Bangladesh's banking sector is facing mounting pressure in the capital market as at least 10 more listed banks are set to be downgraded to the Dhaka Stock Exchange's (DSE) 'Z' category, commonly known as junk stocks, after failing to declare dividends for two consecutive years.

Sources at the DSE said the affected banks include AB Bank, Al-Arafah Islami Bank, IFIC Bank, Mercantile Bank, NRB Bank, NRBC Bank, ONE Bank, Premier Bank, Rupali Bank and United Commercial Bank. If implemented, this will mark the first time these lenders fall into the lowest trading category.

A senior official of the Dhaka Stock Exchange (DSE) said the banks will be downgraded to the 'Z' category from today, the first trading session of the week.

The development follows a similar move earlier this week, when Islami Bank Bangladesh, Standard Islami Bank and SBAC Bank were downgraded after failing to reward shareholders for two consecutive years.

Market sources said the primary reason behind the sector-wide dividend drought is a large provision shortfall against classified loans and investments. Under Bangladesh Bank regulations, lenders with provision deficits are barred from declaring dividends.

To remain compliant with regulatory requirements, several banks have reportedly taken deferral facilities from the central bank, effectively postponing financial obligations while remaining unable to distribute profits.

Financial data for 2025 reflects significant stress in the sector. AB Bank reported a consolidated loss of Tk 3,889 crore alongside a provision shortfall of Tk 16,874 crore.

IFIC Bank posted a loss of Tk 2,560 crore with a shortfall of Tk 18,557 crore.

Even banks that managed marginal profits remain under pressure. United Commercial Bank reported a profit of Tk 23.25 crore, while ONE Bank posted Tk 29.84 crore, both facing provision gaps exceeding Tk 5,000 crore and Tk 1,700 crore, respectively.

Al-Arafah Islami Bank reported a consolidated profit of Tk 85 crore against a provision shortfall of Tk 4,998 crore. Mercantile Bank posted a profit of Tk 121 crore with a shortfall of Tk 2,161 crore.

NRB Bank earned Tk 13.81 crore profit with a Tk 180 crore shortfall, while NRBC Bank reported Tk 13.25 crore profit against a Tk 1,006 crore gap.

Premier Bank incurred a loss of Tk 993 crore with a Tk 6,089 crore provision shortfall, while Standard Islami Bank reported a profit of Tk 80.34 crore against a Tk 5,904 crore shortfall.

Rupali Bank posted a profit of Tk 23.25 crore but faced a Tk 14,014 crore provision gap.

Islami Bank Bangladesh reported the highest provision shortfall at Tk 84,615 crore, despite posting a profit of Tk 136 crore in 2025.

Market experts said the expected downgrade signals deteriorating fundamentals in the banking sector, raising concerns over governance, asset quality and risk management.

Z-category stocks are widely considered high-risk due to persistent compliance failures and weak financial health. These shares are subject to stricter trading rules, including a T+3 settlement cycle instead of T+2, cash-only transactions and restrictions on margin loans, significantly reducing liquidity.

Currently, 36 banks are listed on the country's stock exchanges. With 10 more banks set to join the five already in the junk category, a total of 15 banks, around 42% of listed banking stocks will be in the 'Z' category.

This does not include five other banks, Social Islami Bank, Exim Bank, Global Islami Bank, First Security Islami Bank and Union Bank, whose shares remain suspended due to merger-related processes with Sommilito Islami Bank, though they are yet to be formally delisted.

Analysts attribute the growing crisis to a surge in non-performing loans, many of which were allegedly disbursed without adequate due diligence in previous years.

Following regulatory tightening in 2024, scrutiny has intensified, exposing deeper weaknesses in loan portfolios across several banks.

A senior market analyst said that while stricter regulatory measures are necessary to restore discipline in the sector, general shareholders are bearing the cost of governance failures and deteriorating asset quality, as dividend flows continue to shrink.

Bangladesh has stayed off the latest United States intellectual property (IP) rights watch lists, but Washington has still urged Dhaka to strengthen enforcement to prevent unfair trade practices.

In its annual Special 301 Report released on Thursday, the Office of the United States Trade Representative (USTR) identified 26 trading partners for intellectual property protection and enforcement concerns.

It grouped them into three categories -- Priority Foreign Country, Priority Watch List and Watch List.

In this year’s report, Vietnam has been designated a Priority Foreign Country, a rare and severe classification that can trigger a trade investigation. The USTR said Vietnam has failed to address long-standing concerns over intellectual property protection and enforcement.

The designation is reserved for countries with the most serious IP-related practices that have a significant impact on US industries and are not making meaningful progress in negotiations or reforms.

The report said Vietnam had shown a persistent failure to resolve long-standing concerns. The United States first raised the issue in 2020 through a proposed IP Work Plan, followed by a revised proposal in 2023.

The USTR report added that Vietnam has made little progress in later bilateral engagement, including talks linked to an Agreement on Reciprocal, Fair, and Balanced Trade. Vietnam’s actions or inactions are causing significant damage to industries reliant on intellectual property in the US and other markets.

This year, the USTR placed six countries on its Priority Watch List. Those are Chile, China, India, Indonesia, Russia and Venezuela.

It said it would seek to engage intensively with these partners over the coming year.

A further 19 trading partners have been placed on the Watch List. Those are Algeria, Argentina, Barbados, Belarus, Bolivia, Brazil, Canada, Colombia, Ecuador, Egypt, the European Union, Guatemala, Mexico, Pakistan, Paraguay, Peru, Thailand, Trinidad and Tobago and Türkiye.

Argentina and Mexico have been moved from the Priority Watch List to the Watch List, reflecting improvements in intellectual property policy. Bulgaria has been removed from the list, while the European Union has been added.

Regarding Bangladesh, the USTR pointed to commitments made under a recently signed Agreement on Reciprocal Trade. This includes broad commitments on market access, economic and national security, and trade standards, including intellectual property.

Apart from Bangladesh, the United States has so far completed such agreements with Argentina, Cambodia, Ecuador, El Salvador, Guatemala, Indonesia, Malaysia and Taiwan.

These agreements, the USTR said, contain commitments aimed at strengthening intellectual property protection and enforcement against piracy and counterfeiting.

Citing a study by the Organisation for Economic Co-operation and Development (OECD) and the European Union Intellectual Property Office (EUIPO), released in May 2025, the USTR report said global trade in counterfeit and pirated goods reached $467 billion in 2021, equal to 2.3 percent of global imports.

USTR said Bangladesh was among the top five source economies for counterfeit clothing globally.

In fiscal 2025, China and Hong Kong together accounted for more than 87 percent of the value of counterfeit and pirated goods seized by US Customs and Border Protection, measured by manufacturers’ suggested retail price.

The report also highlighted ongoing US concerns over the EU’s aggressive geographical indication policies.

It said that the EU’s rules on geographical indications unfairly block American exporters from selling goods under familiar names or trademarks. To counter this, the US is pressing its case in trade talks and global forums such as the Asia-Pacific Economic Cooperation, World Intellectual Property Organization and the World Trade Organization.

It is also negotiating directly with individual countries, including Bangladesh, Brazil, Canada, China, Mexico and others, to ensure American producers can keep access to foreign markets.

The USTR said the Agreement on Reciprocal Trade signatories included provisions aimed at protecting US market access for cheese and meat producers using common names. It said these agreements also include commitments on transparency and fairness in geographical indication protections.

Delays in trademark registration, the report added, remain a major obstacle to protecting intellectual property rights.

Stakeholders identified Bangladesh, Iraq and South Africa as countries with severe delays in processing applications.

Rice supply is expected to fall this year as farmers cut planting acreage across Asia because of fertiliser shortages and soaring fuel costs from the Iran war, with an emerging El Nino also set to squeeze output of the world's most consumed staple.

Rice is central to global food security, and even modest supply disruptions can ripple through countries, lifting prices and straining household budgets, particularly among price-sensitive consumers in Asia and Africa. The UN Food and Agriculture Organization in April forecast rice output would expand by 2% to a record high in 2025/26.

The effects of the Iran war are impacting farmers in top exporters Thailand and Vietnam as well as the import-reliant Philippines and Indonesia, growers and traders said. The war has cut fuel and fertiliser flows through the Strait of Hormuz, a key chokepoint that connects the Gulf to global markets.

Southeast Asia's mainly smallholder farmers also face mounting stress as the El Nino weather phenomenon is set to usher in hotter, drier conditions for the region in the second half of the year.

"Farmers have already started planting rice in some countries and are using fewer inputs because prices have gone up," said Maximo Torero, chief economist at the UN FAO. "We are going to see a tighter global supply situation in the second half of the year and early next year."

In 2008, export curbs by key suppliers more than doubled prices to about $1,000 a metric ton, triggering unrest in several countries. More recently, supply tightness in 2022 to 2023, exacerbated by India's export restrictions, lifted prices and prompted panic buying.

Supply-chain disruption

Rice shipments are already facing supply-chain bottlenecks.

"Logistics have become a nightmare, especially in Asia as there is shortage of polypropylene bags, limited truck availability to move rice to ports and shipping itself has been disrupted," said a Singapore-based trader at a top global rice merchant, who asked to remain unidentified as they are not authorised to speak to media.

While fertiliser shortages and dryness are already curbing yields of smaller crops being harvested in Southeast Asia, the next crop will likely face a bigger reduction.

India, Thailand and the Philippines plant their main crops in June and July, while Vietnam and Indonesia are now sowing their second-season crops.

Most Asian producers grow two or three rice crops a year.

Farmers cut planting

Sripai Kaew-Eam, a 60-year-old farmer in Thailand's Chai Nat province about 151 km (94 miles) north of Bangkok, said high fertiliser and fuel prices have pushed production costs to about 6,000 baht ($183.99) per rai (0.4 acre), from around 4,500 to 5,000 baht for the previous crop, while the price she receives for the unhusked rice she harvests is about 6,200 baht per metric ton.

Fertiliser prices have risen to 1,000 to 1,200 baht per bag, from 850 baht, forcing her to cut her use by half.

"Fertiliser prices are high, fuel prices are high," she said.

The Philippines, the world's biggest rice importer, faces a similar situation.

"Some farmers are now saying they may not plant or will reduce fertiliser use, which would inevitably cut production," said Arze Glipo, executive director of the Integrated Rural Development Foundation.

The country's output could fall by as much as 6 million tons from its typical 19 million to 20 million.

"That would leave the Philippines in a precarious position, as imports are also uncertain due to export restrictions, making it extremely difficult to cover any production shortfall," Glipo said.

In Indonesia, fertiliser supply is not a constraint but the El Nino is expected to curb output.

Indonesia's statistics bureau estimates the rice harvest area in the March to May period will shrink by 10.6% to 3.85 million hectares (9.5 million acres), while unhusked rice production will drop 11.12% to 20.68 million tons.

Despite the supply worries, the world has ample rice inventories following years of bumper output, with India, the world's biggest exporter, holding a record 42 million tons or about one-fifth of global stockpiles, according to US Department of Agriculture data, cushioning any drop in global production.

Most rice grade prices are currently steady but will likely rise even if the Hormuz situation were resolved immediately, the FAO's Torero said.

Opening the strait soon would avoid a major supply issue but "if we don't reopen this in the next two to three weeks, the situation is going to get pretty serious," he said.

Bangladesh's readymade garment sector in Chattogram is facing mounting pressure as prolonged load shedding and rising fuel costs disrupt production, with factory owners claiming a sharp increase in expenses and growing risks to export orders.

Although the Bangladesh Power Development Board claims that the Chattogram region is currently facing a daily load shedding of around 100MW, in reality, the situation is more difficult, according to garment owners.

At Meher Garments on Sagarika Road in the port city, where around 3,000 workers are employed, a typical workday has become a stop-start struggle, according to the authorities.

On 29 April, production at the factory started at 8am but stopped within 10 minutes due to a power outage. It took another 10 minutes to restart using generators. Power came back at 9:40am, but went out again at 11am. Electricity was restored an hour later.

After the lunch break, power went out again at 4:35pm and did not return until 5:25pm. In an eight-hour shift, the factory remained without electricity for roughly three and a half hours, while repeated switching between grid power and generators caused an additional 30 minutes of disruption.

"During summer, we used to face around two hours of load shedding daily, which required about Tk19,000 worth of diesel to keep the factory running," said Khondaker Belayet Hossain, director of the factory and a leader of the Bangladesh Garment Manufacturers and Exporters Association.

"Now, with three to four hours of outages and a 15% rise in diesel prices, our daily fuel cost has climbed to around Tk40,000," he said.

He added that prolonged generator use causes voltage fluctuations, damaging costly machinery and shortening equipment lifespan. "All of this is pushing up production costs, which were not factored in when orders were placed three months ago."

Industry insiders say the situation is not unique to a single factory. Most RMG factories in Chattogram are experiencing three to four hours of load shedding within an eight-hour workday, compounded by fuel shortages and higher operational costs.

As a result, production expenses have surged by about 20%, timely exports are being disrupted, and manufacturers fear losing orders to competing countries.

According to the industry data, 348 out of 699 RMG factories in Chattogram are currently operational. Unreliable electricity and fuel supply have reduced output, placing additional strain on the export-oriented industry.

BGMEA leaders say frequent power disruptions and gas shortages are disrupting production deadlines. This has delayed shipments, forcing some exporters to rely on air freight – significantly increasing costs.

Failure to meet delivery schedules risks eroding buyer confidence, which could affect future orders, they warned.

Former BGMEA vice-president Rakibul Alam Chowdhury said factories are increasingly dependent on alternative fuel sources due to load shedding, driving up production costs.

"Over the past two months, rising freight charges, higher container handling costs at inland container depots, and increased transport fares have pushed overall production costs up by more than 20%," he said.

"As manufacturers seek higher prices from buyers, many foreign clients are cutting back on new orders or shifting to competitor countries," he said.

SM Abu Tayyab, BGMEA director and president of the Chattogram chapter of the International Business Forum of Bangladesh, warned that the prolonged crisis could severely impact the export earnings.

"If the situation continues, small and medium-sized factories may be forced to shut down, leaving hundreds of thousands of workers unemployed," he said.

He stressed the need for urgent steps to resolve load shedding and gas shortages and to ensure energy security, cautioning that failure to act could put Bangladesh's key export sector at serious risk.

When contacted, Fahmida Begum, the executive engineer of the Power Development Board in Chattogram, said, "After the rain, the electricity demand has decreased leaving no requirement for load shedding. But, still there may be power outages due to a fault in the transmission line during thunderstorms and heavy rain."

Bangladesh's economy risks falling into an "energy trap" due to rising global fuel prices, dollar shortages and pressure from import dependence, speakers warned.

The concerns were raised today (2 May) at a webinar titled "Today's Agenda: Economy Trapped in the Energy Crisis?" organised by Power and Participation Research Center (PPRC).

Speakers said the crisis had intensified because of supply constraints, demand-driven reactions and communication gaps. Some early disruptions quickly turned into panic buying, causing a sudden spike in fuel demand. Although rationing and other measures were introduced, uncertainty made the situation more complex. Participants also discussed energy security during future emergencies.

Former energy secretary AKM Zafar Ullah Khan said long-standing planning weaknesses in the energy sector were now becoming clear. Aligning with global markets had further exposed domestic vulnerabilities.

He said questions were being raised about how much fuel Bangladesh could store and for how long. Fuel prices would eventually have to be adjusted in line with international markets, but uninterrupted supply remained the key priority. He added that the country did not have enough storage capacity to handle large fluctuations in incoming or outgoing oil supplies.

Former Bangladesh Agricultural University vice-chancellor A Sattar Mondal said, "Agriculture was becoming increasingly machine-dependent, raising fuel demand. Ensuring steady fuel supply has become essential for maintaining production at the field level."

He said muscle power in farming had largely been replaced by machine power. "Around 4.2 million diesel engines are used across the agricultural sector, not only for irrigation but also in many other activities," he said.

Sattar expected both machinery use and diesel demand to rise further.

Syed Mahmudul Haque, chairman of Trade Services International, said fluctuations in global fuel prices were directly increasing Bangladesh's import costs, putting pressure on foreign currency reserves and the wider economy.

He said every $5 rise per barrel in the international market significantly increased Bangladesh's import bill. He urged the country to consider alternatives, including diversifying sources of supply instead of relying mainly on the Middle East.

Anwar-ul Alam Parvez, chairman of the Bangladesh Chamber of Industries, said changing geopolitical conditions were making fuel supplies more uncertain, requiring coordinated and diversified planning.

"Bangladesh needed short-, medium- and long-term policies to secure the energy sector. Immediate steps should include operating coal-based plants according to capacity, maintaining domestic capability with imports from Adani Group and India, and prioritising gas supplies for fertiliser and productive industries," he said.

Mohammad Nazmul Haque, president of the Bangladesh Petrol Pump Owners Association, stressed the need to expand renewable energy and accelerate domestic gas exploration to reduce import dependence.

"Renewable resources must now be utilised, while more emphasis should be placed on drilling gas wells," he said, adding, "140 wells had been initiated since the current government took office."

Speakers also said that although supply conditions had not improved significantly, stronger demand management and monitoring had helped stabilise the situation gradually. However, uneven distribution at fuel stations and excessive media focus on local shortages had increased public anxiety.

Concluding the discussion, Hossain Zillur Rahman said the fuel crisis had exposed gaps in both immediate response and medium-term planning. Without coordinated policy and effective implementation, such crises could deepen and recur.

He also said accurate information flow during crises was essential, warning that false or exaggerated messaging could further destabilise the situation.

Although the introduction of family and farmers’ cards may bring some relief, excessive reliance on bank borrowing to finance the budget deficit is harmful to the economy, said Fahmida Khatun, executive director of the Centre for Policy Dialogue (CPD).

She made the remarks yesterday at a shadow parliament debate programme organised by Debate for Democracy at the Bangladesh Film Development Corporation (FDC) in Dhaka.

Fahmida said government social safety net initiatives, such as the family and farmers’ card, are promising, but their success depends on transparency and accountability in selecting and managing beneficiaries.

She added that past social protection schemes have often suffered from irregularities and corruption.

Fahmida also said subsidies must be properly targeted, with priority given to agriculture, irrigation, and public transport.

She stressed that the next budget should set clear policy directions-- given limited resource mobilisation, and ensure cost-efficiency.

Fahmida further said that the government depends heavily on borrowing from the banking sector, including the central bank, to cover budget deficits, which she described as harmful.

She argued that greater emphasis should instead be placed on external financing sources.

She also suggested temporarily waiving VAT on imported goods amid global volatility to reduce pressure on consumers. Such a step during Ramadan in the past helped lower prices in local markets, she said, although weak market management could limit its full impact.

Hassan Ahamed Chowdhury Kiron, chairman of Debate for Democracy, said the country’s economy is going through a difficult period due to multiple global and domestic challenges.

He said the current government has taken office at a time when the country is suffering from years of crisis-- the Covid-19 pandemic, the Russia-Ukraine war, economic damage from previous administrations, conflicts in the Middle East, energy shortages, rising inflation, low investment, limited job opportunities, high levels of loan defaults, and pressure from foreign debt.

He added that the US-Israel war on Iran has further worsened the global economic situation.

Rising global commodity prices and higher fuel costs due to Middle East tensions have increased the cost of living in the country, Kiron said in a statement after the programme.

He stressed that in a global recessionary situation, political unity is needed to maintain a tolerable standard of living without putting extra pressure on the government.

He also said both the government and the opposition must act responsibly, learn from past experiences, and avoid undermining each other, while a strong mandate holder should ensure public support by maintaining people’s comfort.

Kiron suggested temporarily reducing VAT and taxes on essential goods and expanding the affordable food supply through open market sales and the Trading Corporation of Bangladesh.

He also called for stronger social safety nets and more programmes like the family and farmers’ card to protect low- and middle-income groups.

Finally, he said the budget should be people-friendly, business-friendly, cautious, sustainable, balanced, and implementable, without putting pressure on lower-middle-income groups, while also helping stabilise prices and support investment and job creation.

In the shadow parliament debate titled “Rising cost of living is driven not by fuel price hikes but by global conditions,” debaters from Kabi Nazrul Government College defeated Dhaka College to win the competition.

The government will provide all promising export sectors with the same facilities currently available to the readymade garment (RMG) industry, Finance Minister Amir Khosru Mahmud Chowdhury said yesterday at a meeting with business leaders.

“If any promising export sector comes to us with a proposal, we will extend to that sector the same facilities that are available to the garment industry,” he said at the pre-budget meeting organised by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and the revenue board at the Pan Pacific Sonargaon.

Bonded warehouse facilities, back-to-back arrangements, and all other relevant support will be provided, he added, citing the gold and diamond sectors as examples of industries held back by the absence of such support.

Goldsmiths, he noted, were leaving the country for a lack of opportunities.

Bonded warehouse facilities allow export-oriented industries to import raw materials duty-free, on the condition that finished goods are not sold domestically. Currently, only the RMG sector enjoys the facility in full; the leather goods sector receives it partially.

The National Board of Revenue (NBR) had long resisted broader extension, citing fears of duty-free materials being diverted to the local market, despite calls from economists to extend the facilities across the board.

The minister acknowledged those concerns but said they could not justify inaction. “It cannot be the case that we do nothing out of fear of theft,” he said, adding that preventing misuse is a separate issue, and solutions will be addressed accordingly.

On taxation, he said the government could not offer broad incentives at present but would work to lower the cost of doing business.

“Wherever you are facing obstacles, let us know, and we will remove them. Tell us where your costs are increasing, and we will directly address those issues within the next three months,” he told businessmen at the meeting.

This is already part of the ruling BNP’s manifesto, but businesses’ input will make it more effective, he noted, adding that while removing all obstacles might not be possible, the government will eliminate most of them. “Give us some time. If we fail, we will take responsibility.”

Stating that many have spoken about expanding the tax net, the minister requested business associations to assist in bringing those who are still outside the tax net into the system.

Painting a difficult economic picture, Khosru said the new government has inherited a damaged banking sector, weakened stock market and over Tk 40,000 crore in unpaid energy bills.

In addition, due to the ongoing conflict in the Middle East, the government is facing an additional energy cost of around $4 billion, he added.

“We are navigating through these challenges across all sectors, but the government does not have unlimited resources… It will take some time for the situation to improve,” the minister said, adding that the government and businesses need to work together to overcome this.

Noting that businesses are also experiencing a serious capital shortage, he said due to currency depreciation, many have seen about 40 percent of their capital wiped out. On top of this, a 13–14 percent inflation rate has further eroded value. “Altogether, nearly 50 percent of capital has been eroded.”

Describing the economy currently in a “low-level equilibrium”, Khosru said generating growth is necessary to move it upward and attract investment. “If poverty, which has risen significantly, is not reduced through higher expenditure, demand will not be generated.”

On the high borrowing costs, he said in the past, monetary supply was tightened to control inflation, but its effectiveness is uncertain.

With interest rates at 15 percent, he said the government would increase the development budget to stimulate growth, but cautioned that investment quality, not volume, was the priority. “If funds are misused or siphoned abroad in the name of mega projects, then a large budget serves no purpose.”

He projected a two-year adjustment period before the economy stabilises. “By the third year, the economy will turn around.”

Khandakar Abdul Muktadir, minister of commerce, industries, textiles and jute, said energy shortages and high borrowing costs had left many industrial sectors fragile, and that resolving those two issues was a prerequisite to new investment.

On reducing the cost of doing business, he said alongside providing targeted relief to the private sector, proposals will be made considering how to strengthen the national exchequer.

He also called for the jewellery sector to be brought fully into the formal economy, arguing that Bangladesh had a skilled workforce but lacked laboratories, design infrastructure, and supportive policy.

“If neighbouring countries can export several billion dollars’ worth of gold annually, why can’t we? We have the technical knowledge and skills. What we need are better laboratories, design facilities, and a supportive government policy,” he added.

Kamran T Rahman, president of the Metropolitan Chamber of Commerce and Industry, said the effective tax rate for many businesses reached 40-50 percent when advance and source taxes were factored in.

He called for unconditional corporate tax reductions, relaxed cash transaction rules, an integrated taxpayer profile system, and online appeal hearings for income tax, VAT, and customs disputes.

The Investment Corporation of Bangladesh (ICB), which is mandated to invest in the capital market, is struggling itself to stay afloat amid an unprecedented financial crisis.

According to its audited financial statements for FY25, the state-owned non-bank financial institution incurred a record loss of Tk588 crore in the first nine months of the current fiscal year. This marks a 111% year-on-year surge in losses, driven largely by prolonged volatility in the capital market.

The report also shows that ICB's bank borrowing costs rose by more than 31%, with interest payments increasing significantly during the period, disclosed in the audited financial statements for FY25.

Investment Corporation of Bangladesh (ICB), the country's largest stock market investor, primarily earns through trading shares—generating capital gains from buying and selling equities, as well as dividend income from listed companies.

In addition, the corporation generates revenue through fees, commissions, and service charges by offering various financial services via its subsidiaries.

As of June 2025, ICB's consolidated investment in stocks stood at Tk13,508 crore at cost value. However, the market value of this portfolio declined to Tk8,256 crore, resulting in a deficit of Tk5,252 crore. This represents a loss of approximately 38.88% relative to the cost price, according to its data.

Officials attribute the decline in earnings to the prolonged volatility in the capital market over the past years. This instability was driven by political uncertainties surrounding the general election, adverse macroeconomic conditions, and continued bearish sentiment influenced by global factors, including tensions related to the US-Iran war situation.
ICB Chairman Professor Abu Ahmed told The Business Standard that the company's core operations are closely tied to the performance of the capital market, further noting that during the reporting period, the market did not perform well due to various factors, which hit the institution badly.

Capital gains—once generated from buying and selling shares—fell sharply as the institution was unable to offload stocks amid a bearish market trend. At the same time, ICB faced increased financial pressure due to higher interest payments on deposits and borrowings from banks and other institutions, which drove up overall borrowing costs, he said.

Previously, the interest rate on funds borrowed for market investments was around 7 percent, but it has now risen to 10 percent or more, significantly increasing expenses. As a result, the institution incurred substantial losses.

When asked about the way forward, the ICB chairman said a major portfolio overhaul is essential, as considerable value has already been eroded. Many shares were acquired at high prices, while their current market value has dropped sharply. In addition, high-cost borrowings must be repaid, potentially with government support.

"We are considering raising capital through the issuance of rights shares to repay borrowings. Once implemented, this plan will reduce liabilities and lower interest expenses, providing ICB with much-needed breathing space," he said.

"We are considering raising capital through a rights issue to repay borrowings. Once implemented, this plan will reduce liabilities and lower interest payments, providing ICB with some financial breathing room," he said.

Capital gains fell by 67%:

According to its quarterly financial statements, during the July–March period, ICB's capital gains fell by 67% as it was unable to sell shares due to a volatile capital market. Its capital gains stood at Tk67 crore at the end of March, significantly down from Tk201 crore.

Its dividend income, generated from payouts by listed companies, declined by 19% to Tk236 crore, compared to Tk294.84 crore during the same period of the previous fiscal year.

Income from fees, commissions, and service charges also declined significantly over the same period.

As its core income decreased while interest payments on deposits and borrowings increased, the company incurred an operational loss of Tk406.12 crore.

Interest payments surge by 31%:

Financial statements of the Investment Corporation of Bangladesh (ICB) show that it incurred Tk914.86 crore in interest expenses on deposits and borrowings during the first nine months of the current fiscal year.

In the same period of the previous fiscal year, the amount stood at Tk699 crore—marking a sharp increase of over 31%.

According to its financial disclosures, ICB's total deposits and borrowings reached Tk7,195 crore as of June 2025. Of this, Tk4,058 crore came from banks, Tk3,125 crore from other institutions, and the remainder from deposits collected from the general public.

Including deposits, borrowings, government loans, bonds, and other liabilities, ICB's total liabilities stood at Tk18,063 crore at the end of March.

Once a highly profitable state-owned investment bank, ICB reported a historic loss exceeding Tk1,000 crore for the first time in its history in FY25. The loss of Tk1,213.86 crore in fiscal year 2024–25 was driven by higher provisioning linked to poor investment decisions in several weak non-bank financial institutions (NBFIs), erosion of its investment portfolio amid a volatile capital market, and reliance on high-cost bank borrowings to finance market activities.

Although ICB had previously faced quarterly losses due to market volatility, such a significant annual loss is unprecedented, according to internal sources.

As a result of the substantial losses, the company did not declare any dividend for shareholders for FY2025.

Lending growth to euro zone ​businesses picked up in ‌March, European Central Bank data showed on Wednesday, ​even as the ​Iran war depressed economic ⁠sentiment and pushed ​up energy costs.

Bank credit ​to businesses rose by 3.2% last month, a slight ​acceleration from the ​3.0% in February, while loan growth ‌to ⁠households was steady at 3.0%.

The M3 measure of money circulating ​in the ​euro ⁠zone, often an indicator of ​future activity, accelerated ​to ⁠3.2% from 3.0%, above expectations for 3.1% ⁠growth ​in a Reuters ​poll of analysts.

When the IMF’s Asia-Pacific director signalled to Bangladesh’s delegation in Washington last week that the expected $1.3 billion tranche would not be released in June, the key message was not financial but what Bangladesh can credibly offer in return, and what it cannot.

The Spring Meetings’ macro position was the strongest in three years. Gross reserves are roughly $35 billion, the BPM6 measure is above $30 billion for the first time since mid-2023, and March remittances reached a record $3.75 billion. At this level, the IMF pause signals reform credibility rather than liquidity.

The four unmet conditions remain unchanged: revenue mobilisation, banking governance, removal of electricity and gas subsidies, and a market-determined exchange rate. All were agreed under the $4.7 billion programme approved in January 2023 and expanded to $5.5 billion in June 2025. All have been monitored. None has moved materially in eighteen months. The interim administration stabilised the currency and rebuilt reserves, but did not deliver structural reform.

Pakistan in 2014 is a relevant comparison. It entered a three-year IMF programme in September 2013 with reserves near $6 billion, an 8 percent fiscal deficit, and similar reform conditions. By mid-2014, reviews had stalled on comparable structural issues.

The difference was what Pakistan could offer. I worked on the privatisation of state oil and gas firms during that programme. The value was not only revenue but a pipeline of sellable state assets. When the Oil and Gas Development Company’s follow-on was delayed in November 2014 due to falling oil prices, the IMF accepted it because the broader privatisation programme remained intact. A credible monetisation pipeline strengthens negotiating position.

That lever is absent in Bangladesh. It has never issued a Eurobond. Commercial borrowing is around 11 percent of external debt, with the rest largely concessional. This worked when multilateral flows were predictable, but becomes a vulnerability as LDC graduation on November 24, 2026 (or delayed) shifts financing terms, and IMF support is uncertain.

There is also no asset pipeline. The BSEC has identified fifteen profitable state-owned enterprises and multinational subsidiaries for listing over three years, but none have progressed. Banks are under restructuring, with the ADB’s $500 million banking-sector support focused on stabilisation, not privatisation. The Sammilito Islami Bank merger, formalised in December, remains far from saleable.

The core constraint is fiscal, not external. Tax-to-GDP fell to 6.56 percent in FY25, below the programme assumption of 7.9 percent for FY24, with projections reaching 10.5 percent only by FY35. The Centre for Policy Dialogue has repeatedly highlighted this, and Fahmida Khatun has stressed rising debt-service pressure as LDC graduation approaches. Without revenue mobilisation, remittance-led stabilisation will fade, and monetary policy will carry an unsustainable burden.

A programme lapse would not cause immediate stress, given strong reserves, but the structural cost would be significant. ADB and World Bank operations are cross-conditioned on IMF continuity and would be reoriented if it fails. The policy anchor would weaken just as graduation removes concessional financing advantages.

Between now and the October Annual Meetings, a credible alternative is needed. A B2/negative Eurobond would be costly. More viable options include a remittance-backed Sukuk, a diaspora instrument, or partial listing of a profitable state entity. The Finance Ministry could task the central bank and Privatisation Commission with a monetisation pipeline before the June ECOSOC meetings.

Stabilisation without reform is a rolling arrangement. The challenge is what can credibly be placed on the table in return.

Renata PLC, one of the leading drug-makers, maintained a robust 28% year-on-year increase in consolidated profit, maintaining double-digit growth, while revenue rose 6.46% in the first nine months of the current fiscal year, driven primarily by higher sales volume.

According to its financial statements, during the July to March period, its consolidated profit surged to Tk233.9 crore with an earnings per share (EPS) of Tk20.39, and its revenue surged to Tk3,362 crore at the end March.Its data showed that Renata maintains strong earnings momentum for the third consecutive quarter of double-digit profit growth.
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In the third quarter, Renata saw 33% growth while it already delivered 26% growth in Q2 and 24.6% in Q1.

Despite fewer selling days during the quarter due to the National Election and Eid-ul-Fitr, revenue remained resilient, led by a 10.5% growth in the core domestic pharmaceutical segment, along with steady contributions from exports, Renata PLC said in a press release."Profitability improved on the back of better gross margins, efficient procurement, and tight control over expenses, including stable factory overheads and lower financing expenses through strategic capital restructuring," it said.The company further advanced its long-term growth strategy by investing in capacity expansion, automation, renewable energy, and an expanding pipeline of bio-equivalent products, reinforcing both its domestic leadership and international presence.

While emerging global risks may put pressure on input and logistics costs, Renata remains committed to efficiency and prudent cost management to sustain its growth trajectory and continue delivering value to stakeholders, the press release said.

Md Jubayer Alam, company secretary at Renata, said, "During this period, Renata has demonstrated resilient performance driven by sustained revenue growth, operational efficiency, and disciplined financial management.""Despite prevailing economic challenges, we have maintained strong momentum across our core business segments. Our continued focus on cost optimisation, product portfolio expansion, and market development has contributed to improved profitability and value creation for our stakeholders," he said.
"We remain committed to strengthening our market position, enhancing operational excellence, and pursuing sustainable growth in the coming periods," he said.

Asian stocks fluctuated Wednesday while oil prices swung as talks to end the Iran war appeared to be at a standstill and the crucial Strait of Hormuz no nearer being reopened.

While the White House has said Donald Trump and his team were considering Tehran's latest proposal to restore traffic through the waterway, CNN and the Wall Street Journal said the president was sceptical.

The Islamic Republic this week submitted a plan that would reportedly see it ease the chokehold and Washington lift its retaliatory blockade on the country's ports as talks continued, including over its nuclear programme.

While US Secretary of State Marco Rubio said Iran's proposal was "better than what we thought they were going to submit", he insisted any eventual deal had to be "one that definitively prevents them from sprinting towards a nuclear weapon".

Iranian defence ministry spokesman Reza Talaei-Nik said Washington "must abandon its illegal and irrational demands", adding the United States was "no longer in a position to dictate its policy to independent nations".

Qatar warned of the possibility of a "frozen conflict" if a definitive resolution is not found.

Concerns about the stalled peace push have pushed crude prices higher for more than a week, with Trump's decision to cancel his envoys' trip for peace talks in Pakistan last weekend adding to the downbeat mood.

Brent is above the level it hit before the two sides announced a ceasefire at the start of April, sitting around $112, while West Texas Intermediate broke $100 Tuesday for the first time in two weeks.

Both contracts were slightly higher Wednesday.

"Iran wants the blockade lifted and access to its flows restored," wrote Stephen Innes at SPI Asset Management.

"Washington holds that lever and is in no hurry to give it away without extracting value.

"Meanwhile, the longer this drags on, the more second-order effects start to bite. Storage pressure builds, production risks emerge, and the system begins to strain in ways that futures prices cannot ignore."

There was little major reaction to news that key producer United Arab Emirates had decided to withdraw from the OPEC and OPEC+ oil cartels on Friday, calling it a strategic decision.

Still, CNN also cited sources familiar with the mediation as saying the two sides were not as far apart as they seemed.

It added that intense diplomacy continued and talks were focused on a staged process with the first part of a potential deal aimed at returning to the pre-war status and reopening the Strait.

Iran's nuclear programme would be dealt with down the line, it said.

Equity markets were mixed, with Hong Kong, Shanghai, Jakarta and Manila up while Sydney, Singapore, Seoul and Taipei fell.

Traders were given a weak lead from Wall Street, where the Nasdaq-led losses owing to a tech selloff that came on the back of a report in the Wall Street Journal that ChatGPT-maker OpenAI had missed targets on the number of users and revenue.

The news came as markets gear up for the release of earnings from Wall Street titans Amazon, Google, Meta and Microsoft this week.

The Federal Reserve will also conclude a two-day meeting later in the day, with investors keeping tabs on its outlook for inflation and interest rates as energy costs soar.

A proposal seeking an additional three-year transition period for Bangladesh's graduation from the category of Least-Developed Countries (LDCs), following a letter from Prime Minister Tarique Rahman, has been forwarded to the UN Committee for Development Policy (CDP) for consideration.

A letter sent to the government by Rabab Fatima, UN Under-Secretary-General and High Representative of the United Nations Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States (UN-OHRLLS), revealed the development.

Fatima said she remained fully committed to working closely with the government, the UN Country Team, and development partners to ensure a smooth and sustainable graduation process for Bangladesh, according to the letter.

She conveyed the assurance in a communication sent last week to Amir Khosru Mahmud Chowdhury, minister of finance and planning.

Copies of the letter were also sent to Khalilur Rahman, minister of foreign affairs, Khandakar Abdul Muktadir, minister of commerce, Zonayed Abdur Rahim Saki, state minister for planning, and other relevant government offices, according to sources.

"I also wish to inform you that the United Nations Secretary-General has received the letter from the Honourable Prime Minister of Bangladesh requesting a three-year extension of the preparatory period under the crisis response process of the enhanced monitoring mechanism," the letter stated.

"In line with his guidance, I am undertaking the necessary follow-up with the Committee for Development Policy," Rabab Fatima added.

She further apprised the Secretary-General of the key findings of the Graduation Readiness Assessment, as well as the outcomes of consultations held in Dhaka, the letter added. GeographicReference

Expressing appreciation, Rabab Fatima acknowledged the valuable support provided by the Ministry of Foreign Affairs and the United Nations Country Team in Bangladesh in the preparation and successful conduct of the meeting.

Earlier on April 5, Prime Minister Tarique Rahman wrote a letter to UN Secretary-General António Guterres seeking to defer Bangladesh's graduation by at least three years to ensure a sustainable transition amid internal and external shocks.

The request comes as Bangladesh grapples with a "preparatory period" that officials say was effectively derailed by a "polycrisis" of global and domestic shocks.

Tarique noted that while Bangladesh met the three eligibility criteria - per capita income, Human Assets Index and Economic Vulnerability Index - the five-year preparatory window was largely consumed by crisis management.

The letter to the finance minister was sent from the UN headquarters on April 14, while it was transmitted from the Dhaka office on April 22.

Following the Prime Minister's request, the proposal had already been forwarded to the UN Committee for Development Policy (CDP), said officials from the Economic Relations Division (ERD) of the government. Bangladeshmarket analysis

A high-level meeting between the UN-CDP and the Government of Bangladesh was held on Wednesday to further expedite the initiatives under the proposal, sources said.

Khandakar Abdul Muktadir, minister of commerce, Dr Rashed Al Mahmud Titumir, finance and planning adviser to the prime minister, Zonayed Abdur Rahim Saki, state minister for planning, and other relevant officials joined the virtual meeting from the NEC Auditorium in Dhaka.

Delegates from Bangladesh presented the latest status of key LDC graduation indicators, along with justifications for deferring graduation, to the CDP, according to sources.

Walton Hi-Tech Industries PLC reported a notable decline in both revenue and profit in the January–March quarter of FY26, reflecting mounting cost pressures and intense market competition.

According to the company's latest financial disclosure, revenue dropped by 13% year-on-year to Tk1,786 crore in the third quarter, while net profit plunged by 29% to Tk279.60 crore.

Earnings per share (EPS) also fell to Tk8.39 from Tk11.76 in the same period a year earlier, indicating a significant contraction in profitability.

The downturn extended to the nine-month period from July to March of FY26, during which Walton's revenue edged down to Tk4,548 crore.

Net profit for the period declined by 8% to Tk642.94 crore, compared to the corresponding period of the previous fiscal year. EPS stood at Tk19.29, down from Tk20.90 a year earlier.

The company attributed the weaker financial performance primarily to a sharp increase in output value-added tax (VAT) on key products. The VAT rate doubled from 7.5% to 15%, significantly raising costs. However, due to stiff competition in the consumer electronics market, Walton was unable to pass on the additional tax burden to customers through higher prices.

To remain competitive and protect its market share, the company increased rebate offerings, which further squeezed profit margins. This combination of rising tax expenses and pricing constraints weighed heavily on the company's bottom line during the period, the company added.

Despite the decline, Walton remains one of the country's leading electronics manufacturers. Industry analysts say its long-term performance will depend on how effectively it manages tax pressures and competes in the domestic market.

Walton share price fell by 1.19% on Wednesday to close at Tk364.30 at the Dhaka Stock Exchange.

Square Pharmaceuticals PLC reported a slight decline in profit in the January–March quarter of FY26, despite posting steady revenue growth during the period.

According to the company's latest financial disclosure, consolidated revenue rose 8% year-on-year to Tk2,170.37 crore in the third quarter. However, consolidated net profit slipped 1.40% to Tk596.64 crore, indicating mild pressure on earnings. Consequently, earnings per share (EPS) stood at Tk6.73, down from Tk6.83 in the same quarter of the previous year.

Despite the modest quarterly dip, the company delivered strong performance over the nine-month period from July to March of FY2026. Consolidated revenue increased 13% to Tk6,508 crore, while net profit grew 10% to Tk2,064 crore. EPS for the period rose to Tk23.29, compared to Tk21.15 in the corresponding period of the previous fiscal year.

The unaudited financial statements for the third quarter were approved at a board meeting held today (29 April).

The marginal decline in quarterly profit, despite higher revenue, points to possible increases in operational costs or margin pressures, though the company did not provide detailed explanations. Nevertheless, the overall nine-month results highlight resilience in earnings growth, supported by sustained demand and operational efficiency.

Prime Minister Tarique Rahman has said that 25 priority initiatives have been undertaken to expand local business, create employment, and ensure a better environment for investors.

He made the remarks in response to a written question from Cox's Bazar-9 MP Md Abul Kalam in parliament today (29 April).

The MP had asked about the joint action plans of the government's four investment development agencies to improve the country's investment climate and accelerate job creation.

In reply, the prime minister said the Bangladesh Investment Development Authority (Bida), Bangladesh Economic Zones Authority (BEZA), Public Private Partnership (PPP) Authority, and Maheshkhali Integrated Development Authority (Mida) have jointly prepared a 180-day plan.

He said, "This 180-day plan aims to strengthen the foundation for investment growth through short-term administrative, institutional, and infrastructural measures to promote a business-friendly environment."

He added, "At the same time, it is expected to contribute to job creation, industrialisation, simplification of government services, improvement of logistics efficiency, and long-term economic growth acceleration."

According to prime minister, the plan includes 25 priority initiatives under three pillars—50% focused on improved infrastructure, 30% on investment facilitation, and 20% on investment development-related initiatives.

Businesses yesterday called for structural reforms in the tax system to reduce the cost of doing business, ease compliance burdens, and improve investment competitiveness.

In this regard, the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) placed a set of proposals for the upcoming national budget before the National Board of Revenue (NBR) at a pre-budget discussion held in Dhaka.

FBCCI Administrator Md Abdur Rahim Khan presented the major proposals at the discussion.

The apex trade body called for reducing the minimum tax from 1 percent to 0.25 percent on annual gross turnover, with a long-term plan to phase it out. It said the current rate forces firms to pay tax even in loss-making periods amid high inflation, elevated interest rates, dollar shortages, and rising input costs.

The FBCCI also proposed zero minimum tax for businesses operating at a loss with zero or negative taxable income based on audited accounts, newly established firms for the first three years, and businesses affected by natural disasters, epidemics, or government-declared economic crises.

The trade body termed the turnover-based minimum tax system unfair, saying it undermines equity in taxation, and urged a more realistic framework reflecting actual business performance.

It also demanded raising the personal tax-free income threshold to Tk 500,000 and reducing corporate tax rates to ease pressure on individuals and firms.

The FBCCI called for a gradual reduction of advance income tax (AIT) at the import stage, saying it raises upfront costs and strains liquidity for import-dependent industries.

It also proposed rationalising withholding tax rates and lowering them on machinery and raw materials to support industrial expansion.

On indirect taxation, it suggested a uniform 2 percent VAT on all locally traded goods to simplify compliance and reduce disputes.

In the customs regime, the FBCCI proposed capping import duty at 1 percent on industrial machinery, spare parts, raw materials, and inputs not produced locally, and 3 percent for locally produced items.

Institutionally, it recommended establishing separate Large Taxpayer Units (LTU) and Medium Taxpayer Units (MTU) in Dhaka and Chattogram to improve tax administration.

Speaking as the chief guest, Finance Minister Amir Khosru Mahmud Chowdhury said the government is committed to ensuring a business-friendly environment and removing barriers to doing business.

Business concerns would be reflected in the upcoming budget, he assured.

Commerce Minister Khandaker Abdul Muktadir said the economy needs revitalisation through new investment and sustaining existing industries, while pointing to challenges in banking and logistics and urging specific private sector proposals.

NBR Chairman Md Abdur Rahman Khan, former FBCCI president Mir Nasir Hossain, and International Chamber of Commerce, Bangladesh (ICCB) President Mahbubur Rahman also spoke at the event.

Gold is seen as a safe haven asset in times of volatility but investment volumes fell in the first quarter, industry data showed Wednesday, as the Middle East war forced some investors to liquidate holdings to raise cash.

Investment volumes fell by five percent during the quarter, according to the World Gold Council, despite gold having set a record high in January as investors sought refuge from a weak dollar and US President Donald Trump’s erratic policy shifts.

“Hefty outflows in March reversed much of the sizable January and February inflows” into gold exchange-traded funds (ETFs), an easy means to invest in the precious metal, the council said in its quarterly report.

And that was linked in particular to North American funds.

“Oftentimes because gold is so widely accepted, it is the first thing that you sell when you need a certain access to cash or to liquidity,” said World Gold Council expert Juan Carlos Artigas.

Following the US-Israeli attacks on Iran at the end of February, Tehran closed traffic through the Strait of Hormuz, through which a fifth of the world’s oil and liquefied natural gas normally flows.

That sent oil and gas prices rocketing higher and disrupting markets, forcing many investors to raise cash to settle their positions.

The prospect of the US Federal Reserve raising interest rates in response to higher inflation boosted the dollar, making gold more expensive for investors who don’t hold dollars.

If demand for gold dropped by volume, the value of purchases jumped by 62 percent.

Gold touched a new record just shy of $5,600 per ounce at the end of January, and averaged $4,873 per ounce over the quarter.

High prices, driven largely by investment holdings, hit demand for jewellery, however.

The jewellery market was also disrupted by the war, with the Middle East a key shipping hub.

Olympic Industries, the country's leading branded biscuit manufacturer, is set to invest Tk26.22 crore to purchase 489.89 decimals of land adjacent to its existing factory for future expansion.

The decision was approved at a board meeting held on Tuesday via Zoom, according to a disclosure published on Wednesday (29 April) through the stock exchanges.

Over the years, the company has invested hundreds of crores to acquire lands adjacent to its factory in preparation for scaling up operations.

At the meeting, the board also approved the company's financial statements for the first nine months ending in March. Its statements showed that revenue in the third quarter (Jan-Mar) rose by 8.61%, while nine-month revenue grew by 5.30%.

However, net profit declined by 33.75% in the third quarter and by 6.97% over the nine-month period, which the company attributed to a higher tax burden.

During the July to March period, revenue stood at Tk2,256 crore, while net profit fell to Tk148.18 crore, according to the report.

Olympic Industries said its board has approved the purchase of 322 decimals of land adjacent to its Lolati factory at a total price of Tk17.71 crore to support future expansion.

At the same mouza in Madanpur of Narayanganj, the company also decided to acquire 84.90 decimals of land for Tk4.67 crore for expansion purposes.

In addition, it approved the purchase of two more plots – 64.99 decimals and 18 decimals – near the Lolati factory at agreed prices of Tk3.25 crore and Tk59.40 lakh, respectively, to facilitate further construction and expansion.

In the disclosure, the company said the purchaser, Olympic Industries, will bear all registration costs, including VAT, tax, and other charges.

National flag carrier Biman Bangladesh Airlines is set to sign a landmark aircraft purchase agreement with Boeing today, in what is expected to be the biggest fleet expansion move in the airline’s history.

The formal agreement signing ceremony will be held at 7:30 pm at a Dhaka hotel, Biman General Manager (Public Relations) Boshra Islam told The Daily Star.

Senior government officials, diplomats and aviation executives are expected to attend the programme.

Biman Managing Director and CEO Kaizer Sohel Ahmed will sign the agreement on behalf of the airline, while a Boeing representative will sign for the manufacturer.

Foreign Minister Khalilur Rahman, Civil Aviation and Tourism Minister Afroza Khanam Rita, State Minister M Rashiduzzaman Millat and US Ambassador Brent T. Christensen, among others, will attend the ceremony, Boshra said.

Under the proposed agreement, Biman will purchase 14 new aircraft, including eight Boeing 787-10 Dreamliners, two Boeing 787-9 Dreamliners, and four Boeing 737-8 MAX jets, with an estimated list value of around $3.7 billion (Tk 37,000 crore).

Officials said the order is designed to modernise Biman’s fleet, expand long-haul capacity and strengthen regional operations at a time when Bangladesh’s passenger demand continues to rise.

The wide-body Dreamliners are expected to reinforce services to Europe, the Middle East and Asia, while the 737 MAX aircraft would support regional and short-haul routes.

The expected signing comes as Hazrat Shahjalal International Airport’s third terminal nears launch, a development widely seen as central to Bangladesh’s ambition of becoming a stronger regional aviation hub.

The deal is also expected to conclude more than three years of intense competition between Boeing and its European rival Airbus for Biman’s next major fleet order.

Under the previous Awami League government, a policy decision was announced to buy 10 Airbus aircraft. After the fall of Sheikh Hasina’s government in the 2024 mass uprising and amid pressure related to US reciprocal tariffs, the interim government shifted in favour of Boeing.

Airbus officials earlier told The Daily Star that introducing Airbus aircraft would diversify Biman’s all-Boeing fleet and deepen economic ties with the European Union.

Boeing, however, mounted an intensive push to retain its long-standing dominance, offering Dreamliners, freighter options and narrow-body aircraft while maintaining sustained engagement with policymakers in Dhaka.

“The aircraft buying proposal that we are making may be valued between Tk 30,000 crore and Tk 35,000 crore. We will have to pay this amount over 10 years. In fact, it may take even longer than that, because the payment schedule is long-term. It may take as long as 20 years to complete the payment. So, if you consider this, we may have to pay around Tk 1,500 crore to Tk 2,000 crore per year,” a top Biman official said.

State Minister Rashiduzzaman Millat said last week that the government was working to sign a deal with Boeing by April 30 to purchase 14 aircraft and lease several others as part of efforts to turn Biman Bangladesh Airlines into a profitable entity.

The national flag carrier is currently operating international routes with around 19 aircraft -- well below the estimated requirement of 30 to 35 aircraft needed to meet growing passenger demand and support planned network expansion, according to sources.

Biman’s fleet is currently dominated by Boeing aircraft, and the airline plans to expand its fleet to 47 by 2041.

The first aircraft from Boeing is scheduled for delivery in October 2031, according to Biman sources, while the remaining aircraft are expected to be delivered by November 2035.

The government will provide a sovereign guarantee to Biman Bangladesh Airlines to buy 14 aircraft from Boeing.

A sovereign guarantee is a commitment by the state to cover the debt or financial obligations of another entity if it defaults, reducing risk for lenders and improving access to financing for large or strategic investments.

The interim government earlier pledged to buy 25 aircraft from Boeing as part of efforts to reduce the trade deficit with the United States. Following further evaluation, Biman finalised its decision.