk of manipulation in thinly traded stocks.

The Chittagong Stock Exchange, for its part, emphasised the need for modern market infrastructure. It sought policy support and tax incentives for launching Bangladesh's first commodity exchange and derivatives trading platform. It also requested tax exemptions on specialised software imports required to establish these systems.

Approximately US$234 billion was illicitly transferred out of Bangladesh during 2009-2023, Prime Minister Tarique Rahman told parliament Wednesday on a question about money laundering during the Awami League rule.Bangladesh economic report

He quoted from the findings laid down by the White Paper Preparation Committee formed during the interim government's period.

Thus, an average of $16 billion (about Tk 1.8 trillion) siphoned off the country every year.

The Prime Minister, who became Member of Parliament for the first time, mentioned the data while responding to the question put up during his maiden PM's question hour in the 13th Jatiya Sangsad (JS).

The prime minister said his government is giving the highest priority to recovering assets smuggled abroad as a key part of its "broader strategy to combat corruption, money laundering, and financial crimes".

According to the head of government, legal proceedings are ongoing to recover laundered money in 11 cases identified and prioritised by an inter-agency taskforce. These cases involve 11 individuals and organisations, including family members and related entities linked to former prime minister Sheikh Hasina.

Those named include Sheikh Hasina, former land minister Saifuzzaman Chowdhury, S Alam Group, Beximco Group, Sikder Group, Bashundhara Group, Nassa Group, Orion Group, Nabil Group, HBM Iqbal, and Summit Group, along with their associated family members and affiliated entities.

Responding to a question from ruling-party MP Md Abul Kalam, the prime minister added that the government's election manifesto emphasised publishing a comprehensive white paper on corruption and money laundering during the previous "fascist Awami League era" and taking legal action against those identified.

Since the laundered funds are alleged to have been transferred to multiple countries, the government is strengthening information exchange, asset identification, and mutual legal assistance with relevant countries. To this end, it is working closely with the Ministry of Foreign Affairs and other agencies to conclude Mutual Legal Assistance Treaties (MLATs).

The prime minister mentioned 10 countries initially identified as major destinations for illicit funds: the, United States, the United Kingdom, Canada, Switzerland, Australia, Thailand, the United Arab Emirates, Singapore, Malaysia, and Hong Kong. Among them, Malaysia, Hong Kong and the UAE have agreed to sign such agreements, while discussions with the remaining seven countries are ongoing.

He also presented updates on the 11 priority cases, noting that 11 joint investigation teams have been formed under the leadership of the Anti-Corruption Commission, with participation from the Criminal Investigation Department (CID), the National Board of Revenue's Central Intelligence Cell, and the Customs Intelligence and Investigation Directorate.

Tarique Rahman said as of 25 March 2026, courts had frozen assets worth Tk 704.46 billion, including Tk 571.68 billion domestically and Tk 132.78 billion abroad. A total of 141 cases have been filed, 15 of which have seen charge sheets submitted, and six cases have reached verdicts.

In response to a supplementary question from Jamaat-e-Islami MP Mujibur Rahman about repatriation of the laundered money, the prime minister said the current government being an elected one is committed to upholding the rule of law. He criticised past practices where individuals were allegedly coerced or forced into compliance.

He emphasised that the government would proceed strictly through legal means to ensure justice for all. "The law will take its own course," he said, adding that those who laundered public money would be punished under existing laws.

Responding to another question, he said: "In simple terms, this is people's money. Since we are elected by the people, we are accountable to them and to the country. Naturally, recovering this money and spending it for the benefit of the people is one of the government's key responsibilities."

To a question from NCP MP Akhtar Hossain regarding the financial impact of social-support schemes such as family card and farmer card, the prime minister said the budget allocation would be disclosed gradually and the programme would be implemented in phases, with the number of beneficiaries increasing on monthly basis.Wealth management services

He made it clear that the assistance is not being financed by printing money so it would not trigger inflation. Instead, the funds would be spent within the local economy, boosting economic activity, employment, and living standards for marginalised groups.

Regarding the family-card recipe, in response to a question from ruling-party MP ABM Mosharraf Hossain, the prime minister said it was launched on 10 March in 15 wards across select districts and corporations. Initially, 37,814 women-led households have received benefits, with an additional 30,000 families to be included within the current fiscal year. The annuity programme aims to cover 40 million families over the next four years.

He said issuing the card in the name of the female head of the household would ensure that support is spent on food, nutrition, healthcare, and education, while also increasing women's control over family resources and strengthening their role and dignity in decision-making within the family and society.

The Association of Bankers Bangladesh Limited (ABB) has proposed a series of tax relief measures and policy reforms, including removing the investment cap on government securities for individuals and exempting capital gains from treasury bills and bonds.

In its pre-budget recommendations for the 2026-27 fiscal year, the association presented a 14-point proposal to the National Board of Revenue (NBR) during a meeting in Dhaka today (1 April).

The pre-budget discussion was attended by NBR Chairman Md Abdur Rahman Khan and senior officials of the revenue authority.

ABB Chairman and Managing Director of City Bank Mashrur Arefin urged authorities to introduce measures aimed at strengthening the financial sector and encouraging investment.

Among its key proposals, the ABB called for the withdrawal of the existing Tk5,00,000 ceiling on individual investment in government securities for tax rebate purposes, arguing that the restriction limits investors from fully utilising available tax benefits and discourages participation in a traditionally safe investment segment.

The association noted that instruments such as treasury bills, bonds, savings certificates, debt securities and Shariah-based sukuk remain highly attractive to investors, but the cap has reduced incentives, adversely affecting government cash flow.

The ABB also proposed that capital gains earned from treasury bills and bonds be made tax-free, instead of being taxed at the current rate of 15%. It argued that such a move would help develop a vibrant bond market and attract foreign investors, thereby supporting foreign exchange reserves.

In addition, the bankers' body recommended recognising provisions against non-performing loans as allowable expenses for tax purposes, reducing corporate tax rates to 30% or below, and removing limits on corporate social responsibility (CSR) expenditure.

Under current rules, CSR spending is capped at 10% of total income or Tk8 crore, whichever is lower, with only 10% tax rebate. The ABB suggested treating such expenditure as fully tax-deductible and lifting the ceiling altogether, stating that increased CSR spending would contribute to broader socio-economic development, including in education, healthcare, disaster management and environmental protection.

The association further called for the withdrawal of the requirement to submit proof of submission of income tax return for accessing banking services such as loans and fixed deposits, and reinstating the previous system of electronic Taxpayer Identification Number (e-TIN) submission.

At present, individuals without taxable income must submit proof of submission of income tax return to obtain loans exceeding Tk20 lakh or to open and maintain fixed deposits above Tk10 lakh.

The ABB argued that this requirement has negatively affected retail and CMSME (cottage, micro, small and medium enterprise) clients, pushing many towards informal lenders due to fewer documentation requirements.

It warned that such a trend could drive CMSMEs outside the tax net, whereas facilitating easier access to formal banking could boost future tax revenues, including income tax, VAT and excise duties, while also generating employment.

'Super tax' on stock dividends

The ABB also sought the withdrawal of the 10% "super tax" on stock dividends and retained earnings transfers by listed companies. Currently, companies face additional tax if stock dividends exceed cash dividends or if retained earnings transferred exceed 70% of post-tax net income.

The association argued that such taxes hinder banks' ability to strengthen their capital base, noting that scheduled banks are required to maintain a minimum capital adequacy ratio of 12.5% of risk-weighted assets.

The ABB also urged the NBR to allow provisions against classified and unclassified loans to be treated as tax-deductible expenses, recalling that such provisions were recognised as allowable expenses under earlier tax regulations before the 2006-07 fiscal year.

The Annual Development Programme (ADP) implementation rate in February, while remaining at a low level, has almost doubled compared to the last fiscal when the interim government led by Professor Muhammad Yunus was in power.

According to the latest progress report released by the Implementation Monitoring and Evaluation Division (IMED) under the Ministry of Planning, in February Tk 12771.23 crore has been disbursed which is 6.11 percent of the total amount while it was only Tk 7676.33 crore in the last year that represented 3.39 percent only.

It also stated that the pace of spending and execution has slightly improved for the first eight months of the running 2025-26 fiscal than the previous year.

The implementation progress during the July–February period showed spending reached Tk 63,327.53, representing 30.31 percent of the annual allocation. During the same period of FY2024–25, implementation stood at Tk 67,553.21 crore or 29.87 percent.

In FY2023–24, the implementation rate for the July–February period was 33.65 percent with expenditure amounting to Tk 85,602.59 crore. The rate was 34.74 percent in FY2022–23 with spending of Tk 823,169.96 crore, while FY2021–22 recorded 38.60 percent implementation, with Tk 84,765.07 crore spent.

However, for the current fiscal year 2025–26, the total ADP allocation stands at Tk 208935.53 crore. In comparison, allocations in recent years were Tk 226166.88 crore in 2024–25, Tk 254391.64 crore in 2023–24, Tk 236560.67 crore in 2022–23 and Tk 219601.91 crore in 2021–22.

Officials said the current year’s rate of implementation indicates a continued slowdown in project execution.

The persistent slowdown has been attributed to multiple factors, including administrative adjustments, cautious expenditure management and slower approval processes during the interim administration period.

Project officials have also pointed to delays in procurement, land acquisition and fund release as key reasons behind the lower execution rate.

As per the economists, the ADP plays a critical role in driving economic activity, employment and infrastructure development.Economic forecast publication

A sustained slowdown in implementation may affect overall growth momentum, especially in sectors reliant on public investment.

Despite the lower execution rate, planning ministry officials expressed hope that spending would accelerate in the remaining months of the fiscal year as ministries and agencies traditionally speed up project implementation towards the end of the budget cycle.

The ADP is the government’s primary development budget, financing major infrastructure, social sector and regional development projects.

A higher implementation rate is generally seen as a sign of strong administrative capacity and efficient project management, while slower spending often signals bottlenecks in execution.

With less than half the fiscal year remaining, the pace of implementation in the coming months will be crucial in determining whether the government can narrow the gap with previous years or whether FY2025–26 will end with the lowest execution rate in recent times.

BRAC Bank PLC has decided to surrender its trustee registration for mutual funds to comply with updated regulations, a move that could have wider implications for the country's struggling fund management industry.

The bank, acting in its capacity as a trustee, has submitted an application to Bangladesh Securities and Exchange Commission seeking formal approval for the surrender, according to officials.

Shaheen Iqbal, additional managing director and head of Wholesale Banking at the bank, confirmed the development, saying a public notice has already been published to inform stakeholders of the decision to surrender the trustee licence.

Under the latest mutual fund regulations, banks are no longer allowed to act as both custodian and trustee for the same fund. BRAC Bank, which has primarily operated as a custodian and never served as a trustee, said it will continue focusing on that role to remain fully compliant with regulatory directives.

Market data shows several institutions—including Eastern Bank PLC, Agrani Bank, Investment Corporation of Bangladesh and Grameen Bank—currently act as trustees for mutual funds in Bangladesh.

Industry insiders have expressed concern over the move, noting that BRAC Bank's exit from the trustee segment could weaken confidence, given its reputation for strong governance and transparency.

They argue that the withdrawal of a credible institution from the trustee segment could further dent confidence in an industry already grappling with longstanding challenges.

The mutual fund sector has been under pressure in recent years due to allegations of malpractice and fund mismanagement, eroding investor trust and dragging down asset values.

Currently, Bangladesh has 38 closed-end and 90 open-end mutual funds in operation. The total asset base of closed-end funds stands at around Tk4,650 crore, while open-end funds account for Tk4,978 crore. Combined, the sector's value fell to Tk9,628 crore in FY2024–25, down from Tk10,729 crore a year earlier.

The Cabinet Committee on Government Purchase (CCGP) yesterday approved the import of another 2.6 lakh tonnes of fuel oil, as the government moves to safeguard national energy reserves against the backdrop of the US-Israel war on Iran.

The committee authorised the direct purchase of 1 lakh tonnes of crude oil from Abeer Trade & Global Markets. The government opted for a direct procurement route, bypassing the standard competitive tender process, citing urgent domestic energy requirements amid the continuing US-Israel war on Iran.

The conflict has introduced significant uncertainty into global oil shipping corridors, particularly through the Strait of Hormuz, through which a substantial share of Asia-bound crude transits.

To mitigate supply chain risks, the government is also diversifying fuel imports as traditional shipping routes face disruption and fears of nationwide shortages grow amid escalating geopolitical tensions in the Middle East.

The CCGP yesterday approved the import of one lakh tonnes of EN590-10 PPM ultra-low sulphur diesel from ExxonMobil Kazakhstan Inc (EMKI) via direct purchase.

A further 60,000 tonnes of 0.5 percent sulphur gasoil (diesel) will be imported from Indonesia’s state-linked PT Bumi Siak Pusako Zapin (BSP Zapin) under a government-to-government (G2G) framework.

Earlier on March 26, the government authorised the emergency purchase of 3 lakh tonnes of diesel following two proposals from the Energy and Mineral Resources Division.

Before that, on March 22, the government wrote to the United States, requesting permission to import up to 6 lakh tonnes of refined fuel from Russia or, alternatively, to obtain a waiver for at least two months, according to the Ministry of Power, Energy and Mineral Resources.

Since the war started, Bangladesh has also received some 17,000 tonnes of diesel from India under an existing arrangement. Two additional shipments, each estimated at around 6,000 tonnes, are expected from Indonesia.

For the agriculture sector, the CCGP yesterday approved the import of 35,000 tonnes of MOP fertiliser from Russia’s JSC Foreign Economic Corporation (Prodintorg).

The procurement, to be implemented by the Bangladesh Agricultural Development Corporation (BADC), is valued at Tk 154.89 crore, with each tonne priced at $360.53.

While 10 proposals were placed before the committee, several, including the procurement of pulses and telecom equipment for the Rooppur Nuclear Power Plant, were withdrawn.

British American Tobacco (BAT) Bangladesh, a listed multinational company, has incurred Tk714.58 crore in restructuring and relocation costs, with the largest portion – Tk375 crore –stemming from fixed asset impairment, according to its auditor.

In an emphasis of matter in the audited financial statements for 2025, the auditor noted that these developments indicate significant operational changes during the year.

In June last year, BAT Bangladesh decided to shut down operations at its Dhaka factory after the Supreme Court rejected its appeal to extend the land lease agreement. The company also relocated its head office from Mohakhali DOHS to Ashulia in Savar.

Following the decision, the company approved an investment of approximately Tk297 crore to expand production capacity at its Savar facility.

In a disclosure accompanying its 2025 annual dividend announcement, BAT Bangladesh said that operations at the Dhaka factory were shut down in July 2025, and plant, machinery, and cigarette manufacturing equipment were transferred to its Savar factory.

The company said the forced site closure, relocation, and restructuring had a one-off impact of around Tk715 crore on operating profit compared to the previous year.

According to company data, BAT Bangladesh reported a loss of Tk136 crore in the October-December quarter of 2025, reflecting a sharp deterioration in earnings amid declining cigarette sales and rising operating costs.

For the full year, earnings per share (EPS) stood at Tk10.81, marking a 67% decline year-on-year.

The sharp drop in profitability prompted the board to recommend a 30% cash dividend for 2025, significantly lower than the 300% cash dividend declared in 2024.