The implementation of the Revised Annual Development Programme (RADP) recorded a slow pace during the first ten months (July-April) of the current 2025-2026 fiscal year, hitting an execution rate of 41.41 percent.

According to the latest report released by the Implementation Monitoring and Evaluation Division (IMED) of the Ministry of Planning, government agencies spent Tk 86,516.08 crore out of the total RADP allocation of Tk 2,08,935.53 crore earmarked for the fiscal year, UNB reports.

This performance indicates a notable slowdown in project execution compared to previous fiscal years, highlighting persistent challenges in administrative momentum and development spending following recent structural and political changes.

An analysis of the IMED data reveals a consistent downward trajectory in both RADP allocations and execution rates over the last few fiscal years.

In the current FY 2025-2026, out of a reduced RADP allocation of Tk 2,08,935.53 crore, the ten-month expenditure stands at Tk 86,516.08 crore, reflecting an execution rate of 41.41 percent.

During the same July-April period of FY 2024-2025, the expenditure was Tk 93,424.83 crore against an allocation of Tk 2,26,166.88 crore, yielding an implementation rate of 41.31 percent.

In FY 2023-2024, the implementation rate stood significantly higher at 49.26 percent with an expenditure of Tk 1,25,315.68 crore out of a Tk 2,54,391.64 crore allocation.

For FY 2022-2023, the execution rate was 50.33 percent with Tk 1,19,064.39 crore spent out of Tk 2,36,560.67 crore.

In FY 2021-2022, the 10-month implementation reached 54.57 percent, with an expenditure of Tk 1,19,829.74 crore out of Tk 2,19,601.91 crore.

The monthly progress for April also reflected a sluggish development drive.

In April 2026 alone, the government managed to implement only 5.22 percent of the development budget, translating to an expenditure of Tk 10,908.84 crore.

This single-month progress is slightly higher in percentage than the previous year's performance, where April 2025 recorded a 4.66 percent implementation rate with a spending of Tk 10,530.75 crore, but it remains heavily constrained compared to historical trends. Planning Ministry officials cited multiple structural issues contributing to the slower release and utilisation of development funds this fiscal year.

The primary setbacks include the ongoing rigorous review of development projects to realign national priorities, which has temporarily paused funds for several major initiatives.

Furthermore, administrative reshuffles, delays in appointing new project directors, and strict compliance checks on new procurements have extended execution timelines.

The exit or inactivity of several contracting firms following political transitions late last year has also left numerous physical infrastructure projects partially stalled.

With only two months left in the current fiscal year (May and June), ministries and execution agencies face tremendous pressure to fast-track their pending bills and accelerate construction phases if they are to prevent large sums of development funds from returning unutilized.

The European Union and Mexico will on Friday sign a deal reducing tariffs on each other's goods as both seek to lessen their dependence on trade with the United States.

The expansion of an accord dating to 2000 comes as Mexico fights hard to preserve a three-way free trade agreement with the United States and Canada, which is crucial to all three economies.

The EU is Mexico's third-largest trading partner, lagging far behind the United States and China.

Mexican President Claudia Sheinbaum has stressed the importance of "opening other horizons" at a time when both Mexico and the European Union are grappling with US President Donald Trump's tariff offensive.

The updated agreement to be signed by Sheinbaum and European Commission President Ursula von der Leyen during the eighth EU-Mexico Summit removes most remaining barriers to trade and investment.

It facilitates trade in auto parts, a sector particularly affected by Trump's tariffs.

"Mexico wants to reduce its dependence on its northern neighbor, but also on Asian, or rather, Chinese, supply chains, and in Europe we are pursuing the same objectives," an EU official told AFP on condition of anonymity.

On a visit Thursday to Mexico City, the EU's foreign policy chief Kaja Kallas, said the deal would create new opportunities for "both economies to compete globally" and build on the momentum of the past decade, which has seen a 75-percent leap in EU-Mexican trade.

Earlier this week, the European Union moved to end a trade standoff with Trump by agreeing to implement a deal signed last year with the United States, which sets tariffs on most European goods at 15 percent.

Average US tariffs on Mexican goods are a quarter of that -- with many avoiding levies altogether under the USMCA (United States, Mexico, Canada) agreement.

The lower tariffs enjoyed by Mexico will benefit the European Union, according to Sergio Contreras, president of the Mexican Business Council for Foreign Trade.

Mexico will be "the point of convergence, the platform for the European Union and North America to come together," he said.

Depositors of six troubled non-bank financial institutions (NBFIs) yesterday demanded that the government issue a gazette notification ensuring full repayment of their deposits, along with profits, by the end of this year.
Speaking at a press conference at the National Press Club, an alliance of the affected depositors claimed that they were being kept in the dark about the government’s plans for them.
Neither the Bangladesh Bank nor the finance ministry had officially communicated with them despite a silent protest and memorandum submitted on May 6, they said.

In a press statement, the alliance said around 12,000 depositors were still waiting for clarity regarding the fate of their savings, many of whom had been unable to access their money since 2019.
“We are only hearing things through the media. No ordinance has been issued yet. No official government order has reached us,” said Jafar Ullah Khan, convenor of the Alliance of 6 NBFIs Depositors Recovery Committee.

“We will not accept any under process language as an alternative to a legal commitment. Issue the gazette notification. Fix a timeframe. Give it in writing,” he added.

The alliance argued that the central bank must take responsibility for ensuring their payment as the depositors had placed their life savings in institutions approved by the regulator.

The depositors did not gamble or make risky investments, they said, adding that teachers, pensioners, widows, and retired individuals deposited their savings relying on the regulator’s approval of the institutions.The depositors also rejected any proposal to return only the principal amount without profits.
Kawsar Hossain Chowdhury, co-founder and coordinator of the alliance, said contractual profits were promised under the deposit schemes and depositors should not bear losses caused by institutional failures and regulatory negligence.“Now, we are being offered only the principal money back -- as if years of waiting have no value, as if inflation does not exist,” he said.

Citing inflation data and contractual deposit rates, the alliance claimed that a depositor who invested Tk 10 lakh in 2019 had effectively suffered a loss of more than Tk 12 lakh due to inflation and loss of profit income.The platform also demanded criminal proceedings against directors, officials, and default borrowers responsible for the collapse of the institutions.

It called for recovery of assets from defaulters, publication of a public register naming responsible individuals, and ensuring that no one is exempted from liability.Munira Khan, former member of the National Human Rights Commission, said the affected depositors were not beggars seeking aid for underprivileged people, but rather demanding the return of their own funds stuck in the NBFIs.

She said they wanted an implementable roadmap for refunding the money, not verbal promises.The Bangladesh Bank did not issue any warning while the institutions, that the regulator itself had approved, were being looted, said Prof Farid Rashid Kamal, who is also one of the affected depositors.

Auditors and credit rating agencies also presented rosy pictures of the NBFIs, he added, noting that all those responsible for safeguarding the institutions failed in their duties.

“Now, it is a moral duty of the government to ensure the return of the funds,” he added.

India's growing reliance on Venezuelan crude comes as the closure of the Strait of Hormuz disrupts a major corridor for its oil imports, forcing a rapid shift in supply chains and energy diplomacy.

What is driving the crisis?

The escalation of conflict involving Iran has led to the closure of the Strait of Hormuz, a key maritime route through which nearly half of India's crude oil imports typically pass. A US naval blockade of Iranian ports has also halted Iranian shipments to India this month. Reports Al Jazeera.

At the same time, supply from other Gulf partners has tightened. Imports from Saudi Arabia have fallen sharply from about 670,000 barrels per day in April to roughly 340,000 barrels per day in May. Indian officials have also raised concerns about maritime security after multiple incidents involving India-linked vessels, including one ship that sank following a suspected attack.

Why is India turning to Venezuela?

With Gulf flows constrained, India has increased imports from Venezuela, which now ranks as its third-largest crude supplier this month.

Shipments have risen by nearly 50% from April to around 417,000 barrels per day in May, after a nine-month period with no exports to India.

The country holds the world's largest oil reserves, estimated at 303 billion barrels, and about 17% of global totals. Its re-emergence as a supplier is also linked to shifts in US policy following the removal of former President Nicolas Maduro by US forces in January 2026, which led Washington to push Venezuelan crude into global markets.

What role is the United States playing?

The United States is actively shaping this realignment. US Secretary of State Marco Rubio is visiting India from (23–26 May) to discuss energy security and trade, with Washington signalling it wants to sell India "as much energy as they'll buy".

At the same time, the US is encouraging Venezuelan exports to reduce Iran's leverage in negotiations and to push diversification away from Russian oil.

Venezuelan Acting President Delcy Rodriguez is also expected in India next week to discuss future oil sales.

Can Venezuelan crude replace Gulf supply?

Venezuela's crude is ultra-heavy and sulphur-rich, making it harder to process in many refineries. However, it is considered well suited for Reliance Industries' Jamnagar refinery in Gujarat, one of the few global facilities designed to handle such grades efficiently.

This compatibility gives India a limited but important alternative supply option as Gulf flows remain disrupted.

However, the scale of Venezuela's current exports to India—around 417,000 barrels per day—remains well below the combined volumes historically sourced from Gulf suppliers, particularly during normal Strait of Hormuz operations.

What does this shift mean globally?

The US-backed reopening of Venezuelan oil flows is also seen as part of a broader effort to reshape global energy supply chains. The strategy aims to reintegrate Venezuela's oil sector—home to the world's largest reserves—into global markets while reducing leverage held by Iran and Russia.

US companies including Chevron currently produce about 250,000 barrels per day in Venezuela, while ExxonMobil is reportedly seeking to re-enter the country after nearly two decades.

Venezuelan oil is helping India offset some immediate supply disruptions from the Gulf, but it does not fully replace the scale or strategic importance of routes affected by the Hormuz closure.

The shift instead reflects a broader reordering of energy flows, where Venezuela is becoming a temporary pressure valve in a system still heavily exposed to geopolitical risks in the Middle East.

Only one bank will be able to pay cash dividends next year after the Bangladesh Bank barred lenders with paid-up capital below Tk 2,000 crore from making such payouts.

In a circular issued yesterday, the Bangladesh Bank (BB) said the move is aimed at strengthening the capital base of the banking sector. It also seeks to improve the ability of commercial lenders to absorb future risks amid a challenging global and domestic financial environment.

Only BRAC Bank and National Bank PLC (NBL) meet the higher paid-up capital threshold among listed lenders.

However, National Bank remains in significant losses, leaving BRAC Bank as the only institution effectively positioned to meet the requirement for cash dividend payments.

Even for banks that meet the paid-up capital threshold, the central bank has capped cash dividends at 50 percent of the declared payout, with the remainder to be issued as stock dividends.

The new rules will take effect from dividend declarations for the year ending December 31, 2026 and onwards, according to the Supervision Policy and Coordination Department of Bangladesh Bank.

The policy is expected to affect most listed banks, raising concerns among market participants about shareholder returns.

While the measure may improve the resilience of the banking sector in the long run, it is likely to reduce flexibility for banks that are otherwise financially stable.

Mashrur Arefin, chairman of the Association of Bankers, Bangladesh (ABB), the apex body of the country’s commercial bank executives, said, “This is a good move towards strengthening the capital base of the banks.”

He said a few banks with weak capital bases did take cash out in the past. But the shareholders of healthy banks will now suffer. “That’s not good.”

The ABB chairman said the dividend rule should instead have been linked to the Capital Adequacy Ratio, which he argued would have been fairer for shareholders of well-performing banks.

“Shareholders have a reasonable expectation of cash returns when a bank is performing well. That incentive for supporting strong banking institutions is being overlooked,” said Arefin, who is also managing director and chief executive officer of City Bank.

“This will not help our agenda to encourage people to go to the capital market for their investments. I don’t know why CAR wasn’t considered. Is it because the government is seeking higher credit growth? But that connection is too distant.”

Banks can raise paid-up capital through rights shares to meet the Tk 2,000 crore threshold and retain eligibility for cash dividends. A rights issue allows existing shareholders to buy additional shares, usually at a discounted price, in proportion to their current holdings.

Asif Khan, president of CFA Society Bangladesh, also opposed linking dividend eligibility to paid-up capital, suggesting it should instead be tied to shareholders’ equity, capital adequacy ratio and provisioning levels.

He said that only one bank now effectively meets the Tk 2,000 crore threshold. So, most of the commercial lenders will be unable to pay cash dividends from next year, which could affect the capital market.

According to Dhaka Stock Exchange (DSE) data, National Bank PLC has the highest paid-up capital among listed lenders at Tk 3,219 crore, followed by BRAC Bank at Tk 2,289 crore and City Bank at Tk 1,749 crore.

Other major lenders include Eastern Bank (EBL), Islami Bank Bangladesh, United Commercial Bank, Pubali Bank, Bank Asia, Southeast Bank and Prime Bank, all of which fall below the paid-up capital threshold.

EBL’s paid-up capital stands at Tk 1,643 crore, Islami Bank Bangladesh’s at Tk 1,609 crore and United Commercial Bank’s at Tk 1,550 crore, according to Dhaka Stock Exchange (DSE) data.

Pubali Bank has Tk 1,496 crore, Bank Asia Tk 1,391 crore and Southeast Bank Tk 1,373 crore, while Prime Bank’s paid-up capital is Tk 1,218 crore.

Khan said many of these banks maintain strong capital adequacy ratios and have no provisioning shortfalls.

“So, why would they be barred from giving cash dividend?”

He also pointed to a possible policy conflict with the National Board of Revenue (NBR), which imposes higher tax on listed firms that do not pay cash dividends.

The Bangladesh Bank said the decision was taken considering the overall condition of the banking sector, depositor protection, financial resilience and the need to strengthen capital conservation buffers.

A senior central bank official said the policy was intended to improve the health of the banking sector and protect depositors’ interests.

Other eligibility criteria for dividend payout would remain unchanged, he added.

Bangladesh Bank yesterday announced a Tk 60,000 crore stimulus package aimed at reviving the struggling private sector amid slowing growth and persistent inflation concerns.

Announcing the package at a press briefing at the central bank headquarters, BB Governor Md Mostaqur Rahman said the initiative was designed to address industrial disruption and financial sector vulnerabilities while supporting employment generation.

The package has two main components.

The first is a Tk 41,000 crore refinancing fund to be mobilised from banks with surplus liquidity through long-term deposits of at least three years at a 10 percent interest rate. Under the arrangement, Bangladesh Bank will provide refinance at 4 percent interest, while the government will subsidise the remaining 6 percent.

The second component is a Tk 19,000 crore fund sourced directly from the central bank’s own resources with a government guarantee.

Under the overall scheme, large borrowers will be able to access loans at around 7 percent interest, while smaller loans may carry slightly higher rates because of administrative and operational costs. Detailed implementation guidelines will be issued through upcoming circulars, the central bank said.

A major portion of the refinancing fund -- Tk 20,000 crore -- has been allocated for reopening closed factories, making it the single largest allocation. Another Tk 10,000 crore has been earmarked for agriculture and rural economic activities.

The cottage, micro, small and medium enterprise (CMSME) sector will receive Tk 5,000 crore, while Tk 3,000 crore each has been allocated for export diversification and the North Bengal Agricultural Hub initiative.

The Tk 19,000 crore BB-funded portion will support 10 targeted schemes, including pre-shipment export financing, CMSME support, overseas employment financing, startup funding, and youth-focused employment programmes.

This is the largest stimulus package since the then government provided Tk 2,37,679 crore under 28 separate programmes to ensure a quick economic recovery from the fallout of the Covid-19 pandemic.

According to the governor, the latest package is expected to generate more than 25 lakh jobs across industries, SMEs, agriculture, exports, startups, and youth employment initiatives.

Mostaqur said Bangladesh’s GDP growth has slowed significantly over the past three years, falling from 5.8 percent to 4.2 percent and likely declining further to around 3.7 percent.

He attributed the slowdown to disruptions in industries including garments, textiles, steel, ceramics, information technology, and broader manufacturing.

He also pointed to mounting stress in the financial sector, including a sharp rise in classified loans, declining depositor confidence, and high borrowing costs that have discouraged SME expansion.

The governor further cited capital flight and alleged illicit financial outflows, saying financial irregularities had weakened the banking system and intensified liquidity pressures.

Despite the central bank’s optimism, bankers and economists have expressed concern over the package’s design, funding structure, implementation feasibility, and possible inflationary impact.

Mashrur Arefin, chairman of the Association of Bankers, Bangladesh (ABB), described the package as “an excellent plan” but said effective implementation would be crucial.

He questioned the sourcing of the fund, arguing that banks’ surplus liquidity is already largely invested in treasury bills and bonds. He also noted that banks need to maintain some idle funds for day-to-day operations, limiting their ability to participate.

Mashrur suggested that instead of relying solely on bank deposits, Bangladesh Bank could inject liquidity by lowering the repo rate against treasury bills and bonds or reducing the cash reserve ratio (CRR).

According to him, such measures would make the package more workable and allow banks to lend at the intended 4 percent spread.

He also acknowledged that the initiative could fuel inflation, but said boosting employment and economic activity was also necessary under current conditions.

Syed Mahbubur Rahman, managing director of Mutual Trust Bank, also supported the intent but warned that implementation would be difficult.

He said banks are unlikely to lend to closed or failed factories because of the high risks involved. Restarting such units would require operational restructuring, management changes, workforce rehiring, and resolution of underlying financial and operational problems.

If revival efforts fail, banks risk losing their funds entirely, he said.

Mahbubur said credit growth has slowed to around 4.7 percent not because of a liquidity shortage, but due to a lack of viable borrowers. He also cited structural bottlenecks -- including inadequate infrastructure, weak law enforcement, and energy shortages -- as major constraints on investment.

Even operational factories are struggling because of gas shortages and rising electricity and energy costs, he said, adding that unresolved Covid-era stimulus loans continue to burden the banking sector.

He warned that because Bangladesh Bank would eventually recover refinance funds from commercial banks when schemes mature, the package could add further pressure on lenders already grappling with high default rates.

Responding to journalists’ questions at the briefing, the governor clarified that the package does not involve printing new money, but rather reallocating idle liquidity already present within the banking system.

He said some banks have excess liquidity while others face shortages, and the objective is to channel idle funds into productive sectors through refinancing mechanisms.

Mostaqur also said Tk 6,000 crore from the Tk 19,000 crore central bank allocation had already been deployed from BB’s surplus funds. He said the central bank earns around Tk 20,000 crore annually in profit, allowing it to finance the initiative without triggering inflation through money creation.

The governor also acknowledged weaknesses in previous stimulus programmes, particularly during the Covid-19 period, when a small number of large business groups reportedly received a disproportionate share of funds.

He said stricter monitoring and safeguards would be introduced this time to prevent concentration of benefits and improve accountability.

Mostaqur further admitted the depth of the banking sector crisis, saying a significant amount of banking funds had been lost through irregularities, loan scams, and financial mismanagement.

Many of these bad loans, he said, were not traditional defaults caused by business failure, but funds siphoned off without adequate collateral.

As part of the overall package, Bangladesh Bank also announced a Tk 500 crore fund from corporate social responsibility (CSR) resources to support creative industries. Unlike the stimulus loans, this fund will not require repayment.

Economists, however, remained cautious.

Abdur Razzaque, chairman of Research and Policy Integration for Development (RAPID), said the package appeared well-intentioned but lacked sufficient evaluation and consideration of alternatives.

He argued that controlling inflation should remain the top priority and warned that such stimulus measures could intensify price pressures and increase public hardship.

He also noted that stimulus alone does not guarantee improvement in underperforming sectors and that global experience shows such measures can sometimes fuel inflation and create additional macroeconomic imbalances.

Zahid Hussain, former lead economist of the World Bank’s Dhaka office, described the package as a countercyclical measure typically suited to periods of weak demand and low inflation.

However, he said Bangladesh currently faces a more complicated situation, with slowing growth alongside persistently high inflation.

Under such conditions, he warned, additional stimulus may not necessarily increase output and could instead push prices up faster than production if supply-side constraints remain unresolved.

Bangladesh expects an off-the-cuff US$1.835-billion financing from the World Bank for use before the close of the current fiscal year to cushion the economy against mounting external shocks, sources say.Local investment guides
FE

Of the amount, the financier has proposed an emergency financing fund worth up to $250 million for Bangladesh government to tackle fiscal pressures stemming from the ongoing Middle East conflict.

The proposed emergency Investment Project Financing (IPF) would be financed through the reallocation of cancelled and uncommitted funds from five of ongoing or closing projects.

The projects include the Resilience, Entrepreneurship and Livelihood Improvement Project, Dhaka City Neighborhood Upgrading Project, Bangladesh Road Safety Project, Bangladesh Environmental Sustainability and Transformation Project, and Jamuna River Sustainable Management Project-1.

The proposed IPF is expected to be placed before the World Bank Board for approval by June 29, 2026, with disbursement likely to begin the following day, according to officials familiar with the developments.

The multi-sector package, now in an advanced stage of preparation, is intended to support macroeconomic stability, strengthen fiscal resilience, and ensure continuity in key financial-and energy-sector operations.

The government has made significant progress in advancing the FY26 financing pipeline following discussions held during the WB Group and IMF Spring Meetings, according to a recent letter addressed to the government.

The letter complements earlier correspondence dated May 5, 2026.Emerging market research

"We are pleased to observe significant progress on the FY26 pipeline thanks to the leadership of the Minister of Finance and Planning," the letter reads.

The letter mentions: "In sum, up to u$1.835 billion can be processed before the end of FY26."

According to an official communications between the WB and the Economic Relations Division (ERD), the financing programme combines emergency liquidity support with medium-term structural assistance.

The largest component of the package is up to $785 million under the Contingent Emergency Response Component (CERP) Rapid Results Option.

The government has already appointed a project director within the Finance Division and completed the omnibus amendment needed to repurpose funds from host projects for emergency expenditures.

The government is now preparing the CERP activation package, including a crisis action plan and procurement framework, to facilitate rapid fund utilisation.

Another major component is the Financial Sector Support Project-II worth US$450 million, aimed at strengthening financial-sector stability and reform initiatives.

Negotiations on the project concluded on May 11, with minutes signed the following day.Maps

An official says Bangladesh Bank (BB) has sought an additional $50-million allocation as the Deposit Protection Fund has already utilised around 90 per cent of its existing resources.

An addendum to the negotiation minutes is currently under preparation following approval from the finance and planning adviser, keeping the project on course for WB Board approval by June 23.

The pipeline also includes $350 million in additional financing for the Energy Sector Security Enhancement Project to help absorb global fuel-price volatility and support energy-supply security.

A high official concerned says the government has already provided feedback on the project paper and indemnity agreement, while the WB submitted the final project paper for senior management clearance on May 12.

The WB has stressed the need for parallel implementation measures to ensure timely release of the funds before the end of FY2025-26.

Under the proposed arrangement, the Finance Division will deploy experienced officials in procurement, financial management and safeguard compliance to meet the accelerated processing timeline, according to a senior official concerned.

Three private commercial banks — Mutual Trust Bank, Southeast Bank, and Trust Bank — have received formal approval from the Bangladesh Securities and Exchange Commission (BSEC) to disburse their declared stock dividends for the financial year ended 31 December 2025.

According to regulatory disclosures filed with the Dhaka Stock Exchange yesterday, the banks are utilising these stock issuances to strengthen their capital bases in alignment with Basel III requirements and to provide the necessary fiscal cushion for future business expansion.

These regulatory clearances allow the banks to convert retained earnings into equity paid-up capital, a strategic move often preferred by lenders to maintain high capital adequacy ratios while supporting larger credit portfolios.

Mutual Trust Bank received consent to issue a 12% stock dividend. The bank's financial performance for 2025 showed steady growth, with its consolidated earnings per share (EPS) rising to Tk3.14 from Tk2.93 in the previous year, while its net asset value (NAV) per share improved to Tk28.11.

The bank informed its stakeholders that it would soon re-fix and notify a new record date for dividend entitlement.

Southeast Bank secured the regulator's nod for a 7% stock dividend, which complements its 3% cash dividend recommendation. The bank recorded a sharp recovery in its bottom line, with consolidated EPS jumping to Tk2.51 in 2025 from just Tk0.32 in the preceding year. Its NAV per share also rose to Tk25.74.

The bank has scheduled 4 June as the record date for the stock dividend.

Trust Bank also obtained approval for a 5% stock dividend, having already recommended an 8% cash dividend for the same period. The lender reported a consolidated EPS of Tk3.38 and a NAV per share of Tk28.52 for the year. The record date for Trust Bank's dividend remains 11 June.

Trust Bank also obtained approval for a 5% stock dividend, having already recommended an 8% cash dividend for the same period. The lender reported a consolidated EPS of Tk3.38 and a NAV per share of

Tk28.52 for the year. The bank has scheduled 11 June as the record date for the stock dividend.

Chip giant Nvidia on Wednesday posted record quarterly revenue of $81.6 billion, blowing past Wall Street forecasts as insatiable demand for its artificial intelligence hardware powered another blockbuster quarter.

The results for the first quarter of fiscal 2027, ending April 26, marked an 85 percent jump from the same period a year ago and a 20 percent rise from the prior quarter, underscoring Nvidia’s status as the primary beneficiary of a global AI infrastructure buildout.

Net profit surged to $58.3 billion, more than tripling from $18.8 billion in the year-earlier period.

Nvidia’s data center business, which sells the processors powering AI systems at tech giants and technology companies worldwide, was the engine behind the quarter’s performance.

Data center revenue, which includes Nvidia’s key graphics processing units (GPUs), hit a record $75.2 billion, up 92 percent from a year ago.

A GPU is a specialized computer chip originally designed to render video game graphics at high speed, but Nvidia has since made it the engine powering artificial intelligence.

That pivot has made Nvidia the world’s most valuable company, on the back of huge demand for its AI hardware.

Demand for Nvidia products seems insatiable despite recurring talk on Wall Street that the AI spending spree could come to a halt.

Since its February earnings report, Nvidia has disclosed a $10 billion investment in Anthropic, a major deal with Meta, and a commitment to AI company CoreWeave targeting five gigawatts of AI facilities by 2030.

For the current quarter, Nvidia projected revenue of $91 billion, representing a further acceleration in growth.

Crucially, Nvidia said it was not assuming any data center revenue from China in its outlook, where its core product has been caught up in a geopolitical dispute between Beijing and Washington.

Nvidia boss Jensen Huang this week said he expected China to eventually open its market to high-end US chips that can train and run artificial intelligence systems.

The superpowers are in a fierce race for AI supremacy, and Nvidia’s H200 chip had until recently been barred from sale in China by Washington over national security concerns.

However, there is no sign that Chinese tech companies are buying them, as Beijing ramps up domestic chip development in a bid to challenge US dominance in the sector.

Investors shrugged off the results in the earnings report, with Nvidia shares down more than one percent in after-hours trading.

Bangladesh's state-owned enterprises (SOEs) drained nearly Taka 882 billion from the national exchequer in a single year, emerging as one of the country's biggest fiscal risks, according to a World Bank study.
FE

The study report highlighted that the deteriorating financial condition of public enterprises has become "unsustainable" at a time when Bangladesh is already facing falling revenue collection, slower economic growth and mounting pressure on public finances, BSS reports citing a press release.Personal finance courses

It said the growing losses of SOEs are consuming resources that could otherwise be invested in healthcare, education and social protection.

The findings were presented today at a dissemination workshop on the report titled "Financial Performance and Fiscal Risk of SOEs in Bangladesh" held at Pan Pacific Sonargaon in the city.

The study was conducted under the project on strengthening public financial management for better service (SPFMS), with the support of the Policy Research Institute (PRI) of Bangladesh.

According to the study, non-financial SOEs incurred a combined adjusted loss of Tk 441 billion in FY2024, while total net fiscal transfers from the government, including subsidies and development funding, climbed to around Tk 882 billion, equivalent to 1.7 percent of GDP.

Tanvir Ghani, Investment and Capital Market affairs Special Assistant to the Prime Minister, attended the workshop as the special guest.

Suraiya Zannath, Lead Governance Specialist, and team leader (SPFMS) WB, explained the context and objectives of the study and how the analysis will help frame policy and institutional reform.

Hasan Khaled Foisal, Additional Secretary, FD, delivered a presentation on the overview of SOEs, debt management and the macro-fiscal scenario, while Rahima Begum, Additional Secretary, FD, made the opening presentation highlighting the Public Financial Management Reform Strategy 2025-2030 relating to SOEs.

Henri Fortin, Lead Public Sector Specialist, WB, discussed international experiences of SOE reform and Immanuel Frank Steinhilper, Senior Governance Specialist, WB, presented global trends relating to SOEs.Economic trend analysis

Dr. Khurshid Alam, Executive Director, PRI, delivered the keynote presentation on the financial performance and fiscal risks of Bangladesh's SOEs.

The session was conducted by Mohammad Atikuzzaman, Sr. FMS, while Nazmus Sadat Khan, Economist, WB, delivered the closing remarks.

The study found that the energy and power sector accounted for the overwhelming majority of the losses.

The Bangladesh Power Development Board alone recorded losses exceeding Tk 444 billion in FY2024 due to high power generation costs, costly capacity payments to private power producers and electricity tariffs kept below production costs.

The report said politically influenced investment decisions, controversial contracts with independent power producers and weak corporate governance have severely undermined the sector's financial sustainability.

Other major loss-making entities include the Bangladesh Oil, Gas and Mineral Corporation, Bangladesh Rural Electrification Board, Trading Corporation of Bangladesh and several manufacturing corporations in the fertilizer, sugar and jute sectors.

The report observed that many manufacturing SOEs continue to incur persistent losses despite operating in competitive markets where private firms remain profitable. Local investment guides

The report also highlighted deep corporate governance weaknesses within Bangladesh's SOE structure.

It identified fragmented laws, bureaucratic control, weak oversight and lack of financial transparency as key reasons behind poor performance.

The report compared Bangladesh unfavorably with regional peers. While Bangladesh's SOEs posted a negative return on assets of 5.2 percent in FY2024, India's SOEs generated a positive return of 9.7 percent and Vietnam's recorded around 11.9 percent in recent years.

According to the study, Bangladesh could potentially mobilize more than Tk 1.2 trillion in additional fiscal resources if SOEs achieved a 10 percent return on assets and reduced their dependence on subsidies.

To address the crisis, the report recommended wide-ranging reforms, including restructuring commercially viable SOEs, introducing independent and professionally managed boards, strengthening financial disclosure requirements, reducing political interference and gradually opening monopoly sectors to competition.

It also suggested eventual privatization or closure of chronically loss-making enterprises that no longer serve strategic national purposes.

Oil prices gained more than 1 percent on ​Thursday, paring previous losses as investors monitored peace talks between the United States and Iran, while ‌supply tightness and US inventory drawdowns provided some support.

Brent crude futures rose $1.27, or 1.21 percent, to $106.29 a barrel by 0618 GMT, and US West Texas Intermediate futures were up $1.29 cents, or 1.31 percent, at $99.55.

Both benchmarks dropped more than 5.6 percent on Wednesday to their lowest in ​more than a week after President Donald Trump said talks with Iran were in the final stages, but ​also threatened further attacks if Tehran did not agree to a peace deal.

“The oil market remains overly sensitive to Iran-related headlines, with participants continuing to pin considerable hope on reports that talks ​between the US and Iran are progressing,” ING analysts said in a note on Thursday.

“We’ve been in this ​situation multiple times before, which ultimately led to disappointment,” they added, forecasting an average Brent price of $104 a barrel in the current quarter.

Iran warned against further attacks and unveiled steps entrenching its control of the crucial Strait of Hormuz, mostly closed, though before ​the war it had carried oil and liquefied natural gas shipments equal to about 20 percent of global consumption.

On ​Wednesday, Iran announced a new “Persian Gulf Strait Authority,” saying there would be a “controlled maritime zone” in the Strait of Hormuz.

Iran ‌effectively closed the strait in response to the US and Israeli attacks that started the war on February 28. Most of the fighting has stopped since an April ceasefire, but while Iran is limiting traffic through Hormuz, the US has blockaded its coastline.

Supply losses from the key Middle Eastern producing region because of the war have forced ​countries to pull from their ​commercial and strategic inventories ⁠at a rapid rate, raising concerns about draining them.

The US Energy Information Administration said on Wednesday the country withdrew nearly 10 million barrels of oil from its Strategic Petroleum ​Reserve last week for its biggest drawdown on record.

Underlining the impact of the ​supply disruptions in ⁠was EIA data showing a bigger-than-expected decline in US crude oil inventories last week.

“The drawdown in oil inventories will make it difficult for oil prices to remain low,” said Mingyu Gao, chief researcher for energy and chemicals at China Futures.

“With ⁠the ​Strait of Hormuz blocked, global refined-product and onshore crude inventories are ​expected to fall below their lowest levels for this time of year in the past five years by late May and late June.”

Commerce Minister Khandakar Abdul Muktadir has announced that the government is undertaking regulatory overhauls to simplify business operations, including cutting down licensing times, ensuring consistent energy supply, and introducing structural exit routes for businesses.

The minister also said investment is the sole driver of job creation, which cannot be forced by laws or administrative decrees but must instead be supported by market-friendly policies.

He made the remarks while speaking at a policy symposium titled "Post-Uprising Economy & Geopolitics of Budget: Reminiscing the legacy of M Saifur Rahman" at a hotel in Dhaka today (22 May).

Muktadir, also the minister for industries, textiles and Jute, said, "To start a business in Bangladesh, an entrepreneur currently requires 25 to 26 licenses, taking an average of 350 days. This exhausts entrepreneurs before they even begin operations."

He stated that under the guidance of the prime minister, the government is drastically reducing these overlapping processes, with the changes becoming physically visible.

"As part of the reforms, the trade license issuance process – currently scattered across thousands of decentralised local government entities – will be centralised."

Additionally, the process for obtaining Import Registration Certificates (IRC) and Export Registration Certificates (ERC) will move entirely online, allowing entrepreneurs to download certificates digitally without visiting physical offices, he added.

The commerce minister also advocated for a fundamental shift in how the state views business failures.

Highlighting the lack of viable exit routes for struggling enterprises in Bangladesh, he called for bankruptcy frameworks similar to Chapter 7 or Chapter 11 insolvency codes used in developed nations.

"A business failure is not a criminal offense; it must be treated as a business issue. While willful default and money laundering must face the strictest punishments, genuine business failures should not be criminalised," he said.

Addressing the ongoing energy crisis, the minister noted that fuel shortages and weak policy implementation have left the country's installed industrial capacity underutilised, which costs the economy potential percentage points in GDP growth.

The government is actively working to ensure uninterrupted fuel supplies to production units, he assured.

Muktadir also raised concerns over high bank interest rates, which currently range between 13% and 15%. He pointed out that such rates are unsustainable for Bangladesh's labor-intensive, low-capital manufacturing sectors that operate on slim profit margins.

"To support these industries, the government, under the leadership of the finance minister, is planning to launch a scheme to provide off-shore funds at more tolerable interest rates," he said.

The government may reduce Advance Income Tax (AIT) at the import stage on primary and intermediary raw materials and other industrial goods from the existing 5% to 4%, in a move aimed at easing pressure on businesses and encouraging investment.

The upcoming budget may also introduce a provision allowing businesses to claim refunds of excess advance tax deducted after a specified period. Although the current system allows tax adjustment, most businesses fail to recover the excess tax due to various procedural complexities.

Sources related to the National Board of Revenue (NBR) budget process said the initiative is primarily intended to reduce the tax burden on businesses and improve working capital flow.

A senior NBR official, speaking to TBS on condition of anonymity, said, "Industries importing goods under Industrial Import Registration Certificates (IRC), which currently pay 5% AIT in certain cases, may see the rate reduced to 4%.

"If implemented, this will provide relief to industrial entrepreneurs and reflects the current government's investment-friendly approach."

Business leaders have welcomed the initiative but argued that the AIT rate should be reduced further, saying the current structure is inconsistent with tax justice principles.

Mir Nasir Hossain, former president of the Federation of Bangladesh Chamber of Commerce and Industries (FBCCI), told TBS, "Reducing AIT would be a positive decision, but it is still not enough."

Explaining his position, he said, "AIT is deducted at the import stage. A business first imports goods, adds value, sells products and only then generates income, at which point taxation should apply. Deducting tax before any income is earned is not logical."

Taskeen Ahmed, president of DCCI, also welcomed the initiative but said the AIT rate should not remain as high as 5%.

"AIT should be capped at a maximum of 2% because not all businesses generate the same level of income," he told TBS.

However, both business leaders acknowledged that the proposed reduction would have a positive impact on business and investment.

Under Bangladesh's existing income tax law, advance tax deducted at the import stage can later be adjusted against actual profits. Businesses with higher profits pay additional tax, while those with lower profits are entitled to refunds. However, businesses must submit extensive documentation to claim refunds, and even after doing so, the money often remains stuck for years. In some cases, legal procedures prolong the process even further.

As a result, many importers do not attempt to recover the money and instead add the cost to product prices.

An importer of escalators and electrical products, speaking anonymously, told TBS, "Getting AIT refunds is extremely difficult in practice. So we treat the amount as a business cost and add it to the price of products."

He added that if the government reduces the rate, it would lower business costs and ultimately help reduce costs for consumers as well.

Experts and economists have urged the government to use the national budget for the next fiscal year as a strategic instrument to revive economic growth while maintaining macroeconomic stability, warning that Bangladesh’s economy remains under severe stress amid persistently high inflation, sluggish private sector credit growth, and rising fiscal pressure.Economic trend analysis
FE

Speaking on Thursday, they said the country’s macroeconomic condition continues to be fragile, with inflation remaining elevated for an extended period, private sector credit growth dropping to a record low, and fears mounting over a possible fiscal shortfall in the upcoming fiscal year.

They also recommended undertaking robust reforms to create the conditions necessary for expansionary fiscal and monetary policies, alongside ensuring stronger discipline and accountability in economic management to secure the best value for public money.

These observations came at the launch of the Monthly Macroeconomic Insights report titled “Restoring Growth through Productivity Reforms: Pre-Budget Priorities”, prepared by the Center for Macroeconomic Analysis (CMEA) of the Policy Research Institute of Bangladesh.

Fahmida Khatun, executive director of the Centre for Policy Dialogue (CPD), attended the event as the chief guest at the event at PRI office, while it was chaired by Zaidi Sattar, chairman of the PRI.

“The economy now stands at a crossroads. Growth has slowed significantly, investment momentum has weakened, inflation remains elevated, and vulnerabilities in the fiscal, financial, and energy sectors continue to constrain policy space,” said Zaidi Sattar at his opening remarks.

Macroeconomic stabilization alone will not be sufficient to restore high and sustainable growth, he said, adding that the economy now requires a new phase of productivity-enhancing reforms.Local investment guides

He proposed reforms in the fields of rationalizing gargantuan tariffs, revamping trade openness, improving the investment climate, reforming the energy sector, restructuring state-owned enterprises, promoting FDI, and investing in critical infrastructure.

Dr Ashikur Rahman, Principal Economist of PRI, presented the keynote at the event.

He said that a disciplined budget anchored in macroeconomic stability, combined with sustained productivity-enhancing reforms, remains the most credible pathway for restoring Bangladesh’s growth momentum in the current environment.

The economy is facing a tough crossroads with inflation still elevated, fiscal space increasingly compressed by rising interest payments, and financial sector vulnerabilities continuing to constrain effective credit transmission; the room for expansionary fiscal or monetary stimulus remains limited, he further stated.

The government is considering setting tax rates in a more predictable framework – long sought by local and foreign investors – with the upcoming budget expected to outline rates for up to five years.

The rates introduced in last year's budget were set for a two-year period, covering FY2026-27 and FY2027-28. This means the upcoming budget will provide an indication of tax rates for the next five years.

An NBR senior official involved in tax policy formulation, speaking on condition of anonymity, told The Business Standard that businesses have long demanded a predictable tax regime.

He said investors and businesses want certainty over tax rates for at least three to five years to support long-term planning. "This year, we may be able to indicate tax rates for the next five years."

The idea of a predictable tax system has been a long-standing demand from both local and foreign investors. The Foreign Investors Chamber of Commerce and Industry (Ficci), the country's largest foreign investor lobby group, has repeatedly called for a stable and forward-looking tax framework.

Debabrata Roy Chowdhury, director of legal and corporate affairs at Nestlé Bangladesh, described the initiative as a welcome step. He said foreign investors have long argued that tax rates should remain stable for at least five years to support investment planning.

"If we can know the tax rates for the next five years, it would certainly be an investment-friendly move," he told The Business Standard.

Businesses typically face uncertainty ahead of national budgets due to frequent tax changes, some of which can also affect income and expenditure from previous fiscal periods.

Snehasish Barua, tax expert and managing director of SMAC Advisory Services Limited, said the move towards predictability is positive and reflects a key demand from the business community.

However, he cautioned that predictability alone may not be sufficient to attract investment. "If higher tax rates are locked in under a predictable system, it will not be investment-friendly.

Global trends show tax rates are declining, and higher rates could discourage foreign investment," he said.

The US dollar firmed on Thursday but stayed below a six-week peak as hopes that Washington was nearing a deal with Tehran to end the war in the Middle East capped further rises.

US President Donald Trump on ​Wednesday said negotiations with Tehran were in the final stages, while also warning of further attacks if Iran does ‌not agree to a deal.

The dollar, often a safe haven for investors, firmed 0.1 percent against the yen to 159.060 yen after falling for the first time in eight sessions against the yen on Wednesday.

Bank of Japan policy board member Junko Koeda added a measure of support for the yen with hawkish comments on Thursday, saying in ​a speech that the central bank needs to continue to raise rates with underlying inflation already around a 2 percent target.

​The euro was 0.2 percent down at $1.160050, after dipping on Wednesday to its weakest level since April 7 at $1.1583 before bouncing back.

The euro dipped after French PMIs for May showed the economy contracting at its sharpest pace in five and a half years.

“Terrible French ​PMI ... but ECB seems determined to raise rates,” said Kenneth Broux, head of corporate research FX and rates at Societe Generale, to explain ​the negative euro.

Traders meanwhile are awaiting euro area composite PMIs for May which will hit screens this morning.

Sterling was down 0.1 percent at $1.3421.

The dollar index , which measures the currency against the euro, yen and four other rivals, rose 0.2 percent to 99.295, down from a peak of 99.472 on Wednesday, the strongest level since April 7.r

Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood Tuku on Friday (22 May) said the government will float an international tender next Monday for offshore oil and gas exploration, while an investment-friendly solar energy policy is expected to be unveiled by June.

Speaking at a policy symposium in Dhaka, he said the government is prioritising energy security through expanded exploration, structural reforms in the power sector and diversification into renewable energy sources.

Tuku said Bangladesh has not carried out meaningful offshore exploration for the past 17 years despite securing maritime boundary settlements.

"The last major offshore exploration initiative was undertaken in 1991 under the BNP government led by former prime minister Khaleda Zia, which later enabled ongoing gas production by Chevron," he said.

"We achieved victory in maritime boundary disputes, but we have yet to extract resources from the sea. To address this, we are floating an international tender for offshore exploration next Monday," he added.

The minister said the government is strengthening state-owned Bangladesh Petroleum Exploration and Production Company (Bapex) through the procurement of new rigs.

Acknowledging Bapex's lack of deep-sea drilling expertise, he said the company has been advised to participate in the upcoming tender through joint ventures with international oil companies to ensure Bangladesh retains a strategic stake in offshore resources.

Highlighting the government's clean energy agenda, Tuku said work is underway on solar, wind and waste-to-energy projects, with a new solar policy aimed at attracting investment expected by June.

He said high import taxes on battery storage systems remain a major obstacle for private investors in the renewable energy sector.

"The current tax structure on solar batteries is too high, discouraging investors. We are working with the finance ministry to resolve these tax and tariff issues," he said.

The government is targeting at least 5,000 megawatts (MW) of renewable energy generation by the end of its term, however, Tuku expressed hope that the figure could reach 10,000MW if implementation proceeds smoothly.

The world built and commissioned more coal power in 2025, but used the polluting fuel less, with the United States the only major economy to substantially increase generation, analysis showed Thursday.

Coal is a key contributor to planet-warming greenhouse gas emissions, and phasing it out is crucial to taming climate change.

The growing affordability and abundance of renewable energy means solar and wind power can now cover growing electricity demand in much of the world.

That helped push coal generation down globally by 0.6 percent in 2025 from a year earlier, according to a new report from Global Energy Monitor, which has tracked coal power for more than a decade.

But despite the generation drop, coal power capacity -- plants that came online or were commissioned -- jumped 3.5 percent last year.

The overwhelming majority of that -- 95 percent -- was in China and India, GEM said.

China’s coal capacity grew six percent last year, but coal-powered electricity generation fell 1.2 percent, in part because of soaring renewable capacity.

The same was true in India, where capacity grew almost four percent, even as generation fell nearly three percent.

In both countries, “many of the provinces and states leading coal development are major coal-producing regions”, said Christine Shearer, project manager of GEM’s Global Coal Plant Tracker and author of the report.

They have “strong industrial incentives to keep building coal”, she told AFP.

US ACTIVELY INCREASES COAL

China is the world’s top emitter, while India ranks third behind the United States.

Beijing sees coal as a reliable failsafe for intermittent renewable supply, particularly for after power shortages several years ago.

India, the world’s most populous country, is leaning heavily on coal to meet soaring electricity demand. But coal’s persistence is also the result of infrastructure issues.

Non-fossil fuels already account for 50 percent of India’s installed capacity, but infrastructure and other issues mean the country still generates around three-quarters of its electricity from coal.

Globally, the retirement of coal power also slowed last year, with nearly 70 percent of units that were due to end operations instead staying online, GEM said.

In Europe, those missed targets were linked primarily to decisions taken during the 2022-23 energy crisis caused by Russia’s invasion of Ukraine.

In the United States however, retirement delays were due to a government push for coal, said Shearer. “US coal-fired generation rose by more than 80 TWh (terawatt hours) year-on-year, a figure so large that no other country came close,” she said.

The surge “was not simply a function of (demand) growth, it reflected a policy environment that actively encouraged it,” she added.

COAL ‘FAVOURITISM’

The energy crisis sparked by the US-Israeli war with Iran has seen some countries turn back to coal, reactivating idle coal units or delaying retirements.

In China, coal-fired power generation also jumped in the first part of the year, in part due to “underperformance” by wind and nuclear.

“But the oversupply and favouritism of coal power is an important factor,” added Lauri Myllyvirta, co-founder of the Centre for Research on Energy and Clean Air, and contributor to the report.

While figures from May suggest China’s coal generation may have dropped again, “the problem of excess coal capacity and entrenched favouritism of coal in the grid remain”, he told AFP.

Globally, coal-fired generation has risen 0.3 percent so far this year, Shearer said, while wind and solar generation has jumped 10 percent.

“Clean energy is absorbing most of the world’s new electricity demand, with coal barely growing at all,” she said.

Wealthy countries topped their $100 billion annual climate finance goal for poorer nations for the third straight year in 2024, the OECD said today (21 May), but questions are growing over their ability to meet a new larger pledge.

Developed nations had long fallen short of their commitment to mobilise $100 billion a year by 2020, finally hitting the target for the first time in 2022 after the deadline was extended to 2025.

The money is aimed at helping developing countries, which are least responsible for global warming, invest in renewable energy and cope with the worsening impacts of climate change.

After providing $115.9 billion in 2022, wealthy countries sharply raised their contribution to $132.8 billion in 2023, according to the Organisation for Economic Cooperation and Development, which tracks the figures.

It increased slightly in 2024 to $136.7 billion.

Climate finance can come from governments in the form of bilateral aid, multinational development lenders like the World Bank, or the private sector.

Public climate finance slipped 2.6 percent to $101.6 billion in 2024 but private sector contributions surged 33 percent to $30.5 billion.

The OECD said the data needed to produce figures for 2025, the last year of the $100 billion pledge, would not be available before 2027 "at the earliest".

Raphael Jachnik, who led the report at the OECD, told AFP the dip in bilateral public finance partly reflected a return to more normal trends after a sharp rise in 2023.

- Trump guts aid programmes -

Climate finance has been a thorny issue at annual UN climate talks, as developing nations grew frustrated with the developed world for dragging its heels to fulfil its pledges.

Richer nations committed to a new goal at the UN COP29 summit in Azerbaijan in 2024, pledging to provide $300 billion a year by 2035 -- an amount still considered insufficient by developing nations.

They also set a less specific target of helping raise $1.3 trillion annually from public and private sources.

Jachnik said the international context "raises more fundamental questions" about the new $300 billion target.

US President Donald Trump, a climate sceptic who returned to office last year, pulled the world's richest country out of climate diplomacy and gutted its foreign aid programmes.

The European Union, the biggest contributor to climate finance, is under budget strains and seeking to ramp up military spending amid the wars in Ukraine and the Middle East.

Turkish Climate Minister Murat Kurum, who will chair the COP31 climate summit hosted by his country in November, said Wednesday that he would "hold donors accountable for the commitments they made under the $300 billion Baku finance goal".

"It is easy to say we support global climate action. But promises must be kept," Kurum said in a speech at a climate ministerial meeting in Copenhagen.

Western nations have pushed to broaden the contributor base to include countries that are still listed as developing but have now become wealthy, such as China and Saudi Arabia.

Developed countries, which are facing their own budget constraints and debt problems, have also insisted that the private sector play a bigger role.

- 'Total scandal' -

Asia was the main target of climate finance contributions in 2024, with 36 percent, followed by Africa at 31 percent.

As in previous years, most public climate finance took the form of loans in 2023 and 2024, accounting for 73 percent and 67 percent of the total respectively, according to the OECD.

Developing countries have argued that climate finance should come in the form of grants, as loans compound their debt problems.

"The rich world profits from the loans they provide to poor countries who are desperately trying to deal with climate change caused by the rich world. It's a total scandal," said Mohamed Adow, director of the Nairobi-based climate think tank Power Shift Africa.

"The countries least responsible for the climate crisis are being asked to take on debt to survive it," he said.

As the national budget for fiscal year 2026–27 is set to be placed amid rising global uncertainty, Bangladesh Institute of Development Studies (BIDS) Director General (DG) Dr AK Enamul Haque has stressed that the country's top economic priority should be the systematic implementation of the government's election commitments while simultaneously preparing for emerging global risks.

In an exclusive interview with BSS ahead of the upcoming national budget to be placed in the Jatiya Sangsad next month, he said, "One major issue is implementing the government's election manifesto. The commitments made to the people for the next five years should begin to be implemented systematically."

Dr Enamul warned that the ongoing conflict in the Middle East could trigger a fresh global food crisis and place additional pressure on Bangladesh's economy through rising commodity prices and supply disruptions.

"As a result of the war, global food shortages are likely to increase. Bangladesh must prepare in advance," he said.

Dr Enamul emphasised that the budget should allocate sufficient resources for government-led food procurement and imports to maintain adequate domestic supply and stabilise prices.

"The government should maintain strategic food stocks under its own supervision. If supply does not increase, inflationary pressure will worsen," he said.

He argued that relying only on cash assistance would not be enough in the current situation, as shortages in food supply could continue pushing prices upward.

"If there is not enough food in the market, simply providing money will not solve the problem," he added.

The noted economist also urged the government to prepare contingency plans for Bangladeshi migrant workers who may return from Gulf countries, especially from the United Arab Emirates (UAE), if regional instability deepens.

"There should be budgetary preparation for their rehabilitation through easier access to loans so they can start small businesses or income-generating activities after returning home," he said.

Highlighting climate-related vulnerabilities, Dr Enamul said Bangladesh must increase support for rural populations affected by heatwaves, flash floods, and crop losses, especially in haor regions.

He proposed expanding support for duck farming, cattle rearing, and livestock-based activities in flood-prone areas to create alternative sources of income for farmers.

"Haor farmers depend on a single crop. If that crop is destroyed, they lose income for the entire year. Alternative income sources are essential," he said.

While supporting temporary cash assistance for disaster-hit populations, he cautioned that excessive dependence on cash transfers without increasing food supply could intensify inflation.

The BIDS DG also stressed the importance of expanding the government's Open Market Sales (OMS) programme and improving food assistance for vulnerable groups.

"If rice and lentils are supplied through OMS, eggs should also be included to ensure balanced nutrition and support domestic producers," he said.

Referring to growing food insecurity risks, he cited international warnings that several countries could face famine-like conditions if the global situation deteriorates further.

"Bangladesh must prepare now because food insecurity is becoming a concern," he added.

Dr Enamul further suggested that the government expand the use of farmer cards and family cards to streamline social protection programmes and agricultural support.

"If agricultural inputs such as fertiliser and pesticides can be supplied at lower prices through farmer cards, it will help increase production," he said.

He also recommended integrating multiple welfare programmes under a unified family card system to improve accountability and reduce misuse.

"About 20% of the population already receives some form of government support. If these programmes are integrated strategically, fiscal pressure will not increase significantly," he noted.

On external trade strategy, Dr Enamul stressed that Bangladesh should strengthen economic integration with Asian economies as geopolitical tensions continue affecting European and Middle Eastern trade routes.

"Asia is still relatively neutral in the current conflict situation. Bangladesh should focus more on increasing exports to Asian markets, including India," he said.

He added that the FY27 budget should focus more on building long-term economic foundations rather than launching excessively ambitious projects.

"The main objective should be to maintain economic growth momentum and prepare the foundation for the next five years," he said.