Ryanair, Transavia, Volotea and other low-cost airlines are feeling the financial pain from high jet fuel prices as a result of the Middle East war and are cutting flights.

The closure of the Strait of Hormuz has taken a huge chunk of oil supplies off the market, sending the price of jet fuel soaring and triggering fears of shortages that could force airlines to cancel flights.

Airlines aren’t waiting for a lack of supplies to react.

“Travel alert: airlines are cutting thousands of flights right now,” Travel Therapy TV host Karen Schaler said in an Instagram reel this past weekend. “Book early.”

That advice would win the approval of Ryanair boss Michael O’Leary, who expressed concern earlier this month that fears of fuel shortages were making people put off booking flights.

Low-cost carriers -- which control a little more than a third of the global market, according to various estimates -- are feeling the pinch first due to the nature of their business model.

With cheaper tickets, they have less capacity to absorb the rise in fuel costs.

Some of the cancellations may be the normal adjustments airlines tend to make when demand doesn’t meet expectations on certain routes.

“It is not unusual for carriers to adjust their schedules at this time of the year,” financial analyst Dudley Shanley at investment bank Goodbody told AFP.

But “if jet fuel prices remain at this level, there will have to be a little bit more trimming for low-cost airlines”, he added.

If before the war airlines were able to maintain marginally profitable routes or even unprofitable routes, the surge in jet fuel prices will force them to make difficult choices.

That will start with many during the peak summer travel season.

“Unfortunately, it’s very likely that many people’s holidays will be affected, either by flight cancellations or very, very expensive tickets,” the EU’s energy commissioner Dan Jorgensen told Sky News last week.

The speed with which airlines are reacting depends in part upon the extent to which they secured fuel supplies in advance at fixed prices.

European airlines tend to do this to a greater extent than their rivals in other parts of the world. Air Transat, a low-cost Canadian airline, has cut six percent of its May-October flight schedule.

Southeast Asia’s largest low-cost carrier, AirAsia X, announced on Friday it was cutting more flights and even some connections, without providing an overall figure.

Earlier this month the Malaysia-based no-frills airline said it was raising fares by up to 40 percent and about 10 percent of its overall flights had been cut so far.

Hungary’s low-cost airline Wizz Air has so far resisted cutting flights.

“We are not taking capacity out, because I think the other guys will take capacity out,” its chief executive Jozsef Varadi was quoted as saying recently by trade magazine Aviation Week.

“You don’t have to run faster than the bear, but faster than the guy next to you,” he added.

He may have been thinking of the most spectacular cuts made in the industry by German group Lufthansa, which had just announced it was chopping 20,000 flights from its schedule through October, along with halting its regional feeder airline CityLine.

Its European rival Air France-KLM has trimmed two percent of flights in May and June at its low-cost Transavia subsidiary.

KLM has kept cancellations down to one percent of its European flights.

Ryanair didn’t cite fuel prices but high costs and taxes when announcing last week it would reduce flights to and from Berlin starting in October.

It is also cutting 10 percent of flights from Dublin, criticising limited capacity at the airport.

Since the beginning of the month, Spain’s Volotea has trimmed nearly one percent of flights from its summer schedule.

A prognosis comes from the regulator that the prevailing high inflation may intensify further following fuel-price rises, which indicates pricey commodities could be pricier.

"….near-term inflationary pressures are expected to intensify due to higher global oil prices, domestic fuel-price adjustments, and ongoing energy-supply constraints," the Bangladesh Bank (BB) says in its latest report on Inflation Dynamics in Bangladesh January-March 2026. Bangladeshmarket analysis

The central bank's latest observation comes just nine days after the government raised domestic fuel prices in response to continued increases in global petroleum- product prices, underscoring mounting external cost pressures on the economy.

Officials and economists, however, says these cost-push factors are likely to transmit through higher transportation and production costs, potentially broadening price pressures across the supply chain and complicating efforts to anchor inflation expectations.

Bangladesh's headline consumer price index (CPI) inflation (y-o-y) continued to rise, averaging approximately at 8.8 per cent in the third quarter (Q3) of the current fiscal year (FY) 2025-26, up from 8.3 per cent observed in the previous quarter, according to the quarterly report released Tuesday.

"Fuel-price adjustments may trigger a one-off spike in inflation, which would then ease gradually over time," Md. Ezazul Islam, Director-General of Bangladesh Institute of Bank Management (BIBM), says while explaining to The Financial Express (FE) the potential economic impact of the latest fuel-price hike.

"Fuel-price adjustments have a multiplier effect on the economy, as fuel is a key input across all sectors," explains Dr. Islam, also a former executive director of the central bank. Economicanalysis reports

Talking to the FE, a BB senior official has said transport costs have already risen following the latest fuel-price adjustments, which may further add fuel to inflationary pressures on the economy. Energy inflation rose to 14.9 per cent in the third quarter of FY'26 from 14.4 per cent in the previous quarter.

On the other hand, food inflation edged up during the period under review, primarily driven by an increased contribution from vegetables and spices. However, protein-based foods remained the top contributor.

The central bank in its report says the increased contribution of protein-based food items, along with 'clothing and footwear', can be partly attributed to seasonal demand associated with Eid-ul-Fitr, which typically leads to higher consumer spending on food and apparel.

The average contributions of import-concentrated food items and domestic food items to headline inflation increased in the Q3 of FY'26 from the previous quarter.

On the other hand, the contribution of import-concentrated non-food items to inflation declined, according to the report.

Meanwhile, the wage-price gap narrowed slightly by the end of Q3 of FY'26 compared to the previous quarter, driven by a fall in headline inflation (y-o-y) to 8.7 per cent in March 2026, while wage growth remained stable at 8.1 per cent. This led to a modest deterioration in household purchasing power, reflecting sluggish real wage growth.

"Given these developments, sustained policy vigilance is essential to anchor inflation expectations, contain elevated food and core prices, and safeguard household purchasing power, thereby supporting a stable macroeconomic environment conducive to long-term, inclusive growth," the central bank notes in its report.

Bangladesh witnessed a spike in energy inflation during the January-March quarter of the current fiscal year 2025-26 (FY26), driven by gas price hikes, according to a Bangladesh Bank (BB) report published yesterday.

Energy inflation rose to 14.9 percent in the third quarter of FY26 from 14.4 percent in the previous quarter, the central bank said in its report titled Inflation Dynamics in Bangladesh.

The report said solid fuels such as firewood, agricultural by-products, cow dung, and jute sticks have consistently been a major driver of energy inflation.

However, inflation of solid fuels declined to 21.5 percent in the January-March period from 23.1 percent in the previous quarter. Gas inflation surged to 11.3 percent in the third quarter, rebounding from a 6.2 percent inflation in the preceding quarter.

Solid fuels such as firewood, agricultural by-products, cow dung, and jute sticks have consistently been a major driver of energy inflation
During the January-March period of FY26, inflation averaged 8.81 percent, up from 8.3 percent in the preceding October-December quarter, mainly driven by increased food prices, especially vegetables and spices.

However, protein-based foods remained the top contributor, accounting for 44.6 percent of overall food inflation, the report said.

The average contribution of vegetables to food inflation rose to 22.7 percent in the January-March period of this year. The contribution of cereal items to food inflation saw a notable decline, dropping to 8.1 percent from 41.4 percent in the previous quarter.

In contrast, non-food inflation remained broadly stable at a high level of approximately 8.9 percent.

During the quarter, the BB report said that the contribution of domestic items to inflation increased to 71.7 percent, while the share of import-concentrated items fell to 28.3 percent.

Despite a spike in inflation, the wage-price gap slightly narrowed compared to the previous quarter. “This narrowing was primarily driven by a decline in headline inflation rather than any significant improvement in wage growth,” the report said.

“Despite some positive momentum effects, wage growth remained sluggish throughout the quarter, as the negative base effect persisted,” it added.

The government needs to urgently design a comprehensive framework to bring Bangladesh’s fast-growing digital economy under the tax net to boost the country’s tax-to-GDP ratio, the Bangladesh Economic Association (BEA) said.

It warned that a large and expanding segment of income remains outside the formal revenue system.

The association placed the recommendation before the National Board of Revenue (NBR) during a pre-budget discussion at its headquarters in Dhaka.

The economists’ body said sectors such as e-commerce, freelancing, digital advertising, and streaming services are growing rapidly but remain either fully or partially untaxed. This includes Facebook-based businesses, sellers on platforms like Daraz, freelancers on global marketplaces, and users paying for services such as Netflix and Spotify.

According to the BEA, the lack of a structured taxation regime is causing revenue losses and creating an uneven playing field between compliant businesses and largely untaxed digital operators.

It also flagged rising cross-border digital transactions, noting that firms like Google, Meta Platforms, and Amazon earn significantly from Bangladesh but contribute limited taxes.

The BEA proposed mandatory tax registration for foreign digital service providers and an automated withholding system through payment gateways to deduct tax or VAT at source.

It also recommended forming a specialised digital unit within the NBR to monitor cross-border transactions in real time, improve compliance, and reduce revenue leakages.

Prof Mahbub Ullah, convener of the BEA, and Mohammad Masud Alam, member of the committee, spoke at the event presided over by Md Abdur Rahman Khan, chairman of the NBR.

Finance Minister Amir Khosru Mahmud Chowdhury yesterday placed two amendment bills in the parliament proposing the removal of age limits for appointing the heads and members of two of the country’s key financial regulators.

The Bangladesh Securities and Exchange Commission (Amendment) Bill, 2026 seeks to abolish the existing maximum age limit of 65 years for appointing the chairman and commissioners of the Bangladesh Securities and Exchange Commission (BSEC).

Also placed the same day, the Insurance Development and Regulatory Authority (Amendment) Bill, 2026 proposes scrapping the current age cap of 67 years for appointing the chairman and members of the Insurance Development and Regulatory Authority (Idra).

Placing the bills before the House, the finance minister recommended that they be sent to a special parliamentary committee for scrutiny, with a report to be submitted within one day.

In the statement of objectives and reasons, the minister said the proposed amendment to the securities commission law aims to make it more suitable for present circumstances by allowing the appointment of experienced, skilled and knowledgeable individuals to top positions.

Regarding the amendment to the Insurance Development and Regulatory Authority Act, 2010, he noted that the existing provision, which sets the maximum appointment age at 67 years, has limited the opportunity to recruit capable and experienced individuals to leadership roles in the insurance sector.

He argued that removing this restriction is necessary in the public interest to strengthen decision-making in the sector.

Earlier, on April 23, the cabinet approved the draft amendments to both laws.

Oil prices rose nearly 3 percent on Tuesday, extending the previous session’s gains, as ‌efforts to end the US-Iran war appeared to have stalled, with the crucial Strait of Hormuz waterway still mainly shut, starving markets of key Middle East energy supply.

Brent crude futures for June climbed $2.99, or 2.76 percent, to $111.22 a barrel by 0758 GMT, after ​gaining 2.8 percent to close the previous session at its highest since April 7. The contract is ​up for a seventh straight day.

At their intra-day peak on Tuesday, Brent was up 3.4 percent on the day at $111.86 a barrel.

US West Texas Intermediate (WTI) crude for June rose $2.54, or 2.64 percent, ​to $98.91 a barrel, after gaining 2.1 percent in the previous session.

US President Donald Trump is unhappy with the latest Iranian ​proposal to end the war, a US official said on Monday, as Iranian sources disclosed that it avoided addressing the nuclear program until hostilities cease and Gulf shipping disputes are resolved.

Trump’s displeasure with the offer leaves the conflict deadlocked, with Iran shutting shipping flows ​through the Strait of Hormuz, a conduit for about 20 percent of global oil and gas supplies, and the ​US retaining its blockade of Iranian ports.

“Oil above $110 per barrel reflects a market that is rapidly repricing geopolitical risk,” said ‌Rystad Energy ⁠analyst Jorge Leon.

“With peace talks stalled and no clear path to reopening the Strait of Hormuz, traders are factoring in a prolonged disruption to a critical artery of global supply,” he added.

“Even in a best-case scenario, any US–Iran agreement is likely to be narrow and partial, leaving the Strait issue unresolved, which means the upside ​risks to prices remain.”

An ​earlier round of negotiations between ⁠the United States and Iran collapsed last week after face-to-face talks failed.

Ship-tracking data showed significant disruptions in the region, with six Iranian oil tankers forced to turn back due ​to the US blockade.

But a liquefied natural gas tanker managed by the United ​Arab Emirates’ Abu ⁠Dhabi National Oil Co crossed the Strait of Hormuz and appears to be near India, the on Monday.

Prior to the US-Israeli war on Iran, which began on February 28, between 125 and 140 vessels transited the strait ⁠daily.

The loss ​of about 10 million bpd of crude and products through Hormuz will continue ​to exceed falling consumption as inflationary pressures and demand destruction loom, PVM analyst Tamas Varga said, leading to an ever-tighter oil market ​balance.

IPDC Finance PLC, the country's first private sector financial institution, recorded a robust 25% year-on-year growth in net profit for the year 2025, navigating persistent macroeconomic challenges through strategic diversification and disciplined cost management.

According to its audited financial statements approved on Tuesday, the company's net profit after tax rose to Tk45.5 crore in 2025. Following this strong performance, the board of directors has recommended a 10% dividend for the shareholders, comprising 5% cash and 5% stock.

The growth was largely driven by a massive surge in investment income, which skyrocketed by 93% to reach Tk132.4 crore. This jump was fuelled by higher treasury yields and effective portfolio management within the capital market.

Additionally, gross interest income grew by 9% to Tk956 crore, supported by a prudent expansion of the company's lending portfolios.

Despite a broader economic slowdown, IPDC's operating income increased by 7% to Tk348.4 crore. The company maintained a strict grip on its operational costs, with expenses rising by a moderate 10%, resulting in an operating profit of Tk185.3 crore.

On the balance sheet side, IPDC continued to gain depositor trust. Total deposits grew by 15% to Tk6,224.9 crore, securing a 12% market share in the industry. Meanwhile, loans, leases, and advances stood at Tk7,462.2 crore, marking a 7% increase from the previous year.

Key financial indicators also showed significant improvement. Earnings per share (EPS) rose to Tk1.11, and the Net asset value (NAV) per share climbed to Tk17.85. The company's net operating cash flow per share (NOCFPS) stood at a healthy Tk9.94, indicating strong cash generation from its core business operations. The return on equity (ROE) improved to 6.74%.

Managing Director of IPDC Finance Rizwan Dawood Shams attributed the success to "disciplined execution and strategic resilience."

"Despite a challenging environment, we strengthened our earnings base through diversified income streams and prudent cost management. Our focus on portfolio quality and strong risk governance enabled us to deliver sustainable profitability while reinforcing our balance sheet," he said.

He further added that the company remains committed to creating long-term value for stakeholders through financial stability and responsible growth.

Olympic Industries, the country's leading branded biscuit manufacturer, reported a significant 34% decline in net profit for the January–March quarter of the 2025-26 fiscal year, mainly due to higher taxes and increased raw material costs fueled by geopolitical tensions.

According to the company's unaudited financial statements, net profit for the third quarter (Q3) fell to Tk28.47 crore, down from the same period a year earlier. Although revenue grew 9% to Tk708.81 crore, the cost of goods sold rose at a faster pace—up 13% to Tk555 crore—eroding margins. As a result, gross profit declined 4% to Tk153.80 crore.

The company attributed the erosion of its bottom line to two key factors: a heavier tax burden and rising costs of imported raw materials. Import expenses surged amid supply chain disruptions and heightened market volatility triggered by the Iran–US–Israel conflict, which has disrupted energy flows and driven up global input costs. Consequently, Olympic's income tax payment skyrocketed by 104% during the quarter, reaching Tk26.22 crore.

The nine-month performance (July–March FY26) also reflected a similar trend of rising costs. Although total revenue grew by 5% to Tk2,256 crore, the cumulative net profit for the period fell by 7% to Tk148.18 crore.

At the end of the first three quarters, the company's earnings per share (EPS) stood at Tk7.41, while its net asset value (NAV) per share was recorded at Tk60.26.

Investor sentiment on the bourse remained cautious after the disclosure, with Olympic Industries' shares closing at Tk143.30 on Tuesday at the Dhaka Stock Exchange.

The manufacturer had earlier delivered strong results in FY2024–25, reporting a net profit of Tk201 crore and rewarding shareholders with a 30% cash dividend.

Beacon Pharmaceuticals PLC posted a remarkable rise in its profitability in the third quarter of fiscal year 2025-26, mainly driven by strong operational performance and higher growth in earnings.

According to the company's price-sensitive information (PSI) disclosed on Sunday (26 April), the pharmaceutical manufacturer witnessed over a 335% year-on-year increase in the net profit for the January-March quarter of FY2025-26 compared to the same period of the previous fiscal year.

The share price of the company increased by 3.79% to Tk104 on the Dhaka stock exchange on Tuesday.

In the third quarter, the company earned revenue worth Tk380 crore, which is 25.83% higher from Tk302 crore compared to the same period of the previous year.

The company's earnings per share (EPS) stood at Tk1.22 for the third quarter, significantly higher than Tk0.28 recorded in the corresponding quarter a year earlier.

For the first nine months of the fiscal year, from July to March, Beacon Pharmaceuticals reported an EPS of Tk5.95, marking a 59% increase compared to the same period of the previous fiscal year.

In this period, its revenue stood at Tk1202 crore, which was Tk900 crore a year ago. Besides, its net profit after tax stood at Tk138 crore, which was Tk87 crore a one year ago.

The company also reported a significant improvement in its net operating cash flow per share (NOCFPS) during the reporting period.

Explaining the reasons behind the strong financial performance, the company stated that revenue growth in the corresponding period of the previous year was affected by socio-political instability, which also negatively impacted operating cash flows.

However, business operations recovered in the third quarter of the current fiscal year, leading to strong revenue growth. Consequently, improved cash collections significantly increased Net Operating Cash Flow Per Share, reflecting stronger operational performance and better liquidity compared to the same period a year ago.

According to market analysts, the substantial growth in quarterly earnings reflects improved business performance, higher sales revenue, and operational efficiency amid rising demand for pharmaceutical products in both local and export markets.

The strong earnings growth attracted attention from investors in the capital market, as the pharmaceutical sector continues to remain one of the more resilient industries despite broader economic challenges, including inflationary pressure, foreign exchange volatility, and rising production costs.

Beacon Pharmaceuticals is one of the listed pharmaceutical companies on the Dhaka Stock Exchange (DSE). The company manufactures a wide range of generic medicines, including oncology, antiviral, and specialised healthcare products.

The United Arab Emirates said on Tuesday it was quitting OPEC and OPEC+, dealing a heavy blow to ​the oil exporting groups and their de facto leader, Saudi Arabia, at a time ‌when the Iran war has caused a historic energy shock and unsettled the global economy.

The loss of the UAE, a longstanding OPEC member, could create disarray and weaken the group, which has usually sought to show a united front despite ​internal disagreements over a range of issues from geopolitics to production quotas.

UAE Energy Minister Suhail ​Mohamed al-Mazrouei told Reuters the decision was taken after a careful look at ⁠the regional power's energy strategies.

Asked whether the UAE consulted with Saudi Arabia, he said the UAE did ​not raise the issue with any other country.

"This is a policy decision, it has been done after ​a careful look at current and future policies related to level of production," said the energy minister.

OPEC Gulf producers have already been struggling to ship exports through the Strait of Hormuz, a chokepoint between Iran and Oman through which a ​fifth of the world's crude oil and liquefied natural gas normally passes, because of Iranian threats and ​attacks against vessels.

Mazrouei said the move would not have a huge impact on the market because of the situation ‌in ⁠the strait.

But the UAE exit from OPEC represents a win for US President Donald Trump, who has accused the organisation of "ripping off the rest of the world" by inflating oil prices.

Trump has also linked U.S. military support for the Gulf with oil prices, saying that while the US defends OPEC members they "exploit ​this by imposing high ​oil prices".

The move came ⁠after the UAE, a regional business hub and one of Washington's most important allies, criticised fellow Arab states for not doing enough to protect it from ​numerous Iranian attacks during the war.

Anwar Gargash, the diplomatic adviser for the ​UAE president, criticised ⁠the Arab and Gulf response to the Iranian attacks in a session at the Gulf Influencers Forum on Monday.

"The Gulf Cooperation Council countries supported each other logistically, but politically and militarily, I think their position ⁠has been ​the weakest historically," Gargash said.

"I expect this weak stance from ​the Arab League and I am not surprised by it, but I haven't expected it from the (Gulf) Cooperation Council and I am ​surprised by it," he said.

Bata Shoe Company (Bangladesh) Limited reported a dramatic fall in profit for the year ended 31 December 2025, with earnings declining by 96% year-on-year amid sustained business challenges.

According to its price sensitive disclosure, the company's earnings per share dropped sharply to Tk0.85 in 2025, down from Tk21.62 in the previous year. The steep decline reflects a difficult operating environment, with the company slipping into losses for much of the year.

Financial data show that Bata began incurring losses from the second quarter of 2025. During the April-December period, the company posted a cumulative loss of Tk35.67 crore. However, strong performance in the first quarter, when it recorded a profit of Tk36.82 crore, helped it narrowly return to profitability, ending the year with a net profit of Tk1.15 crore.

Despite the sharp drop in earnings, the company declared a substantial dividend for shareholders. Bata recommended a 105% final cash dividend, in addition to a 143% interim cash dividend already paid earlier in the year, taking the total payout to 248% for 2025.

The company has scheduled its annual general meeting for 30 June, with the record date set for 19 May to approve the audited financial statements and dividend.

On the stock market, Bata's shares closed 2% lower at Tk818.70 today (28 April) at the Dhaka Stock Exchange.

Bata has been operating in Bangladesh since 1962 and runs two manufacturing facilities in Tongi and Dhamrai, with a combined daily production capacity of around 160,000 pairs of shoes. The company sells approximately three crore pairs annually.

The Bangladesh operation is a subsidiary of Bafin (Nederland) BV, which holds a 70% stake and is part of the global Bata Shoe Organisation, overseeing the brand's international business.

In a press release, the company said it achieved a total turnover of Tk916 crore, demonstrating resilience despite a backdrop of macroeconomic volatility, political uncertainty, and global geopolitical pressures.

"As consumers became increasingly cautious with discretionary spending, the company pivoted toward a consumer-centric strategy, prioritising high-growth categories. Significant progress was made in the casual, sneaker, and premium segments, which aligned effectively with evolving market trends," it said.

"This strategic evolution was bolstered by the expansion of an omnichannel network, providing a seamless experience across digital and physical platforms. By maintaining a lean organisational framework and focusing on operational efficiency, Bata Bangladesh is balancing necessary structural adjustments with continued investment in innovation. This proactive stance ensures the brand is well-positioned to capitalise on emerging opportunities as the economic environment stabilises," reads the press release.

National Credit and Commerce (NCC) Bank shares jumped in the opening session as it recommended record cash dividend to its shareholders for the year of 2025.

During the opening session till 10:50 am, its share price jumped by 12.59% to Tk16.10.

According to its price sensitive statement filed on the Dhaka bourse, the bank recommended a 17% cash and 4% stock dividend for 2025.

According to the company, the declared cash dividend is become highest so far in its listing history.

To approve the dividend and audited financial statements, the bank has scheduled the annual general meeting date for 24 June and the record date for 21 May.

In the last year, its consolidated earnings per share of Tk4.29, which was Tk3.94 a year ago.

Investment Corporation of Bangladesh (ICB), a state-owned non bank financial institution, has incurred Tk588 crore consolidated loss in the first nine months of the current fiscal year.

The ICB approved the nine months financials at its board of directors meeting held today (28 April).

The losses almost doubled over the same time of the previous fiscal year as it had incurred loss of Tk277 crore, its data showed.

Regarding the loss, ICB attributed lower capital gains from buying and selling shares and increasing interest rate for deposits.

Its quarterly data showed, during the July to march period, its loss per share stood at Tk6.79.

When India and New Zealand signed a Free Trade Agreement (FTA) in New Delhi yesterday (27 April), media attention focused mainly on tariffs and market access, as often happens on such occasions.

But what is often overlooked is the bigger picture of geopolitics and geoeconomics beneath bilateral trade, tariffs and non-tariff issues under FTAs.

The agreement with New Zealand is the seventh bilateral FTA India has signed in the last three and a half years.

With planned deals with the European Union and the United States, the total would rise to nine FTAs with 38 advanced economies, covering nearly 65–70% of global GDP.

For India, the common thread in these seven FTAs is support for exports, agricultural productivity, student mobility, skills, investment and services.

Under the FTA, New Zealand has committed $20 billion in investment in India. New Zealand invests nearly 8% of its GDP overseas annually, with total overseas investment valued at $422.6 billion as of March 2025.

There are two main elements to India's new approach.

First, it signals New Delhi's strategy of pursuing trade partnerships with developed economies that provide real market access for labour-intensive sectors at a time when the multilateral trading order is weakening and the world faces tariff wars and growing protectionism.

Second, bilateral trade routes have taken precedence over regional trade groupings.

Indian Commerce Secretary Rajesh Agrawal summed up the new approach by saying India is forging partnerships with developed economies that deliver real market access for labour-intensive sectors and will create jobs while empowering youth, women and MSMEs.

New Zealand is the third member of the five Anglophone countries with which India has entered into an FTA. The other two are Britain (2025) and Australia (2022), while talks are continuing with Canada and the United States. These five countries are part of the "Five Eyes", an intelligence-sharing security grouping.

India is not a member of the Five Eyes and has not entered into any formal alliance with them.

Yet economically, New Delhi has steadily accelerated trade agreements with developed democracies closely aligned on security, technology, investment rules and supply chains.

This shows how India is increasingly engaging with some of the world's most advanced economies, which account for nearly 65-70% of global GDP.

At $49,380, New Zealand is among the higher-income economies in the Oceania region. India's total trade in goods and services with New Zealand reached $2.4 billion in 2024.

Two points stand out. First, India appears focused on gaining access to high-income consumers in developed countries. Second, the current volume of bilateral trade is of secondary importance.

India has far larger bilateral trade volumes with many other countries, including Bangladesh. But when it comes to FTAs, the priority appears to be the more lucrative markets of advanced economies. In 2024, New Zealand's imports stood at $47 billion, while exports were $42 billion.

Bangladesh's inflation rose to an average 8.8% year-on-year in the January-March quarter of FY26, up from 8.3% in the previous quarter, driven mainly by higher food and energy prices, according to Bangladesh Bank's latest quarterly report released today (28 April).

The central bank attributed the rise to Eid-related food demand and persistent energy costs.

Food inflation was the main contributor, increasing by 1.2 percentage points to 8.6%.

Within this segment, vegetable prices saw a sharp reversal, contributing 22.7% to the overall rise after previously contracting 13.4%. Protein prices accounted for 44.6% of the food inflation increase, while cereal prices eased during the period.

At the retail level, prices of rice, lentils, soy oil and chicken rose, while onion prices declined sharply.

Core inflation edged down to 8%, supported by declines in clothing, healthcare and furniture costs. However, transport and communication costs surged significantly to 19.4%, offsetting some of the moderation.

Energy inflation also increased to 14.9% in Q3 FY26, compared to 14.4% in the previous quarter. Solid fuels such as firewood, agricultural by-products, cow dung and jute sticks remained key drivers, alongside higher gas prices.

The report noted that price pressures broadened during the quarter, with 230 of 382 tracked CPI items recording price increases in March. Despite this, kernel density analysis suggests inflation in FY26 has been less volatile compared to FY25.

The wage-price gap narrowed only slightly, with wages rising 8.1% compared to inflation at 8.7%, continuing to squeeze real incomes amid weak economic growth.

The Asian Development Bank has projected full-year FY26 inflation at 9%, warning that global oil price volatility remains a key risk.

Bangladesh Bank also stressed the need for continued vigilance to anchor inflation expectations and protect household purchasing power.

The Bangladesh Securities and Exchange Commission (BSEC) has banned three audit firms and four auditors from auditing listed companies for several years after they failed to audit the financial reports of two listed firms properly.

In separate orders issued on April 23, the commission banned Mahfel Huq & Co Chartered Accountants, Ata Khan & Co Chartered Accountants, and Shiraz Khan Basak & Co Chartered Accountants. It also banned four auditors who are current or former partners of these firms.

The action comes amid long-standing criticism that auditors often go unpunished despite failing to detect irregularities in listed firms. As a result of inaccurate financial reporting, many investors were misled into buying shares and later suffered significant losses.

All three audit firms failed to properly audit the financial reports of Ring Shine Textiles for three separate years, according to BSEC.

During the pre-IPO period, Ring Shine Textiles distributed shares free of cost through a private offer, which was described as a clear act of forgery. The company also issued stock dividends to shareholders who had not paid for their shares. These allotments increased its paid-up capital without any actual money being received.

Later, in 2019, the company raised Tk 150 crore from the stock market to buy machinery and repay bank loans.

However, none of these irregularities was reported by the auditors.

MAHFEL HUQ & CO

Mahfel Huq & Co was banned for three years for failing to properly audit the financial statements of Ring Shine Textiles for the year which ended on June 30, 2018.

The audit did not provide reasonable assurance that the financial statements showed a true and fair view of the company’s financial position and performance, as required under auditing and reporting standards.

An enquiry committee formed by the BSEC found major irregularities in key items such as assets, retained earnings, and net profit. It also found that the firm issued an unmodified audit opinion without obtaining sufficient and appropriate audit evidence.

As a result, BSEC barred the firm from auditing any listed securities for three years from the date of the order.

The firm was also banned for one year for failing to properly audit Fareast Islami Life Insurance for 2018. A special audit found material irregularities, inadequate disclosures, and deficiencies in the financial reports, leading to the suspension.

In addition, Md Abdus Sattar, a former partner of the firm, was prohibited from auditing any listed securities issuer for five years.

Md Abu Kaiser, another former partner, was barred for two years.

ATA KHAN & CO

Ata Khan & Co faced action after a BSEC inquiry committee found material irregularities and anomalies in key financial statement items, including the assets and net profit of Ring Shine Textiles for the year ended June 30, 2019.

The firm issued an unmodified audit opinion without obtaining sufficient and appropriate audit evidence to support the reported figures.

It, along with its engagement partner, was found jointly and severally responsible for failing to conduct the audit in line with securities laws, resulting in financial statements that did not present a true and fair view of the company’s position and performance.

As a result, Ata Khan & Co was barred from inclusion in the BSEC auditors’ panel for three years, while Maqbul Ahmed, a partner of the firm, was barred from the panel for five years.

SHIRAZ KHAN BASAK & CO

Shiraz Khan Basak & Co audited Ring Shine Textiles for the year ended June 30, 2020, with Ramendra Nath Basak serving as the engagement partner, although he was not enlisted in the BSEC auditors’ panel.

A BSEC inquiry committee found material irregularities and anomalies in key financial statement items. The firm issued an unmodified audit opinion without obtaining sufficient and appropriate audit evidence to support the figures in the financial statements.

The audit failed to ensure that the financial report presented a true and fair view in line with International Financial Reporting Standards. The firm and its engagement partner were found to have failed to comply with securities laws.

As a result, Shiraz Khan Basak & Co was made ineligible for inclusion in the BSEC auditors’ panel for three years, while Ramendra Nath Basak was barred from the panel for five years.

The Daily Star emailed all the audit firms on Monday, but received no response before the report went to print. It also tried to contact Wasequl H Reagan, a partner of Mahfel Huq & Co, through phone calls and text messages, but he did not respond.

A shortage of soybean oil that began in early March shows little sign of easing, pushing retail prices above the government fixed rate, with customers now paying up to Tk 15 more per litre.

The government has set the price of a one-litre bottle at Tk 195. However, retailers across the country are charging between Tk 200 and Tk 210.

Small shopkeepers, supermarket chains and wholesalers say they are receiving less than half of their usual daily demand for the cooking staple, most of which Bangladesh imports.

Refiners have not said clearly whether they have reduced supply. However, official data show soybean oil imports fell sharply in the January-April period compared with the same period last year.

Refiners say global prices and freight costs have increased, but authorities have yet to approve their proposal to raise local rates. They say it is no longer possible to import and sell the product at a loss.

Nurul Alam Sikder, a shopkeeper in Dhaka’s Pallabi area, said he last received bottled soybean oil from dealers about three weeks ago. Dealers are saying that there is a supply shortage, so they are unable to provide it.

Firoj Alam, manager of retail chain Daily Shopping, which has 115 outlets nationwide, said bottled soybean oil has not met demand since the beginning of April.

Currently, only about 30 percent to 40 percent of the required amount is being supplied, said Alam.

Speaking on condition of anonymity, a senior official at another supermarket chain said importers have failed to supply enough bottled soybean oil since the last week of February. At present, only 25 percent to 30 percent of the required supply is available.

The official said many customers are returning empty-handed when they come to buy oil. They are expressing frustration with them over not being able to get it.

Abu Bakar Siddique, an edible oil wholesaler at Karwan Bazar, one of Dhaka’s largest kitchen markets, said the squeeze has also cut dealer commissions because the maximum retail price has not increased.

DEALERS CUT BACK SUPPLIES

During a visit to kitchen markets in Chattogram yesterday, it was found that 1 litre and 2 litre bottles were available at some shops, while 3 litre and 5 litre bottles were largely missing from shelves.

Retailers were selling bottled soybean oil at Tk 5 to Tk 7 above the maximum retail price printed on the packaging. Traders say they are receiving less than 20 percent of their usual supply.

Abul Hashem, a retailer in the port city, said limited deliveries from distributors have disrupted sales and forced them to ration stock.

Hashem said retailers are not receiving edible oil in line with demand. Dealers said their commission has also been reduced.

“As a result, we are buying oil at Tk 1 to Tk 2 higher than the maximum retail price printed on the bottle. If we do not add at least Tk 5 per litre, we incur losses,” he added.

In Sylhet, retailers reported a similar picture.

Ashis Das, a retailer at Bagbari area, said, “Dealers have stopped providing supplies for over a week. Wholesalers in Kalighat are also almost out of stock, so we are having to run our shops without oil.”

Another retailer, Kapil Ray, said, “No company has provided oil for several days. We have managed to source small quantities of oil from a wholesaler at the printed MRP. I am selling these to my regular customers without any profit just to maintain our relationship.”

A wholesaler in the same area, who asked not to be named, said supplies from the company depot are not even close to 20 percent of demand.

He said, “After paying the price in advance, we received only 300 litres of oil last Thursday. Today [Tuesday], we will receive another supply of 300 litres, but now with a condition to purchase an equal amount of bottled water.”

At Shaheb Bazar in Rajshahi, shopkeeper Sumon Hossain described the edible oil market situation as “very bad”.

“There is almost no supply now. Prices have also increased. We have to buy a two-litre bottle for Tk 388 and sell it for Tk 390. That is only Tk 2 profit on a two-litre bottle,” he said.

“On top of that, we have to send our own people to collect the oil from dealers because they do not deliver it. There are transport costs. Retailers are actually facing losses,” said Hossain.

Commerce ministry data show soybean oil imports fell sharply in the January-April period compared with the same period last year.

Soybean oil imports dropped from 4.48 lakh tonnes in January-April last year to just 2.61 lakh tonnes this year.

Importers say they cut shipments because domestic prices have not been adjusted in line with international rates. Selling at a loss is unsustainable, they say, despite repeated appeals to the current and previous interim government for a price increase.

World Bank commodities data show soybean oil sold at $1,154 per tonne in January. The price rose to $1,282 in February and to $1,482 in March.

The country’s annual demand for edible oil stands at 24 lakh tonnes, around 90 percent of which is met through imports, according to the Bangladesh Trade and Tariff Commission.

Mohammad Dabirul Islam Didar, head of finance and accounts at Bangladesh Edible Oil Limited, which markets Rupchanda brand soybean oil, said the company continues to sell bottled soybean oil at the maximum retail price and does not charge above it.

He said rising import and supply chain costs have put the company under pressure. It has applied to the Ministry of Commerce for a price adjustment to help maintain supply chain stability.

Didar said it is not possible to sustain operations at a loss. Discussions have taken place over possible VAT adjustments, but no action has been taken.

The Daily Star tried to contact Biswajit Saha, director of corporate and regulatory affairs at City Group, which markets the Teer brand of soybean oil, for comment but received no response.

A widening revenue shortfall is driving the government toward heavy bank borrowing, raising concerns over tighter credit availability for the private sector and mounting fiscal pressure in the coming years, the Bangladesh Economic Association (BEA) said.

“If the revenue gap persists, the trend [of government bank borrowing] could deepen further in FY2026-27, amplifying a ‘crowding out’ effect where government demand for funds limits lending space for businesses,” said the association.

The economists’ body raised the issue yesterday during a pre-budget discussion with the National Board of Revenue (NBR) officials at its headquarters in Dhaka.

BEA estimates that government borrowing from banks may reach around Tk 1 lakh crore in FY26. The amount could rise to Tk 1.1 to 1.3 lakh crore in FY27, with the deficit remaining at 4.5 to 5 percent of GDP.

As of February in the current fiscal year, the government borrowed Tk 88,309 crore from the banking system and Tk 4,033 crore from non-banking sources, according to Bangladesh Bank data.

The BEA also said the upcoming budget will face pressure from political commitments, including pay-scale adjustments, family card programmes, agricultural support, and social safety-net expansion.

“Ensuring food security and stabilising prices of essential goods will further strain fiscal space,” said Mohammad Masud Alam, member of the BEA.

He also warned that global energy market volatility, especially rising tensions in the Middle East, could push up oil prices, increase import costs, and add pressure on foreign exchange reserves, posing additional risks to macroeconomic stability.

Speaking about raising revenue, he suggested urgently designing a comprehensive framework to bring Bangladesh’s fast-growing digital economy under the tax net to boost the country’s tax-to-GDP ratio.

At the event, Mahbub Ullah, convener of the BEA, said the NBR should take stronger action against tax evasion in the real estate sector, in cases of wealth tax, and cases of underreporting family and personal wealth.

In response, NBR chairman Md Abdur Rahman Khan said they are working on this issue.

Ahad Al Azad Munem, research associate of the Policy Research Institute (PRI) of Bangladesh, said that currently, about 28 percent of total revenue comes from customs or trade taxes.

“Such a high dependence on trade taxes is not considered international best practice.”

The NBR chairman said that since the country’s overall revenue collection is low, whenever any reform or change is proposed in major revenue sources, the decision-makers become hesitant.

“This reality must be acknowledged.”

The Centre for Policy Dialogue (CPD) urged the NBR to ensure tax justice, protect low-income groups, and take stronger measures to prevent tax evasion.

The Anti-Tobacco Media Alliance (ATMA) has proposed merging the lower and medium cigarette tiers and setting the price of a 10-stick pack at Tk 100, Tk 150 for the higher tier, and Tk 200 for the premium category.

It also recommended adding a specific excise duty of Tk 4 per pack.

According to their proposal, this could generate around Tk 44,000 crore in additional revenue compared to the current fiscal year and potentially prevent nearly 400,000 premature deaths in the long term.

Business Initiative Leading Development (BUILD) proposed that the government provide clear direction about the separation of the tax policy and tax administration.

Besides, the NBR should look into the gap between the registered companies and actual return submission numbers, it said.

The Bangladesh Society for the Change and Advocacy Nexus (B-SCAN), a volunteer organisation, demanded raising the tax-free income for differently abled people to up to Tk 6 lakh from the existing Tk 5 lakh.

Apex Footwear PLC, the country's leading footwear manufacturer and exporter, reported a staggering turnover of Tk616 crore during the January-March quarter of the 2025-26 fiscal year, yet managed to retain only Tk1.06 crore as net profit.

This disparity reflects a razor-thin profit margin of just 0.17%, a figure that trails significantly behind industry peers such as Bata Shoe.

The company's latest unaudited financial statement reveals that despite a 14% growth in revenue compared to the same period last year, the bottom line was heavily weighed down by a combination of surging finance costs, higher tax burdens, and rising operational expenses.

During the third quarter, spanning January to March 2026, Apex Footwear's revenue climbed to Tk615.96 crore from Tk540 crore in the corresponding period of the previous year. While the net profit saw a modest 9% year-on-year increase, it reached only Tk1.06 crore, yielding an earnings per share of Tk0.54.

The financial data indicates that the cost of doing business has escalated sharply, with the cost of goods sold rising by 10% to Tk488 crore.

Furthermore, marketing, selling, and distribution expenses grew to Tk93.37 crore, while finance costs – primarily driven by rising interest rates on loans – jumped by 16% to reach Tk16.99 crore.

On a broader scale, the company's performance for the first nine months of the current fiscal year (July-March) showed a similar trend of high volume but constrained profitability. Cumulative revenue for the nine-month period reached Tk1,559 crore, up from Tk1,369 crore in the previous year.

Cumulative net profit for the period stood at Tk8.91 crore, compared with Tk6.99 crore in the same period of the previous financial year, indicating improved earnings but continued pressure on margins.

Despite the thin margins, the company maintained a strong financial position, with a net asset value per share of Tk351.89 and net operating cash flow per share of Tk122.92 as of March 2026.

The significant squeeze on profit margins has been attributed largely to the current taxation framework governing export proceeds.

A senior official of the company said the sharp decline in margins has been worsened by the nature of tax deduction at source (TDS).

He noted that in the export business, banks deduct tax at the source immediately upon the receipt of export proceeds. "Because these deductions are not strictly tied to the export revenue of a specific accounting period, the tax cost often appears disproportionately high relative to the quarterly profit."

Industry insiders further elaborated that footwear exporters are required to pay 1% of their total export value as TDS. Although this amount can be adjusted against final income tax at the end of the year, it is not refundable.

This creates a systemic hurdle for companies operating on low margins; if the final calculated tax on income is lower than the amount already deducted as TDS, the company cannot claim a refund, effectively turning the deduction into a final tax that erodes the actual profit.

Following the disclosure of these financial results, investor sentiment on the Dhaka Stock Exchange remained cautious. Shares of Apex Footwear closed 0.83% lower at Tk202.60 today.

Based on the latest quarterly data, the company's price-to-earnings ratio stands at 33.47, while its dividend yield is 1.23%.

Chinese regulators have blocked Meta's planned acquisition of artificial intelligence start-up Manus, a deal estimated at about $2 billion, citing restrictions on foreign investment.

The National Development and Reform Commission prohibited the transaction and ordered both parties to withdraw, according to details of the decision, reports the BBC.

Manus has drawn attention for what it describes as "truly autonomous" agents, technology designed to independently plan, execute and complete tasks based on initial instructions, rather than relying on continuous user prompts. Analysts had viewed the capability as a "natural fit" for Meta's push into artificial intelligence under Chief Executive Mark Zuckerberg.

The regulatory intervention reflects concerns tied to Manus's origins. Although now headquartered in Singapore, the company was founded and previously based in China, making it subject to rules governing the export or sale of technology to foreign entities.

The review process has also involved legal complications. In March, Manus's two co-founders were placed under exit bans, preventing them from leaving China while authorities examined the deal.

Despite the block, Meta has said the Manus team is already "deeply integrated" into its operations, working to expand the service for millions of users. That level of integration could complicate efforts to "unwind" the arrangement.

The decision comes amid broader tensions between the United States and China over advanced technologies. The White House has said it plans to work with US companies to counter what it called "industrial-scale campaigns" by foreign actors, particularly in China, to appropriate AI innovations. Chinese officials, in turn, have criticised what they describe as the "unjustified suppression" of Chinese firms and say the country is emerging as a global "innovation lab".

Within Meta, the development coincides with a period of restructuring as the company increases spending on AI. It recently announced plans to cut about one in ten jobs, its largest round of layoffs since 2023. Meta has said it hopes for an "appropriate resolution" to the regulatory review and maintains that the transaction complied with applicable laws.