Finance Minister Amir Khosru Mahmud Chowdhury has said Bangladesh's economy may take around two years to recover from recent financial pressures, citing an additional Tk40,000 crore spent on the oil and gas sector due to the Middle East war and nearly Tk50,000 crore in outstanding dues from previous governments in the power and energy sectors.

Speaking as the chief guest at a ceremony for the foundation stone laying of a new building at Chattogram Maa-O-Shishu Medical College Hospital this morning (16 May), he said healthcare is a fundamental right of every citizen and the government is now focusing on preventive and primary healthcare. 

Khosru, also the planning minister, added that initiatives are being taken to coordinate with private hospitals so that poor people can access better treatment.

He said the government is considering a plan to send poor patients to private hospitals and bear their treatment costs due to the limitations of public hospitals. 

He mentioned that the health budget will be increased, but stressed that proper use of allocations must be ensured.

The minister alleged that although substantial allocations were made to the health sector in the past, a large portion was wasted through corruption. Ordinary people did not receive the expected healthcare services, he added.

Despite limitations, he said, the government will continue supporting educational and healthcare institutions that are performing well.

The minister also expressed concern over the design of the new medical college building, saying parking space for only 72 vehicles will be insufficient for such a large institution and could create severe traffic congestion in the future. 

He suggested keeping parking facilities for at least 200 to 250 vehicles, including additional basements if necessary.

He also stressed modernising medical education through digital libraries, multimedia classrooms, sports facilities and quality canteen services.

Highlighting a shortage of medical technologists in the country, he said costly medical equipment remains unused due to a lack of skilled personnel and called for separate institutes for medical technologists.

Sustainable financing in Bangladesh reached Tk 8,375 crore during the October-December quarter of 2025, accounting for 35.87 percent of total disbursed loans, reflecting growing momentum in the country’s sustainable finance sector, experts said.

They, however, stressed the need for blended and sustainable financing to further strengthen economic growth, tackle climate-related risks and expand social welfare initiatives.

The observations came at the “Sustainable Finance Summit 2026”, organised by LightCastle Partners with support from the Embassy of Switzerland in Bangladesh, the United Nations Capital Development Fund (UNCDF), Netherlands-based impact investment firm Truvalu Bangladesh, and Startup Bangladesh Ltd, held at a hotel in Dhaka yesterday.

Reto Renggli, Swiss ambassador to Bangladesh, inaugurated the event and said sustainable finance was no longer a niche agenda but an essential element for building an inclusive and future-ready economy.

He also praised Bangladesh’s progress in climate resilience and financial inclusion and expressed hope that the summit would help unlock investment opportunities and partnerships.

According to data presented at the event, the global sustainable finance market reached $919 billion in 2025 and is projected to expand to $1.1 trillion in 2026.

The daylong summit aimed to mobilise blended finance and expand the sustainable finance market in Bangladesh.

Masud Rahman, chief technology adviser to the Aspire to Innovate (a2i) project under the ICT ministry, attended the programme as guest of honour.

“Bangladesh stands at a critical juncture where innovation, technology and sustainable financing must advance together,” he said.

More than 200 policymakers, financiers, entrepreneurs and ecosystem stakeholders participated in the summit.

Bijon Islam, chief executive officer of LightCastle Partners, delivered a presentation, titled “From Pledges to Projects: Unlocking the Next Trillion in Sustainable Finance”.

The event also featured three panel discussions involving representatives from financial institutions, development organisations and the startup ecosystem.

Zahedul Amin, managing director of LightCastle Partners, Diepak Elmer, deputy head of mission/head of cooperation at the Embassy of Switzerland in Bangladesh; Nuzhat Anwar, managing director of Dhaka Stock Exchange; Nurul Hai, managing director of Startup Bangladesh Limited; Kerry Breen, senior director at Brummer & Partners; Nazat Chowdhury, managing director of South Asia Tech; Nabila Nowrin, managing director of Infusion Partners; among others, also spoke at the event.

The government has raised Tk 42,400 crore through sukuk, a shariah-compliant investment instrument akin to bonds, since its launch in December 2020.

The latest auction for raising Tk 5,900 crore through sukuk received bids worth Tk 72,598 crore from banks, finance companies, and individuals.

Issued to finance the construction of bridges to connect rural roads, the latest initiative’s subscription amount was 12 times the face value of the bond, reflecting strong investor interest.

The Bangladesh Bank (BB) auctions the sukuk on behalf of the government.

Issued to finance the construction of bridges to connect rural roads, the latest initiative’s subscription amount was 12 times the face value of the bond, reflecting strong investor interest

Of the Tk 42,400 crore, some Tk 32,400 crore was issued through public auction, while Tk 10,000 crore was issued through private placement to Sammilito Islami Bank, which was launched in December last year.

“Such a high response ultimately shows that there is demand for shariah-based investment options in the market,” said Istequemal Hussain, director at the Debt Management Department of BB.

The two main reasons behind the strong interest in this sukuk are that it is government-backed and that many people lack confidence in shariah-based banks, he said.

On Wednesday, the BB allotted the seven-year tenure sukuk bond in favour of investors -- Islamic banks, finance companies, Islamic windows of conventional banks, individual investors and various provident funds -- at a fixed proportionate rate.

Hussain said they have plans to raise Tk 10,000 crore more by June in fiscal year 2025-26, through both short-term and long-term bonds.

Of the sukuk bonds issued so far, none has matured. The BB official said their maturity period had been extended earlier.

High inflation is cutting deep into consumer spending, leaving Bangladesh's service-sector businesses struggling with falling sales and rising costs, according to an economic index released by the Dhaka Chamber of Commerce and Industry (DCCI).

The country's inflation rose to 9.04% in April from 8.71% in March, according to the Bangladesh Bureau of Statistics (BBS).

The chamber's Economic Position Index (EPI) found that consumers have sharply reduced spending as the cost of living continues to rise, putting pressure on retailers, transport operators and other service providers.

Businesses surveyed for the report said weak demand has become one of their biggest concerns.

"Inflation has cornered consumers and weakened purchasing power," said AKM Asaduzzaman Patwary, acting secretary general of the DCCI, while presenting the report at a seminar organised by the chamber today.

According to the report, higher rents, utility bills and fuel prices are eating away at already thin profit margins.

Small and medium-sized enterprises are feeling the pressure most as they struggle to manage higher operating expenses without losing customers.

Businesses also cited difficulties in obtaining bank loans, while delays in licensing and other regulatory procedures are adding to costs.

The report identified a shortage of skilled workers, particularly in technical and customer service roles, as another challenge for the sector.

The DCCI introduced the quarterly index to track changes in business conditions more closely than traditional economic indicators.

Patwary said official data often fails to capture the real situation businesses face because it is published long after conditions have changed.

“There is no proper metric that can effectively reflect the periodic health of the private sector,” he said.

The country's premier bourse witnessed a fluctuating trading week, as the benchmark index managed to edge higher and snap a persistent losing streak, supported by mid-week bargain hunting.

Although the broad index posted marginal gains, the market remained defined by a tug-of-war between cautious investor sentiment and opportunistic buying.

The benchmark DSEX of the Dhaka Stock Exchange (DSE) rose by 11 points to settle at 5,245. However, the blue-chip DS30 index moved in the opposite direction, shedding 19 points to close the week at 1,981, reflecting continued pressure on large-cap stocks.

Market participation showed signs of resilience, with average daily turnover increasing 6% to Tk879 crore.

According to a weekly market review by EBL Securities, trading lacked a clear directional catalyst, leaving investors to navigate persistent uncertainty.

The week began on a weak note, extending the previous losing streak across the first two sessions amid broad-based selling pressure. Investors largely stayed on the sidelines, closely tracking domestic policy signals and geopolitical developments, including ceasefire negotiations in the Middle East.

Amid the cautious environment, trading activity was largely concentrated in small-cap and momentum-driven stocks. Mutual funds also saw notable interest following recent sector-specific regulatory directives, the report noted.

In contrast, blue-chip counters remained under pressure for most of the week as institutional selling continued. However, sentiment improved from the third session onward, as bargain hunters accumulated oversold large-cap stocks after five consecutive sessions of decline. The recovery was further supported by quarterly earnings disclosures and expectations of potential policy changes, EBL Securities added.

Sector-wise, general insurance dominated turnover, accounting for 13.7%, followed by engineering and textile sectors.

Weekly returns remained mixed. The jute sector led gainers with a 6% rise, followed by information technology (4.5%) and financial institutions (4%). On the other hand, services recorded the steepest decline at 2%, while cement and telecommunications also ended lower.

Among individual stocks, RD Food emerged as the week's top gainer, surging 35.6%. VFS Thread, Apex Tannery, and Meghna Pet also posted strong gains.

Conversely, non-bank financial institutions dominated the losers' list, with International Leasing, Peoples Leasing, and FAS Finance each falling 18.2%.

In terms of liquidity, Monno Ceramic, Dominage Steel, and NCC Bank were among the most actively traded stocks.

By week's end, market breadth remained positive, with 205 issues advancing against 145 declines, though analysts said overall sentiment remained cautiously positioned

Iran will reopen its stock market on Tuesday after a suspension ‌during the conflict with the US and Israel, ​Iran's IRNA news agency ​cited a senior official ⁠as saying on Saturday.

"The ​suspension of stock market ​activities from the start of the war was aimed at ​protecting shareholders' assets, ​preventing panic-driven trading and allowing for ‌more ⁠transparent pricing conditions," said Hamid Yari, deputy supervisor at the Securities and ​Exchange ​Organisation.

"Now, ⁠with the reopening of the stock ​market, we will ​see ⁠the full resumption of all capital market sectors," ⁠he ​added.

Techno Drugs Limited has decided to issue a coupon-bearing bond worth Tk50 crore to restructure its high-cost bank loans, as the pharmaceutical company faces declining profits alongside a sharp rise in long-term debt.

The decision was approved at the company's board meeting held on Thursday.

According to a price-sensitive disclosure, the proposed five-year bond will be structured as 25% redeemable and 75% convertible. The initiative is subject to approval from shareholders at an extraordinary general meeting (EGM) scheduled for 24 June, as well as clearance from the Bangladesh Securities and Exchange Commission (BSEC). MTB Capital Limited has been appointed as issue manager and arranger.

Company Secretary SM Abu Talha Siddik told The Business Standard that the primary objective of the bond is to manage the company's high-cost bank liabilities more efficiently.

The move comes at a sensitive time for the drugmaker, as One Bank PLC has recently filed a case in the Money Loan Court against the company and its directors to recover defaulted loans worth around Tk150 crore. The court has already issued a public notice summoning the directors in connection with the case.

Responding to the legal dispute, Siddik said the company is in discussions with the bank and hopes for a swift resolution.

The latest financing plan comes even after Techno Drugs raised Tk100 crore through an initial public offering (IPO) under the book-building method in 2024.

Audit reports show that Tk31.47 crore from the IPO proceeds was spent on machinery acquisition and construction at its Narsingdi and Gazipur facilities, while Tk30 crore was used to partially repay bank loans, including Tk25 crore to One Bank and smaller amounts to LankaBangla Finance, Alliance Finance, and IDLC Finance.

However, the company's financial position has weakened further in FY26. For the July–March period, revenue declined 11% year-on-year to Tk232 crore, while net profit fell 16% to Tk15.54 crore.

Meanwhile, long-term loans surged to Tk239.56 crore by the end of March 2026, marking a 54% increase compared to the same period last year.

Oil prices gained ​more than 3 percent on Friday, after comments by US President Donald Trump and Iran's foreign minister further dented hopes of a ‌deal to end ship attacks and seizures around the Strait of Hormuz.

Brent crude futures settled at $109.26 a barrel, up $3.54, or 3.35 percent. US West Texas Intermediate futures finished at $105.42 a barrel, up $4.25, or 4.2 percent.

Over the week, Brent has climbed 7.84 percent and WTI 10.48 percent on uncertainty over the shaky ceasefire in the Iran war.

"The tone between the US and Iran has once ​again become significantly more confrontational. While the ceasefire holds, hopes for a swift reopening of the Strait of Hormuz have faded," Commerzbank ​analysts said.

Iran has "no trust" in the United States and is interested in negotiating only if Washington is serious, Foreign ⁠Minister Abbas Araqchi said on Friday, adding that Iran is prepared to go back to fighting but also prepared for diplomatic solutions.

Trump said he ​is running out of patience with Iran and that he has agreed with Chinese President Xi Jinping that Iran cannot be allowed to have ​a nuclear weapon and must reopen the strait. About a fifth of the world's oil and liquefied natural gas normally passes through the strait, which is the gateway to the Gulf and main export route for countries such as Saudi Arabia, Iraq and Qatar.

Xi did not comment on his discussions with Trump about Iran, though China's foreign ​ministry issued a statement.

"This conflict, which should never have happened, has no reason to continue," the ministry said.

Among deals the market was looking for from ​the US-China summit, Trump said China wants to buy oil from the United States. Trump also said he could lift sanctions on Chinese companies that buy Iranian oil.

"Market ‌focus is ⁠back on the deadlock and a blockaded Strait of Hormuz, with a tail risk of renewed military escalation," said Vandana Hari, founder of oil market analysis provider Vanda Insights.

Iran's Revolutionary Guards said that 30 vessels had crossed the strait between Wednesday evening and Thursday, still far short of the 140 a day that was typical before the war, but a substantial increase, if confirmed.

"An increasing number of vessels are filtering through the strait ... although currently ​this has a more tangible impact ​on sentiment than on the actual ⁠oil balance," PVM analyst Tamas Varga said.

The strait's closure comes at a time when reserves are running thin.

"The world has consumed its oil safety net at a historic rate," Phil Flynn, senior analyst with Price Futures ​Group, said in a note. "While strategic releases and demand reduction have prevented immediate chaos, the margin for error ​is shrinking rapidly. A ⁠prolonged closure of the Strait of Hormuz points toward tighter physical markets, potential refined product shortages, and upward pressure on prices in the coming weeks and months."

Shipping analytics firm Kpler said on Thursday that 10 ships had sailed through the strait in the past 24 hours, compared with the five to seven ⁠that have ​crossed daily in recent weeks.

"Crude is trading higher on a combination of the Trump-Xi ​meeting doing little to bring us closer to a reopening of the Strait of Hormuz, and continued Ukrainian attacks on Russian refineries," Saxo Bank analyst Ole Hansen said.

Ahead of the fiscal year 2026-27 (FY27) national budget, the government faces mounting fiscal pressure amid high inflation and low investment at a time when the global geopolitical situation remains volatile, said Prof Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue (CPD).

In an interview with The Daily Star, he said the revenue sector requires immediate attention, while trade challenges and inefficiencies in the Annual Development Programme (ADP) must also be addressed.

FISCAL PRESSURES MOUNT

Bangladesh’s upcoming national budget will be one of the most challenging in recent years, as the government grapples with inflation, debt pressure, global uncertainty, and rising public expectations, he said.

The FY27 budget will need to address “multi-dimensional challenges” amid persistently high inflation, rising living costs, weak investment, and external vulnerabilities.

He said the government inherited significant economic difficulties that cannot be ignored while preparing the budget. At the same time, it must fulfil election pledges related to healthcare, education, social protection, and employment generation.

“The government is presenting the budget against the backdrop of a difficult global environment,” he said, referring to the ongoing Middle East conflict and its impact on energy prices, import costs, and macroeconomic stability.

Rahman said people expect relief after years of inflation that have eroded purchasing power and living standards, particularly among low-income groups.

“People now expect better public services and stronger social protection from the government,” he said.

To meet those expectations without excessive borrowing, the government must prioritise domestic resource mobilisation, he argued, adding that Bangladesh cannot continue relying heavily on bank borrowing and external lenders to finance expenditure.

THREE PRIORITIES FOR REVENUE

Rahman identified three immediate priorities for the revenue sector: reducing leakages, broadening the tax base, and finding innovative sources of revenue.

He said corruption, weak governance, and inefficiencies continue to undermine tax collection, depriving the government of resources needed for public spending.

Bangladesh must expand the tax net instead of repeatedly burdening the same taxpayers, he argued. Many individuals and businesses remain outside the system, while VAT collected from consumers often does not fully reach the treasury because of leakages and weak enforcement.

“I fully endorse the proposal that rates should remain relatively low but become more universal,” he said while discussing VAT and income tax reforms.

The economist also stressed the importance of technology-driven tax administration. He welcomed moves towards online VAT registration and digitalisation but warned that isolated systems would not be effective unless they are integrated and interoperable.

Drawing comparisons with India, he said tax authorities there can compare declared income with spending patterns through integrated databases. Bangladesh could adopt similar systems to strengthen compliance and reduce tax evasion.

Rahman also suggested gradually introducing new forms of taxation, including wealth and inheritance taxes, to address widening inequality. Fiscal policy, he said, should not only raise revenue but also reduce disparities in income, consumption, and assets.

REPRIORITISE SPENDING, IMPROVE IMPLEMENTATION

On the expenditure side, Rahman said the government would need to reprioritise spending to fulfil commitments related to education, healthcare, and social safety net programmes.

The ruling party has pledged to raise spending on health and education to 5 percent of GDP each and increase social protection expenditure to at least 3 percent of GDP.

Current spending remains far below those targets, meaning resources may need to be shifted from other sectors over time, he said, warning that such decisions would be politically sensitive.

He argued that infrastructure spending could be rationalised by reducing waste, corruption, delays, and cost overruns.

“If we can ensure good value for money, then infrastructure spending as a share of GDP can be reduced without compromising outcomes,” he said.

Rahman stressed that higher allocations alone would not improve public services without better implementation and governance.

He was particularly critical of inefficiencies in the ADP, saying public projects in Bangladesh frequently suffer from inflated costs, delays, and weak oversight. On average, project costs and implementation periods rise by 30 percent to 40 percent, he said.

He called for stronger feasibility studies, tighter monitoring, and greater accountability. Projects nearing completion should receive priority, while approval of new projects should be approached more cautiously given rising debt and fiscal pressure.

The economist also warned against expanding the ADP aggressively without improving institutional capacity, procurement systems, and implementation quality.

INFLATION, TRADE CHALLENGES REMAIN KEY CONCERNS

On inflation and monetary policy, Rahman said Bangladesh faces a difficult balancing act. While high interest rates are hurting investment and job creation, inflation remains too high to justify aggressive monetary easing.

However, he argued that inflation is not driven solely by monetary factors. Weak market management, high logistics costs, inefficiencies at ports and customs, and poor supply-chain governance are also contributing to rising prices.

“If the government can improve market management and reduce the overall cost of doing business, inflationary pressure can ease even without relying only on monetary policy,” he said.

Rahman also discussed Bangladesh’s external trade challenges as the country prepares to graduate from the least developed country (LDC) category.

He said export diversification, free trade agreements, and stronger compliance standards would become increasingly important in the coming years.

Bangladesh still depends heavily on a limited number of products and export markets despite years of discussion about diversification, he noted. Meanwhile, competitors such as India and Vietnam are moving aggressively to secure free trade agreements and attract foreign investment.

To remain competitive, Bangladesh must improve logistics, reduce lead times, strengthen labour and environmental standards, and create a more investment-friendly environment, he said.

He also urged the government to treat any extension of the LDC graduation transition period as an opportunity to accelerate reforms rather than delay them.

The government has decided to begin phased implementation of a new pay structure for public sector employees from this July, according to officials familiar with the matter.

The decision was taken by Prime Minister Tarique Rahman during a high-level meeting with senior officials of the Finance Ministry on the upcoming national budget held last Wednesday, sources told TBS.

A senior finance ministry official, speaking on condition of anonymity, said today that the prime minister has approved the rollout of the new pay scale from the first day of the 2026-27 fiscal year. "There is no uncertainty. We will start receiving salaries under the new structure from July."

He added that the implementation, however, will be carried out in phases, although the exact proportion of the revised salary to be disbursed from July has not yet been finalised.

Officials said the full pay structure may be implemented over three fiscal years. Under the proposed plan, 50% of the increased basic salary could be introduced in the 2026-27 fiscal year, starting 1 July, with the remaining 50% in 2027-28. Allowances may be incorporated in 2028-29.

Also read: Govt employees to get paid under new pay scale from early next year

The phased approach is expected to ease pressure from inflation while also making fiscal management more manageable for the government.

Finance ministry officials said over Tk30,000 crore is being allocated in the next fiscal budget to cover the initial 50% increase in basic pay. In the current fiscal year, around Tk85,000 crore has been allocated for salaries and allowances of nearly 1.5 million government employees.

Accordingly, the draft budget speech prepared by Finance Minister Amir Khosru Mahmud Chowdhury reportedly includes provisions for a gradual implementation of the new pay structure. Officials said that when the finance ministry presented the implementation plan and funding strategy before the prime minister, she approved it and directed that it be made effective from July.

The interim government led by Prof Muhammad Yunus formed a National Pay Commission last year, which submitted its report to the government on 22 January. The commission recommended raising salaries and benefits of government employees by 100% to 147%, depending on grade.

Under the proposed structure, the minimum basic pay for 20th-grade employees would increase from Tk8,250 to Tk20,000, while the highest grade would rise from Tk78,000 to Tk160,000. The proposal also includes higher allowances and improved pension benefits.

The commission estimated that implementing the new pay structure for active employees would require about Tk106,000 crore, with an additional Tk25,000 crore needed for pensioners.

Given the government's revenue situation and broader macroeconomic constraints, the commission recommended a phased rollout of the revised pay structure.

European countries have entered negotiations with Iran's Revolutionary Guards navy to secure transit for their ships through the Strait of Hormuz, according to Iranian state media, following Tehran's decision to permit passage for dozens of vessels from East Asian nations that agreed to newly imposed Iranian shipping rules.

Iran has largely restricted shipping through the strategic waterway since the outbreak of war with the United States and Israel on 28 February, 2026. Although a fragile ceasefire has been in place since 8 April, the United States has continued a naval blockade on Iranian ports, says CNA.

The Strait of Hormuz, which handles roughly one-fifth of global oil and liquefied natural gas shipments during peacetime, remains a critical artery for global energy trade. The disruption has unsettled international markets and increased Tehran's leverage over maritime traffic in the region.

Iranian officials have said commercial traffic through the strait will not return to pre-war arrangements. Tehran has already begun collecting revenue from newly introduced tolls imposed on vessels using the route.

Ebrahim Azizi, head of the Iranian parliament's national security commission, said a "professional mechanism" for managing maritime traffic would be announced soon. According to Iranian officials, the system would apply only to commercial vessels and parties that "cooperate with Iran", and would involve charges for what Tehran described as "specialised services."

Iranian authorities also said the route would remain closed to operators involved in the "freedom project", a temporary US military operation established to guide stranded commercial ships through the strait.

Iranian state media confirmed that talks were underway with European countries regarding shipping access, but did not identify the nations involved.

Eastern Bank PLC (EBL) posted a 28% year-on-year rise in consolidated net profit in the first quarter of 2026, driven by higher investment income and strong foreign exchange earnings, says a press release.

According to the bank's January-March financial statement, consolidated profit after tax rose to Tk199 crore from Tk155 crore in the same period last year.

Consolidated earnings per share increased to Tk1.24 from Tk0.97 a year earlier, while net asset value per share rose to Tk32.75 from Tk26.41.

EBL Managing Director Hassan O Rashid said the bank delivered resilient performance despite slower private sector credit growth.

"We continue to remain focused on maintaining strong asset quality, liquidity and capital strength while ensuring superior financial result for our shareholders." he added.

The bank's standalone non-performing loan ratio stood at 2.80%, almost unchanged from 2.79% a year earlier and well below the industry average.

EBL's standalone capital-to-risk weighted assets ratio was 16.71%, higher than the regulatory requirement of 12.5%.

By the end of March 2026, deposits grew 20% year-on-year to Tk56,207 crore, while standalone total assets rose to Tk76,961 crore.

United Finance PLC has reported a strong start to the 2026 financial year, with its net profit after tax surging by 31% during the first quarter of the year ending 31 March.

According to the company's financial results released today (13 May), the non-bank financial institution earned a net profit of Tk0.75 crore in the January-March period, up from the corresponding period of the previous year. This growth was largely attributed to improved operational efficiency and a steady expansion across its core business segments.

The significant bottom-line growth pushed the company's earnings per share (EPS) to Tk0.04 for the three months, compared to Tk0.03 in the first quarter of 2025. The company's net asset value (NAV) per share also saw a modest improvement, rising to Tk17.94 from Tk17.90 recorded at the end of the previous year.

Contacted, Mohammed Abul Ahsan, acting managing director of the firm, said that the results reflect the positive momentum built across the organisation.

He noted that the 31% surge in net profit, combined with healthy growth in both the loan portfolio and deposit base, reaffirms the strength of the company's diversified business model.

Ahsan added that the firm remains focused on delivering sustainable returns to its shareholders while maintaining excellence in customer service.

The Bangladesh economy remained in a "fragile and uneven recovery phase" during the January–March quarter of FY2025–26, as persistent inflation, weak private investment, subdued industrial activity and external sector pressures continued to weigh on overall economic momentum, according to the Metropolitan Chamber of Commerce and Industry.

In its latest "Review of Economic Situation in Bangladesh" for Q3 of FY26, published yesterday (12 May), the business body said although the political and administrative instability that followed the transition period in late 2024 has eased considerably, the economy has yet to regain strong momentum.

"High living costs, cautious private sector sentiment and weak industrial expansion continued to weigh on overall economic performance," the report stated.

According to the review, economic growth during the January–March quarter remained modest due to slower export expansion, subdued private investment and the continuation of tight monetary policy aimed at containing inflation.

Restrictive credit conditions, elevated borrowing costs and high inflation continued to suppress domestic demand, business expansion and consumer spending during the quarter, the report said.

Despite the challenges, the chamber said strong remittance inflows continued to support the economy by stabilising foreign exchange reserves and partially offsetting the impact of a widening trade deficit.

The finance ministry is struggling to manage the sharp rise in LNG subsidy costs after international gas prices more than doubled following the Iran war.

Subsidy demand for just the first two months after the conflict started equals to the Tk8,000 crore allocated for the whole fiscal year.

Finance Division officials said monthly subsidies for LNG imports have risen to between Tk4,100 crore and Tk4,200 crore since the war began. As invoices for spot market LNG must be paid within 15 to 17 days of delivery, subsidy payments have to be released quickly.

In April, Petrobangla's deficit from LNG imports stood at Tk4,220 crore. Against this, the ministry sought Tk4,200 crore in subsidies from the finance ministry. However, the finance ministry released Tk2,500 crore in April, which Petrobangla used to cover part of the import costs.

For May, the Energy and Mineral Resources Division wrote to the finance ministry on 7 May requesting another Tk3,500 crore in subsidies, citing plans to import 11 LNG cargoes during the month.

According to the letter, signed by Senior Assistant Secretary Rafiqul Islam, Bangladesh plans to import two cargoes under long-term contracts, one under a short-term contract, and eight from the spot market in May. Six cargoes are scheduled for the first half of the month and five for the second half.

The total cost of importing these 11 cargoes is estimated at Tk7,730 crore, while Petrobangla expects to earn Tk3,630 crore from sales. This would leave a deficit of Tk4,100 crore. Only Tk500 crore has been allocated for May subsidies, creating an additional funding need of Tk3,600 crore.

The Energy Division warned that failure to pay invoices on time would trigger late payment charges. It said delayed payments could also lead to extra premium charges on LNG purchases, increasing the deficit further.

The division has therefore requested the urgent release of Tk1,999 crore by 15 May and another Tk1,610 crore by 31 May in favour of Petrobangla to meet May's LNG subsidy requirements.

The Bangladesh Bank has issued the "CIBRR-1 Economic Development Sukuk", with total bids worth nearly 12.30 times the offered amount, reflecting strong investor demand for the latest government Islamic investment instrument.

According to a press release, the auction was held for the 8th Bangladesh Government Investment Sukuk, issued against the Rural Road Important Bridge Construction Project, with a face value of Tk5,900 crore and a tenure of 7 years. The Sukuk carries an annual lease return (rent rate) of 10.40%.

The central bank said a total of Tk72,597.94 crore in bids was submitted by a wide range of investors, including Islamic banks and financial institutions, Islamic banking branches and windows of conventional banks, individual investors, and provident funds. As the bids exceeded the issued amount by around 12.30 times, allocation was made on a proportional basis among investors.

For the first time, the Sukuk auction was conducted using the Bangladesh Bank's in-house digital platform, the Shariah Securities Module (SSM).

The central bank said the Sukuk issuance is enabling the government to channel liquidity from Shariah-based banks and financial institutions into development projects, while also creating alternative investment avenues for Islamic financial institutions.

It further noted that the instrument provides individual investors in the country with opportunities to invest in Shariah-compliant securities.

Banks and financial institutions will be able to use the Sukuk as part of their Statutory Liquidity Reserve (SLR), while Islamic banking branches and windows of conventional banks can use holdings of the Sukuk as collateral to access the Islamic Banks Liquidity Facility (IBLF) from Bangladesh Bank.

From 14 May 2026, Shariah-based banks, financial institutions, Islamic insurance companies, conventional banks and insurers, Islamic banking branches and windows, as well as individual investors, will be able to buy and sell the Sukuk in the secondary market, the central bank said.

In total, Tk441.62 crore worth of Sukuk was allocated against 1,011 successful bids from individual investors, provident funds, mutual funds and deposit insurance-related categories.

The Bangladesh Bank said the 8th government investment Sukuk is expected to play a positive role in improving rural infrastructure and socio-economic conditions in the project area through the development of bridges and rural roads.

United States (US) Ambassador to Bangladesh Brent T. Christensen has discussed expanding energy cooperation with leading American energy companies, reaffirming Washington's commitment to supporting Bangladesh's growing energy and infrastructure needs.

The envoy met Javier La Rosa, President of Chevron, to discuss ongoing cooperation in Bangladesh's energy sector, the US embassy in Dhaka said today (13 May).

The embassy said Chevron currently supplies nearly 60 percent of Bangladesh's natural gas, helping power homes, industries and economic activities across the country.

The US ambassador also held talks with Steven Kobos, president and chief executive officer of Excelerate Energy, on meeting Bangladesh's growing energy demand through American innovation and expanded LNG and energy infrastructure.

The discussions focused on delivering cleaner and more reliable energy to households and businesses, the embassy said.

The envoy recently led a delegation of 25 Bangladeshi business leaders to the SelectUSA Investment Summit in Washington, D.C.

Meanwhile, Assistant US Trade Representative Brendan Lynch recently visited Bangladesh and held meetings with government officials, business leaders, companies and labour organisations.

The two sides discussed ways to strengthen bilateral trade and investment ties through implementation of the US-Bangladesh agreement on reciprocal trade aimed at improving market access, removing investment barriers and expanding commercial opportunities.

Remittance disbursement through agent banking outlets in Bangladesh is growing because of their rising popularity as rural households find the service convenient.

During the January-March period of 2026, agent banking outlets handled Tk 8,959.8 crore in inward remittances, posting a 15 percent year-on-year increase. Banks disbursed Tk 7,814 crore in remittances in the first quarter of 2025.
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The amount of remittance disbursement, a key pillar for net-importing Bangladesh, accounted for 7.4 percent of the country’s total remittance inflows during January-March 2026.

However, remittance inflows through agent banking were overwhelmingly concentrated in rural areas, according to the latest Bangladesh Bank quarterly report on agent banking statistics published yesterday.

The report said that of the total remittances received through agent banking outlets during the quarter, Tk 8,133 crore, or more than 90 percent, went to rural areas, while urban areas received Tk 826.6 crore, which was less than one-tenth of the amount.

The BB said remittances received in rural areas through the agent banking channel were 9.8 times higher than those received in urban areas.

The central bank earlier said agents were contributing significantly to remittance disbursement since customers were able to receive doorstep banking services within the shortest possible time.

“Agent banking operations in remote areas remove the gap created by the insufficient presence of bank branches, thereby enhancing accessibility to financial services for marginalised communities,” said the BB’s latest report.

Agent banking provides an efficient and cost-effective alternative to traditional branch banking, enabling broader access to financial services and facilitating economic development.

The BB said 30 scheduled banks were operating agent banking services through 20,339 active outlets. On average, each outlet serves approximately 8,551 people in Bangladesh.

More than 85 percent of the outlets are located in rural areas, highlighting banks’ focus on extending formal financial services beyond urban centres.

As such, agent banking transactions remained heavily rural-centric.

During January-March 2026, agent banking outlets handled transactions worth Tk 1.43 lakh crore, mostly in rural areas, said the BB, which introduced agent banking in 2013 as an alternative delivery channel to expand banking services in remote and underserved regions.

The BB report said that at the end of March 2026, total deposits held through agent banking accounts stood at more than Tk 50,560 crore, marking an 18.6 percent increase from a year earlier. Rural areas accounted for Tk 41,695 crore of the deposits.

Deposit growth was higher in urban areas than in rural areas.

At the end of March 2026, total outstanding loans stood at Tk 11,906 crore, with urban areas accounting for 37 percent of the total outstanding amount.

The BB data showed that outstanding loans were nearly one-fourth of the total deposit balance at agent banking outlets.

The BB also highlighted growing female participation in agent banking activities.

The central bank said that in March 2026, the number of female-owned agents increased compared with March 2025, while deposit accounts owned by women increased noticeably.

“Both deposit and loan accounts for women increased,” said the report, adding that deposit accounts owned by women rose by 8 percent in March from a year earlier.

The Board of Directors of Bangladesh Bank (BB) has given primary approval to the liquidation of five Non-Bank Financial Institutions (NBFIs) that are struggling with massive loan defaults and an inability to repay depositors.
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The liquidation process for these institutions is expected to commence in July, according to sources privy to the decision made during a board meeting chaired by Governor Mostaqur Rahman on Tuesday.

The five institutions slated for liquidation are FAS Finance, Fareast Finance, Aviva Finance, People's Leasing and Financial Services, and International Leasing and Financial Services.

According to the central bank data, the non-performing loan (NPL) ratios of these institutions have reached critical levels, ranging from 93 per cent to nearly 100 per cent. Due to their prolonged failure to recover loans, they have been unable to honour withdrawal requests from depositors.

The central bank plans to shut down these entities under the Bank Resolution Act 2026. As part of the process, it will appoint one of its directors as an administrator for each institution, assisted by two additional officials. These institutions will eventually be declared defunct.

Central bank officials estimate that approximately Tk 50 billion will be required to return funds to individual depositors. The central bank reportedly moved forward with the liquidation decision after receiving positive assurances from the government regarding fund allocation in the upcoming national budget.

The Bank Resolution Act provides a framework for the merger, restructuring, or closure of financially distressed institutions and dictates how assets should be liquidated to pay off creditors.

The decision follows a lengthy review process. In May last year, the central bank issued show-cause notices to 20 NBFIs for high NPLs and failure to return deposits. Later, nine institutions with unsatisfactory recovery plans were earmarked for closure. That list was trimmed to six in January and finally to five, with Premier Leasing being excluded from the current final list.

The financial health of these entities, as of December last, paints a dire picture with FAS Finance having 99.99 per cent NPL ratio, International Leasing 99.44 per cent, Fareast Finance 98.50 per cent, People's Leasing 95 per cent and Aviva Finance 93.93 per cent NPL ratio.

Industry insiders attribute this collapse to years of systemic irregularities, corruption, and massive loan scams. Notably, disgraced businessman PK Halder is accused of embezzling at least Tk 35 billion from four institutions: People's Leasing, International Leasing, FAS Finance, and BIFC.

Bangladesh's pharmaceutical industry may face major pressure after the country graduates from Least Developed Country (LDC) status, stakeholders warned.

They said many medicines currently produced under patent waiver facilities may no longer be manufactured without licences from international companies once those benefits end. This could raise production costs and push up medicine prices.

Experts said Bangladesh will struggle to remain competitive in international markets unless investment in research and development (R&D) increases.They also warned that next-generation medicines for cancer and other complex diseases could become unaffordable for ordinary people.
The issues were discussed today (13 May) at a workshop held at Pan Pacific Sonargaon Hotel in the capital. The inception workshop, titled "Strengthening Competitiveness and Innovation of the Pharmaceutical Industry for Sustainable Growth in the Context of LDC Graduation," was jointly organised by the Asian Development Bank (ADB) and the Health Economics Institute.

The keynote paper was presented by health economist Professor Dr Syed Abdul Hamid. He said Bangladesh is currently able to produce many generic medicines without licences from global companies, helping keep production costs low and prices affordable.

"The situation may change after LDC benefits expire," he said.

"Production of newly patented medicines would then require licences, compliance with international standards, and mandatory bioequivalence and biosimilar testing. Most local firms are not yet fully prepared for this, meaning tests may need to be conducted abroad, increasing costs," the professor added.