The government is likely to reintroduce a provision allowing the legalisation of undisclosed income through investment in selected sectors in the national budget for the next fiscal year.

The proposed amnesty scheme will include disclosure conditions, a finance ministry official said yesterday.

Speaking on condition of anonymity, the official said taxpayers may be allowed to regularise undisclosed funds by investing in designated sectors, provided they declare the actual transaction value in income tax returns filed by both buyers and sellers.

“Taxpayers can legalise their income by paying their regular rate in any assessment year in certain sectors, without any concessional treatment,” said the finance ministry official.

The Awami League government previously allowed taxpayers to legalise undisclosed assets by paying a flat 15 percent tax rate. Under that arrangement, individuals could declare previously undisclosed money in any assessment year by paying the specified rate, after which no government agency would question the source of the income.

But the proposed provision this time will introduce changes to that approach, said the official.

According to him, taxpayers will not be offered a single flat rate for regularising undisclosed income. Instead, in cases involving such undeclared gains, both buyers and sellers will be required to adjust their declared income and reflect the actual transaction values in their tax returns.

He added that structural inefficiencies in parts of the economy often lead to portions of income or capital gains remaining undeclared, and the government wants to provide an opportunity to adjust such income to encourage productive investment.

He also said the prime minister has, in principle, approved the proposal on May 14, with the expectation that it could help accelerate investment flows.

The official argued that the measure is intended to broaden the tax base and formalise informal capital, rather than offer a blanket waiver or reduced tax rate, as seen in previous amnesty schemes.

The move comes amid ongoing debate in policy circles over how to address large volumes of undisclosed income generated through property transactions, especially in land, flats and commercial real estate, where significant gaps often exist between market prices and declared deed values.

However, the proposal has already drawn criticism from economists and tax experts, who say repeated regularisation windows risk weakening compliance and discouraging honest taxpayers.

National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan recently reiterated that the tax administration is moving away from concessional whitening schemes that allowed undeclared income to be legalised at reduced rates.

“We want to say that anyone can disclose undisclosed income in their tax records by paying taxes according to the existing rates. In fact, we would welcome that,” he said during a pre-budget discussion.

Criticising past practices, he added that successive amnesty schemes over the past five decades had “ultimately backfired”, as they discouraged compliant taxpayers and distorted tax culture.

“We want to move away from this culture,” he said, adding that individuals who evaded taxes in the past should not be incentivised with lower rates.

“At the very least, you must pay the regular tax,” he said.

A candid admission comes from the finance minister that many well-established companies are facing acute capital shortages, in a crunch he attributes to lack of "fair competition" and governance gaps.
FE

"Many big companies and banks are in serious capital shortage," Finance and Planning Minister Amir Khosru Mahmud Chowdhury said Wednesday while speaking as chief guest at the inaugural session of the first-ever Financial Accounting and Reporting (FAR) Summit held at a city hotel.

The summit was jointly organised by the Financial Reporting Council (FRC), the Institute of Chartered Accountants of Bangladesh (ICAB) and the Institute of Cost and Management Accountants of Bangladesh (ICMAB).

Turning to the predicament of banking sector, the finance minister said the current financial strain reflected deeper structural weaknesses, including distorted lending practices within banks.Bangladesh economic report

"Depositors keep money in banks, and loan approvals were often influenced by board-level decisions," he points out, adding that auditors should adopt stronger "self-regulation" to ensure transparency.

He stresses full transparency and accountability for restoring investor confidence and achieving long-term economic stability in the country.

"Bangladesh is now at a crossroads and all depend on the institutions," the finance minister implicitly reminds about the transition following political upheavals.

Mr. Chowdhury notes that the Financial Reporting Council would continue to exist but should focus on supervision and monitoring rather than direct enforcement alone.

"Every day, fund managers are contacting us-from Hong Kong, London, even JPMorgan. But if foreign investors see that our accounting is not up to international standards, they will be discouraged," he told the meet.

The minister also recalls delegating authority for issuing export-utilisation certificates to Bangladesh Garment Manufacturers and Exporters Association (BGMEA) during his tenure as commerce minister in a previous BNP government, and says the move had improved governance after earlier allegations of corruption at the Export Promotion Bureau.Financial literacy course

He strongly feels that Bangladesh needs a financial system built on institutional integrity.

"The current government wants a system of complete transparency and accountability."

The new custodian of exchequer alerts that Bangladesh's economic future depends on institutions such as FRC, ICAB and ICMAB. "No regulator can identify every mistake daily. Accountants and professional bodies must take the lead in self-regulation."

Mentioning that institutions have weakened over time due to past "governance failures", the minister alleges that financial irregularities and bank fund diversions were often linked to misleading accounts.

"Many companies listed on the capital market used false information. Investors were misled," he deplores.

Prime Minister's Finance and Planning Adviser Prof Rashed Al Mahmud Titumir, speaking as special guest, said weak auditing practices had contributed to financial-sector instability.

"In many cases, audit firms have become their own judges," he said through online platform, adding that regulatory gaps had deepened banking-sector vulnerabilities.Economic trend analysis

He says investors had suffered significant losses due to misleading financial statements, while banks had extended large loans based on inaccurate reports that later turned into defaults.

BGMEA President Mahmud Hasan Khan told the meet that out of 7,200 registered member-organisations only around 2,500 were now active, largely due to poor accounting practices.

"Inflated accounts can destroy organisations," he notes, adding that discrepancies between assets and liabilities were a common concern in the sector.

He also warns that lack of transparent accounting discouraged foreign buyers and reduced competitiveness in export markets. Chairman of FRC Md Sajjad Hossain Bhuiyan presented the keynote paper, titled 'Reliable Financial Reporting: Where Does It Really Matter?'

Finance Secretary Dr Khairuzzaman Mozumder chaired the inaugural session. ICAB acting president Rokunuzzaman and ICMAB president Kauser Alam also spoke at the event.

The summit featured two technical sessions attended by CFOs, auditors and policymakers from leading institutions.

Major banking scandals, market manipulation, and financial misreporting have created severe capital shortages in banks and the private sector, Finance Minister Amir Khosru Mahmud Chowdhury said yesterday.

Addressing the “Financial Accounting and Reporting (FAR) Summit 2026” as chief guest at the Pan Pacific Sonargaon Dhaka, he said financial discipline in the banking and capital market sectors has not been restored despite repeated scandals.

He alleged several companies entered the stock market using false representations, which has discouraged strong firms from getting listed and weakened fair competition and price discovery.

Khosru, also the planning minister, said economic management institutions in Bangladesh have become increasingly ineffective, with accountability and monitoring systems failing to function properly.

He noted that regulatory bodies, including the Financial Reporting Council (FRC), play a vital role in ensuring transparency in corporate reporting, but said the overall governance ecosystem has weakened since the council’s establishment in 2015.

He warned against a culture of shareholders treating banks as personal property, despite banks operating mainly with depositors’ funds.

He stressed the need for a transparent and accountable financial system where regulators, institutions, and professional bodies properly discharge their responsibilities.

Referring to the self-regulation model of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) in issuing exporters’ utilisation certificates, he said similar accountability mechanisms are needed in accounting, auditing, and financial reporting.

The minister said Bangladesh is attracting strong interest from international investors and global fund managers, particularly in bonds and other instruments.

However, he said such investment depends on confidence in the country’s financial reporting, auditing, and governance systems.

He urged regulators and stakeholders to work together to establish global-standard practices and restore investor trust.

Virtually addressing the event, Rashed Al Mahmud Titumir, finance and planning adviser to the prime minister, said past failures in auditing and financial oversight were driven by weak standards, lack of accountability, and conflicts of interest, where audit firms effectively acted as their own regulators.

He said unreliable financial reporting, manipulated valuations, and weak regulation had pushed the banking and capital market sectors into crisis, resulting in loan defaults, instability, and repeated scams.

He added that thousands of small investors lost money due to misleading financial statements of listed companies, while honest entrepreneurs were disadvantaged as dishonest firms attracted investment by showing inflated profits.

He called for stronger regulation, greater independence and authority for the FRC, stricter punishment for fraudulent reporting, and adoption of international standards to restore investor confidence and strengthen economic governance.

Mahmud Hasan Khan Babu, president of BGMEA, said audit reports often failed to reflect the true condition of banks despite serious sectoral weaknesses.

He said asset quality reviews later exposed multiple irregularities, highlighting major gaps in financial reporting accuracy.

He added that poor reporting led to loans being granted to unqualified borrowers, while viable businesses struggled to obtain financing.

He also noted inconsistencies where companies showed strong financial positions to banks but reported losses to tax authorities, creating challenges in tax compliance and loan recovery.

Md Sajjad Hossain Bhuiyan, chairman of the FRC, presented the keynote paper at the event. The inaugural session was chaired by Md Khairuzzaman Mozumder, secretary of the finance division.

The summit was jointly organised by the FRC, the Institute of Chartered Accountants of Bangladesh, and the Institute of Cost and Management Accountants of Bangladesh.

The country's private sector credit growth fell to a historic low of 4.72% in March this year, reflecting weak business confidence, slowing investment and mounting uncertainty in the economy.

Economists and bankers said political uncertainty eased somewhat after the February election, but the deeper problems discouraging investment and new business activity remain unresolved.

In addition, the fuel crisis emerged as another contributing factor in March, leading to a sharp slowdown in bank lending growth compared with previous levels, they said.

Private sector credit growth had been declining steadily in recent months, falling from 6.58% in November 2025 to 6.20% in December, and then to 6.03% in both January and February 2026, before dropping sharply in March, central bank sources confirmed.

Outstanding loans to the private sector stood at Tk23.35 lakh crore in March 2026, according to Bangladesh Bank data.

Speaking to The Business Standard, Mustafizur Rahman, distinguished fellow at Centre for Policy Dialogue, said, "The major trend indicates that it is not increasing. Both necessary and sufficient factors are at work here."

"The necessary factor is political stability, which has improved somewhat after the election. But the sufficient factors – such as the cost of doing business, inflation, logistics policies and several other issues – have not seen any major changes."

He said the energy crisis added further pressure in March. "These problems already existed, and energy became an additional challenge. Inflation, the cost of doing business and other factors have created uncertainty," he added.

The Bangladesh Bank has been publishing private sector credit growth data since 2003. A review of the data shows March recorded the lowest growth in the past 24 years.

A deputy managing director of a private bank told TBS that many businesses shut down after the fall of the Awami League government, while others are operating far below capacity.

He said several factories owned by large business groups, including Nassa Group, Beximco Group and Gazi Group, had closed, reducing demand for bank borrowing. "When factories were operational, they imported capital machinery. But even the firms still running have reduced production by 60-70%," he said.

Bankers question BB's policy direction

Several managing directors of private banks told TBS they remain unclear about the central bank's policy direction in dealing with the current economic challenges.

Bankers said lending decisions depend heavily on broader policy clarity, including interest rates, exchange rates and inflation trends. They explained that when businesses seek loans for new investments or ventures, banks assess the overall policy environment, borrowing costs and the likely movement of the US dollar before approving financing.

One private bank managing director said the governor had spoken about lowering lending rates, but questioned how feasible that would be at a time of high inflation.

He also criticised Bangladesh Bank for holding the dollar exchange rate at Tk122.75 despite pressure on the local currency. Another MD said the central bank's decision to cap trade finance interest rates at 3% during a crisis period had created concerns.

He noted that the cost of foreign borrowing currently stands at SOFR plus 2.5%, while the additional cap on UPAS financing – a foreign currency-based import financing system – would further limit financing opportunities.

"If financing through UPAS becomes difficult, banks will have to lend in local currency at interest rates of 12-13%. The central bank believes this will increase credit growth, which is why rates on trade finance have been lowered. But this decision is not correct – it is a mistake," he said.

Another bank MD said businesses and banks remained uncertain about the central bank's main priority – whether it was controlling inflation, lowering interest rates or boosting GDP growth.

"There were expectations that many new projects would emerge after the election, but that has not happened," he said.

He added that the government's heavy borrowing from banks because of a revenue shortfall could further increase interest rates and crowd out private sector borrowers. "There is also uncertainty over where the exchange rate will stand in the next six months," he said.

Another bank MD said many large corporate firms had sought policy support from the central bank, signalling financial distress. "When companies need policy support, banks become less willing to finance them. It also becomes very difficult for those firms to make new investments or expand business operations," he said.

Banks shift towards government securities

With demand for private sector loans weakening, banks have increasingly turned to treasury bills and bonds for income.

A senior official at a private bank said lenders were moving towards safer government securities amid weak private investment.

At the same time, the government has been borrowing heavily from banks through treasury bills and bonds, including an additional Tk10,000 crore outside the regular borrowing calendar during the October-December quarter.

Limited opportunities for private investment have allowed banks to earn nearly 11% interest on what are effectively risk-free government securities. For many conventional banks, a growing share of income now comes from this segment.

Despite concerns at the start of 2025 over rising deposit rates, high inflation, political uncertainty and weak loan demand, stronger private banks have posted higher profits largely through earnings from government securities rather than loan expansion.

Bangladesh Bank data showed the government collected Tk33,000 crore through treasury bills in March this year. In April, the amount rose 39% month-on-month to Tk46,000 crore.

Of that amount, Tk32,800 crore was used to repay liabilities from previously issued treasury bills, leaving the government's net borrowing through treasury bills at Tk13,200 crore in April.

Listed companies in Bangladesh may soon have to overhaul their boards under rules that would limit independent director tenures, bar executives from holding dual roles and give the securities regulator direct power to remove directors.
The changes have been proposed in the draft “Bangladesh Securities and Exchange Commission (Corporate Governance) Rules, 2026” published by the commission for stakeholder feedback recently.
The draft, open for comments until May 31, would replace the existing corporate governance code with a more comprehensive rule-based framework, tightening oversight over board composition, executive appointments, subsidiary operations and documentation requirements.

INDEPENDENT DIRECTORS
Some of the major proposed changes relate to independent directors.

The draft states that an independent director can serve a maximum of two consecutive three-year terms, after which a three-year gap is required before reappointment.

The post of independent directors cannot remain vacant for more than 90 days, it also states.

The BSEC has also proposed giving itself direct authority to directly remove independent directors found to pose “a risk to the future of the company.”

The commission may make a pool of eligible candidates for independent director positions, with remuneration governed by board-approved policy and specified in appointment letters, according to the draft.

Independent directors must have at least 12 years of cumulative experience across business, corporate, government offices, academic or professional fields. However, female independent directors would need at least eight years.

BOARD AND TOP MANAGEMENT

The draft rules require that boards include at least one female director – a directive the BSEC has been pushing for years.

In a bid to strengthen separation of powers, the proposed rules mandate that the chairman and managing director or CEO must be different individuals .The chairman must also be elected from among non-executive directors.

Any director of a stock exchange, depository, central counterparty, stockbroker, stock dealer or merchant banker — except an independent director representing a holding company — would be ineligible to serve on the board of a listed company.

Under the proposed rules, a CEO or managing director of a listed company cannot simultaneously hold the same position at another listed company.

The posts of CEO, company secretary, chief financial officer (CFO) and head of internal audit and compliance must each be held by separate individuals. In addition, none of them can hold executive positions at another company concurrently, though the commission may allow CFOs or company secretaries to serve within group companies under certain conditions.

The draft rules also state that no top executive can be removed without board approval and immediate disclosure to the commission and stock exchanges.

AUDIT COMMITTEE AND GOVERNANCE

The audit committee must meet at least four times a year and include at least one financially literate independent director with a minimum of 10 years of accounting or financial management experience.

The BSEC has further proposed stronger documentation requirements for board and shareholder meetings.

The draft rules state that companies must preserve board and shareholder meeting minutes permanently, record online participation details and formally document dissenting opinions. Directors whose objections are not recorded in minutes can file complaints with the commission within 30 days.

All listed companies must arrange governance programmes for directors within one year of the rules taking effect. Newly appointed directors may also be required to complete certification programmes from institutions recognised by the commission.

The new rules will apply to all companies with ordinary shares listed on the main board, the SME board and alternative trading board of the stock exchanges, as well as any public interest entity.

SUBSIDIARIES

The rules propose tighter oversight of subsidiary companies as well.

At least one independent director from the holding company — preferably the chairman of the audit committee — would have to sit on the board of the subsidiary company.

Holding company boards and audit committees would also be required to review subsidiary affairs, investments and inter-company transactions.

The regulator will review the feedback before finalising the framework.

In Bangladesh today, the greatest struggle for ordinary citizens is no longer political uncertainty; it is economic survival. For millions of families, the daily challenge is not debating national issues but simply affording basic necessities. A visit to any local market reveals the reality: middle-income families are cutting back on groceries, while low-income households are struggling to afford even the most essential items.

At such a critical moment, the proposal by the National Board of Revenue (NBR) to increase the source tax on essential commodities from 0.5 percent to 1 percent raises serious concerns. The proposed tax hike would affect key everyday goods such as rice, pulses, edible oil, and fruits. While the increase may appear marginal on paper, its consequences in Bangladesh’s fragile market structure could be far-reaching.

In theory, a 0.5 percent increase may seem insignificant. In practice, however, additional taxation rarely remains confined to importers or wholesalers. Importers pass the extra cost on to wholesalers, wholesalers shift the burden to retailers, and retailers ultimately transfer it to consumers. In economic terms, this is known as cost pass-through, and in Bangladesh, the final burden almost always falls on ordinary citizens — basically, the final consumers.

At a time when inflation continues to erode purchasing power, such a move risks deepening public hardship. Inflation in Bangladesh is no longer an abstract economic indicator; it is a harsh daily reality. Families that once managed their monthly budgets comfortably are now forced to cut spending before the month ends. Many households have reduced their consumption of fish, meat, and fruits, while others are struggling to maintain basic nutrition.

The most troubling aspect of this proposed tax increase is that it targets essential goods — items people cannot simply stop buying. Rice, pulses, and cooking oil are not luxury products; they are necessities. Economists describe these products as having “inelastic demand,” meaning consumers must continue purchasing them even when prices rise. As a result, higher taxes on these items disproportionately hurt lower- and middle-income families.

Such decisions not only create economic pressure but also carry political repercussions because ordinary people determine a large part of their satisfaction or dissatisfaction with the government based on their everyday experiences. When people see that their incomes are not increasing but their daily expenses are rising, questions about the government’s economic management naturally emerge.

History has repeatedly shown that prolonged increases in living costs create widespread social stress and public dissatisfaction. It has been observed in various countries that a prolonged rise in commodity prices creates stress in the daily lives of ordinary people and increases expectations from the government.

In Bangladesh too, people naturally want the government to play an effective role in controlling the market situation and keeping the prices of essential commodities at a tolerable level. Therefore, it is important to consider the purchasing power of the general public and the overall market reality when making such decisions in the current situation. Timely and people-friendly measures can strengthen public trust in the government.

This expectation becomes even more significant considering the government’s repeated commitments to building a just, humane, and prosperous Bangladesh — often referred to as “Bangladesh First” — by reducing poverty, strengthening social protection, and improving living standards. Election promises emphasized lowering the cost of living and creating a more efficient market system. Yet imposing additional taxes on basic necessities appears inconsistent with those commitments.

Certainly, taxation remains essential for any government. Revenue is needed to fund infrastructure, education, healthcare, and social welfare programmes. However, an important question must be asked: should revenue generation come at the expense of ordinary people’s kitchens?

Bangladesh has long faced allegations of large-scale tax evasion, loan defaults, illicit financial outflows, and administrative inefficiencies involving billions of taka. If the government chooses to increase taxes on basic goods without taking stronger action against major tax evaders and financial irregularities, it risks reinforcing public perceptions of inequality and unfairness.

Consumer confidence remains a critical driver of economic growth. When households have less disposable income, demand declines, small businesses suffer, and economic activity slows. While taxing essential goods may generate short-term revenue, it could create long-term economic and political costs.

The responsibility of a government extends far beyond revenue collection; it must also safeguard the welfare and dignity of its citizens. At a time when many families are already struggling with rising living costs, imposing additional financial burdens through higher taxes on essential commodities is both economically questionable and socially insensitive.

Instead, policymakers should prioritize broadening the tax base, curbing wasteful public expenditures, addressing tax evasion, and strengthening market regulation to ensure greater efficiency and fairness in revenue generation.

The success of a government should not be assessed solely through large-scale infrastructure projects or ambitious development agendas. It must also be measured by its ability to reduce the everyday hardships faced by ordinary citizens. The proposed increase in source tax on essential goods is not merely a fiscal measure; it carries significant implications for household affordability, market stability, and public confidence in government policies.

Given Bangladesh’s current economic challenges, the need of the hour is to identify alternative revenue streams and implement meaningful reforms in market governance without placing further pressure on low- and middle-income households. Development, in its truest sense, should improve the quality of life for citizens, not make it more difficult.

Rather than strengthening the capital market, the government is playing its habitual game of relying on banks for business financing.

This is evident in the central bank's latest decision to expand the single borrower exposure limit from 15 per cent to 25 per cent of a bank's capital.

The suspension of the effectiveness of the previous 15 per cent limit until June 2028 is feared to discourage new listings of companies from large conglomerates.

"The expansion of the exposure limit is a repetition of the same mistake that led to a systematic damage to the financial ecosystem," said Md. Ashequr Rahman, managing director of Midway Securities.

Long-term financing through banks has continued over the years against short-term deposits, which has proved to be disastrous for the banking sector after a substantial amount of loans turned sour.

Before the last national election, key representatives of the BNP said they, if voted to power, would prioritise the capital market instead of the money market in financing.

In November last year, BNP leader Amir Khosru Mahmud Chowdhury, the incumbent finance minister, said at the Bangladesh Economic Summit that the party would put emphasis on energizing the capital market to lessen pressure on banks.Bangladesh travel guide

"We don't want to go to banks that are overused. We want to make the capital market vibrant and we're very serious about it," said Mr Chowdhury at the time.

The ruling party's election manifesto also included plans for the development of the capital market.

"All political parties spoke about a free economy, but eventually they preferred a managed economy after assuming office," said Mr Rahman while speaking with The FE over the phone on the latest policy of the Bangladesh Bank.

The change has been brought apparently to ease financial stress of the borrowers amid economic volatility.

With the high non-performing loan (NPL) ratio, however, the banks will face mounting pressure.

The overall banking sector's NPL ratio stood at over 30 per cent in December last year and deposits grew at a rate of 11.28 per cent year-on-year in February this year.

The deposit growth has not created enough room for fresh lending.

A lender having a 30 per cent NPL ratio means it has to serve purposes worth Tk 100 by Tk 70.

On receipt of fresh deposits worth Tk 11.28, the bank will be able to do the same job with Tk 81.28. Still, there is a shortfall of Tk 18.72. Besides, fresh deposits come with fresh interest liability.Global economy overview

The bank would have been in a better situation in terms of liquidity and for fresh lending had the deposit growth been at least equivalent to the NPL ratio.

In a situation like this, the expansion of the single borrower's exposure limit is not conducive to creating a healthy financial ecosystem.

Mr Rahman, of Midway Securities, said the BB decision is aimed at easing financial stress of business groups but they will borrow money from banks to execute long-term plans. "Will the central bank be able to restore the previous 15 per cent limit after two years?"

In the pre-budget meeting held between the National Board of Revenue (NBR) and stakeholders of the capital market, it was discussed that the companies that would exhaust a certain limit of credit must go to the capital market to raise more capital and that money could be raised through both equity and debt instruments.

After the promise of prioritising the capital market by the government and subsequent discussions in this regard with the revenue board, the central bank expanded the single borrower exposure limit.

Stakeholders of the capital market said both the securities regulator and the central bank are regulatory bodies. But the central bank enjoys the authority to take decisions without consulting other regulators.

On the other hand, since its inception in 1993, the Bangladesh Securities and Exchange Commission (BSEC) has failed to establish its importance before the government and other regulatory bodies.

Alongside the failure of the BSEC, stock exchanges and professional bodies of the capital market have also been unable to play any role in bringing good companies, which heavily rely on bank financing, to the secondary market.

The government is considering the introduction of a refund mechanism for excess minimum tax paid by companies if the amount cannot be adjusted against future profits within a specified period – a move aimed at improving tax fairness and easing a major concern among domestic and foreign investors.

Officials at the National Board of Revenue told The Business Standard that the proposal, likely to be included in the upcoming national budget, would allow business entities to claim refunds of excess minimum tax after three years if they fail to offset the amount against future taxable income.

A senior NBR official, speaking on condition of anonymity, said, "We have long felt that a non-refundable minimum tax system conflicts with international standards and the principles of tax justice. The upcoming budget will contain a positive development in this regard."

Another official said companies would become eligible for such refunds after a set timeframe, which is currently being considered at three years.

"The refund process will be handled through an automated faceless system. Representatives of companies will not need to visit tax offices. Refunds will be automatically credited to their bank accounts," the official added.

Officials also said the NBR plans to strengthen compliance systems and data integration before implementing the refund mechanism to prevent abuse by non-compliant taxpayers.

Welcoming the move, business leaders and tax experts said the proposed reform could significantly improve Bangladesh's investment climate by reducing capital erosion caused by turnover-based taxation.

Under the existing system, companies are required to pay minimum tax based on turnover or gross receipts, regardless of whether they make a profit or incur losses. Businesses have long argued that the inability to recover excess minimum tax has sharply increased their effective tax burden, despite reductions in statutory corporate tax rates in recent years.

Bangladesh currently has around 3 crore registered business entities, although only about 30,000 submit tax returns, according to NBR officials. Minimum tax rates on company turnover range from 1% to 3.5%, while more than 30 other categories of taxpayers are also subject to minimum tax on gross receipts, with rates reaching as high as 20%.

Last year's budget allowed companies to carry forward excess minimum tax for adjustment against future tax liabilities. However, businesses argued that the provision offered little practical relief for firms facing prolonged losses or persistently low profit margins.

Concerns over effective tax burden

Corporate tax rates in Bangladesh have been reduced by nearly 10 percentage points over the past several years. Non-listed companies currently pay 27.5% corporate tax, while listed firms pay between 22.5% and 25%.

Despite these cuts, business groups have argued that high minimum taxes and the absence of refunds have pushed effective tax rates to nearly 50% in some cases.

Minimum tax was first introduced in Bangladesh in the fiscal 2012-13 to address widespread tax evasion among companies that repeatedly declared losses. NBR officials said about 60% of the income tax currently collected is collected as minimum tax.

Former NBR member for income tax policy Syed Md Aminul Karim said the system was originally introduced because the tax authority lacked the capacity to detect profit concealment effectively.

"Many companies used to show losses year after year to evade taxes. Since it was difficult for the NBR to uncover such evasion, the minimum tax system was introduced. However, compliant companies ended up suffering," he said.

Why businesses oppose minimum tax

Under the current regime, businesses must pay tax based on turnover even if their actual taxable income is lower.

For example, if a company pays Tk1 crore in minimum tax at a 2% turnover tax rate, but its final profit-based tax liability is only Tk70 lakh, the excess Tk30 lakh is not refunded under the existing system. As a result, the company's effective tax burden rises above the statutory corporate tax rate.

The problem becomes more severe for companies incurring losses as they are still required to pay minimum tax despite having no taxable income.

Mobile phone operator Robi Axiata said it has paid around Tk1,000 crore more in minimum tax than its actual tax liability over the years. Although the company has recently returned to stronger profitability, allowing it to offset excess taxes, Banglalink, another mobile phone operator, continues to face losses while remaining subject to minimum tax obligations.

The issue has been repeatedly raised by business organisations, including the Foreign Investors' Chamber of Commerce and Industry and the Metropolitan Chamber of Commerce and Industry.

Shahed Alam, chief corporate and regulatory officer of Robi Axiata, said turnover tax remains a major obstacle to business growth.

He added that the turnover tax imposes tax on gross revenue without considering whether a company is profitable or loss-making, making the system inconsistent with the principles of fair taxation.

Taimur Rahman, chief corporate and regulatory affairs officer of Banglalink, said, "Banglalink has been subject to minimum tax since FY2015 and, up to FY2024, the company has paid approximately Tk938.90 crore under the minimum tax regime. Since these taxes were paid despite the absence of taxable profits, the minimum tax mechanism has had a significant impact on the company's cash flow and investment capacity."

Wide coverage of minimum tax regime

Under the current Income Tax Act, mobile phone operators are subject to a 1.5% minimum tax on annual turnover. Manufacturers of carbonated beverages, sugary products and tobacco products face a 3% rate, while most other companies pay 1%.

Individuals with annual gross receipts exceeding Tk3 crore are also subject to a 1% minimum tax.

Exporters are required to pay 1% tax on export proceeds, while at least 32 withholding tax provisions are also treated as minimum tax, meaning taxpayers cannot reclaim excess deductions even if their final tax liability is lower.

Experts welcome proposed reform

SK Zami Chowdhury, managing partner of chartered accountancy firm Chowdhury Emdad and Company, said the proposed refund mechanism would help establish greater tax fairness.

"However, the authorities must first ensure that loopholes for tax evasion are properly addressed before implementing the refund system," he said.

Syed Md Aminul Karim said taxing businesses without income contradicts the fundamental philosophy of taxation.

"Introducing a refund system would be a positive and necessary step," he added.

Welcoming the reform initiative, Banglalink's Taimur Rahman said, "The proposed refund mechanism for unadjusted minimum tax is a positive and constructive step, which would help reduce long-term financial pressure on businesses operating in challenging market conditions."

The EU hopes Tuesday to strike a deal towards implementing its nearly year-old trade pact with the United States -- with an increasingly impatient Donald Trump threatening steep new tariffs unless it is done by July 4.

The 27-nation bloc struck an accord with Washington last July setting levies on most European goods at 15 percent, but to the US president's frustration a final version of the text still needs nailing down on the EU side.
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"A deal is a deal," the US mission to the EU posted on X Monday, saying the bloc "must live up" to the agreement sealed in Turnberry, Scotland, between Trump and EU chief Ursula von der Leyen.

Negotiators from the EU's parliament and capitals will meet Tuesday night in Strasbourg to push for a compromise that would allow the bloc to meet Trump's deadline and hopefully turn the page on more than a year of transatlantic trade battles.

Short of that, Trump has warned the EU should expect "much higher" tariffs -- and has already vowed to raise duties on European cars and trucks from 15 to 25 percent.

The tariff blitz unleashed by Trump before the Turnberry accord, including hefty levies on steel, aluminium and car parts, jolted the bloc into cultivating trade ties around the world.

But the EU cannot afford to neglect the 1.6-trillion-euro ($1.9-trillion) relationship with the United States, its largest trade partner.

Cyprus, which holds the rotating presidency of the EU, said its goal "remains, the swift implementation of the EU-US joint statement".

To reach a compromise with member states, parliament is under pressure to renege on several amendments it added to the text in March which the Americans consider unacceptable.

The head of parliament's trade committee, Bernd Lange, struck an optimistic note, saying the sides had "already made a lot of progress".

"I hope we can reach a compromise, including new propositions," Lange said.

But first, he needs to hammer out a common stance between the parliament's different factions, which looked set to keep haggling until the last moment.

The EU parliament's conditional green light came after months of delay caused by Trump's designs on Greenland and a US Supreme Court ruling striking down many of the president's levies.

The assembly's largest force, the conservative European People's Party to which von der Leyen belongs, is now pushing hard to implement an accord it says is vital to ending a period of damaging uncertainty for EU businesses.

EPP lawmaker Zeljana Zovko told AFP she was "confident that we will get it done".

The EPP has firm support from the hard-right ECR party, whose shadow rapporteur on the file, Kris Van Dijck, also said he was "cautiously optimistic".

But several political groups had yet to make their position public as of Monday night, and it remained unclear how far the majority would compromise to get a deal.

Lawmaker Kathleen Van Brempt of the Socialists and Democrats, parliament's second-biggest group, said they would "engage constructively" but fight for safeguards "to guarantee stability, predictability and protection for European businesses and workers".

One bone of contention is a suspension clause toughened by parliament that would scrap favourable tariff conditions for US exporters, should the United States later breach the terms of the deal.

Another concerns so-called "sunrise" and "sunset" clauses under which the EU side of the accord would kick in once the United States makes fully good on its pledges, and would expire unless renewed in 2028.

Green lawmaker Anna Cavazzini said "the odds are good" but warned member states would need to "budge" on parliament's main priorities.

"These past weeks have shown time and again that Trump is not to be trusted, so the EU needs stronger tools at hand," she said.

The Bangladesh Bank is set to introduce stricter rules for transferring money from bank cards to mobile financial services (MFS) accounts, commonly known as "add money", amid growing concerns over cyber fraud and unauthorised transactions.

Under the new rules, which will take effect from 1 August this year, customers will only be able to transfer money from a bank card to an MFS account if both are registered under the same name. Banks and MFS providers will be required to verify that the receiving MFS account belongs to the cardholder.

The central bank decided to impose the restriction following a major fraud incident involving a foreign bank operating in Bangladesh, where fraudsters transferred money from customers' cards to MFS wallets through unauthorised transactions.

Officials familiar with the matter said the Payment Systems Department of the Bangladesh Bank is expected to issue a circular on the new measures soon.

As an interim arrangement until August, customers will still be able to transfer money from one person's card to another person's MFS account. However, a token transaction of up to Tk500 must first be completed during the card-linking process.

Regular transactions will only be permitted 24 hours after the successful completion of the token transaction and linking process.

The Bangladesh Bank has also instructed MFS providers to classify card-to-MFS add money transactions as "fund transfers" rather than "merchant payments". The central bank further said the beneficiary wallet number must remain visible to the card-issuing bank during transactions.

Banks and MFS providers that fail to ensure this facility by 31 July will not be allowed to offer add money services through those cards from 1 August onwards.

According to sector insiders and central bank officials, a cybercrime group in the last week of August 2025 syphoned off nearly Tk27 lakh from at least 54 customers of Standard Chartered Bank (SCB) by bypassing one-time password protections on credit and debit cards issued by bank and transferring funds to mobile wallets such as bKash and Nagad.

Victims had reported that without their knowledge or any transaction, Tk50,000 was transferred from their cards to bKash and Nagad accounts in each instance. The money was then quickly withdrawn by the fraud group, and the MFS accounts were immediately closed.

An investigation by The Business Standard found that the fraudsters used SIM cards and MFS accounts registered under other people's names to move the stolen funds.

Following the incident, SCB suspended the add money feature from its cards to MFS platforms.

Bangladesh Bank has introduced new rules for cashing out money from card-based mobile financial service (MFS) accounts, aiming to strengthen verification and transaction security.
Under the new rules, customers must first complete a successful transaction of up to Tk 500 using the card before linking it with an MFS account. The account can only be connected 24 hours after the transaction is completed.
The circular also said that from August 1 this year, MFS cash withdrawals through cards will be allowed only if the MFS account and the card are verified under the same ownership. Transactions involving mismatched ownership information will not be permitted.

The central bank said the changes will apply to all MFS providers and scheduled banks operating in the country.
In a circular issued by the Payment Systems Department yesterday, the central bank outlined several conditions for card-to-MFS cash withdrawal services. The instructions were sent to managing directors and chief executives of all concerned institutions.

Bangladesh Bank has also instructed service providers to introduce systems that clearly identify transactions as card-based rather than merchant payments.

At the same time, beneficiary account numbers must not remain blank during card-linked transactions.

The central bank warned that institutions failing to make the required changes by July 31 this year would not be allowed to continue offering card-to-MFS cash withdrawal services from August 1.

The circular further said that earlier instructions issued on March 27 last year regarding other transactions through MFS accounts would remain in force. All new directives will take immediate effect.

The government will include provisions or support for every community in the budget for the fiscal year 2026-27 as part of its pledge to democratise the economy.

“Many groups appeared to have been excluded from past budgets. There were no programmes for them-- no support. We will address every group in this budget,” said Finance Minister Amir Khosru Mahmud Chowdhury

He made the remarks in an interview with The Daily Star on the sidelines of the Asian Development Bank’s annual general meeting in the first week of May in Samarkand, Uzbekistan.

Khosru, who previously served as commerce minister during the BNP’s last tenure in power more than two decades ago, is now overseeing both the finance and planning ministries.

The current government’s slogan is the democratisation of the economy. If the economy is to be democratised, every group must be included, and the benefits of the economy must reach their homes, he said.

“We are planning the budget with this in mind.”

Khosru said the government had little time to formulate the upcoming budget, which is “a difficult task”.

“All indicators of the economy that we received from the previous governments were on the decline. On top of that, there is the war in the Middle East -- we have to face this crisis day after day,” said the minister.

“You can certainly understand how hard it can be. But still, we are optimistic,” he added, noting that when the BNP had previously come to power, it restored macroeconomic stability and discipline in the financial sector.

Bangladesh Bank (BB) has instructed treasury heads of commercial banks to play a responsible role and refrain from manipulating the US dollar exchange rate in order to keep the foreign exchange market stable.

BB Governor Md Mostaqur Rahman gave the instruction at a meeting between the central bank and treasury heads of commercial banks, held at the BB headquarters in Dhaka today.

Treasury heads of three private commercial banks, seeking anonymity, told The Daily Star that the BB governor asked them for suggestions on how to stabilise the forex market and exchange rate.

Recently, several banks increased their forward booking of US dollars, which affected the market, prompting the authorities to call the meeting.

According to them, the governor said the banking regulator does not want to intervene directly in the market and therefore asked banks to behave responsibly.

One of the treasury heads said officials of the central bank raised questions about forward selling and asked banks to rationalise the practice, saying it contributes to volatility in the forex market.

The official also said it would be difficult to stop forward selling as it works like insurance.

Forward selling in the forex market involves entering into an over-the-counter (OTC) contract to sell a specific amount of one currency for another at a predetermined exchange rate on a fixed future date.

It allows businesses and investors to lock in exchange rates and eliminate currency risk.

The treasury heads also said they informed the central bank during the meeting that there is little scope for banks to manipulate the market.

According to them, exchange houses and exporters are more likely to be responsible for market volatility.

The treasury heads also informed the governor that central bank officials had verbally instructed lenders not to increase the US dollar rate, which they described as a form of intervention.

A senior official of the central bank told the newspaper that the banking regulator warned lenders not to get involved in market manipulation.

The interbank exchange rate has been hovering at Tk 122.75 per US dollar for the past one and a half months.

On Tuesday, banks were buying US dollars at Tk 122.75 per dollar and selling them at Tk 123.50 per dollar.

To keep the forex market stable, the banking regulator has also continued buying US dollars from the market. Yesterday, it purchased $85 million from six commercial banks at a cut-off rate of Tk 122.75.

As a result, total purchases in the current fiscal year have surpassed $6 billion, according to BB data.

Bangladesh Bank has been buying US dollars since the beginning of the current fiscal year amid improved inflows and easing pressure on the foreign exchange market.

The treasury heads argued that the forex market has not yet become fully market-based.

“Bangladesh Bank still intervenes at times in determining the exchange rate. Even during dollar purchases through auctions, the central bank provides instructions.”

BB Deputy Governor Md Habibur Rahman, Executive Director Sarwar Hossain, Director of the Foreign Exchange Policy Department Md Bayezid Sarker, and other officials of the department were present at the meeting.

Bangladesh’s steel manufacturers yesterday urged the government not to raise electricity tariffs further, saying higher energy costs could deepen the sector’s crisis by triggering production cuts, financial losses and possible factory closures.

At a press briefing organised by the Bangladesh Steel Manufacturers Association (BSMA) at the Economic Reporters’ Forum in Dhaka, industry leaders said the sector was already under pressure from rising utility prices, weak demand, high borrowing costs and low utilisation of installed capacity.

“If electricity prices are increased again, production costs will rise sharply, and many factories may be forced to reduce output. Some could even face partial or complete shutdown,” said Mohammad Jahangir Alam, president of BSMA.

The association said industrial electricity tariffs have risen around 30 percent in recent years, while gas prices for some industries climbed nearly 300 percent, hurting the competitiveness of one of the country’s largest manufacturing sectors.

As part of the ongoing electricity tariff review, the Bangladesh Power Development Board submitted a proposal to the Bangladesh Energy Regulatory Commission seeking higher bulk electricity purchase rates.

BSMA said the proposed tariff hike comes at a time when steel makers are still dealing with the fallout from the Covid-19 pandemic, global supply chain disruptions, the Russia-Ukraine war, exchange rate volatility and geopolitical uncertainty in the Middle East.

The association also criticised demand charges, additional VAT and power factor penalties imposed on industrial consumers, saying those charges effectively act as indirect tariff increases.

According to BSMA, most large steel mills receive electricity through high-voltage connections ranging from 33kV to 230kV, where transmission and distribution losses remain low. Despite this, industries continue to bear additional charges.

It also questioned the power sector’s capacity payment system, claiming that more than Tk 50,000 crore is paid annually in capacity charges even as industries struggle with rising energy bills and inadequate gas supply.

BSMA urged the government to keep electricity prices unchanged for the steel sector, reduce demand charges and VAT, review power factor surcharges and introduce special tariff facilities for high-voltage industrial consumers.

Responding to reporters, BSMA President Jahangir Alam said many mills were operating at a loss amid sluggish construction demand, rising financing costs and increasing production expenses.

He said an additional Tk 2,000 in production costs per tonne would be difficult for the construction sector to absorb and could further slow real estate and infrastructure activities.

“Many factories were built with significantly higher production expectations, but now they are operating at only around 40 percent capacity,” he said.

BSMA Secretary General Suman Chowdhury said electricity accounts for nearly 30 percent of steel production costs, making the industry highly vulnerable to tariff hikes.

According to BSMA, annual steel demand in Bangladesh has fallen to around 40-50 lakh tonnes against the installed production capacity of nearly 1.2 crore tonnes.

Among others, Salam Group Chairman Md Rezaul Karim and BSMA Vice-President Sk Masadul Alam Masud, who is also managing director of Shahriar Steel Mills Ltd, addressed the briefing.

Bangladesh's private bank owners have urged the government to toughen laws to help recover huge default loans and heal the ills facing banks following "massive looting" during the past political regime
They placed the demand Tuesday at a meeting with Finance Minister Amir Khosru Mahmud Chowdhury at his secretariat office in the capital, ahead of a crucial budget coming soon.

Chairman of Bangladesh Association of Banks (BAB) Abdul Hai Sarker led the delegation of bank owners at the meeting, where a detailed discussion took place on banking situation.

"If the government toughens the laws, at least 60 per cent of bad loans can be recovered very easily," Mr Sarker told The Financial Express after the meeting, referring to their talks with the minister.

He says they demanded preparing a law on mandatory physical presence of the loan defaulters at the court dock instead of allowing them to be represented by a lawyer only.

"Many loan defaulters who fled abroad are avoiding repayment of loans, and at the same time, ensuring presence at court by a representative which leads to inordinate delay in loan recovery."

Also, the BAB demanded bringing an amendment regarding how many people of a family can be director of a bank company.

Mr Sarker says they requested the finance minister to take measures so that people's confidence in banking sector can be restored. He says the finance minister has assured the bank owners that the government will follow international best practices in the case of banking sector.

"Necessary measures will be taken to eliminate the irregularities," Mr Sarker quoted the minister as saying.

Earlier, a delegation of the Foreign Investors' Chamber of Commerce and Industry (FICCI), led by its president Rupali Haque Chowdhury, met the finance minister at his office discussing the upcoming national budget for FY 2026-27 and broader economic priorities under the new government.

During the meeting, the two sides exchanged views on the country's investment climate, current economic challenges, and measures needed to attract greater foreign direct investment (FDI).

The FICCI representatives emphasised the importance of a predictable and business-friendly policy environment, highlighting the need for a long-term budgetary roadmap that would enable investors to better anticipate tax structures and make informed investment decisions.

The chamber also stressed the importance of competitive tax policies, policy consistency, and transparency to strengthen investor confidence and enhance Bangladesh's competitiveness among peer economies.

Ms Chowdhury told The Financial Express that during the meeting, they also discussed the corporate tax rate as nominal corporate rates may seem low but the effective tax rate remains excessively high due to various non-deductible expenses and administrative hurdles.

She underscores the need for broadening the tax base rather than increasing pressure on existing taxpayers, a principle the minister reportedly acknowledged as a necessary direction for future budgetary policy.

Senior vice-president of the FICCI Deepal Abeywickrema and vice-president Mohammad Iqbal Chowdhury also attended the meeting, among other directors.

India today hiked petrol and diesel prices by nearly ninety paise per litre in the second increase in fuel rates in less than a week after state-run oil firms ended a nearly four-year freeze on rate revisions.

The increase pushed petrol prices in New Delhi to Rs 98.64 per litre from Rs 97.77, while diesel rose to Rs 91.58 from Rs 90.67.

On 15 May, petrol and diesel prices were raised by Rs 3 per litre for the first time in more than four years, as surging global crude prices following the West Asia war forced state-run fuel retailers to pass on part of their mounting losses.

Fuel rates vary across Indian states due to differences in value-added tax.

Also on 15 May, compressed natural gas (CNG) prices were raised by Rs 2 per kg in cities. This was followed by a hike in CNG prices by Re 1 a kg on 17 May.

Global crude prices have surged more than 50 per cent since US-Israeli strikes on Iran on 28 February and Tehran's retaliation, disrupting flows through the Strait of Hormuz, a key artery for global oil shipments.

Despite the surge, retail fuel rates were kept frozen at two-year-old rates as part of what the Indian government said was an effort to shield consumers from higher global energy costs.

On Monday, Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, stated that the 15 May hike had cut losses by a fourth and that oil companies were still incurring about Rs 750 crore a day in losses.

Prices have remained frozen since April 2022, except for a one-off reduction of Rs 2 a litre each on petrol and diesel in March 2024, just before Lok Sabha elections. Rates were last hiked in April 2022.

Petrol in Mumbai now costs Rs 107.59 a litre and diesel costs Rs 94.08 per litre. In Kolkata, petrol now costs Rs 109.70 per litre and diesel Rs 96.07, while in Chennai, prices increased to Rs 104.49 for petrol and Rs 96.11 for diesel.

India's retail inflation, measured by the Consumer Price Index (CPI), rose to 3.48 per cent in April this year from 3.40 per cent in March, while wholesale price inflation (WPI) surged to 8.3 per cent, a 42-month high, driven by a sharp rise in fuel and energy prices amid elevated global crude oil rates.

The benchmark indices of the Dhaka Stock Exchange (DSE) posted a slight gain today (19 May), snapping a two-session losing streak in a modest market recovery.

The gains, however, lacked conviction. Trading activity remained subdued as investor participation stayed low, with many market players continuing to exercise caution amid a weak short-term trend. Restrained buying interest prevented any broad-based rally from taking shape.

The DSEX rose 8 points to close at 5,212. The blue-chip DS30 index added 2 points to settle at 1,970, while the Shariah-based DSES index edged up 3 points to 1,059.

Advancers outnumbered decliners — 181 issues gained against 138 that fell, with 74 stocks ending unchanged. Market turnover, however, slipped 6.89% to Tk676 crore from Tk726 crore in the previous session.

In its daily market review, EBL Securities noted that the bourse traded largely flat as investors' selectively accumulated large-cap stocks, though participation remained muted amid persistent caution over near-term market momentum. Indices held in positive territory throughout the session on resilient bargain-hunting interest.

Trading volumes were also weighed down by investors trimming leveraged positions and managing liquidity ahead of upcoming festival holidays, the brokerage added.

Market indices remained firmly in positive territory, with resilient bargain-hunting interest throughout the session.

However, trading activity stayed relatively subdued amid sustained cautious sentiment, while paring back exposure from leveraged positions and liquidity considerations ahead of upcoming festival holidays also somewhat weighed on the market's overall turnover.

On the sectoral front, Pharmaceuticals led turnover with a 16.9% share, followed by General Insurance at 13.6% and Banking at 11.4%. Among sector performances, Ceramic and Jute each rose 1.9%, and Services gained 1.3%. On the downside, Mutual Funds fell 0.8%, Food declined 0.6%, and Life Insurance dropped 0.5%.

At the Chattogram Stock Exchange (CSE), the market also closed in the green. The Selective Categories' Index (CSCX) gained 23.0 points, while the All Share Price Index (CASPI) rose 31.1 points.

British American Tobacco Bangladesh recorded a 14 percent year-on-year decline in domestic cigarette sales volume in the first quarter of FY2025-26, as tax-driven affordability pressures, downtrading, and competition from illicit cigarettes weighed on sales, according to an earnings update by BRAC EPL Stock Brokerage Ltd.

Domestic gross revenue fell 10.7 percent year-on-year, while net revenue dropped 21 percent as the total tax burden rose to 84.1 percent from 82 percent in the same quarter last year.

A modest 3.8 percent growth in unit revenue failed to offset the combined drag of lower volumes and higher taxes.

The Bangladesh Cigarette Manufacturers’ Association estimates that illicit cigarettes now account for 15 to 18 percent of the total market, posing a structural challenge for compliant manufacturers.

Non-core revenue offered little relief. Cigarette exports remained zero for the third consecutive quarter, while leaf export revenue fell 22.5 percent year-on-year due to a 27.1 percent decline in volume, partly offset by a 6.3 percent rise in unit price.

Revenue from third-party contract manufacturing -- now in its second quarter -- plunged 68 percent quarter-on-quarter, while no revenue was generated from semi-finished goods.

Gross profit fell 12 percent year-on-year to Tk 802 crore, although gross margin expanded by 707 basis points to 56 percent as cost of sales dropped 33.8 percent year-on-year, outpacing the 23.1 percent decline in total net revenue.

BATBC did not explain the margin improvement, which likely reflected price-mix benefits, input cost normalisation, and efficiency gains from consolidated production.

Operating expenses surged 40.7 percent year-on-year despite the revenue contraction, with no explanation offered. Salaries, IT costs, and technical assistance fees are the principal expense heads, according to the company’s 2025 annual report.

Net finance expenses eased to Tk 49.2 crore from Tk 53.9 crore a year earlier, mainly due to lower lease costs.

Total interest-bearing debt rose sharply to Tk 2,381 crore at the end of March from Tk 1,489 crore in December.

Operating cash outflow widened to Tk 1,226 crore from Tk 952 crore a year earlier, driven by lower profitability and inventory build-up.

Inventories climbed to Tk 5,386 crore from Tk 3,829 crore at year-end, prompting the company to increase short-term borrowing to manage operations.

The US dollar rose on Tuesday as investors balanced cautious hopes ​for a Middle East peace deal against concerns that the Federal Reserve could raise rates to curb energy-driven inflation.

US ‌President Donald Trump said on Monday there was now a “very good chance” of reaching a deal limiting Iran’s nuclear program.

The dollar jumped in March after Iran’s effective closure of the Strait of Hormuz pushed oil prices higher, weighing on oil-dependent economies such as Japan and the euro area ​while increasing safe-haven demand for the greenback.

Oil prices fell 2 percent on Tuesday after Trump’s remarks.

“There are reasons why the ​dollar has not strengthened back to the levels seen in March,” Paul Mackel, global head of forex research at HSBC, said.

“Notably, global risk sentiment has recovered strongly; tension remains in USD OIS (overnight index swaps) markets which ​have stopped short of pricing an aggressive Fed hiking cycle; and monthly global growth momentum is still positive,” he added.

At the ​same time, investors are now pricing in almost a 48.5 percent chance that the Fed could raise rates in December, and a 98.8 percent chance it maintains current rates at its next meeting in June, according to the CME FedWatch tool.

“Even if the Fed moves to signal that it ​will adopt a neutral bias in June, it may not be enough to stabilize inflation expectations and long-term US Treasury yields,” ​said Thierry Wizman, Macquarie Group’s global foreign exchange and rates strategist.

“An opportunity to change the Fed’s rhetoric decidedly toward ‘hawkish’ will come with the ‌small ⁠flurry of Fed speeches, between now and June 6,” he added.

The US dollar index , which measures the greenback’s strength against a basket of six currencies, was up 0.2 percent at 99.18, after snapping a five-day winning streak on Monday as fears eased of an escalation in the war.

Gold prices fell on Tuesday, but ‌stayed above a 1-1/2-month low hit in the last session, as markets consolidated while awaiting further developments after US President Donald Trump paused a planned attack against Iran.

Spot gold fell ​0.5 percent to $4,544.17 per ounce by 0820 GMT.

US gold futures for June delivery ​lost 0.2 percent to $4,547.70.

Gold prices fell 2.4 percent on Friday in their biggest one-day decline since March 26 and extended losses on Monday to touch $4,479.54, the lowest ​level since March 30, as mounting inflation fears triggered a rout in the global ​bond market. Bullion recovered to close Monday slightly higher.

“It seems like an oscillation in this kind of inflation fear trade and a sort of digestion of the fireworks from Friday,” ​said Ilya Spivak, head of global macro at Tastylive, adding that markets are ​now awaiting broad sentiment markers such as the minutes of April’s FOMC meeting to be ‌released on Wednesday.

Bonds steadied following a steep selloff after Trump said on Monday he had paused a planned attack against Iran to allow for negotiations to take place on a deal to end the US-Israeli war, after Iran sent a new peace ​proposal to Washington.

Oil ​prices fell more ⁠than 2 percent, easing some inflation fears. Gold is considered a hedge against inflation, though higher interest rates tend to weigh ​on the non-yielding metal.

Kevin Warsh will be sworn in as ​Fed chair ⁠on Friday by Trump, a White House official said on Monday, putting the financier at the helm of the central bank as it grapples with intensifying inflation that ⁠may ​make it hard to push through the interest-rate ​cuts Trump desires.