Bangladesh Bank (BB) has removed Mohammad Imdadul Islam, managing director of International Leasing and Financial Services Limited, over irregularities and concealment of information.

The central bank sent a letter in this regard to the chairman of the board of directors of the leasing company on Monday and instructed its board to take the necessary steps.

In a letter issued on January 25, the central bank asked Islam to explain why action should not be taken against him for alleged misconduct, including falsification of board meeting minutes and violation of human resources policies.

The regulator also cited his role in dismissing five officials, including the chief financial officer, on January 1 this year in breach of internal policies and regulatory guidelines.

The BB investigation also reviewed his previous tenure as managing director and CEO of GSP Finance Company, where multiple irregularities were identified
Bangladesh Bank said the explanation submitted by Islam on January 28 was found to be unsatisfactory.

The central bank’s investigation also reviewed his previous tenure as managing director and CEO of GSP Finance Company (Bangladesh) Limited, where multiple irregularities were identified.

These included showing a Tk 49.9 crore loan to Keya Cosmetics Ltd as unclassified without prior approval from the central bank, which significantly reduced GSP Finance’s classified loan ratio.

He was also found to have restructured loan facilities of a subsidiary in violation of regulatory circulars, leading to a financial penalty under the Financial Institutions Act, 1993.

In addition, the regulator alleged that excess penal interest was imposed on a loan account of Dorin Hotels & Resorts Ltd during the Covid period, despite repeated instructions to comply with regulatory directives.

According to the Bangladesh Bank, Islam failed to disclose these issues in his application and affidavit when seeking appointment as managing director of International Leasing.

“Considering his involvement in the irregularities and submission of a false affidavit, he has been removed from the post under Section 19 of the Finance Company Act, 2023,” the central bank said.

The regulator also advised the leasing company to appoint a qualified senior official as acting managing director in line with existing guidelines.

The Economic Partnership Agreement (EPA) between Bangladesh and Japan is set to serve as a precedent for future agreements with major economies such as the European Union, the Association of Southeast Asian Nations (Asean), and the United Kingdom, as Bangladesh seeks to expand its global trade network.

As Bangladesh’s first comprehensive economic partnership with a developed economy, the EPA is viewed as a strategic step in preparing for its post-Least Developed Country (LDC) era, according to the latest news bulletin of the International Chamber of Commerce-Bangladesh (ICCB), released on Monday.

Under the agreement, Japan has granted duty-free access to 7,379 Bangladeshi products, covering nearly 97 percent of the country’s export basket, including readymade garments.

This is expected to help Bangladesh mitigate potential tariff shocks as it graduates from LDC status.

The EPA goes beyond tariff benefits, incorporating provisions on services, investment, customs facilitation, intellectual property, and digital trade.

Japan will open 120 service sub-sectors to Bangladeshi professionals, while Bangladesh will allow access to 97 sub-sectors, creating new opportunities in areas such as IT, engineering, and caregiving.

The ICCB bulletin noted that the agreement could play a key role in diversifying Bangladesh’s export base, which has long been dominated by garments.

Sectors such as electronics, automotive components, and processed goods are likely to benefit from increased Japanese investment and integration into regional supply chains.

The EPA is also expected to enhance regulatory transparency and reduce non-tariff barriers, strengthening Bangladesh’s position as a reliable destination for trade and investment.

In contrast, ongoing discussions on a Bangladesh-US reciprocal trade arrangement offer a more limited framework, with conditional market access and less comprehensive coverage in services and investment.

Despite these opportunities, experts stress that Bangladesh’s ability to fully benefit from such agreements will depend on domestic preparedness, including improvements in logistics, trade facilitation, quality infrastructure, and human capital development.

The ICCB added that the EPA represents more than a trade milestone, signalling Bangladesh’s readiness to move beyond its LDC status and integrate more deeply into the global economy.

Bangladesh's export of vegetables, fruits, and processed agricultural products to the Middle East, Europe, and other destinations is facing severe disruption as cargo airfreight costs have nearly doubled following the ongoing war between Iran, the United States, and Israel.

Exporters say shipments have dropped sharply, while costs have become uncompetitive in global markets.

According to exporters, airfreight charges have surged across all major destinations. Shipping agri products to the Middle East now costs Tk180-280 per kg, up from Tk120-140 before the conflict. For Europe and the United Kingdom, the cost has jumped to Tk620-650 per kg from Tk400-450 earlier. Freight charges to other destinations have also nearly doubled.

Prior to the war, it cost about $2,800 to ship a container of vegetables and fruits to the Middle East. Now, the cost has risen to around $6,200-6,400, making exports increasingly unviable.

Exporters also say securing cargo space has become significantly more difficult, further disrupting supply chains.

Export slump pushes farmers into losses

Mohammad Kanchan Mia, proprietor of Arot Agro BD, who exports vegetables, fruits, and dry foods to multiple regions including the Middle East, Europe, Malaysia, and Singapore, said his business has been severely affected.

He normally operates 9-10 shipments per month but managed only one potato container in March. "Due to the war, airfreight rates have increased so much that exports have almost dropped to zero," he said.

Mushtaque Ahmad Shah, proprietor & CEO of Shah Traders, said air freight charges have doubled within a month, making bookings nearly impossible. He added that exporters from India are not facing similar increases and continue exporting at previous rates. "If this continues, exports will fall to near zero. Our freight charges are being increased every few days," he said.

Md Shahid Sarker, another exporter, said Bangladesh is losing competitiveness. He noted export costs from India are Tk200-250 per kg and lower in Pakistan, while Bangladesh pays nearly Tk700 per kg.

"It is impossible to compete with them," he said, adding that products are now being sold at lower prices in the domestic market due to halted exports.

Mango export fears rise ahead of peak season

Bangladesh exports agricultural goods worth around $1 billion annually, but recent data shows a sharp decline. According to the Export Promotion Bureau, vegetable exports fell by 45% in March compared to last year. During the same period, dry food exports dropped by 19.40%, spices by 12.74%, and beverages, spirits, and vinegar by 34.36%.

Concerns are now mounting ahead of the May-September mango export season. Exporters say rising freight costs could severely impact shipments of mangoes and jackfruits, which are cultivated under strict Global Good Agricultural Practices (GAP) standards and have high production costs.

Mohammad Hafizur Rahman of the Bangladesh Fruits, Vegetables and Allied Products Exporters Association said exports have "almost come to a halt," adding that freight to London has reached nearly Tk600 per kg from under Tk400 earlier.

Mushtaque Ahmad Shah said Bangladeshi mangoes previously received strong demand, including at a fruit fair in Qatar, but current conditions have halted initiatives. "At current freight rates, it is simply impossible to compete with India and Pakistan," he said.

According to the Department of Agricultural Extension, mango exports stood at 2,194 tonnes last year, down from 3,100 tonnes in 2023 and up from 1,321 tonnes in 2024.

Officials say discussions with airlines and civil aviation authorities are planned ahead of the mango season to address cargo fare issues.

Abu Noman Faruq Ahmmed, professor at Sher-e-Bangla Agricultural University, warned that rising production costs combined with lack of export opportunities are discouraging farmers.

Prof Faruq, also a registered trainer of GLOBAL GAP, said without reducing freight costs, Bangladesh will struggle to remain competitive in global markets.

Unilever Consumer Care Limited, a multinational company listed on the capital market, posted a decline in both its top and bottom-line revenue performances during the first quarter of 2026.

The net profit of the company dropped 12% year-on-year to Tk12.11 crore in January-March this year, weighed down by sluggish sales. Consequently, earnings per share (EPS) for the three-month period stood at Tk6.29.

According to the company's unaudited financial statements for the January–March period, the total revenue of Unilever slipped by 8% to Tk87.44 crore compared to the same period a year ago.

The revenue decline was observed across its core product categories ranging from health and food drinks including flagship brands like Horlicks, Boost, and Maltova – dropping by 9% to Tk71.81 crore. Similarly, its glucose powder segment saw a 4% decline, bringing in Tk15.62 crore.

In its final financial statement, a leading player in Bangladesh's health and nutrition segment Unilever Consumer Care Limited attributed the drop in profitability primarily to lower net finance income and a marginal contraction in its gross margins. However, the management noted that these negative impacts were partially offset by strategic cost-optimisation initiatives within its operating expenses.

At the end of March 2026, the company's net asset value (NAV) per share stood at Tk 122.58 while the net operating cash flow per share was recorded at Tk10.74.

Following the disclosure of these results on the websites of the Dhaka and Chittagong stock exchanges, the company's share price inched down by 0.32% to settle at Tk2,070.90 on Tuesday.

The recent performance follows a 420% cash dividend recommendation for the 2025 financial year, which was notably lower than the 520% dividend declared in 2024. The proposed payout is scheduled for final approval at the upcoming Annual General Meeting on 18 May.

Unilever Consumer Care, formerly known as GlaxoSmithKline (GSK) Bangladesh, underwent a significant transition in 2020 when Unilever acquired GSK's local health food drink business for approximately Tk2,000 crore. Since the acquisition and subsequent name change, the company has operated as a subsidiary of Unilever, focusing on its dominant market share in the energy and nutrition drink segments.

The country's revenue collection has hit a historic deficit of approximately Tk98,000 crore against the target in the first nine months of the current fiscal 2025-26, surpassing the total shortfall recorded in any previous full financial year.

The National Board of Revenue data shows that the gap has already exceeded the Tk92,000 crore shortfall seen in the entirety of the last fiscal year, with experts warning that the deficit will widen further by June.

In March – the first full month under the new administration – revenue collection fell short of the monthly target by nearly Tk26,000 crore, growing by a mere 2.67% compared to the same month last year.

Speaking to The Business Standard, economists and NBR officials attributed the weak performance mainly to lower imports caused by the Middle East conflict, sluggish domestic economic activity, continued revenue leakage, and an overly ambitious target that did not reflect the tax authority's actual capacity.

Despite the widening shortfall, overall revenue collection during the first nine months of the fiscal year increased by more than 11% from a year earlier.

Officials said the increase was not sufficient to keep pace with the target set for the year.

"The economy has slowed, revenue leakage has not been contained and imports fell in March because of the Middle East conflict," an NBR official said. "At the same time, the revenue target was set without taking into account the actual capacity and limitations of the NBR."

Economists warned that the weak revenue performance is creating immediate pressure on the new government, which is already facing higher spending commitments.

According to NBR data, import tax receipts in March declined from the same month a year earlier, while value-added tax and income tax collections rose by 4.86% and 2.77%, respectively.

Import duties account for the largest share of revenue collected by Chattogram Custom House.

Its commissioner, Shafi Uddin, said imports fell because of the Middle East conflict, reducing import tax collection.

He also said one of the country's largest taxpayers, Eastern Refinery, remained shut in March, leaving the government without any revenue from the company during the month.

In March of the previous fiscal year, Eastern Refinery alone had paid Tk500 crore in revenue, he said. "Because the refinery remains closed, the government is also unlikely to receive revenue from the company in April."

Bangladesh Bank data also shows that imports in March fell by nearly 27% from a year earlier.

Snehasish Barua, a tax expert and chartered accountant, said the Middle East conflict and weak domestic economic conditions both contributed to the decline in revenue collection.

"Alongside the Middle East crisis, there was little dynamism in the domestic economy in March. That is one of the reasons why revenue collection fell," he said.

A review of NBR data over recent years shows that revenue collection has repeatedly weakened during periods of domestic and international disruption.

Tax receipts fell sharply during the Covid-19 pandemic in 2020, during the July uprising in 2024 and during the protests by NBR officials in June 2025.

Zahid Hussain, former lead economist at the World Bank's Dhaka office, said Bangladesh's revenue performance is being held back by slower economic growth, weak institutional capacity and the lack of reform within the NBR.

"An external shock has further weakened growth," he said. "As a result, consumer spending is falling and the private sector has not expanded. These are among the main reasons behind the lower revenue collection."

Zahid also said the large shortfall was partly the result of an excessively ambitious target, a mistake that he believes the government is preparing to repeat in the next budget.

The government set a revenue target of Tk6.97 lakh crore for FY26.

"How the government plans to raise such a large amount remains unclear," Zahid said. "This creates a major challenge for the new government, and that challenge will become even greater if it adopts an expansionary budget."

Commenting on pressure from the International Monetary Fund, the economist said the lender wants to see whether the government is taking effective steps to meet the targets it has set for Bangladesh.

When the Strait of Hormuz – a corridor that carries nearly a fifth of global oil supply – became embroiled in the US-Israel war against Iran, the shockwaves were felt across the globe, and hiking fuel prices became inevitable for most countries.

Around 20 oil-exporting nations control 80% of the global petroleum trade. Any disruption in those countries or in supply routes sends prices soaring in the rest of the world and forces governments to choose between fiscal pain and public hardship.

According to AFP tracking of 150 countries, fuel price adjustments in many economies – big or small – ranged from below 5% to over 55%. South Asia, heavily dependent on Gulf crude channelled through Hormuz, felt the squeeze sharply. Yet the divergence in crisis management across the region has been striking – and revealing.

Pakistan and Sri Lanka moved quickly to acknowledge the crisis and took measures to check consumption, ease fiscal strain and keep impacts lower on people and the economy.

Pakistan raised fuel prices by up to 55% in phases. But the hikes were accompanied by relief: petroleum levies were slashed, diesel levies cut to zero, federal ministers forfeited salaries, and targeted subsidies were rolled out for farmers, bikers and transport operators.

Besides, free bus services were introduced in major cities. In Punjab and Sindh, registered transporters and motorcyclists received direct support on condition that they did not pass on the full burden to commuters.

Sri Lanka, still recovering from its 2022 economic collapse, raised fuel prices by 34% and paired the move with strict demand management.

The Ceylon Petroleum Corporation enforced QR-based rationing, an odd-even number plate system, and consumption ceilings, hoping to cut demand by 20%. The island nation also shifted to a four-day workweek and expanded work-from-home policies to prepare for prolonged disruption.

India, with its strong refining capacity and discounted Russian crude supplies, took a different route.

It maintained steady domestic pump prices for mass-consumed fuels by cutting excise duties, slightly adjusted only premium grades, preserved its strategic reserves, and continued fuel exports to neighbours, including Nepal, Bhutan, Sri Lanka and Bangladesh.

Supply stability, rather than price shock, was India's primary shield.

Bangladesh lags behind

Bangladesh, by contrast, hesitated.

From the outset, officials maintained that fuel stocks were adequate and attributed shortages to panic buying and hoarding. Price hikes came much later than others.

Average 16% hikes, announced on 18 April, were quickly followed by a 10-20% increase in supplies. LPG prices were adjusted twice in a month.

But these moves were reactive, not supported by safeguard measures to cushion ripple impacts on public life. Immediate knock-on impacts were a disproportionate rise in transport fares, quickly translated into commodity prices.

Attempts at rationing were inconsistent, and supply monitoring through deploying "tag officers" did not work well. While Sri Lanka formalised and digitised its system, Bangladesh introduced informal ceilings at pumps but withdrew visible rationing ahead of Eid to ease public anxiety.

The absence of a consistent framework weakened demand management just when it was most needed. The core problem is not merely price adjustment. Crucial safeguard measures were also absent.

There were no targeted subsidies for farmers for irrigation, or for transport operators to force them not to raise fares. As a result, transport fares rose disproportionately, pushing up commodity prices.

Despite authorities' claim of adequate stock and BPC's reported increase in fuel supplies to state-owned companies, long queues of motorists and long-haul trucks persisted as pumps shortened operating hours or displayed "no fuel" signs.

Regional peers combined three elements: acknowledging the crisis, focusing on demand management and undertaking cushioning measures while hiking fuel prices.

Bangladesh largely focused on supply management and took belated and uneven steps to curb demand through inconsistent rationing and engaging "tag officer" with little or no visible impact.

But relief measures to help motorists, farmers, transporters and consumers cushion the price hike shocks remain almost absent. Despite the authorities' repeated announcement about adequate stocks, public perception of scarcity persists, prompting pumps to self-ration and motorists to struggle to keep tanks filled.

As a result, queues at pumps lengthen, and hoarding continues despite raids by authorities and seizure of illegally stored fuels in basements or on rooftops.

In a region equally exposed to Gulf supply routes, Bangladesh's lag is not due to geography or dependency. It stems from delayed acknowledgement, ad hoc demand management, lack of proper communication and the absence of safeguards against price shocks.

The Strait of Hormuz crisis has shown that managing fuel shortages is not simply about raising prices and building stocks. It is about managing demand and supply, maintaining public trust and protecting vulnerable groups – farmers, commuters, bikers and transporters.

On all those counts, Bangladesh still trails its peers.

Despite official assurances of adequate fuel stocks, underpinned by Bangladesh Petroleum Corporation (BPC) data, long queues and intermittent supply disruptions continued at filling stations across the country yesterday.

While analysts and experts have proposed measures such as an odd-even rationing system and digital tracking to manage demand and ease pressure on pumps, proposals remain sidelined, leaving motorists to endure hours-long waits and sporadic "no fuel" notices.

In response to the strain, the BPC has announced a 10-20% increase in supply of diesel, petrol and octane, with 13,048 tonnes of diesel, 1,422 tonnes of octane and 1,511 tonnes of petrol being distributed daily through three state-run marketing companies. However, the retail situation has yet to stabilise.

On the ground, the supply boost has not fully translated into availability at pumps. While waiting times have eased slightly in parts of Dhaka and Chattogram, motorists across much of the country continue to face delays and uncertainty.

Imports and stock data show no shortage

According to port and BPC sources, between 28 February and 21 April, 823,170 tonnes of fuel arrived at Chattogram port in 26 shipments.

Of this, 624,452 tonnes came as diesel in 16 vessels, 124,087 tonnes furnace oil in six, 53,364 tonnes octane in two, and 21,266 tonnes jet fuel in two. A Singapore-flagged vessel, Hafnia Cheeta, carrying 32,000 tonnes of diesel from Malaysia, docked yesterday around noon.

Based on an average daily demand of 12,500 tonnes, diesel imports over 53 days could meet around 50 days of demand. With a 12-day opening stock in early March, total availability should have covered about 65 days, indicating no supply shortage.

For octane, the country had an 18-day stock at the start of March. Imports of 53,364 tonnes, against a daily demand of 1,200 tonnes, add 45 days of supply. Local refineries produce around 700 tonnes daily, adding roughly 37,000 tonnes or 30 days' supply. Combined, availability reaches about 93 days.

Despite these figures, retail-level disruptions have continued.

Mismanagement, panic and weak oversight

The strain began between 28 February and 6 March, when over 175,000 tonnes of fuel were sold in just seven days – more than double normal demand – rapidly depleting reserves. In response, authorities introduced rationing measures, after which long queues formed across fuel stations nationwide. Many motorists were forced to wait for hours and often returned without fuel.

According to Bangladesh Petroleum Corporation (BPC) and port sources, 26 vessels carrying 823,170 tonnes of fuel arrived at Chattogram between 28 February and 21 April. Of this, 624,452 tonnes were diesel, alongside furnace oil, octane and jet fuel shipments. BPC data show that, in theory, the combined stock and imports were sufficient to meet demand for extended periods.

Despite this, retail disruptions persisted, with officials announcing a 10–20% increase in daily fuel distribution to ease shortages. Yet filling stations continued to report uneven supply, shortened operating hours and "no fuel" notices.

Analysts attribute the crisis to distribution failures rather than supply shortages. They cite irregular withdrawals in early March, panic buying triggered by expectations of price hikes, and weak monitoring across depots and stations as key factors. Some fuel was reportedly hoarded, while portions may have been smuggled due to price gaps with neighbouring countries.

Former Eastern Refinery general manager Monjare Khorshed Alam said early excess demand was not contained. "If the excessive fuel supply during the first week had been controlled, the crisis would not have become so severe," he said, adding that expectations of price hikes encouraged stockpiling.

Energy expert Professor M Tamim pointed to gaps in monitoring and the absence of tracking systems, which allowed irregularities in distribution. He also criticised early signals of price increases, saying they intensified hoarding behaviour.

Experts suggest that tools such as app-based fuel tracking and odd-even number plate rationing could have helped stabilise supply and reduce congestion at pumps.

Commercial banks' borrowing appetite continues to fall amid a squeeze in credit demand in the face of persisting economic sluggishness in recent months.Economy news updates

Apart from the private sector's lower credit demand, the Bangladesh Bank (BB) keeps injecting liquidity in the form of buying US dollars from the market to keep the exchange rate stable, which further cut commercial lenders' borrowing appetite, according to money market experts.

It ultimately helps banks, which often go for borrowing either from the interbank market or the central bank to meet their requirements, lessen their liquidity appetite and borrowing by overcoming the demand-supply mismatch.

According to the latest Bangladesh Bank data, the monthly volume of call-money transactions, through which banks make short-term borrowing within themselves, dropped to Tk 945 billion in March from Tk 1.47 trillion and Tk 1.06 trillion recorded in September and December last year, respectively.

The central bank repo is another major instrument through which banks can borrow funds from the regulator.

The data shows commercial banks altogether borrowed Tk 1.55 trillion in July last year, but monthly borrowing dropped to Tk 996 billion in September and Tk 1.08 trillion in December.

This further dropped to Tk 986 billion in March 2026.Bangladesh market report

On the other hand, through the special liquidity facility, under which there are seven borrowing windows like assured liquidity support (ALS), assured repo (AR), and Islamic Banks Liquidity Facility (IBLF), banks overall borrowed Tk 1.43 trillion from the central bank in July last year.

The monthly borrowing volume declined to Tk 603 billion and Tk 383 billion in September last year and March this year, respectively.

Seeking anonymity, a central bank official says the banking regulator kept purchasing US dollars from banks since July 13 last year to stabilise the taka-dollar exchange.

Under such forex-market intervention, the central bank has so far bought $5.68 billion from the market and injected more than Tk 650 billion into banks, he says.

"This intervention plays a major role in commercial banks' plummeting borrowing trend," he says.

In fact, he says, commercial banks now park their surplus liquidity in the central bank's deposit instrument called Standing Liquidity Facility (SDF) significantly despite lower gains at the rate of 7.50 per cent, while the call money rate is around 10 per cent.

According to the central bank data, the monthly volume of fund banks deposited in the SDF increased to Tk 578 billion in March from last December's count of Tk 424 billion.

Managing Director and Chief Executive Officer of Mutual Trust Bank Syed Mahbubur Rahman says the private sector's credit demand keeps plummeting, reaching 6.03 per cent by the end of February 2026.

He says industrial units are facing difficulties in their operation due to various factors like the energy crisis and the recent crisis in the Gulf countries worsened the situation further.

"So, the investment avenues of banks kept shrinking in recent months. That is why their borrowing appetite continues to drop," the experienced banker adds.

Picture a garment factory in Ashulia on a Tuesday morning. Machines hum, deadlines loom, and a buyer waits on a shipment. Then the power cuts out. The generator kicks in. Diesel is expensive and polluting. The factory absorbs the cost and carries on. This is not a crisis. This is Tuesday. Bangladesh’s energy crisis is the “common cold” of the RMG sector: chronic, underestimated and quietly debilitating. Painful, yet rarely dramatic enough to force action. The prescription is known, and the reforms are within reach, but the cost of inaction is no longer theoretical. What was once a logistical headache has become an existential threat.

On the factory floor, reality is harsher. Chronic gas shortages idle machines, delay shipments and raise costs. Global buyers are asking tougher questions about carbon footprints. With only 5.24 percent of installed capacity coming from renewables, we are not merely missing targets; we are risking competitiveness in a market that rewards reliability and sustainability. The country aims to generate 40 percent of its electricity from clean sources by 2041. Yet, of 32,345 MW total capacity, renewables account for just 1,695 MW. In more than a decade, the renewable share has risen by barely 3 percent, while investment has continued to favour fossil fuels. The energy mix is also unbalanced. About 82.7 percent of renewable capacity comes from solar, with minimal contributions from wind and hydro. Limited diversification leaves the grid exposed to supply and price shocks.

Industry is already paying the price. Gas shortages, often exceeding 1,300 MMCFD, mean factories receive well below the required fuel. To keep production lines running, many rely on diesel generators. That raises costs and erodes margins already squeezed by currency depreciation and global price competition. Energy insecurity is making Bangladeshi goods more expensive, precisely when buyers demand lower prices. The greater risk lies in compliance. The EU, our largest export market, is tightening environmental standards. Buyers increasingly link orders to carbon intensity.

Waiting until 2030 is not an option. Four shifts are urgent. First, enable private power. A Merchant Power Plant framework should allow producers to sell directly to large industries at market rates. The policy must be bankable and free of excessive open access tariffs. RMG hubs should be able to sign long-term power purchase agreements with solar and wind developers. Second, modernise the grid. The transmission and distribution network was not designed for variable renewable generation. Scaling up clean energy requires smart grid investment, faster net metering rollout and a clear modernisation roadmap with financing and timelines.

Third, remove fiscal barriers. The FY2025-26 budget cut import duties on solar panels and inverters to 1 percent, but mounting structures still face duties of 58.6 percent and battery storage remains heavily taxed. Duty relief must extend to all essential components so that fiscal policy aligns with national energy goals. Fourth, mobilise green finance. Bangladesh needs up to $980 million annually until 2030 to meet renewable targets, several times the current annual investment of $238 million. The Tk 200 crore single borrower cap under the Green Transformation Fund is too small for utility-scale projects. Developing a liquid green bond market and securing risk guarantees from development partners would help attract investment at scale.

The textile and RMG sectors must be central to energy policy. Policies detached from factory realities will fail. The priority must shift from announcements to implementation. Renewable energy is no longer a distant aspiration or a branding exercise. It is an industrial necessity. If we do not accelerate the transition now, we risk leaving our most vital sector behind as global trade shifts towards low-carbon production.

The writer is a former director of BGMEA and additional managing director at Denim Expert Ltd

Bangladesh's total foreign exchange reserves stood at $30.46 billion as of last night (21 April).

Arif Hossain Khan, spokesperson and executive director of the central bank, confirmed while addressing journalists yesterday that the reserve position was previously $30.37 billion.

Bangladesh Bank purchased over $180 million from last week to Monday this week, contributing to the rise in reserves through increased foreign currency holdings.

A senior official of the central bank said Bangladesh Bank will make a payment to the Asian Clearing Union (ACU) next month, which prompted the purchase of US dollars from commercial banks.

Speakers at a high-level workshop yesterday emphasised the critical role of robust shariah governance in ensuring transparency, accountability, and public trust within the Islamic banking sector.

The remarks were made during the opening session of a three-day special training workshop, titled “Shariah Governance for Members of Shariah Supervisory Committees”, held at the Bangladesh Institute of Bank Management (BIBM) in the capital. The programme is being jointly organised by BIBM and the Bangladesh Bank.

Md Kabir Ahmed, deputy governor of Bangladesh Bank, inaugurated the workshop as the chief guest.

He stated that effective shariah governance is essential for upholding public confidence in the Islamic banking system.

He further noted that shariah-based supervision plays a pivotal role in ensuring accountability across all banking operations.

Abu Bakar Rafique, chairman of the Shariah Advisory Board of Bangladesh Bank, attended as a special guest.

He stressed the need for a strong institutional framework to guarantee transparency in Islamic financial activities.

Supporting this view, Mohammed Abdul Mannan, chairman of the Executive Committee of the Central Shariah Board for Islamic Banks of Bangladesh (CSBIB), highlighted that as the country’s Islamic banking sector continues to expand rapidly, the need for effective shariah oversight has become more crucial than ever.

The inaugural session was presided over by Md Ezazul Islam, director general of BIBM. In his address, he reaffirmed BIBM’s commitment to enhancing good governance and professional expertise in the banking sector through regular training, research, and knowledge-sharing initiatives.

The workshop, which runs from April 21 to April 23, 2026, is being attended by members of Shariah Supervisory Committees from various Islamic banks and financial institutions across the country. The sessions will focus on shariah governance frameworks, regulatory policies, and global best practices.

Earlier, Mohammed Tazul Islam, professor and director at BIBM, also spoke in the opening event.

A refund system for businesses that paid tariffs, which the US Supreme Court ruled President Donald Trump imposed without the constitutional authority to do so, launched Monday.

Importers and their brokers could begin claiming refunds through an online portal beginning at 8 am, according to US Customs and Border Protection, the agency administering the system.

It’s the first step in a complicated process that also might eventually lead to refunds for consumers who were billed for some or all of the tariffs on products shipped to them from outside the United States.

Companies must submit declarations listing the goods on which they collectively put billions of dollars toward the import taxes the court struck down on February 20. If CBP approves a claim, it will take 60-90 days for a refund to be issued, the agency said.

The government expects to process refunds in phases, however, focusing first on more recent tariff payments. Any number of technical factors and procedural issues also could delay an importer’s application, so any reimbursements businesses plan to make likely would trickle down to consumers slowly.

The co-owner of a clothing company based in Washington, D.C., said the system seemed buggy on Monday when she tried to create an account on the portal, which was required before companies could do anything else. A lawyer in Northern Virginia said his clients reported some system delays and lag time.

In a 6-3 decision, the Supreme Court found that Trump usurped Congress' tax-setting role last April when he set new import tax rates on products from almost every other country, citing the US trade deficit as a national emergency that warranted his invoking of a 1977 emergency powers law.

Although the court majority did not address refunds in its ruling, a judge at the US Court of International Trade determined last month that companies subjected to IEEPA tariffs were entitled to money back.

Not all taxed imports immediately eligible

Customs and Border Protection said in court filings that over 330,000 importers paid a total of about $166 billion on over 53 million shipments.

Not all of those orders qualify for the first phase of the refund system's rollout, which is limited to cases in which tariffs were estimated but not finalized or within 80 days of a final accounting.

To receive refunds, importers have to register for the CPB's electronic payment system. As of April 14, 56,497 importers had completed registration and were eligible for refunds totaling $127 billion, including interest, the agency said.

System requires accuracy

Meghann Supino, a partner at Ice Miller, said the law firm has advised clients to carefully list in their declarations all of the document numbers for forms that went to CBP to describe imported goods and their value.

“If there is an entry on that file that does not qualify, it may cause the entire entry to be rejected or that line item might be rejected by Customs,” she said.

Supino thinks the portal going live will require composure as well as diligence.

“Like any electronic online program that goes live with a lot of interest, I would expect that there might be some hiccups with the program on Monday,” she said.

“So, we continue to ask everyone to be patient, because we think that patience will pay off.”

Nghi Huynh, the partner-in-charge of transfer pricing at accounting and consulting firm Armanino, said most companies claiming refunds will have imported a mix of items, and not all will qualify right away.

“It’s about having a clear process in place and keeping track of what’s been submitted and what’s been paid, so nothing falls through the cracks,” she said. “Each file can include thousands of entries, but accuracy is critical, as submissions can be rejected if formatting or data is incorrect.”

Patience with the process

Small businesses have eagerly awaited the chance to apply for refunds. Rebecca Melsky, co-owner of the clothing brand and online store Princess Awesome, said she was unable to register for a portal account Monday despite trying to submit her CPB import code and company information using two different web browsers.

She said Princess Awesome would file for a refund eventually. The company imports some of its clothes from factories in Bangladesh, China, India and Peru. Melsky estimated it paid $32,000 in IEEPA tariffs.

“My expectations have been pretty low about whether we were actually going to see any money back to us,” she said.

“I’m heartened by the fact that there’s any system at all, but I’m only slightly more optimistic than I was last week, which was not very."

Justin Angotti, an associate attorney in the international trade practice of global law firm Reed Smith, said his clients ultimately had their declarations accepted Monday, even if it might have taken a few attempts.

“So far, Customs has been very responsive in trying to troubleshoot the issue,” Angotti said.

Oil prices fell on Tuesday while most stocks rose on lingering hopes for a deal to end the US-Iran war and reopen the Strait of Hormuz, even as Tehran said it had not decided whether to attend peace talks.

With the end of a two-week ceasefire approaching, the White House said Vice President JD Vance was ready to return to Pakistan for fresh negotiations to end a conflict that has sent crude soaring and revived inflation fears.

However, the Islamic republic's position remained uncertain as it accused Washington of violating their fragile truce through its blockade of the country's ports and seizure of a ship.

Crude plunged on Friday after Tehran said it would allow ships to transit the Strait of Hormuz, which had been effectively closed since the war began on February 28.

But the commodity rebounded on Monday as Iran closed the waterway again, citing the blockade and seizure.

Donald Trump has similarly accused Tehran of violating the ceasefire by harassing vessels in the Strait of Hormuz, the transit passage for about one-fifth of global oil.

The US president said the blockade would not be lifted until an agreement had been reached.

"THE BLOCKADE, which we will not take off until there is a 'DEAL,' is absolutely destroying Iran," Trump said on social media. "They are losing $500 Million Dollars a day, an unsustainable number, even in the short run."

He told PBS News that Iran was "supposed to be there" at the talks in Pakistan.

"We agreed to be there," he said, warning that if the ceasefire expired "then lots of bombs start going off".

He separately told Bloomberg News it was "highly unlikely" he would extend the truce.

Based on its start time, the truce theoretically expires overnight on Tuesday, Iran time, although in his comments to Bloomberg Trump said the end was Wednesday evening Washington time.

The Middle Eastern country's parliament speaker Mohammad Bagher Ghalibaf said "Trump wants to turn this negotiating table into a surrender table or justify renewed hostilities, as he sees fit".

"We do not accept negotiations under the shadow of threats, and in the last two weeks we have been preparing to show new cards on the battlefield," he wrote on X.

Still, investors remained largely upbeat that the two sides will eventually come to a deal that will reopen the strategic strait.

US benchmark crude West Texas Intermediate rose more than one percent, while Brent was also higher.

Seoul led the equity market gains thanks to a resumption of the tech rally that had pushed the Kospi to multiple records before the war, while Tokyo and Taipei were also well up.

Hong Kong, Singapore and Manila also advanced, although Shanghai and Sydney fluctuated.

That came even after a down day on Wall Street, where the S&P 500 and Nasdaq Composite retreated from Friday's record closes.

Asia had opened "with a gentle lean into risk as signs Iran may join talks with the US offer a pathway, however narrow, toward easing tensions ahead of the ceasefire deadline", wrote SPI Asset Management's Stephen Innes.

"Markets are pricing the possibility of progress rather than its certainty," he said.

"Trump's remark that a ceasefire extension is 'highly unlikely' if no deal is reached has effectively put a clock on the market.

"However, traders recognize the playbook. Hard deadlines and firm rhetoric often soften as negotiations evolve, but the presence of a timeline still sharpens positioning and raises the stakes around each headline."

In company news, Japanese arms firms enjoyed healthy buying after Tokyo said on Tuesday it would ease decades-old export rules, paving the way for the sale of lethal weapons overseas.

The policy shift, which ends Tokyo's self-imposed restraint on the sale of lethal arms, comes as it seeks to enter the international arms market, hoping to bolster national defence as well as boost economic growth.

Fujitsu climbed 2.4 percent, NEC added 3.7 percent and Mitsubishi Electric was up 0.9 percent, while Mitsubishi Heavy gained 0.4 percent.

In recent weeks, making a simple phone call has become a daily struggle for Md Mosharraf at Char Bahadurpur, a village at Phulpur upazila in Mymensingh district. For it, he blames prolonged power cuts.

“Nowadays, we get electricity for less than five hours a day. Once the electricity is gone, there is no network,” said Mosharraf. “I can’t even speak through my phone most of the time.”

Currently, this problem is no longer limited to remote villages.

Mobile operators and tower companies say network quality has deteriorated over the weeks as power cuts have become more frequent and fuel supplies have worsened following the war in the Middle East.

During power outages, operators depend on battery backups at tower sites. Most sites, however, have backup capacity for only four to six hours.

“When cuts last longer than that, there is no way to recharge the batteries,” said Shahed Alam, chief corporate and regulatory affairs officer at Robi Axiata.

Mobile operators then turn to generators. But only about 25 percent of towers are equipped with fixed generators, forcing many to depend on portable units.

“Adding insult to injury, we are not getting fuel supply to the towers and our critical data centres,” Alam said.

There are 46,567 telecom towers across the country, operated by tower infrastructure companies and mobile operators. This provides network coverage to over 18.58 crore customers. Operators have around 27 data centres across Bangladesh.

Tower companies yesterday said that the fuel crisis could severely disrupt national connectivity.

“Bangladesh’s connectivity ecosystem is facing a real and immediate threat,” said Sunil Issac, interim president of the Bangladesh TowerCo Association and country managing director of EDOTCO Bangladesh.

He said telecom underpins all digital and economic activity and cannot be allowed to fail.

“If the telecom sector is not prioritised within national energy allocation and fuel access frameworks, we risk a cascading failure that will impact businesses, essential services, and everyday life. Ensuring uninterrupted connectivity is no longer a sectoral concern; it is a national imperative,” he said.

Data collected by tower companies through remote monitoring sensors show that electricity availability at tower sites has dropped over the past month.

In 12 districts, supply has fallen from 93 percent to 77 percent from the first week of March to the second week of April, according to tower company statistics.

A tower company official said operators run thousands of towers nationwide and track power availability continuously.

Sunil Issac said, “We have engaged with the relevant authorities to outline the risks and propose immediate, practical solutions, including priority access to fuel and enabling policy support to help the sector navigate this challenging period.”

He said that given the scale of dependency on digital networks, proactive and coordinated action is essential.

In recent weeks, mobile operators have sent at least two letters to the telecom regulator, saying an imminent nationwide disruption. The Association of Mobile Telecom Operators of Bangladesh said the electricity and fuel crisis has “reached a point where continued telecom operations can no longer be sustained without immediate government intervention.”

The association said prolonged outages have forced operators to run key infrastructure on diesel generators.

According to the letters, base transceiver stations (BTSs) consume more than 52,000 litres of diesel and nearly 20,000 litres of octane each day across operators. Each data centre uses an estimated 500 to 600 litres of diesel per hour, or about 4,000 litres a day per facility.

Industry insiders say such reliance on backup power cannot continue for long. Unlike tower sites, data centres manage call routing and internet traffic. Any shutdown at that level could cause failures across the network.

“If fuel can’t be managed and data centres go offline, it would cause widespread call drops, internet outages, and service blackouts,” said an official at a mobile operator, preferring not to be named.

Contacted, Tanveer Mohammad, chief corporate affairs officer of Grameenphone, said operators are facing electricity and fuel shortages.

“The evolving situation calls for timely and targeted measures to sustain uninterrupted telecom services nationwide,” he added.

He said that to “proactively avoid disruptions to essential services for millions”, operators need government support to secure priority electricity for critical infrastructure, streamline fuel supply and ease fuel transport for emergency operations.

Md Emdad ul Bari, chairman of the Bangladesh Telecommunication Regulatory Commission (BTRC), said, “We have been trying to coordinate for over a month and have spoken to the telecom ministry and the energy ministry. In some places, there has been priority supply.”

He acknowledged that some tower sites are facing low fuel supplies.

“The regulator will meet the Bangladesh Petroleum Corporation tomorrow and other stakeholders later this week to improve fuel availability,” he said.

About two-thirds of agent banking outlets in Bangladesh were not engaged in lending as of December 2024, highlighting a major gap in credit delivery despite the network’s rapid expansion, a recent study has found.

Titled “Agent banking in Bangladesh: Strong expansion, some inclusion”, the research was funded by the UK-based International Growth Centre (IGC) and examines whether agent banking has translated into meaningful financial inclusion.

The study used a newly constructed dataset that collected information linked to the geographical location of agent banking outlets, developed by the Policy Research Institute (PRI), covering 2022-2024. It maps the expansion, distribution, and financial activity of agent banking outlets across Bangladesh.

Since its introduction in 2013, the agent banking network has grown from 2,601 outlets in 2016 to over 21,000 by 2024. However, recent trends suggest a slowdown, meaning expansion may be approaching saturation.

Despite growth, agent banking is more effective at mobilising deposits than providing credit, according to the study.

Deposits rose from Tk 380 crore in 2016 to Tk 41,960 crore in 2024, while cumulative credit disbursement reached Tk 24,030 crore, giving a loan-to-deposit ratio of 57.3 percent.

However, this increase in the provision of financial services is uneven and concentrated in fewer active outlets, it was found.

The research also highlights a shift in banking geography. Traditional banking is heavily concentrated in Dhaka and Chattogram, which account for around 65 percent of deposits and 78 percent of total lending.

In contrast, only about 11 percent of agent banking loans originate from these cities, showing that agent banking has helped decentralise credit flows.

Rural areas have benefited, with about 15 outlets per 100,000 people, improving access compared to traditional branch banking. Rural per capita deposits are also higher, indicating strong uptake outside urban centres.

However, credit delivery remains limited. The study identifies a “zero-loan phenomenon”, where about two-thirds of outlets had no outstanding loans in 2024, suggesting those outlets function mainly as deposit and transaction points rather than credit providers.

This is more pronounced in remote and disadvantaged regions, including the Chittagong Hill Tracts.

Outlet distribution is closely linked to existing branch density, suggesting agent banking often extends traditional banking rather than expanding independently into underserved areas.

There is also no strong evidence that poorer upazilas are prioritised, while higher literacy levels are associated with greater activity.

On gender, over 92 percent of operators are male, but women are using the system more and more. Female account growth outpaces male growth between 2022 and 2024.

“As expansion begins to slow, policy should shift from improving access to strengthening financial intermediation. This requires enabling agent-based lending through appropriate regulatory frameworks, using digital data for credit scoring, and aligning incentives so agents can serve as effective credit channels for underserved communities,” said Ashikur Rahman, principal economist at the PRI and co-author of the study.

He also called attention towards a stark gender imbalance among agents and stressed that addressing this issue must become a policy priority to ensure that financial inclusion is both deep and equitable.

The study concludes that while agent banking has significantly expanded access to financial services, its next challenge is strengthening credit intermediation, particularly in underserved and rural areas.

The government has simplified industrial gas distribution guidelines, a strategic move designed to cut operational costs and enhance productivity for the country’s manufacturing sector.

The Power, Energy and Mineral Resources Division issued a circular on Monday, introducing reforms that eliminate long-standing bureaucratic hurdles for industrial users.

Key changes under the new directive include: industrial units may now rearrange or replace gas equipment without prior permission from distribution companies, provided the approved hourly load remains unchanged. Installations must be performed by an enlisted contractor.

Businesses can now transfer unused gas loads between units under the same ownership within the same premises. Approval is now streamlined through the local managing director or regional head, bypassing the previous requirement for head office board approval.

Gas loads previously allocated for captive power can now be transferred to industrial categories within the same facility.

Distribution and marketing companies are mandated to complete meter installations within seven days, followed by mandatory quality verification.

The Bangladesh Textile Mills Association (BTMA) has lauded the initiative, noting that the textile and apparel industries-which are among the largest gas consumers-stand to benefit significantly from these reforms.

Business leaders expressed optimism that the measures will streamline operations and improve energy management across energy-intensive sectors.

The US dollar rose ​to its highest level in a week against major currencies on Monday before paring gains as renewed US-Iran tensions and ‌fading hopes for a Middle East peace deal sent investors toward safe havens.

The United States said on Sunday that it had seized an Iranian cargo ship that tried to run its blockade, while Iran said it would retaliate, stoking fears about a resumption of hostilities.

Tehran also said it would not participate in a second ​round of negotiations that the US had hoped to kick off before its two-week ceasefire with Iran expires on Tuesday.

“The weekend escalation ​revives the geopolitical risk premium just as markets had started pricing a peace dividend,” said Charu Chanana, chief investment strategist at Saxo, adding that higher oil “is not just an energy story, it is a growth-and-rates story.”

The euro was last down ​0.05 percent at $1.1754 after hitting a one-week low of $1.1729 earlier in the session, while sterling was 0.15 percent lower at $1.3497. The risk-sensitive Australian dollar fell 0.3 percent ​to $0.7145.

The dollar index , which measures the US currency against six peers, recouped some of its recent losses to rise to its highest in a week at 98.47, before dipping to trade at 98.34.

The index is down 1.55 percent in April. It had surged 2.3 percent in March on haven demand after the war broke out.

Analysts said ​the restrained moves in the currency markets, with the dollar giving back some of its early gains, pointed to lingering optimism that despite ​the setbacks over the weekend a resolution could still be on the cards.

Chris Weston, head of research at Pepperstone, said while the tone is risk-off to ‌start ⁠the week, the move so far “appears orderly rather than indicative of a major volatility shock.”

“Market participants understand that the path to a formal agreement was unlikely to be linear and remains vulnerable to sudden changes, so market players won’t be wholly surprised by a sentiment shift,” Weston said.

Industries Minister Khandakar Abdul Muktadir today (20 April) informed parliament that Bangladesh witnessed its highest trade imbalance with India among Saarc member countries, with the gap reaching $7.86 billion in the 2024-25 fiscal year.

"Bangladesh's trade deficit [among Saarc members] with India is the highest. The gap stood at $7.86 billion in FY2024-25," he said, while replying to a starred question from treasury bench member SM Jahangir Hossain (Dhaka-18).

The minister said Bangladesh has also trade deficits with Afghanistan, Bhutan and Pakistan, but it enjoys trade surpluses with Nepal, Sri Lanka and the Maldives, among the Saarc countries.

Presenting detailed figures, he said Bangladesh exported goods worth $11.09 million to Afghanistan and imported $21.80 million, resulting in a deficit of $10.71 million.

Exports to Bhutan stood at $14.33 million, while imports reached $44.10 million, leaving a deficit of $29.77 million.

In trade with India, Bangladesh exported goods worth $1,764.24 million against imports of $9,624.10 million, resulting in a deficit of $7,859.87 million.

With Nepal, Bangladesh exported goods worth $35.40 million and imported $5.50 million, maintaining a trade surplus.

Exports to Pakistan were $74 million, while imports stood at $755.30 million, creating a deficit of $681.30 million.

Bangladesh exported $82.85 million worth of products to Sri Lanka against imports of $76.60 million, while exports to the Maldives were $6.35 million compared to imports of $3.50 million, both reflecting trade surpluses.

Oil prices jumped more than 5% on Monday, on fears that the ceasefire between the United States and Iran could collapse after the US seized an Iranian cargo ship, while traffic through the Strait of Hormuz stayed largely halted.

Brent crude futures advanced $5.08, or 5.62%, to $95.46 a barrel by 0418 GMT and US West Texas Intermediate was at $88.86 a barrel, up $5.01, or 5.97%.

Both contracts tumbled by 9% on Friday, their largest daily declines since 18 April, after Iran said passage for all commercial vessels through the Strait of Hormuz was open for the remaining ceasefire period and US President Donald Trump said Iran had agreed to never close the strait again.

"Within 24 hours of Friday's 'completely open' announcement, there were already tankers that were fired upon by the Islamic Revolutionary Guard Corps (IRGC), leading to more fears from the shippers on attempting to leave," said June Goh, a senior oil market analyst at Sparta Commodities.

"Market fundamentals are getting worse, as 10-11 million barrels per day of crude oil remains shut in."

The United States said on Sunday that it had seized an Iranian cargo ship that tried to run its blockade while Iran said it would retaliate amid growing worries of a resumption of hostilities.

Tehran also said it would not participate in a second round of negotiations that the US had hoped to kick off before its two-week ceasefire with Iran expires this week.

The United States has maintained a blockade of Iranian ports, while Iran has lifted and then re-imposed its own blockade of the Strait, which handled roughly one-fifth of the world's oil supply before the war began almost two months ago.

"Oil markets continue to gyrate in response to oscillating social media posts by the US and Iran, rather than the realities on the ground which remain challenging for oil flows to resume in a rapid fashion," Saul Kavonic, MST Marquee's head of research, said.

"The announcement of the Strait opening proved premature," Kavonic said.

"Ship owners will be twice shy about heading towards the Strait again without receiving much more confidence that any announced passage is real."

More than 20 ships passed the strait on Saturday carrying oil, liquefied petroleum gas, metals and fertilisers, Kpler data showed, the highest number of vessels crossing the waterway since 1 March.

The recent fuel price hike is rippling through Bangladesh’s trade logistics chain, pushing up costs for importers, exporters and freight operators at the same time.

On Sunday night, owners of 21 private inland container depots (ICDs) announced an 8.5 percent increase in container handling charges with immediate effect.

The operators say the increase was obvious after a 15 percent rise in diesel prices. Exporters, however, say it will erode their competitiveness at a time when export growth has been falling for eight consecutive months.

Apparel exporters have criticised the move and called for a government review.

However, the Bangladesh Inland Container Depots Association (Bicda) defended the move, saying operators had to adjust costs to keep services running smoothly.

“Following the diesel price hike, cost adjustments became unavoidable to maintain smooth operations,” said Md Ruhul Amin Sikder, secretary general of Bicda.

The latest adjustment comes just months after ICD charges were raised by 20 percent, while the Chittagong Port Authority increased tariffs by more than 41 percent.

Private ICDs handle 20-23 percent of import-laden containers and around 93 percent of export-bound containers moving through Chattogram port.

The revised ICD rates cover six service categories, including container transport, lift-on/lift-off charges, export stuffing, container weight charges and import delivery, according to a circular issued by Bicda.

The association said ICD operations consume more than 70,000 litres of diesel a day, making cost adjustments unavoidable.

At present, ICDs charge an average of Tk 2,046 to transport an empty container between the port and depots. Export stuffing costs about Tk 7,424 for a 20-foot container and Tk 9,900 for a 40-foot container. Rates vary across depots as they are negotiated individually with clients.

Industry stakeholders, however, have raised concerns about the wider impact on trade costs.

“With the latest ICD hike, the cost of import and export business will rise sharply,” said Khairul Alam Suzan, former vice-president of the Bangladesh Freight Forwarders Association (BAFFA), pointing to earlier increases in charges and tariffs in December last year.

Shipping agents have echoed similar concerns, warning that the higher costs could weigh on external trade performance.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has criticised the decision as unilateral, calling for a government-led committee to assess the actual cost impact before any tariff adjustments are made.

SM Abu Tayyab, director of the BGMEA, said the combined pressure of higher port tariffs, ICD charges and rising freight costs would hit the already struggling readymade garment sector hard.

Bangladesh’s merchandise exports, heavily dependent on apparel, have recorded eight consecutive months of decline as of March. Exports fell by more than 18 percent year-on-year, dropping to $3.48 billion last month from $4.25 billion a year earlier.

The dual increase in logistics and handling costs is likely to squeeze profit margins further, particularly in low-margin sectors.

“With exports already on a softer trend, this will push exporters further onto the back foot,” said Riad Mahmud, managing director of industrial manufacturing company National Polymer Group.

He said truck fares rose by 6 percent to 7 percent within hours of the fuel hike announcement and are likely to settle 18 percent to 20 percent higher.

“These are cumulative pressures,” he said. “Transport costs are rising, and ICD handling charges are also going up. All of this directly increases export costs.”

He added that exporters are especially exposed because most orders are agreed in advance. “We cannot revise prices after contracts are signed. The additional costs must be absorbed by exporters.”

Salauddin Sikder, general manager (export) at RFL, said the impact is particularly severe for exporters of non-traditional goods such as plastics, doors and luggage, where shipments are smaller and fixed costs per document are higher.

He said the total cost per container has risen from around Tk 14,000 to about Tk 23,000, an increase of nearly 70 percent to 80 percent.

“Exporters are facing a double burden. Raw material prices have surged due to global geopolitical tensions, while local charges have also increased, leaving little room to absorb costs,” said Sikder.

“If our prices rise disproportionately compared with competitors like China or Vietnam, we risk losing orders,” he added.

Meanwhile, businesses are bracing for further changes as the Department of Shipping is due to meet stakeholders in Dhaka tomorrow to discuss cost adjustments for lighter vessels.

Shafiq Ahmed, convener of the Bangladesh Water Transport Coordination Cell, said a lighter vessel currently consumes around 3,500 litres of diesel on a round trip between Chattogram and Dhaka. Freight for transporting cement clinker stands at Tk 550 per tonne.