The Directorate General of Drug Administration (DGDA) has revised the prices of cardiac stents, a critical medical device used in the treatment of heart disease, reducing the cost of several commonly used products.

The revised prices were announced in a notification signed by DGDA Director General (Additional Secretary) Md Alamgir Hossain today (9 June).

A cardiac stent is a tube-shaped device inserted into the coronary arteries to keep them open and maintain blood flow to the heart in patients suffering from coronary artery disease.

According to the notification, the prices were re-fixed based on recommendations from a committee formed under the Health Services Division of the Ministry of Health and Family Welfare.

The revised list shows price reductions ranging from around Tk3,000 to Tk5,000 for several widely used stents. For example, some stents previously priced at Tk60,000 will now cost Tk57,000, while stents priced at Tk55,000 and Tk53,500 have been reduced to Tk52,000 and Tk50,000 respectively.

The largest price cut was applied to the Silene Covered Stent manufactured by InSitu Technologies Inc of the United States. Its maximum retail price has been reduced from Tk109,800 to Tk62,000.

The updated price list covers stents imported by companies including Advanced Meditech, Asia Pacific Medics Ltd, Alliance Medicare and others, with products manufactured in countries such as Poland, Germany, France, Italy, Switzerland, Japan and the United States.

The DGDA has directed all hospitals to display the updated stent price list prominently on their notice boards for public awareness. Hospitals and healthcare providers have also been instructed to ensure that stents are sold strictly according to the approved maximum retail price (MRP) and are not bundled into treatment packages.

The notification further states that separate cash memos must be issued for stent purchases, clearly mentioning the stent's name, MRP and manufacturer's name. Hospitals must also provide patients with the packaging of the stent used during their treatment.

The DGDA urged all hospitals providing cardiac care to comply with the approved pricing structure and related directives.

Bangladesh’s securities regulator has withdrawn floor prices on Bangladesh Export Import Company Limited (Beximco) and Islami Bank Bangladesh PLC, ending more than three years of administered price floors across the country’s stock market.

The Bangladesh Securities and Exchange Commission (BSEC) issued the order on Monday, signed by chairman Masud Khan, lifting the restrictions last imposed on the two companies in August 2024. With the withdrawal, normal circuit breaker rules will apply, set under a BSEC order from June 17, 2021.

Under those rules, daily price movement limits range from 10 percent for shares priced up to BDT 200, falling in steps to 3.75 percent for shares above BDT 5,000. The slab-based circuit breakers also cover newly listed securities.

The Dhaka Stock Exchange Brokers Association of Bangladesh (DBA) had recently urged the commission to lift the floor prices, arguing that Beximco had been effectively untradeable for an extended period. It said the floor on Islami Bank and other shares since May 3 had blocked normal selling activity. Prolonged trading restrictions were raising the risk of negative equity for margin borrowers, threatening overall market stability, the DBA said in a letter to the commission.

After taking office, Khan told a press briefing that the commission would not impose floor prices again. The order followed days later.

Bangladesh’s stock market first entered the floor price era in March 2020, when BSEC imposed the mechanism to stem heavy selling triggered by the COVID-19 pandemic. The restriction was lifted in June 2021, only to be reinstated in July 2022 as economic instability deepened following Russia’s invasion of Ukraine. The commission removed the floor for 169 companies that December, but reimposed it in March 2023 after share prices fell sharply.

The floor was largely dismantled in January 2024, leaving 35 companies covered. Successive waves of withdrawals followed, with the final four companies released in August 2024 under the interim government. Until Monday, Islami Bank and Beximco remained the sole exceptions.

Finance Minister Amir Khosru Mahmud Chowdhury says the government is preparing the budget for the next fiscal year with interests of people from all sections of society in mind.
"We are preparing the budget taking all relevant issues into consideration," he told reporters when asked about the persistently high rate of inflation that has been putting pressure on people for a prolonged period.The minister was responding to questions at his office at the Bangladesh Secretariat in the capital, preceding an elaborate statement in parliament on economic and revenue situation, and banking-sector reforms later in the day.Mr Chowdhury, who is scheduled to place a Tk 9.38-trillion budget in parliament tomorrow (Thursday), says that despite limited resources, the budget seeks to cover all citizens of the country."No one has been left out. The circumstances of all people, their advantages and disadvantages, and their living standards have been taken into account," he told the reporters.

Responding to another question, he added: "Had we had more resources, we could have undertaken even more welfare- oriented measures for the people."

While addressing parliament on Tuesday, the finance minister said political uncertainty, weak investment, sluggish trade and industrial activity, and supply-chain disruptions were among major factors behind government's failure to meet revenue targets over the past two fiscal years.Politics

He apprised the parliament of the deficient revenue situation and also banking-sector woes and remedies being applied now.

He notes that a gamut of 11 economic deceleration factors, including declining purchasing power, business losses, lower industrial output and falling corporate profits, had weighed on revenue collection in fiscal years 2024-25 and 2025-26.

Replying to a question from reserved-seat lawmaker Nilofar Chowdhury Moni during a question-answer session in the Jatiya Sangsad, the minister said revenue collection up to April in FY2025-26 had come to Tk 3.27 trillion (326,928.16 crore) against a target of over Tk 4.31 trillion (Tk 431,461.27 crore), which accounts for 75.77 per cent of the target.

The National Board of Revenue (NBR) was assigned a revenue target of Tk 5.03 trillion (Tk 503,000 crore) for the fiscal year.

In FY2024-25, revenue collection stood at over Tk 3.71 trillion (Tk 370,875.04 crore) against a target of Tk 4.63 trillion (Tk 463,500 crore).

Mr Chowdhury, who is also in-charge of the planning ministry, says economic activity remained subdued following the political transitions, while supply-chain bottlenecks, high production costs and weak business confidence further constrained revenue growth.

He says prolonged high inflation, which hovered near double digits for an extended period, eroded consumers' purchasing power and reduced the taxable surplus income of middle-income earners and salaried employees.

Disruptions in industrial production, weakened supply chains and sluggish wholesale and retail trade also reduced business earnings, hurting corporate-tax collection.

The minister says shortages of gas and electricity prevented many industries, including the ready-made garment sector, from operating at full capacity, leading to lower production and profitability.

Higher lending rates and the depreciation of the taka against the US dollar further increased operating costs, squeezing profits of large corporate taxpayers, one of the government's major sources of income-tax revenue.

On the trade front, imports of goods subject to 25-percent and 10-percent customs duties fell by 18 per cent and 37 per cent respectively in FY2025-26 compared with the previous year, reducing customs revenue.

Mr Chowdhury also says government measures aimed at keeping fuel prices stable -- including cuts in duties and taxes on petroleum products and the withdrawal of VAT on imported liquefied natural gas (LNG) -- had affected revenue collection.

Tax incentives for capital-machinery imports and a decline in luxury-vehicle imports also contributed to the shortfall.

The finance minister further states that the economic disruption caused by the July-August 2024 student-led mass uprising and the subsequent change in government led to prolonged stagnation in economic activities, disrupted supply chains and weakened business operations, resulting in lower corporate earnings and tax payments.

However, he says, ongoing automation of tax administration and stronger anti-evasion measures by the NBR were helping improve revenue collection and narrow the gap in recent months.

Meanwhile, the finance minister said, the government has intensified banking-sector reforms, strengthened deposit protection and tightened measures against loan defaulters in an effort to restore public confidence and improve financial stability.

Responding to a question from Cox's Bazar-3 lawmaker Lutfur Rahman in the Jatiya Sangsad, the minister says the reforms are being implemented under a comprehensive bank-resolution framework established through the Bank Resolution Act 2026.

He says the framework was first introduced through the Bank Resolution Ordinance 2025 and operationalised under the Bank Resolution Scheme 2025 before being enacted into law this year.

As part of the resolution process, five troubled Islamic banks have been merged to form Sommilito Islami Bank PLC, "a key step aimed at strengthening the banking system and addressing longstanding weaknesses in the sector".

The minister says depositor protection has also been expanded under the Deposit Protection Act 2026, with the maximum protected deposit amount doubled to Tk 200,000 from Tk 100,000.

In a significant policy shift, depositors of non-bank financial institutions (NBFIs), who were previously outside the safety net, have also been brought under the protection framework.

"A clear legal framework, transparent resolution mechanisms and stronger depositor safeguards will play an effective role in rebuilding confidence among depositors and stakeholders," Mr Chowdhury told the House.

The finance minister says the government and Bangladesh Bank have simultaneously stepped up efforts to recover defaulted loans and curb the accumulation of non-performing loans (NPLs).

The measures include policy support for recovering overdue loans, special resolution strategies for banks burdened with high levels of classified loans and stricter action against willful defaulters.

Banks have been instructed to strengthen their legal divisions and recover at least one per cent of outstanding default loans in cash through alternative dispute- resolution mechanisms by June 30, he says.

Bangladesh Bank has also updated credit-risk management guidelines, while the recovery progress from top 20 defaulters is being reviewed regularly at bankers' meetings.

Banks with classified loans exceeding 10 per cent of their portfolios have been directed to form dedicated recovery-monitoring teams.

To strengthen credit discipline, the central bank is implementing Expected Credit Loss (ECL)-based loan classification and provisioning under IFRS 9, a move aimed at improving governance and reducing lending risks.

The minister says licensed collateral valuation firms have also been authorised to independently assess pledged assets alongside banks' own valuations.

Mr Chowdhury says the government's broader reform agenda includes updating agricultural loan-rescheduling policies, publishing lists of defaulters and willful defaulters, revising incentives for regular borrowers and setting sector-wide borrowing limits for individual clients.

"Legal reforms are also being pursued to impose tougher penalties on habitual defaulters."

The government is considering including experienced bankers on the jury board of the Artha Rin Adalat and introducing measures to prevent defaulters from delaying recovery proceedings through writ petitions.

The minister says large companies seeking financing above Tk 10 billion would be encouraged to raise funds through bond issuance instead of relying heavily on bank borrowing, helping ease pressure on the banking system.

He also discloses that legislation is being prepared to facilitate the establishment of private-sector asset-management companies (AMCs) to help resolve distressed assets and strengthen long-term financial-sector stability.

Commercial solar power generation is likely to receive a zero percent income tax benefit in the upcoming budget, while the government is considering a five percent rebate on electricity bills for retail consumers who use solar power.

Besides, the proposed budget for the 2026-27 fiscal year may exempt imports of raw materials used to manufacture lithium-ion batteries, sodium-ion batteries and lithium-ion battery packs from duties and taxes until 2030.

These batteries are widely used in solar power systems. Imports currently face a total tax incidence of about 60 percent.

Finance ministry officials familiar with the matter said a significant share of customs tax incentives in FY27 could be directed towards the solar sector as the government seeks to reduce dependence on conventional energy sources amid volatility in global fuel markets.

As part of its broader green energy agenda, the BNP government is also considering lowering advance income tax on electric vehicles (EVs) during registration and renewal.

The current levy of Tk 2 lakh would be reduced to Tk 25,000, Tk 50,000, Tk 75,000 and Tk 1 lakh, depending on vehicle capacity.

The proposed rates would apply to EVs with capacities of up to 200kW, 300kW, 400kW and above 400kW, respectively.

The government is also considering extending concessional import benefits to local EV parts makers, alongside manufacturers and assemblers.

“Duties on charging stations for e-bikes and EVs may also be reduced in the budget,” said one of the officials.

Finance Minister Amir Khosru Mahmud Chowdhury is expected to announce the measures when he presents the national budget in parliament on June 11.

Officials said the proposals have already received in-principle approval from Prime Minister Tarique Rahman at a high-level meeting last month.

Feroz Kabir, senior general manager of Runner Motors, which sells imported electric scooters, welcomed the proposals, saying they were in line with the global shift towards cleaner transport.

However, he said charging infrastructure remains a major concern.

“Government action will largely shape how EV demand grows,” said Kabir, adding that while most users still rely on home charging, a structured charging network will be crucial for wider adoption.

He said consumer acceptance is rising as vehicle range, comfort and practicality have improved. Although EVs cost more upfront, buyers focus on savings in day-to-day use.

Zakir Hossain Khan, chief executive officer of the Change Initiative, said the government’s green transition efforts should be accompanied by a broader overhaul of renewable energy and EV policies.

He argued that the current tax regime creates distortions and inefficiencies, noting that even low tariffs can lead to complex customs assessments and the risk of misclassification.

“We should move towards zero duty. This already exists in the garment sector.”

Khan also criticised the wide disparity between the taxation of fossil fuels and clean energy.

“For fossil fuel, when the government is giving zero or 1 percent duty, but here they are charging up to 65 percent. That is tax injustice,” he said.

He argued that energy taxation should be based on consumption rather than supply chains.

Last week, the Centre for Policy Dialogue (CPD) proposed a package of fiscal reforms to accelerate Bangladesh’s green energy transition.

The think tank called for the removal of advance tax on solar and wind equipment, lower customs duties on lithium-ion batteries, the elimination of supplementary duty on energy storage systems and reduced taxes on electric vehicles.

CPD recommended scrapping the existing 7.5 percent advance tax on solar and wind equipment, which raises total tax incidence to between 28 and 31 percent and increases project costs.

It also proposed reducing customs duty on lithium-ion batteries from 25 percent to 5 percent and eliminating the 20 percent supplementary duty on energy storage systems. According to the think tank, these measures would significantly lower tax burdens and support renewable energy integration.

On electric vehicles, CPD called for the removal of the 20 percent supplementary duty and the three percent regulatory duty, while reducing customs duty from 25 percent to 10 percent.

CPD said EVs currently face the highest tax burden among all energy-transition technologies.

China is preparing to spend around 2 trillion yuan ($295.43 billion) over the next five years on building data centers ​across the country, Bloomberg News reported on Tuesday, as ‌Beijing looks to challenge the US in the intensifying AI race.

National Development and Reform Commission is among key government agencies drafting a blueprint ​to build a network of inter-connected computing hubs across ​the country, the report said, citing people familiar ⁠with the matter.

China's new five-year policy blueprint laid out its ​ambitions to aggressively adopt AI throughout the world's second-biggest economy and dominate ​emerging technologies such as quantum computing and humanoid robots.

State firms such as China Mobile and China Telecom will operate the bulk of the data ​centers and ensure they are connected, according to the ​Bloomberg News report.

The idea is to rely on local suppliers, including Huawei Technologies ‌for ⁠at least 80 percent of technology such as AI chips, effectively squeezing out Nvidia and Advanced Micro Devices, the report said, adding that the data-center blueprint remains in early discussions and ​details could change.

This ​comes as Big ⁠Tech companies in the US are expected to spend more than $700 billion this year to ​fund their AI buildout plans.

China Mobile, China Telecom ​and ⁠National Development and Reform Commission did not immediately respond to Reuters' requests for comment.

Reuters reported last year that the Chinese government issued ⁠guidance ​requiring new data center projects that ​have received any state funds to only use domestically made AI chips.

Oil prices fell on Tuesday, ‌erasing most of the previous session’s gains, after Iran and Israel said they had halted attacks on each other following an appeal from US President Donald Trump, though both sides warned they could resume hostilities.

Brent ​crude futures were down $1.33, or 1.4 percent, at $92.92 a barrel at 0741 GMT, while ​US West Texas Intermediate declined $1.73, or 1.9 percent, to $89.57 a barrel.

The market has been here before, said PVM Oil Associates analyst Tamas Varga, referring to hopes for an end ​to hostilities that could then end the three-month war in the Middle East.

Still, in the absence ​of any other movers in the market, prices fell after Iran and Israel said they had now halted attacks on each other.

Renewed Israeli strikes on Iran and attacks in Lebanon over the weekend had ​pushed oil prices up 5 percent on Monday.

“In the meantime, global oil inventories keep depleting and ​as data, whether weekly or monthly, becomes available, realization of dangerously low oil stockpiles worldwide could intensify ‌the ⁠race for available barrels pushing Brent back above $100 once again,” Varga said.

Tehran has continued to block most shipping through the Strait of Hormuz, which before the war carried a fifth of the world’s crude oil and liquefied natural gas. Washington has imposed its own blockade of ​Iranian ports.

Also helping ​to keep a lid ⁠on prices was a drop in China’s imports of crude, which were down 29 percent to their lowest levels in eight years last month. ​In April, imports fell to a of 9.3 million bpd, with ​refiners in ⁠the world’s largest oil importer to offset an even steeper decline from an average of 11 million bpd prior to the US-Israeli war on Iran.

On Monday, US forces disabled an ⁠unladen oil ​tanker in the Gulf of Oman after it attempted ​to sail to an Iranian port in violation of the ongoing blockade against Iran, the US military said.

Finance Minister Amir Khosru Mahmud Chowdhury has informed parliament that the government has taken a tough stance against major irregularities and scandals in the capital market.

He said legal action has been taken against individuals and institutions involved in several high-profile cases of financial misconduct and market manipulation during the Awami League regime.

According to the finance minister, the reconstituted Bangladesh Securities and Exchange Commission (BSEC) has completed inquiries and investigations into 12 separate incidents.

Responding to a question from Sirajganj-1 lawmaker Md Selim Reza in parliament today (9 June), he said a five-member special investigation committee formed by the BSEC after 5 August 2024 had submitted reports on various irregularities. Based on those findings, punitive measures have been taken against a number of individuals and organisations.

He said investors had suffered due to long-running irregularities and market manipulation in the stock market. The current government is working to ensure proper investigations and accountability for those responsible.

The finance minister told parliament that one of the most notable actions involved former BSEC chairman Shibli Rubaiyat-Ul-Islam. Following investigations into the Beximco Green Sukuk and IFIC Guaranteed Township Green Sreepur Zero Coupon Bond issues, he was declared permanently ineligible and banned for life from all capital market-related activities in Bangladesh.

The investigation findings were also forwarded to the Anti-Corruption Commission (ACC) for possible money laundering allegations against him. Former BSEC commissioner Shamsuddin Ahmed was also banned from market activities for five years in connection with the same investigation.

In a separate action relating to the IFIC Guaranteed Township Green Sreepur project, former prime minister Hasina's private industry and investment adviser and former IFIC Bank chairman Salman F Rahman was permanently barred from capital market activities and fined Tk100 crore.

In the same case, former IFIC Bank vice-chairman Ahmed Shayan Fazlur Rahman received a lifetime ban and a Tk50 crore fine.

The finance minister said that as of 13 May 2026, authorities had completed 114 inquiries, 12 investigations and 64 inspections related to stock market scandals and market manipulation.

During this period, fines totalling Tk1,496.64 crore were imposed on various individuals and institutions. At the same time, 675 enforcement actions were carried out, while 16 matters were referred to the ACC and other relevant agencies for further investigation.

In connection with market manipulation, Beximco Limited, Md Abul Khayer Hiru and others were fined a combined Tk700.63 crore.

The appointment of LR Global Asset Management Company as manager of certain mutual funds has also been cancelled.

In addition, several former officials of IFIC Investments Limited, including its former chief executive officer, have been banned for various periods and fined. Several credit rating agencies have also been penalised.

In relation to irregularities involving Quest BDC, LR Global Asset Management's responsibility for managing mutual funds was revoked, while one of the firm's senior executives was permanently barred from the market.

Separate investigations have also been conducted into Ring Shine Textiles, Fortune Shoes, ACME Pesticides and Al-Amin Chemical. In some cases, show-cause hearings have been completed, while others have been referred to the ACC over allegations of corruption and money laundering.

The finance minister noted that the commission is currently unable to take action in a case involving the IPO of Best Holdings due to a court stay order. However, the matter has been referred to the ACC.

Investigations involving Coppertech Industries, Chittagong Stock Exchange and ABG Limited are also ongoing. The commission will take final decisions after completing further reviews.

The finance minister further said that several new regulations are being drafted to strengthen transparency and accountability in the capital market. These include a whistleblower protection regulation, corporate governance regulations, an audit firm registration policy and corporate restructuring guidelines.

He added that regular investor education programmes are being conducted to raise awareness. Educational content is being disseminated through television, social media and online platforms, while training programmes are also being carried out across the country.

More than 30 per cent of food produced in South Asia is lost or wasted every year, enough to feed nearly 300 million people, according to a World Bank report.

Prevention of food loss or waste is one of the key measures that holds the key to the future of South Asia's food economy beyond production alone, it says, adding that by transforming food systems from farm to market, the region can generate millions of jobs, reduce food loss, improve nutrition, attract investment and strengthen exports.

The report says South Asia's agriculture sector, valued at more than USD 700 billion annually, has the potential to unlock millions of jobs and billions in investments through food systems transformation, according to the World Bank.

With millions of young people entering the workforce every year, creating sustainable jobs has become one of the region's most pressing priorities. The World Bank says transforming food systems beyond the farm can unlock significant opportunities for employment, investment, economic growth and poverty reduction.

The report by the World Bank-led South Asian Policy Leadership for Improved Nutrition and Growth (SAPLING) was presented at a high-level regional policy dialogue in Ahmedabad today.

The region's agriculture sector employs nearly 43 per cent of the workforce. However, despite its scale, agriculture contributes only around 16 per cent of the region's GDP, the report says.

Experts emphasised that the next phase of agricultural transformation lies not merely in increasing production but in expanding food processing, storage, logistics, marketing and value addition. These activities can create millions of productive jobs while reducing food losses and increasing farmers' incomes, the report says.

According to the World Bank report, South Asia possesses strong fundamentals to emerge as a global leader in food systems. Rapid urbanisation, a growing middle class, rich agro-biodiversity and rising demand for safe and high-quality processed food are creating new opportunities for investment and innovation.

To accelerate this transformation, the World Bank Group is advancing a combined approach through AgriConnect and SAPLING.

AgriConnect, a global platform, aims to connect 300 million farmers to markets by 2030 through investments in infrastructure, policy reforms and private capital mobilisation. The initiative is already supporting projects and reforms across countries including India, Bangladesh and Sri Lanka.

SAPLING serves as a regional platform that brings together governments, investors, development partners and innovators to promote policy reforms, develop investment pipelines and scale successful solutions across the region.

Participants at the SAPLING High-Level Policy Dialogue highlighted the importance of coordinated action by governments, businesses, investors and development institutions in the region.

Investors were encouraged to support cold chains, warehousing, logistics hubs, processing clusters, agro-industrial parks and emerging agri-enterprises. Companies were urged to build integrated value chains, adopt digital technologies for traceability and quality assurance, and invest in workforce skills and capacity building.

The report suggests policymakers promote food processing zones, improve logistics infrastructure, simplify food safety and certification systems, strengthen public-private partnerships and create a more investment-friendly business environment.

It says international financial institutions can play a catalytic role by expanding blended finance mechanisms, supporting policy reforms linked to investment opportunities and reducing risks associated with private sector investments in food systems.

The two-day South Asian dialogue brings together around 200 participants, including policymakers, industry leaders, development partners, innovators, researchers, start-ups and representatives from South Asian countries, to deliberate on strengthening food processing ecosystems and building resilient, inclusive and sustainable food systems in the region.

The stock market extended its gains today (9 June) after a brief consolidation phase, driven by investor optimism over potential market-friendly measures in the upcoming national budget.

The benchmark DSEX index at the Dhaka Stock Exchange (DSE) rose 36 points to 5,519, while turnover jumped 29% to a multi-week high of Tk1,387 crore.

Market analysts attributed the rally to expectations of fiscal policies aimed at stimulating private sector growth and boosting investor confidence. According to EBL Securities, strong demand for attractively valued stocks helped sustain the upward momentum, outweighing concerns over the withdrawal of floor prices from two heavyweight stocks – Beximco Limited and Islami Bank.

Market breadth remained firmly positive, with 246 stocks advancing, 100 declining and 51 remaining unchanged.

The insurance sector dominated trading activity, with general insurance stocks accounting for 24.4% of total turnover. Engineering and pharmaceuticals contributed 11.8% and 9.4%, respectively.

Among sectors, services posted the highest gain at 4.4%, followed by non-bank financial institutions and general insurance. In contrast, the miscellaneous sector fell 4.4%, largely due to a sharp decline in Beximco after the removal of its floor price. Cement and food sectors also posted marginal losses.

BD Finance topped the gainers, hitting the 10% upper circuit limit, followed by Shyampur Sugar, Peoples Insurance and Dulamia Cotton.

Beximco Limited and Islami Bank, however, fell 9.99% and 9.81%, respectively, after the floor price was withdrawn, both hitting their lower circuit limits. Despite the declines, the broader market remained resilient.

At the Chittagong Stock Exchange (CSE), the CSCX index edged up 0.83 points, and the CASPI gained 3 points. Turnover, however, fell 45% to Tk23.72 crore.

Chinese exports surged by almost a fifth last month, official data showed Tuesday, as shipments of tech components and machinery helped the world’s second-largest economy weather pressure from the Middle East war.

The spike marks a bright spot for the Chinese leadership as it struggles to kickstart growth following the pandemic and amid trade frictions with the United States.

The 19.4 percent year-on-year jump in overseas shipments was driven largely by artificial intelligence and auto exports, the General Administration of Customs (GAC) said, and topped the 15.0 percent forecast in a Bloomberg survey of economists. It was also faster than April’s 14.1 percent jump.

Imports soared 27.4 percent year-on-year in May, topping the 26.0 percent estimated in the Bloomberg survey. That will come as some comfort to Beijing as it looks to shift the country’s drivers of growth away from manufacturing and towards domestic consumption.

Exports to the United States surged 35.4 percent on-year, as Donald Trump visited Beijing with trade high on the agenda. The surge also came from a low base of comparison after the US president sparked a trade war with Beijing in April last year.

Shipments to the world’s biggest economy hit $39 billion, according to the GAC, up from $28.8 billion 12 months ago.

“The strong export growth shows the competitiveness of the Chinese firms in the international market,” said Zhiwei Zhang of Pinpoint Asset Management.

“It helps to offset some of the weakness in the domestic demand.”

But, Zhang warned, there was still a risk of “potential escalation of trade tension between China and the major trading partners such as Europe”.

The European Union said last month it needed to act more forcefully to rebalance its trade relationship with China.

Talks held among European commissioners on protecting critical industries from Chinese rivals will feed further discussions at the G7 heads of state meeting in France and an EU leaders’ summit in Brussels this month.

Last month, China kept a trade surplus of $105 billion, from $85 billion in April, a gap that is worrying for European economies and other governments.

Experts are increasingly warning of a “China shock 2.0”, with a glut of inexpensive goods made in the Asian powerhouse threatening manufacturers around the world as trade deficits widen.

Despite surging trade, weaker demand and rising energy costs caused by the Middle East war have started to weigh on economic growth.

China’s factory activity was flat last month after two months of expansion, official data showed.

The country’s factories are facing higher costs with the prices of raw materials rising, particularly in the energy and chemical sectors, as shipping constraints remain a problem.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) yesterday identified the volatile global situation, US reciprocal tariffs, high bank interest rates, poor port operations, and LDC-related issues as the main reasons for the decline in garment exports over the past year.

"Both domestic and international factors are responsible for the slowdown," said BGMEA President Mahmud Hasan Khan after an emergency board meeting on the export slowdown held at the BGMEA office in Dhaka.

In the July–May period of the 2025–26 fiscal year, garment exports totalled $35.31 billion, posting a 3.41 percent year-on-year fall, according to the Export Promotion Bureau.

Khan said weakening global demand had prompted Western retailers and brands to hold back orders, as unsold inventory piled up on their shelves.

Uncertainty over US President Donald Trump's reciprocal tariffs — which were revised several times — compounded buyers’ hesitation.

The US–Israel war involving Iran disrupted shipment routes, raised air freight costs, extended lead times, and reduced buyer visits to Bangladesh, Khan said.

Small and medium enterprises were hit hardest as brands grew cautious about placing orders.

On the domestic front, high bank interest rates have eroded slim profit margins, discouraging entrepreneurs from expanding operations. An energy crisis has also forced factories to run at 60 to 70 percent capacity.

Bangladesh's impending graduation from least developed country (LDC) status has added further uncertainty, as buyers remain unsure whether the government's application for a three-year deferment will be granted.

Studies suggest Bangladesh could lose $17.5 billion in annual exports — 73 percent of which is LDC-induced. The country also lacks GSP Plus access to the European Union, where 49.15 percent of its apparel is destined.

Khan said he plans to prepare a policy paper and consult stakeholders, trade analysts, and economists before engaging the government on remedial measures.

A litmus test comes for a BNP regime after 19 years as the new government prepares to present tomorrow a hugely deficit budget after return to power through the much-hyped February-12th polls.

A BNP-led government had last presented its budget for the nation for the fiscal year 2006-07 under then finance minister M. Saifur Rahman.

Finance and Planning Minister Amir Khosru Mahmud Chowdhury is expected to place his maiden budget for FY2026-27 in parliament tomorrow, against the backdrop of political upheavals and economic disruptions.

The proposed budget size has been set approximately at Tk 9.38 trillion with a projected deficit of Tk 2.43 trillion, according to some officials at the finance division.

To finance the deficit, the government pins hope on mobilising Tk 1.27 trillion, or about 52 per cent of the gap, from domestic sources, mostly from banking sources. The remaining Tk 1.16 trillion, or around 48 per cent, is expected to come from foreign loans and grants.

Of the domestic financing target, Tk 1.12 trillion is likely to be borrowed from the banking system while Tk 150 billion will be raised through savings certificates and other sources.Politics

The budget is expected to be presented under the theme 'Economic Democratisation and Deregulation: Bangladesh's Journey towards a Trillion-Dollar Economy'.

The proposed budget will be the first full-fledged fiscal plan of the BNP-led administration and is expected to be presented in the presence of Prime Minister Tarique Rahman and other MPs-mostly new to the parliamentary business and budget-making.

The government has set GDP-growth target at 6.5 per cent for FY2026-27 and aims to bring inflation down to 7.5 per cent.

However, inflation remained elevated at 9.42 per cent in May, according to the latest data from Bangladesh Bureau of Statistics (BBS).

Total revenue mobilisation which has an ambitious target of Tk 6.95 trillion is also anticipated to remain a major concern.

Data from the National Board of Revenue (NBR) show that the revenue shortfall reached Tk 1.045 trillion during the first 10 months of FY2025-26.

Against a revised target of Tk 4.31 trillion, revenue collection stood at Tk 3.27 trillion through April, highlighting the difficulty of achieving fiscal targets "amid a challenging economic environment", economists predict.

They say curbing inflation, strengthening revenue collection and reducing reliance on bank borrowing will be among the government's key economic priorities in the coming fiscal year.

"The budget will be closely watched for signals on whether the government intends to continue its reform agenda or not," says Dr Mustafizur Rahman, distinguished fellow of the CPD.

Private investment, which believed to remain at the bottom, could gain momentum if the budget includes measures to stimulate investment activity, Dr Rahman said recently.

Bangladesh is considering the possibility of joining alternative international payment systems beyond dollar-dominated networks as discussions take place on China's Cross-Border Interbank Payment System (CIPS) alongside potential Panda Bond financing.

A delegation from China's state-owned Export-Import Bank held discussions with Bangladesh Bank officials today (9 June) regarding CIPS integration and Panda Bond issuance. Central bank officials said there is no policy objection if any commercial bank shows interest in joining the CIPS platform independently.

The CIPS is a China-backed cross-border payment and settlement system launched in 2015 to facilitate renminbi (RMB) transactions and expand the global use of the Chinese currency.

Bangladesh Bank officials described it as an additional international payment channel alongside existing systems such as SWIFT, saying it could broaden options for trade and business payments.

A senior Bangladesh Bank official said, "The more channels available for international payments, the more opportunities it creates for trade and business."

He added that banks interested in joining would need to express their intent and proceed independently, with no immediate regulatory barriers or separate approval requirements at this stage. "Once a bank begins the actual process, the necessary issues will become clearer. But for now, our stance is positive," he said.

Central bank officials said China had earlier proposed linking Bangladesh to its payment network, and the idea gained traction after Western sanctions on Russian banks highlighted the need for alternative global financial infrastructure.

In March 2024, China's Ambassador to Bangladesh, Yao Wen, met the then Bangladesh Bank governor to discuss CIPS, with officials suggesting it could serve as a parallel global payment channel alongside SWIFT.

However, officials stressed that the effectiveness of CIPS would depend heavily on the internationalisation of the renminbi. One official said, "If the use of RMB in international trade increases, the usage of this platform will also expand."

They added that Bangladesh's trade with China remains heavily import-oriented, limiting immediate benefits unless Chinese investment, loans, and project financing increase substantially to generate RMB-based financial flows.

Panda bond financing

Panda Bonds also featured in the discussions as a potential tool for diversifying financing sources. These are yuan-denominated debt instruments issued in China's domestic bond market by foreign governments, international financial institutions, or multinational corporations, allowing them to raise funds directly from Chinese investors in RMB.

While participation is primarily led by Chinese institutional investors, foreign investors may also take part in certain cases. Sovereign-level decisions on issuance would be led by the Ministry of Finance, according to the central bank officials.

Bida meeting with Chinese delegation tomorrow

A separate meeting between the Bangladesh Investment Development Authority (Bida) and a delegation from China Exim Bank is scheduled for tomorrow (10 June), where investment-related issues are expected to be discussed, according to officials.

Bida Executive Member and Head of Business Development Nahian Rahman Rochi said the meeting would focus on broader investment cooperation with the Chinese delegation.

Experts said CIPS could emerge as a long-term strategic option for Bangladesh but cautioned that its benefits would depend on deeper economic integration.

Chairman of Research and Policy Integration for Development (RAPID) Mohammad Abdur Razzaque said, "If Chinese investment, loans, and project financing increase, cross-border settlements will become easier using those financial flows. Otherwise, Bangladesh may again have to rely on the US dollar for transactions."

He added, "This could open up a window of opportunity. However, the extent of real benefits will depend on how deeply Bangladesh-China economic relations and transaction flows develop in the future."

Bangladesh’s air conditioner market is experiencing a subdued summer season this year. Frequent rainfall in April and May, coupled with fewer heatwaves than in previous years, has weakened demand for cooling appliances, according to industry stakeholders.

Sales remained below expectations during what is traditionally the peak period for AC purchases.

While demand persists, lower-priced brands have outperformed premium models as inflation continues to squeeze household budgets, market insiders said.

Nearly half of all annual sales are typically generated during the April-May period. Among household buyers, 1.5-tonne inverter AC units remain the most sought-after models
Demand rose modestly ahead of Eid-ul-Azha at the end of May, but the increase was insufficient to significantly lift overall market activity. Rising prices of essential goods have prompted consumers to curb discretionary spending on products such as air conditioners, they added.

According to Md Bazlur Rashid, a meteorologist at the Bangladesh Meteorological Department (BMD), temperatures during April and May remained below seasonal norms, while rainfall in April was more than 76 percent above the historical average.

However, he noted that elevated humidity levels made conditions feel considerably hotter.

Average temperatures this season ranged between 34°C and 35°C, the meteorologist said, which is not unusually high except in the Rajshahi region.

Frequent rainfall helped prevent widespread heatwave conditions, although temperatures have risen slightly over the past week. BMD officials also forecast 8 to 10 heatwaves over the next three months through August.

Industry estimates put annual AC demand at 550,000 to 600,000 units, with nearly half of total sales typically generated between April and May. Among household buyers, 1.5-ton inverter ACs remain the most popular choice, followed by 2-ton units.

“AC sales have fallen by around 30 percent this season compared with the same period last year due to unfavourable weather conditions and persistently high inflation,” said Md Nurul Afser, deputy managing director of Electromart.

Traditionally, AC sales surge between March and June, accounting for nearly half of annual demand, he said. However, frequent rainfall in April and May significantly dampened sales, particularly among first-time buyers.

Afser added that rising prices of essential goods have eroded the purchasing power of middle-income households, affecting discretionary spending.

Despite keeping prices unchanged from last year and offering discounts, sales have yet to meet expectations.

“If the monsoon is delayed, the market could still recover some lost sales this year. Otherwise, prospects for the industry will remain weak,” he said.

Mahmudul Islam Raz, brand manager at Rangs eMart, said sales increased slightly ahead of Eid-ul-Azha, but overall demand remained largely unchanged throughout April and May.

“Consumers are prioritising essential spending over discretionary purchases. If people struggle to meet daily expenses, they are unlikely to spend on products such as ACs,” said Salim Ullah Salim, director (marketing) of Jamuna Electronics & Automobiles Ltd.

Md Rashedul Islam, head of business at Transcom Digital, said AC sales during April and May exceeded 2025 levels but remained below those recorded in 2024.

Transcom sold around 4,500 units during the period, compared with 4,000 units a year earlier and 7,000 units in 2024. He attributed the improvement primarily to operational efficiencies rather than stronger underlying demand.

Inflation continues to weigh on consumer spending, while demand for lower-priced Chinese brands has outpaced that for premium Japanese brands as buyers become increasingly price-sensitive, he said.

According to him, many consumers who would normally consider premium brands are now opting for more affordable alternatives to manage household expenses.

Walton, however, reported a different trend.

“Demand for air conditioners has increased in recent weeks as temperatures have risen across the country,” said Md Tanvir Rahman, chief business officer of Walton Air Conditioner.

He said showroom footfall, online enquiries and orders have increased compared with the same period last year. Growth has been particularly noticeable among middle-income households, while instalment facilities have encouraged more consumers to make purchases despite broader economic pressures.

Rahman said flexible financing options have become an increasingly important factor in purchasing decisions, allowing customers to spread payments over several months.

As temperatures continue to rise, he expects demand to remain strong in the weeks ahead.

ChatGPT maker OpenAI confidentially filed for a US initial public offering recently, the company said on Monday, joining rival Anthropic in a push towards the stock market as investors seek exposure to the artificial intelligence boom.

OpenAI did not disclose the size or terms of the offering, and said a timeline has not yet been determined. "It may be a while because there are things we want to do that are likely easier as a private company," it said in a statement.

Reuters had reported that the AI giant is targeting a valuation of up to $1 trillion in a stock market debut that could come as early as September.

At that valuation, OpenAI would set the stage for a trio of trillion-dollar-valuation companies debuting rapidly, which together are seen as the most consequential test of investor appetite for high-growth technology stocks in the last 10 years.

Elon Musk's SpaceX was the first off the block, filing for an IPO that would rank as the largest in history if completed, with the company pursuing a $75 billion offering at a $1.75 trillion valuation.

Anthropic, the company behind the viral coding assistant Claude Code, said on 1 June it had confidentially filed for a US initial public offering, weeks after raising $65 billion in a funding round that valued it at $965 billion.

"OpenAI is keeping options open as Anthropic edged ahead with its filing after a monster funding round," said Michael Ashley Schulman, a partner at Cerity Partners.

On prediction markets, where traders wager on the outcome of future events, most participants had expected OpenAI to file for an IPO before Anthropic.

The AI era

The IPOs of Anthropic and OpenAI would crystallise a transformative period for the technology industry and global markets, with artificial intelligence rapidly emerging as the defining investment theme of the decade.

OpenAI said earlier this year that it was raising $110 billion at an $840 billion valuation from a roster of heavyweight backers including SoftBank, Amazon and Nvidia.

At the time, it also disclosed that ChatGPT had more than 900 million weekly active users and over 50 million consumer subscribers.

The IPO filing follows OpenAI renegotiating its partnership with Microsoft, one of its earliest investors, which allowed the AI pioneer to forge new partnerships with firms such as Amazon.com and Alphabet's Google.

The Windows maker's early investment, totalling $13 billion since 2019, helped pave the way for OpenAI's rapid rise and powered growth at Microsoft's Azure cloud-computing business.

In March, OpenAI said it was generating $2 billion in monthly revenue and growing roughly four times faster than companies that defined the internet and mobile eras, including Alphabet and Meta.

That compares with about $1 billion in quarterly revenue at the end of 2024.

OpenAI told investors during its most recent fundraising round that it did not expect to be profitable until 2030, according to a source familiar with the matter.

Challengers gain momentum

Yet the industry OpenAI launched has quickly become crowded and investors are scrutinising whether the AI sector's meteoric rise can be sustained.

Anthropic has emerged as one of the biggest rivals, with soaring demand for its Claude AI from software developers to handle their computer programming, and some firms deploying its top-shelf model Mythos to unearth vulnerabilities in their code.

While the blockbuster offerings could inject fresh momentum into the US IPO market, some bankers warn they might also soak up capital that could otherwise flow to smaller deals.

"What OpenAI does not want is for the public market capital to exhaust itself," said Gil Luria, managing director of D.A. Davidson. "Not only are SpaceX and Anthropic ahead of it in line to IPO, large public competitors could also raise tens of billions of dollars each in public market secondary issuances, as Google just completed last week."

Musk-led SpaceX goes public this week.

Nonprofit roots spark legal dispute

OpenAI was founded in 2015 as a research-focused nonprofit, but created a for-profit arm four years later to help fund the soaring costs of developing artificial intelligence systems.

Its unusual structure, which gave the nonprofit control over the for-profit entity, came under intense scrutiny in late 2023 when CEO Sam Altman was briefly ousted before returning days later after employees revolted.

In December 2024, OpenAI unveiled plans to overhaul its structure by creating a public benefit corporation, saying the move would help it raise far more capital while easing restrictions imposed by its nonprofit parent.

OpenAI's overhaul quickly became controversial after sharp criticism from its early backer, Musk, who later sued OpenAI and accused Altman and other executives of turning the nonprofit into a vehicle for private enrichment.

A US jury in May ruled against Musk in his lawsuit, finding the AI company not liable to the world's richest person for having allegedly strayed from its original mission to benefit humanity.

The unanimous verdict removed a key overhang on the IPO, with analysts saying it cleared a major legal hurdle.

Japan will provide Bangladesh a concessional loan of around $312 million to help bolster energy security and economic resilience as the conflict in the Middle East places growing strain on the country’s finances.

To that end, officials from both sides signed the “Emergency Support Loan for Enhancing Economic Resilience and Stable Energy Supply” agreement in Dhaka yesterday, according to a press statement.

Md Shahriar Kader Siddiky, secretary of the Economic Relations Division (ERD), and Takahashi Junko, chief representative of the Japan International Cooperation Agency (Jica) Bangladesh Office, signed the documents on behalf of their respective sides at the ERD in Sher-e-Bangla Nagar.

The loan -- equivalent to 50 billion yen and to be co-financed by the Asian Development Bank (ADB) -- is intended to help Bangladesh address socio-economic pressures stemming from higher energy prices and supply uncertainties linked to the Middle East conflict involving the US, Israel and Iran.

The signing comes as Bangladesh faces mounting fiscal pressure from the conflict. Finance Minister Amir Khosru Mahmud Chowdhury told parliament yesterday that preliminary estimates suggest the country will require an additional Tk 42,600 crore in subsidies for the oil, gas, electricity and fertiliser sectors by June of FY2025-26.

Preliminary estimates suggest the country will require an additional Tk 42,600 crore in subsidies for oil, gas, electricity and fertiliser sectors by June, finance minister said in parliament yesterday
He said the conflict has already affected fuel and fertiliser prices, import and transport costs, inflation, foreign exchange management, remittances and overseas employment. The Middle East also remains a key destination for Bangladeshi migrant workers, the minister noted, warning that prolonged instability could threaten remittance inflows and job opportunities abroad.

The Japanese loan is part of a broader push for external budget support.

The Daily Star reported on May 3 that Bangladesh expects around $3 billion from five multilateral and bilateral lenders by mid-June, including $500 million from Jica. The effort followed a government assessment estimating that an additional $4 billion in emergency budget support would be needed between May and June to offset higher fuel and fertiliser import costs resulting from the conflict.

The loan also marks the first Japanese official development assistance (ODA) project under POWERR Asia, a regional initiative launched by Japanese Prime Minister Takaichi Sanae in April. The initiative aims to strengthen energy and resource resilience across the region through emergency support and longer-term cooperation in energy procurement, supply-chain stability, diversification and industrial resilience.

According to the Japanese Embassy, the financing will also support the government’s efforts to strengthen fiscal management, improve the investment climate and maintain a stable energy supply -- areas considered critical to sustaining economic stability and long-term growth.

Speaking at yesterday’s signing ceremony, Japanese Ambassador Saida Shinichi, who exchanged notes for the loan with Siddiky, described the agreement as a reflection of Japan’s enduring commitment to Bangladesh at a critical juncture.

He called Bangladesh an important strategic partner and reaffirmed Japan’s support for the country’s stability, prosperity and sustainable development.

Global digital operator Veon has expressed interest in exploring a strategic combination with Bangladesh’s state-owned mobile operator Teletalk as part of a broader plan to expand its digital footprint and investments in Bangladesh.
In a letter sent to Prime Minister Tarique Rahman recently, Veon said it was prepared to significantly increase its investment in Bangladesh and sought discussions on potential collaborations involving strategic public assets.
The proposal includes a possible strategic combination with Teletalk Bangladesh Limited and the acquisition of Nagad from the Bangladesh Post Office.“Veon and Banglalink believe Bangladesh has the potential to become one of Asia’s most dynamic digital economies and are committed to supporting that vision,” said Johan Buse, CEO of Banglalink, a wholly owned subsidiary of Veon.
Veon said it was prepared to significantly increase its investment in Bangladesh and sought discussions on potential collaborations involving strategic public assets
“Building on more than $2.5 billion invested in Bangladesh over the past 21 years, we are keen to make significant investments in the near term, supported by a conducive and predictable regulatory environment,” he said.

“As a digital operator, we are focused on making lives better and simpler by expanding access to connectivity, digital services, affordable devices, and innovative solutions in areas such as healthcare, education, and agriculture, helping accelerate digital transformation and sustainable economic growth,” said the CEO of the Banglalink, which currently has 3.74 crore customers as of April.
Veon’s proposal comes as several other foreign companies -- including Malaysia’s Axiata, as well as Japanese and South Korean firms -- have also expressed interest in investing in or acquiring a stake in Nagad, according to sources.

Several local companies have also explored potential acquisition opportunities.
The mobile financial service provider’s large customer base and significant transaction volume have made it a lucrative target for both domestic and international investors.However, no company has submitted a formal financial offer so far. Sources said uncertainties surrounding Nagad’s ownership structure, allegations of illegal e-money creation, and its substantial liabilities have discouraged both local and foreign investors from making concrete proposals.

Veon said it has already applied for a digital bank licence and received a no-objection certificate from Bangladesh Bank to operate as a payment service provider.

Building on its digital banking and mobile financial services experience in multiple markets, the company said it was ready to deploy more than $100 million in immediate investment in Bangladesh.

“Veon stands ready to significantly expand its investment in the country and partnership with the government,” the company said in the letter.

The Dubai-headquartered company argued that a partnership involving strategic public assets could help strengthen national digital infrastructure and accelerate innovation.

“We believe Veon’s digital-first operating model, execution capability and capital strength can deliver measurable improvements in service quality, financial inclusion and long-term sector sustainability,” it said.

Veon operates in Bangladesh through Banglalink and says it has invested more than $2.5 billion in the country over the past two decades.

According to the letter, the company has also contributed over $4 billion to the national exchequer during the period.

The company said a stable and investment-friendly policy environment would be essential for unlocking the next phase of digital investment, innovation and job creation in Bangladesh.

The amount of money Bangladesh collects in government revenue each year relative to the size of its economy is among the lowest in the world, ranking just above war-torn Yemen and Sudan, according to data from the International Monetary Fund (IMF).

The shortfall leaves the government with less money to invest in health, education, infrastructure and other public services, while limiting its ability to respond to economic shocks.

This measure, known as the revenue-to-GDP ratio, stood at 8.34 percent in 2024, the lowest among Asian countries and many of Bangladesh’s peer economies.

There are at least half a dozen reasons why the government’s revenue compared with the size of the economy has remained low for such a long time.

According to the London-based International Growth Centre (IGC), Bangladeshis have weak trust in government spending because of high levels of corruption, which reduces willingness to pay taxes. Tax compliance also depends on the quality of public services people receive.

Meanwhile, economists say the low revenue-to-GDP ratio is also the result of a narrow tax base, the dominance of the hard-to-tax informal sector, generous tax exemptions and holidays, weak compliance and enforcement, and heavy reliance on indirect taxes instead of broad-based income and property taxes.

“Due to the country’s low revenue-to-GDP ratio, the government’s fiscal space remained limited over the years. It had negative consequences for development,” said Mohammad Abdur Razzaque, chairman of Research and Policy Integration for Development (RAPID).

As an example, the economist pointed to long-standing underinvestment in the health and education sectors.

He said Bangladesh’s spending on health and education is among the lowest in the world. As a result, the country has not achieved the expected growth in human capital. Other infrastructure projects that should have been developed also failed to materialise.

The RAPID chairman said the low revenue-to-GDP ratio supported economic growth up to a certain point because it benefited the private sector.

“With lower tax collection, people paid less tax and retained greater purchasing power, helping private sector growth,” he added.

HOW BANGLADESH COMPARES WITH ITS PEERS

In neighbouring India, the revenue-to-GDP ratio stands at 20.48 percent. It is at 12.67 percent in Pakistan and 13.68 percent in Sri Lanka. In Bhutan, government revenue amounts to 26.97 percent of GDP.

Among countries graduating from the least developed country (LDC) club, data for Lao PDR and Nepal were unavailable. Even so, Bangladesh ranked lowest within the group.

The IMF data showed that the Solomon Islands recorded a revenue-to-GDP ratio of 32.7 percent, while the figure stood at 14.58 percent in Cambodia and 20.13 percent in Senegal.

Internationally, a tax-to-GDP ratio of 15 percent is often regarded as a minimum benchmark. Falling below that level can hamper economic growth and development.

Below this threshold, government effectiveness, financial development and economic growth tend to stagnate. Yet more than 70 developing economies still collect less than 15 percent of GDP in taxes, constraining development and leaving governments vulnerable to economic shocks.

War-torn Sudan and Yemen recorded tax-to-GDP ratios of 2.93 percent and 6.44 percent, respectively. The figure was 7.55 percent in Ethiopia, which has faced prolonged political instability.

While these countries collect less than 10 percent of GDP in revenue, several countries, such as Austria, Belgium, Denmark, Dominica, Finland, France, Kiribati, Kuwait, Lesotho, Norway and Ukraine, collect more than 50 percent, according to IMF data.

HIGH TAX RATES, WEAK RETURNS

Razzaque said that despite weak tax collection, Bangladesh’s corporate tax rate is among the highest in the world. However, corporate tax is only one component of total government revenue.

He added that not only is revenue collection low, but part of the revenue that is collected is also wasted through inefficient spending, reducing the quality of public goods and services.

In a report, the International Growth Centre said corruption has significant negative effects on revenue collection. “Corruption, especially extreme levels of corruption, can significantly erode people’s trust in the system leading to tax evasion,” it said.

“The push to raise taxes in Bangladesh is contemporaneous with these excesses in government spending. Unsurprisingly, people are reluctant to forgo their earnings only to see them squandered, pushing taxpayers to seek out ways to evade taxes,” it added.

Jean Pesme, the World Bank’s division director for Bangladesh and Bhutan, wrote in a blog that although Bangladesh collects relatively little tax, some of its tax rates are higher than those of peer countries.

He said the real problem lies in a complex and distortionary tax system marked by multiple tax rates and large, regressive exemptions on value-added tax (VAT) and income taxes.

Pesme said, “Worryingly, tax exemptions are estimated to be nearly as large as the actual tax collection. Such distortions result in significant leakage of revenues, opportunities for corruption, and a relatively low share of individuals and businesses paying taxes.”

“Also, Bangladesh’s heavy reliance on trade-related taxes discourages trade, a key driver of economic growth, through high tariffs and supplementary duties that create an anti-exports bias.”

Bangladesh urgently needs bold and comprehensive tax reforms, combining policy changes with institutional restructuring and capacity building, he said.

An immediate priority is to rationalise tax exemptions and incentives and reform the VAT system. Expanding digital automation is also central to transforming tax administration, Pesme added.

BROADENING TAX NET THE KEY

Razzaque said the level of tax rates was not the main issue. Instead, expanding the tax net should be the priority.

He said many growth centres, such as rural bazaars and peri-urban industrial hubs, remain outside the tax system. These should be brought under tax coverage.

“As the tax net has not expanded, a large portion of our economy has still not been formalised,” said the economist.

According to Razzaque, Bangladesh also has significant gaps in income taxation. For example, land values are often underreported, reducing tax payments and depriving the government of revenue.

He said wealth has accumulated rapidly in Bangladesh. Citing a RAPID research, he noted that more than 50 percent of the country’s wealth is concentrated in the hands of just 1 percent of the population.

This has widened inequality, he said. “Policymakers should consider taxing wealth transfers between generations rather than focusing solely on a wealth tax.”

Tax collection must be digitalised to minimise evasion, he said. Greater emphasis should also be placed on direct taxes rather than indirect taxation.

The exodus of foreign capital from the country's stock market reached a new peak in May as international investors aggressively trimmed their positions in blue-chip and fundamentally strong companies.

Amid escalating geopolitical tensions in the Middle East and persistent domestic economic headwinds, foreign sales surged to Tk161 crore during the month, while fresh purchases dwindled to a negligible Tk6 crore.

This staggering imbalance highlights a deepening risk aversion among global fund managers, who appear to be prioritising liquidity and safe-haven assets over frontier-market exposure.

Data from the Dhaka Stock Exchange shows that the selling pressure was heavily concentrated in the market's most liquid and prestigious scrips.

Square Pharmaceuticals, long a staple of foreign portfolios, witnessed the highest sell-off, with overseas investors offloading shares worth Tk56 crore. This reduced their stake in the pharmaceutical giant from 15.11% in April to 14.81% by the end of May.

BRAC Bank followed closely, experiencing a Tk50 crore pull-out that saw foreign shareholding slide to 35.89% from 36.22%.

Other major financial and consumer staples were not spared either; Prime Bank saw Tk18 crore in foreign sales, while telecommunications leader Grameenphone and healthcare heavyweight Renata recorded outflows of Tk16 crore and Tk9.7 crore, respectively.

The sell-off was widespread, with foreign investors reducing their stakes in 25 different companies. Notable exits were also seen in Marico Bangladesh and City Bank, where investors withdrew Tk4.3 crore and Tk1.5 crore, respectively.

In a complete withdrawal, foreign investors liquidated their entire remaining position in Bangladesh National Insurance.

Overall, foreign turnover for the month stood at Tk167 crore, slightly higher than the previous month, but the composition of that turnover was almost entirely dominated by sales, leaving the net investment position deeply in the negative.

In contrast to the heavy selling, the appetite for fresh investment remained remarkably thin.

Foreign buyers increased their holdings in only 15 firms, with total purchase value amounting to just Tk6 crore – a sharp decline from the Tk12.06 crore invested in April and the Tk50 crore seen in March.

Beximco Pharmaceuticals emerged as the primary beneficiary of what little interest remained, attracting Tk4.40 crore in new foreign capital. Minor increases were also noted in Bangladesh Submarine Cable, Dutch-Bangla Bank, and Meghna Petroleum, though these inflows were far too small to offset the wider sell-off.

Market experts and researchers attribute this persistent retreat to a "perfect storm" of global and domestic factors.

A senior researcher at a leading brokerage firm said the optimism that emerged after the national election had largely dissipated amid escalating tensions in the Middle East involving the United States, Israel and Iran.

This geopolitical volatility has sent shockwaves through global energy markets, creating a climate of economic uncertainty that is particularly punishing for energy-import-dependent nations like Bangladesh.

For global investors, the looming threats of heightened inflation and energy insecurity have made the domestic equity market appear increasingly high-risk.

These external pressures have compounded long-standing domestic structural issues, including currency depreciation and difficulties in fund repatriation, which continue to weigh on the market's attractiveness.

However, in a bid to stem the tide and woo back international capital, the Bangladesh Bank recently introduced a landmark policy shift.

On 20 May, the central bank issued a circular eliminating the long-standing requirement for an auditor's certificate for every single transaction made by non-resident investors.

Previously, foreign investors were forced to obtain a certificate from a chartered accountant for every trade to determine capital gains tax before funds could be reinvested or moved abroad – a process that caused significant delays and increased compliance costs.

Under the new directive, authorised dealer banks will now handle the tax withholding directly from the sale proceeds, ensuring immediate credit to Non-Resident Investor Taka Accounts (NITA).

Analysts have hailed this as a fundamental change that removes a major administrative hurdle. While the May data reflect the panic that preceded this reform, market participants expect the streamlined process to stabilise foreign participation in the coming months as the operational ease of trading in Bangladesh improves.

The Bangladesh Bank's Board of Directors has decided to appoint administrators at five non-bank financial institutions (NBFIs) as a step towards closing or winding them down following years of widespread irregularities and scandals during the tenure of the previous government.

The decision was made at a board meeting held at the Bangladesh Bank head office yesterday (9 June), chaired by Governor Mostakur Rahman.

According to meeting sources, discussions covered nine financially distressed institutions. For the five earmarked for closure or liquidation, boards will be dissolved and administrators appointed, similar to the process followed for merged banks. The remaining four have been given three months to recover.

The five institutions marked for closure are FAS Finance, Far East Finance, Aviva Finance, Peoples Leasing and Financial Services, and International Leasing and Financial Services, according to Bangladesh Bank sources.

The four NBFIs given three months to recover are Bangladesh Industrial Finance Company (BIFC), Premier Leasing and Finance, GSP Finance, and Prime Finance.

A Bangladesh Bank official said the five institutions earmarked for closure hold deposits of approximately Tk2,700 crore from 27,000 individual depositors.

"Our first task is to dissolve the boards of these institutions. After that, administrators will be appointed in a similar process followed for the merged banks. Once administrators are in place, the process of returning depositors' funds will begin. Each individual depositor will receive up to Tk10 lakh."

He said only individual depositors at the five institutions will receive up to Tk10 lakh each, while corporate depositors will receive nothing for now but they will get back their funds only when non-performing loans of the institutions are recovered.

"Institutions are given a three-month timeframe to demonstrate the ability to repay individual depositors' principal within that period, or face the same resolution or liquidation process," he further added.

As of last December, non-performing loan rates stood at 99.99% for FAS Finance, 98.50% for Far East Finance, 93.93% for Aviva Finance, around 95% for Peoples Leasing, and 99.44% for International Leasing, according to a Bangladesh Bank report.

In May last year, Bangladesh Bank issued notices to 20 NBFIs asking why they should not be shut down due to high non-performing loans and failure to return deposits. Of these, nine institutions submitted recovery plans deemed unsatisfactory, prompting moves to close or wind them down. However, in January this year, three institutions were removed from the list, narrowing it to six. At that stage, GSP Finance, Prime Finance, and BIFC were excluded. More recently, the Bangladesh Bank board made a preliminary decision to close or wind up five institutions, dropping Premier Leasing from the list.

Sector insiders say the surge in non-performing loans at these institutions was largely driven by widespread irregularities and scandals during the tenure of the ousted Awami League government. As a case in point, PK Halder, former managing director of NRB Global Bank (later renamed Global Islami Bank), is accused of embezzling at least Tk3,500 crore from four NBFIs: Peoples Leasing, International Leasing, FAS Finance, and BIFC.

The broader NBFI sector has been grappling with severe liquidity shortages, high default loans, and weak governance for several years, prompting Bangladesh Bank to act under its resolution framework.