Foreign aid disbursement to Bangladesh fell by 26 percent year-on-year during the July-February period of the current 2025-26 fiscal year, according to the Economic Relations Division (ERD).

Development partners and international lending agencies released $3.05 billion in loans and grants during this eight-month window, the ERD said in a report published on Monday..

This marks a sharp decline from the $4.13 billion disbursed during the same period in the previous fiscal year.

While the inflow of funds slowed, the burden of repayment continued to climb.

Between July and February, the government paid $2.90 billion in principal and interest on existing foreign debts.

In contrast, debt servicing stood at $2.64 billion during the corresponding months of the last fiscal year.

Economists and ERD officials attribute the slowdown to lingering economic instability following the political transition in 2024.

The dollar was near a 10‑month high on Monday and heading for its biggest monthly gain since last July ​as mixed signals from Iran and the United States dimmed hopes of a possible quick end to the ‌Middle East conflict.

US President Donald Trump said that Iran's new leaders have been "very reasonable", as more US troops arrived in the region and Tehran warned it will not accept humiliation.

The yen hovered near the key 160 per‑dollar level, after hitting its weakest since July 2024 when Tokyo last intervened to shore up the currency, while ​the euro found some support from expectations of European Central Bank rate hikes.

Markets have been rattled this month after the Iran conflict effectively ​shut the Strait of Hormuz, a chokepoint for about a fifth of global oil and gas flows, driving Brent ⁠crude toward a record monthly rise.

The dollar has benefited from its safe‑haven status since early March, with higher oil prices hurting Japan ​and the euro zone but insulating the United States as a net crude exporter.

The US dollar index was roughly unchanged at 100.19. It ​hit 100.54 in mid-March, its highest level since May 2025, and was on track for its biggest monthly rise since July 2025.

Barclays said dollar sentiment was approaching "max bullish" levels on its index, according to traditional gauges including growth proxies, rate differentials and beta indicators.

"The playbook is to sell rallies in risk and ​maintain volatility hedges," said Chris Weston, head of research at Pepperstone.

Markets will closely watch US jobs data later in the week, which could ​affect expectations for the Federal Reserve policy path.

"In the eye of the storm, this week delivers a crucial run of US labour market data," said ‌Bob Savage, ⁠head of markets macro strategy at BNY.

"Given the weak February jobs report and a month of conflict in the Middle East, we’re keen to learn how the jobs situation has responded," he added.

Bangladesh Bank Governor Md Mostaqur Rahman has said he expects to receive funds from the finance ministry in July this year to liquidate six non-bank financial institutions (NBFIs).

He made the remarks at a meeting with senior journalists at the central bank on Sunday. "We expect that the funds required to liquidate the six financial institutions will be received from the finance ministry in July this year," he said.

A senior central bank official told TBS, "The finance division has informed us that the money will be released in two phases. In the first phase, Tk2,600 crore will be provided. Then, by June, another Tk3,000 crore will be released in the second phase."

He added, "As soon as we receive the first tranche, we will appoint administrators to the institutions concerned. Their primary task will be to repay depositors in the private sector. We will first settle individual depositors' funds and then apply to the court for liquidation of the institutions."

Earlier, on 27 January, the Bangladesh Bank board decided to liquidate six institutions. In the same meeting, three institutions were given three to six months' time.

The six NBFIs are FAS Finance, Premier Leasing, Fareast Finance, Aviva Finance, People's Leasing, and International Leasing.

The three institutions given time are Bangladesh Industrial Finance Company, GSP Finance Company, and Prime Finance and Investment Limited.

Currently, there are 35 non-bank financial institutions in the country, of which 20 have been identified as distressed by the central bank.

These 20 institutions have total loans amounting to Tk25,808 crore, of which Tk21,462 crore – about 83.16% – are defaulted. In contrast, the value of collateral stands at only Tk6,899 crore.

On the other hand, the 15 relatively healthy institutions have a default loan rate of just 7.31%. Last year, they made a profit of Tk1,465 crore and have a capital surplus of Tk6,189 crore.

Deposits in the 20 troubled institutions total Tk22,127 crore, of which net individual deposits amount to around Tk4,971 crore. The central bank believes that this amount may be required initially to support the liquidation and restructuring process.

Iran’s annual inflation rate rose to 50.6 percent by mid-March, up three percentage points from the previous month, the country’s official statistics centre said on Sunday.

“The inflation rate for the twelve months ending in Esfand (from February 20 to March 20) reached 50.6 percent,”the centre said in a statement carried by the official IRNA news agency.

The rate had stood at 47.5 percent in the previous month, covering the period from January 21 to February 19.

The rise in prices comes with Iran at war with the United States and Israel since February 28, when strikes that killed the country’s supreme leader triggered a conflict that has since spread across the Middle East.

On March 20, Iran marked the start of the Nowruz holidays, the Persian New Year.

More than 1,300 ongoing projects approved by the Executive Committee of the National Economic Council (Ecnec) under previous governments are now under review, Finance and Planning Minister Amir Khosru Mahmud Chowdhury has said.

He made the remarks while responding to a question during the question-and-answer session of the first sitting of the 13th Jatiya Sangsad this afternoon (30 March).

The minister said around 500 of these projects have made less than 10% progress so far.

"Many of the projects involve concerns of waste and corruption, which is why they have been brought under review," he said.

The projects currently being undertaken aim to strengthen the rural economy, he added.

Bangladesh secured higher foreign loan commitments in the first eight months of the current fiscal year, yet actual disbursement fell by 26 percent compared with the same period last year, raising concerns about the country’s ability to use external funds effectively.

Between the July-February period, foreign loan disbursement dropped to $3.05 billion, down from $4.13 billion a year earlier, according to data released by the Economic Relations Division (ERD) yesterday.

The decline was driven largely by slower project aid, the primary channel for financing infrastructure and development projects.

Disbursement under project assistance fell to just above $3 billion in the first eight months of this fiscal year, compared with over $4.1 billion during the same period last year.

This slowdown comes despite nearly $40 billion in financing commitments from foreign lenders.

Analysts say the widening gap between pledged funds and actual disbursement reflects Bangladesh’s limited capacity to use external resources on time.

Foreign aid is crucial for roads, power plants, and social sector projects, but delays can reduce project benefits and increase costs.

The trend is particularly concerning as Bangladesh’s external debt servicing rises. During the July-February period, the country paid $2.9 billion in principal and interest, up from $2.63 billion a year earlier.

Deen Islam, professor of economics at Dhaka University, said the figures indicate a gradual shift from development financing to debt rollover.

“When a large portion of new external borrowing is used to service existing debt rather than finance productive investment, the net inflow of resources into the economy declines,” he said.

“Infrastructure and development spending may slow, while rising debt servicing puts additional pressure on foreign exchange reserves and the exchange rate,” Islam said.

He added that the situation could also fuel imported inflation. While not yet a crisis, he described it as a “warning sign”.

“If this trend persists, policymakers will face difficult trade-offs between taking on more debt and reallocating domestic resources away from development spending,” he said.

Meanwhile, Monzur Hossain, member (secretary) of the General Economics Division (GED) under the Planning Commission, said, “Loan disbursement is directly tied to project progress. When implementation slows, disbursement inevitably falls.”

He pointed to structural bottlenecks, particularly in investment projects.

“Many projects involve complex conditions, and meeting those requirements takes time. Land acquisition remains a major challenge in many cases,” Hossain said.

He also noted weaknesses in the execution of the Annual Development Programme (ADP) as a key factor. “Since most of these loans are linked to ADP projects, delays in overall project execution translate into slower disbursement,” he added.

During the period of the interim government, many projects were almost stagnant. However, Hossain expressed optimism about improvement in the coming months.

“Now, with a political government in place, monitoring has increased, projects are being prioritised, and delays are being scrutinised more closely,” he said.

“I expect the situation to improve soon, particularly in the final months of the fiscal year as measures taken by the Planning Commission begin to take effect,” he added.

Overseas credit card spending by Bangladeshis declined by 5.74%, falling to Tk463 crore in January from Tk491.2 crore the previous month, according to the latest report of the Bangladesh Bank.

However, Bangladeshis spent the highest amount using credit cards in Thailand in January 2026, totalling Tk69.4 crore, reveals it.

The central bank's report titled "An Overview of Card Usage Patterns Within and Outside Bangladesh" showed that spending in Thailand increased from Tk64.9 crore in December.

After Thailand, the United States was the second most popular destination, where spending stood at Tk67.5 crore in January, slightly down from Tk68.2 crore in December.

The United Kingdom ranked third with Tk38.4 crore in spending, also decreasing from Tk44.4 crore a month earlier.

Spending in Singapore rose slightly to Tk38.3 crore while expenses in India dropped significantly to Tk28.5 crore from Tk35.1 crore in December.

According to the report, India had been the top destination for Bangladeshi credit card spending until August 2024. However, stricter visa policies have reduced travel to India, shifting spending to other countries.

The report also showed debit card usage abroad, with the UK, US, China and India topping the list.

Oil prices extended gains on Monday, with ​Brent headed for a record monthly rise, after Yemeni Houthis launched their first attacks on Israel over the ‌weekend, widening the US-Israel war with Iran in the Middle East.

Brent crude futures jumped $3.94, or 3.5 percent, to $116.51 a barrel at 0703 GMT after settling 4.2 percent higher on Friday.

US West Texas Intermediate was at $102.14 a barrel, up $1.86, or 1.87 percent, following a 5.5 percent gain in the previous session.

“The market has all but discounted the prospect of ​a negotiated end to the war, Trump’s claims of ongoing ‘direct and indirect’ talks with Iran notwithstanding, and is bracing for ​a sharp escalation in military hostilities, which is a bullish signal for crude, with huge uncertainties on the timing and nature of the outcome,” said Vandana Hari, founder of oil market analysis provider Vanda Insights.

US President Donald Trump said ​the US and Iran have been meeting “directly and indirectly” and that Iran’s new leaders have been “very reasonable”, as more U.S troops arrived in ​the region, while the Israeli military said on Monday it is attacking the Iranian government’s infrastructure throughout Tehran.

Brent has soared 59 percent this month, the steepest monthly jump, exceeding gains seen during the 1990 Gulf War, after the Iran conflict effectively closed the Strait of Hormuz, a conduit for a fifth of the world’s ​oil and gas supplies.

The war, launched on February 28 with US and Israeli strikes on Iran, has spread across the Middle East, ​raising concern about shipping lanes around the Arabian Peninsula and the Red Sea.

The Israeli military on Monday said Iran launched multiple waves of missiles at Israel ‌and an ⁠attack had also been launched from Yemen for only the second time since the war began.

“The conflict is no longer concentrated in the Persian Gulf and around the Strait of Hormuz, but now extends into the Red Sea and the Bab el-Mandeb — one of the world’s most crucial chokepoints for crude and refined product flows,” JP Morgan analysts led by Natasha Kaneva said in a note.

Saudi crude exports ​re-directed from the Strait of ​Hormuz to the Yanbu port ⁠in the Red Sea reached 4.658 million barrels per day last week, data from analytics firm Kpler showed.

If exports from Yanbu were disrupted, Saudi oil would need to pivot toward Egypt’s Suez-Mediterranean (SUMED) pipeline to ​the Mediterranean, JP Morgan analysts said.

Attacks in the region escalated over the weekend and damaged Oman’s Salalah ​terminal despite efforts ⁠to start ceasefire talks.

Iran said it was ready to respond to a US ground attack, accusing Washington on Sunday of preparing a land assault even as it sought negotiations.

Pakistan’s Foreign Minister Ishaq Dar said they had covered possible ways to bring an early and permanent end to the ⁠war in ​the region as well as potential US-Iran talks in Islamabad.

Separately, Vietnam’s Binh Son ​Refining and Petrochemical on Monday said it is in talks with Russian partners to buy crude oil. The company said it would also buy more crude oil from Africa, ​the US and Southeast Asia.

Foreign loan disbursement declined by 26.2% in the first eight months (July–February) of the current fiscal year.

According to an updated report published today (30 March) by the Economic Relations Division (ERD), development partners disbursed $3.053 billion during this period, compared to $4.134 billion in the same period of the previous fiscal year.

ERD officials said the slowdown in project implementation due to elections led to the drop in disbursement. The administration remained focused on the election during the current fiscal year, which slowed the pace of development project implementation and affected foreign loan disbursement.

Officials also noted that, similar to the previous fiscal year, there was administrative instability at the beginning of the current fiscal year and during the interim government period. At the same time, there was a lack of confidence among development partners, which further slowed project implementation from the outset.

In addition, after the Awami League government lost power in 2024, many project directors and related officials left their positions. Appointing new project directors took time, and this situation persisted into the first half of the current fiscal year, disrupting both project implementation and fund disbursement.

Meanwhile, ERD data show that in the first eight months of the fiscal year, Bangladesh repaid nearly the same amount to development partners as it received in disbursements.

According to ERD, Bangladesh repaid $2.899 billion in principal and interest on past loans during July–February, while disbursement during the same period stood at $3.05 billion.

In the same period of the previous fiscal year, Bangladesh repaid $2.636 billion to development partners.

Officials said repayments have increased as grace periods for many previously taken loans have ended. However, on a full-year basis, repayments are still expected to remain lower than disbursements. For example, Bangladesh repaid $4.086 billion in the previous fiscal year, while disbursements were $8.56 billion. Similarly, although repayments may rise by the end of the current fiscal year, they are unlikely to exceed disbursements.

ERD data show that Bangladesh repaid $1.943 billion in principal during the first eight months, up from $1.692 billion in the same period last year.

Interest payments during this period amounted to $955.8 million, compared to $944.1 million in the same period of the previous fiscal year.

Meanwhile, Bangladesh secured $2.431 billion in foreign loan commitments during July–February, slightly higher than $2.353 billion in the same period last year.

ERD sources said that last fiscal year's student-led uprising, change of government, administrative instability, and lack of confidence among development partners contributed to lower loan commitments. Although the situation has improved in the current fiscal year, the interim government remains cautious about foreign borrowing, which has limited the pace of new commitments. However, commitments are expected to increase under a newly elected government.

Mustafa K Mujeri, executive director at the Institute for Inclusive Finance and Development, said development partners generally feel more comfortable working with a stable and democratically elected government. As a result, during the interim government period, both major loan commitments and disbursements remained low except for urgent needs. This contributed to the decline in disbursement compared to the previous fiscal year. Although commitments have increased somewhat in the first eight months, the rise is not significant.

He added that repayment of foreign loans taken in previous years has now become a major pressure. As repayment periods for loans taken under the previous government begin, the amount of repayment is increasing. Currently, disbursement and repayment are nearly at the same level, which could increase pressure on foreign exchange reserves.

According to him, if new loan inflows do not increase, this pressure may intensify in the future. At the same time, global uncertainties, including the Middle East conflict, have increased costs of energy, transport, and insurance. Importing oil and LNG from alternative sources at higher prices is putting additional strain on reserves. The current reserve stands at around $30 billion, and increasing it to $40-45 billion could bring some relief. In this situation, the government is seeking budget support from the International Monetary Fund, World Bank, and Asian Development Bank to ease pressure on reserves.

Mujeri said coordinated efforts are essential to tackle the crisis. Strengthening foreign assistance, expanding exports, boosting reserves, and controlling expenditure will help Bangladesh address these challenges.

According to ERD data, Russia disbursed the highest amount – $755.15 million – during July-February, mainly for the Rooppur power project. The World Bank disbursed $636 million, the Asian Development Bank $566.19 million, China $257.72 million, Japan $189.36 million, and India $152.89 million.

In terms of commitments, the Asian Development Bank provided the highest at $1.269 billion during the first eight months. The World Bank committed $416.25 million, while European Union countries pledged $392.07 million.

A dedicated division under Bangladesh Bank spearheads anew stolen-asset-recovery initiative with over 200 high-value non-performing loan (NPL) cases under scrutiny, each involving an estimated Tk 2.0 billion.Bangladesh market analysis

A newly established unit--Stolen Asset Recovery Division--is currently validating the amounts using data from the Credit Information Bureau (CIB), says Farhanul Gani Choudhury, adviser to the governor on stolen asset recovery.

Talking to The Financial Express, he said the 200 cases were shortlisted from NPL data submitted by commercial banks to the central bank. According to compiled information, these cases collectively account for approximately $12 billion or Tk 1.47 trillion in NPLs.

Bangladesh's total NPL volume stood at Tk 5.57 trillion as of December 2025, according to BB data.

Mr Gani clarifies that while the total NPL amount in these 200 cases is under intelligence scrutiny, it does not necessarily mean that the entire sum has been siphoned off.

"The SAR has now started working under a single platform to proceed in a structured way," he says.

The division will prioritise cases based on the number of banks affected by each NPL, he adds.

Under the second phase, SAR has engaged with 40 banks.Personal finance tools

Through civil proceedings, the division aims to determine how much of the NPL amounts in these 200 cases has actually been siphoned off the banking system.

Meanwhile, the first phase of the SAR initiative is also progressing in full swing.

"These 200 cases involve around 200 companies and individuals - a mixed group. While individuals are involved, they often operate through companies," Mr Gani says, without naming names of the suspects.

He notes that many of these borrowers are multi-bank clients, meaning a single individual has taken loans from multiple banks.

Sharif Zahir, chairman of UCB, which was the first bank to sign an NDA in the case involving former land minister Saifuzzaman Chowdhury, has said the response from litigation funders on asset recovery has so far been disappointing.

"One firm, FT, initially responded but later backtracked. Perhaps they found the amount not large enough or not sufficiently attractive," he says.Premium content access

He adds that UCB moved quickly to claim the alleged stolen assets in order to appoint an administrator. Grant Thornton has since taken over the administratorship.

"If we proceed through civil litigation, it is not that difficult to recover stolen assets. However, criminal proceedings require government-to-government agreements, which make the process more complex."

Mr Zahir expresses optimism about recovering at least part of the assets linked to Saifuzzaman Chowdhury, some of which have already been put up for sale in the UK.

On the 200 cases, Mr Gani explains that in cases where a single defaulter is linked to 10 or 15 banks, coordination becomes essential.

For cases involving only one bank, such coordination is not required, and the choice of international firm becomes less critical. However, in multi-bank exposures, a consortium or lead-bank approach is necessary.

"I have established an entirely new department. This work would not be sustainable without a strong institutional structure," he told the FE.

The SAR division consists of around 12 officials led by a director, in line with the organogram approved earlier by former BB governor Dr Ahsan H Mansur and endorsed by the current governor.

At a meeting with senior journalists on Sunday, the new BB governor reaffirmed his position to proceed on SAR without political and other interventions.

A director has already been appointed and is actively working on SAR. Previously, these responsibilities were partially handled by the Bangladesh Financial Intelligence Unit (BFIU), but now all asset- recovery functions have been consolidated under one umbrella.Bangladesh market analysis

All members of this division are officials of Bangladesh Bank. The structure includes one director from BFIU, two additional directors, four joint directors, and several assistant and deputy directors. Given the technical nature of the work, an IT specialist will also be appointed.

BFIU Director Syed Mahbub, who has been closely involved in SAR efforts from the outset, is also part of the division.

The division of crusaders for stolen asset recovery includes two to three joint directors who have completed two-year master's degrees in asset recovery from the UK, bringing valuable international expertise and knowledge of global best practices.

Under Phase 1, SAR has completed 36 non-disclosure agreements (NDAs) with 10 banks. NDAs have also been signed with nine international firms, and data sharing is now underway.

United Commercial Bank, Janata Bank, National Bank, Al-ArafahIslami Bank, Agrani Bank, AB Bank, and Islami Bank Bangladesh, among others, have signed the agreements with the law firms.

The global law and litigation firms engaged are Kroll, R1 Consortium, Interpath, Dentons/EY, DLA Piper/Unitas Global, PwC/Baker McKenzie, Omni Bridgeway, and Grant Thornton.Personal finance tools

"Data is the most critical element. Everything I have done so far has been through coordination. Now we will be able to assess how viable this data is for building cases internationally," Mr Gani further says.

He explains that prior to signing NDAs, international firms did not have access to case-level data and were relying only on broad macroeconomic estimates of capital flight.

"Now it will become clear how much of this can actually stand up in international jurisdictions. Based on this, they will need to convince their litigation funders. Once they receive positive feedback from those funders, they will proceed with commercial contracts."

The SAR division has already begun seeking feedback from international firms, with mixed responses so far.

Some banks have performed well by properly organising and indexing their data and clearly presenting their proceedings in the Money Loan Court. Others, however, have submitted unstructured data, reflecting gaps in capacity and understanding.

"I plan to organise a best-practice session where better-performing banks will demonstrate to others how to prepare and present data to the required standard," he says.

SAR has also asked international firms to formally outline their minimum data requirements to ensure clarity in expectations.

Officials have observed that not all international firms operate the same way - some are more supportive and flexible, while others are less so.

Dhaka Stock Exchange witnessed a second consecutive session of losses today (30 March) as persistent sell-offs, fueled by rising US-Israeli tensions over Iran, dragged the benchmark index down. The DSEX fell 41 points to close at 5,230.

Despite declining prices for 59% of listed stocks, turnover slightly increased by 2.69% to Tk663.87 crore, according to DSE data. The other key indices also ended lower, with the DSES down 5 points to 1,061 and the blue-chip DS30 falling 19 points to 1,979.

Among traded stocks, 111 advanced, 231 declined, and 51 remained unchanged.

Trading opened on a positive note at 10 am but lasted only seven minutes before selling pressure gripped the market, pushing indices into the red. Selling intensified in the latter part of the session, keeping stocks under pressure throughout the day.

EBL Securities said in its daily report that investor sentiment remained cautious amid ongoing geopolitical tensions in the Middle East and a nationwide fuel shortage.

"The market continued its losing streak for the second consecutive session, as investors shifted focus from large-cap stocks to momentum-driven speculative scrips," the report said. "Despite a firm start, broad-based selling emerged midway through the session, intensifying toward the close and dragging the index lower."

On the sectoral front, Pharma stocks accounted for the highest share of turnover at 18.2%, followed by Engineering at 11.7% and Banks at 9.7%.

Among gainers, Hakkani Pulp and Paper led with a 9.92% rise to Tk88.6, followed by Intech Ltd with a 9.41% gain to Tk43 and IFIC First Mutual Fund up 7.69% to Tk4.2.

Prime Finance was the top loser, slipping 9.25% to Tk4.9, followed by FAS Finance down 8.57% to Tk3.2 and Fareast Finance falling 8.33% to Tk3.3.

The port city bourse, Chittagong Stock Exchange, also ended in negative territory. Its CSCX and CASPI fell by 7.1 points and 17.7 points, respectively

German companies are so deeply tied to both the United States and China that they cannot decouple from either without severe economic costs, according to a study by the University of Sussex and King's College London seen by Reuters on Monday.

The researchers mapped sales, production and supply-chain exposures of firms listed on Germany's DAX and MDAX indices, finding that dependence on the world's two biggest economies runs across sectors and individual companies.

Automakers and machinery groups are most reliant on China as a market, while chemical and pharmaceutical firms depend more heavily on the US for research, development and production, the study said. Digital, telecoms and semiconductor companies, meanwhile, are highly exposed to suppliers in both countries.

"Leading industrial players like Siemens and BMW were built in a fundamentally globalised system and can't decouple from either China or the US without devastating losses," University of Sussex political economist Steven Rolf, a co-author, said.

The study said BMW generates more revenue from China than from the United States, while also depending on Chinese battery supplier CATL for more than 1.4 billion euros ($1.5 billion) in inputs.

Siemens gets 24% of revenue from the United States and 12% from China, with supplier networks heavily exposed to both.

The findings underscore the difficulty for Berlin in crafting a clear strategy as US-China tensions intensify, Rolf said.

The Bangladesh Securities and Exchange Commission has approved the issuance of an Orange bond, the first of its kind in the country, by SAJIDA Foundation to raise Tk 158.5 crore to finance women's economic empowerment and accelerate progress towards gender equality.

The zero-coupon bond, a debt that pays no interest but is sold at a deep discount, marks a major milestone in Bangladesh’s capital market evolution, said a press release by BRAC EPL Investments Ltd.

SAJIDA Foundation partnered with BRAC EPL Investments Ltd and Impact Investment Exchange (IIX), the Singapore-based global impact investing platform, to issue the Orange bond, a specialised investment tool designed to raise money specifically for empowering women, girls, and gender minorities while tackling climate change.

“The pioneering bond supports the transition toward more inclusive, resilient, and capital market-driven development finance solutions, and contributes to broader efforts to develop the impact investment ecosystem in Bangladesh,” said the press release.

BRAC EPL Investments Ltd said Bangladesh’s bond market has long been dominated by government securities and bank subordinated debt. This transaction breaks that mould by introducing thematic, impact-linked fixed income as a new asset class.

The bond offers investors tax-exempt financial returns while enabling measurable social impact, particularly in supporting women and women-led businesses.

Some 48 percent of the proceeds will be allocated to food security and agriculture, 32 percent to women-led SMEs, and 20 percent will be used for climate-resilient housing across 36 districts.

“Impact will be tracked through independently verified annual reports aligned with international standards, ensuring transparency and tangible benefits for women’s economic empowerment.”

Minister for Power, Energy and Mineral Resources Iqbal Hasan Mahmud Tuku stated in a parliamentary session today (30 March) under Rule 300 that the government has taken the initiative to import 50,000 tonnes of octane in April.

Additionally, the government announced that another 30,000 tonnes of octane will be supplied from domestic sources.

As a result, even though the monthly demand is 35,000 tonnes, the current management will ensure an additional reserve for at least two months.

The minister said that although global instability – particularly tensions in the Middle East – has created pressure on the global fuel supply, Bangladesh has kept the situation under control through advanced preparation, consistent imports and effective management.

The minister noted that despite the increase in prices on the international market, fuel prices have not been raised domestically.
Keeping fuel prices stable a major success of govt: Salahuddin

Currently, while the selling price of diesel is Tk100 per litre, the actual cost is approximately Tk198. The government is also providing subsidies for octane.

The minister stated that for the March-June quarter, a total subsidy of Tk15,409 crore will be required for diesel, and Tk636 crore for octane, totalling Tk16,045 crore.

"Furthermore, for LNG imports through Petrobangla, a subsidy of Tk15,077 crore will be required for the April-June quarter. This government believes the state's primary responsibility is to stand by the people during crises and ensure their protection," he added.
What’s driving our hoarding instinct in the ongoing fuel crisis?

The minister said, "I want to reassure the nation through this parliament that fuel prices have not been increased in the country despite the foreign crisis. Many countries around the world have had to adjust fuel prices repeatedly. Even in many neighbouring countries, prices have increased by more than 25%."

He emphasised that the Bangladesh government has prioritised the public interest and kept prices stable, because if fuel prices rise, the cost of agricultural production, transport and the general public's cost of living increases manifold.

The discussion on hiking fuel prices comes in the face of a global crisis stemming from the Middle East war. In order to cope with energy shortages, prices have increased in many neighbouring countries, and some countries have even shut down educational institutions due to energy shortages.

Earlier, Home Minister Salahuddin Ahmed said keeping fuel prices unchanged in the country, despite their rise in international markets following the Middle East war, was a major success of the government.

City Sugar Industries Limited, a concern of City Group, has received regulatory approval to raise Tk1,300 crore through a three-year zero-coupon bond.

The approval was granted by the Bangladesh Securities and Exchange Commission (BSEC) at a meeting today (30 March), according to a press release.

The proposed bond will be secured and mortgage-backed, non-convertible, and fully redeemable, with an estimated discount rate of around 13.50%. Under the structure, the company will provide land as collateral, offering enhanced security to investors.

The bond will be issued through private placement to corporate entities, high-net-worth individuals, banks, financial institutions, and insurance companies. Each unit of the bond will carry a face value of Tk13 lakh.

Officials said the proceeds from the bond issuance will be used to repay existing liabilities with various banks and financial institutions, helping the company restructure its debt and improve financial stability.

BRAC EPL Investments Limited has been appointed as the trustee of the bond, while BRAC Bank will act as the arranger. The bond is also expected to be listed on the Alternative Trading Board, providing a platform for secondary market trading.

Syed Rashed Hussain, chief executive officer of BRAC EPL Investments, said the mortgage-backed nature of the bond ensures a higher level of security for investors.

He explained that the company's land will be transferred under the trustee as collateral, and in case of default, the trustee will have the authority to liquidate the assets to repay investors.

He added that this is the first instance of a mortgage-backed bond issuance in Bangladesh, setting a precedent in the local capital market and potentially opening the door for similar structured financing instruments in the future.

Earlier, City Auto Rice and Dal Mills Limited, another concern of City Group, issued a Tk350 crore bond for repaying the debt.

Market analysts believe the move reflects a growing trend among corporates to explore alternative financing options beyond traditional bank loans, while also offering investors more secure investment avenues.

The securities regulator has approved a proposal from non-listed Akij Food & Beverage Ltd to raise Tk 5 billion by issuing zero-coupon bonds, a move that reflects the growing reliance of large corporations on alternative financing instruments.Financial literacy course

According to the regulatory approval, the bond will be unsecured, non-convertible, and fully redeemable. Unlike conventional bonds, this instrument does not offer periodic interest payments. Instead, the bond is issued at a discounted price and redeemed at full face value upon maturity, allowing investors to earn a fixed return.

The approval came at a meeting of the Bangladesh Securities and Exchange Commission (BSEC) last week, presided over by its Chairman Khondoker Rashed Maqsood.

The tenure of the bond will range from six months to 60 months, providing flexibility for investors with varying investment horizons.

The bond units will be issued through private placement to banks, non-bank financial institutions, insurance companies, institutional investors, and high net-worth individuals. Each unit will carry a face value of Tk 1 million, effectively limiting participation to large-scale investors.

Sena Insurance has been appointed trustee, responsible for safeguarding investors' interests and ensuring regulatory compliance, while North Star Investments (BD) will act as the fund manager.Bangladesh market analysis

Market insiders said amid tighter banking liquidity and relatively high borrowing costs, corporations are actively diversifying funding sources. Structured instruments such as zero-coupon bonds allow issuers to better align repayment obligations with long-term revenue generation.

The proceeds from the issuance are expected to support the company's expansion and operational financing needs, although detailed utilisation plans were not disclosed. This would be a cost-efficient way to fund expansion without immediate interest servicing burdens.

Founded in 2006, Akij Food & Beverage has grown into one of the country's leading beverage manufacturers. Its portfolio includes several well-known brands such as Mojo, Frutika, and Speed, which enjoy a strong market presence across segments.

The interim government's reliance on the banking sector surged significantly to meet development project costs and other expenditures, with borrowing from internal banks reaching over Tk73,000 crore in the first seven months of the current fiscal year, FY2025-26.

According to a report from Bangladesh Bank, 81% of the government's total domestic and foreign loans between July and January were sourced from the internal banking system. The total net borrowing from both local and international sources stood at approximately Tk90,000 crore during this period.

Economists warn that excessive government borrowing from banks can crowd out the private sector, discouraging investment and creating pressure for interest rate hikes. This comes at a time when private sector credit flow has already hit a record low due to political instability ahead of the 13th national elections.

Central bank officials identified several factors behind the rapid increase in bank loans. A primary reason is the government's capital support for the "Combined Islamic Bank," formed by merging five banks. In the first week of last December, the government injected approximately Tk 20,000 crore into the bank, a large portion of which was financed through bank borrowing.

Additionally, while revenue collection fell short of targets in the first half of the fiscal year, operating expenses rose significantly, forcing the interim government to lean more heavily on the banking sector.

The government proposed a budget of Tk7.90 lakh crore for the FY2025-26, with an overall deficit (including grants) of Tk2.21 lakh crore, or 3.5% of GDP. To bridge this gap, the government planned to borrow Tk1.25 lakh crore from domestic sources, including Tk1.04 lakh crore from the banking system and Tk21,000 crore from non-banking sources.

However, data shows a sharp shift in borrowing patterns.

Net borrowing reached Tk73,035 crore from July to January, nearly an eight-fold increase compared to Tk9,442 crore during the same period of the previous fiscal year.

Borrowing from non-banking sources plummeted to Tk7,216 crore, down from Tk25,864 crore in the previous year.

The total stock of domestic debt stood at Tk10.37 lakh crore as of January 2025, an increase of over Tk1.51 lakh crore within a single year.

The report also highlighted a dwindling contribution from external sources. In the first seven months of FY2025-26, net foreign borrowing amounted to only Tk9,832 crore, accounting for less than 11% of total loans.

In contrast, the government had secured approximately Tk27,964 crore from foreign sources during the same period in the previous fiscal year.

Experts emphasised the need for a balanced debt management strategy to attract private investment and ensure long-term economic stability.

South Korea's March exports probably rose at the strongest pace in nearly five years on a boom in chip demand fuelled by artificial intelligence investment, although the Iran war was set to drive up imports and inflation, a Reuters poll showed on Monday.

Exports from Asia's fourth-largest economy, a bellwether for global trade, were projected to have risen 44.9% from a year earlier, according to a median forecast of 11 economists.

That would be faster than the 28.7% rise in February and the strongest since May 2021. It would also mark the 10th consecutive month of year-on-year gains.

"Semiconductor prices are continuing to rise sharply on robust demand for memory chips," said Chun Kyu-yeon, an economist at Hana Securities, expecting this year's trade surpluses at record levels.

In the first 20 days of this month, exports rose 50.4%, as semiconductor sales surged 163.9%. Shipments to the US and China rose 57.8% and 69.0%, respectively, while those to the European Union were up 6.6%.

"However, due to the impact of high oil prices, import growth will also be higher than previously projected," said Park Sang-hyun, an economist at iM Securities. "It is expected that there will be some disruption to shipments to the Middle East."

In Monday's monthly survey, imports were forecast to have risen 18.0% in March from a year earlier, after growing 7.5% in February. That would mark the biggest jump since September 2022.

The median forecast for the country's monthly trade balance stood at $21.2 billion, wider than $15.4 billion in the previous month and a record high.

Consumer inflation probably accelerated in March to 2.4%, the fastest pace in four months. Inflation was 2.0% in February.

South Korea is scheduled to report trade figures for March on Wednesday, 1 April, at 9 am (0000 GMT).

Oil prices extended gains on Monday, with Brent headed for a record monthly rise, after Yemeni Houthis launched their first attacks on Israel over the weekend, widening the US-Israel war with Iran in the Middle East.

Brent crude futures jumped $2.43, or 2.16%, to $115 a barrel by 0342 GMT after settling 4.2% higher on Friday.

US West Texas Intermediate was at $101.50 a barrel, up $1.86, or 1.87%, following a 5.5% gain in the previous session.

"The market has all but discounted the prospect of a negotiated end to the war, Trump's claims of ongoing 'direct and indirect' talks with Iran notwithstanding, and is bracing for a sharp escalation in military hostilities, which is a bullish signal for crude, with huge uncertainties on the timing and nature of the outcome," said Vandana Hari, founder of oil market analysis provider Vanda Insights.

US President Donald Trump said the US and Iran have been meeting "directly and indirectly" and that Iran's new leaders have been "very reasonable", as more US troops arrived in the region, while the Israeli military said on Monday it is attacking the Iranian government's infrastructure throughout Tehran.

Brent has soared 59% this month, the steepest monthly jump, exceeding gains seen during the 1990 Gulf War, after the Iran conflict effectively closed the Strait of Hormuz, a conduit for a fifth of the world's oil and gas supplies.

The war, launched on 28 February with US and Israeli strikes on Iran, has spread across the Middle East, with Yemen's Iran-aligned Houthis on Saturday launching their first attacks on Israel since the start of the conflict, raising concern about shipping lanes around the Arabian Peninsula and the Red Sea.

"The conflict is no longer concentrated in the Persian Gulf and around the Strait of Hormuz, but now extends into the Red Sea and the Bab el-Mandeb — one of the world's most crucial chokepoints for crude and refined product flows," JP Morgan analysts led by Natasha Kaneva said in a note.

Saudi crude exports re-directed from the Strait of Hormuz to the Yanbu port in the Red Sea reached 4.658 million barrels per day last week, data from analytics firm Kpler showed.

If exports from Yanbu were disrupted, Saudi oil would need to pivot towards Egypt's Suez-Mediterranean (SUMED) pipeline to the Mediterranean, JP Morgan analysts said.

Attacks in the region escalated over the weekend and damaged Oman's Salalah terminal despite efforts to start ceasefire talks.

Iran said it was ready to respond to a US ground attack, accusing Washington on Sunday of preparing a land assault even as it sought negotiations.

Pakistan's Foreign Minister Ishaq Dar said they had covered possible ways to bring an early and permanent end to the war in the region as well as potential US-Iran talks in Islamabad.

Asian stock markets fell while oil prices surged today (31 March) as the ongoing war involving Iran continued to rattle global markets and drive up energy costs.

South Korea's benchmark Kospi index dropped sharply by 3.82%, losing more than 200 points to stand at 5,075.92 around 01:00 GMT.

Japan's Nikkei 225 also declined 2.24% in early trading before recovering slightly, though it remained down 0.73%, or 377 points, at 51,507.99.

China's FTSE China A50 Index edged lower as well, slipping between five and 10 points, or less than 0.07%, to hover around 14,570.

Meanwhile, oil prices climbed amid supply concerns linked to the conflict.

The US benchmark West Texas Intermediate rose 1.08% to $103.99 per barrel, crossing the $100 mark for the first time since the war began. International benchmark Brent Crude jumped 2.23% to reach $109.78 per barrel.

Rising crude prices have translated into higher fuel costs in the United States.

The average retail gasoline price has exceeded $4 per gallon for the first time in more than three years, according to data cited by Reuters from fuel tracking service GasBuddy.

Since the US-Israel war involving Iran began on February 28, gasoline prices across the US have surged by about $1.06 per gallon, marking a 36% increase.

The last time prices reached the $4 threshold was in August 2022, following the outbreak of the Russian invasion of Ukraine.

During his 2022 campaign to return to the White House, Donald Trump had pledged to cut energy costs and boost domestic oil and gas production, a promise now facing renewed scrutiny amid the latest price spike.