Amid record highs in the global market, gold prices soared to a new peak of Tk 269,788 per bhori in the local market, breaking all previous records.

Bangladesh Jewellers Association (Bajus) announced the new rate yesterday, made effective the same day.

The price has increased by 2.80 percent or Tk 7,348 per bhori (11.664 grammes) from the previous rate of Tk 262,440.

In the announcement, Bajus said prices of pure gold have increased in the market.

Gold prices shot to record levels above $5,200 in the international market yesterday, as investors sought a safe haven amid global political tensions.

Businesspeople said the country’s retail gold market has remained volatile in recent months, influenced by fluctuations in global gold prices, steadily rising costs of pure gold, and ongoing economic uncertainty.

Gold first crossed Tk 50,000 per bhori in January 2018. Five years later, in July 2023, it surpassed Tk 100,000.

Prices climbed to Tk 150,000 per bhori in February 2025 and later surged past the Tk 200,000 mark within the same year.

Adversity sometimes moves things along like nothing else. Under pressure from the threat of Washington’s tariffs, India and the European Union on Tuesday agreed the contours of a trade deal after muddling through stop-start negotiations for nearly 19 years. The deal could significantly ease market access for both partners sharing a 180 billion euro ($214 billion) trade relationship. Yet the handicaps that the South Asian country is trying to overcome by easing protectionism are precisely what skews the terms in Brussels’ favour.

India agreed to lower duties on high-end cars and liquor, which could improve the presence of European companies from Volkswagen to Renault that have so far found the world’s fifth largest economy difficult to tap. In exchange, it secured in one shot a major market for goods from shrimps to textiles that might get locked out of the US due to a punitive 50 percent tariff. Indian services firms will also gain steadier access to sectors from information technology to education.

The benefits seem lopsided, though. Most Indian goods only faced an average EU duty of only 3.3 percent, data by the World Trade Organization shows. Also, Brussels hasn’t acceded to easing its carbon tax rules. By contrast, European industries were subject to tariffs above 10 percent on average, with machinery and car makers facing duties of 44 percent and 110 percent, respectively. Those will now be slashed to zero and 10 percent.

The EU’s overall gains are still small, but the comparison with the less advantageous trade deal that Britain signed with India last year drives home the importance of having a big domestic market. Brussels could sell small concessions as big boons because it only exports 2 percent of its goods to India, while being home to 18 percent of Indian sales.

To be sure, New Delhi takes on limited risks. Indian farmers and dairy producers will remain protected even as import levies on less sensitive goods like olive oil and fruit juices gradually drop to zero. Car tariffs will come down slowly, buying time for local manufacturers like Tata Motors Passenger Vehicles and Mahindra & Mahindra to adjust, and will still apply to marques priced above 15,000 euros ($17,832).

For India, this is a long-term gamble to further its ambition of becoming an export powerhouse, which requires reversing weak foreign direct investment and bringing in superior technical knowhow in industries from car manufacturing to medical equipment. Exposure to the discipline of foreign markets, namely the EU’s strict health and safety rules, is a necessary step to ape the development experience of Japan, South Korea and China.

In the meantime, however, the poor quality of Indian products could make it hard to penetrate new markets. It’s one reason India’s trade deficit with the Association of South East Asian Nations has been growing despite safeguards from a deal signed in 2009. At least for now, Brussels seems to have gained the better end of the deal.

India and the European Union on January 27 announced the completion of a long-pending trade deal. The agreement is expected to double the EU’s goods exports to India by 2032 by eliminating or reducing tariffs in 96.6 percent of goods by value and save around 4 billion euros ($4.75 billion) per year in duties, the EU said.

The 27-nation bloc will cut duties on 99.5 percent of goods traded over seven years, with tariffs on Indian marine goods, leather and textile products, chemicals, rubber, base metals and gems and jewellery falling to zero on entry, India’s trade ministry said in a statement.

New Delhi will slash tariffs on cars to 10 percent over five years from as high as 110 percent, according to an EU statement. Levies on alcoholic beverages like wines will drop to 75 percent immediately from 150 percent, and will be lowered to 20 percent gradually, while those on spirits will be lowered to 40 percent, the statement added.

The government has drafted a comprehensive long-term plan aiming to transition the country's farming sector into a sustainable, innovation-driven, and highly productive industry by 2050.

The draft of the plan titled "Transforming Bangladesh Agriculture: Outlook 2050" was presented at a national workshop held at a hotel in Dhaka yesterday (28 January). The workshop was jointly organised by the agriculture ministry and the Food and Agriculture Organization of the United Nations (FAO).

Participants were told that background studies were initially carried out across 13 thematic areas, including nutrition security, climate resilience, agricultural value addition, agricultural technology, agricultural education and skills development, and agricultural market management.

FAO and UNDP provided technical support for these studies, and detailed strategies and targets have been set for each theme.

For each thematic area, feasibility studies were conducted based on data analysis, trend assessment and demand-supply projections up to 2050.

As part of the process, regional consultation meetings were held across all 14 agricultural regions of the country to reflect agro-ecological conditions, farming practices and market realities. These consultations, with participation from farmers and other stakeholders, identified regional priorities, implementation challenges and investment opportunities.

Plan structure and consultation process

The plan has been divided into seven chapters, covering the background and formulation process, the current state of the agriculture sector, future challenges and opportunities, supporting policies and regulatory frameworks, integrated findings from the 13 thematic studies, phased implementation plans, and an investment framework aligned with national plans. It also includes a monitoring and evaluation mechanism to track progress and allow necessary adjustments.

At the workshop, Abu Noman Faruq Ahmmed, a registered trainer of GlobalGAP and a professor at Sher-e-Bangla Agricultural University, presented papers on GAP, SPS compliance, pest management and soil health.

He said the target is to bring 3,00,000 hectares of land under Good Agricultural Practices (GAP) certification by 2028 to ensure food safety, while 70% of farmland is planned to be brought under integrated pest management and bio-pesticide use by 2050.

"To ensure safe food, we have set a target to bring three lakh hectares of land under GAP certification by 2028," Ahmmed said.

He added that soil health protection would focus on increasing soil organic matter, correcting salinity and acidity, and promoting balanced fertiliser use through digital soil health cards.

Long-term vision and implementation outlook

Addressing as chief guest, Agriculture Adviser Lieutenant General (retd) Md Jahangir Alam Chowdhury said, "The transformation of agriculture over the next 25 years will play a key role in improving living standards, ensuring food security and advancing rural development."

He added that successful implementation of the plan would be important not only for agriculture, but also for the country's overall economic progress.

Officials involved in drafting the plan said the Outlook 2050 was prepared through a participatory process at both national and regional levels. The process included consultations with ministries and departments, research institutions, the Department of Agricultural Extension, policymakers, researchers, academics, professional and business organisations, agricultural entrepreneurs, civil society representatives, media professionals, farmer organisations and development partners.

They said multiple workshops and discussion meetings were held to reflect regional and national needs and challenges, adding that feedback from the national workshop would also be incorporated into the final document.

Bangladesh received reduced foreign loans in the first half of the current fiscal year (FY) 2025-26 as the execution of foreign-funded projects under the Annual Development Programme (ADP) fell to its lowest level in at least five years.

During the July-December period, the country received $2.49 billion from international financial institutions, namely the World Bank and the Asian Development Bank (ADB), as well as bilateral lenders such as Russia, China, Japan, and India.

This represented a 29 percent year-on-year decline in fund releases, according to data from the Economic Relations Division (ERD) of the finance ministry.

During the same period, the implementation of foreign-funded ADP projects stood at 18.58 percent, down from 19.61 percent in the first half of FY2024-25, according to the Implementation Monitoring and Evaluation Division under the planning ministry.

Expenditure on projects tied to foreign loans also fell sharply in absolute terms amid political uncertainty.

Earlier this month, the Centre for Policy Dialogue (CPD) recommended giving top priority to implementing all foreign-funded ADP projects, citing the current state of the country’s foreign exchange reserves.

ERD data showed that commitments of financing from international and bilateral lenders declined as lenders awaited the country’s political transition ahead of the national election scheduled for February 12.

ERD said funding promises fell 13 percent year-on-year to $1.99 billion during July-December of FY2025-26, with the ADB pledging $1.26 billion of the total.

Despite the decline in both commitments and disbursements, pressure to repay foreign loans increased.

Bangladesh’s debt servicing rose 11 percent year-on-year, amounting to $21.9 billion during the same period.

With the national election two weeks away, Bangladesh's stock market is trading at valuation levels last seen two decades ago, yet investor confidence remains conspicuously absent.

Defying the pre-election rallies seen in the recent past, the benchmark DSEX has remained under pressure, exposing a market weighed down not just by political uncertainty but also by deeper economic and structural weaknesses.

Data from the Dhaka Stock Exchange (DSE) show the market's price-to-earnings (P/E) ratio slid to 8.6 times by the end of November 2025 – near its lowest point since January 2004 and far below the long-term average of 15-20 times.

Despite such low valuations, turnover has remained muted and selling pressure has dominated most sessions in recent weeks, signalling a lack of confidence among both retail and institutional investors.

Market participants say the failure of cheap valuations to trigger a rebound reflects a convergence of headwinds: elevated interest rates that have pushed risk-free government bond yields above 10%, losses that have weakened institutional balance sheets, reduced foreign investor participation, and concerns over earnings quality, particularly in banks and financial institutions.

As a result, expectations of a post-election recovery now hinge less on sentiment and more on whether macroeconomic stability and policy support materialise.

Professor Abu Ahmed, a former teacher of economics at the University of Dhaka and the current chairman of the Investment Corporation of Bangladesh (ICB), told The Business Standard that most stocks remain undervalued, with some blue-chip shares trading at discounts of 30% to 40%.

He expressed the hope that, after the election, the new government would take steps to support the capital market and the broader economy, including a shift from contractionary to expansionary monetary policy and a lower interest rate regime for treasury bill and bond market, which could help divert funds back into equities.

Analysts say the capital market is currently deeply depressed, marked by low participation from institutional investors, a lack of fresh fund inflows, reduced foreign investment, and a challenging situation for large investors, many of whom have seen over 30% erosion in their portfolios and remain stuck amid prolonged volatility.

Moreover, government treasury bills and bonds are now offering risk-free returns of over 10%, with yields going as high as 12%, attracting institutional investors seeking secure earnings amid a volatile market.

Asif Khan, chairman of EDGE Asset Management Company, told TBS, "It is true that the market has been fairly weak recently. Most investors cite political uncertainty, high interest rates, and other factors as the main causes."

Referring to DSE data, he noted that the market's P/E ratio stood at just 8.6 times in November, one of the lowest levels in the past 20 years. He also pointed out that the market has remained bearish for four consecutive years, from 2021 to 2025.

"Some monetary easing and a smooth election could pave the way for a strong year for the DSE in 2026," he said.

Pre-election pattern breaks

Historically, the capital market has often gained momentum in the month before national elections. Data show that under the interim government in December 2008, ahead of the ninth parliamentary election, the DSEX rose by more than 250 points.

This time, however, the pattern has reversed. The current election is also scheduled under an interim government, but the market has been volatile in the run-up to polling.

In December, over 20 trading sessions, the DSEX lost a total of 299 points in 13 sessions, while gaining 223 points in the remaining sessions, resulting in a net decline of 76 points.

According to recent DSE data, following the announcement of the election schedule, stocks traded for 22 consecutive days, with 12 sessions ending in declines and the index remaining largely in negative territory.

Looking back, the DSEX rose by 252 points during the election month of December 2008. Before the tenth national election in January 2014, the index gained 83 points, while ahead of the eleventh election in December 2018, it rose by 94.8 points. Before the last election in January 2024, the index increased by 21 points.

An exception to the recent weakness was seen on Sunday, the first trading day of the week, when the DSEX jumped by 76 points as several blue-chip and insurance stocks surged.

Saiful Islam, president of the DSE Brokers Association, told TBS that the capital market has historically gained momentum ahead of elections, driven by hopes surrounding new government and policy expectations.

"This year, the capital market has yet to gain election momentum, but I hope it will pick up once the election manifestos are released," he said.

However, he cautioned that investors must act responsibly during trading.

"During the last two major market debacles in 1996 and 2010, momentum built up before the elections, but the market eventually suffered afterwards," he said.

Saiful also pointed to a shortage of quality stocks. "We have urged the listing of good, fundamentally strong companies, but uncertainty remains over how many banks and non-bank financial institutions will survive. Most stocks are now junk, which discourages investors."

"Moreover, high interest rates are creating obstacles to channeling funds into the capital market, as many large investors prefer treasury bonds and bills," he added.

Still, he hoped for a rebound after the election if the new government takes steps to develop the market.

Economic headwinds cloud outlook

Calling the current situation unusual, Akramul Alam, head of research at Royal Capital, told TBS that the market ahead of this election looks very different from previous cycles.

"Earlier elections were largely routine, but the situation this time is different," he said, pointing to strong economic headwinds, including the highest level of non-performing loans in the region, sluggish private sector credit growth, and challenges such as the energy crisis, all of which are weighing on business expansion and investment.

"While the capital market may experience temporary momentum before or after the election, sustaining it requires improvements in macroeconomic conditions. Any short-term rally alone will not be sustainable," he added.

Akramul also noted that interest rates on treasury bonds need to fall, as investors earning 11% to 12% risk-free returns are unlikely to move into equities. At the same time, private sector credit growth must pick up, alongside a broader shift from contractionary to expansionary policies to encourage investment.

Nazrul Islam, former president of the Bangladesh Merchant Bankers Association, echoed similar concerns, saying many institutions remain on the sidelines because they lack the capacity to inject fresh funds after suffering losses from recent volatility.

He said around 50% institutions have experienced significant portfolio erosion. "Despite what appears to be a better time to invest now, they are unable to participate due to a lack of fresh funds," he said.

A managing director of a leading brokerage firm, speaking on condition of anonymity, added that the recent merger of five banks has severely affected investors, with some investments wiped out entirely.

He further noted that the Investment Corporation of Bangladesh, which plays a key role in supporting the capital market, is itself under strain and seeking government support.

"Without fresh fund inflows, the capital market cannot remain vibrant or gain momentum," he said.

Despite increasing consolidated sales, Runner Automobiles, a listed company on the stock exchanges, incurred a loss of Tk1.41 crore with a per-share loss of Tk0.12 in the second quarter (October-December) of the current fiscal year.

At the end of the first half, its profit stood at Tk2.93 crore with an earnings per share (EPS) of Tk0.26 for the July-December period, as it earned a profit of Tk4.34 crore in the first quarter (July-September).

Runner Automobiles said its revenue for the quarter was impacted by unavoidable supply chain disruptions in the three-wheeler (3W) segment.

According to its financial statements, sales at Runner Automobile PLC fell to Tk134.31 crore in the second quarter, down from Tk157.14 crore in the same period of the previous fiscal year.

But its subsidiary Runner Motors witnessed a year-on-year jumps in sales by 42% to Tk163.79 crore in Q2.

Half-yearly sales grow 31%

Its report showed that total sales in the first half (H1) of the current fiscal year rose by 31%, driven largely by a sharp increase in truck, pickup and tractor sales.

Revenue for the July-December period climbed to Tk592.18 crore, up from Tk451.30 crore in the same quarter of FY25.

While its truck, pickup and tractor sales under Runner Motors witnessed 75.67% jumps to Tk306.09 crore, which was Tk174.24 crore in the same time of the previous fiscal year.

The parent entity Runner Automobiles manufactures motor cycles, whereas its subsidiary Runner Motors is involved in import and marketing of trucks, pickups and tractors.

Runner Motors is an exclusive distributor of EICHER Motors of India used to market EICHER brand (LCV and MCV) trucks in Bangladesh.

The dollar struggled to bounce back Wednesday following another selloff fuelled by Donald Trump’s suggestion he was happy with the currency’s recent decline, while tech firms helped most Asian equity markets extend their rally.

Traders are also keeping an eye on the Federal Reserve’s latest meeting, hoping for some guidance on its plans for interest rates amid uncertainty over the US president’s policies following his latest tariff threats.

The greenback has retreated across the board this week following reports that the New York Fed had checked in with traders about the yen’s exchange rate, which fuelled talk that US and Japanese officials were prepared to stage a joint intervention.

That led to speculation the White House was prepared to let the dollar weaken, and Trump did little to dismiss that when asked Tuesday if he was worried about the decline.

“No, I think it’s great,” he told reporters in Iowa as the unit hit its weakest level against the euro in four-and-a-half years and a two-and-half-month low against the yen. “Look at the business we’re doing. The dollar’s doing great.”

He added: “I want it to be -- just seek its own level, which is the fair thing to do.”

The dollar also sank against the pound, South Korean won and Chinese yuan, with a slight bump Wednesday doing little to recover its latest losses.

Observers said unease about Trump’s latest tariff outbursts, including threats against European nations over their opposition to his Greenland grab and a warning to Canada over its trade talks with China, have also dented faith in US assets and weighed on the unit.

Meanwhile, US consumer confidence plunged to its lowest level since 2014, a survey showed, as households fret about inflation and the elevated cost of living.

Win Thin, at Bank of Nassau 1982 Ltd, said: “Foreign exchange typically is the leader in terms of showing market discomfort with a country’s policies and economic outlook, so this dollar weakness bears watching.”

Still, equity markets performed well in Asia after the S&P 500 clocked another record high in New York thanks to a surge in tech titans including Apple, Microsoft and Amazon.

That helped Seoul to be among the best performers again -- hitting another all-time peak -- as chipmakers Samsung and SK hynix rallied.

There were also big gains in Tokyo, Hong Kong, Shanghai, Taipei, Manila, Mumbai and Bangkok.

London and Frankfurt were flat at the open, while Paris fell.

Jakarta plunged more than eight percent -- its heftiest fall in more than nine months -- after index compiler MSCI called on regulators to look into ownership concerns and said it would hold off adding Indonesian stocks to its indexes or increasing their weighting.

The plunge saw market heavyweights including PT Bumi Resources and PT Petrosea lose around 15 percent.

MSCI said “investors highlighted that fundamental investability issues persist due to ongoing opacity in shareholding structures and concerns about possible coordinated trading behaviour that undermines proper price formation”.

Sydney, Singapore and Wellington dipped.

Traders are keeping a close watch on earnings this week from some of Wall Street’s Magnificent Seven, with Microsoft, Meta, Tesla and Apple all reporting.

“These results will provide critical insights into the trajectory of the artificial intelligence trade,” wrote Tony Sycamore, market analyst at IG.

“After losing momentum in the final months of 2025 due to growing scrutiny over return on investment, capital expenditure and real-world constraints, the market is eager to see if the AI narrative can regain traction in 2026.

“Forward guidance will be key, alongside scrutiny of margins and capex projections.”

In company news, tech investment titan SoftBank jumped almost six percent after the Wall Street Journal reported it was in talks to pump an additional $30 billion into ChatGPT developer OpenAI.

That comes after it invested $22.5 billion last month for an 11 percent stake.

The Ministry of Finance (MoF) has opened discussions on a potential stock-market listing of the Central Depository Bangladesh Limited (CDBL), a move that could reshape the governance and transparency of a key institution underpinning the country's capital markets.Banking services comparison

The issue was raised at a high-level meeting in the Finance Division conference room on Wednesday as part of a broader review of reforms aimed at strengthening market infrastructure.

Established in 2000, CDBL is a state-run depository system that facilitates the electronic trading and settlement of securities.

While no immediate decision was reached, officials agreed to examine the feasibility of listing the CDBL, signalling renewed attention to long-pending structural changes in the stock market ecosystem amid ongoing reform efforts.

The meeting was attended by Financial Institutions Division Secretary Nazma Mobarek, the chairpersons of the Bangladesh Securities and Exchange Commission (BSEC), Dhaka Stock Exchange (DSE), CDBL and Central Counterparty Bangladesh Limited (CCBL), as well as the managing director of the Chittagong Stock Exchange (CSE).

Speaking to The Financial Express, Ms Mobarek said the meeting reviewed a range of issues aimed at strengthening and developing the stock market.

She said a committee headed by Dr Anisuzzaman Chowdhury, Special Assistant to the Chief Adviser, had submitted a set of reform recommendations covering the DSE, CSE, CDBL and CCBL, among other institutions.

"Primarily, we discussed the recommendations and decided to implement them," She added.Newspaper subscription

Sources said the meeting also discussed the possibility of making CCBL a subsidiary of the DSE, although no decision was taken on this matter.

The committee recommended measures to enhance technological capacity across the capital market to reduce risks for investors, market intermediaries, stock exchanges, CDBL, CCBL and other related institutions.

Among the proposals were setting CDBL charges based on trading volume rather than transaction value, and verifying the national identification numbers of individual investors when opening beneficiary owner accounts with CDBL.

These steps aim to reduce market manipulation, unfair advantages and herd behaviour among investors.

The committee also called for immediate measures to strengthen the capacity of CCBL so that it can effectively perform its clearing and settlement functions, ensuring a transparent post-trade environment that mitigates risk and aligns with international best practices.

Other recommendations included revising the criteria for appointing independent directors to stock exchanges and easing overly restrictive rules that currently limit the pool of qualified candidates.

The committee suggested allowing an independent director of a stock exchange to serve as an independent director of up to three listed companies, and permitting such directors to buy and sell shares of listed firms.

The committee further recommended the removal of floor prices for all securities and ensuring that the prices of newly listed securities remain unregulated on the first day of trading.

In addition, it proposed initiatives to bring new products to the capital market, including exchange-traded funds (ETFs), real estate investment trusts (REITs), green bonds, orange bonds, sustainable bonds, sukuk and specialised derivatives.

The recommendations also emphasised the need to encourage the supply of mutual and unit funds in line with investor demand, and to introduce electronic trading for all capital market intermediaries to reduce manipulation and restore investor confidence.

India's gold and silver imports surged to record levels last year, sparking concern among policymakers, with the government having few effective tools to curb inflows that have remained resilient despite sky-high prices for the precious metals.

The country's gold imports rose 1.6% from a year earlier to $58.9 billion in 2025, while silver imports jumped 44% to $9.2 billion, as prices of both metals hit record highs.

Why target gold and silver imports?

India is the world's second-largest consumer of gold and the biggest market for silver, but it meets almost all of its gold demand through imports and relies on overseas supplies for more than 80% of its silver needs.

The country spent nearly a tenth of its total foreign exchange reserves on gold and silver last year, and the import bill is expected to rise further in 2026 as prices of both metals continue to surge.

Rising imports have widened the trade deficit and added pressure on the rupee, which hit a record low this month.

Unlike silver, which has industrial applications ranging from solar power to electronics, gold is largely used for jewellery and investment. The government views such demand as non-essential and has repeatedly sought to curb it by raising import duties, making the metal more expensive for buyers.

Why are traders speculating about a duty hike?

With gold and silver prices touching record highs, the value of imports could rise sharply even if volumes do not, stoking concerns about a widening trade deficit and further weakening of the rupee, which has already slid significantly against the dollar.

Trade and industry officials say these concerns could prompt the government to raise import duties on gold and silver in the coming weeks.

In 2012 and 2013, the government sharply raised duties on gold imports to stabilize a rapidly depreciating rupee. With the currency losing ground again recently, traders speculate a new hike may be coming in coming weeks to reverse duty cuts made in 2024. At that time, India cut import duties on both metals to 6% from 15% to curb smuggling.

Gold and silver are already trading at a premium to global benchmarks as markets price in a potential increase in duties.

Why has Indian gold demand not slumped despite high prices?

Jewellery accounted for more than three-fourths of India's total demand until 2023. Gold prices in the international market have risen 98% since the beginning of 2025 and while that has hit jewellery buying in India, overall demand has not slumped because investment demand has risen.

Indians are increasingly buying coins and bars in the physical market, while a growing number of investors are turning to exchange-traded funds. ETF inflows jumped 283% in 2025 from a year earlier to a record 429.6 billion rupees ($4.69 billion). As a result, the share of investment demand in India's total consumption of gold rose above 40% in 2025 and is expected to increase further in 2026.

Gold and silver ETFs are investment funds that trade on stock exchanges like shares and are backed by physical gold and silver bars held in secure vaults.

Can a duty hike reduce gold demand?

India has repeatedly tried to curb gold imports by raising duties, but with little success. When New Delhi lifted the import tax on gold to 10% in August, 2013 from 2%, demand held steady despite the increase.

Domestic gold prices have risen from about 8,000 rupees per 10 grams in early 2006 to around 162,000 rupees now, but the rally has failed to significantly reduce annual demand. A fresh duty hike of 4 to 6 percentage points is therefore unlikely to deter buyers, who absorbed a 76.5% jump in prices in 2025.

Higher duties could, however, enhance investor returns and increase smuggling. Inflows into gold ETFs have been strong in recent months and are expected to remain firm, as investors turn to bullion amid weak equity market returns.

A sharp price drop could weaken investment demand but boost jewellery sales as buyers waiting for a correction return.

Why are silver imports also becoming a cause for concern?

Silver prices have risen faster than gold, pushing up India's import bill. Until last year, silver demand was mainly driven by rising industrial consumption, but in recent months investment demand has been supporting imports.

Silver ETFs saw inflows of 234.7 billion rupees in 2025, up from just 85.69 billion rupees a year earlier. The growing popularity of silver ETFs suggests imports for investment purposes could rise further if the price rally continues.

Imagine a factory owner forced to start repaying bank loans before the factory produces a single product. Inevitably, financial stress and eventual default would almost be assured.

That, in effect, is what is happening to the Bangladesh government. The key difference is that, unlike private borrowers, governments do not default; instead, the repayment burden is passed on to taxpayers.

A recent review by the Economic Relations Division (ERD) shows that grace periods of four to six years have already expired for 29 World Bank–financed projects, even though Bangladesh has failed to utilise $1.93 billion of the borrowed funds. As a result, loan repayments are beginning before many projects are completed, pushing up debt-servicing costs and adding to fiscal pressure.

What a grace period is and why it matters

In international lending, a grace period refers to the initial, specified timeframe after a loan agreement is signed during which the borrower is not required to repay the principal amount. While principal repayment is deferred, interest may still accrue or be payable, giving borrowers time to start projects, generate returns and put financing structures in place.

Such grace periods are designed as a cushion, particularly for developing countries, allowing projects to become operational and deliver benefits before the burden of repayment begins. When that cushion erodes, repayments start early, often before projects are capable of generating economic or fiscal returns.

Structural mismatch at the core

ERD officials say the problem stems from a structural mismatch between the World Bank's financing framework and Bangladesh's project approval process.

Under World Bank rules, grace periods begin immediately after board approval. In Bangladesh, however, it often takes up to two years after board approval to complete feasibility studies, prepare development project proposals, secure inter-ministerial clearances and obtain final approval from the Executive Committee of the National Economic Council (Ecnec). Loan agreements are signed only after Ecnec approval.

As a result, a substantial portion of the grace period is consumed before projects even become operational.

ERD officials admit that negotiations with the World Bank frequently begin without adequate preparatory work. Once negotiations conclude, board approval follows relatively quickly, while domestic procedures move slowly.

"Our projects are like premature babies — they often need treatment, from extending completion timelines to escalating costs," a senior ERD official told The Business Standard. "We have decided we will not take loans without full readiness."

$1.9bn stuck after grace periods expire

According to the ERD report, several large projects still have substantial undisbursed loan amounts even though their grace periods have already expired.

These include the Western Economic Corridor and Regional Enhancement Programme (Phase I) with $444.64 million undisbursed; the Dhaka Sanitation Improvement Project ($144.18 million); Operation for Supporting Rural Bridges ($152.39 million); Livestock and Dairy Development ($141 million); the Regional Waterway Transport Project ($91 million); Enhancing Digital Government and Economy ($63 million); and Enhancement and Strengthening of Power Transmission ($54.66 million).

While disbursement deadlines can be extended, ERD officials noted that grace periods are never extended, permanently shortening the concessional window and eroding the benefits of low-cost financing.

Strategy shift — but only recently

A senior ERD official, speaking on condition of anonymity, said Bangladesh had previously entered loan negotiations without sufficient preparation, partly due to pressure from the World Bank.

That approach is now changing, the official said. Even when the World Bank signals that delays could result in financing being redirected to other countries, ERD is no longer accommodating such pressure. Instead, preparatory work is now being completed before negotiations begin, leading to delays in several planned loans in the current fiscal year.

While this may reduce World Bank lending in the short term, it lowers the risk of losing grace-period benefits, the official added.

Bay Container Terminal: five years on paper, four in practice

The $650 million Bay Container Terminal project highlights how grace periods shrink in practice.

The loan agreement was signed in April 2025 with a five-year grace period. However, under the World Bank's repayment schedule, the first principal instalment is due on 15 February 2029, effectively reducing the usable grace period to about four years.

ERD officials said implementation has begun but remains slow, with disbursements falling short of expectations, further increasing the risk of grace-period erosion.

In a statement sent to The Business Standard on 21 December, World Bank Operations Manager Gayle Martin said, "The World Bank Group's IDA provides financing on highly concessional terms. This means that IDA credits have a near-zero interest charge. Repayments start after a 5- to 10-year grace period, and are paid over 30 to 40 years. The grace period starts from the date of approval of the financing."

Approved but unsigned projects add to the risk

ERD officials also flagged risks from projects approved by the World Bank board but still awaiting loan agreements. These include the Strengthening Institutions for Transparency and Accountability (SITA) Project, approved on 12 June 2025 for $250 million, and the Bangladesh Clean Air Project, approved on 18 June last year for $290 million.

The Bangladesh Private Investment and Digital Entrepreneurship Project shows how the pattern repeats. The World Bank approved $500 million for the project on 19 June 2020, while the loan agreement was signed on 13 April 2021, leaving the project with a four-year grace period.

According to ERD data, Bangladesh lost $440.15 million in grace-period benefits. Nearly a year elapsed before the agreement was signed, followed by further delays during implementation.

Project officials cited slow tender processes, delays in appointing procurement consultants and compliance with World Bank regulations — challenges they said could have been avoided with better preparation.

Why grace periods matter

ERD officials said grace periods are designed to allow projects to be completed and benefits realised before principal repayments begin. When grace periods shrink, repayments start early, raising debt-servicing costs, increasing budgetary pressure and straining foreign exchange reserves.

Many infrastructure and social sector projects do not generate immediate revenue. Shortened grace periods weaken key financial indicators such as Internal Rate of Return (IRR) and Net Present Value (NPV), while repayments must still be made in foreign currency amid global economic uncertainty.

Expert warning

M Masrur Reaz, chairman of Policy Exchange Bangladesh, said multilateral loans are considered concessional mainly because of low interest rates, long tenures and grace periods.

"When grace periods are missed, a major part of that advantage disappears even if interest rates remain low," he said. "Early repayments increase pressure on reserves, squeeze development spending and weaken long-term debt sustainability."

He added that structural reforms are needed, including stronger project preparation, better inter-agency coordination and closer alignment between board approval, loan signing and grace-period timelines.

Apex Footwear Limited reported robust financial performance in the first half of FY26, with revenue and profit rising sharply, supported by strong domestic demand, higher exports, and improved cost efficiency.

According to the company's unaudited half-yearly financial statements, revenue for July–December rose 14% year-on-year to Tk943 crore. Domestic sales increased 12% to Tk540 crore, while exports jumped 16% to Tk403 crore, reflecting the company's efforts to diversify its international markets and reduce reliance on a limited number of destinations.

The revenue growth translated into a 30% rise in net profit to Tk7.85 crore, with earnings per share at Tk3.99.

Omar Faruque, company secretary of Apex Footwear, told The Business Standard that the strong performance was driven by a combination of higher sales volumes and cost optimisation measures. "A major factor behind the growth was our founder's day sales campaign in September, which offered discounted prices and attracted a large number of customers," he said.

He added that export initiatives targeting new markets also contributed to a healthy increase in overseas earnings. Effective cost-control measures undertaken by management further supported profitability and margin improvement.

Quarterly data show that Apex Footwear has maintained a relatively stable revenue trend over the past five quarters, with seasonal sales campaigns causing some fluctuations. In Q2 (October–December), revenue declined 5% quarter-on-quarter to Tk459 crore from Tk484 crore in Q1.

Faruque explained that unusually high sales between 26 and 28 September during the founder's day campaign made the following quarter appear lower, even though overall demand remained stable.

Profit figures over the past five quarters also show volatility influenced by sales timing and cost factors. In Q2, the company posted a profit of Tk5.35 crore, up from Tk2.49 crore in Q1, reflecting better operational efficiency and margin management.

Following the strong half-year results, investor sentiment improved, and Apex Footwear's share price rose 2.30% to close at Tk182.30 on the Dhaka Stock Exchange on Tuesday.

Gold rose on Tuesday as geopolitical uncertainty underpinned safe-haven demand, while silver surged 8 percent to hover near all-time highs.

Spot gold climbed 1.6 percent to $5,092.70 per ounce, as of 0710 GMT, after scaling a record $5,110.50 on Monday. It broke through the $5,100 mark for the first time in the previous session.

US gold futures for February delivery edged 0.1 percent higher to $5,088.40 per ounce.

“Trump’s disruptive policy approach this year is playing into the hands of precious metals as a defensive play. The threats of higher tariffs to Canada and South Korea are doing enough to keep gold a safe-haven choice,” said Tim Waterer, KCM Trade’s chief market analyst.

Escalating trade tensions on Monday, US President Donald Trump said he would raise tariffs on South Korean auto, lumber, and pharmaceutical imports to 25 percent, while criticising Seoul for failing to enact a trade deal with Washington.

This was after he threatened tariffs on Canada in the backdrop of a thawing relationship with China, following Canadian PM Mark Carney’s visit to the country earlier this month.

“(Gold’s rally) points to a material geopolitical, or uncertainty premium now embedded in gold prices, driven less by cyclical factors and more by the persistent uncertainty around geopolitics,” Christopher Wong, a strategist at OCBC said in a note.

A looming US government shutdown and Trump’s erratic policymaking pressured the greenback, making the dollar-priced gold cheaper for overseas consumers.

The Federal Reserve is expected to hold interest rates steady at its meeting beginning later in the day, amid the challenges posed by the Trump administration to US central bank independence. F

Spot silver jumped 6.1 percent to $110.19 an ounce, after hitting a record high of $117.69 on Monday. It has already surged more than 50 percent so far this year.

From a technical perspective, silver now appears expensive relative to gold, with the gold-to-silver ratio currently at a 14-year low, analysts at BMI, a unit of Fitch Solutions, said in a note.

With speculative buying leading the latest rally, BMI said, they now expect prices to ease in the coming months as supply tightness eases and industrial demand for silver starts to peak with a slowing Mainland Chinese economy.

The Dhaka Stock Exchange (DSE) today (27 January) decided to downgrade Desh Garments to the Z category from B category, after the company failed to disburse approved dividends to their shareholders.

In FY25, the company recommended a 3% cash dividend to their general shareholders other than sponsors and directors of the company.

According to the DSE, after declaring dividend in its board meeting and obtaining approval from general shareholders at the annual general meeting (AGM), the company failed to disburse the dividend to their shareholders within the stipulated timeframe.

As per listing regulations, listed companies must disburse declared or approved dividends within 30 days of approval at their AGM.

Due to the failure to disburse dividends on time, the DSE downgraded this company to the Z category.

A company falls into the Z category if the firm fails to hold an AGM, fail to declare any dividend based on annual performance, have not been in operation continuously for more than six months, or accumulate losses that exceed its paid-up capital after adjusting revenue reserve.

Yesterday, the share price of the company increased 1.97% to Tk113.80 on the Dhaka stock exchange.

A company official said, seeking anonymity that this issue will be resolved within a week. However, the official did not share how much has been disbursed to their shareholders within the stipulated timeframe.

In the July-September quarter, the company made revenue of Tk21.68 crore, which was Tk16.11 crore in the same period of the previous year.

In this quarter, the company made a profit of Tk3.62 lakh and its earnings per share stood at Tk0.04.

Its net asset value per share stood at Tk157.03 at the end of September 2025.

A move by the National Board of Revenue to mandate full automation for exporters' raw material usage and activities from 1 January has apparently backfired, with businesses reporting severe software glitches, systemic delays, and a persistence of the very harassment the system was designed to eliminate.

While the NBR claims these issues are minor teething problems that will be resolved over time, exporters argue that the Customs Bond Management System was launched without adequate preparation. In some instances, approval processes that were supposed to be streamlined are now taking over a fortnight, causing many to miss LC deadlines.

Saleudh Zaman Khan, managing director of NZ Apparel, told TBS, "It is taking up to two weeks to secure a UP (utility permission). Consequently, LC deadlines are expiring, and we cannot supply local garment manufacturers on time, which ultimately hampers the country's final exports."

Exporters are allowed to import raw materials duty-free under the bonded warehouse facility. Even when raw materials are sourced locally, suppliers must obtain a UP from the Customs Bond Commissionerate to confirm that goods produced from imported inputs have been fully exported. The bond office verifies data from Bangladesh Bank and NBR units before issuing approval.

Previously, the process was manual, which businesses said left room for irregularities and harassment.

Industry insiders cite several problems with the bond automation, including the absence of Bangladesh Bank's dashboard integration, lack of coordination with the NBR's duty drawback office, unusually slow performance, missing bills of entry, and incomplete display of raw material data.

While Mohammad Hasmat Ali, commissioner of Customs Bond Commissionerate (Dhaka South), maintained that only "minor issues" are being addressed, a senior official from the Dhaka North office admitted that the problems are significant enough that staff are occasionally forced to revert to manual solutions.

Responding to questions at a press conference on Sunday, NBR Chairman Abdur Rahman Khan admitted there were initial complexities but said these would be corrected over time.

Some business leaders also suggested that resistance from a section of customs officials – particularly at junior levels – and certain commercial officers within exporting firms may be contributing to the difficulties. They alleged that automation has reduced opportunities for "undue advantages" for some under the manual system, creating reluctance to fully embrace the digital process.

Venezuela's interim president Delcy Rodriguez on Monday forecast a $1.4 billion bonanza from planned reforms to the oil sector aimed at drawing in foreign investors following the ouster of Nicolas Maduro.

Rodriguez projected oil investments would rise 55 percent over 2025 after a bill ending decades of tight state control on the energy sector is adopted by parliament.

"Last year, investment came to nearly $900 million and for this year, $1.4 billion in investments have been signed," claimed Rodriguez, who succeeded Maduro after his January 3 overthrow by US special forces.

Rodriguez was addressing a business audience as part of public consultations on plans to throw open the oil sector to private investment.

"We must go from the country with the planet's biggest (proven) reserves of oil to a giant in production terms," Rodriguez argued.

The interim leader is under pressure from President Donald Trump to give US oil companies access to Venezuela's rich crude deposits.

Trump backed her to take over from her former boss Maduro as long as she complies with his agenda.

Years of mismanagement and corruption drove Venezuela's output down from a peak of over 3 million barrels epr day (bpd) in the early 2000s to a historic low of 350,000 barrels daily in 2020.

It has since rebounded to around 1.2 million bpd.

The hydrocarbons bill currently before the National Assembly stipulates that private companies located in Venezuela would be able to extract oil without having to enter a joint venture with the state oil company PDVSA, which insisted on a majority stake.

Legislators endorsed it during a first reading last week and are expected to adopt it in the coming days.

Lack of investor confidence remains the biggest obstacle to developing Bangladesh's corporate bond market, and restoring trust requires strict regulatory action against issuers who fail to honour coupon payments, Bangladesh Bank Governor Ahsan H Mansur said yesterday.

Without restoring investor trust, any attempt to deepen the bond market would be futile, he said at a seminar titled "Bond Market Development in Bangladesh: Challenges and Recommendations", jointly organised by Bangladesh Bank and Bangladesh Securities and Exchange Commission (BSEC) in Dhaka.

The governor pointed out that weak enforcement of existing rules has badly damaged confidence, particularly in cases where issuers have failed to pay bond coupons without facing consequences.

In developed markets, he said, even a single missed coupon payment is treated as a serious default that triggers regulatory action and reputational damage. "But in our country, there is hardly any consequence if a company fails to pay bond coupons. No one seems to care."

He added, "Such regulatory laxity discourages investors from participating in the market. Restoring trust would require not only stricter rules but also effective supervision and enforcement to protect investors."

He noted that three macroeconomic factors are critical for bond market development: stability, lower interest rates and controlled inflation. "Without progress on these fronts, the bond market cannot grow."

BSEC and DSE sources said several issuers, including Sea Pearl Beach Resort, Regent Textile and a number of banks, have failed to make timely coupon payments, yet punitive action has been limited.

Questions have also been raised over compliance issues surrounding certain bond issuances, such as the Beximco Green Sukuk, further weakening investor confidence.

At the seminar, Mansur formally unveiled a concept note on bond market development prepared by a high-level committee formed following the chief adviser's directive. The concept note outlines the current challenges facing the bond market and proposes a phased reform roadmap extending to 2030.

Excessive reliance on bank loans

The governor said the central bank may consider discouraging excessive reliance on bank loans. If a company or business group seeks loans beyond the single borrower exposure limit, banks could suggest raising funds through bonds or equity instead, he added.

However, he cautioned that such measures should be implemented carefully and only alongside reforms that make the bond market more accessible and attractive. He also highlighted several pull factors to attract issuers, including tax incentives, shorter issuance timelines and lower costs.

Govt should introduce funded pension schemes

According to Mansur, the government and the business community must take the lead in developing the bond market, but the first step is to make it more protective and user-friendly so that both issuers and investors feel confident participating.

To broaden investor participation, Mnsur said the government should introduce funded pension schemes instead of non-funded ones, as pension funds can act as stable, long-term investors in bonds.

He also suggested forming a central coordination committee, supported by several sub-committees, to improve cooperation among regulators and ensure effective implementation of reforms.

Another proposal put forward by Mansur was allowing national savings certificates to be traded in the secondary market. He argued that if savings certificates become tradable, the overall bond market size could double, while giving savers greater liquidity and flexibility.

Bank loans still favoured: BSEC chairman

BSEC Chairman Khondoker Rashed Maqsood said bank loans remain easier to obtain than capital market financing in Bangladesh, which explains why companies continue to rely heavily on banks.

He said non-performing loans have risen partly due to mismatches between loan tenures and funding sources. The concept note, he said, recommends encouraging both the government and corporates to tap the capital market more actively.

After gathering feedback from stakeholders, BSEC plans to finalise new regulations to support bond market development, he added.

Govt working to attract foreign investors: Finance secretary

Finance Secretary Khairuzzaman Mozumder said that although the longstanding issue of double taxation on bonds has been resolved, new challenges have emerged in secondary trading due to frequent changes in ownership.

He described these as largely software-related problems that cannot be addressed manually at every stage, stressing the need for coordination between the National Board of Revenue and BSEC.

He also said the government is working to attract foreign investors to local currency bonds and has formed a committee to introduce secondary trading of savings certificates.

Private sector caution against restrictions

Uzma Chowdhury, corporate finance director of Pran-RFL Group, said that restricting bank loans could harm businesses if alternative financing channels are not sufficiently developed.

She argued that many private sector firms are reluctant to go to the capital market because they are reluctant to share profits, disclosure requirements and restrictions, and that further constraints could discourage investment rather than promote bond issuance.

Mashrur Arefin, president of the Association of Bankers Bangladesh and managing director of City Bank, stressed the importance of allowing foreign investors to freely repatriate bond investments.

He said bond market development would remain limited unless the policy rate is reduced and valuation mechanisms in the secondary market are simplified for retail investors. Imposing caps on private sector borrowing without a functional bond market, he warned, would only increase pressure on businesses.

80% debt financing from banks: Concept note

According to the jointly prepared concept note, Bangladesh's financial system remains overwhelmingly bank-centric, with about 80% of debt financing coming from banks.

Around 70% of bank deposits mature within a year, creating maturity mismatches and liquidity risks. The corporate bond market remains underdeveloped due to the dominance of bank financing, high issuance costs, complex regulations, weak appetite for non-sovereign debt, poor enforcement and the crowding-out effect of high-yield government savings certificates.

As of June 2025, Bangladesh had only 16 listed corporate bonds, 14 of which were issued by banks mainly to meet regulatory capital requirements. The total corporate bond market size stood at Tk33.34 billion, accounting for just 0.06% of GDP, compared to 5.73% for government bonds. In contrast, peer countries such as Malaysia, South Korea and China have bond market-to-GDP ratios exceeding 100%.

The concept note recommends phased reforms, including streamlining issuance procedures, offering targeted tax incentives, expanding the investor base, strengthening legal frameworks and improving secondary market liquidity through coordinated regulatory action. These reforms are planned over the short term by December 2026, the mid-term by 2027 and the long term by 2030.

The national committee tasked with restructuring Bangladesh's tax system has submitted a reform agenda to Chief Adviser Muhammad Yunus, proposing major structural changes to boost revenue mobilisation and reduce the economy's heavy reliance on indirect taxation.

The report, prepared by an 11-member taskforce led by Policy Research Institute (PRI) Chairman Dr Zaidi Sattar, sets ambitious targets to raise the tax-to-GDP ratio to 12% by 2030 and 15-20% by 2035, from the current level of around 10%.

It also recommends rebalancing the tax mix by increasing the share of direct taxes to 50% from the existing 30%, signalling a shift towards a more equitable and growth-friendly tax regime.

Titled "Tax Policy for Development: A Reform Agenda for Restructuring the Tax System", the report submitted today (27 January) describes Bangladesh's tax system as unnecessarily complex, inefficient and overly dependent on indirect taxes.

It argues that incremental or piecemeal changes will not be enough to support long-term economic transformation, calling instead for fundamental and structural reforms.

The taskforce identified 55 policy issues, with seven flagged as immediate priorities.

Key recommendations include simplifying the tax system through greater digitalisation and automation, introducing artificial intelligence-based risk analysis, expanding risk-based audits and rationalising tax incentives.

The report also proposes a strategic shift away from trade-based taxation towards stronger domestic tax mobilisation.

On customs reforms, the report suggests modernising the tariff structure and applying equal effective protection for export-oriented and import-substituting industries. It also proposes moving away from port-based enforcement towards post-clearance audits and argues that a separate valuation database for cargo clearance is unnecessary.

In the area of value-added tax, the taskforce recommends a gradual transition from the current multi-rate VAT regime to a single-rate system, saying this would reduce complexity and lower compliance costs for businesses.

Receiving the report, Chief Adviser Yunus said the interim government had limited time but intended to initiate the implementation process.

Finance Adviser Dr Salehuddin Ahmed said the report would serve as a guideline for improving both revenue collection and governance.

Officials from the Internal Resources Division noted that the document clearly diagnoses existing weaknesses in the tax system and offers a roadmap for reform.

Revenue up Tk23,000cr

Meanwhile, the National Board of Revenue, in a detailed briefing sent to Chief Adviser Yunus last Sunday, said its reform initiatives have produced positive results in revenue collection, with government revenue increasing by Tk23,020 crore in the first six months of the current fiscal year compared to the same period a year earlier.

The revenue authority stated that total collections between July and December 2025 reached Tk1,85,229 crore, attributing the increase to structural reforms in revenue management, digitalisation, measures to curb tax evasion and taxpayer-friendly initiatives.

However, economists and former officials have questioned the claim, arguing that the higher growth rate largely reflects a low base in the previous fiscal year rather than the immediate impact of reforms.

According to experts, it was too early for reforms to have such an effect.

Dr Mohammad Abdur Razzaque, chairman of Research and Policy Integration for Development (RAPID), told The Business Standard, "Even if some reforms have been undertaken, their results would not come this quickly. It would take more time."

"The growth we are seeing is mainly due to low revenue collection last year. That low base is why the current growth rate appears higher," he said.

As per NBR data, revenue collection during the first half of FY2024-25 (July-December) did not increase; instead, it declined by about 1%.

A former senior NBR official, speaking on condition of anonymity, echoed that view, saying, "The revenue growth being observed is not due to new reforms."

He rather questioned whether any effective reform had been implemented over the past year.

Structural reforms, legal changes

In its briefing, the NBR highlighted the separation of revenue policy from revenue administration as a major milestone. It noted that the issuance of the Revenue Policy and Revenue Management (Amendment) Ordinance, 2025 had formally divided policy formulation from implementation.

The decision was approved at a meeting of the National Implementation Committee for Administrative Reforms (Nicar), chaired by the chief adviser, paving the way for long-awaited structural reforms within the NBR.

The revenue authority also said the government had moved to curb tax exemptions by introducing the Tax Expenditure Policy and Management Framework, which has been published in the official gazette.

Amendments to the Income Tax Act, the Customs Act and the VAT Act have withdrawn the NBR's authority to grant tax exemptions, it said, adding that any future exemptions will require parliamentary approval.

Digitalisation drive

The NBR said it has undertaken a major digitalisation programme under the World Bank-funded Strengthening Domestic Revenue Mobilisation Project, with an estimated cost of nearly Tk1,000 crore.

The project aims to modernise income tax, VAT and customs operations. Measures such as e-returns, online payments, e-refunds, VAT smart invoices and risk-based audits have reduced hassle for taxpayers, the authority said.

In customs, the launch of the Bangladesh Single Window has enabled certificates, licences and permits from 19 agencies to be issued online. Around 900,000 certificates have been issued so far, with most applications processed within one hour to one day, according to the NBR.

In the VAT sector, a special registration drive led to the issuance of 131,000 new VAT registrations in December 2025 alone, raising the total number of registered entities to 775,000.

The NBR said mandatory online submission of income tax returns has resulted in more than 34 lakh e-returns being filed so far.

An email-based one-time password system has also been introduced for expatriate Bangladeshis, making overseas filing easier. More than 5,000 expatriate taxpayers have already used the facility, it said.

The introduction of a risk-based audit system has made the audit selection process more transparent, the authority added.

Duty, tax relief measures

The government has also provided duty and tax relief in several areas, the NBR said.

These include excise duty exemptions on air tickets and related services for Hajj pilgrims, reduced customs duty and advance income tax on date imports ahead of Ramadan, and duty-tax relief on essential commodities.

Customs duty on mobile phone imports has been cut from 25% to 10%, resulting in an overall import duty reduction of up to 60%, according to the NBR.

The authority said the benefits of these measures were already visible in higher revenue collection, increased taxpayer confidence and a more business-friendly environment, and would help raise the revenue-to-GDP ratio over the medium and long term.

The National Board of Revenue (NBR) has said its reform initiatives have produced positive results in revenue collection, with government revenue increasing by Tk23,020 crore in the first six months of the current fiscal year compared to the same period last year.

In a detailed briefing sent to Chief Adviser Muhammad Yunus on Sunday (25 January), the revenue authority attributed this to structural reforms in revenue management, digitalisation, measures to curb tax evasion and taxpayer-friendly initiatives.

According to the NBR, total revenue collection from July to December 2025 stood at Tk1,85,229 crore, marking a notable rise from the corresponding period of the previous fiscal year.

One of the major milestones of the reform process, the NBR said, is the decision to separate revenue policy from revenue administration.

The briefing noted that the issuance of the Revenue Policy and Revenue Management (Amendment) Ordinance, 2025 formally separated policy formulation from implementation.

The decision's approval came at a meeting of the National Implementation Committee for Administrative Reforms (NICAR), chaired by the chief adviser, paving the way for long-awaited structural reforms within the NBR.

Major investment in digital revenue system

The NBR said that to fully digitise revenue management, a World Bank-funded project titled Strengthening Domestic Revenue Mobilisation Project (SDRMP) has been undertaken at a cost of nearly Tk1,000 crore. The project aims to modernise income tax, VAT and customs operations.

The introduction of e-returns, online payments, e-refunds, VAT smart invoices and risk-based audits has reduced taxpayer hassle, the NBR added.

Parliamentary approval mandatory for tax exemptions

To move away from tax exemptions, the government has formulated the Tax Expenditure Policy and Management Framework and published it in the official gazette, the NBR said.

Amendments to the Income Tax Act, Customs Act and VAT Act have withdrawn the NBR's authority to grant tax exemptions, it added, mentioning that from now on, no tax exemption can be granted without parliamentary approval.

Customs and VAT

With the launch of the Bangladesh Single Window (BSW), certificates, licences and permits from 19 agencies are now being issued online.

So far around 900,000 certificates have been issued digitally, with most applications processed within one hour to one day, the NBR said.

In the VAT sector, a special registration campaign led to the issuance of 1,31,000 new VAT registrations in December 2025 alone, raising the total number of VAT-registered entities to 775,000.

Response to e-returns in income tax

Mandatory online income tax return submission has resulted in more than 34 lakh e-returns being filed so far, the NBR said.

An email-based OTP system for expatriate Bangladeshis has made overseas filing easier, with over 5,000 expatriate taxpayers already using the facility, it added.

The NBR stated that the introduction of a risk-based audit system has also made the audit selection process more transparent.

Duty and tax relief for business and public interest

The government has granted excise duty exemptions on air tickets and related services for Hajj pilgrims, reduced customs duty and advance income tax on date imports ahead of Ramadan, and provided duty-tax relief on essential commodities.

Additionally, customs duty on mobile phone imports has been reduced from 25% to 10%, resulting in an overall import duty reduction of up to 60%.

According to the NBR, the benefits of these reforms are already being reflected in higher revenue collection, increased taxpayer confidence and a more business-friendly environment.

The briefing noted that in the medium and long term, these reforms will play a crucial role in increasing the revenue-to-GDP ratio.

The interim government’s proposed new pay scale for public servants could intensify inflationary pressures and strain the banking system, Bangladesh Bank (BB) Governor Ahsan H Mansur said yesterday.

“The salary hike will require borrowing more from the banking system. Is that going to help reduce inflation? No,” the governor said at an event on the implications of the LDC graduation for the banking system, organised by the International Chamber of Commerce-Bangladesh (ICCB) in Dhaka.

The government is planning a general salary increase, which will double the wage bill.

Speaking about the central bank’s efforts to tame inflation, Mansur said bringing down inflation is achievable, but will take time.

Bangladesh, he noted, has already reduced inflation from around 12.5 percent to about 8.3 percent. “Inflation has to come down. But we must give it time. We must be patient.”

However, he cautioned that the real challenge lies in breaking inflation expectations, which have been long-established.

“Historically, Bangladesh has never had low inflation,” he said, noting that inflation has typically hovered around 6 percent to 8 percent.

Claims of sustained high growth alongside low inflation, he added, were often more artificial than real.

“This is why interest rates cannot be low,” he said, adding that rates can only fall sustainably if non-performing loans are reduced sharply through accountability, good governance, and effective supervision.

“If we can reduce bad loans and lower expectations, why can’t we bring inflation down?” he asked.

He said inflation expectations are visible across the labour market, where workers routinely expect annual wage increases. In many factories, wages rise by 10 percent, 15 percent, or even 20 percent each year - not necessarily because productivity has increased, but because higher inflation is assumed.

“These expectations are deeply ingrained. We have to break that cycle,” he said. “Unless expectations change, inflation will not come down to 3 or 4 percent. And that will take time.”

Anwar Galvanizing Limited continues to bleed in its core business amid weak construction demand and supply chain disruptions. Yet, strong gains from capital market investments have helped the listed company swing back to profit in the first half of the current fiscal year.

According to its half-yearly financial report, the company posted a profit of Tk9.11 crore with earnings per share (EPS) of Tk3.02. In the same period of the previous fiscal year, it recorded a loss of Tk5.45 crore and per-share loss of Tk1.81.

In a disclosure to the stock exchanges, the company said its profit turnaround was mainly driven by a sharp rise in non-operating income, which increased by Tk21.19 crore in the first half. Non-operating income in the second quarter alone rose by Tk8.89 crore, largely from stock market investments.

However, the company acknowledged that its operational performance remained under pressure. A downturn in demand in the construction sector, prolonged political unrest and disrupted supply chains adversely affected its gross profit margin during the reporting period.

Revenue in the half-year rose slightly to Tk30.38 crore from Tk28.89 crore a year earlier. After deducting operating expenses, the company incurred an operational loss of Tk8.34 crore.

On Tuesday, shares of Anwar Galvanizing closed at Tk92.30 each on the stock exchanges.