After the onset of the US-Israel war on Iran, some policymakers initially took a firm stance, publicly claiming credit for not adjusting fuel prices to shield consumers from global shocks. They argued that they did not want to pass the burden onto the people.

However, the government could not maintain its stance as it quickly unravelled under fiscal and market realities.

Within weeks, the government reversed course. It raised the price of a 12 kg liquefied petroleum gas (LPG) cylinder by 45 percent after two successive hikes in April.

On April 18, it also pushed fuel prices to record highs: diesel rose by Tk 15 per litre to Tk 115, octane by Tk 20 to Tk 140, petrol by Tk 19 to Tk 135, and kerosene by Tk 18 to Tk 130.

The scale and timing of these adjustments suggest that fiscal constraints, subsidy pressures, and external account vulnerabilities outweighed earlier political commitments.

From a macroeconomic perspective, such hikes drive costs and thus prices of commodities in the supply chain, as higher energy costs spread through transport, production, and supply chains, often creating second-round effects in import-dependent economies like Bangladesh.

A recent report on inflation dynamics of Bangladesh by the central bank showed gas price hikes have pushed up energy inflation to 14.9 percent during the January-March quarter of the current fiscal year 2025-26 from 14.4 percent in the previous quarter.

Economists say the effect of hiking petroleum prices is going to be felt soon, and consumers have already begun to feel the pinch. Transport costs for both passengers and freight have gone up. Farmers complained about the higher cost of harvesting rice and threshing the grains. Consumer goods companies are reducing pack sizes and squeezing margins to cope.

Yet, two ministers -- finance and commerce -- downplayed the inflationary risks.

According to a report published in this newspaper on April 20, Finance Minister Amir Khosru Mahmud Chowdhury said, “It may increase or it may not. If the supply side remains stable, then prices may not rise.”

In reply to a question in the parliament, Commerce Minister Khandakar Abdul Muktadir said it was unlikely that the recent fuel price hike would exacerbate inflation, terming the adjustment “moderate.”

He said the 15 percent increase in diesel prices may raise commodity prices by around Tk 0.30 per kg. However, he said this would not have any major impact on overall inflation, which has remained around 9 percent for more than three years, deepening consumers’ woes.

The wage rate index for unskilled workers illustrates this trend. Inflation has outpaced wage growth for 50 consecutive months, steadily eroding the purchasing power of consumers, particularly those in middle- and lower-income groups. It means that real wages have been in the negative for more than four years.

Consumers are set to face further pressure as the commerce ministry has allowed refiners to raise soybean oil prices by Tk 4 per litre, or 2 percent.

The situation worsened by earlier supply disruptions triggered by the Iran War, which had already pushed up global energy and transport costs. Diesel-dependent sectors such as agriculture, manufacturing, and transport are now under additional pressure, raising concerns that the increased costs will eventually be passed on to consumers in an already high-inflation economy.

Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue (CPD), said the recent fuel price hike is likely to ripple across the economy through a “multiplier effect.”

He noted that fuel acts as a “barometer of commodity prices,” meaning its increase will inevitably influence a wide range of goods, though not uniformly.

He explained that the current situation reflects “cost-push inflation,” driven by rising input costs rather than demand.

However, he cautioned against overstating the scale of the impact, emphasising that the extent of price increases will depend on how significant fuel costs are within each product’s overall cost structure.

“If fuel accounts for a portion of total costs, a 15 percent increase in fuel prices does not translate into a 15 percent rise in final prices,” he said, illustrating that the actual effect would be proportionally smaller.

Rahman stressed that while some level of price increase is unavoidable, the degree to which it affects consumers will depend heavily on market behaviour and oversight.

“The pass-through to retail prices depends significantly on market management,” he said, warning that unchecked responses, such as transport operators raising fares disproportionately, could worsen inflationary pressures.

He also underscored the growing importance of regulatory monitoring, particularly in sectors with administered pricing, and highlighted the need for stronger safeguards for vulnerable groups.

“For low-income people, even a small increase in prices creates significant hardship,” he said, adding that effective implementation of social safety measures will be critical to easing the burden.

Mohammad Abdur Razzaque, chairman of the Research and Policy Integration for Development, echoed similar concerns, warning that higher energy prices would inevitably feed into overall price levels.

“If energy and oil prices increase, our price levels will increase. This is almost inevitable,” he said. “There is a ‘one-to-one’ correspondence, as the transmission channel is very deep.”

He explained that a fuel price increase typically triggers broader inflationary pressures across the economy.

“When oil prices increase, we’ve seen a 15-20 percent increase across different varieties. It exerts pressure on other supply chain elements, which overall impacts our prices. They might be saying it for political reasons, but the economic reality is that this will fuel inflationary pressure further,” he added.

Razzaque also noted that the impact is more severe in Bangladesh compared to other countries due to already elevated inflation.

“It’s not just happening in Bangladesh; many countries have already increased their fuel prices. The problem for Bangladesh is that our baseline inflation rate was already high, hovering around 9 to 10 percent. When this impact is added, it creates even more pressure. In countries like Cambodia, where inflation was lower, it was easier to absorb. But for us, it’s almost inevitable that prices will go up,” he said.

He also raised concerns over inflation measurement, especially LPG pricing. He said the Bangladesh Bureau of Statistics (BBS) relies on government-set rates, which may not reflect market reality.

Razzaque added that official figures could be misleading if based on listed prices rather than what consumers actually pay, urging surveys of real market prices for more accurate inflation data.

Bangladesh Bank's planned Tk40,000 crore refinance scheme to revive closed factories has raised concerns among economists and officials over its potential macroeconomic impact.

The initiative aims to boost production and protect jobs, but questions remain over how it will be financed.

Analysts say the source of funds will be critical in determining whether the scheme adds pressure on prices.

Concerns over inflation

Economists and central bank officials have cautioned that financing the scheme through fresh money creation could increase inflationary pressure by expanding the money supply.

Fahmida Khatun, executive director of the Centre for Policy Dialogue, said the issue is particularly important at a time when many banks are facing liquidity shortages and government revenue growth remains under strain.

"At present, many banks are facing liquidity shortages, and government revenue growth is also under pressure. If the central bank directly finances the scheme, it could add to inflationary pressure by increasing the money supply," she said.

She suggested that the fund could be mobilised through a combination of sources, including banks with stronger liquidity positions and allocations from the national budget, to help reduce inflation risks.

A senior Bangladesh Bank official also warned that injecting the full amount through the central bank could have a multiplied impact on overall liquidity due to the money multiplier effect.

"If the full Tk40,000 crore is injected by the central bank, the overall impact on the economy could be several times higher, putting additional pressure on prices," the official said.

The official added that such a move could complicate the central bank's efforts to control inflation, potentially creating a policy trade-off between maintaining price stability and supporting employment and industrial recovery.

Paramount Textile, a listed company on the bourses, reported a year-on-year revenue decline of more than 15% in the first nine months of the current fiscal year, according to its consolidated quarterly financial statements.

Despite a nosedive in revenue, the company posted a slight increase in profit to Tk96.81 crore, compared with Tk96.41 crore in the same period last fiscal year. However, earnings per share (EPS) slightly dipped to Tk5.14 from Tk5.22.

The company said its operating profit fell 14% amid the revenue contraction. Still, higher income from other sources and gains from associate companies helped offset the decline, enabling Paramount Textile to register a modest profit growth during the July–March period.

Its report showed that its profit from associates companies surged 250% to Tk36 crore while its other income jumped by 631% to Tk10.81 crore.

It has investment in associates' companies—Paramount BTrac Energy Ltd, a 200 MW HSD power plant and Dynamic sun energy Pvt Ltd, a joint venture company between Paramount Textile Ltd and Global energy project holdings (GEPH).

According to its financial report, in the third quarter during the January to March, its revenue fell by 30% to Tk245.71 crore, a lower from Tk354.01 crore in the same time of the previous fiscal year.

Despite 25% declining in its operating profit, net profit surged 6% to Tk52.65 crore mainly due to increase in share of profit of associates companies.

In the three months, it earned Tk15.79 crore from its associates.

In FY25, Parmount Textile made a profit of Tk116.06 crore with an EPS of TK6.48. It had paid a 12% cash dividend for its shareholders.

Paramount Textile's shares closed at Tk61.60 each today (4 May) at the Dhaka Stock Exchange (DSE), a 2.38% down from the previous trading session.

Bangladesh’s total public debt burden has crossed Tk 22 lakh crore by December 2025 with a growing reliance on domestic sources as the government looks to “insulate the economy from foreign currency risks”.

Of the total debt, Tk 3 lakh crore was borrowed during the interim government period, according to the finance ministry’s latest quarterly bulletin.

The bulletin states the public debt stood at Tk 18.9 lakh crore at the end of June 2024, just a month before the interim administration assumed power. The figure was Tk 13.44 lakh crore at the end of June 2022.

During the interim period, domestic debt rose by Tk 1.70 lakh crore, reaching Tk 12.5 lakh crore by December. Foreign loans increased by Tk 1.47 lakh crore to Tk 9.59 lakh crore in the same period.

Domestic borrowing dominates the government’s overall debt portfolio. As of December 31, 2025, the domestic and external liabilities constituted 57 percent and 43 percent of the total government debt stock, respectively.

“By focusing on the local market, the government is deepening domestic liquidity while reducing its exposure to exchange rate fluctuations,” said the bulletin.

During the July-December period of the current fiscal year, the government’s total borrowing rose by Tk 62,428 crore, or 13 percent, compared to the same period a year earlier.

During the period, loans from the foreign sector dropped by 59 percent to Tk 10,130 crore, while domestic borrowing surged 70 percent to Tk 52,298 crore.

Of the domestic borrowing, Tk 19,470 crore was borrowed from the central bank alone.

Most of the domestic loans were raised through government securities. “A key feature of the government’s approach was a clear shift toward long-term debt,” the finance ministry said.

Meanwhile, total interest payment during the July-December period rose by 22 percent to Tk 71,253 crore. Of these, interest payment for domestic borrowing stood at Tk 61,866 crore, a 25 percent surge from the same period a year ago.

While increased domestic borrowing often raises concerns about “crowding out,” the current landscape suggests a unique window of opportunity, said the ministry.

It argued that ample liquidity in stronger banks, falling yields on government securities, and subdued private-sector credit demand create conditions for sustainable domestic financing without crowding out private borrowers.

By leveraging this internal liquidity, the state is building a more resilient and self-reliant fiscal framework that maintains stability without straining the private credit market, it added.

The country's premier bourse returned to positive territory today as a wave of bargain hunting helped the benchmark index snap a two-session losing streak, although overall market capitalisation fell by Tk5,000 crore.

Despite lingering concerns over global geopolitical dynamics and domestic economic factors, opportunistic investors moved in to accumulate beaten-down scrips, particularly in the banking and manufacturing sectors.

The benchmark DSEX index of the Dhaka Stock Exchange rose by 12 points to settle at 5,277, while the blue-chip DS30 index followed suit, gaining 4 points to close at 2,023.

Market participation showed signs of improvement as total turnover at the DSE climbed by 6% to reach Tk877 crore compared to the previous session.

According to the daily market review by EBL Securities, the capital bourse staged a modest rebound supported by resilient investor participation. The market opened on a firm note with steady accumulation through the mid-session.

However, the upward momentum was somewhat tempered toward the end of the day as cautious selling from some quarters trimmed intraday gains.

Interestingly, while the key indices rose, the overall market capitalisation at the DSE dropped by Tk5,000 crore to settle at Tk6.81 lakh crore, a phenomenon largely attributed to the price adjustment of high-cap stocks.

On the sectoral front, the banking sector dominated market activity, accounting for 19.1% of the total turnover. This was followed by the engineering and pharmaceutical sectors, which contributed 12.5% and 12.4% to the day's volume, respectively.

In terms of returns, the ceramic sector led the gainers with a 3.1% increase, followed by jute at 2.9% and information technology at 1.5%. On the downside, the general insurance, mutual fund, and food sectors faced corrections, with general insurance declining by 1.0%.

The market breadth remained slightly in favour of the bulls, as 174 issues advanced compared to 159 that declined, while 63 remained unchanged.

Individual stock performance was highlighted by JMI Syringe and JMI Hospital, both of which surged by nearly 10% to lead the gainers' list.

On the other hand, City Bank emerged as the top loser of the day, shedding 13.33% of its value.

However, market analysts noted that this sharp decline was due to the technical adjustment of its share price following the record date for its 15% stock dividend declaration for the year 2025.

The positive sentiment was partially mirrored at the Chittagong Stock Exchange (CSE), where the CSCX index ended 6 points higher at 9,093. However, the CASPI edged down by 4 points to settle at 14,783.

Trading activity at the port city bourse saw a significant contraction, with turnover plunging by 59% to stand at a modest Tk16.77 crore.

Oil prices edged higher on Monday, supported by the absence of a US-Iran peace deal that kept supplies constrained and prices above $100 a barrel.

Brent crude futures were up 67 cents, or 0.6%, to $108.84 a barrel at 0400 GMT after settling down $2.23 on Friday. US West Texas Intermediate was up 65 cents, also 0.6%, at $102.59 a barrel, after a $3.13 loss on Friday.

"The broader market remains tightly supported by persistent supply disruptions and geopolitical uncertainty," said Priyanka Sachdeva, analyst at Phillip Nova.

"Unless there is a clear and sustained resolution that restores normal flows through the Strait of Hormuz, oil prices are likely to remain elevated, with risks still tilted toward further upside."

President Donald Trump said the US would begin efforts to assist ships stranded in the Strait of Hormuz, but prices stayed above $100 a barrel, with no peace deal in sight and shipping through the strategic waterway still constrained.

Negotiations between the US and Iran continued over the weekend, with both sides assessing each other's responses.

Trump has made securing a nuclear deal with Tehran a priority, but Iran wants to defer nuclear talks until after the war and first lift rival blockades on Gulf shipping.

On Sunday, the Organization of the Petroleum Exporting Countries and their allies, known as OPEC+, said it would raise oil output targets by 188,000 barrels per day in June for seven members, marking the third consecutive monthly increase.

The rise matches that agreed for May, minus the share of the United Arab Emirates, which left OPEC on May 1. However, the additional barrels are expected to remain largely on paper as long as the Iran war continues to disrupt Gulf oil supplies through the Strait of Hormuz.

Mobile operators have called on the National Board of Revenue (NBR) to withdraw value-added tax (VAT) on spectrum and spectrum-related fees, arguing the levy contradicts global norms and undermines investment in the sector.

In a recent letter sent to the NBR chairman, the Association of Mobile Telecom Operators of Bangladesh (AMTOB) described the proposed withdrawal as a vital step to rectify a fundamental misalignment in Bangladesh’s VAT regime.

The association said radio spectrum, the finite range of frequencies over which all wireless communication travels, is an intangible national resource administered by the Bangladesh Telecommunication Regulatory Commission (BTRC).

“Its [radio spectrum] assignment, renewal, and usage confer a sovereign regulatory right -- not a commercial supply of goods or services under any legal interpretation,” wrote Mohammad Zulfikar, the association’s secretary general.

Hence, imposing VAT on spectrum and spectrum fees, AMTOB argued, effectively turns a regulatory charge into a taxable transaction.

“Imposing VAT here transforms a non-commercial regulatory grant into an artificial taxable event,” it added.

According to the letter, telecom companies are required to pay VAT on spectrum fees without being able to claim input tax credits, increasing operational costs.

It said the BTRC’s lack of VAT registration prevents it from issuing standard invoices. “This renders the VAT non-creditable and traps it as a pure cost to the operators.”

AMTOB warned that the arrangement stifles network investment, 5G rollout, and rural coverage expansion.

It cited frameworks in the European Union, India, the United Kingdom, and Australia, where spectrum charges are treated as sovereign regulatory fees outside the VAT net.

“Bangladesh’s current approach deviates from this consensus, creating indefensible inefficiencies,” the letter said.

The association noted that the sector already carries a heavy tax burden -- corporate income tax, BTRC revenue sharing, spectrum and licence fees, and VAT on services.

“In 2024, we contributed approximately Tk 22,000 crore,” the letter noted, warning that additional non-creditable taxes could affect affordability and innovation in the sector.

In the letter, AMTOB placed two demands before the tax authority: the immediate withdrawal of VAT on spectrum-related payments, and formal clarification categorising these charges as sovereign regulatory fees outside the VAT net.

Shahed Alam, chief corporate and regulatory officer at Robi Axiata, said, “Treating spectrum fees as VAT-exempt regulatory charges, in alignment with global best practices, would restore tax neutrality, reduce financial pressure, and improve cost efficiency.”

A delegation of US trade representatives, led by Assistant US Trade Representative for South and Central Asia Brendan Lynch, will travel to Dhaka from May 5-7 to discuss ways to strengthen bilateral relations on trade and investment.

The United States looks forward to partnering on the implementation of the US-Bangladesh Agreement on Reciprocal Trade, which aims to enhance economic growth in both countries by improving market access, removing barriers to investment, and boosting commercial opportunities, according to a statement from the US embassy in Dhaka today.

The country’s remittance inflow has reached $315 million in the first three days of May, reflecting sustained strong inflows from expatriate Bangladeshis, according to data released by the Bangladesh Bank (BB) on Monday.
FE

During this period, remittance receipts reached $315 million, marking a 260.1 percent increase year-on-year compared to $88 million in the same period last year.

On a cumulative basis, expatriate Bangladeshis sent $29,648 million in remittances from July to May 3, of the current fiscal year, significantly higher than $24,625 million recorded in the corresponding period of the previous fiscal year.

The continued rise in remittance inflow is playing a vital role in supporting external sector stability, strengthening foreign exchange reserves, and contributing to overall macroeconomic resilience.

Farmer Suman Tarfadar cultivated boro paddy on nearly 10 acres of land this year in the haor region. Continuous rainfall submerged and destroyed paddy on around seven acres of his land.

Of the crop he managed to harvest, half could not be dried due to a lack of sunshine and has already started sprouting. Altogether, he now expects to boil and store paddy from only one to one-and-a-half acres.

The farmer from Kadirpur Haor in Khaliajuri Upazila told TBS that despite farming on his own land, he spent nearly Tk3 lakh this season. Most of the crop went under water, while much of the harvested grain has sprouted. "No one will buy this paddy. Only a small amount can be saved. I have never suffered such losses before," he said.

He added that no one wants to buy wet paddy. Some grain from the field was sold for Tk500-Tk600 per maund. Those who managed to harvest and dry before the rain were getting slightly better prices. In previous years, raw paddy from the field sold for Tk800-Tk900 per maund.

This is not just Suman Tarfadar's story, but the reality for farmers across the haor belt. Heavy rain that began in the last week of April submerged paddy on more than 47,000 hectares across seven haor districts — Sunamganj, Sylhet, Habiganj, Moulvibazar, Netrokona, Kishoreganj and Brahmanbaria.

In the four districts of Sylhet division alone, nearly 34,000 hectares have gone under water.

According to the Department of Agricultural Extension, around 25% of paddy still remains in the fields. Farmers and locals, however, say the actual losses are much higher.

Most of Bangladesh's rice is produced during the boro season, with around 10% coming from haor areas. Sources at the agricultural extension department said boro paddy was cultivated on 9,63,000 hectares in the seven haor districts this year. Of that, 4,55,000 hectares were in haor areas and 5,08,000 hectares in non-haor areas.

Farmer Babulal Das from Kalnigar said he cultivated boro on 10 bighas of land. Harvesting is nearly complete, but drying the grain is impossible. "The yard and roads are wet from rain, and the fields are under water. I have nowhere to dry the paddy. It is now sprouting and will be useless," he said.

Farmer Mahbub Alam from Naluar Haor said he harvested paddy standing in water during rainfall, but without sunshine it cannot be dried. "The paddy is rotting, the straw is being ruined. We are in great distress," he said.

Woman farmer Sabana Begum from Shanir Haor said boiled paddy from 36 decimals of land could not be dried because of nonstop rain. "The paddy is rotting and giving off a smell. I cry when I look at it," she said.

Sources at the Department of Agricultural Extension said 57% of boro harvesting has been completed in Sylhet division this season. This includes 75% in haor areas and 33% in non-haor areas.

Additional director of the department in Sylhet division, Dr Md Mosharraf Hossain, said the remaining 25% of submerged paddy in haor areas could be completely lost. More grain is also likely to be damaged because it cannot be dried.

"There is no artificial arrangement to dry so much paddy at once. We have to depend on nature," he said. He added that the government began rice and paddy procurement from Sunday, which could reduce farmers' losses somewhat. Losses could fall further if mill owners began buying paddy, but they have not yet started purchases.

Meanwhile, the Flood Forecasting and Warning Centre under the Bangladesh Water Development Board said water in several rivers of the north-eastern haor basin is already flowing above pre-monsoon danger levels.

These include points on the Naljur River, Baulai River, Bhugai-Kangsha River, Someshwari River, Mogra River, Kalni-Kushiyara River and Sutang River.

Over the past 24 hours, moderate to heavy rainfall occurred upstream and across haor areas, and rain may continue for the next three days. As a result, water levels in the Surma River and Kushiyara River may rise further, crossing danger levels at some points by the second day and creating flooding in low-lying areas of Sylhet and Sunamganj.

Water levels in the Bhugai-Kangsha River, Someshwari River and Dhanu-Baulai Basin may remain stable over the next three days, though flooding in adjacent lowlands may continue.

In Moulvibazar and Habiganj, water in the Manu River, Khowai River and Juri River may stay stable for two days before rising on the third day, with the Juri River nearing warning level.

Overall, the agency said continuous rainfall is likely to prolong ongoing flooding in low-lying haor areas of the north-east, while creating fresh flood risks in some locations.

At dawn in a small village in Bhuapur, Tangail, Alamgir Hossain used to open his poultry sheds to the clamor of thousands of chickens; now the silence inside now says more than the noise ever did.

Alamgir, who once oversaw a thriving operation producing 10,000 eggs daily, has been forced to shutter half of his sheds – the quiet has come to reflect a business he can no longer sustain. After more than two decades in poultry farming, he says the numbers no longer add up.

"It costs me around Tk10 to produce an egg, but I often have to sell it at Tk8. I can't survive with losses month after month. Many around me have already quit. I may have to shut down too."

His experience mirrors a broader strain across Bangladesh's poultry sector, where small and medium farmers are struggling to stay afloat amid rising costs and limited returns.

Industry insiders say production costs have more than doubled over the past five years: what once cost Tk100 now costs Tk210 or more. Meanwhile, Bangladesh Poultry Industries Association (BPIA) data states that growth in the sector has slowed from 4.5% to about 3.2% during the same period.

Feed has become the dominant expense, accounting for 80–85% of total production costs, according to farmers. At the same time, higher corporate taxes, advance income tax (AIT), and turnover tax have added further pressure in the current fiscal year.

Shafiqul Islam, a farmer from Bhaluka in Mymensingh, closed his 15,000-bird farm last year. "I used to buy a sack of feed for Tk2,100. Now it costs over Tk3,500. With loan instalments and electricity bills, I couldn't continue," he said. "I had to sell land to repay debts."

Rubina Akter from Monohardi in Narsingdi described a similar struggle. "I started this farm to support my daughters' education. Now I can barely run the household," she said.

Feed prices outpace market returns

Farmers say the sharp rise in feed prices has not been matched by increases in egg and chicken prices, leaving them squeezed between input costs and market rates.

Feed prices have risen by 60-65% over five years, from around Tk2,000-2,200 per sack in 2020 to Tk3,500-3,600 in 2025. In contrast, wholesale egg prices have increased by only 20-25%, from Tk6-7 to Tk8-9 per piece.

Broiler prices show a similar pattern. Wholesale prices rose from Tk120-130 per kg in 2020 to Tk140-150 in 2025 – an increase of just 15-20%, far below the rise in production costs.

"This gap is killing us," said Abdul Kader, a farmer from Chandina in Cumilla. "Feed costs have nearly doubled, but chicken prices haven't. Sometimes we can't even recover costs. Small farmers will disappear if this continues."

Tax changes deepen the strain

Farmers and industry leaders say recent tax hikes have worsened the situation.

According to the National Board of Revenue (NBR), corporate tax for poultry-related companies has been raised from 15% to 27.5% this fiscal year. AIT has increased from 1% to 5%, while turnover tax has gone up from 0.6% to 1%.

Mosharraf Hossain Chowdhury, president of the BPIA, said the effects of the tax changes have been immediate. "The tax hike has a chain effect. Feed companies have increased prices, pushing up production costs," he said.

Farmers estimate that producing one kilogram of broiler now costs around Tk146, while wholesale prices hover between Tk145 and Tk148, leaving little or no margin.

The concerns were raised before NBR Chairman Abdur Rahman Khan last month at a pre-budget meeting at the revenue board. Responding to the industry's claims, he said the tax adjustments were part of broader reform measures.

"Our goal was to rationalise the tax structure and increase revenue collection. Many sectors had long enjoyed tax benefits, which needed review," he said.

He added that the government is aware of the sector's difficulties and may consider adjustments in the next budget.

Higher taxes than regional peers

Industry leaders argue that Bangladesh's poultry sector faces a heavier tax burden than competitors in the region.

BPIA President Mosharraf said Thailand offers five to eight years of full tax exemption for feed industries, Malaysia waives sales tax on feed raw materials, India imposes no advance income tax on imports, and Nepal provides tax relief on key feed inputs.

Dr Ripon Kumar Mondal, a professor of agricultural economics at Sher-e-Bangla Agricultural University, stressed the urgency of reducing feed costs. "Without reducing feed prices, the poultry sector cannot survive. Taxes and duties on imported raw materials must be lowered," he said.

Experts have also suggested cutting corporate tax to 10% and aligning turnover tax with actual profits to help revive the sector.

According to industry leaders, an estimated 60-70 lakh people are directly and indirectly employed in the poultry sector, underlining the wider economic stakes.

Safir Rahman, secretary general of the BPIA, warned of deeper consequences if policy support does not follow. "Without policy support in the next budget, new investment will stop. Existing farmers will leave. Eggs and chicken will become unaffordable for ordinary people," he said.

For Alamgir, the crisis has already moved beyond statistics. "If we cannot survive, there will be no eggs in the market," he said. "Then what will people eat?"

On a single factory floor in Araihazar, around 200 workers – most of them women – sit in a structured production line, placing individual hair strands, sewing, and assembling frames. The finished products, high-quality customised wigs, are shipped to Japan and Singapore.

This is Artnature Bangladesh Limited, one of three companies already in production at the Bangladesh Special Economic Zone (BSEZ), a 1,000-acre industrial development jointly backed by the governments of Bangladesh and Japan, located in Narayanganj's Araihazar.

The scene on the factory floor is modest in scale but significant in signal. BSEZ, also known as the Japanese economic zone, is no longer just a plan on paper.

At least 12 local and foreign companies have secured land in the zone, with combined proposed investments of around $353.4 million. Three are already in production, while around 30 more firms from various countries are in the pipeline.

Active development work was observed during a visit to the site on 9 April. In areas where production has begun, well-constructed internal roads are in place. In plots yet to be built on, wide roads and drainage systems have already been laid.

The Bangladesh Economic Zones Authority (Beza) has handed over around 230 acres to BSEZ so far, with another 220 acres due for transfer within the year.

"The entire area has already been filled and prepared for industrial use," a Beza official said.

Investors span a broad range of industries – home appliances, textile chemicals, FMCG, food processing, hair accessories, and packaging – suggesting BSEZ is developing as a diversified industrial hub rather than a single-sector cluster.

Who are already operating

Singer Bangladesh Limited, acquired by Turkey-based Koç Group in 2019, leads in both scale and investment. Allocated 33.4 acres, the company has proposed an investment of $78 million, of which $56.3 million has already been realised.

Starting operations from 2024, it operates in the home appliances segment and represents the zone's largest single operational presence.

Japan-based Lion Kallol Limited has begun production in the FMCG sector on 8.4 acres, with $7.6 million invested out of a planned $19.4 million. Its initial product lineup includes Mama Lemon Liquid Dish Wash and Systema Toothbrush, with plans to gradually expand its household and personal care range. It began factory operations in March this year.

Artnature rounds out the trio, having realised $9 million of a planned $20 million investment on 4.9 acres. Beyond its production floor, the factory also houses research and development operations, with staff working on customised product design. Artnature began its operations in November 2025.

"We are currently operating as a 100% export-oriented company," said factory General Manager Md Tanvir Rahman. "We plan to expand into raw fiber processing in the future."

He added that while a domestic market for ready-made wigs exists in Bangladesh, Artnature targets the customised segment, an area not yet well established locally.

Who are next

Germany's Rudolf Bangladesh Limited and Japan's Nicca Bangladesh are entering the textile chemicals sector. Rudolf has invested $2.5 million of a planned $20 million, while Nicca has committed $5 million of a planned $7 million.

In food processing, UK-Bangladesh joint venture Pladis ACI Bangladesh Limited is preparing to begin construction on 7.2 acres, with $3 million invested out of a proposed $27 million.

Chinese investors are making a particularly significant push. BSN (Bangladesh) Packaging Company is planning an $80 million project on 9.3 acres, the largest single proposed investment in the zone, with $6.5 million already committed. Leaders Label Material (Bangladesh) has invested $3 million of a planned $25 million.

Sweden's Nilorn Bangladesh (U-2) Limited. has committed $15 million on 2.47 acres. Japan's Bengal Iris Takumi., specialising in textile accessories, has invested $2 million of a planned $7 million. A local Bangladeshi company has secured 5 acres, planning a $25 million investment.

The infrastructure question

For manufacturing investors, infrastructure readiness is often the difference between a signed agreement and an operational factory. On this front, BSEZ is making progress though not everything is in place yet.

Electricity supply is connected to the national grid, and a dedicated 230-kilovolt substation is under development to improve power quality and reliability. Water supply and treatment facilities are fully operational. Natural gas, critical for energy-intensive industries, is the remaining piece.

BSEZ Managing Director Chiharu Tagawa said a government-installed gas supply station has been prepared and that supply is expected to reach the zone by mid-2026.

"Once supply becomes available, it will significantly improve efficiency for energy-intensive industries," he added. Until then, the gas connection remains a limiting factor and one that investors in heavy manufacturing will be watching closely.

Post-election momentum

Tagawa said investor interest picked up significantly following Bangladesh's national election, with inquiries now coming from more than 30 companies.

"We cannot count exactly, but 30 companies from different countries – including US, China, Japan, and Korea – are now interested in BSEZ. Day by day, it is increasing," he said.

Key areas of interest include home appliances, motorcycle parts, batteries, FMCG, and consumer goods. Tagawa attributed the interest to Bangladesh's large domestic market, export potential, and the operational advantages of a dedicated economic zone.

Bangladesh Investment Development Authority (Bida) and Beza Executive Chairman Ashik Chowdhury echoed that assessment, noting that large-scale commitments tend to generate further interest.

"Such large-scale investments create a positive signalling effect. We already have several major investment proposals in the pipeline, which are under discussion. We expect significant progress in investment inflows this year," he said.

The bigger picture

BSEZ has created around 3,000 jobs to date. The long-term target is to accommodate 90-100 companies across the full 1,000 acres within the next six to seven years, with total investment expected to reach $1-2 billion.

Around 268 acres remain available for allocation. Beza Deputy Secretary Mohammad Zakaria Mithu said the focus is now on converting interest into implementation.

The ground-level reality at BSEZ today – operational factories, roads laid through empty plots, gas infrastructure nearly ready – reflects a zone that has moved past its early stage but still has most of its story left to write.

Whether the 30-plus companies in the pipeline translate into the next wave of operational companies will determine whether BSEZ becomes the industrial landmark both governments envisioned.

Bangladesh has sought expanded support from the Asian Development Bank (ADB) as geopolitical tensions, inflation, and supply chain disruptions have increased the country’s energy-related expenditures by an estimated $3 billion.

Finance Minister Amir Khosru Mahmud Chowdhury made the plea at a session of the Board of Governors at the 59th annual meeting of ADB in Samarkand, Uzbekistan.

Some 47 countries, including Bangladesh, made their presentations at the session.

The finance minister reminded participants that they are meeting at a time of heightened global uncertainty.

“Geopolitical tensions, inflation, tighter financial conditions, and supply chain disruptions are reshaping development trajectories,” he said.

For Bangladesh, a highly energy-deficient country that relies on imports, the conflict in the Middle East has further intensified energy and trade pressures.

Chowdhury said this has resulted in an estimated additional $3 billion in energy-related expenditures, raising external financing needs for the South Asian country.

“We appreciate ADB’s timely budget support for macroeconomic stability and request that countercyclical financing instruments remain available should global risks escalate,” he said.

He noted Bangladesh’s high vulnerability to climate change and urged the ADB to expand concessional climate financing as floods, cyclones, salinity intrusion, and sea-level rise continue to threaten livelihoods and infrastructure.

“We seek expanded concessional climate finance for adaptation and mitigation, including resilient infrastructure, climate-smart agriculture, disaster risk reduction, and nature-based solutions.”

As Bangladesh aims to generate 20 percent of its energy from renewable sources by 2030, he also requested ADB’s leadership in the Bangladesh Climate Development Partnership to advance renewable energy, ecosystem restoration, and river and canal rehabilitation.

He said Bangladesh remains firmly committed to reform-driven development. “Our priorities include energy and food security, financial resilience, revenue modernisation, connectivity, export diversification, digital transformation, skills, jobs, social protection, and balanced regional development.”

“We also welcome support for regional connectivity through SASEC (South Asia Subregional Economic Cooperation) and wider links among SAARC and with ASEAN countries to strengthen supply chains and expand trade and investment opportunities,” he said.

He stressed the mobilisation of private capital and blended finance, renewable energy, urban development, and digital development for stronger regional crisis response capacity and deeper energy cooperation.

Bangladesh also emphasised enhanced support for AI readiness and future skills, and greater focus on job creation in emerging sectors.

Chowdhury also cited Bangladesh’s challenges in hosting a significant population of forcibly displaced Myanmar nationals on humanitarian grounds and sought ADB’s enhanced support for both displaced populations and host communities.

The finance minister sought ADB’s continued support for timely project delivery and capacity building.

He said Bangladesh encourages ADB to support transformative investments that deepen the country’s regional connectivity, modernise infrastructure, ensure energy security, and strengthen digital and logistics capacity.

“This can boost productivity, unlock the potential of our north-south corridors, create jobs in emerging industries, and reduce poverty and regional disparities.”

The Dhaka Stock Exchange (DSE) witnessed a significant retreat today (3 May) as a massive sell-off in the banking sector, triggered by the formal downgrade of ten more lenders to the "Z" category, dragged down the benchmark index.

The premier bourse felt the immediate impact of investor panic as nearly 42% of the country's listed banking sector shifted into the "junk" stock segment, a move that severely eroded market sentiment and tightened liquidity across the floor.

The benchmark DSEX index plunged by 21 points, or 0.40%, to settle the session at 5,265. While the blue-chip DS30 index managed to edge up by a marginal 0.09% to reach 2,018, the broader market breadth remained negative. Out of the 396 issues traded, 180 declined, 165 advanced, and 51 remained unchanged.

Market participation also saw a slight contraction, with daily turnover edging down by 4% to Tk829 crore compared to the previous session.

The day's downturn was almost entirely dictated by the banking sector. Market sources confirmed that ten banks – AB Bank, Al-Arafah Islami Bank, IFIC Bank, Mercantile Bank, NRB Bank, NRBC Bank, One Bank, Premier Bank, Rupali Bank, and United Commercial Bank – were moved to the "Z" category on Sunday.

This followed their failure to declare any dividends for two consecutive years, a direct consequence of persistent financial irregularities and mounting bad loans. This latest wave of downgrades follows a similar move on 30 April, when Islami Bank, Standard Bank, and SBAC Bank were also pushed into the junk category for the same reasons.

Among the newly downgraded entities, Mercantile Bank suffered the most brutal correction, with its share price crashing by 18.18% to close at Tk7.20. AB Bank followed with an 11.32% decline, ending the day at Tk4.70.

Other notable losers included Premier Bank, which shed 8.89% to settle at Tk4.10, and IFIC Bank, which dropped 6.12% to close at Tk4.60. Al-Arafah Islami Bank, NRB Bank, and One Bank also saw their share values erode by more than 4% each. Even the state-owned Rupali Bank recorded a 2.91% price fall.

Consequences of Z category

Analysts said the primary reason behind this unprecedented sector-wide dividend drought is a massive provision shortfall against classified loans and investments. Under Bangladesh Bank regulations, lenders suffering from provision deficits are strictly prohibited from declaring dividends.

To maintain a semblance of regulatory compliance and prepare audit reports, several of these banks have reportedly availed deferral facilities from the central bank. While this allows them to postpone their immediate financial obligations, it does nothing to improve their actual profitability or their ability to reward shareholders, effectively trapping them in the junk category.

The transition to the "Z" category carries severe operational and psychological consequences for a listed firm. These stocks are widely perceived as high-risk assets due to their weak financial health and lack of corporate governance, analysts added.

Furthermore, trading rules for junk stocks are significantly more restrictive. Unlike "A" and "B" category stocks, which follow a T+2 settlement cycle, "Z" category transactions are settled on a T+3 basis.

Additionally, these shares are ineligible for margin loans and are restricted to cash-only transactions. These barriers often lead to a sharp decline in trading volume and liquidity, making it difficult for investors to exit their positions.

With 15 out of the 36 listed banks now trading in the "Z" category, the systemic health of the banking sector has become a major concern for the capital market.

Few outliers

Among the affected lenders, only a few managed to resist the downward trend today. The share prices of UCB and Standard Bank remained unchanged, while NRBC Bank emerged as the sole outlier in the sector, managing to post price appreciation despite the broader sell-off.

The banking rout mirrored the performance of the Chittagong Stock Exchange as well. The CSCX index ended 7 points lower at 9,086, while the CASPI shed 17 points to close at 14,788. Turnover at the port city bourse saw a more pronounced decline of 14%, settling at Tk41.35 crore.

Major index draggers for the day included Mercantile Bank, Shahjalal Islami Bank, Trust Bank, NCC Bank, and Al-Arafah Islami Bank.

NBFIs gain traction

Interestingly, while established banks faced a rout, the gainers' list today was dominated by non-bank financial institutions (NBFIs), many of which are themselves grappling with high non-performing loans and governance crises.

Speculative trading appeared to drive these stocks higher, with Fareast Finance and Bangladesh Industrial Finance Company (BIFC) both hitting the 10% upper limit. Other gainers included International Leasing, Premier Leasing, FAS Finance, and Peoples Leasing.

Market observers described this as a classic case of speculative 'junk-hunting' where investors shift capital into low-priced, volatile stocks following a crash in more fundamental sectors like banking.

The Cabinet has approved a set of tax measures for the import of completely new electric vehicles, including buses and trucks.

The decision was taken at a Cabinet meeting - chaired by Prime Minister Tarique Rahman - held in the Cabinet Room of the National Parliament at 6:45pm on Sunday (3 May), according to a statement from the Cabinet Division.

Under the decision, a notification will be issued to maintain the Value Added Tax (VAT) at 15% for electric buses with a minimum of 17 seats, for use in sectors other than student transportation.

At the same time, these imports will be exempted from customs duty (CD), regulatory duty (RD), supplementary duty (SD), advance tax (AT) and advance income tax (AIT), subject to certain conditions.

According to Cabinet Division sources, the National Board of Revenue will soon issue a notification in this regard. The facility will remain in effect till 30 June 2026 - i.e. the end of the current fiscal year of 2025-26.

It follows an earlier decision to allow the duty-free import of electric buses for educational institutions to promote safe and environmentally friendly transportation for students.

A similar notification will also be issued for the import of trucks with a capacity of five tonnes or more, the statement added.

The initiative was proposed by the Internal Resources Division, the statement said.

United Commercial Bank (UCB) secured a whopping 198 per cent year-on-year increase in consolidated profit to Tk 238 million in 2025 as it reaped handsome returns from investment income.
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Investment earnings, including income from Treasuries, subordinated bonds, other private sector bonds, and investments, more than doubled to Tk 15.2 billion in 2025, according to the company's latest financial statement.

However, net interest income declined due to a sharp rise in interest expenses in a high-rate environment.

Deposits surged 23 per cent year-on-year to a historic Tk 683.9 billion, more than double the sectoral average growth.

UCB added nearly 678,000 new accounts during the year, including a large number of savings and current accounts, strengthening its retail base, which now accounts for 59 per cent of total deposits.

Agent banking also contributed steadily, with higher average deposits per outlet.

Stronger deposit inflows improved liquidity, bringing down the advance-deposit ratio to 83 per cent from over 91 per cent a year earlier.

Excess liquidity was channelled into low-risk government securities, pushing such investments up by 69 per cent year-on-year in 2025 to more than Tk 148 billion. Total assets expanded by 14.5 per cent to more than Tk 884 billion.

Loan growth remained measured at 8 per cent, reflecting a cautious approach focused on asset quality.

While the classified loan ratio stood at 15.5 per cent, the company's management indicated ongoing efforts to reduce stressed assets.

UCB made notable progress in digital transformation. Around 65 per cent of total transactions were processed through digital channels in 2025.

The bank's credit rating remained 'AA' in the long term with a negative outlook, reflecting ongoing pressure from capital and provisioning requirements.

No dividend has been declared for 2025 due to restrictions linked to provisioning shortfall.

Overall, UCB ended the year on a stronger footing, with improved liquidity, expanding digital operations, and steady earnings growth despite a challenging interest rate environment.

The price of a 12kg cylinder of liquefied petroleum gas (LPG) remains unchanged at Tk 1,940 for May.Business Policy Updates
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The Bangladesh Energy Regulatory Commission (BERC) announced the decision on Sunday, which would take effect from 6 pm. Bangladeshmarket report

The LPG prices were adjusted twice last month.

On April 2, the price of the 12kg cylinder was raised by Tk 387 to Tk 1,728. Later, on April 19, BERC hiked the price by Tk 212, setting it at Tk 1,940.

The private sector can sell LPG in various cylinder sizes-5.5kg, 12.5kg, 15kg, 16kg, 18kg, 20kg, 22kg, 25kg, 30kg, 35kg and 45kg-to consumers at proportional price in May.

The price of LPG supplied through a reticulated system or centralised storage system also remains unchanged at Tk 351 per cubic metre for May.

Meanwhile, the consumer-level price of autogas has been slightly increased by 2 paisa for May, setting the new price at Tk 89.52 per liter, including value added tax (VAT).

Autogas prices were also adjusted twice last month.

On April 2, the price was raised by Tk 17.94 to Tk 79.77 per liter. On April 19, BERC increased the price by Tk 9.73, fixing it at Tk 89.50 per liter.

The United Arab Emirates has left the Organization of Arab Petroleum Exporting Countries (OAPEC), an alliance that does not set production policies for its members, a statement from the intergovernmental organisation showed on Sunday.

The statement follows UAE's surprise announcement on 28 April of its departure from the OPEC and OPEC+ producer groups, to prioritise boosting its own output.

OAPEC was formed in 1968 with the aim of boosting cooperation among Arab oil exporters.

The Asian Development Bank (ADB) will back $70 billion in new energy and digital infrastructure initiatives by 2035, aiming to connect power grids, expand cross-border electricity trade, and improve broadband access across Asia and the Pacific.

The Pan-Asia Power Grid Initiative will connect national and subregional power systems so renewable energy can flow across borders, while the Asia-Pacific Digital Highway will help close the digital infrastructure gap and enable the region to benefit from AI-driven growth, reads a press release.

Under the Pan-Asia Power Grid Initiative, ADB will work with governments, utilities, the private sector, and development partners to mobilise $50 billion by 2035 for cross-border power infrastructure that can unlock renewable energy at scale.

The initiative will focus on transmission and grid integration, including cross-border lines, substations, storage, and grid digitalisation.

It will also support power generation linked to electricity trade, including renewable energy export projects, regional renewable hubs, and hybrid generation-storage facilities.

By 2035, ADB aims to integrate about 20 gigawatts of renewable energy across borders, connect 22,000 circuit-kilometers of transmission lines, improve energy access for 200 million people, create 840,000 jobs, and cut regional power sector emissions by 15%.

ADB expects to finance about half of the $50 billion initiative from its own resources and raise the rest through cofinancing, including from the private sector.

Up to $10 million in technical assistance will support efforts to align regulations, adopt common technical standards, prepare feasibility studies and advance other work needed for major projects.

The Pan-Asia Power Grid Initiative marks a shift from country-to-country energy links to a regional approach to power trade.

It builds on existing subregional cooperation initiatives, including the South Asia Subregional Economic Cooperation program, the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation grid interconnection planning, the ASEAN Power Grid, and the Central Asia Regional Economic Cooperation Energy Strategy 2030.

The Asia-Pacific Digital Highway will mobilise $20 billion by 2035 to finance digital corridors, data infrastructure, and AI-ready economies.

Investments will focus on connected infrastructure, including terrestrial and subsea fiber networks, satellite links and regional data centres.

ADB will also provide policy and regulatory support, including on cybersecurity risk management, and invest in skills programs to strengthen digital and AI readiness.

By 2035, the initiative aims to provide first-time broadband access to 200 million people and faster, more reliable digital connectivity for another 450 million people across the region.

It is expected to cut connectivity costs in remote and landlocked areas by about 40% and help create 4 million jobs.

ADB expects to finance $15 billion of the $20 billion initiative from its own resources and raise $5 billion through cofinancing, including from the private sector.

The Centre for AI Innovation and Development will be established in Seoul to support the initiative. Backed by a $20 million contribution from the Government of the Republic of Korea, the centre will promote responsible and inclusive AI adoption and help train about 3 million people in digital and AI-related skills by 2035.

ADB President Masato Kanda said that Energy and digital access will define the region's future.

"These two initiatives build the systems Asia and the Pacific need to grow, compete, and connect. By linking power grids and digital networks across borders, we can lower costs, expand opportunity, and bring reliable power and digital access to hundreds of millions of people."

The telecom regulator has decided to allocate 10 MHz from the highly valuable 700 MHz band to state-owned Teletalk, despite the operator owing around Tk 5,500 crore in spectrum fees and already holding significant unused or underused spectrum.

The decision was taken at a recent Bangladesh Telecommunication Regulatory Commission (BTRC) meeting, according to documents.

The 700 MHz band is considered globally valuable for wide coverage, strong indoor signal, low rollout cost, and suitability for rural-urban networks, including 5G. In Bangladesh, 45 MHz of the band is allocated for mobile use, while 20 MHz remains unused due to a legal dispute.

TIMELINE OF GOVT, REGULATORY ACTIONS

On February 8, just before the national election, the interim government, through the telecom ministry, sent a letter to BTRC instructing it to allocate 10 MHz of spectrum to Teletalk.

A day later, Teletalk applied for the spectrum.

On February 16, the ministry informed the regulator that Teletalk had proposed converting its unpaid dues -- including licence and spectrum fees -- into government equity, now under finance division review.

On April 9, BTRC sought guidance from the ministry on how Teletalk would pay for the allocation. On April 24, the ministry directed the regulator to proceed with the allocation, citing the need to reduce customer inconvenience in line with the government’s election manifesto.

The price was set at Tk 237 crore per MHz, matching the rate paid by Grameenphone for 10 MHz in January as the sole bidder in the auction.

The move means the government may forgo at least Tk 2,000 crore in revenue in the near term.

Only 5 MHz of available spectrum in this band will remain for Banglalink and Robi, both of which have large customer bases. The two operators did not join the latest auction, saying prices were too high.

Spectrum is a limited and valuable resource that countries manage carefully, as it is important for improving telecom services and generating government revenue. In Bangladesh, there have been concerns about spectrum management, particularly regarding Teletalk.

LARGE DUES AND UNUTILISED SPECTRUM

Teletalk holds 55.2 MHz across the 900, 1800, 2100, and 2300 MHz bands and serves around 68 lakh subscribers, giving it about 0.81 MHz per lakh users.

By comparison, Grameenphone has 137.4 MHz for 8.44 crore subscribers (0.16 MHz per lakh), Robi has 124 MHz for 5.74 crore users (0.22 MHz per lakh), and Banglalink has 80 MHz for 3.74 crore users (0.21 MHz per lakh).

Despite higher spectrum per subscriber, Teletalk’s voice and data service quality has been weaker than peers in BTRC quality tests over the years, and it has added only about 1 lakh subscribers in five years.

The operator has also not used 30 MHz in the 2300 MHz band acquired in the 2022 auction, despite rollout obligations, which is considered a breach of spectrum utilisation rules.

Teletalk’s total liabilities include Tk 120 crore in licence fees, Tk 102 crore in revenue sharing, Tk 5,506 crore in spectrum fees, and around Tk 62 crore in other charges.

EXPERT CRITICISM

“Private operators are required to follow strict rules, but public companies often do not face the same obligations, which creates a market imbalance,” said Khondaker Golam Moazzem, research director at the Centre for Policy Dialogue.

He added that large unpaid dues raise doubts about such firms’ ability to survive in a competitive market, noting they often rely on government support rather than efficiency.

TIM Nurul Kabir, a telecom expert, said, “Spectrum is a valuable resource and allocating it to an operator that cannot ensure good service or generate revenue is a poor regulatory decision.”

“The government needs a different approach to revive Teletalk rather than using up valuable resources. Such decisions are also anti-competitive,” he added.

Md Emdad ul Bari, chairman of BTRC, said the allocation was approved on the condition that spectrum charges would be converted into government equity.

He said this would not cause revenue loss, as funds would shift between state entities as equity investments.