The United Kingdom’s visiting trade envoy, Baroness Rosie Winterton of Doncaster, has called on Bangladesh to increase exports to her country utilising the Developing Countries Trading Scheme (DCTS), which offers duty-free access.

During a meeting with Commerce Minister Amir Khosru Mahmud Chowdhury at the Secretariat yesterday, she pointed to scope for increasing exports beyond ready-made garments, including processed foods, seafood, light engineering and leather goods.

She also encouraged Bangladesh to make use of approximately £2 billion in export credit facilities available under UK Export Finance for increased infrastructure and other investments, according to a commerce ministry press statement.

During the meeting, both sides agreed to reactivate the Bangladesh–UK Trade and Investment Dialogue, the statement adds.

The DCTS, which replaced the UK’s Generalised Scheme of Preferences, came into force on 19 June 2023. Under the scheme, the UK cuts tariffs, removes conditions and simplifies trading rules for 65 developing countries.

The scheme heavily benefits UK businesses and consumers by reducing the import cost of thousands of products from around the world. Importers enjoy zero percent import tariff on 99.8 percent of products from 47 eligible least developed countries (LDCs), including Bangladesh, under the scheme’s Comprehensive Preferences tier.

The UK has confirmed it will maintain duty-free access for Bangladeshi goods under DCTS even after Bangladesh graduates from LDC status.

During the meeting with the UK envoy, Minister Chowdhury said the government has been working to improve the investment climate, cut logistics costs and ease doing business.

He said Bangladesh is pursuing free trade agreements and economic partnership agreements with several countries and intends to deepen trade ties with the UK.

The UK is Bangladesh’s third-largest export destination after the United States and Germany.

In the last fiscal year 2024-25, Bangladesh exported $4.62 billion worth of goods to the European country, accounting for 9.57 percent of total exports, according to data from the Bangladesh High Commission in London.

The major exportable items include ready-made garments, frozen food, IT engineering, leather and jute goods, and bicycles, with knitwear and woven garments accounting for 90 percent of total exports.

Shahjalal Islami Bank has reported a sharp rise in profitability for 2025, driven by strong growth in investment income and improved operational performance, while announcing a higher cash dividend for its shareholders.

According to the bank's latest price sensitive disclosure, its consolidated net profit surged 118% year-on-year to Tk368 crore in 2025, up from Tk169 crore in the previous year.

The robust earnings performance lifted consolidated earnings per share (EPS) to Tk3.31, compared with Tk1.52 a year earlier.

The bank also reported improved financial strength, with consolidated net asset value per share rising to Tk23.07 from Tk21.09 in 2024. Meanwhile, consolidated net operating cash flow per share increased to Tk12.28 from Tk8.03, reflecting stronger cash generation from core operations.

On the back of this improved performance, the board of directors recommended a 13% cash dividend for the year, up from 10% cash dividend declared in 2024. The decision was taken at a board meeting held today (8 April).

The bank attributed the strong profit growth mainly to higher net investment income, increased earnings from shares and securities, and a rise in other operating income. Improved cash flow was supported by higher investment income and increased placements with banks and financial institutions.

To approve the audited financial statements and dividend, the bank has scheduled its annual general meeting for 24 May, with the record date set for 30 April.

Market analysts view the strong earnings growth and higher dividend as positive signals for investors, particularly at a time when the banking sector is navigating various economic challenges.

The bank's shares responded positively on the Dhaka Stock Exchange, rising 2.29% today to close at Tk17.90.

As of March, sponsor-directors held 43.08% of the bank's shares, while institutional investors owned 24.25%. General investors accounted for the remaining 32.67%, indicating a balanced ownership structure.

Bangladesh’s national flag carrier, MV Banglar Joyjatra, sailed towards the Strait of Hormuz this noon—after being stranded in the Persian Gulf for 39 days—aiming to cross the route during the two-week ceasefire agreed between the US and Iran.

Bangladesh Shipping Corporation (BSC) Managing Director Commodore Mahmudul Malek confirmed the development at a press conference in Chattogram today.

A total of 31 Bangladeshi crew members are on board the vessel, which had been stranded in the Persian Gulf since the war began on February 28.

Malek said the ship went to Saudi port Ras Al-Khair three days ago and, after loading fertiliser, remained anchored at the outer anchorage of Dammam Port.

As Iran announced it would guarantee safe passage for maritime traffic through the Strait of Hormuz for two weeks following the ceasefire, the vessel left the anchorage and is now heading towards the Strait, he said.

The ship will first reach a safe location and will cross the Strait once BSC gives further instructions after monitoring the situation, Malek added.

The vessel is carrying 37,000 tonnes of fertiliser.

When contacted via WhatsApp, the ship’s chief engineer, Rashedul Hasan, told The Daily Star that they lifted anchor around 9:00am local time (12:00pm Bangladesh time) after receiving instructions from BSC.

“We are now heading towards the Strait of Hormuz at a speed of 12 nautical miles per hour,” he said.

The chief engineer added that the vessel is about 420 nautical miles away from the Strait and, at the current speed, it will take around 40 hours to reach and cross it.

The BSC managing director said the ship’s charterer has initially set three possible destinations: South Africa, Mozambique, and Brazil. Once the destination is finalised, the vessel will proceed accordingly, he said.

The bulk carrier arrived at the United Arab Emirates port of Jebel Ali on February 27 from Mesaieed, Qatar, carrying 38,800 tonnes of steel coils before becoming stranded.

The National Board of Revenue (NBR) is considering linking VAT registration – known as a Business Identification Number (BIN) – to bank accounts, aiming to bring businesses with trade licences but without VAT registration under the tax net.

Under the proposed measure, businesses may be required to provide a BIN when opening or continuing current accounts in banks. According to NBR sources familiar with the budget, a provision in this regard may be included in the upcoming national budget.

If fully implemented, the policy could compel tens of thousands of small and large businesses to register for VAT, with the primary goal of expanding VAT coverage.

However, business owners and bankers have expressed concerns that mandatory BIN verification for bank accounts could discourage businesses from opening accounts or depositing funds. Many business owners are reportedly reluctant to register for VAT due to bureaucratic complexity and potential harassment.

A senior NBR official, speaking on condition of anonymity, told The Business Standard, "A large number of businesses, which are legally supposed to be under VAT, remain unregistered. To bring them under the tax net, making registration mandatory for opening a current account is being considered."

He added, "If approved by the finance minister, this could be included in the next budget and implemented from the next fiscal year."

Another official noted that even existing account holders may be required to undergo BIN verification.

According to NBR data, there are currently 7,92,000 VAT-registered entities in the country, of which about 5,00,000 file returns.

Estimates from the Bangladesh Shop Owners Association show that nearly 70 lakh shops hold trade licences, while many other businesses and service providers remain outside the VAT net. Moreover, not all of these businesses maintain current accounts.

According to estimates by the Bangladesh Shop Owners Association, nearly 70 lakh shops hold trade licenses, while there are many businesses and service providers that are still outside the VAT net. Not all of these businesses maintain current accounts.

Another NBR official said, "Small-scale businesses with low-value transactions are not our target. This initiative is aimed at businesses with current accounts and significant transaction volumes, to track turnover and ensure applicable VAT is collected."

Regarding concerns that businesses might sidestep monitoring through alternative accounts, the official noted, "Savings accounts have transaction limits. If fully implemented, these loopholes can also be addressed."

Business owners, however, voiced opposition to the plan. Arifur Rahman Tipu, general secretary of the Bangladesh Shop Owners Association, told The Business Standard, "If BIN becomes mandatory for opening or managing bank accounts indiscriminately, businesses may be discouraged from using banks, depositing money, or conducting transactions."

He added, "Forcing small businesses to register for VAT will increase their costs and could potentially drive them out of business. The complexity of the system and harassment discourage registration."

Bankers echoed these concerns. Syed Mahbubur Rahman, managing director and CEO of Mutual Trust Bank Limited, said, "Customers are already hesitant to deposit money due to bank charges and excise duties. Making BIN mandatory for businesses could further discourage account openings, prompting them to keep money elsewhere."

He suggested that the government focus on increasing direct taxes rather than imposing mandatory BIN requirements on bank accounts.

The dollar fell around one percent against the euro and the pound in early European trading Wednesday as investors sold the greenback on relief over a temporary ceasefire between the United States and Iran.

At around 8:10 am (0610 GMT) the dollar, usually a safe investment haven in times of market turmoil, was trading at 1.17 euros, down around 1.1 percent. Against the pound, the dollar fell around 0.9 percent to $1.34.

The securities regulator has fined the directors and top executive of Rupali Insurance Company Limited for violating credit rating regulations, highlighting ongoing concerns over compliance and governance practices in the capital market.

According to the latest monthly enforcement report of the Bangladesh Securities and Exchange Commission (BSEC), 11 individuals—including directors and the chief executive officer—were each fined Tk1 lakh in March.

The penalised persons are Mostafa Golam Quddus, Ali Ahmed, Mohammad Yonus, Quazi Moniruzzaman, KM Faruk, Abu Hena, Shaon Ahmed, Obaidul Huque, Mostafa Quamrus Sobhan, Fazlutun Nessa, and CEO Fawzia Kamrun Taniyas.

However, Quddus, the former chairman of the company, passed away in January 2025, while some of the penalised individuals are no longer actively engaged with the company.

The BSEC said in the report that the penalty stems from irregularities related to the company's credit rating process and alleged violations of the Bangladesh Securities and Exchange Commission (Credit Rating Companies) Rules, 2022.

The regulator found inconsistencies in an agreement between the insurer and Credit Rating Information and Services Limited (CRISL), particularly the absence of a clear validity period and execution date.

Under the agreement, CRISL was responsible for conducting an initial credit rating for 2018 and surveillance ratings for subsequent years. While the firm completed ratings up to 2020, the validity of its last rating report expired on 28 November 2022.

Immediately after this expiry, Rupali Insurance entered into a new agreement with National Credit Rating Limited on 29 November 2022, and a fresh rating report was issued in December based on updated financial statements.

The BSEC concluded that engaging a new rating agency without formally terminating the previous agreement or securing regulatory approval breached rules governing the continuity and termination of credit rating engagements.

The rules require that once a rating agreement is executed, it must continue through the initial rating and three consecutive surveillance ratings unless formally terminated with the commission's approval.

During the hearing, Rupali Insurance and the accused individuals contested the allegations, arguing that the agreement with CRISL had naturally expired rather than being terminated. They also claimed the previous agency failed to deliver within the stipulated timeframe, necessitating a new rating to meet regulatory and financial obligations.

Despite these arguments, the BSEC upheld its findings and imposed penalties, reinforcing its stance on strict compliance with regulatory frameworks.

Linde Bangladesh has announced a 100% cash dividend for the year 2025, maintaining a strong payout for shareholders despite a significant decline in profit compared to the previous year.

The decision was taken at a board meeting held on Wednesday (8 April) of the multinational industrial and medical gas producer, according to a price sensitive disclosure. The company has scheduled its annual general meeting for 10 June, while the record date has been fixed for 29 April.

For the year ended 2025, the company reported a net profit of Tk34 crore, with earnings per share (EPS) standing at Tk22.60. This marks a sharp drop from the previous year's EPS of Tk421.9, which had been exceptionally high due to a one-off gain.

The company clarified that its 2024 earnings were significantly boosted by income generated from the divestment of its hard goods business.

The Reserve Bank of India (RBI) today (8 April) kept its key interest rate unchanged, citing inflationary pressures driven by higher import costs following the recent West Asia conflict.

Announcing the first bi-monthly monetary policy of the fiscal year, RBI Governor Sanjay Malhotra said the Monetary Policy Committee (MPC) unanimously decided to retain the repo rate at 5.3% while maintaining a neutral stance.

The decision comes after the six-week-long Middle East war disrupted global energy supplies, pushed up crude oil prices and triggered inflationary and fiscal pressures for import-dependent economies such as India, the world's third-largest energy consumer.

This is the first monetary policy review after the Indian government announced a fresh retail inflation target of 4% with a margin of 2% on either side for another five years ending March 2031.

The central bank's pause follows easing inflation, with the consumer price index (CPI)-based headline inflation falling to 3.2% in February, closer to its medium-term target.

Meanwhile, the Indian rupee has depreciated by more than 4% since the conflict began on 28 February.

Gold prices climbed ‌to a nearly three-week high on Wednesday as markets reassessed near-term risks after US President Donald Trump agreed to suspend bombings and attacks on Iran for two weeks, easing fears of energy-driven inflation.

Spot gold ​was up 2.5 percent at $4,819.52 per ounce, as of 0726 GMT. Earlier in the session, ​bullion rose more than 3 percent to its highest level since March 19. US gold futures for June delivery gained 3.4 percent to $4,845.30.

Trump said Washington had agreed to a two-week ​pause in attacks and received what he described as a “workable” 10-point proposal from Iran as a basis for negotiations.

His comments ​followed earlier warnings that Tehran must reopen the Strait of Hormuz or risk US retaliation on its civilian infrastructure.

“People went into this session thinking that escalation was very likely, but the announcement of a two-week ​truce kind of upended that expectation and that was gold positive,” said Nicholas Frappell, ​global head of institutional markets at ABC Refinery.

Iran’s Supreme Security Council said negotiations with the United States would begin ‌on ⁠April 10 in Islamabad after it submitted its proposal via Pakistan, adding that talks did not signal an end to the war.

Meanwhile, rising energy prices could fuel inflation and complicate central banks’ interest rates decision.

While gold is often seen as a hedge against inflation and uncertainty, its appeal tends to weaken ​in a high-interest-rate environment ​as it offers ⁠no yield.

Markets are now awaiting minutes of the Federal Reserve’s March meeting later in the day.

Gold, which began the year on a strong note, ​has fallen more than 8 percent since the Iran war erupted on ​February 28.

“This ⁠is a knee-jerk relief rally and it remains to be seen if Iran complies. For gold, the 200 day-moving-average at $4,930 and then $5,000 will be key hurdles. Similarly, $80-$81 is a important level for ⁠silver,” ​independent metals trader Tai Wong said.

In a rare step in September last year, the Dhaka bourse published a list of 30 companies that had long been out of production. The move was meant to inject transparency into the market, check rumour-driven trading and warn investors chasing whispers rather than market fundamentals.

Instead, it had the opposite effect.

After the disclosure, share prices of 29 of those zombie firms, whose factories are padlocked, machines are gathering dust, and workers have long since left, surged. Some doubled. Others tripled.

Market analysts say allowing companies with no operational heartbeat to trade freely undermines confidence. For the sake of ordinary investors and the long-term health of the market, the regulator should move quickly to clean house.

The Dhaka Stock Exchange (DSE) says it is now preparing to delist companies with no realistic prospect of revival in phases.

But the obvious question is, why did the shares race ahead even though production has been halted for years?

Saiful Islam, president of the DSE Brokers Association of Bangladesh (DBA), said the answer lies in speculation. “Globally, there are always some investors who prefer to invest in penny stocks,” he said, referring to low-priced and highly speculative shares of small companies.

“There is a class of traders who are heavy risk takers and essentially enjoy gambling,” said Islam.

“They believe that if prices start to rise for any reason, the relatively low number of shares in these companies makes it easier to play in their favour,” he added.

DISCLOSURE TRIGGERS SURGE

After the disclosure by the DSE, shares of Familytex BD, Appollo Ispat and Tung Hai Knitting have more than tripled in the past three months, even though operations have been shut for years.

Other dormant firms have also seen sharp gains.

Hamid Fabrics, New Line Clothing, Nurani Dyeing and Shurwid Industries have more than doubled. Prime Textile rose 83 percent, while Meghna Pet Industries and Northern Jute climbed 69 percent each.

Meghna Pet Industries has been out of operation for 24 years. Its rally has left many analysts baffled.

“Why did this company’s stock rise to that extent?” asked Al Amin, an accounting professor at Dhaka University and a market analyst.

“Why did the company remain in the stock market for two decades despite having no operation, no dividend, nothing?” he questioned.

“These are surging absolutely due to manipulation and rumours by a vested interest group,” he added.

“By allowing trading of closed companies, the DSE and the BSEC [Bangladesh Securities and Exchange Commission] are basically allowing investors to burn their hands,” he further said.

Among the 30 companies, only GBB Power reported positive news, announcing that it had signed a power purchase contract with the Bangladesh Power Development Board (BPDB) for the installation of an 18 MW solar power plant.

Of the other dormant firms, Zaheen Spinning Mills rose 63 percent, Emerald Oil gained 55 percent and Regent Textile advanced 52 percent.

Prof Al Amin said the DSE cannot avoid its responsibility simply by publishing the status of the companies, especially when the securities regulator operates surveillance software.

In his view, both DSE and the Bangladesh Securities and Exchange Commission (BSEC) should dig deeper and suspend trading in such shares.

When asked whether suspension would hurt small investors, he said those who bought the shares should have had supporting information.

DBA President Islam also advocated for stronger action. The DSE’s responsibility, he said, does not end with labelling companies as non-operational.

He said investor protection is a core duty of the market regulator. If firms have remained dormant for years, the DSE could have suspended trading, summoned management, explored mergers or restructuring and engaged merchant banks to assess options.

AXE FINALLY LOOMS OVER THEM

Abul Kalam, spokesperson of the BSEC, said the regulator has placed the companies under surveillance. If it finds manipulation, insider dealing or regulatory breaches, it will act.

On whether the companies will continue trading despite years of closure, he said listing and delisting are fully in the hands of the stock exchange.

“Stock exchange can delist the companies complying with listing regulations; it is their task,” he added.

Mominul Islam, chairman of the DSE, said the exchange has asked the non-operational companies about plans to resume operations. Some have replied, others have not.

“A few cited political disruptions over the past decade as the reason for closure and said they are trying to reopen factories. The DSE will allow them time,” he told The Daily Star.

For the rest, the exchange will assess whether operations can realistically resume. If not, it will review assets and liabilities before making a decision. Some companies will be delisted gradually if there is no prospect of revival, he said.

The taka edged up against the US dollar yesterday, buoyed by a two-week ceasefire between the United States and Iran that eased pressure on the foreign exchange market.

The weighted average exchange rate stood at Tk 122.75 per dollar, down from Tk 122.84 the previous day, according to Bangladesh Bank (BB) data.

A senior treasury official at a private commercial bank said the market turned volatile in recent weeks as importers rushed to buy dollars amid fears of a prolonged war. That anxiety appears to have subsided following the ceasefire.

When importers scramble for forward buying, rates tend to climb. As tensions cool, demand for forward trading of US dollars is expected to ease, he said.

Forward buying means agreeing today to purchase dollars at a fixed rate on a future date. Forward trading refers to buying or selling dollars now at a pre-agreed rate for delivery later, usually to hedge against exchange rate swings.

In its Bangladesh Bank Quarterly published yesterday, the central bank, however, cautioned that the economy remains exposed to external oil price shocks and currency depreciation.

“A sharp increase in global oil prices, particularly when combined with exchange rate depreciation, could exert significant upward pressure on inflation and lead to a decline in foreign exchange reserves,” it said.

The BB report said that allowing some exchange rate flexibility could help ease pressure on reserves. At the same time, balancing fiscal costs and inflationary pressures may require a partial adjustment to global oil prices.

“Rising geopolitical tensions -- particularly the Iran-Israel-USA conflict -- have already disrupted global energy and food supply chains and may exert additional pressure on both the external balance and domestic inflation. These developments pose near-term risks to price stability, export demand, and import costs,” said the report.

Mirza Elias Uddin Ahmed, managing director of Jamuna Bank, told The Daily Star that Bangladesh’s external position has not fundamentally weakened, although panic driven demand had unsettled the market.

The country’s gross foreign exchange reserves stand at about $34.35 billion, which the central bank described as a strong buffer for external trade payments. Usable reserves were $29.81 billion on April 2, enough to cover more than five months of imports.

The BB report said the central bank has maintained monetary tightening in response to stubbornly high inflation.

“However, inflation remains above the comfort threshold, disproportionately affecting low- and middle-income households,” it said, adding that the government and the central bank have taken several steps to rein in price pressures.

The BB has withdrawn LC margin requirements for imports of essential commodities, including rice, onions, dates, sugar, pulses and edible oil, it added.

Alongside truck sales by the Trading Corporation of Bangladesh (TCB), relevant agencies are working to curb hoarding, syndication and other illegal practices to ease supply bottlenecks.

On money and credit markets, the report said the near-term outlook depends on striking a balance between maintaining adequate liquidity, containing inflation and reviving private sector credit growth.

It said that public sector credit is likely to remain the main driver of overall credit expansion in the short term, potentially crowding out private investment and complicating efforts to sustain growth.

“A recovery in private-sector credit will depend on further moderation of lending rates, improved investor confidence, and greater political stability,” said the BB.

Breaking a prolonged bearish spell since the onset of the Middle East conflict, Dhaka stocks rallied strongly today (8 April), with turnover and indices surging as investor sentiment rebounded after the United States and Iran agreed to a conditional two-week ceasefire.

US President Donald Trump said late on Tuesday that he had agreed to suspend attacks on Iran for two weeks after holding discussions with Pakistan, easing fears of an extended conflict.

The benchmark DSEX index of the Dhaka Stock Exchange jumped 3.12%, or 161 points, marking its highest single-day gain since 15 February.

Dhaka stocks extend rally as turnover jumps 27%

According to DSE data, stocks had rallied sharply on 15 February, the first trading session after the BNP's landslide victory in the 13th national election, when DSEX climbed 200 points, or 3.71%, amid a surge in investor participation.

Today, turnover – a key market indicator – surged 66% to Tk991 crore, the highest in seven weeks. Market breadth was overwhelmingly positive, with 93% or 367 of listed stocks advancing and 21 hitting the upper price limit.

The Shariah-based DSES index rose 2.88%, or 30 points, to 1,075, while the blue-chip DS30 index gained 2.77%, or 55 points, to close at 2,026.

Market data showed stocks opened sharply higher, with the DSEX rising 140 points within the first three minutes of trading. The upward momentum persisted throughout the session, closing at 5,317 points with a strong gain.

Following the outbreak of the US-Israel war on Iran on 28 February, the country's stock market entered a bearish phase, with most trading sessions ending in declines as persistent sell-offs eroded equity values amid fears of a prolonged conflict and its adverse economic impact.

Market insiders said investors had largely stayed on the sidelines in recent weeks due to prolonged uncertainty. The ceasefire announcement prompted a return of confidence, encouraging fresh inflows into equities.

They added that amid heavy sell-offs, many fundamentally strong stocks experienced significant value erosion. However, as the ceasefire reduced uncertainty, investor confidence improved, prompting a renewed flow of funds into the market.

EBL Securities, in its daily market commentary, said the capital bourse witnessed a strong resurgence as the announcement of a two-week ceasefire deal between Iran and the USA sparked optimism across the trading floor, triggering renewed accumulation of the beaten-down scrips in anticipation of improved market momentum amid easing geopolitical concerns.

"Market indices tracked a firm upward trajectory from the outset of the session with predominant buying interest, while investor participation strengthened steadily as the session progressed, driving broad-based price appreciation across most of the scrips," it added.

First Finance topped the gainers' list, with its shares rising 10% to close at Tk5.5 each – the maximum daily price increase – followed by ICB Islami Bank, which also gained 10% to Tk3.3, Bangas Limited up 10% to Tk134.2, BD Lamps up 9.96% to Tk157.8, and Khan Brothers PP Woven Bag Industries up 9.93% to Tk54.2.

Meanwhile, only 11 stocks declined. Techno Drugs led the losers, slipping 1.07% to Tk36.9 per share, followed by Apex Spinning Mills, Meghna PET Industries, Janata Insurance, and Summit Alliance Port.

On the sectoral front, pharmaceuticals and chemicals stocks accounted for the largest share of turnover at 15.6%, followed by engineering at 12.7% and banking at 12.6%. All sectors posted gains, with jute stocks exhibiting the most positive returns on the bourse.

The Chittagong Stock Exchange (CSE) also ended higher, with its Selective Categories Index (CSCX) and All Share Price Index (CASPI) rising by 192.5 points and 328.3 points, respectively.

An important objective of income tax policy is to strengthen long-term savings, enhance future financial security, and advance the social protection of taxpayers. In line with this objective, investments and donations in fourteen (14) specified sectors have been made eligible for tax rebate, subject to Section 78 of the Income Tax Act, 2023 and Part III of the Sixth Schedule.

Under the prevailing provisions, a resident normal person taxpayer and a non-resident Bangladeshi (NRB) normal person taxpayer may claim a tax rebate of up to 3% of total income against the tax payable in a tax year, provided the investment or donation meets the prescribed conditions, subject to an overall maximum eligible amount of Tk 1,000,000.

While this incentive is positive in principle, certain inconsistencies and implementation risks warrant a review of both the eligible investment limits and the investment-eligible sectors in the forthcoming national budget.

The tax rebate facility is intended to encourage responsible savings and long-term financial resilience. However, this objective can be undermined if the incentive structure does not sufficiently account for risk management and investor protection.

At present, there are explicit caps on investments in comparatively safer instruments such as government securities, DPS, and life insurance. For instance, investments up to Tk 500,000 in government securities, Tk 120,000 in DPS accounts, and up to 10% of the sum assured in life insurance are treated as eligible for tax rebate. These caps reflect an intent to direct incentives toward safer savings instruments, thereby keeping risk relatively controlled.

In contrast, there is no clearly defined tax-related cap for investment in the stock market under the tax rebate facility. This creates an evident policy imbalance: stricter limits apply to safer instruments, while comparatively higher-risk market participation may be incentivized without equivalent safeguards.

In practice, a segment of ordinary taxpayers enters the stock market primarily to maximize tax rebate benefits. Yet the knowledge, analytical capacity, access to timely information, and risk tolerance required for equity market participation vary significantly across taxpayers.

Consequently, uninformed or inadequately assessed investments increase the likelihood of capital loss, which may directly conflict with the stated objective of strengthening future security.

This contradiction is material. The tax rebate is not merely a mechanism of tax reduction; it is a policy instrument that influences taxpayer financial behavior. If the incentive structure unintentionally encourages participation in higher-risk instruments without appropriate protection measures, it may lead to adverse outcomes, reduced household savings, heightened financial stress, and weakened long-term security.

Recent market-related events have further affected investor confidence. Developments such as restructuring decisions in the financial sector, uncertainty regarding shareholder outcomes in certain institutional changes, and the closure of some finance companies have heightened perceived risk among general investors.

In an environment of reduced trust, ordinary investors are more likely to be influenced by short-term signals and informal information channels, and they often lack effective institutional protection during periods of market volatility.

Most importantly, taxpayers who invest in the stock market for the purpose of tax rebate currently lack a visible and effective risk mitigation or protection framework. A tax rebate does not safeguard invested capital if an issuer becomes insolvent or if the market experiences significant decline.

Therefore, a policy designed to promote future security may inadvertently expose ordinary taxpayers to capital loss, raising concerns regarding both the practicality and fairness of the incentive design.

In view of the above, it is submitted that the National Board of Revenue (NBR) may consider redefining the eligible investment limits and the scope and conditions of eligible sectors under the tax rebate facility in the forthcoming budget 2026-27.

Proposed policy measures:

Increase the investment tax rebate ceiling
Raising the ceiling from Tk 10 lakh to Tk 20 lakh signals a forward-looking, investor-friendly policy shift, encouraging greater participation in formal savings and long-term financial planning.

Rational enhancement of limits for safer savings instruments
Existing caps for safer instruments may be reviewed and rationally increased. For example, the maximum eligible investment limit may be raised to Tk 2,000,000 for government securities and Tk 360,000 for DPS accounts. Such adjustments would encourage secure savings behavior and reduce the incentive-driven shift toward higher-risk instruments.

Establish a protection framework for tax-rebate-eligible stock market investments
A defined protection mechanism should be introduced for the rebate-eligible portion of stock market investments. Coverage or compensation in qualifying events such as issuer insolvency may be considered. Without such a framework, encouraging ordinary taxpayers into higher-risk instruments raises concerns of equity and fairness.

Adopt a risk-adjusted incentive structure
A balanced policy is required so that taxpayers are not compelled to concentrate on risk-prone instruments to maximize rebate benefits. Incentives should reflect both risk and protective safeguards to align with broader objectives of social protection and long-term security.

Treat dividend withholding as final tax
To enhance compliance simplicity and transparency, tax deducted at source (TDS) on dividends may be considered as final tax settlement, subject to legislative alignment. This would reduce administrative complexity and provide certainty to taxpayers.

Implement an annual investment awareness campaign (January–March)
A structured national campaign should be undertaken annually to improve taxpayer understanding of investment options, risks, and informed decision-making. Improved awareness would support planned participation and contribute to meeting short-term financing needs through stable instruments.

The tax rebate facility is an important policy tool to promote savings, strengthen future security, and advance social protection. Accordingly, the design of eligible limits and sectors should incorporate risk awareness, protection measures, and a pragmatic incentive balance.

The proposed measures would support safer long-term savings among ordinary taxpayers, reduce undue risk-taking in equity markets driven primarily by tax incentives, and improve alignment between the incentive framework and its intended policy objectives.

The US-Israel war on Iran, before reaching a ceasefire agreement just yesterday, highlighted a longstanding vulnerability of Bangladesh – Bangladesh's only refinery, Eastern Refinery Limited (ERL), has not been significantly modernised or expanded in more than five decades.

This issue had also surfaced during the Russia-Ukraine war in 2022, when attempts to process Russian crude failed due to the refinery's outdated configuration. Despite that experience, little progress was made in upgrading its capacity.

As the Iran war disrupted supplies from the Middle East — the country's primary source of oil and gas imports, the state-run Bangladesh Petroleum Corporation (BPC) has started exploring crude options beyond Middle Eastern countries, while also seeking technical recommendations from Eastern Refinery on suitable crude specifications.

Since ERL cannot process all types of crude oil, the BPC is carefully assessing transport costs, compatibility and by-product impacts before moving ahead with imports from new sources.

Former caretaker government adviser and energy expert M Tamim said the Middle East remains the most cost-effective source due to proximity, but stressed that the planned second unit of ERL must include modern facilities capable of refining a wider range of crude types to ensure energy security during crises.

Search for alternatives intensifies

Apart from closing the Strait of Hormuz, the Middle East war also caused output cuts in the region's major energy facilities, resulting in force majeure by key suppliers for Bangladesh.

In March, shipments of crude oil from Saudi Arabia and Abu Dhabi – each carrying around 1 lakh tonnes – were cancelled. As a result, Bangladesh did not receive any crude consignments during the month. Authorities have since secured a replacement shipment from Saudi Arabia's Yanbu port for next month, though at a slightly higher cost of about $0.25 per barrel.

According to ERL officials, the refinery was originally designed to process Arabian Light crude from Saudi Arabia and Murban crude from the UAE. Heavier crude types, such as those from Russia, cannot be refined using the existing setup. With no blending facility in place, the refinery lacks flexibility to adapt to alternative sources.

To address this, ERL has analysed crude specifications from several countries – including Nigeria, Azerbaijan, Norway, Angola, and the UK – and submitted its findings to BPC. The corporation is now reviewing these options, considering both economic and technical feasibility.

BPC General Manager (Commercial and Operations) Muhammad Morshed Hossain Azad said work on alternative sourcing is ongoing, adding that maintaining a diversified supply line will be important even if the geopolitical situation stabilises.

Capacity constraints remain a major concern

Bangladesh imports between 65 lakh and 68 lakh tonnes of fuel annually, with crude oil accounting for about 15 lakh tonnes — all refined at ERL. The country also imports around 45 lakh tonnes of refined fuel, mainly diesel, from countries like India and China.

Despite rising demand, refining capacity has remained stagnant since independence. This has forced Bangladesh to rely heavily on costly refined fuel imports, increasing pressure on foreign currency reserves.

A long-delayed project to build ERL's second unit – which would double refining capacity to 30 lakh tonnes annually – has faced repeated setbacks. Although the project was first proposed in 2010 and approved in various forms over the years, it took more than a decade and a half to receive final approval.

The project, now estimated to cost around Tk31,000 crore, was approved by the Executive Committee of the National Economic Council (Ecnec) in December last year. Authorities are exploring financing options, including potential loans from external sources such as the Islamic Development Bank.

Officials say the new unit will be designed with greater flexibility to process a wider range of crude oil, addressing one of the key weaknesses of the current refinery.

Until then, Bangladesh remains exposed to global supply shocks — with limited capacity to adapt quickly when its primary fuel sources are disrupted.

A ceasefire in the Iran war will deliver badly-needed relief to economies battered by the world's worst ever energy crisis, but hopes the truce will quickly restore normal oil and gas flows from the Middle East are almost certainly misplaced.

US President Donald Trump on Tuesday agreed to a two-week ceasefire, conditional on Iran pausing its blockade ​of oil and gas shipments through the Strait of Hormuz, the narrow waterway that typically handles about one-fifth of global oil trade. Iran's foreign minister Abbas Araqchi said Tehran ‌would halt counter-attacks and guarantee safe passage for vessels transiting the strait.

How quickly the ceasefire will take full effect, however, remains unclear. Iran launched further attacks on Israel and Gulf countries shortly after Trump's announcement, underscoring the fragility of the deal. The war, now in its sixth week, has claimed more than 5,000 lives across nearly a dozen countries and badly damaged vital regional infrastructure, including oil and gas facilities.

Financial markets nonetheless welcomed the news. Japan's benchmark Nikkei jumped 5% to a one‑month high, while ​Brent crude prices tumbled roughly 13% to around $95 a barrel by 0300 GMT, as traders priced in a near-term easing of supply risks.

QUICK RELIEF VALVE

A temporary halt in fighting and the reopening of ​Hormuz would allow Middle Eastern exporters to ship significant volumes of oil that have been trapped inside the Gulf since hostilities began, offering global energy markets some ⁠immediate relief.

Around 130 million barrels of crude oil and 46 million barrels of refined fuels are currently floating on roughly 200 tankers in the region, according to data from analytics firm Kpler. Another 1.3 million tonnes ​of liquefied natural gas are also stuck on vessels awaiting safe passage.

For Asia, which relies on the Middle East for 60% of its oil and 80% of gas imports, the disruption has been particularly severe. Several countries ​have been forced to curb industrial output and ration fuel supplies following the abrupt cut in deliveries. The release of these trapped volumes would therefore ease the most acute pressure on Asian economies and energy systems.

But clearing the backlog of cargoes is only part of the problem. Getting tankers out of the Gulf is one thing; persuading shipowners and charterers to send vessels back in is quite another.

The unprecedented blockade of Hormuz has caused severe disruption to global shipping markets by sharply reducing ​tanker availability, pushing freight rates to record highs. Many shipowners are likely to remain extremely cautious about re-entering the region during what is, at best, a shaky and time-limited ceasefire, fearing their vessels and crews could ​once again become trapped if hostilities resume.

That caution would in turn constrain any attempt to revive normal export flows.

OIL PRODUCTION TO LAG

Middle East oil exports via Hormuz collapsed by around 13 million barrels per day (bpd) in March, equivalent to ‌roughly 13% of ⁠global consumption, according to Kpler. While Saudi Arabia and the United Arab Emirates managed to divert some shipments through alternative routes, the disruption forced regional producers to shut in an estimated 7.5 million bpd of output in March, including 2.8 million bpd in Iraq and 1.9 million bpd in Saudi Arabia, the world's largest exporter, according to US Energy Information Administration estimates.

As matters stand, much of that production is unlikely to come back quickly.

Restarting oilfields, especially at the scale found in the Middle East, is a complex, time-consuming process that can take weeks at best. National oil companies such as Saudi Aramco and the UAE's Adnoc are likely to hesitate before ​restoring output without greater clarity on the durability of ​the ceasefire.

Moreover, refineries, fields and export terminals damaged ⁠by missile and drone strikes will require months, and in some cases years, to repair. The region also faces a shortage of specialised equipment and skilled labour, which could further slow restoration efforts.

Crucially, without confidence that sufficient tankers will be available to load crude oil, diesel and jet fuel, producers will be reluctant to risk ​restarting fields and refineries only to find they cannot move the output.

LASTING SCARS

Were Washington and Tehran to agree on a permanent cessation of hostilities that ​led to the full reopening ⁠of Hormuz, oil and gas trade could eventually return to more normal operations. But even under that more optimistic scenario, the war is likely to leave lasting scars on global supply.

In the medium term, the oil market could remain 3 to 5 million bpd tighter over the next few years than pre-war expectations, due to damage to export infrastructure and the need to rebuild depleted inventories, according to Saul Kavonic, head of energy research at MST Marquee.

Unless the warring ⁠sides strike a ​firmer peace deal, the two‑week ceasefire now taking shape risks being little more than a short-term patch in what has become ​an unprecedented global energy crisis.

Solar power is often discussed as a policy ambition in Bangladesh, one which has become more pertinent given the ongoing global energy uncertainty and price volatility.

Bangladesh’s energy security depends on how quickly renewable ambitions translate into real projects -- spearheaded by solar.

Developing around 5,000 Megawatt peak (MWp) of solar could require over Tk 35,000 crore in generation investment, excluding land and supporting infrastructure -- making bankable projects and investor confidence essential.

In Bangladesh, 1 MWp of solar capacity can generate roughly 1.4 million kilowatt-hour (kWh) annually, highlighting solar’s potential contribution to the national power supply.

International experience shows that countries can scale solar from negligible levels to 20–30 per cent of installed capacity within a decade or even faster when supported by clear policy frameworks, bankable procurement structures and coordinated infrastructure planning.

Despite repeated policy commitments and long-term energy planning, solar deployment in Bangladesh has remained limited -- and this is solely because of an incomplete implementation framework.

In several cases, projects were awarded without confirmed land access, grid interconnection or developers demonstrating the financial and technical capability required to deliver utility-scale projects.

As a result, many projects lacked the capacity to achieve financial closure or progress to construction within expected timeframes.

Solar prices are influenced by technology costs but, in Bangladesh, are primarily driven by financing conditions, land constraints, infrastructure requirements and project risks.

While concessional financing is available, the challenge is deploying it at scale. Lower financing costs require reducing project risk through bankable power purchase agreements (PPAs), strong payment security and credible project pipelines.

Institutions such as Infrastructure Development Company can play a role through blended finance and credit enhancement structures, particularly if scaled and aligned with utility-scale project requirements, while foreign exchange risk mitigation can help unlock international capital.

The transition toward competitive solar tenders represents an important step forward.

Competitive tariff auctions can deliver transparent price discovery, but only when projects are genuinely ready to build.

Poorly structured tenders can encourage aggressive bids that later prove unviable, leading to delays or cancellations.

Procurement frameworks must ensure that winning bidders have credible projects, secured sites and the capability to deliver.

Many of the challenges observed in past projects reflect gaps in readiness at the time of award.

Successful projects require key fundamentals from the outset. Developers should demonstrate secure land rights, confirm sites are dispute-free and obtain preliminary grid interconnection approval.

Financial capability should be supported by credible commitments from experienced institutions, with bid bonds and performance guarantees discouraging speculative participation.

Once a project is awarded, clear and enforceable timelines should govern each stage of development.

Power purchase and implementation agreements should be executed within three months of award, followed by financial closure withinsix months of PPA signing.

Construction should then be completed within 12–18 months, depending on project size and site conditions.

Delays at any stage should trigger defined penalties, including encashment of performance guarantees.

Without disciplined timelines, projects risk remaining in prolonged development phases without progressing to construction.

Establishing and enforcing such timelines ensures that projects move predictably from award to operation.

Land and grid access remain two of the biggest barriers to scaling solar in Bangladesh.

Utility-scale solar is inherently land intensive: every 1,000 MWp of ground-mounted capacity typically requires roughly 2,200–2,300 acres. In a densely populated country, securing suitable sites becomes a major challenge. The ‘solar park’ model offers a practical solution.

Under this approach, government agencies prepare land and supporting infrastructure such as roads, drainage and substations before leasing plots to private developers.

By addressing land and grid constraints upfront, solar parks can significantly reduce development risk, lower costs and accelerate project timelines.

Such models need not rely on upfront public funding; infrastructure costs can be recovered through land leases, developer charges or structured public–private partnerships.

In the absence of a coordinated solar park framework, transmission connectivity remains a major challenge.

Developers must construct transmission lines connecting the plant to the nearest substation at their own cost, often across considerable distances and through complex right-of-way approvals.

Once completed, these lines are transferred to the national grid operator during commissioning. This requirement can significantly increase costs and delay projects.

Targeted fiscal incentives can help accelerate investment during the early stages of solar expansion.

Policies such as tax holidays, reduced or zero import duties on solar modules, inverters and key balance-of-system components and accelerated depreciation for renewable energy assets can significantly lower capital costs.

Because much solar equipment is imported, such measures can materially improve project economics and support more competitive tariffs.

Solar expansion can also stimulate domestic industrial development and job creation.

Growing deployment creates opportunities for local manufacturing and engineering firms to participate in the renewable energy supply chain, particularly in mounting structures, electrical systems and installation services.

Over time, solar module assembly could also emerge as a viable domestic industry if deployment scales sufficiently.

Rooftop solar offers a fast-track pathway for expansion. Approximately 6,000 square metres of roof space can support around 1 MWp of solar capacity.

Large factory rooftops provide suitable space for distributed generation, while net metering and third-party PPAs can enable deployment without upfront investment.

As solar capacity grows, complementary technologies such as battery storage will help manage intermittency and support grid stability.

Bangladesh has both the demand and the opportunity to scale solar power rapidly. The challenge now is execution.

With the right implementation framework in place, Bangladesh can transform solar ambition into delivered capacity -- strengthening energy security, enabling domestic industry and high-skilled job creation and driving long-term economic growth.

The government has decided to waive import duties on electric school buses, aiming to reduce fuel consumption and promote cleaner transport in the education sector, the National Board of Revenue (NBR) Chairman Abdur Rahman Khan said today (7 April).

Speaking at a pre-budget consultation with transport sector stakeholders at the NBR headquarters, he said the initiative is part of a wider strategy to curb fuel use in the country's transport system.

"The government wants to cut fuel consumption in the transport sector. As a first step, we have decided to set zero import duty on electric buses used for school students," he said.

He added that the decision will be implemented immediately, without waiting for the national budget. "There will be broader changes in the electric vehicle (EV) sector in the upcoming budget, but we will not wait till then. A Statutory Regulatory Order (SRO) will be issued soon to formalise the duty exemption," he noted.

Industry leaders at the meeting urged the government to expand incentives for electric vehicles (EVs), including reducing registration costs through clearer classification based on engine capacity (CC) and kilowatt ratings.

The NBR chief acknowledged longstanding delays in VAT refunds, saying the issue – stemming from the lack of an automated system – has persisted for over a year and a half and promising to solve the problem.

Requests to reduce taxes on jet fuel were declined due to concerns over misuse and revenue leakage. "We must also consider revenue protection," the chairman said, noting the government's target to raise tax collection from Tk4 lakh crore to Tk6 lakh crore.

Petroleum dealers also sought duty-free imports of tank lorries used for fuel transportation, with the NBR chief promising to consider the proposal.

Meanwhile, transport operators requested zero-duty imports of truck chassis to replace ageing vehicles—some over 25 years old—but officials indicated that balancing environmental priorities with revenue needs remains a challenge.

Representatives from the motorcycle sector proposed allowing the use of compressed natural gas (CNG) in motorcycles. In response, the NBR chief discouraged further reliance on gas, citing domestic shortages and the high cost of LNG imports.

He instead highlighted the need for shifting towards renewable energy in the current context.

Aviation operators, meanwhile, said rising jet fuel taxes – now at Tk42 per litre from Tk18 previously – have significantly increased operating costs, urging the government to restore earlier rates.

The meeting brought together a broad range of industry groups, including representatives from the Bangladesh Automobile Assemblers and Manufacturers Association (BAAMA), Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA), petroleum dealers, motorcycle manufacturers, shipbuilders and aviation operators.

Bangladesh's overall economic growth slowed to 3.03% in the second quarter (October-December) of the 2025-26 fiscal year, down from 3.53% in the same period last year, according to data released by the Bangladesh Bureau of Statistics (BBS) on Monday (6 April).

Growth had been comparatively stronger in the first quarter, reaching 4.96%, up from 3.91% a year earlier. At current prices, the country's GDP rose to Tk1,517,600 crore in Q2, from Tk1,390,100 crore in Q2 FY2024-25, indicating that the overall economy continues to expand despite a slowdown in growth momentum.

Sectoral performance

Agriculture sector maintained positive momentum, growing 3.68% in Q2, up from 1.90% a year earlier. In the first quarter, agriculture posted 2.11% growth, improving from a negative 0.12% last year.

The industrial sector experienced a sharp slowdown, with growth dropping to 1.27% in Q2, compared to 5.78% a year earlier. This followed a stronger first quarter growth of 6.82%, highlighting the uneven trajectory of industrial performance.

The service sector remained relatively stable, growing 4.45% in Q2, slightly up from 3.48% last year, and maintaining similar growth in Q1 at 4.51%.

Despite strong contributions from agriculture and services, the slowdown in industry weighed heavily on overall GDP growth. Experts say boosting investment, ensuring energy supply, and recovering global demand will be critical to reviving industrial momentum.

Impact of political and economic factors

Mustafa K Mujeri, executive director of the Institute for Inclusive Finance and Development, attributed the slowdown in formal sectors to political and social instability during the pre-election period.

He noted that the second quarter coincided with the election season, when worker strikes and political unrest created a tense social and political environment.

"As a result, growth in formal sectors such as manufacturing and industry nearly bottomed out, recording just 1.27%," Mujeri said. "In contrast, informal sectors like agriculture and services managed to maintain relatively stable production trends. Production activity in formal sectors was significantly affected during this period."

He further warned that growth could slow in the coming quarters due to the ongoing Middle East crisis, rising fuel and food prices, and higher global market costs, which have increased production expenses. Reduced garment exports and shortages of diesel, water, and chemical fertilizers are also affecting output.

"In agriculture, farmers did not receive fair prices. Potato prices have fallen by almost half, and production costs for other crops were not fully covered. The government must ensure supportive measures so farmers can continue production. Without timely action, growth, employment, and public welfare could suffer," he said.

National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan on Tuesday (7 April) assured businesspeople in the agriculture sector that their concerns will be addressed, urging them to focus on problems rather than demanding tax cuts.

Speaking at a pre-budget discussion at the NBR office in Agargaon, he said, "Your demand is to reduce taxes, while our responsibility is to increase revenue. Rational coordination is needed, but revenue collection remains essential for the country."

He warned that reducing taxes often leads to endless demands for further cuts and subsidies, noting that "even zero tax does not satisfy anyone" and that tax reductions do not automatically boost compliance.

Agro industry pushes tax exemption at source

The Bangladesh Agro Processors Association has proposed a tax exemption at source for agricultural products and urged the withdrawal of supplementary duty on mineral water up to 3 litres, stressing that safe drinking water is an essential commodity, not a luxury.

NBR Chairman Abdur Rahman assured that the board will address these concerns.

Meanwhile, the Bangladesh Poultry Industries Association has requested turnover tax reductions and easier adjustments of Advance Income Tax (AIT) on imports.

The NBR chief acknowledged pressures to set turnover tax at 2.5%, saying reductions are difficult but being considered.

Feed Industries Association Bangladesh highlighted that 70–80% of poultry feed costs come from raw feed materials and requested incentives to prevent price hikes.

Agriculture Machinery Manufacturers Association-Bangladesh proposed simplifying SRO descriptions for threshers, harvesters, and rice transplanters to ease VAT determinations.

Agro-Chemical Manufacturers, Fertiliser, Crop Protection & Fruit Importers Associations proposed various duty and tax exemptions on raw materials, pesticides, bio-rodenticides, fruit bags, sticky traps, and protective equipment to support local production and exports.

The proposals reflect a broad push from the agriculture sector to reduce fiscal burdens and promote accessibility, safety, and local production

Concerns raised over delayed VAT refunds

A pre-budget discussion meeting, traders raised concerns over delayed VAT refunds.

In response, the NBR Chairman said that with the launch of the online system, VAT refunds have started to be processed.

He added, "The income tax system is also almost complete; it is currently in trial runs. Once these are fully operational, we will refund you directly to your bank accounts. Currently, we have temporarily withheld refunds to enforce discipline, but ultimately, you will receive them."

Other participants included the Bangladesh Agro Feed Ingredients Importers and Traders Association, Shrimp and Hatchery Association of Bangladesh, and Animal Health Companies Association of Bangladesh.

The National Board of Revenue (NBR) has launched a pilot initiative to verify import invoices online in a bid to prevent misdeclaration of goods and values, curb revenue evasion, and speed up customs clearance.

As part of the move, the NBR is linking its customs automation platform, ASYCUDA World, with the database of the Bangladesh Bank. The pilot programme formally began today (7 April).

Speaking at the inauguration, NBR Chairman Abdur Rahman Khan described the initiative as a "landmark step" towards fully digitising customs procedures.

According to an NBR press release, the system will enable fully online, real-time verification of commercial invoices. Once implemented in full, it is expected to significantly reduce revenue risks by preventing attempts at evasion and ensuring the protection of government revenue.

The initiative is also expected to help curb trade-based money laundering, the release added.

It said the new system would reduce reliance on paper documentation, making the import and export clearance process simpler, faster, and more efficient. It will also help build a reliable database for determining the value of imported goods.

Under the system, commercial invoices issued for imports will be transmitted in a unified format through all commercial banks to Foreign Exchange Transaction Management System (FxTMS) of Bangladesh Bank. These invoices will then be shared in real time with the ASYCUDA World system used by customs authorities.

The interconnection between the two systems has been jointly developed by the Foreign Exchange Operations Department of Bangladesh Bank and the IT team of the NBR.

At the event, Kamal Hoassain, director of the Foreign Exchange Operations Department, said it is not feasible to monitor thousands or even millions of invoices quickly and accurately through manual processes.

"Real-time online verification will make it possible to check invoices more efficiently," he said, adding that the system would help reduce trade-based money laundering.

However, he also noted that the system still has some vulnerabilities.

Currently, in the case of imports, the exporter's bank sends documents, including details of goods and prices, to the importer's local lien bank in Bangladesh. Importers or their representatives then submit hard copies of these documents manually to customs authorities, a process that often leads to reported delays and additional costs.

There have also been allegations that some dishonest importers exploit the manual system by providing false information, sometimes in collusion with bank or customs officials, making misdeclaration difficult to detect.

Under the new system, commercial banks will upload invoice data in a prescribed format to the central bank's platform, allowing customs authorities direct access for verification.