The Dhaka stock market rebounded strongly on the back of fresh policy support from the central bank, with investors cheering the relaxation of down payment requirements for loan rescheduling amid ongoing stress in the banking sector.

The benchmark DSEX of the Dhaka Stock Exchange (DSE) jumped 85 points, or 1.55%, to close at 5,553, snapping its recent subdued trend.

The blue-chip DS30 index also rose 33 points to 2,137, reflecting broad-based gains as 347 issues advanced, 21 declined, and two remained unchanged.

Market capitalisation increased by Tk5,280 crore to Tk7.16 lakh crore, signalling renewed investor confidence, while turnover climbed 26% to Tk718 crore, indicating improved participation across sectors.

According to EBL Securities, the market momentum reverted to a positive trajectory following recent corrections, after election-driven optimism had cooled.

Buying in banking stocks primarily drove the rally, as investors viewed the central bank's latest move to ease loan rescheduling rules as a favourable step to manage rising non-performing loans in the sector.

The market opened on a strong footing, gaining nearly 80 points within the first half hour of trading, with predominant buying interest in large-cap stocks setting the tone for the session. Confidence returned gradually, prompting investors to accumulate shares across sectors, reflecting perceived strength in underlying market momentum.

Banking stocks led the turnover chart, with City Bank and BRAC Bank among the most actively traded.

Other top turnover contributors included Summit Alliance Port Limited, Khan Brothers PP Woven Bag Industries, and Olympic Industries.

Market insiders said the rally was further supported by a recent 18% cut in furnace oil prices by the Bangladesh Energy Regulatory Commission, expected to reduce electricity generation and factory overhead costs, particularly benefiting manufacturing companies.

Investors were also encouraged by circulating speculation about potential changes in top positions at the stock market regulator, adding to market optimism.

Among the day's top gainers were RSRM Steel, Midas Finance, and LR Global Mutual Fund One, each rising 10%, followed by Alif Manufacturing and Energypac Power with notable advances.

On the losing side, Meghna Cement fell 8.3%, while Bata Shoe, Zeal Bangla Sugar, Standard Bank, and ICB AMCL First Agrani Bank Mutual Fund posted modest declines.

Delivering structural reforms, improving external liquidity and lifting revenue collection will be crucial to restoring macroeconomic stability in Bangladesh, said Fitch Ratings in a report released on Sunday.

The global rating agency said the general election held on February 12 has eased near-term political and policy uncertainty, creating room for progress on stabilisation.

The Bangladesh Nationalist Party (BNP)-led alliance secured a parliamentary supermajority, along with a majority “yes” vote in a referendum that could pave the way for constitutional reforms.

However, the road ahead will not be straightforward, it warned.

Fitch said longstanding credit constraints such as weak governance, fragilities in the banking sector and a thin external liquidity buffer mean the new government’s ability to carry through its macroeconomic and fiscal reform agenda will determine the rating impact.

Fitch Ratings, one of the big three global credit rating agencies alongside S&P Global and Moody’s, said that execution will be decisive.

The referendum result could open the door to institutional reforms, including a shift from a unicameral to a bicameral system, stronger judicial independence and term limits for the prime minister.

“However, implementation could be complex and time-consuming, keeping execution risk elevated.”

Fitch underlined the importance of staying the course under the $5.5 billion programme with the International Monetary Fund (IMF). Stronger tax mobilisation and prudent management of foreign exchange reserves will also be vital to underpin stability and support durable growth.

“The reform agenda appears consistent with the macro-stabilisation agenda under the IMF programme,” Fitch said.

It added that “ongoing reform implementation and durability of such reforms beyond the IMF programme will be a key condition for facilitating macroeconomic stability and growth.”

At the same time, external buffers remain a near-term watchpoint. “External liquidity remains another near-term indicator even as reserves improve,” Fitch noted, adding that policymakers must maintain stabilisation measures to “keep external financing risks in check.”

On public finances, the agency described the structurally low revenue intake as a core weakness. The BNP manifesto sets a target of raising the tax-to-GDP ratio to 10 percent through administrative reform, fewer exemptions and a broader tax base.

“This matters for credit quality,” the agency said, signalling that stronger revenue performance will be central to easing fiscal strain and entrenching stability.

Fitch projects general government revenue to GDP at 8.6 percent by FY27, up from 7.8 percent in FY25.

Policy signals in the BNP manifesto suggest the new government is likely to continue the economic and fiscal reforms initiated under the caretaker government. At the same time, plans for higher social spending could stretch public finances if revenue measures fall short, testing the authorities’ ability to balance growth ambitions and electoral pledges with fiscal discipline.

The manifesto also outlines a pro-private sector agenda. It promises simpler licensing rules, incentives for export-oriented industries and a push to lift foreign direct investment to 2.5 percent of GDP from an estimated 0.4 percent of GDP in FY25.

Efforts to strengthen governance in banks and tackle non-performing loans (NPLs) could, if delivered, ease a major constraint on the sovereign credit profile.

With a two-thirds majority in parliament, the BNP should have the numbers to press ahead with its policy plans. The election outcome also lowers the risk of a prolonged political vacuum that could have hampered economic decision-making.

Still, political risk has not disappeared. Bangladesh, rated B plus with a Stable outlook, has a history of polarisation and pre-election unrest. That leaves scope for renewed tension if promises prove hard to fulfil or if performance falls short of expectations.

“The military may also continue to play a role in politics,” said the agency.

The US Customs and Border Protection agency said it will halt collections of tariffs imposed under the International Emergency Economic Powers Act at 12:01 am EST (0501 GMT) on Tuesday, more than three days after the US Supreme Court declared the duties illegal.

CBP said in a message to shippers on its Cargo Systems Messaging Service that it will de-activate all tariff codes associated with President Donald Trump's prior IEEPA-related orders as of Tuesday.

The IEEPA tariff collection halt coincides with Trump's imposition of a new, 15% global tariff under a different legal authority to replace the ones struck down by the Supreme Court on Friday.

Gold climbed to a three-week high on Monday as uncertainty stoked by the US Supreme Court's decision to strike down a vast swathe of President Donald Trump's tariffs pressured the dollar and pushed investors to the safety of bullion.

Spot gold climbed 1.1 percent to $5,158.29 per ounce by 0558 GMT, having earlier hit its highest since January 30. US gold futures for April delivery were up 2 percent at $5,180.40.

"The court's tariff ruling has, aside from earning the ire of the US president, added another layer of uncertainty to global markets, with traders again turning to gold as a defensive play," said Tim Waterer, chief market analyst at KCM Trade.

The US Supreme Court struck down Trump's sweeping tariffs that he pursued under a law meant for use in national emergencies, handing the Republican president a stinging defeat in a landmark ruling on Friday with major implications for the global economy.

After the court ruling, Trump said he would raise a temporary tariff from 10 percent to 15 percent on US imports from all countries.

"Whether gold can claw its way back above $5,400 in the near-term may rest on how long tariff uncertainty lingers and whether the US engages in military action against Iran," Waterer said.

Iran has indicated it is prepared to make concessions on its nuclear programme in talks with the US in return for the lifting of sanctions and recognition of its right to enrich uranium, as it seeks to avert a US attack.

Meanwhile, data on Friday showed that underlying US inflation increased more than expected in December, and signs are pointing to a further acceleration in January, which would strengthen expectations that the Federal Reserve won't cut interest rates before June.

China is making a "full assessment" of the US Supreme Court's tariff ruling and urged Washington to lift "relevant unilateral tariff measures" on its trading partners, the Chinese commerce ministry said in a statement on Monday.

The comments came days after the highest US court dealt President Donald Trump a stinging defeat by striking down many of the tariffs he has used in a global trade war, including some against rival China.

Within hours of the ruling, Trump said he would impose a new 10% duty on US imports from all countries starting on Tuesday, which he raised to 15% on Saturday.

"US unilateral tariffs ... violate international trade rules and US domestic law, and are not in the interests of any party," the Chinese ministry added.

The ministry said it noticed the US planned to maintain tariffs on trading partners through alternative means including trade investigations.

"China will continue to pay close attention to this and firmly safeguard its interests," the ministry said.

Trump will travel to China from 31 March to 2 April for a highly anticipated meeting between the leaders of the world's two biggest economies.

The US Customs and Border Protection agency said it will halt collections of tariffs imposed under the International Emergency Economic Powers Act at 12:01 a.m. EST (0501 GMT) on Tuesday, more than three days after the US Supreme Court declared the duties illegal.

The agency said in a message to shippers on its Cargo Systems Messaging Service (CSMS) that it will de-activate all tariff codes associated with President Donald Trump’s prior IEEPA-related orders as of Tuesday.

The IEEPA tariff collection halt coincides with Trump’s imposition of a new, 15 percent global tariff under a different legal authority to replace the ones struck down by the Supreme Court on Friday.

CBP gave no reason why it was continuing to collect the tariffs at ports of entry days after the Supreme Court’s ruling, and its message offered no information about possible refunds for importers.

The message noted that the collection halt does not affect any other tariffs imposed by Trump, including those under the Section 232 national security statute and the Section 301 unfair trade practices statute.

“CBP will provide additional guidance to the trade community through CSMS messages as appropriate,” the agency said.

Reuters reported on Friday that the Supreme Court decision made more than $175 billion in US Treasury revenue generated by the IEEPA tariffs subject to potential refunds, based on an estimate by Penn-Wharton Budget Model economists. Their estimate from a ground-up forecasting model showed that IEEPA-based tariffs were generating more than $500 million per day in gross revenue.

Goldman Sachs raised its Brent and West Texas Intermediate crude forecasts for the fourth quarter of 2026 by $6 to $60 and $56 respectively, citing lower OECD stocks, even as it continued to assume no Iran-related supply disruption and maintained its view of a surplus this year.

For the year, it now expects Brent to average $64 a barrel, up from $56 previously, and WTI to average $60, up from $52.

Oil prices fell about 1 percent on Monday as the US and Iran prepared for a third round of nuclear talks, easing fears of an escalating conflict.

Brent crude futures were trading around $71 a barrel at 0641 GMT, while US WTI crude futures were at $65.75 a barrel.

In a note dated Sunday, Goldman said its $60 Brent price forecast reflected a gradual fading of a $6 risk premium estimate assuming that geopolitical tensions ease and a $5 decline in the fair value price on rising stocks in the Organisation for Economic Co-operation and Development (OECD).

The bank maintained its 2026 surplus forecast of 2.3 million barrels per day (bpd), assuming no major supply disruption and no Russia-Ukraine peace.

The bank said its 2026 surplus reflects offsetting 0.2 million bpd downgrades to supply and demand on slightly softer growth in Asia.

The bank downgraded its 2026 supply outlook for Kazakhstan, Venezuela, Iran, and Iraq due to realized production misses, while it upgraded supply expectations for the Americas and in core Opec countries with spare capacity.

The bank said it expects Opec+ to begin gradually increasing production in the second quarter of 2026, given that OECD inventories have not built up.

Goldman, however, expects downside risks of $5 for Brent and $8 for WTI for the fourth quarter of 2026 if potential sanctions relief for Iran or Russia accelerates landed stock builds and unlocks higher supply in the longer term.

It expects Brent and WTI to average $65 and $61, respectively, in 2027 and to rise to $70 and $66 by December 2027 on the back of solid demand and slowing supply growth.

Dhaka Chamber of Commerce and Industry (DCCI) has called on the newly elected government to implement a zero-tolerance policy against widespread extortion and public sector corruption to revive the country's "ailing economy".

Presenting the chamber's annual action plan today (23 February), titled "Road to Revival", DCCI President Taskeen Ahmed revealed that extortion at factory levels and within supply chains has increased by 20% to 50% in some areas following the ouster of the Awami League government through 2024 July Uprising.

Addressing a press conference at the DCCI auditorium, he warned that economic progress would remain a "dream" unless these criminal activities are suppressed "overnight with a heavy hand".

He also took aim at a trade deal regarding the reciprocal tariffs signed by the interim government with the United States under a Non-Disclosure Agreement (NDA).

Terming the deal a threat to economic sovereignty, the DCCI chief claimed it binds Bangladesh to purchase $15 billion worth of LNG from the US over 15 years and restricts its ability to offer subsidies.

"Our RMG sector contributes 13% to the GDP, and trade with the US is less than 2% of our GDP. To secure a 1% tariff reduction, we cannot compromise our broader economic interests or our relationships with other major trading partners," he stated, urging the incumbent government to strategically renegotiate the agreement.

On the logistics and energy fronts, the DCCI demanded an immediate reversal of the 41% hike in Chattogram Port service tariffs and called for offshore gas exploration to bridge a daily gas supply gap of 925 MMSCFD.

While the chamber welcomed the government's target to raise the tax-to-GDP ratio to 8%, it insisted on 100% automation of the National Board of Revenue (NBR) to prevent harassment.

The DCCI also lauded the government's recent formal request to the United Nations to defer Bangladesh's LDC graduation by at least three years, citing the economic setbacks from the pandemic and recent political transitions.

Expressing deep concern over the financial sector, Taskeen noted that private sector credit growth plummeted to a 22-year low of 6.49% in FY2024-25.

He also criticised the central bank for shortening the loan classification grace period from nine months to three months. He argued that the move artificially inflated non-performing loans (NPLs) to Tk6.44 trillion, representing 36% of total loans.

With lending rates soaring to 16-17%, the DCCI chief called for a reduction in the policy rate and the introduction of subsidised credit lines for genuine businesses.

He argued that the move is penalising genuine businesses that are suffering from working capital shortages due to massive currency devaluation and high borrowing costs.

"While wilful defaulters must face strict punishment, genuine SMEs and businesses need breathing room. We urge the government to reconsider the loan classification rules, reduce the policy rate, and introduce subsidised credit lines to lower borrowing costs," Taskeen said.

Bangladesh’s agent banking sector is defying conventional trends, recording strong deposit growth even as the number of agents and service outlets declines.

According to the latest report from Bangladesh Bank, total deposits in agent banking reached Tk 49,356 crore at the end of 2025, up 18 percent from Tk 41,785 crore in December 2024. This represents a net increase of Tk 7,571 crore.

The growth comes amid a contraction in the sector’s physical infrastructure.

Agent banking outlets fell from 21,248 in 2024 to 20,501 in 2025, a reduction of 747 service points. Active agents also declined from 16,019 to 15,328 over the same period.

Experts attribute the drop in outlets largely to Agrani Bank’s suspension of certain agent banking operations.

“While the closure of some networks impacted the numbers, the surge in deposits is a positive sign,” said Arfan Ali, a veteran banker and former Managing Director, highlighting renewed public confidence in the formal banking system.

Key Performance Indicators (2025 vs 2024):

Deposits: Tk 49,356 crore, up 18%
Loan Disbursement: Tk 11,755 crore, up 16%
Active Accounts: ~2.5 crore
Transaction Volume: 2.62 crore in Oct-Dec 2025, down 3% from 2.70 crore
Top Banks by Agent Banking Deposits:

Islami Bank Bangladesh PLC: Tk 21,530 crore (Market Leader)
Dutch-Bangla Bank: Tk 6,887 crore
Bank Asia: Tk 6,515 crore
Al-Arafah Islami Bank: Tk 3,869 crore
BRAC Bank: Tk 2,897 crore
Agent banking remains a low-cost avenue for banks to reach rural markets, allowing them to mobilize small savings and channel funds into corporate loans.

Around 30 public and private banks currently offer services including cash deposits, loan processing, utility bill payments, and remittance disbursement.

Despite a slight decline in transaction numbers, the sector’s loan accounts grew to over 2.39 lakh, signalling its rising importance as a source of credit for small-scale borrowers and rural entrepreneurs.

Foreign investment in the country's stock market weakened in 2025, with overseas investors pulling out a net Tk270 crore from equities amid economic fragility, market volatility and pre-election uncertainty, according to data from the Dhaka Stock Exchange.

The data shows that foreign investors sold shares worth Tk2,095.34 crore in 2025, while purchasing stocks valued at Tk1,825.07 crore, resulting in a net negative position of Tk270 crore for the year.

Analysts and insiders said foreign investors remained cautious in the capital market ahead of the February 2026 election amid political and economic uncertainty, continuing to withdraw funds throughout the year.

Reviewing the 2025 trading data, they believe that following the election, foreign investors' confidence in the market has improved, which is expected to turn their net position positive in the coming months.

A fortnightly data for February (1 to 15) showed that in the first 15 days, foreign trading year-on-year increased by 48% to Tk173 crore, which was Tk116.63 crore in the same time of 2025.

Ahsanur Rahman, CEO of BRAC EPL Stock Brokerage, a key brokerage house for foreign investors, told The Business Standard, "Foreign investors were more cautious in 2025 due to the upcoming election and economic uncertainty."

He said that following the election, investors' confidence increased. "In post-election trading, foreigners have turned more bullish in the market and they are concentrating on buying good and fundamental stocks."

He expressed hope that foreign investors' net investment position would turn positive in February, as their investments are likely to exceed their sales.

Md Ashequr Rahman, managing director of Midway Securities, also expressed hope that foreign investment in the capital market is likely to increase after the election, as he has observed fresh fund inflows into the market.

He said that due to various factors – including the prevailing economic conditions – foreign investors remained very cautious, which is why they continued to withdraw funds.

"If the capital market functions properly and the supply of quality stocks is ensured, foreign fund inflows may increase in Bangladesh, as many investors are now shifting towards emerging and frontier markets," he added.

Additionally, reform initiatives by the capital market regulator, the Bangladesh Securities and Exchange Commission, kept the market at a standstill as no IPO to raise funds, and some actions for manipulation led to market volatility.

The existing commission was formed by the interim government in August 2024 after the student-led uprising.

In 2025, foreign turnover in stocks – both buying and selling – slightly increased by 8% to Tk3,920 crore compared with 2024.

Foreign investors withdrew significant funds from stocks in 2024 as well, with their net investment position turning negative by Tk261 crore.

Over the past eight years, foreign investors' net investment position was negative in seven of those years, with 2023 being the only year with a positive position of Tk64 crore.

Analysing the 2025 data, in five out of the 12 months, foreign investors' net investment position was positive, meaning that in those months they bought more shares than they liquidated through sales.

From May to August 2025, foreign investors were particularly active in buying shares, which pushed stocks higher and lifted the DSEX significantly.

Since then, until December, they continued to sell off shares to withdraw funds.

Lack of good stocks

Market experts and investors said that in the local capital, there is a lack of quality and good stocks.

They advised that the new government take initiatives to make the capital market vibrant and to list state-owned, highly profitable firms on the market.

Over the last year under the interim government, there was much discussion to enlist the state-owned firms on the stock market, but not a single firm got enlisted.

Ahsanur Rahman said, "There is a shortage of quality stocks in the market to attract foreign investors. Only a handful of stocks meet their return expectations.

"To revitalise the capital market and draw foreign participation, we must list more fundamentally strong companies."

Bangladesh's export momentum braces for fresh headwinds as uncertainty over the fate of the United States' short-term 15% tariff—whether it will be extended, increased or withdrawn after five months—has prompted American buyers to pause fresh commitments.

Beyond the freeze in new orders, the tariff—imposed by President Donald Trump after the US Supreme Court scrapped reciprocal tariffs—has triggered renegotiations on existing shipments.

Several US buyers are now demanding 2% price cuts on goods already in the pipeline, following the reduction of the tariff from 20% to 15%. Exporters say the move threatens to further erode already thin margins.

Buyers 'sitting on the fence'

At least eight Bangladeshi exporters told The Business Standard that US clients are "sitting on the fence" amid rapidly shifting trade policies. Seven reported a clear pause in decision-making, warning that order flows will not normalise without long-term policy clarity.

Shovon Islam, managing director of Sparrow Group, said buyers are in observation mode.

"They are deferring decisions until the final tariff structure becomes clear. Without certainty, long-term planning is impossible," he said.

SM Khaled, managing director of Snowtex Group, echoed the concern. "Our current order book is secured until June, but there is deep uncertainty about what happens after the five-month window," he said.

For Khaled, whose annual exports exceed $200 million, the US accounts for 20% of total trade. The present volatility, he added, has created a procurement stalemate, with buyers reluctant to commit beyond immediate needs.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association, described the situation as "unpredictable".

"Buyers are in the dark about where the tariff rates will finally land," he said. According to him, customers are placing only minimum-volume orders, a conservative approach that could severely hurt Bangladesh's garment exports if prolonged.

Policy volatility weighs on trade

Economists say the stop-start nature of US trade policy is amplifying risk.

Professor Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue, pointed to the legal oscillation shaping US tariff measures.

"The Supreme Court struck down the initial reciprocal tariffs, but the administration quickly introduced new ones under different statutes," he noted.

Because President Trump retains the authority to impose targeted or "surgical" tariffs on specific products or countries, Mustafizur warned that buyers are operating in a vacuum of uncertainty—booking orders only when unavoidable.

The US remains Bangladesh's largest apparel market, absorbing around 20% of total garment exports.

Data from the US-based Office of Textiles and Apparel (Otexa) show that US imports from Bangladesh reached $8.18 billion in 2025, accounting for 11% of total US global apparel sourcing.

In April 2025, the Trump administration initially set a 37% reciprocal tariff on Bangladesh, later negotiated down to 20% by August. Exporters now fear that a uniform 15% tariff applied equally to all countries would wipe out Bangladesh's relative advantage.

"The earlier tariff structure gave us a head start over China and India," Khaled said. "We captured orders shifting out of China because of higher costs there. With a flat tariff, that incentive disappears."

Otexa data show that between January and November 2025, Chinese garment exports to the US fell 34%, while Bangladesh's shipments grew 12%, alongside gains by several other major apparel exporters.

A level tariff regime, exporters argue, could reverse that trend by intensifying competition.

Buying houses squeezed as buyers seek discounts

The reduction from 20% to 15% has sparked immediate renegotiation attempts.

The Business Standard has seen an email from a mid-sized US buyer requesting a 2% downward adjustment on already-placed orders that have yet to clear customs.

"Please note due to recent tariff changes, Charles is requiring a 2% adjustment to the DDP cost for any goods that have not cleared customs," the message reads, instructing compliance by close of business Monday (US time).

A senior official at a Dhaka-based buying house, speaking anonymously, said the burden of adjustment would fall on intermediaries.

"We cannot push manufacturers for further discounts. We have to absorb the cuts ourselves," he said. For his firm, which sends 90% of its shipments to the US, the financial exposure is significant.

Other agents said the weekend timing of Washington's tariff shift left them scrambling as the US business week began, anticipating further renegotiation requests.

Mohammad Hatem warned that more buyers are likely to follow suit.

Yet exporters argue that the 5 percentage-point tariff reduction should not be captured entirely by retailers. They say manufacturers had already slashed prices during the higher-tariff period to keep orders flowing and deserve to share in the benefit.

Shovon Islam said his group plans to seek a 1% share of the savings from buyers.

Khaled, however, struck a more sceptical tone. "The buyers are pocketing the entire benefit of the lower rates without offering us any concessions," he said.

For now, Bangladesh's garment sector finds itself caught between policy unpredictability in Washington and pricing pressure from its largest export market—waiting for clarity that may not come soon.

The government is set to adopt a "One Health Approach" to tackle health emergencies and pandemics, recognising that approximately 75% of emerging human infectious diseases are zoonotic — naturally transmitted from animals to humans — and that environmental factors also play a crucial role.

A new project titled "Strengthening Health Emergency Prevention, Preparedness, Response and Resilience with One Health Approach" has been proposed, with an estimated cost of Tk2,993 crore. Of the total amount, Tk2,745 crore will be provided as a loan by the World Bank.

The project aims for completion by 2030 and will be implemented jointly by the Health Services Division, the Directorate General of Health Services (DGHS), and the Department of Livestock Services (DLS).

The project proposal has already been sent to the Planning Commission for approval, and a Project Evaluation Committee (PEC) meeting on the proposal is scheduled for next Wednesday, according to Planning Commission sources.

Infograph: tBS
Infograph: tBS

Integrated approach to health safety

The One Health Approach focuses on the interconnectedness of human, animal, plant, and environmental health. The project aims to strengthen Bangladesh's capacity to detect, prevent, and respond to health emergencies.

According to the project proposal, key targets include detecting 70% of priority outbreaks within seven days, delivering 70% of lab results within three days, and certifying 80% of public BSL-2 and 100% of BSL-3 labs for biosafety.

Emergency preparedness measures include establishing epidemiological units in 45 districts, forming 182 rapid response teams, preparing 50 upazilas for health emergencies, and strengthening critical care in 10 medical college hospitals.

Animal health interventions include achieving 80% rabies vaccination coverage among roaming dogs and establishing five animal disease-free zones.

In Bangladesh, in the wake of the 2007 avian influenza outbreak, experts in human, animal, and environmental health came together to form the One Health network. Subsequently, an inter-ministerial steering committee and the One Health Secretariat were established to coordinate and strengthen this integrated approach

Infograph: TBS
Infograph: TBS

Strengthening surveillance systems

The project will implement the One Health Strategic Framework, covering 11 core areas such as governance, workforce development, laboratory capacity, epidemic preparedness, integrated surveillance, food safety, antimicrobial resistance (AMR) control, and environmental protection.

A National Integrated One Health Surveillance and Early Warning System (BOHSEWS) will be developed for real-time disease detection. Laboratory networks, molecular diagnostics, biosafety, and lab information systems will be strengthened, alongside training programs, including sandwich PhD initiatives to build skilled professionals in epidemiology and disease surveillance.

Regional, community-level preparedness

Dr M Mushtuq Husain, scientific secretary of One Health Bangladesh, highlighted the importance of early detection and the "7-1-7" framework: detect infections within seven days, report within one day, and respond effectively within seven days.

The public health expert noted that coordinated action across human, animal, and environmental health sectors is essential to prevent pandemics.

The project also aims to enhance national surge capacity, establish an Emergency Operations Centre (EOC) network, create rapid response teams, maintain emergency stockpiles, and implement AMR control, zoonotic disease prevention, food safety, vector-borne disease control, and digital animal tracking.

Regional cooperation with South Asian countries will be strengthened through joint risk assessments,

In a fresh relief for struggling industries, the Bangladesh Bank has eased loan rescheduling conditions, allowing distressed borrowers to pay only half of the required down payment – 2% of the total outstanding loan – upfront and clear the remainder within six months.

A circular in this regard was issued today (22 February) by the Banking Regulation and Policy Department (BRPD).

The decision also allows additional time extensions and gives bank boards greater discretion over interest-related decisions. Analysts say the measures are designed to stabilise banks' balance sheets at a time when bad loans are climbing and credit growth remains weak.

The circular comes as investment has fallen to multi-year lows and construction activity has slowed sharply. Non-performing loans (NPLs) are hovering above 35%, while borrowing costs range between 14% and 16%.

Against this backdrop, the central bank's decision is widely viewed as an effort to prevent a fresh wave of defaults and give businesses breathing space during a fragile recovery.

Mashrur Arefin, chairman of the Association of Bankers, Bangladesh, said, "While temporary relief can be justified in exceptional circumstances, repeated regulatory forbearance does weaken credit discipline and harm the long-term health of the banking system."

"Capital has a real cost. Continued extensions without strong borrower commitment and equity participation create moral hazard."

"What I fear is such policy signals. They shape behaviour and expectations. They sound like politically motivated decisions," he added. "I call for accountability and market-based discipline, not dependence on repeated regulatory relief."

'Each case is unique'

Sohail RK Hussain, managing director of Bank Asia, said any rescheduling must address the root causes of default.

"If a loan is rescheduled, the root cause must be identified and addressed. If a loan has become overdue and is rescheduled for 10 years, it makes little sense. But if someone has genuinely suffered losses, then the customer must inject new equity. In that case, rescheduling can be meaningful," he said.

He added that under previous regimes, rescheduling was often granted automatically upon application.

"In the past, whenever an application came, loans were rescheduled. Customers effectively enjoyed the bank's money without paying anything. Since every case is unique, this circular gives banks flexibility, but they must implement it prudently," he said.

"If implemented properly, it will be good for the banking sector. If not, it will be harmful," he added.

A deputy managing director of a private bank, speaking on condition of anonymity, said, "Implementing this circular may help lower NPLs, but if customers or businesses do not repay properly, these policy supports will not be effective."

Under the new circular, the Bangladesh Bank also extended the deadline for special loan restructuring. The earlier deadline of 31 December has been pushed back by three months to 31 March 2026.

In addition, decisions regarding interest waivers may now be taken by the boards of the respective financing institutions, within existing policies and based on banker-customer relationships.

The government will hold talks with the United States Trade Representative (USTR) this week to determine whether the recently signed bilateral trade deal remains valid after America’s Supreme Court struck down a large swathe of President Donald Trump’s tariffs on Friday.

The US top court, in its ruling, declared that Trump had exceeded his authority under the International Emergency Economic Powers Act (IEEPA) by imposing sweeping reciprocal tariffs without congressional approval. The ruling limits the president’s authority to impose tariffs under the law, and it is unclear whether agreements concluded under that authority remain valid.

Speaking to The Daily Star over the phone, Commerce Secretary Mahbubur Rahman said, “Firstly, we will observe their position and status of the previous trade agreement with the US.”

“We will also hold stakeholder meetings with the local business community to let them know about the agreement and the latest situation,” he added.

The interim government signed the American Reciprocal Tariff (ART) agreement on February 9, just three days before national elections, committing Bangladesh to importing substantial volumes of American goods to narrow the bilateral trade gap.

The haste was deliberate. When President Donald Trump announced his “Liberation Day” tariffs in April last year, setting Bangladesh’s rate at 37 percent, Dhaka watched rival exporters such as Vietnam and China move quickly to negotiate lower rates. Bangladesh eventually secured a 19 percent tariff after signing the deal.

Two pressures drove the rush, according to Secretary Rahman. The tariff rates being offered to competing countries were uneven, and Washington was pushing for a quick signature before a new government took office and potentially stalled negotiations.

Now, with the US court ruling, the legal ground has shifted.

“We will have to talk with the USTR first about whether the already signed agreement will be cancelled or not, as the deal was signed in reference to the presidential power under IEEPA,” Rahman said.

Meanwhile, following the court ruling, Trump slapped a new 15 percent tariff on all US imports and ordered new trade investigations that could lead to additional levies in the coming months, while insisting that trade and investment deals reached with nearly 20 countries -- most with higher tariffs -- should remain untouched.

Dhaka is proceeding carefully. If the new 15 percent universal tariff applies equally to all countries, Bangladesh sees little urgency to re-engage.

“In that case, Bangladesh will delay in negotiations with the US,” said the secretary, noting that should discriminatory rates re-emerge, the government intends to move quickly to secure a lower ceiling.

“This time Bangladesh will not send any letter quickly as it did earlier, and the government will go slowly now,” he added.

The USTR, for its part, signalled on February 20 that it intends to press ahead with Trump’s trade agenda by other means.

In a statement, it noted that between April and December 2025, America’s goods trade deficit fell 17 percentage points from a 40 percent deficit, in part due to deals that kept protective tariffs in place while opening foreign markets to American exports.

The office said it would launch fresh investigations under Section 301 of the Trade Act of 1974, targeting practices it deems unfair, including industrial overcapacity, forced labour, pharmaceutical pricing, and discrimination against American technology firms.

“Our partners have been responsive and engaged in good-faith negotiations and agreements despite the pending litigation, and we are confident that all trade agreements negotiated by President Trump will remain in effect,” the USTR said.

The American Apparel and Footwear Association, in a separate statement issued on February 20, struck a different note, welcoming the court’s ruling and calling for swift refunds of tariffs it described as unlawfully collected.

“We are confident in Customs and Border Protection’s (CPB) ability to move quickly and provide clear guidance to American businesses on how to obtain refunds for tariffs that were unlawfully collected,” said Steve Lamar, the association’s president and chief executive.

“CBP’s recently modernised, fully electronic refund process should help to expedite this effort,” he added.

Current 2.0-percent mandatory down payment to get default loans regularised has been halved in a latest government measure to stem non-performing loan (NPL) buildup in Bangladesh's banking sector.

Bangladesh Bank (BB) Sunday issued a notification to this effect further easing the loan-rescheduling facility for the struggling borrowers under the policy supports.

The banking regulation and policy department of the central bank sent in the instructions to the commercial banks, directing them to allow half of the 2.0 per cent of the outstanding loans as down payment. And the remaining portion of the down payment may be collected within the next six months.

Under the existing regulation of the loan-rescheduling facility, the borrowers need to pay 2.0 per cent of their unpaid loans as down payment to avail of the facility. But the borrowers will not be allowed to show a paid loan installment or its part before submission of the application as special down payment.

Seeking anonymity, a BB official has said there are many banks which informed them that many borrowers who received policy supports have faced difficulties in paying 2.0-percent down payment in one go. As a matter of fact, the banks kept requesting them to relax the regulation.

"Considering their request, the central bank issued the instruction to the commercial lenders about the latest change in the down payment to facilitate the proceeding," he told The Financial Express.

The central banker also informed that they also extended the timeframe of executing the policy-support-related issues by three more months until March next.

On condition of not being quoted by name on the sensitive affairs, the managing director and chief executive officer of a private commercial bank said they had provided policy support to a group of classified borrowers under the BB-introduced policy-support mechanism under the BRPD circular-7.

But many of them cannot afford to pay 2.0 per cent of their outstanding loans as down payment in one go and the situation remains same to other commercial banks, according to him.

"So, we could not settle them (the borrowers). That's why the BB came up with such relaxation. This is a good move. Now we will be able to execute the loan-rescheduling facility," the seasoned banker said.

The BB allowed commercial banks to offer special rescheduling facility for up to 10 years with a two-year grace period to borrowers whose loans are classified as of December 2025, under a generous government bailout package, according to the banking regulators' policy-support-related circular.

Meanwhile, burgeoning NPLs stand as a serious concerns for the banking industry as the volume of classified loans accumulated to Tk 6.44 trillion by end of September last year-almost 36 per cent of the entire loans disbursed.

Amid growing NPLs, the central bank provided various facilities like policy supports to the struggling borrowers and partial write-off facility. The banking regulator keeps advising the banks to properly use the facilities to contain the growth of NPLs in the industry.

According to the BB sources, the NPL ratio was brought down to 30 per cent by end of December last. Now, the BB has asked the commercial banks to pay high focus on execution of the available facilities to cut it down below 25 per cent by upcoming March and it believes the down-payment-relaxation will help get to the goal.

Former lead economist of World Bank's Dhaka Office Dr Zahid Hossain says down payment is a pre-commitment of the borrowers to recovering the loss of credibility.

He terms 2.0-percent down payment very generous to begin with. "If you don't have this economic viability, how we can believe that they will repay the loans," he says.

"I also don't understand why the bankers are happy with such relaxation. It is good news for the default borrowers," the economist adds.

Treasury bill yields have declined again within a month as rising liquidity in the banking sector reduces pressure on government borrowing.

At the latest auction held today (22 February), yields on treasury bills dropped by 40 to 59 basis points compared with January, with rates falling across all three tenors.

The interest rates on 91-day treasury bills stood at 10.02%, down from 10.42% on 5 January. The 182-day bills were auctioned at 10.11%, compared with 10.54% in January, while the 364-day bills fell to 10.07% from 10.66%.

Treasury bills are short-term government securities sold for periods ranging from 91 to 364 days.

Md Ezazul Islam, director general of the Bangladesh Institute of Bank Management, attributed the decline primarily to two factors.

Why T-bill interest rate crosses 10% again?

He said the Bangladesh Bank has been purchasing foreign currency reserves from commercial banks through auctions, thereby injecting liquidity into the banking system.

"Because the central bank is buying dollars from commercial banks, money is flowing back to the banks, leaving them with ample liquidity," he said.

According to Bangladesh Bank data, the central bank has purchased $5.39 billion from commercial banks through auctions in the current fiscal year.

Ezazul added that slower growth in private sector credit was the second key reason behind the fall in yields, as banks now have surplus funds. Latest data from the Bangladesh Bank show that private sector credit growth stood at 6.10% in December.

A deputy managing director of a private bank said the "massive liquidity" in the banking sector has driven down treasury bill yields, noting that dollar purchases by the central bank have increased liquidity through banking channels.

He also pointed out that deposits in the banking sector have increased compared with earlier periods, further improving liquidity conditions.

Treasury bill yields near 10% amid higher govt borrowing

Another senior official of a private bank said government borrowing has declined as implementation of the Annual Development Programme (ADP) remains slow.

In the first seven months (July-January) of the current 2025-26 fiscal year, ADP expenditure totalled Tk50,556.29 crore – the lowest in nine fiscal years. Spending has even fallen significantly compared with the period of political instability and government transition last year.

In September 2025, treasury bill yields had dipped below 10%. At that time, the interest rate on 10-year treasury bonds fell by 246 basis points within three months, marking the first time in two years that the rate dropped below the 10% threshold.

Bangladesh Bank has purchased $5.38 billion from the foreign exchange market so far in fiscal year 2025-26, reflecting continued efforts to manage liquidity and stabilise the exchange rate.

The central bank bought $123 million from eight commercial banks at a cut-off rate of Tk 122.30 per US dollar yesterday.

With the latest intervention, total dollar purchases in February reached $1.448 billion.

The central bank has been buying the US dollar in recent months amid improved inflows and easing pressure on the foreign exchange market.

Between FY21 and FY25, Bangladesh Bank sold more than $25 billion from its foreign exchange reserves to meet import payments for fuel, fertiliser and food.

However, it has resumed purchasing dollars since the beginning of the current fiscal year as supply increased on the back of higher export earnings and remittance inflows.

Since July, the taka has appreciated against the US dollar.

The country’s foreign exchange reserves have continued to rise due to the central bank’s steady dollar purchases.

Reserves stood at $30.06 billion on February 19 this year, as per the International Monetary Fund (IMF) calculation, up from $20.79 billion on the same date a year ago, according to Bangladesh Bank data.

The Bangladesh Energy Regulatory Commission (BERC) has cut furnace oil prices for public and private power producers and industries by 18 percent, from Tk 86 to Tk 70.10 per litre.

The commission set the rate for the first time yesterday, following a public hearing last month. Previously, the Bangladesh Petroleum Corporation (BPC) used to determine the price on its own.

BPC sells around 8-9 lakh tonnes of furnace oil annually, mainly to public power generation companies, as well as to some private power producers and industries.

At a hearing on January 29, the Bangladesh Power Development Board (BPDB) alleged that BPC had charged up to Tk 644 crore more than the actual supply cost over the past one and a half years.

BPDB officials said BPC maintained a fixed price of Tk 86 per litre during the period, although its procurement cost ranged between Tk 57 and Tk 83 per litre in different months.

The BPDB proposed setting the price at Tk 50.83 per litre.

In contrast, BPC proposed cutting the price by Tk 1 to fix it at Tk 85 per litre.

According to the BERC decision, the margin and transmission charges for oil companies Padma, Meghna, Jamuna and Standard Asiatic Oil Company Limited are Tk 0.71 and Tk 1.20, respectively.

The new rate comes into effect from 12am today.

The Bangladesh Bank (BB) has allowed banks to facilitate the business recovery of struggling borrowers by easing down payment requirements and extending implementation deadlines under its policy support schemes.

The BB issued a circular in this regard yesterday, saying the decision was taken following applications from various banks and stakeholders seeking flexibility in implementing earlier policy instructions.

Senior bankers welcomed the decision, saying it could help distressed industries regain momentum. But they also warned that some wilful defaulters might try to exploit the softer terms.

Under the revised rules, eligible borrowers may now pay their required down payment in instalments. Half of the stipulated amount must be paid at the time of approval, with the remaining 50 percent due within six months of the effective date.

The BB also said that if policy support has already been approved but could not be implemented due to valid reasons, banks may extend the previously fixed deadline by up to three months. In addition, regarding interest-related issues, banks have been instructed to make decisions in line with existing policies, based on banker-customer relationships and applicable guidelines.

In January last year, the central bank formed a five-member committee, led by the executive director of the Department of Offsite Supervision, to provide necessary policy support for restructuring or rescheduling corporate borrowers who defaulted due to factors beyond their control.

The committee’s process of holding tripartite meetings with borrowing institutions or groups and financing institutions concluded on September 30 last year.

On September 16, the BB issued a unified special loan rescheduling policy to maintain economic growth and assist borrowers who had defaulted due to circumstances beyond their control.

About 300 companies, including top defaulter conglomerates, applied to the BB for loan rescheduling or restructuring facilities totalling around Tk 2 lakh crore in the first nine months of last year.

Syed Mahbubur Rahman, managing director and CEO of Mutual Trust Bank Ltd, said the flexibility by the BB may help sick industries recover and return to business in this tough time. The economy is going through stress, he said.

However, bankers cautioned that wilful defaulters may take advantage of the policy support extended to enable sick and affected firms to return to business. As the provision has become general, there is a risk that wilful defaulters and those who did not qualify earlier will receive the support.

Anis A Khan, a former chairman of the Association of Bankers, Bangladesh (ABB), said this would give breathing space to affected businesses to restore their production and services to normal levels after the formation of an elected government.

“It is imperative that businesses take this opportunity to rebuild their frayed infrastructure,” he said.

Bangladesh’s plea for deferment of graduation from the group of Least Developed Countries (LDC) category is likely to be discussed at the five-day meeting of the UN Committee for Development Policy (CDP) beginning in New York today.

Before leaving the country to attend the meeting, Debapriya Bhattacharya, head of the Enhanced Monitoring Mechanism (EMM), a body of the UN CDP, said they will set up an evaluation process for Bangladesh’s plea for LDC deferment for three more years.

Debapriya, who is also a distinguished fellow of the Centre for Policy Dialogue (CPD), said the request will be assessed based on recent socio-economic data, cross-country experiences and progress of the implementation of the Smooth Transition Strategy (STS), the guidebook of the LDC graduation.

UN CDP members will also widely discuss the country statements of graduating and recently graduated countries. Bangladesh submitted a country statement to the UN CDP describing the country’s economic situation in November last year.

Bangladesh is scheduled to graduate from LDC to a developing nation on November 24 this year, as the country has passed all three required criteria for two consecutive assessments, and the third assessment is ongoing.

However, the newly formed government sent a letter to the UN CDP on Wednesday requesting a deferment of the country’s graduation for three more years, as local businessmen have urged for more time to take extensive preparations for a smooth graduation.

Currently, Bangladesh enjoys zero-duty access for 73 percent of its exports as part of LDC provisions. After LDC graduation, this preferential market access will be lost, and Bangladesh may lose 14 percent of its exports or $8.0 billion worth of business in a year, different studies have suggested.

Nepal and Lao PDR are also scheduled to graduate along with Bangladesh this year, but they have not applied for deferment.